**REGISTERED CHARITY NUMBER: 217309**
## **Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 December 2023 for**
## **Elizabeth Dowell's Trust**
incorporating P & W Social Accountants Ltd
**Elizabeth Dowell's Trust**
## **Contents of the Financial Statements for the Year Ended 31 December 2023**
||**Page**|
|---|---|
|Report of the Trustees||
|including Statement of Trustees' Responsibilities|1|
|Independent Examiner's Report|6|
|Statement of Comprehensive Income 2023|7|
|Comparative Statement of Comprehensive Income 2022|8|
|Statement of Financial Position|9|
|Statement of Cash Flows|11|
|Statement of Changes in Funds|12|
|Notes to the Financial Statements|13|
|Detailed Statement of Comprehensive Income 2023|22|
|Comparative Detailed Statement of Comprehensive Income 2022|24|
**Elizabeth Dowell's Trust**
## **Report of the Trustees for the Year Ended 31st December 2023**
The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP (FRS102)) 'Accounting and Reporting by Charities'.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Registered charity Charity Number 217309 Registered with the Regulator of Social Housing Registered Number A2768 Member of The Almshouse Association Membership Number 1156
## **Principal address**
Dowell's Close 240 Alcester Road Moseley Birmingham, B13 8ES
## **Trustees**
The Trustees are responsible for determining the strategy and policies of the Trust. The following were Trustees for the year ended 31December 2023 and up to the date of approval of the financial statements:
Mr C. J. Wall Chair Mr S Gibbons Appointed 17th April 2023 Ms M. T. Girvan Treasurer Mr T. H. Glasspool Appointed 17th April 2023 Mrs I. S. Knowles Revd S. E. Moore Resigned 31st May 2023 Miss E. Norman Mr. R. I. Stanton Miss A. C. Warne Mr R. J Wishart Dr. J. A. Yates
## **Independent examiner**
R B Welch MA FCA P & W Social Accountants Ltd 10 Newent Road Birmingham, B31 2LX
## **Investment Advisers**
Brewin Dolphin 9 Colmore Row Birmingham, B3 2BJ
## **CONSTITUTION**
The Trust is a registered charity and a member of The Almshouses Association. It is also registered with the Regulator of Social Housing as a social landlord, and is associated with Homes England who manage our grant, both of whom replaced the Homes and Communities Agency (HCA) in 2018 with who we were previously registered.
## **PRINCIPAL ACTIVITES**
The Objects of the Trust are the relief of poverty, hardship or distress of elderly persons in Birmingham by the provision and maintenance of almshouse accommodation, comprising of thirty two flats, and such other charitable purposes as the Trustees in their absolute discretion decide for the benefit of the residents of the almshouses.
Page 1
**Elizabeth Dowell's Trust**
## **Report of the Trustees for the Year Ended 31st December 2023**
The trustees aim to:
Promote the wellbeing and independence of the residents.
Encourage communal activities. Provide a good quality housing. Provide good quality gardens. Manage the resources of the Trust effectively and efficiently.
## **Public benefit**
The Trustees have considered the Charity Commission's guidance on public benefit, in particular, the Trustees consider how future developments will contribute to the objectives and aims they have set.
## **GOVERNANCE**
The Trustees acknowledge and appreciate the spirit of the Code of Governance issued by the National Housing Federation and apply those elements of code which they consider appropriate to the size and scope of their operations.
During the year the Trustees reviewed all their policies, introducing new ones where it was considered appropriate
The Trustees replaced the Clerk during the year to help with the running of the Board , being aware of changes in social housing /government legislation and keeping policies up to date.
## **FINANCIAL REVIEW**
Income for the year including investment and donation income was £250,317 (2022: £222,841, 2021: £187,013). Donations during the year totalled £51 (2022: £6036, 2021: £873).
The net surplus before unrealised gains/losses on investments was £104,151 (surplus 2022: £54,739, surplus 2021: £2,233). The overall net movement in funds for the year was a surplus of £53,487 (2022: a deficit of £77,616, 2021: a surplus of £53,407). This includes a unrealised loss on investments of £50,665 (2022: loss £132,354, 2021: gain £51,174) .
Brewin Dolphin act on a discretionary basis on behalf of the Trustees in regard to the portfolio of the Trust's Investments. The movement in the investment portfolio is set out in the detail in note 6 to the financial statements. Regular meetings and update reports are received from our advisors to enable the Trustees to monitor the performance of the investment portfolio against the agreed risk profile which the Trustees consider to be compatible with the Trust's charitable status.
## **OPERATIONAL PERFORMANCE**
The project to convert an old office, storeroom and guest room into two new flats was completed in early 2023, and both have been occupied since the summer. A delay from the Valuation Office, and a subsequent difficulty in registering the new addresses, has meant the income from one flat has yet to start, as the resident is reliant on Housing Benefit. It is expected to resolve this during 2024. In addition, although the Trust was successful in its bid for a West Midlands Combined Authority grant to cover cavity wall insulation, trustees decided to pull out as the project costs outweighed the capital costs. Notwithstanding both of these items, the Trust was able to increase expenditure, including major roof repairs and self-funded cavity wall insulation in all flats. The latter being completed in January 2024.
## **INVESTMENT PERFORMANCE**
Despite a turbulent start, our long term investments improved during the year, with quarter four being stronger and surpassing benchmarks. Given our increased revenue, a review of our investment policy in July allowed us to reduce the required cash income from investments and invest the difference more profitably.
Page 2
**Elizabeth Dowell's Trust**
## **Report of the Trustees for the Year Ended 31st December 2023**
## **VALUE FOR MONEY**
The Regulator of Social Housing has introduced a new standard for the reporting of Value for Money (VfM), under which all Almshouse Charities which are Registered Providers of Social Housing must comply. This Accounting Direction applies to all accounting periods beginning on or after 1st January 2022.
The regulator has defined seven key VfM metrics that must be reported by every provider for the financial year that is being examined.
|||31.12.23|31.12.22|
|---|---|---|---|
|1.|Reinvestment %|4.65%|3.03%|
|2a.|New supplydelivered %(Social Housingunits)|6.25%|0.00%|
|2b.|New supplydelivered %(Non-Social Housingunits)|0.00%|0.00%|
|3.|Gearing%|-31.63%|-28.97%|
|4.|Earnings before Interest, Tax, Depreciation, Amortisation, Major Repairs
Included Interest Cover %|710.67%|728.99%|
|5.|Headline Social HousingCost Per Unit|£6,075.69|£5,502.47|
|6a.|OperatingMargin(social housinglettings)%|2.88%|5.53%|
|6b.|OperatingMargin(overall)%|2.88%|5.53%|
|7.|Return on Capital Employed(ROCE)%|0.37%|0.62%|
**Metric1 Reinvestment % -** This metric looks at the investment in properties (existing stock as well as new supply) as a percentage of the value of total properties held.
**Metric 2 New Supply Delivered % -** This metric sets out the number of new social housing and non social housing units that have been acquired or developed in the year as a proportion of the total housing units and non-social housing units owned at the period end.
**Metric 3 Gearing % -** This metric assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. It is often a key indicator of an organisation's appetite for growth. Elizabeth Dowell's cash balance exceeds the value of the borrowings and the new development was funded from reserves.
## **Metric 4 Earnings before Interest, Tax, Depreciation, Amortisation, Major Repairs Including Interest Cover % -**
This is a measure of the level of surplus that the charity generates compared to interest payable, whilst removing the distortion arising from depreciation of properties.
**Metric 5 Headline Social Housing Cost per Unit -** The unit cost metric assesses the headline housing cost per unit as defined by the regulator.
**Metric 6 Operating Margin % -** This demonstrates the profitability of operating assets before exceptional expenses are taken into account. Almshouses are requires to report on two Operating Margin ratios: a) Operating Margin (social housing lettings only) b) Operating Margin (overall). These figures are the same for Elizabeth Dowell Trust as all units are classed as social housing.
**Metric 7 Return on capital employed (ROCE)% -** This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources.
Page 3
**Elizabeth Dowell's Trust**
## **Report of the Trustees for the Year Ended 31st December 2023**
## **Elizabeth Dowell's Trust's Metrics**
The regulator asks providers to lay out a set of metrics of their own that they can measure themselves against. We have selected Metrics which best reflect the outcomes we are seeking to deliver in line with our business plan for our Almshouse Charity. The regulator has also suggested that almshouses that are social providers form benchmarking groups to enable them to measure their VfM against other comparable organisations. In future years Elizabeth Dowell's Trust is very willing to participate with any benchmarking group that comes to the Trust's attention within a similar area of operation.
|||2023|2022|Target 2023|
|---|---|---|---|---|
|1.|Occupancy|96.63%|97.98%|95.00%|
|2.|Contributions collected as a percentage of contributions
owed|101.18%|120.44%|100.00%|
|3.|Percentage of residents completingannualquestionnaire|39.20%|37.93%|50.00%|
|4.|% of items raised in annual questionnaire which have been
closed out duringtheyear.|83.33%|100.00%|100.00%|
## **FUNDS**
Investments representing the Extraordinary Repairs Fund (ERF), the Cyclical Maintenance Fund and General Fund have been shown at market value at 31 December 2023 within the unrestricted funds.
Investments representing the Permanent Endowment Fund, Recoupment Fund and the Mrs Allen bequest are shown at market value at 31 December 2023 within restricted funds with any income being transferred to General Fund.
In accordance with the Trust's reserves policy the Extraordinary Repairs Fund (ERF) is used for extraordinary repairs, improvement or rebuilding of the Trust buildings and is currently aimed at 50% of the book cost of the housing properties.
The Cyclical Maintenance Fund is to cover void repairs over an approximate 3 year period.
The General Reserve is to be maintained to cover around 3 years of operational costs including holding sufficient cash and liquid resources to cover six months of normal operational expenditure.
## **RISK MANAGMENT**
The Trustees have a duty to identify and review risks and to this end they have in place a risk management policy which identifies and ranks the major risks faced by the Trust. The current major ranking risk is the transfer to a CIO, which if not managed properly, could lead to loss of access to accounts and income. A sub-committee has been organised working with the legal team to ensure focus on this item. Staff sickness/ turnover / retention and trustee recruitment / skills are identified as moderate risks. The former is the subject of various actions and the latter has been mitigated by the recruitment of two new trustees.
Regular maintenance inspections and Health & Safety reviews are carried out and adequate insurance cover has been obtained in order to cover potential losses. In addition we do have a disaster recovery policy in place to follow if such events occur.
## **INTERNAL FINANCIAL CONTROL**
The key elements of internal control systems, which have been in place throughout the year and through to the date of approval of the financial statements are:
- Budgets are prepared by the Finance Committee and are formally checked and approved by all the Trustees.
- Quarterly reports are prepared and formally reviewed and approved by the Trustees.
- All major works are put out to competitive tender then formally checked and approved by the Trustees. - The Trustees regularly review the Trust's weekly maintenance contribution arrears and authorise appropriate courses of action.
Page 4
**Elizabeth Dowell's Trust**
## **Report of the Trustees for the Year Ended 31st December 2023**
## **FUTURE PLANS**
In the short to medium term the Trustees' aims are to continue to provide and maintain the Trust's properties to the highest standard that is achievable from the regular annual income received in order to provide a safe, pleasant, friendly and comfortable living environment for all residents. Various major projects are budgeted for 2024, including driveway re-surfacing, creation of extra parking spaces and the provision of a cycle shed, in addition to refurbished furniture for the communal lounge. The latter three items were raised by residents.
Work to transfer the activities and associated assets of the Charity from a Trust to a CIO continues. The new CIO was finally registered on 19th September 2023. It is hoped this will be completed in 2024.
In the longer term the Trustees remain conscious of the need to prepare, plan for and meet long term repairs and potential rebuilding costs as the fabric of the property continues to age and how these costs should be best funded either from internal or external resources. The Property sub-Committee continue to review the medium to long term requirements in order to make recommendations to the main Board of Trustees for consideration, including work required to meet the government carbon targets, such as heat pumps.
## **TRUSTEES' RESPONSIBLITES IN THE PREPARATION OF FINANCIAL STATEMENTS**
Law relating to registered providers of social housing requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust as at the end of the financial year and of the surplus or deficit of the Trust for that period. In preparing these financial statements, the Trustees are required to:
- select suitable policies and apply them consistently;
- make reasonable and prudent judgements and estimates;
-prepare the financial statements on a going concern basis unless in their view the Trust will be unable to continue in operation.
The Trustees are responsible for ensuring that arrangements are made for keeping proper books of accounts which will enable a true and fair view to be given of the state of affairs of the Trust in respect of its housing activities and to explain its transactions in the course of those activities. The Trustees should also ensure that the financial statements have been properly prepared in accordance with the Housing Act 1996 and the Accounting Direction for Private Registered Providers of Social Housing 2012.
The Trustees are also responsible for establishing and maintaining a satisfactory system of control over its books of account in respect of housing activities, cash holdings and all receipts and remittances and for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
.............................................
Mr C. J. Wall
Chair
Page 5
**Independent Examiner's Report to the Trustees of Elizabeth Dowell's Trust**
I report on the accounts for the year ended 31st December 2023 set out in the following pages.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.
## It is my responsibility to:
examine the accounts under Section 145 of the 2011 Act
to follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and
to state whether particular matters have come to my attention.
## **Basis of the independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view ' and the report is limited to those matters set out in the statements below.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in
connection with the examination giving me reasonable cause to believe that in any material respect:
(1) accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act ; or
(2) the accounts do not accord with those records; or
(3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
R B Welch MA FCA P & W Social Accountants Ltd 10 Newent Road Northfield Birmingham B31 2ED
Date ........................................
Page 6
**Elizabeth Dowell's Trust**
## **Statement of Comprehensive Income for the Year Ended 31 December 2023**
|**Unrestricted**
**General and**
**Designated**
**funds**
**Notes**
**£**
**TURNOVER**
15.
223,647
Operating Costs
15.
(217,206)
OPERATING SURPLUS
6,442
Donations
15.
51
Interest receivable and other income
2.
25,188
Interest payable and finance costs
15.
(15,224)
Realised gains/ (losses) on investments
15.
86,263
SURPLUS FOR THE YEAR
102,720
Unrealised (loss)/gains on investments
6.
(52,457)
**TOTAL COMPREHENSIVE INCOME**
**FOR THE YEAR BEFORE TRANSFE**
**OF FUNDS**
50,263
Transfer between funds
11.
2,410
**TOTAL COMPREHENSIVE INCOME**
**FOR THE YEAR**
52,673
Total funds brought forward
11.
1,257,593
**TOTAL FUNDS CARRIED FORWARD**
11.
1,310,266|**Restricted**
**and**
**Endowment**
**funds**
**£**
-
-
-
-
1,431
-
-
1,431
1,793
3,224
(2,410)
814
107,231
108,044|**31.12.23**
**Total funds**
**£**
223,647
(217,206)
6,442
51
26,619
(15,224)
86,263
104,151
(50,665)
53,487
-
53,487
1,364,824
1,418,310|**31.12.22**
**Total funds**
**£**
192,603
(181,956)|
|---|---|---|---|
||||10,647
6,036
24,202
(15,450)
29,304|
||||54,739
(132,354)|
||||(77,616)
-|
||||(77,616)
1,442,440|
||||1,364,824|
The notes form part of these financial statements Page 7
**Elizabeth Dowell's Trust**
## **Comparative Statement of Comprehensive Income for the Year Ended 31 December 2022**
|**Unrestricted**
**General and**
**Designated**
**funds**
**Notes**
**£**
**TURNOVER**
16.
192,603
Operating Costs
16.
(181,506)
OPERATING SURPLUS
11,097
Donations
16.
6036
Interest receivable and other income
16.
22,962
Interest payable and finance costs
16.
(15,450)
Realised gains/ (losses) on investments
16.
29,304
SURPLUS FOR THE YEAR
53,948
Unrealised (loss)/gains on investments
16.
(129,220)
**TOTAL COMPREHENSIVE INCOME**
**FOR THE YEAR BEFORE TRANSFE**
**OF FUNDS**
(75,272)
Transfer between funds
12.
574
**TOTAL COMPREHENSIVE INCOME**
**FOR THE YEAR**
(74,698)
Total funds brought forward
12.
1,332,291
**TOTAL FUNDS CARRIED FORWARD**
12.
1,257,593|**Restricted**
**and**
**Endowment**
**funds**
**£**
-
(450)
(450)
0
1,240
-
-
790
(3,134)
(2,344)
(574)
(2,918)
110,149
107,231|**31.12.22**
**Total funds**
**£**
192,603
(181,956)
10,647
6036
24,202
(15,450)
29,304
54,739
(132,354)
(77,616)
-
(77,616)
1,442,440
1,364,824|**31.12.21**
**Total funds**
**£**
165,580
(180,639)|
|---|---|---|---|
||||(15,058)
872.64
20,560
(16,353)
12,212|
||||2,233
51,174|
||||53,407
-|
||||53,407
1,389,033|
||||1,442,440|
The notes form part of these financial statements Page 8
**Elizabeth Dowell's Trust**
## **Statement of Financial Position At 31 December 2023**
|**Notes**
**FIXED ASSETS**
Tangible assets
5.
Investments
6.
**CURRENT ASSETS**
Debtors
7.
Cash at bank and in hand
13.
**CREDITORS**
Amounts falling due within one
year
8.
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
**CREDITORS**
Amounts falling due more than
one year
9.
**NET ASSETS**
**FUNDS**
11.
Unrestricted General and
Designated funds
Restricted funds
Endowment fund
**TOTAL FUNDS**|**Unrestricted**
**General and**
**Designated**
**funds**
**£**
665,426
727,669|**Restricted**
**Fund**
-
10,081|**Endowment**
**Funds**
**£**
77,434
20,337
97,771
-
192
192
-
192
97,963
-
97,963|**31.12.23**
**Total funds**
**£**
742,860
758,087|**31.12.22**
**Total funds**
**£**
742,072
736,558|
|---|---|---|---|---|---|
||1,393,095
6,493
306,576|10,081
-
-||1,500,947
6,493
306,768|1,478,630
5,960
288,055|
||313,069
(69,526)|-
-||313,261
(69,526)|294,015
(63,548)|
||243,543
1,636,637
(326,372)|-
10,081
-||243,735
1,744,681
(326,372)|230,467
1,709,097
(344,273)|
||1,310,266|10,081||1,418,310|1,364,824|
|||||1,310,266
10,081
97,963|1,257,593
10,155
97,076|
|||||1,418,310|1,364,824|
The notes form part of these financial statements Page 9
**Elizabeth Dowell's Trust**
## **Statement of Financial Position At 31 December 2023**
The financial statements were approved by the Board of Trustees on ............................................. and were signed on its behalf by
............................................. Mr C. J. Wall Chair ............................................. Ms M. T. Girvan Treasurer
The notes form part of these financial statements Page 10
**Elizabeth Dowell's Trust**
## **Statement of Cash Flows for the Year Ended 31st December 2023**
|Notes
**OPERATING ACTIIVITES**
Net cash generated from operations
13.
Interest paid
13.
**NET CASH GENERATED FROM OPERATING ACTIVITIES**
**CASH FLOW FROM INVESTING ACTIVITIES**
Improvements to housing properties and other fixed assets
5.
Interest and dividends received on investments
2.
Purchase of investments
6.
Sale proceeds of investments
**NET CASH FLOW FROM/(USED IN) INVESTING ACTIVITES**
**CASH FLOW FROM FINANCING ACTIVITIES**
Repayment of borrowings
**NET INCREASE IN CASH AND CASH EQUIVALENTS**
13.
**CASH AND CASH EQUIVALENTS AT THE**
**BEGINNINING OF THE YEAR**
**CASH AND CASH EQUIVALENTS AT THE END OF**
**THE YEAR**|**31.12.23**
**£**
23,532
(7,928)
15,604
(36,738)
26,619
(289,064)
303,133
3,951
(841)
18,713
288,055
306,768|**31.12.22**
**£**
34,451
(7,933)
26,518
(23,417)
24,202
(76,695)
86,979
11,069
(767)
36,820
251,235|
|---|---|---|
|||288,055|
The notes form part of these financial statements Page 11
**Elizabeth Dowell's Trust**
## **Statement of Changes in Funds for the Year Ended 31 December 2023**
|Balance at 1 January 2022
Surplus for the year
Balance at 31 December 2022
Surplus for the year
Balance as 31 December 2023
Balance at 1 January 2021
Deficit for the year
Balance at 31 December 2021
Surplus for the year
Balance as 31 December 2022
**Statement of Changes in Funds**
**for the Year Ended 31 December 2022**|Unrestricted
Funds
£
1,332,291
(74,698)
1,257,593
52,673
1,310,266
Unrestricted
Funds
£
1,278,027
54,264
1,332,291
(74,698)
1,257,593|Restricted
Funds
£
10,970
(815)
10,155
(74)
10,081
Restricted
Funds
£
12,475
(1,505)
10,970
(815)
10,155|Endowment
Funds
£
99,179
(2,103)
97,076
887
97,963
Endowment
Funds
£
98,531
648
99,179
(2,103)
97,076|Total
Funds
£
1,442,440
(77,616)|
|---|---|---|---|---|
|||||1,364,824|
|||||53,487|
|||||1,418,310|
|||||Total
Funds
£
1,389,033
53,407|
|||||1,442,440|
|||||(77,616)|
|||||1,364,824|
The notes form part of these financial statements Page 12
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 1. **ACCOUNTING POLICIES**
## **Accounting convention**
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets and in accordance with the Financial Reporting Standard 102, the Charities Act 2011 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities except where dictated by the Housing SORP 2018 for registered social housing providers. Elizabeth Dowell's Trust meets the definition of a public benefit entity under FRS102.
## **Incoming resources**
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy, except for Housing Grants which in accordance with the social housing SORP are taken to income over the intended life of the property.
## **Resources expended**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets - housing properties**
Housing properties are properties for the provision of social housing and are properties available for rent. Completed housing properties are stated at cost less accumulated depreciation and impairment losses.
Cost includes the cost of acquiring land and buildings, and expenditure incurred during the development period.
Works to existing properties which replaces a component that has been treated separately for depreciation purposes, along with those works that enhance the economic benefits of the assets, are capitalised as improvements. Such enhancements can occur if improvements result in either:
- An increase in rental income;
- A material reduction in future maintenance costs;
- A significant extension to the life of the property.
## **Depreciation of housing properties**
Freehold land or assets under construction are not depreciated.
The Trust separately identifies the major components of its housing properties and charges depreciation so as to write-down the cost of each component to it s estimated residue value, on a straight line basis over the following years:
||Years|
|---|---|
|Structure|40|
|Kitchen|25|
|Bathroom|30|
|Windows|40|
|Central Heating|40|
|Boilers|20|
|Doors|25|
The notes form part of these financial statements
Page 13
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **Impairment of fixed assets**
An assessment is made at each reporting date of whether there are indications that a fixed asset (including housing properties) may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Trust estimates the recoverable amount of the asset.
Shortfalls between the carrying value of fixed assets and their recoverable amount, being the higher of fair value less costs to sell and value-in-use of the asset based on its service potential, are recognised as impairment losses in the income and expenditure account.
Recognised impairment losses are reversed if, the reasons for the impairment loss have ceased to apply. Reversal of impairment losses are recognised in income and expenditure. On reversal of an impairment loss, the depreciation is adjusted to allocate the asset's revised carrying amount.
## **Other tangible fixed assets**
Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses. Depreciation is provided at rates calculated to write off the cost of each asset to its estimated residual value on a straight line basis over its expected useful life as follows:
Plant and machinery 4 years
Residual value is calculated on prices prevailing at the reporting date, after estimated cost of disposal for the asset as if it were at the age and in the condition expected at the end of its useful life.
## **Government Grants**
Government grants include grants receivable from the Homes and Communities Agency ("HCA"), local authorities and other government bodies. Government grants received for housing properties are recognised in income over the useful economic life of the structure of the asset under the accruals method.
## **Borrowing costs**
Borrowing costs are expensed as incurred, Costs directly connected with the raising of finance are deducted from loans and written off evenly over the life of the loan in the income and expenditure account.
## **Investments**
All investments are listed investments and are stated at market value at the balance sheet date.
Realised gains and losses on investments are computed by comparing net sales proceeds with cost of purchase. Movement in fair value of investments represents the differences between their market value at the balance sheet date and the market value at the previous balance sheet date or cost if acquired within the year.
## **Taxation**
Elizabeth Dowell's Trust has charitable status and is registered with the Charities Commission and is therefore exempt from paying Corporation Tax on charitable activities.
## **Financial Instruments**
The Trust has elected to apply the provisions of section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS 102, in full to all of its financial instruments.
The notes form part of these financial statements
Page 14
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **Debtors**
Weekly maintenance contribution debtors are initially measured at the transaction price and subsequently measured at transactions price less any amounts settled and any impairment losses.
A provision for impairment of debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the income and expenditure account.
## **Trade creditors**
Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at cost less any amounts settled.
## **Borrowings**
Borrowings are initially recognised at the transaction price, including costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is including interest payable and other similar charges.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Mrs Allen Bequest Fund was received on behalf of Mrs Allen and is for the benefit of residents. This fund has historically been used to support the residents' Christmas party.
The Endowment and Recoupment Funds are held in trust to be retained for the benefit of the charity as capital funds.
## **Estimates and assumption**
The trust makes estimates and assumptions concerning the future. the resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Any estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are separately disclosed.
## **Pension costs and other post-retirement benefits**
The Trust participates in a defined contribution pension scheme for qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund. The contributions payable by the Trust are included within expenditure in the Statement of Financial Activities in the period to which they relate.
## **Going Concern**
The trustee considers that there are no material uncertainties about the Trusts' ability to continue as a going concern. There are no material uncertainties affecting the current year's accounts.
## **Reporting Currency**
The reporting currency is £ Sterling.
The notes form part of these financial statements Page 15
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 2. **INVESTMENT INCOME**
|**INVESTMENT INCOME**|||
|---|---|---|
||**31.12.23**|**31.12.22**|
||**£**|**£**|
|Income from UK investments|26,619|24,202|
## 3. **TRUSTEES' REMUNERATION, BENEFITS AND DONATIONS**
## **Trustee’s remuneration**
There were no trustee’s remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
## **Trustee’s expenses**
There were no trustee’s expenses paid for the year ended 31 December 2023 or for the year ended 31 December 2022. Trustees were reimbursed for expenditure that they incurred on behalf of Elizabeth Dowell's Trust £2,085 (2022: £853).
## **Trustee’s donations**
There were no trustee’s donations for the year ended 31 December 2023 or for the year ended 31 December 2022.
## 4. **STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|**31.12.23**
**£**
30,689
-
2,156
32,844|**31.12.22**
**£**
26,317
-
2,061|
|---|---|---|
|||28,378|
The average monthly number of employees during the year was as follows:
|**31.12.23**|**31.12.22**|
|---|---|
|2|2|
No employees received emoluments in excess of £60,000.
The notes form part of these financial statements Page 16
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 5. **TANGIBLE FIXED ASSETS**
|At 1 January 2023
Additions
Disposals
At 31 December 2023
**DEPRECIATION**
At 1 January 2023
Charge for year
Disposals
At 31 December 2023
At 31 December 2023
At 31 December 2022
6.
**FIXED ASSET INVESTMENTS**
**MARKET VALUE**
At 1 January 2023
Additions
Equalisation
Disposals
Revaluations
Transfer
At 31 December 2023
**NET BOOK VALUE**
At 31 December 2023
At 31 December 2022
**Cost value**
**COST**
**NET BOOK VALUE**|**Housing**
**properties**
**£**
863,276
24,232
-
887,508
335,023
15,931
-
350,954
536,554
528,252
**General**
**£**
353,295
143,495
-
(133,463)
(3,118)
2,967
363,175
363,175
353,295
333,752|**Housing**
**components**
**£**
438,394
10,210
(4,963)
443,641
225,825
17,117
(3,042)
239,900
203,741
212,569
**ERF**
**£**
353,658
143,581
-
(83,407)
(49,339)
-
364,494
364,494
353,658
355,921|**Equipment ,**
**fixtures and**
**fittings**
**£**
41,320
2,295
-
43,615
40,069
981
-
41,050
2,565
1,251
**Restricted &**
**Permanent**
**Endowment**
**£**
29,604
1,988
-
-
1,793
(2,967)
30,418
30,418
29,604
30,287|**Total**
**£**
1,342,990
36,738
(4,963)|
|---|---|---|---|---|
|||||1,374,764|
|||||600,917
34,029
(3,042)|
|||||631,905|
|||||742,860|
|||||742,072|
|||||**Totals**
**£**
736,558
289,064
-
(216,870)
(50,665)
-|
|||||758,087|
|||||758,087|
|||||736,558|
|||||719,959|
Restricted investments consists of Permanent Endowment £20,337 (2022: £19,450), Recoupment £7,613 (2022: £7,686) and Bequest £2,468 (2022: 2,468).
13.64% (2022: 17.29%) of the investments are listed in the UK stock market and 70.10% (2022: 77.27%) of the funds are domiciled in the UK.
The notes form part of these financial statements Page 17
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 7. **DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Prepayment and accrued income
Weekly maintenance charges receivable
Less provision for doubtful debts|**31.12.23**
**£**
1,726
(1,321)
6,088
6,493|**31.12.22**
**£**
-
-
5,960|
|---|---|---|
|||5,960|
## 8. **CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
9.
|**31.12.23**
**£**
Trade creditors
16,541
17,532
15,632
923
1,919
Deferred Capital Grant
16,978
69,526
**CREDITORS: AMOUNTS FALLING DUE MORE THAN ONE YEAR**
**31.12.23**
**£**
71,697
Deferred Capital Grant
254,674
326,372
Maintenance charge received in advance
Taxation, social security and pensions
Accruals and deferred income
Housing loans
Housing loans|**31.12.22**
**£**
16,211
14,192
13,301
841
2,025
16,978|
|---|---|
||63,548|
||**31.12.22**
**£**
72,620
271,653|
||344,273|
Housing loans are secured on the Trust's housing properties and are repayable in instalments at 9.5% (2022: 9.5% ). The loan will be fully repaid by 2047.
## 10.
## **DEFERRED CAPITAL GRANT**
|**DEFERRED CAPITAL GRANT**|||
|---|---|---|
|As at 1st January
Capital grant released
As at 31st December|**31.12.23**
**£**
288,631
(16,978)
271,653|**31.12.22**
**£**
305,609
(16,978)|
|||288,631|
The grant from the Homes and Community Agency is recognised as income over the following 16 years until 2039.
The notes form part of these financial statements
Page 18
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 11. **MOVEMENT IN FUNDS**
|**At 1.01.23**
**£**
**Unrestricted funds**
General fund
543,716
Extraordinary repair fund
611,861
Cyclical repair fund
102,016
1,257,593
**Restricted and Endowment funds**
Mrs Allen's Bequest fund
2,468
Permanent Endowment fund
97,076
Recoupment fund
7,687
107,231
**TOTAL FUNDS**
1,364,824
**Incoming**
**resources**
**£**
**Unrestricted funds**
General fund
248,886
Extraordinary repair fund
-
Cyclical repair fund
-
248,886
**Restricted and Endowment funds**
Mrs Allen's Bequest fund
101
Permanent Endowment fund
881
Recoupment fund
448
1,431
**TOTAL FUNDS**
250,317
**Net movement in funds, included in the above are a**|**Net**
**movement in**
**funds**
**£**
36,732
13,530
-
50,263
1,080
1,769
375
3,224
53,487
**Resources**
**expended**
**£**
(232,429)
-
-
(232,429)
-
-
-
-
(232,429)
**s follows:**|**Transfer**
**between**
**funds**
**£**
2,410
-
-
2,410
(1,080)
(881)
(448)
(2,410)
-
**Gains and**
**losses on**
**investments**
**£**
20,275
13,530
-
33,806
979
887
(74)
1,793
35,598|**At 31.12.23**
**£**
582,859
625,392
102,016|
|---|---|---|---|
||||1,310,266
2,468
97,963
7,613|
||||108,044|
||||1,418,310|
||||**Movement in**
**funds**
**£**
36,732
13,530
-|
||||50,263
1,080
1,769
375|
||||3,224|
||||53,487|
The notes form part of these financial statements Page 19
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 12. **2022 COMPARATIVE MOVEMENT IN FUNDS**
|**At 1.01.22**
**£**
**Unrestricted funds**
General fund
571,570
Extraordinary repair fund
658,705
Cyclical repair fund
102,016
1,332,291
**Restricted and Endowment funds**
Mrs Allen's Bequest fund
2,918
Permanent Endowment fund
99,179
Recoupment fund
8,052
110,149
**TOTAL FUNDS**
1,442,440
**Incoming**
**resources**
**£**
**Unrestricted funds**
General fund
221,600
Extraordinary repair fund
-
Cyclical repair fund
-
221,600
**Restricted and Endowment funds**
Mrs Allen's Bequest fund
57
Permanent Endowment fund
798
Recoupment fund
386
1,240
**TOTAL FUNDS**
222,841
**Net movement in funds, included in the above are a**|**Net**
**movement in**
**funds**
**£**
(28,428)
(46,844)
-
(75,272)
(1,059)
(1,305)
20
(2,344)
(77,616)
**Resources**
**expended**
**£**
(196,956)
-
-
(196,956)
(450)
-
-
(450)
(197,406)
**s follows:**|**Transfer**
**between**
**funds**
**£**
574
-
-
574
609
(798)
(386)
(574)
-
**Gains and**
**losses on**
**investments**
**£**
(53,072)
(46,844)
-
(99,916)
(666)
(2,103)
(365)
(3,134)
(103,050)|**At 31.12.22**
**£**
543,716
611,861
102,016|
|---|---|---|---|
||||1,257,594
2,468
97,076
7,687|
||||107,231|
||||1,364,824|
||||**Movement in**
**funds**
**£**
(28,428)
(46,844)
-|
||||(75,272)
(1,059)
(1,305)
20|
||||(2,344)|
||||(77,616)|
The notes form part of these financial statements Page 20
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 13. **RECONCILIATION OF SURPLUS AFTER TAX TO NET CASH GENERATED FROM/(USED IN) OPERATIONS**
|Surplus for the year
Adjustments for:
Depreciation and loss on disposal of tangible fixed assets
Grant amortisation
Movement in fair value of investments
(Gain) on disposal of investments
Interest and investment income receivable
Interest payable
(Increase)/Decrease in trade and other debtors
(Decrease)/Increase in trade and other creditors
Cash generated from operations
CASH AND CASH EQUIVALENTS
Cash and cash equivalents represented by
Cash at bank and in hand
Cash with Brewin Dolphin
Cash at bank and in hand
Operating cash flows before movement in working capital|**31.12.23**
**£**
53,487
35,950
(16,978)
50,665
(86,263)
(26,619)
7,928
18,169
(533)
5,897
23,532
**31.12.23**
**£**
278,145
28,623
306,768|**31.12.22**
**£**
(77,616)
33,385
(16,978)
132,354
(29,304)
(24,202)
7,933
25,573
(1,612)
10,490
34,451
**31.12.22**
**£**
266,591
21,464|
|---|---|---|
|||288,055|
## 14. **RELATED PARTY TRANSACTIONS**
During the year Mr R. J. Wishart, a Trustee, purchased building materials totalling £1693 (2022:£853) for the new flats' development project and was reimbursed these expenses. Mrs M Girvan, a Trustee, was reimbursed for purchases made totalling £392 (2022: £0).
The notes form part of these financial statements Page 21
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 15. **DETAILED STATEMENT OF COMPREHENSIVE INCOME**
|**TURNOVER**
Residents' Maintenance Contributions
Service Charges
Less voids
Guest room
Laundry
Social housing amortisation
**OPERATING COSTS**
**Management and administration**
Management Agency fees
Bookkeeping and accounting services
Admin and Clerking services
**Service costs**
Salaries
Employer NI
Pensions
Rates and water
Insurance
Light and heat
Care Call Alarm
Gardening
Cleaning
Home Energy Certificates
Subscriptions, stationery and advertising
Sundries
Telephone and computer
Staff travel, training and welfare
Legal and professional
Independent Examiners' Fees
Bad debts
**Maintenance**
Day to day repairs
Electrical repairs
Void and major repairs
Central heating servicing and gas repairs
Cyclical Maintenance|**Unrestricted**
**funds**
**£**
171,150
40,111
(6,737)
725
1,421
16,978
223,647
-
13,674
13,674
30,689
-
2,156
5,776
3,392
8,887
3,929
8,852
2,154
1,150
507
1,236
285
9,626
2,607
1,321
82,568
19,229
6,419
52,535
2,659
4,172
85,014|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**31.12.23**
**£**
171,150
40,111
(6,737)
725
1,421
16,978
223,647
-
13,674
-
13,674
30,689
-
2,156
5,776
3,392
8,887
3,929
8,852
2,154
-
1,150
507
1,236
285
9,626
2,607
1,321
82,568
19,229
6,419
52,535
2,659
4,172
85,014|**31.12.22**
**£**
156,593
20,293
(3,451)
530
1,660
16,978|
|---|---|---|---|---|
|||||192,603
-
12,790
266|
|||||13,056
26,317
-
2,061
1,973
3,114
4,509
3,360
7,128
2,019
993
1,211
1,967
-
2,154
2,620
-|
|||||59,426
21,720
11,604
32,761
5,681
4,642|
|||||76,409|
The notes form part of these financial statements Page 22
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 15. **DETAILED STATEMENT OF COMPREHENSIVE INCOME CONTINUED**
|**Depreciation Charged**
Depreciation -fixtures & fitting
Depreciation -properties
Property component disposal
**TOTAL OPERATING COSTS**
**OPERATING SURPLUS**
Donations
**Interest receivable and other income**
Interest receivable
Investment income
**Interest and financing costs**
Interest payable
Bank charges
Costs associated with investments
SURPLUS FOR THE YEAR
Unrealised (loss)/gains on investments
Realised gains/(losses) on fixed asset
investments
**TOTAL COMPREHENSIVE**
**INCOME FOR THE YEAR BEFORE**
**TRANSFE OF FUNDS**|**Unrestricted**
**funds**
**£**
981
33,048
1,921
35,950
217,206
6,442
51
125
25,063
25,188
(6,974)
(955)
(7,295)
(15,224)
86,263
102720
(52,457)
50,263|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
1,431
1,431
-
-
-
-
-
1431.09
1,793
3,224|**31.12.23**
**£**
981
33,048
1,921
35,950
217,206
6,442
51
125
26,494
26,619
(6,974)
(955)
(7,295)
(15,224)
86,263
104151.11
(50,665)
53,487|**31.12.22**
**£**
426
31,805
834|
|---|---|---|---|---|
|||||33,065
181,956
10,647
6,036
-
24,202|
|||||24,202
(6,996)
(938)
(7,517)|
|||||(15,450)
29,304|
|||||54738.63
(132,354)|
|||||(77,616)|
The notes form part of these financial statements Page 23
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 16. **COMPARATIVE DETAILED STATEMENT OF COMPREHENSIVE INCOME**
|**TURNOVER**
Residents' Maintenance Contributions
Service Charges
Less voids
Guest room
Laundry
Social housing amortisation
**OPERATING COSTS**
**Management and administration**
Management Agency fees
Bookkeeping and accounting services
Admin and Clerking services
**Service costs**
Salaries
Employer NI
Pensions
Rates and water
Insurance
Light and heat
Care Call Alarm
Gardening
Cleaning
Home Energy Certificates
Subscriptions, stationery and advertising
Sundries
Telephone and computer
Legal and professional
Independent Examiners' Fees
Bad debts
**Maintenance**
Day to day repairs
Electrical repairs
Void and major repairs
Central heating servicing and gas repairs
Cyclical Maintenance|**Unrestricted**
**funds**
**£**
156,593
20,293
(3,451)
530
1,660
16,978
192,603
-
12,790
266
13,056
26,317
-
2,061
1,973
3,114
4,509
3,360
7,128
2,019
993
761
1,967
2,154
2,620
-
58,976
21,720
11,604
32,761
5,681
4,642
76,409|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
450
-
-
-
-
450
-
-
-
-
-
-|**31.12.22**
**£**
156,593
20,293
(3,451)
530
1,660
16,978
192,603
-
12,790
266
13,056
26,317
-
2,061
1,973
3,114
4,509
3,360
7,128
2,019
-
993
1,211
1,967
2,154
2,620
-
59,426
21,720
11,604
32,761
5,681
4,642
76,409|**31.12.21**
**£**
149,842
-
(2,670)
110
1,320
16,978|
|---|---|---|---|---|
|||||165,580
-
12,200
248|
|||||12,448
24,980
1,940
4,495
3,103
2,111
3,094
11,250
1,903
1,216
2,023
1,920
11,168
2,000
446|
|||||71,649
13,340
3,991
37,806
4,865
4,473|
|||||64,475|
The notes form part of these financial statements Page 24
**Elizabeth Dowell's Trust**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## 16. **COMPARATIVE DETAILED STATEMENT OF COMPREHENSIVE INCOME CONTINUED**
|**Depreciation Charged**
Depreciation -fixtures & fitting
Depreciation -properties
Property component disposal
**TOTAL OPERATING COSTS**
**OPERATING SURPLUS**
Donations
**Interest receivable and other income**
Interest receivable
Investment income
**Interest and financing costs**
Interest payable
Bank charges
Costs associated with investments
**SURPLUS FOR THE YEAR**
Unrealised (loss)/gains on investments
Realised gains/(losses) on fixed asset
**TOTAL COMPREHENSIVE**|**Unrestricted**
**funds**
**£**
426
31,805
834
33,065
181,506
11,097
6,036
-
22,962
22,962
(6,996)
(938)
(7,517)
(15,450)
29,304
53,948
(129,220)
(75,272)|**Restricted**
**funds**
**£**
-
-
-
-
450
(450)
-
-
1,240
1,240
-
-
-
0
-
790
(3,134)
(2,344)|**31.12.22**
**£**
426
31,805
834
33,065
181,956
10,647
6,036
-
24,202
24,202
(6,996)
(938)
(7,517)
(15,450)
29,304
54,739
(132,354)
(77,616)|**31.12.21**
**£**
122
31,559
387|
|---|---|---|---|---|
|||||32,068
180,639
(15,058)
873
-
20,560|
|||||20,560
(7,085)
(916)
(8,352)|
|||||(16,353)
12,212|
|||||2,233
51,174|
|||||53,407|
The notes form part of these financial statements Page 25