# **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.
- 1 -
**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:
- 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.
- 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
- 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.
- 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
- 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.
- 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.
- 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.
- Health and safety and fire risk assessments were completed at all of the properties. The Residents’ Handbook required no updates in 2020.
- 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.
- 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
-2 -
## **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
-3-
**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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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.
- 4 –
**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:
- 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;
- having regard only to, and on the basis of the information contained in the accounting records:
- the statement of financial activities and balance sheet comply with the requirements of the Charities Act 2011;
- - 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
- 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
- 5 -
**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.
- 6 -
## **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.
- 7 -
**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:
- land is not depreciated
- **h** ousing properties – 2% per annum straight line
- 8 -
**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|
- 9 -
**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
- 10 -
**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|
- 11 -
**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|
- 12 -
**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|
**-** 13 **-**