Powell and Welch Almshouse Charity
Charity registration number: 218268
Financial Statements
Year Ended 31 December 2020
Powell and Welch Almshouse Charity
Financial Statements
Year Ended 31 December 2020
| Contents | Page |
|---|---|
| Trustees’ Annual Report | 1-4 |
| Accountants Report | 5 |
| Statement of Financial Activities (incorporating a Revenue Account) | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8-13 |
Accountants Report to the Trustees on the Unaudited Financial Statements of the Powell and Welch Almshouse Charity
Administrative Information
The Charity is regulated by the Charity Commission and its registration number is 218268. The full name of the Charity is The Powell and Welch Almshouse Charity and its contact address is Newstead House, The Green, Bitteswell, Lutterworth LE17 4SG.
The Clerk to the Charity is Mrs M M Reid.
Trustees of the charity
The trustees who have served during the year and since the year end were as follows:
Mr P Hurst (Chair) Mrs M M Reid Rev C A M Styles Mr K Patton (Treasurer) Mrs J Pinnick Ms P Beason
The Charity is affiliated with the National Association of Almshouses.
The Charity had the following professional advisers:
Reporting Accountants PWH Accountancy Limited The Counting House High Street Lutterworth Leicestershire LE17 4AY Bankers Barclays Bank Plc Leicester Haymarket Towers Branch Leicester LE19 1RJ
Objectives and activities
As a modern almshouse charity, we provide affordable housing in a rural area for local people who are in need. Our residents are elderly people of limited means who are accepted as almshouse residents due to their circumstances and their inability to fund a home from their own resources.
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Accountants Report to the Trustees on the Unaudited Financial Statements of the Powell and Welch Almshouse Charity
Achievements and Performance
The charity has had a quiet year, both due to the extensive works undertaken in earlier years to fully address the backlog of renovation and renewal, and the impact of the Coronavirus pandemic.
The charity’s main achievements in 2020 are as follows:
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Following the death of the Resident at No.6 Powell Row in November 2019, the trustees arranged for the bath to be replaced with a shower and for the house to be re-decorated. Following a local advertisement and a selection process, a new Resident was appointed by the trustees. She was unable to move in until the end of May due to the pandemic lockdown.
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The trustees decided not to raise the Weekly Maintenance Contributions (WMCs) in line with the Homes England inflation formula in 2020. WMCs were maintained at their 2019 level to help with the additional costs that Residents faced due to the pandemic
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In April 2019 the trustees decided to de-register as a Registered Social Housing Provider with the Housing Regulator. This was to avoid the Regulator’s annual fee of £300 which had risen from £180 and the burden of the administrative and statistical returns required by them. The trustees submitted their application in August 2019. It was finally approved and implemented in August 2020. A complaint about the long delay was upheld by the Social Housing Regulator. The trustees also decided not to renew their membership of DASH, which had been required to obtain grants from Harborough District Council towards capital works.
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A Quinquennial Inspection Report on the fabric of the buildings was commissioned from Andrew Granger in 2016.The next review is due in a year’s time in 2021. The trustees invited a number of organisations to tender for the work and have appointed Quinquennial Inspections Limited to carry out the review in April 2021
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The trustees agreed to establish a rolling programme of internal re-decoration of the charity’s properties at intervals of between 8 and 10 years. Work is under way to establish a similar rolling programme of renovation and property updating for the future, focusing on kitchens and bathrooms.
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The trustees agreed to sell the commercial heavy duty power washer used by the Residents to clean paving, as the Residents had reported finding it too heavy and difficult to use. A smaller power washer was purchased that is more suitable for use by older people.
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In 2020 the charity received its first donations from the Amazon Smile charitable donations scheme, that had been publicised in the Bitteswell Village Newsletter. The charity also received its first Gift Aid payment from HMRC, via its not-for-profit donations provider, Virgin Money Giving.
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Health and safety and fire risk assessments were completed at all of the properties. The Residents’ Handbook required no updates in 2020.
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The Charity has a number of interest-free loans relating to the construction of the Pump Houses. The Charity remains on track to repay all of its outstanding loans by September 2023. Once these are repaid, the charity expects to be self-financing with a very limited need for grant aid.
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Throughout the year, the charity continued to maintain all of the properties, using appropriate tradesmen for a wide variety of tasks, to ensure that the properties remain in good order and continue to offer a high standard of accommodation for the Residents. A great deal of work goes into this. In particular, Marion Reid is due thanks for undertaking the time-consuming activity
Christmas Lights
The trustees were pleased that the task of organising and funding the Christmas lights to decorate the hedges on both sides of the Queen’s Gateway has been taken on by others within the village. The Charity is using the money donated by the village in 2019 to fund the electricity to operate the lights but has been relieved of the cost of providing the lights, as well as the cost of putting them up and taking them down.
Mr P Hurst (Chairman)
Date: 16/03/2021
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Accountants Report to the Trustees on the Unaudited Financial Statements of the Powell and Welch Almshouse Charity
Financial review
Despite the impact of the Coronavirus pandemic, 2020 was another year of solid improvement in the Charity’s finances.
Total net funds available at 31 December 2020 increased to £361,084, from last year’s figure of £338,099.
Investments in M&G’s Multi-Charity Investment Funds stood at £77,418 at the year end, just 3.9% below last year’s £80,558, despite the negative economic trading environment. Cash at bank ended the year at £58,478 (£36,667 last year).
Interest-free loans outstanding amounted to £24.156 (£34,706 last year), and these will be cleared by 2023.
Plans for future periods
There are no current plans for major investments in 2021 and we anticipate further consolidation of our financial base over the year.
Mr K Patton (Treasurer)
Date: 16/03/2021
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Trustees’ responsibilities
Accountants Report to the Trustees on the Unaudited Financial Statements of the Powell and Welch Almshouse Charity
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales/Northern Ireland 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2015 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We report on the financial statements for the year ended 31 December 2020 set out on the pages below.
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Respective responsibilities of the Trustees and Reporting Accountant
Accountants Report to the Trustees on the Unaudited Financial Statements of the Powell and Welch Almshouse Charity
The Trustees are responsible for the preparation of the financial statements, and they consider that The Powell and Welch Almshouse Charity is exempt from an audit. It is our responsibility to carry pit procedures designed to enable us to report our opinion.
Basis of opinion
Our procedures consisted of comparing the financial statements with the accounting records kept The Powell and Welch Almshouse Charity and making such enquiries of the officers of The Powell and Welch Almshouse Charity as we considered necessary for the purposes of this report. These procedures provide only the assurance expressed in our opinion.
Opinion
In our opinion:
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the financial statements for the year ended 31 December 2020 are in accordance with the accounting records kept by The Powell and Welch Almshouse Charity under paragraph 135(2) of the Housing and Regeneration Act 2008;
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having regard only to, and on the basis of the information contained in the accounting records:
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the statement of financial activities and balance sheet comply with the requirements of the Charities Act 2011;
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- the Powell and Welch Almshouse Charity has satisfied the conditions for exemption from an audit of the financial statements for the year ended 31 December 2020 specified in section 163(3) of the Housing and Regeneration Act 2008; and
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the financial statements comply with the requirements of the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers for Social Housing 2012.
PWH Accountancy Limited Reporting Accountants The Counting House High Street Lutterworth Leicestershire LE17 4AY
Date: 16/03/2021
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Powell and Welch Almshouse Charity
Statement of Financial Activities for the Year Ended 31 December 2020
(incorporating a Revenue Account)
| Note Incoming resources Incoming resources from charitable activities Maintenance contributions Grant funding Incoming resources form generated funds Investment income 2 Miscellaneous income Total incoming resources Resources expended Charitable activities: Supported housing and housing for almhouse residents Governance costs Total resources expended 3 Net income/(expenditure) Transfers between funds Other recognised gains: Gains/(losses) on investments Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
2020 Unrestricted funds General Unrestricted funds Designated Restricted funds Fixed assets Total £ £ £ £ 42,702 - - 42,702 - - - - 522 3,132 - 3,654 118 - - 118 43,342 3,132 - 46,474 10,067 - 6,240 17,215 908 - - 908 10,975 - 6,240 17,215 32,367 3,132 (6,240) 29,259 - - - - - (6,274) - (6,274) 32,367 (3,142) (6,240) 22,985 123,076 18,757 196.266 338,099 155,443 15,615 190,026 361,084 |
2019 Total £ 44,211 2,300 2,037 575 |
|---|---|---|
| 49,123 21,618 1,007 |
||
| 22,625 | ||
| 26,498 - 7,978 |
||
| 34,476 303,623 |
||
| 338,099 |
All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the year.
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The Powell and Welch Almshouse Charity
Balance Sheet
Year Ended 31 December 2020
| Note Fixed assets Housing properties 4 Investments 5 Current assets Debtors 6 Cash at bank and in hand Creditors: amounts falling due within one year 7 Net current assets (liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year Almshouse Association loan Quaker Housing loan Net assets Charity Funds General Fund Designated Fund 8 Restricted fixed asset fund 8 8 Total charity funds |
2020 £ 249,646 77,418 327,064 296 58,478 58,774 (11,152) 47,622 374,686 (7,352) (6,250) 361,084 155,443 15,615 190,026 361,084 |
2019 £ 255,886 80,558 |
|---|---|---|
| 336,444 294 36,667 |
||
| 36,961 (11,152) |
||
| 25,807 | ||
| 362,253 (15,404) (8,750) |
||
| 338,099 | ||
| 123,076 18,757 196,266 |
||
| 338,099 |
Approved on behalf of the board of trustees
Mr P Hurst, Chairman
Date: 16/03/2021
Mr K Patton (Treasurer)
Date: 16/03/2021
The notes on pages 8 to 13 form part of these financial statements.
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
1 Accounting Policies
Introduction and Accounting Basis
The financial statements have been prepared in accordance with applicable financial reporting standards, the Statement of Recommended Practice, ‘Accounting By Registered Landlords’ issued in May 2005, and General Determination 2006.
Fixed Assets
Major expenditure on tangible fixed assets is capitalised. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset evenly over tits expected useful life on the following bases:
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land is not depreciated
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h ousing properties – 2% per annum straight line
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
2 Investment income
| Dividend income | 2020 £ 3,131 3,131 |
2019 £ 2,031 |
|---|---|---|
| 2,031 |
3 Resources expended
| Charitable activities Services Water rates Repairs and maintenance Insurance Add: Other expenditure Miscellaneous Professional fees Depreciation Total Governance Accountancy fees Trustee expenses Ombudsman’s fees |
Unrestricted General Unrestricted Designated Restricted Fixed assets Total Funds 2020 Total Funds 2019 £ £ £ £ £ 1,186 - - 1,186 1,144 7,475 - - 7,475 12,873 1,406 - - 1,406 1,360 10,067 - - 10,067 15,377 112 - - 112 96 796 - - 796 912 - - 6,240 6,240 6,240 |
|---|---|
| 10,975 - 6,240 17,215 22,625 |
|
| 600 - - 600 600 179 - - 179 96 17 - - 17 10 796 - - 796 706 |
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
4 Housing properties
| Cost or valuation: At 1 January 2020 Additions At 31 December 2020 Depreciation: At 1 January 2020 Charge for the year At 31 December 2020 Net book value: At 31 December 2020 At 31 December 2019 |
2020 2019 £ £ 311,978 311,978 - - |
|---|---|
| 311,978 311,978 |
|
| 56,092 49,852 6,240 6,240 |
|
| 62,332 56,092 |
|
| 249,646 255,886 |
|
| 255,886 262,126 |
The charitable trust was established in 1847 and the original costs for the freehold land and buildings owned by the Charity are not known.
The value of land included above is £63,000
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
5 Fixed asset investments
| Cost or valuation At 1 January 2020 Additions Transfer Unrealised gains/(losses) At 31 December 2020 |
NAACIF Accumul’n Shares NAACIF Income Shares Total £ £ £ 67,068 13,490 80,558 2,609 522 3,131 - - - (4,742) (1,529) (6,271) |
|---|---|
| 64,935 12,483 77.418 |
6 Debtors
| Prepayments | 2020 £ 296 296 |
2019 £ 294 |
|---|---|---|
| 294 |
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
7 Creditors: amounts falling due within one year
| Almshouse Association loan Quaker Housing loan Accruals |
2020 £ 8,052 2,500 600 11,152 |
2019 £ 8,052 2,500 600 |
|---|---|---|
| 11,152 |
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The Powell and Welch Almshouse Charity
Notes to the Financial Statements
Year Ended 31 December 2020
8 Fund reconciliations
Unrestricted funds
| General Designated Restricted |
Balance at 1stJanuary 2020 Income Expenditure Transfers Gains / (losses) Balance at 31st December 2020 £ £ £ £ £ £ 123,076 47,608 (16,385) - - 123,076 18,757 1,515 - - 7,978 18,757 196,266 - (6,240) - - 196,266 |
|---|---|
| 338.099 49,123 (22,625) - 7,978 338,099 |
9 Analysis of net assets between funds
| Fixed assets Investments Current assets Current liabilities Long term liabilities Total |
General funds Designated funds Restricted funds Fixed assets Total £ £ £ £ - - 249,646 249,646 64,935 12,483 - 77,418 58,774 - - 58,774 (600) - (10,552) (11,152) - - (13,002) (13,002) |
|---|---|
| 123,109 12,483 226,092 361,684 |
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