AEGISTERED CHARITY NUMBER: 218738 rt of the Trustee5 and Financial Statement5 for Hereford ￿Jnic7 al Charitie5 Thorne Widgery Accountancy Ltd Chartered Accounlanls Statutory Auditors 2 Wyevale 8usltie55 Park Kings Acre Hereford Herefordshire HR4 7BS Hereford Munici al Chariti Contents of the Financial 5tatÈments for the Year Ended 31 December 2023 Page Rery>rt of the Tru5tee5 RerK>rt of the Inde￿ndent Auditor5 Statement of Financial Aciivities 10 Balance Sheet Nore5 to the Financial Statements 12 to 20 Detailed Statement of Financlal Act1Vities 21 to 22 Hereford Munici al Chariiies Re ort of the Trustees for the Year Ended 31 December 2023 The trustees present their report with the financial 5taternents of the charity for the year ended 31 December 2023. The Irusiees have adopied Ihe Pro￿$10n$ of Accouniing and Reporting by Chanries.. srarement of Recotnrnended Practice applicable lo charitie5 preparing their account5 in accordance with the Financial Reporiing Siandard applicable In Ihe UK and Rewbltc of IrÈland (FR5 1021 leffÈctive 1 January 20191. REFERENCE AND ADMINi¥fRATIVE DETAILS Charity No.= 218738 Offlee: 147, St. Owen Street. ptereford. HR12JR. Names of Trustees: Mrs Polly Andrews Ichairmanl Cllr Susan B￿lLer Mr David Fleet Iresigned 1 November 20231 Cllr Elizabeth Foxton Mrs Marian Hawkes Cllr Catherine Hornsey (resigned 1 November 20231 Mr David Howerski Mr Paul th>rri5 Mr Brian Wilcox Chief Executive Offlcer and Clerk.. Dr Thomas Roderick, BA, PhD, PGCE, MIL Atcounts Adminislrator and General A55i5tant hls Ed￿na Haffenden Bankers: National Westminster Bank plt, Broad Street, HÈreford, HR4 9AH Solicitors: Gabbs Isolicitorsl, 14 Broad St, Hereford, HR4 9AP Auditors: Thorne Widgery, 2 Wyevale Busine55 Park, King5 Acre, Hereford, HR4 7BS Investrnenl Ad￿Ser$. CCLA Investment Managemeni Ltd, Cheapside, London La￿d Agent5- Sunderland5, St. Peters Square. Hereford, HR12PQ STRUCTURE, GOVERNANCE AND MANAGEMENT verning document Charity Commission Scheme sealed on 24th April 1972. Recrultment and appolntment of new trustees The Board of Trustees consists of up to 10 competent persons, namely. two Nominative Trustees and Èight Co-optative Trustees. Nominative Trustees are aptx>inted by the Parish Council of the City of HÈreford lor its ap￿opriate successorl. Each apwintment 15 fflode for a terrn of four year5. Co-optative Trustees ale apFK)inted for a term of five years Irenewable for not rnore than two tertnsl by a re501ution of the Co-optative Trusrees, passed at a Spetial Meeiin4- Truslee5 whose terffl5 are expiring may not vote on the mailer. (kganisational structure Page 1 Hereford ￿￿7(1 rt of the Tru5tee5 for the Year Ended 31 December 2023 The Truste￿, at their first meeting in each year (Annual General Meetln81, eLecl one of their number to te Chairman until the cotnmencement ol the following year, and similarly with regard to a Deputy Chaimian. There is a tirne lTrTllit of three year5 for Ihe p051tions of Chairman and Deputy Cha1rman. At the AGM in January 2023, Mrs Polly Andre￿￿ wa5 re-elected Chairman and Mr Paul Morris was re-elected as Deputy ChaTrman. A SFecial Meeting may be summoned by the Chaiman or by two Tru5tee5, upon four days, notice being given to the other Trustee5 of the matter to be di5CUssed, but, if the matters include an apwintment of a Co.optative Trustee, then upon not less Ihan 21 days notice being so given. There is a quorum when five Trustee5 are presenl at a tneeting. Every rneetitY4 15 deterrnined by the majority of vote5 of the Tw5tees present. In the case of an equality ol votes, the Chairtnan ha5 a casting vote. Committees The Tru5tee5 apwint as many commitiees as they think fit for the adrninistration of the Charities. All acts and proceedingg of the committees are reported to a General Meeting of the Board of Trustees for confirrnalion. At present. there are the followinp Comtnittees.. Alrnshou5e5 Branch.. Pastoral Cornrpittee-. this cotnprise5 four Trustees and deals with the Selection and apwiniment of resitjents and thÈir 5ubsequÈnt wolfare. It meets as necessary. Working Group on Almshouses Maintena￿e. this cornprise5 two Trustees and the Clerk, and keep5 under rewew the cond1tion of the Al￿shOu5eS, reporting on necessary rernedial and iwprovetnent wurk to thp Board of Trustees. It meets as necessary. EleenKJsyn3ry and Educatlonal Branch: Grants Committee.. this comprises two Trustees and dea15 Wlth the applications subrnitted for grants under the above Fund5, nortnally Inter￿eWing app11cant$ 11f possiblel. Ir meet5 four times a year, alrhough the Chairman ol the Board of Trustees has executive authority to deal a5 necessary with urgent applications between Meetings. Mana ement Chief Executive Officer and Clerk.. the Trustees aprK)int a fit person for the day-to-day running of the Trustees, busine55 a5 well a5 prowding suitable office accommodation and ancillary support. The current apkx)iniee 15 Dr Thomas RoderTrck. Chalain.. the Trustees aproint a Minister of Religion or a licensed Reader as Chaplain of Sr. Giles. and Williams. Hospita15 lat present, Diane Bate51 and another Minister of Religion or Licensed Reder a5 Chaplain of Prices Chapel lat present, steve Vincel. Good Neighbours: the Trustees have de5Tgnated the following residents to be the Good Neighbours at the two site5, in order lo provide SUPFK)rt and assistar￿e to the resident5-. - St Owen StILedbury Rd.. Mr Gary Cook - Whiiecross Road/Bricknell Close.. Mrs Dawn Jones and Mrs Audrey Hirons Related partles Hereford Alunicipal Charities carrie5 Out the admin15tration of the Millar Charity Fund (Charity No= 5143811 and the Tudor Campion Fund (Charity No.. 10359901, both of which chantie5 sha￿ comrnon trustees wlh the Hereford Municipal challti￿. Certain direcr costs relaring to rhese charitiw are charged by Hereford Municipal Charities and In addition an appropriate Share of adtnin15traLive costs 15 also borne by tIE5e connected charities. Risk management The major r15ks to which the Charity 15 exposed are identifled and reviewed perfodically by the Trusiees. Tkey have approved and implemenied financial conirols and have concluded that the risk of material financial fra￿j is low. They review annually iomwehefisive insurance pollcTes and are satlsfled Ihai ihese are suiiat)le for their purpose. Page 2 Hereford Munici I Charitie5 ri of the Tr￿tee5 for the Year Ended 31 December 2023 OBJECTIVES AND ACTIVITIES Objectives aims The Chariiies consolidated by Ihe ChariLy Commission Scheme of 1972 were esiablished over many centuries io prowdc chariiable relief and housin8 to needy citizen5 of the City of Hereford. Their current purpose 15 Sitnilar In so far as current needs demand. The Tru5tee5 are able to tnake small charitable grant5 to people living within the official boundary of Hereford City. The Trustees set guideline5 to their Grants Committee in accordance with the funds available in any given year and the Committee inierviews applicants. Almshouse rèsldents During the year, five re5idenis died (Mrs M Williams, Mrs J Preece, Mrs J Went, Mrs L Leverion, Mrs M Jones, the latter leawng a widower). Two residents (Mr Bristow and Mrs J Newtnanl tnoved elsewhere. Seven new resident5 (Mr M AlcGrath, Mr S Coates, Mr V White, Mi55 M Kenny, Mrs M Howard. Mr5 M Bushell, M5 P Watson) were apwinied io almshousÈs. Two residènts Imrs R Jtshford and Mrs K Waikinsl transfèrred io ground floor accommodation. Public benefit The Chantie5 rneet the public benefit test by prowding ￿￿la1 housing, at a subsidi5ed c05t, for elderly residents of the City of Hereford. They also a5515t in the relief of poverty, through the prow5ion of grants to needy re5ident5 of Ihe Ciiy for e>sential kkJusÈhold iletn5 of furniture, and In helpin4 the education ènd training of re%idents of the City through grant5 for courseltraining fee5 and rnaterials. ln drafting thi5 report. the Truslee5 have complied wilh the duly in Section 4 of the Charities Acr 2(M)6. 10 have due regard to the public benefit guidance published by the Charity Cornmission. ACHIEVEME￿ AND PERFORhiANCE Charitable actlvities A5 in previou5 years, the Tru5tee5 approved a wide range of maintenance itnprovetnent5 durin8 2023. Thi5 Included major adaprations to Almshouses, Whe￿Ver they became vacant, including rhe insrallation of accessible showers and bathrooms and the fiiring of r￿W kitchen units. In the last five years alone, more than C1million pounds have en spent on renovations, tnaintenance and repair5 to the Altnshou*s. In addiiion, the grounds and gardens ai ts)ih sites were kepi in good condition by employ1ng a conlraclor io cui and mainiain Lhe grass, trees and hedges. The residents continued to enjoy a variety of benefits, including the Chri5tma5 Luncheon, which was held again i December 2023 at the Green Dragon Hotel in Hereford, an occasion tnuch enjoyed by the residen15 in a relaxed and friendly pre-Chri5tma5 gaLherin8. The group television licence wa5 renewed, thereby allowing those in regidence before 2012 to watch television wlhout pawng for their own licences. In èddition to the provision of low-tosr social housing to residènts of Hereford city, Ihe Charity continued to ￿1p in the relief of poverty through the prowsion of grants, wa the Eleem05ynary Fund, to needy people in the city for sential knusehold goods and furniture. Through the Educational and Training Fund, the Charity also gave grants to local residents in the City to assist in education and training. Fundra151ng actI￿￿e5 The Charilie5 do not fund raise ar actively seek bequests. Benevolent citizens have made beqU￿tS for six centuries, including up 10 the present day. It is not within ihÈ Trusiees, remit to comrete with charities whose aims are rnore irnFnediale and epherneral. Page 3 Hereford ￿n￿l al Charities Re rt of rhe Truste for the Year Ended 31 December 2023 FINANCIAL REVIEW Financial position The results for the year show a surplus of £542.593 12022.. delicit 1254.2611. after inve5ttDent gaTn5 of £346,020 12022.. 105se5 of 1487,7751. Net assets amounted to £7,795,818 12022.. £7,253,225). There has been an decrease in Alrnshouse Intome of 4.45% 12022'.Increase 9.07%1 which continues to help to support the continuing prograrnrrE of repairs and maintenance. Dividend income increased by 13.11 12022..3.5%1, while the overall market value of lisied inYe5trnent5 r05e by 7.18% this year afrer falling last year being affected by Ihe events in Ukraine and the current econornic climate in the UK, 12022.. fell by 10.58%). Further detai15 can be seen in the AchieYetnent5 and Performance section of this report 3rTrd in the Statemeni ol Financial ACtI￿tieS In the Account5 for 2023. Administrative costs The Trustee5 ensure that the adrnini5trative and Staffing costs of the Trust are under a tight rein and are kept a5 low as p0551ble consistent wth effective managernent and control. The Truslee5 would like to place on record their grateful than￿ to Ihe staff lor their dethcat?on and hard work on behalf of the Trust. Principal funding sources The prlncipal fundin4 Source of the charity is the monthly maintenance charge received from the residents of the Almshouses, along with diwdend and interest income from the inve5ttnents. Investment pollcy and oblectlves The investments in stocks and shares are managed by CCLA (Church, Chariiy and Local Authorityl Investment Managemenl Limited. The Trustee5 investment policy is, in conjunciion with thar4ÈS to rÈsidÈnis, 10 provide sufficient income to maintain and improve their propertie5 and to enhance the value of inV￿ted fund5 for the benefit of resident5 tKiw and in the future. The Chanties. investmentg are managed by CCLA according to guidelines agr*d by the Trustees. CCLA has an ethical policy to which the Trustees subscribe. The Tru5tee5 review the inve5trnent5 Wlth CCLA annually to ensure that they TD&t the need5 of the Charitie5, Ma￿n4 changes as necessary In consultation with ihe1r prof*sional advisers. The Altn5house BratKh owns one farm (Nunslandl, managed by a resideni farmer (Alark Bufionl and Inspecled by a professional Farm Agent. The Trustee5 are 5UPPOrtive landlords and contribute to improvements in the fartn. The 5urpiu5 5ub51di5e5 the Altn5hou5e Branch. ThÈ farm's valuè was reviewed by the Trustees, Land Agent in August 2021. It saw an increase in value from £825,0(X) to £1,320,0(X). Resetves policy The Trustees regularly review the level ol rese￿e$ available Itx)th unr￿trICted and restrictedl and have considered the balar(e between the need lo use some re5erve5 lo take advantage of key opportunitle5 to advance the work and developtnenl of ihe organisalion, and to ensure that a secure financial ba5È 15 maintained. Total reserves at the balance sheet date totalled 17,795,818 12022: £7,253,225>. Of this 1485,524 12022: 1485,5241 wa5 re51ricted funds and £5,435,592 12022.. £5,184,217) endowment funds. The Trusiee5 W1sh io relain unresiricred funds at a level equivalent to one yea15 income. The current reseYve5 exceed thi5 a5 a matter of prudÈnce in thÈ turrÈnt Èconomic tlimatÈ. Freè rÈsÈrves li.e. unrestricted fund5 le55 fixed a55ets1 at the year amounted to E1,874,702 12022.. 11,583.4841 as shown on the balance sheet. Golng concern The Trustees believe thal their accounts are in a sound financial p051tion to continue for the foreseeable future, a5 oted above IFundatnenta15 of ihe Charitiesl.. they do not need to fund-raise or actively seek bequests. Further details are provi{￿d in the accounting p)Iicies note, Included In the notes to the financial statemenrs. Page 4 Hereford Munici al Charirie5 rt of the Tru5tee5 for ihe Year Ended 31 December 2023 PLANS FOR THE FUTURE12021 AJ4D BEYOND) During 2023, Lhe Trustees wefe engaged in discussions with the Fore5Ler5 Friendly Society (Court 8429, Pride of the Wyel about purchasing their eight bungalow altn5house5 on Whilehor5e St and Chandos St, adjacent to the Whitecr055 RdlBricknell C105e 51te. These seemed to the Trustees to cotnplement the ex15ting site. The purchase and conveyance of the properlie5 are with the Solicitor5. 11 15 expected that the nece55ary legal for[naliti￿ will be completed 2024. The Trustee5 have decided 10 re-assess the Good Neighbour5 Scheme fo adapt to current need5 on both 51te5 Bricknell Close and 5t Owen Street. Good Neighbours Scherne is not a statutory service, but it proved to be very beneficial and appreciated by the residents. Trustees will coniinue iheii well-tried wlicy of itnprovirbg and renovating Ihe alm5hou5e5. CONCLUSION Finances are in good conditK)n. Given the capiial injeciion of money which has taken place in ihe recent past, rhe Tru5tee5 have used the oprK)rtunity to make long rerm structural Improvements to the Almshouses, which will help to ensure their future sustainability. Al the same time, the capital value of the permanent endowment5 15 being maintained and enhanced. They date from the estaNishrrEnt of St Giles's Hospital in 1290 and the Truste￿ have looked after them over many tenturies for the benefit of Ihe Alm5hou5e re51dents and the citizen5 of Hereford. STRUCTURE, GOVERNANCE AND A14NAGEMENT REFERENCE AND ADMINISTRATIVE OETAILS See page 1 STATEMENT OF TRu¥fEES' RESPONSIBILITIES The trustees are resrx)nsible lor preparing Ihe Reporl of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Ger*rally Accepted Accounting Practicel. The law applicable Lo charities in EngLand and Wales, the Charitie5 Act 2011, Charity (Accounts and Reports) Regulalion5 2(K18 and the prov15ion5 of the trust deed require5 the trustees to prepare financial statements for each finantial year which give a true and fair wew of the state of affair5 of the charity and of the incorning r￿oUrceS and application of resources, including the incon)e and expenditure, of the chariiy lor rhat period. In preparing those financial statements, the trustees are required to selecr suitable accounting policie5 and then apply them con515tently observe the meihods and principles In the Chanty SORP; rnake Judgements and estitnates that 3re reasonable and prudent. prepare the financial staten￿rni$ on the going concern t)asis unless ii is Inappropriaie to presume that the charity will continue in business. The trustees are re5p)nsible for keeping proper accounting records which disc105e with reasonable accuracy at any tirne the financial position of the charity and to enablt them to ensure rhai the financial staiements tompiy with the Charrities Acc 2011, the Chariiy IAccounts and ReporL51 RegulatlOn5 2W8 and the prowslOn5 of Ihe trust (ked. They are also responsible for safeguarding Ihe assets of the charity and hence for taking reasonable steps for Ihe preveniion and deleclion of fraud and other irregularities. Approved b order of the ￿ard of trust￿ on and sigTred on it5 behalf by= Mrs P Andrews- Trus Pa8e 5 rt ol the Inde ndent Auditors to the Trustees of Hereford Munici I Charities Oplnlon We have audlted the financial 5tatement5 of Hereford Mufticipal Chariiies (the 'charityl for the year ended 31 December 2023 which comprise the Staternent of Financial Actiwties. the Balance Sh*t and noles to Ihe financial staterronts, including a summary of significant accouniing policies. The financial reporLing framework that has been applied in their preparalion 15 applicable law and United Kinqdom Actounting Standards (United Kingdom Generally Accepted Accouniing Practicel. In our opinion the financial 5tatements'. give a true and fair ￿eW of the State of the charity5 affai￿ as at 31 December 2023 and of its 1ncoming ￿sOUrceS and applicatlon of rc50urces, for the year then eDded", have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Practice; and have been p￿pared in accordance with the requirement5 of the Charities Act 2011. Basis for opinlo We conducted our audit in accordance with International Standard5 on Auditing IUKI IISA5 IUKII and ap￿1[abLe law. Our r*wnsibilities under those 5tandard5 are further described in the Auditor5 res￿nsIbIlIti* for rhe audit of the financial 5taternentS Section of our rewrr. We are 1ndependenr of Ihe charity in accordance with the ethical requirements that are relevani to our audir of the financial state￿ntS in the UK, including the FRCS Ethical Standard, and the provisions available for small entities, in the circumstance5 set out in note 17 to the financial staternents, and we have fulfilled our other ethTcal reS￿￿57b]lItIe5 In accordance with these iequiretnents. believe Ihat the audit evidence we have obtaitEd is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee5 use of the going concern ba515 of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforrned, we have rK)t identifled any rnateflal uncertalntles relatlng to event5 or conditlQn5 that, individually or colleciively, may cast significant doubt on the charit15 ability to continue as a goirv4 concern for a period of at least twelve month5 frotn when the financial 5talemenls are auihori5ed for i55ue. Our reswnsibilTties and the re5tx)nsibilities of the trustees wih re5FECt to going concem are described in ihe relevant sections of thi5 report. Other inforrnatk) The trustees are restx)nsible for the other infortnalion. The other information coThpri5e5 the infortnalion included in the Annual Report, other than the financial starements and our Report of Ihe 1nde￿ndent ALsditors thereon. Our opinian on tho financial stateThents does not cover the other inforrTration and, excepl to Ihe e%teDt othervAse explicitly stated in our report, we do not expr￿5 any fortn of a55urance ionclusion therÉon. In connecrion wilh our audit of the flnancial stateTnenLs, our re5Wn5ibilTrty is to read the other inforrnation and, in doing so, consider whether the oiher Information is materially Incons75tent wilh the financial staterrtnts or our knowledge obtained in the aL*dit or otherwTrse appears to be malerially tni55tated. If we idenlily such rnaterial inconsiste￿ie5 or apparent material m155latetnenls, we are required to determine whether this gives rise 10 a rnaterial tni55tatement in the financial starements themselves. If, based on the work we have performed, conclude that there 15 a material tlli5Statement of this other informaiion, we are required to rewrt that fact. We have rK)thing to report in this regard. Matter5 on which we are rèqulred to report by exceptlon We have nothing to report in respect of the following malter5 where the Chanl1e5 IAccouDts and Reportsl Regulations 2008 require5 us its report to you if, In our opinion= the information given in the Report of the Trustees is incon515tent in any tnaterial respect vrith the flnatKial stsiements; or 5ufficlent accounting records have not bÈen kept., or the financial statement5 are not in agreetnent with the accounting records and return5'. or we have Trot received all the infortnation and explanalions we require for our audit. Page 6 rt of the Inde ndent Audito￿ to the Trustee5 of Hereford h￿nItI al Charities Responsibilitie5 of trustees A5 explained tnore fully in the StateTnenl of Tru5tee5 Reswn5ibilities. the trustees are reswn5ible for the pieparation ol the financial statertEnLs which give a true and fair wew, and for such internal control as the Iru5tees ¢Jeitrmine 15 nece55ary its enable the preparation ol financial 5tatettEnlS thal are free frotn material tni5slatetnenl, whether due to fraud or eiror. In prepanng the financial statements. the trustees are resrx)nsible for assessing the charitys ability to continue as a going concern, disclosing, as applicable, mèiiers related to going concern and usin4 ihe going concern basis of accounting unle55 the tru5tee5 either intend to liquidate the charity or Lo cease operations, or have nD realistic alternative but to do $0. Page 7 Re rt of rhe Inde ndent Auditor5 to the Trustee5 of Hereford Munici al Charities Our responslbilitle5 for the audit of the financlal statetnents We have been apwinted as auditors under Section 144 of the Charities Act 2011 and report in accordance wth the Att and relèvant regulations made or hawng effect thereund&r. Our objective5 are to obtain reasonable assurance aboui whether the financial 5tatenrnts as a whole are free frorn material m1gstatew￿Thl, whether due to fraud or error, and to 155ue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but 15 riot a guarantee that an audit conducted in accordance with 15A5 IUKI will always dereci a materTal misstatement when it exists. Misstaiernents can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expecied io influence IhÈ economic decisions of users taken on the basis of these financial sLatement5. The extent to which our procedures are capable of detecting irTegularities, including fraud 15 detailed below.. In Identifying and assessing risks of material misstaternent Tn respect of irregularities, inCludir￿ fraud and non-comp11a￿e with laws and requlaiions, we considered the followng.. the nature of the industry and sector, control enwronrnent and business performance results of our enquiries of management about their own identification and a55e55ment of the risks of irregularities any rnatters we identified hawng obtained and reviewed the policies and procedures relating Lo.. identifying, evaluating and complwng with laws and regulations and whether they were aware of any instances of rM)n-complla￿e deiecrin4 and reswndinq to the risks of fraud and whether Ihey have knowledge of any actual, suspected or alleged fraud the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations the matters discussed among the audit engagement team and involving intemal specialists, regarding FK>W and W￿re fraud mTghl occur ln the financial 5taiernen15 and any poreniial indicators of fraud As a result of these pr(Kedures we considered the OPPK>rtunitie5 that may exist within the organi5ation for fraud and ident11ied the greatest potential for fraud In income, which was raised as a key audit matter in the current year. common with all UK audit5 we are a￿0 required to perfortn specific procedures to reswnd to the risk of tnanagement oyerrlde. We also obtaTned an understanding of the legal and regulatory frarTEwork the organisation operates in, fiKu51ng on prO￿SiD￿5 of hose law5 and regulations that had a direct effect on the determination of rnaterial atnounts and disc105ure5 In the financial 5tatement5. The keys laws and regulations we considered In this contexi include tk Companies Act, Charities Act and Charities SORP and tax legislation. In addition we considered prowsions of other laws and regulation5 that do not have a direct effect on the finBncial staternents bui compliancè w1rh whith may be fundamÈnial to Iho organisation s ability to opware. ThÈsÈ intlude health and Safety. In additi(M 10 the above, our procedures to respond to ris￿ identified include the following.. reviewing the financial 5taterrÉnt5 disclosures and testing to SUPPOrting docurnentation to assess compliance ￿th prow5ion5 of relevant law5 and re8ulations d*cnbed as having an effect in the financial siatements enquiring of manaqemeni concerning actual and rM)iential litigation claims perforrning analytical procedure5 to identify any unusual or unexpEcled relatiOn5hip5 that tDay indicate ri5k5 of material mi55tatements due io fraud reading minutes oof rneetin85 of those charged with governance in addre55ing the risk of fraud through management override of controls, testing the appropriatene55 of journal entrie5 and other adju5tments- a55e55ing with their judgements made in maknng accounting estimates are Tndicative of a potential ba5,. and evaluating the businÈss rationale of any significant Iransactions Ihat are unusual or outside the norrnal course of busin￿5. We also communicated relevant laws and regulations and wtential fraud Tisk5 lo all engagernent tearn rrEtnbers, including internal 5peciali5e5 and retnained alert to any indications of fraud or non.compliance with laws and regulaiions throughoui the audit. Page 8 Re rr of the Inde ndent Auditors to tho Trust@e5 of Hereford Munici al Charities A further description of our reswnsibilities lor ihe audii of Ihe financial staieffEnts is located on the Financial Reporting CDuncil'5 web5iie at ￿V￿.frc.0r￿.Uk/aUd1torSre5P)nsIbIIiiIe5. This de5cripiion forms part of our Rewrt ol the Independent Auditors. Use of our report This report is rnawment funds exist in the form of tangible fixed assets and investments. Penslon costs and other pOSt-￿tIrernent beneflt5 The charity operates a defined contribuiion pension scheme. Contribuiions payable to the charity5 ￿nsiOn scherre are charged 10 the Statemeni of Financial Activiiies in the period io which they relate. Flxed asset and current inve5ttnents Investtnents are stated at market value as at the balance Sheet date. The staternent of financial activities includes the net gains and losses arising on rèvaluation and disposals throu8houi ihe year. Gains and losses All gain5 and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on inyestments are calculared as the difference between 5ale5 proceed5 and opening Market value (purchase date Trf lalerl. Unrealised gains and losses are calculaied as Ihe dIffe￿nCe beiween ihe markei value ai the year end and opening market value lor purchase date if later). Realised and unrealised gains are not separated In the Statement of Financial Activities. Debtors Trade and oiher debiors are recognised at the Settle￿ni amouni due after any discounts offered. Prepaymenls are valued at the amounts prepaid net ol any discounts due. Cash and bank and In hand Cash at bank and cash in hand includes cash and shori term highly liquid investments with a short maturity of three months or less frDm Ihe daitr of acquisiiion or opening of the dewsii or similar account. Creditors and pro￿￿10n5 Creditor5 and provisions are recoBnised where the charlty has a present obligatlon r￿ULting frorn a past event that will probably result In the transfer ol funds to a third party and the atnount due to settle the obligation can be rneasured or estimated reliably. Creditors and provisions are normally recognised at Iheir settlement amount afier allowing for any discount5 due. INVESTMENT INCOME 31.12.23 Total funds 31.12.22 Total funds Unre51ricted funds Restricled funds Enthwmenl lurids Renrs received Diwdends and interest 121,994 121,994 105,869 139,105 139,105 122.980 Page 13 continued... Hereford Munici al Charitie5 Notes io the Financial Statements - continued for the Year Ended 31 DecembÈr 2023 GRANTS PAYABLE 31.12.23 31.12.22 Aim5houses Eleemosynary Apprenticing and educational 2,815 6,710 520 2,080 5,795 7,230 SUPPORT COSTS Governance cost5 Other Tota15 Almshouses Eleem05ynary APprenti￿ng and educational 32,671 1,519 19.993 410 164 52,664 1,929 544 34,570 20.567 55,137 AUDITORS. REMUNERATION 31.12.23 31.12.22 Fees payable to the charity5 auditors for the avdit of the charitys financial 5taterrents 5,183 4,998 TRUSTEES. REMUNERATION AND BENEFITS There were rrf> trustees rerruneration or other benefits for the year ended 31 December 2023 mr for the year ended 31 December 2022. Trustees. expenses There were no trustees. expenses paid for the year ended 31 December 2023 nor for the year cnded 31 December 2022. STAFF COSTS 31.12.23 31.12.22 Wage5 and salaries Other ￿nsIOn costs 21,821 2,486 20,699 24,307 23,207 Mana ement Remuneration The key managernent personnel of the charity is considered to be the trustee5 and the Chief Executive Officer. The total arnount of employee benefit5 (including employer pension contribution51 received by key matTraoement personnel for their services to the charliy wa5 113,85012022.. 113,2611. The average [￿nthlY number of employee5 during the year wa5 a5 follows- 31.12.23 31.IZ.22 Administralive staff Page 14 continued... Hereford Munici I Charitie5 Note5 lo the Financial gialements - conlinued for the Year Ended 31 Decetnber 2023 STAFF COSTS - continued No employees received emolument5 in exce55 of £60,(X)O. COMPARAnVES FOR THE StATEMENT OF FINANCIAL AcfwiTIES Unrestricted fund Restncted funds En¢k>wtnent fund Total fund5 INCOME AND ENDOWMENTS FROIA CharftablÈ activitle5 Almshou5e5 112,on 312,OT2 Investrnent income 122,98A) 122,980 Total 435,052 435,052 EXPENDITURE ON Raising funds 10,865 10,865 Charitable actiwtre5 Almshouses Eleemosynary Apprenticing and educational 180,974 8,634 1,065 180,974 8,634 1,065 Total 201,538 201,538 Net gain51llossL41 on Investments 179,6331 1408,1421 1487,7751 NE[ INCOMEIIEXPENDITUREI 153,881 1408.1421 1254.2611 RECONCILIATION OF FUNDS Total fund5 brought for*4ard 1,429,603 485,524 5.592.359 7,507,486 TOTAL FUNDS CARRIED FORWARD 1.583,484 485,524 5,184,217 7,253,225 TANGIBLE FIXED Asstrs Housing Association Properly Almshouse Property Tota15 cosr At 1 January 2023 and 31 December 2023 480,932 671,758 1,152,690 Ntr BOOK VALUE Al 31 Decernber 2023 480,932 671.758 1,152,690 Ar 31 December 2022 480,932 671,758 1,152,690 Included in cost or valuation of land and buildin4$ 15 freehold land of £1, 152,690 12022 £1,152,690) which is rK)t deweciaied. Page 15 continued... Hereford h￿nic7 al Charities Note5 lo the Financial Statements- continued for the Year Ended 31 December 2023 TANGIBLE FIXED ASSETS - tontlnued Properly ha5 been valued based on the 1972 valuations at the time of thè establish￿Tht of the charity cotnmlS510n scheme, subsequent purchase5 have been valued at C05t. 10. FIXED ASW IMVESTMENTS Listed investments IiARKEf VALUE At l January 2023 Revaluatlons 3,192,459 251,375 Af 31 December 2023 3,413,834 BOOK VALUE At 31 December 2023 3,443,834 At 31 December 2022 3, 192,459 There were no investrnent assets outside tkE UK. Cost or valuation at 31 December 2023 15 repre5enled by- L15ted inve5tmenrs Valuation in 2022 Cost 1,793,349 1,650.485 3,443,834 INVESTMENT PROPERTY FAIR VALUE At 1 January 2023 and 31 December 2023 1,320.((X) NEf BOOK VALUE At 31 December 2023 1,320,(KX) At 31 tkcember 2022 1,320,CQO The Tnve5tment property consisting of land and buildings has rK>t been depreciated in the year. Page 16 continwd... Hereford Munici al Charities Note4 to the Finaftcial Statements- continued for the Year Ended 31 Oecember 2023 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Other debtors Expense recoverable Prepayment5 and accrued income 2,219 21,610 44,665 1,919 62.822 42.575 68,494 107,316 13. CURRENT ASSET INVESTMEKrs 31.12.23 31.12.22 Listed invesiment5 9T2,747 928,101 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Taxation and social secunty Other creditors 934 27,433 889 10,091 28,367 10,980 MOVEMENT IN FUNDS Net movernent in funds At 31.12.23 At 1.1.23 Unrestricted funds Unrestricted Alrn5hou5e fund Designated Extraordinary repair fund Designated Eleemosynary fund Designated William Brydges fund Designated Apprenticing and Educational fund Designated Hertrtrt Gelder fund 1,353,620 134,693 75,551 3,778 263,592 8,362 17,975 38 1,617,212 143,055 93,526 3,816 14,064 1,778 442 809 14.506 2,587 1,583,484 291,218 1,874,702 Restricted funds Fixed A55et Almshouse fund Munel Filde5 fund 480,932 4,592 480,932 4,592 485,524 485,524 Endowment funiJ5 Enthwment fund 5.184,217 251,375 5.435.592 TOTAL FUNDS 7.253,225 542,593 7,795,818 Page 17 tontinued... Hereford Munici al Charitie5 Note5 to the Financial Statemenls - coniinued for Ihe YÈar Ended 31 December 2023 MOVEMEKf IN FUNDS- continued Net tnovetnent in fund5, irKluded in the above are a5 follows.. IrKoming resources Re50urce5 expended Gains and losses l&)vement in funds Unresldcted funds U￿r￿trICted Alm5hou5e fund Designated Extraordinary repair fund Designated Eleemosynary fund Designated William Brydges fund Designated ApprentTcing and Educational fund Designated Herbert Gelder fund 416,203 1238,4311 85,820 8.362 263,592 8,362 17,975 38 20,804 38 12,8291 2,602 809 12,6241 464 442 809 440,456 1243,8841 94,646 291,218 Endowment funds Endowment fund 251,375 251,375 TOTAL FUNDS 440,456 1243.8841 346,021 542,593 Comparative5 for rnovement in funds Net rnovetnent in funds At 31.12.22 At 1.1.2Z UnrestTiCted funds Unre5triEted Almshouse fund Designated Extraordinary repair fund Designated Eleemosynary fund Designated William Brydges fund Designated Apprenticing and Educational fund Designated Herbert Gelder fund 1,215,639 133,636 63,134 3,992 137,981 1,(￿7 12,417 12141 1,353,620 134,693 75,551 3,778 12,233 969 1,831 14,064 1.778 1,429,603 153.881 1,583,484 Restrfcted funds Fixed Asset Almshouse fund Jriel Filde5 fund 480,932 4,592 480,932 4,592 485.524 485,524 Endowment funds Endowrnent fund 5,592,359 1408,1421 5,184,217 TOTAL FUNDS 7,507,486 1254,2611 7,253,225 Page 18 continued... Hereford Municl I Charitie5 Notes to Ihe Financial Staiemenis - coniinued for the Year Ended 31 DecembÈr 2023 MOVEMENT IN FUNDS - continued ComDarative ner movÈmÈnt ln funds. Intludèd in the above are as follows.. Incoming resources Resources expended Gains and losses )veff*nt in fund5 Unrestrlcted funds Unrestricted Almshouse fund Designated Extraordinary repair fund Designated Eleemosynary fund De518nated Williaffl Brydges fund De518nated Apprenticing and Educational fund Designated Her￿r¢ Gelder fund 410,805 1192,0891 180,7351 1,057 137,981 1,057 12,417 12141 20,799 38 18,3821 12521 2,601 809 18151 45 1,831 809 435.052 1201,5381 179,6331 153,881 Endowmènt fund5 Enthwment fund 1408,1421 1408,1421 TOTAL FUNDS 435,052 1201,5381 1487,7751 1291,2611 Unrestricted Funds UnresLricted Almshouse fund IAltnshou5e Branch) Ihe provision of low cost social housino to the residenis of the Ciiy of Hereford. Designated Extraordinary Repairs fund IA1ffl5house Branch) the prowsion of extraordinary repairs, improvemenis or rebuilding rhe AlmghDuses and orher property belonging to the Alrnshouse branch. Designated Eleemosynary fund IEleemosynary Branch) 10 provide relief of poveriy Ihrough the provision of grants to needy people in the City of Hereford for essenlial household goods and itetn5. Designated Williatn Brydge5 fund (Eleemosynary Branch) to be applied in educating and traning and relieving p)werty and 51ckDe55 atnong persons resident In Ihe City tsf Hereford. De5Trgnated Apprenticing and Educational fund IApprenticing and EdLKational Branch) to be appliecl lor rhe benefit of children or young per50n5 who are residenis in Ihe City of Hereford and who are in need of financial assistance. Designated Herbert Gelder Charity fund for Ihe benefit of ihe re51denl5 of ihe Almshousè branch and tk relief of wor old per50n5 resident in the City of Hereford either in gilts in kind or grant5 01 money. Restricted Funds Fixed a55et Alm5hou5e fund . the value of the housing a550ciation hou5e5. Muriel Fildes. fund the legacy which has been prowded for the purtM)se of fostering and promoting musical education and the knowledge and appreciation of music in the City of Hereford. Endovnnent funds are made up of the value of the Almshou5e5, the farm investrnent property and fixed asset investments. Page 19 continued... Hereford ￿nIC7 al Charities Nores to the Financial Sratements- continued for the Year Ended 31 December 2023 RELATED PARTY DISCLOSURES Hereford Municipal Chanti* carrie5 out ihe administration of the Millar Chanty Fund (Charity No: 5143811 nd the Tudor Campion Fund (Charity No.. 10359901, both tharilie5 sh6re cotnmon tfU5tees with the Hereford Municipal Charity. Certain direct Costs relating to these charities are charged by Hereford Municipal Charitie5 and in addition an appropnate share of adtninistrative c05t5 15 a150 borne by these connected chaTltie5. The Mlllar Chariiy Fund During the year expenditure of C17,476 12022.. £17,516) was recharged to the Millar Charrity. At the year end £17,476 12022.. £51,0551 was due from the charity. The Tudor Campion Fund During the year expenditure of £4,133 12022.. £4,085> was recharoed to the Tudor Campion Fund. At the year end [4,13312022.. £11,677) was due from the charity. 17. FRC ETHICAL STANDARD- PROV1510NS AVAILABLE FOR 5PkALL ENT￿lEs In common wth many other bU51r￿sseS of our sizÈ and naiure we use our auditors to prepare and subtnit reiurns to the tax authorit7es and assist with the prepararion of the finanaal staternents. Page 20