REGISTERED CHARITY NUMBEL" 218738 rt of the Trustees and Financial Statements for the Year Ended 31 Oecember 2024 for Hereford Munici I Charities Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Hereford5hire HR4 7BS Hereford Munlcl al Chat1tles Contents of the Financial Statement5 nde December 2024 Pa8e Report of the Trustees 1 to 6 Report of the Independent Auditors 7 to 10 Statement of Financial Activities Balance Sheet 12 Nofrs to the Flnanclal Statements 13 to 21 Detailed Statement of Financial Act￿￿tIeS 22 to 23 Hereford Municl I Charftles Re rt of the Trustees for the Year Ended 31 December 2024 The trustees P￿sent their report with the financial 5tatement5 of the charity for the year ended 31 December 2024. The trustees have adopted the provisions of Accounting and Rep)rting by Charities: Statement of Recommended Practlce appllcable to char(tles prepafing thefr accounts In accordance wlth the Flnanclal Reportlng Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. REFERENCE AND ADMINISTRATIVE DETAILS Charfty No.: 218738 Offke: 147, St. Owen Street. Hereford. HR12JR. Names of Trustees: Mr5 Polly Andrews (Chairman) Cllr Susan Boulter Cllr Elizabeth Foxton Mrs Marlan Hawkes Mr David Howerski Mr Paul Morri5 Mr Brian Wilcox Ms Rhlanon Robinson (appointed 19 January 20241 hlr Hugh Brooks l appointed 15 March 20241 Chl•f ExKutlve OfflcÈr and Clerk: Peter Cabara Ifrom 01.01.20241 Actounts Administrator and General Asslstant: Ms Edwina Haffenden Bankers: National Westmlnster 8ank plc, Broad Street, Hereford, HR4 9AH Sollclrors: Gabbs Isolfcltorsl, 14 Broad 5t. Hereford. HR4 9AP Auditors: Thorne Widgery, 2 Wyevaie Business Park, Kings Acre, Hereford, HR4 78S Investment Advfsers: CCLA Investment Management Ltd, Cheapslde, London Land Asents: 5underlands, St. Peterfs Square, Hereford, HRI 2PQ STRUCTURE, GOVERNANCE AND MANAGEMENT Governln8 document Charity Commission Scheme seaLed on 24th April 19n. Recrultment and appointment of new tru5tee5 The Board of Trustees conslsts of up to 10 competent persons, namelyi two Nomlnatlve Trustees and elght Co-optative Trustees. Nominatlve Tnjstees are appolnted by the Parish Council of the City of Hèreford lor its appropriate su¢¢essorl. Each appolntment Is made for a term of four years. Co-optative Trustees are appolnted for a terni of five years Irenewable for not MO￿ than two tennsl by a ￿$OlutIon of the Co-optatlve Trustees, passed at a Special Meeting? Tru5tee5 whose term5 are expiring may not vote on the matter. Oryanisational structure Page I Hereford Munici I Charities Re rt of the Trustees for the Year Ended 31 DeCeffl￿r 2024 The Trustees, at their first meeting In each year (Annual General Meeting), elect one of their number to be Chaiman until the Commencement of the followTng year, and similarly wth regard to a Deputy Chairman. The￿ Is a tlme Ilmit of three years for the wsltlons of Chalrman and Deputy Chaim)an. At the AGM in January 2024, Mr5 Polly Andrews was re-elected Chairman and Mr Paul Pknrrfs was re-elected as Deputy Chalnnan. A SFecial Meetlng may be summoned by the Chalrman or by two Trustees, tjwjn four days, notice being glven to the other Trustee5 of the matter to be discussed, but, if the matters include an apF¥)intment of a Co-optatlve Trustee, then upon not less than 21 days, notice belng so glven. There Is a quorum when ffve Trustees a￿ present at a meeting. Every meeting is ijetemiined by the majority of votes of the Trustees present. In the case of an equallty of votes, the Chairman has a castlng vote. Committees The Trustee5 appoint as many committees as they thlnk flt for the admlnlstratlon of the Charities. All acts and proceedings of the committee5 are reported to a General Meeting of the Board of Trustees for conflrmatlon. In year 2024, there were following Comrnlttees: AlmShoL￿e5 Branch: Pastoral Commlttee.. thFs comprises of four Trustees and deals with the 5eiectTon and appolntment of ￿SIdentS and theTr subsequent welfare. One of the Committee members is selected as Lead Imrs Marian Hawkes durlng year 20241. It meets as necessary. Ele•mosynary and EdLKatlonal Branth: Grants Comrnittee: this comprises two Trustees and deals wlth the appllcatlons submltted for grants under the above Funds, normally intemewng applicants in person in HMC office. It meets four tirnes a year, although the Chalrman of the Board of Trustees has executlve authorlty to deal as necessary wlth urgent applications between rneetin45. Working Group on Almshou*￿ Maintenance: In 2024 thi5 ha5 been extended to all Board members present at the General Meetings. The Clerk keeps under ￿vieW the condition of the Almshouses, reportlng on necessary remedial and improvement work to the Board of Trustees. The Board of Trustees then ijlscusses and approves the works during the General Meetlngs. Mana Chlef Executlve Offlcer and Clerk: the Trustees appoint a fit person for the day-to-day running of the Trustees, buslne5s as well as P￿dIng sultabie offlce accommodatlon and andliary SUPF¥)rt. The tur￿nt appolntee 15 Mr Peter Cabara. Chaplain- the Tru5tee5 appoint a Minister of Religion or a licensed Reader as Chaptain of St. Glles, and Williams, Hospitals lat p￿Sent, Diane Batesl and another Minister of Religion or li¢en5ed Reader a5 Chaplain of Price's Chapel lat present, Steve Vin¢el. Good Nelghtrx)urs: the Trustees have deslgnated the foLlowlng resldents to be the G(xJd Neighbtsurs at the two 51tes, in order to provide supwrt and assistance to the ￿sIdents. - St Owen StlLedbury Rd: Mr Gary Cook - Whitecross RoadlBrfcknell Close: Mrs Dawn Jones Related partie5 Hereford Municlpal Charltles carrles out the admlnlstratlon of the Mlllar Charfty Fund Icharlty No.. 5143811 and the Tudor Camplon Fun¢J Ichadty No: 10359901, both of which Charities Sha￿ common trustees wth the Hereford hlunicipal Charities. Certain direct costs relating to these charities are charged by He￿f0rd Munlcipal Charitles and in )ddItI￿ an approprlate Sha￿ of administrative Costs 7$ also bome by these connected charities. Risk managemènt Page 2 Hereford Munlcl I Charltles Re rt of the Trustees for the Year Ended 31 December 2024 The major risks to which the Charity is exposed are identified and revlewed pedodlcally by the Trustees. They have approved and implemented financial controls and have concluded that the risk of material financial fraud is low. They review annually comprehensive insurance policie5 and are 5atisfThed that these are 5Ultabie for their purpx)5e. OBJECTIVES AND ACTIVITIES ObJertlve5 and alm5 The Charitie5 CQn501idated by the Charity Commission Scheme of 19n were established over many centurie5 to provide charitable relief and housing to needy citizens of the City of Hereford. Their current purpose is similar in far as cvrrent needs demand. The Trustee5 are able to make Small charitable grant5 to people liwng within the offbcial boundary of Hereford Clty. The Trustees set guidelines to thelr Grants Commlttee in accordance with the funds available in any given year and the Committee interviews applicant5. Almshouse re51dents During the year, one ￿sident died Imr Kevin Pounder). Three residents (Mr Paul Murphy, Mrs Barbara James. Mrs Margaret Wheatstone) moved elsewhere. One resident moved within the Scheme for medical reasons (Mrs Beryl Lewi51. Four new residents (Mrs Elsie Reece, Mr *knthony Floyd, Mr Thomas Bevan, Mrs Mandy lknretonl we appointed to almshouses. Pubmc b•n•fit The Char6ties meet the public benefit test by providing affordable housing, at a subsidised cost. for elderly ￿Sidents of the City of Hereford. They also assist in the relief of poverty. through the provlslon of grants to needy resldents of the City for essentlal household items of fumiture. and in helping the education and training of residents of the City through grant5 for courseltraining fees and materials. In drafting thi5 repKJrt, the Trustees have cornplled ￿th the duty In Sectlon 4 of the Charltles Act 2￿6, to have due regard to the public beneflt guldance publlshed by the Charity Commission. ACHIEVEMENT AND PERFORMANCE Charitable actlYltl85 As in previous years. the Tnjstees approved a wde range of maintenance improvements during 2024. Th?s included major adaptations to Almshouses, whenever they became vacant, includlng the Installatlon of accesslble showers and bathrooms and the fitting of new kltchen unlts. In the last five years alone, more than E1miLlion pounds have been spent on renovation5. maintenance and ￿paIrS to the Almshouses. In addition, the grounds and gardens at IKJth sites were kept in good conditlon by employln4 a contractor to cut and maintain the gra5S, tree5 and hedges. The resldents contlnued to enjoy a variety of benefit5. including the Christmas Luncheon, which wa5 held again in December 2024 at the Green Dragon Hotel in Hereford, an ￿caSIOn much enjoyed by the resident5 in a relaxed and friendly pre-christmas gathering. In November 2024. the Trust purchased 8 terraced bungalows at Chandos and White Horse Street In He￿Ord from the Ancient Order of Forester5. The properties were leased to Connexus Houslng Assoclatlon until November 2024. rhe purchase price was £800(MXI. The renovatlon of the propertles started In 2025. AIL 8 properties are identical 1 bed bungalows, wth an access to a green yard back area, whlch ￿11 provlde space to enjoy the communal Ilfe and support5 the almshouse accommodation ethos. In addition tts the provision of iow-cost affordable houslng to resldents of Hereford clty, the Charity continued to help in the relief of poverty through the prow5ion of grants, via the Eleemosynary Fund, to needy people in the clty for essential household goods and fumiture. Through the Educatlonal and TraSning Fund, the Charity also gave grants to Local resldents In the City to assist in education and training. Fundraisin8 activities The Charities do not fund ral* or actively seek bequests. Benevolent cTtizen5 have made bequest5 for six centuries, including up to the present day. It Is not h￿thIn the Trustees. remit to compete with charities whose aims a￿ more Immediate and ephemeral. Page 3 Hereford hlunici I Charitles Re rt of the Trustee5 for the Year Ended 31 December 2024 FINANCIAL REVIEW Flnanclal posltlon The ￿sultS for the year show a surplus of £308,093 12023: £542,593), after Investment galns of £122,257 12023: £346,021). Net asset5 arnounted to £8,103,911 12023: £7,795,818). There has been an increase in Almshouse Incorne of 9.24% 12023.'decrease 4.45%1 whlch contlnues to help to support the continuing programme of ￿PairS and maintenance. Diwdend income decreasek in 20241. Tlw Trustees have appn)Yed an installation of 3 passenger lifts serving the propertles 1 -12 Brlcknell Close. The works are due to commence In 2025. The Trustees have accepted a quote from Mark Bishop Fire and Security Ltd to refurbish the current fire safety system. The work5 are due to commence in 2025. The Trustees wlll continue their well-tried policy of improving and renovating the almshouses. CONCLUSION Flnances are in condition. Given the capital injection of money which has taken place in the recent past, the Trustees have used the opportunlty to make long tern) structural improvements to the Almshou￿, which ￿lI help to ensure their future sustainability. At the same tirne. the capital value of the pernianent endowments is being malntalned and enhanced. They date from the establishment of St Gile5's Hospital in 1290 and the Trustees have Looked after them over many centumes for the teneflt of the Almshouse residents and the Citizens of Hereford. STRUCTURE, GOVERNANCE AND MANAGEMENT REFERENCE AND ADMIMISTPATIVE DETAILS See page 1 STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees a￿ responsible for preparing the Report of the Trustees and the financial statements in accordance th applicable law and United Kingdom Accountlng Standards Iunlted Kingdom Generally Accepted Accounting Practlcel. The law appllcabie to charities in England and WaLe5, the Charities Act 2011, Charity Ikcount5 and RepJrt51 Regulations 2Ix)8 and the provisions of the trust deed requires the trustees to prepare flnanclal statements for each financial year which give a true and falr vlew of the state of affairs of the charity and of the incotning resources and application of resources, Includlng the Income and expenditu￿, of the charity for that p￿ri0d. In preparing th flnancial statements, the trustees are required to select suitable accounting policies and then apply them conslstently. observe the methods and principle5 Irs the Charity SORP,. make judgements and estlmates that a￿ reasonable and pruderht- prepare the financial 5tatement5 on the golng concern basls unless It Is Inapproprfate to presume that the ¢hartty will Continl￿ in business. The trustees are responsible for keeping proper accounting records which disclose wlth reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities A¢t 2011, the Charity IAccounts and Report51 Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charfty and hence for tak7ng reasonable Steps for the prevention and detection of fraud and other irregularities. Page 5 Hereford Munici I Charities Re rt of the Trustees for the Year Ended 31 December 2024 Approved by order of the Fy)ard of trustees on ............................................. and $14ned on its behalf by: Mrs P Andrews - Trustee Page 6 Re rt of the Inde Hereford Muni¢i ndent Auditi>rs to the Trustees of I Charities Oplnlon We have audited the financial 5tatement5 of Hereford Municipal Charities (the 'charit￿l for the year ended 31 December 2024 whlch compdse the Statement of Flnancial Activlties, the Balance Sheet and notes to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that has been applled In thelr preparation is applicable law and United Klngth)m Accounting Standards (United Kingdom Generally Accepted Accountlng Practlcel. In our opinlon the financial statements". ve a true and fair vkew of the state of the charity'5 affair5 as at 31 December 20Z4 and of its in¢oming ￿soUrceS and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance wlth the requirements of the Charities kt 2011. Basis for opinion We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our reswnsibilities under those standard5 are further described in the Auditors, responslbllltles for the audit of the financial statements section of our ￿Port. We are independent of the charity in accordance ￿th the ethical requTrements that are relevant to our audit of the financial statements in the UK. Includlng the FRC'S Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 17 to the financial statements, and we have fulfilled our other ethical respon5ibiLities in accordance with these requlrements. We believe that the audit evidence we have obtained Is sufficient and appropriate to provlde a basis for our opinion. Conclu51on5 reiatlng to golng concern In auditing the financial statements, we have ¢on¢luded that the trustees, use of the golng concern basss of accountlng In the p￿ParatIon of the flnanclal statements is appropriate. Based on the work we have perfom)ed, we have not Identlfled any materlal uncertainties relating to events or conditions that, indiwidually or collectively, may cast significant doubt on the charity's ability to ¢ontlnue as a golng concem for a period of at least twelve months from when the flnanclal statements are authorised for issue. Our resFX)nsibilities and the re5FX)nsibilities of the trustees with resFect to going concern are described in the reitrvant 5ection5 of thls ￿pOrt. Other Informatlon The trustees are responslbie for the other Inforn)atlon. The other Informatlon comprlses the Information included in the Annual Report, other than the flnanclal statements and our Report of the Independent Auditors thereon. Our oplnlon on the financlal statements does r￿t cover the other information and, eKept to the extent otherwlse explicitly stated in our report. we do not exp￿$$ any fom) of assurance concluslon thereon. In connection with our audit of the financial statements, our responsiblllty Is to read the other infomiation and, in doing so, conslder whether the other Information is materially inconsistent wth the financial Statements or our knowledge obtained in the audit or otherw5e appears to be materially mlsstated. If we identify such material Snconslstencles or apparent material misstatements, we are required to determlne whether thls glyes rise to a material mi5Statemewbt in the financial statements themselves. If, based on the work we have performed, conclude that there Is a material misstatement of this other information, we are ￿QUI￿d to report that fact. We have nothing to report in this regard. Alatters on whlch wo are requlred to report by •xceptlon We have nothing to report in respect of the followin8 matters where the Charftles (Accounts and Reports) Regulations 2008 requires us to report to you If, In our oplnlon: the information given it) the Report of the Trustees is irKon5iStent in any material respect the flnanclal statements,. tsr sufficient accounting records have not been kept; or the flnancial statements are not In agreement with the accounting records and retUrn5' or we have not ￿e1ved all the information and expianatlons we require for our audlt. Page 7 Re rt (If the Inde Hereford Munici ndent Auditors to the TTU5tee5 of I Charitles Responslbllltles of trustees As explained more fully in the Statement of Trustees, Reswnsibilities, the trustees are responsible for the preparatlon of thè financial statements which give a true and fair view, and for such intemal control as the tnistee5 determlne Is necessary to enable the preparatlon of flnancial statements that are free from matertal mlsstatement, whether due to fraud or error. In preparlng the flnancial statements, the trustees are re5pon5ible for assessing the charlty's ablllty to contlnue as a going concern, disclosing, as appllcable. matters related to going ¢oncern and uslng the going concern basls of accountlng unless the trustees either intend to liquidate the charity or to cease operatlons, or have no realistic alternatlve but to do so. Page 8 rt of the Inde ndent Audltors to the Trustees of Hereford Munici I Charities Our responslbllltles for the •udlt of the finantial statÈmÈnts We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulation5 made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue a Report of the It)dependent Auditors that includes our opinion. Reasonable assurance is a high Level of assurance, but 15 riot a guarantee that an audit conducted In accordance ￿th ISAS IUKI ￿1[ always detect a material misstatement when it exists. Misstatements can arfse from fraud or error and a￿ considered material if, individually or in the aggregate, they ¢outd ￿asOnablY be expected to influence the economic decisions of L￿erS taken on the basis of these financial statements. The extent to whlch our p￿edU￿$ a￿ capable of detectlng fr￿gULarItIeS, Includlng fraud Is detailed below: In identifwng and a5se5sing ri5k5 of material misstatement in respect of irregularities, including fraud and non-compliance with law5 and regulations, we considered the foliowlng.. - the nature of the industry and sector, control envtronrrtent and buslness perfomiance results of our enqulrfes of management aixjut their own identification and assessment of the risks of irregularities - any matters we identified having obtained and reviewed the policies and procedures relating to: . Identlfying, evaluatlng and complying with laws and regulations and whether they were aware of any instances of non.compliance detecting and respondlng to the rlsks of fraud and whether they have knowledge of any actual, suspected or Ileged fraud the internal controls establlshed to mltlgate Msks of fraud or non-compllance vAth laws and regulatlons the matters discussed among the audit engagement team and involving internal specialists, regarding how and where fraud mlght occur irn the financial statements and any potential indicators of fraud As a result of these proce(lures we considered the opportunitie5 that may exist wthin the organisation for fraud and identified the greatest potentlal for fraud in Income. which was raised as a key audit matter in the current year. ommgn wlth all UK audits we are also requlred to perform speclflc pffKedures to resp)nd to the rlsk of management override. We also obtained an understanding of the legal and regulatory framework the organlsatlon operates In. f￿USIng on provisions of hose laws and regulations that had a direct effect on the determination of material amounts and disclosures in the flnanclal statements. The keys laws and regutations we considered in this context include the CompanSes kt. Charities Act and Charitie5 SORP and tax legislation. In addltlon we considered provision5 of other law5 and regulatlOJ15 that do not have a direct effect on the financial statements but compllance ￿th which may be fundamental to the organisation's ability to operate. These fnclude health and safety. In addition to the above, our procedures to respond to risks identified include the following: reviewng the financial statements disclosures and testing to supporting documentation to asses5 compliance wth provisions of relevant Laws and regulatiorks described as having an effect in the financial statement5 enquiring of management concerning actual and wtential litigation claims rformfng analytical procedure5 to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud reading mlnutes oof meetings of those charged with governance in addressing the risk of fraud through management overrfde of controls, testlng the approptlateness of loumal entries and other adju5tments,' assessing wth their judgements made in rnaking accounting estimates are indicative of a potential bas. and evaluatlng the business ratlonale of any significant transactions that a￿ unusual or outsidè the normal ¢our5e of business. We also communicated relevant laws and regulations and potential fraud risks to all engagement team members, including Internal specialises and remained alert to any indication5 of fraud or r￿n-COmPLiance with law5 and regulations throughout the audit. Page 9 Re rt of the Inde ndent Audltors to the Trustees of Hereford Munici al Charities A further de5CriPtion of our responslbilities for the audit of the financial statements Is located on the Finan¢Tal Reportlng Coun¢ll's web51te at www.frc.org.uklaudltorsre5pon5ibilitie5. This description form5 part of our Report of the Independent Auditors. Use of our report This ￿tA)rt is made solely to the charity's trustees, a5 a boty, in accordance with Part 4 of the Charftles (Accounts and Reportsl Reguiatlons 2(NJ8. Our audlt work has been undertaken so that we might State to the charitls trustees those rnatters we are required to state to them In an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charlty and the charitys trustees as a body, for our audit work, for this report, or for the opinions we have forrned. AOQ￿k_ Thome Wi¢Jgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Hereford5hire HR4 7BS Date: Pale 10 Hereford Munlcl I Charftles Statement of Financial Actiwties for the Year Ended 31 December 2024 31.12.24 Total funds 31.12.23 Total funds Unrestrfcted fund Restrlcted funds Endowment fun¢J Notes INCOME AND ENDOWMENTS FROM Charftable actlvltles Almshouses 325,740 325.740 298,197 Investment Incc#me Other income 126,287 300 126,287 300 139,105 3.154 Total 452,327 452,327 440,456 EXPENDITURE ON Ratsing funds 4.345 4,345 3,871 Charltable actlvltl•s Almshouses Eleemosynary p￿nticIng and educational 258.628 2,728 790 258,628 2,n8 79) 234,560 2,829 2,624 Total 266,491 266,491 243,884 Net galns on Investments 49,680 72.577 122,257 346,021 NET INCOME 235,516 72,577 308.093 542,593 RECONCILIATION OF FUNDS Total funds brought forward 1,874,702 485,524 5,435.592 7,795,818 7.253,225 TOTAL FUNDS CARRIED FORWARD 2,110.218 485,524 5,508.169 8,103,911 7,795,818 CONTINUING OPERATIONS All Income and expenditure has arisen from continuing activities. The notes form part of these financial statements Page 11 Hereford Munlcl al Charftles Balance Sheet 31 December 2024 31.12.24 Total funds 31.12.23 Total funds Unrertrirtèd fund Restricted funds Endowment fund Notes FIXED Assrrs Tangible assets Investments Investments Investment pmperty 7CKJ,000 480.932 671,758 1,852.69) 1,152.69) 10 11 3,516,411 1,320,OthJ 3,516,411 1,320,C¥J) 3,443,834 1,320,CÉ¥) 7(KI,OLK) 480,932 5,508.169 6,689.101 5.916,524 CURRENT ASSETS Debtors Inve5trDents Cash at bank and In hand 12 13 103,941 1,022,426 306,634 103,941 1,022,426 311,226 68,494 972,747 866,420 4,592 1,433,(￿1 4,592 1,437,593 1,gJ7,661 CREDITORS Amounts falling due within one year 14 122,783 122,7831 128,3671 Nrf CURRENT ASSETS 1,410,218 4,592 1,414,810 1,879,294 TOTAL ASSEfs LESS CURRENT LIABILITIES 2,110,218 485,524 5,508,169 8,103.911 7,795.818 2,110,218 485,524 5,508,169 8,103,911 7,795,818 FUNDS Unre5tri¢ted funds Restricted funds Endowment funds 15 2,110,218 485,524 5,508,169 1,874,702 485,524 5,435,592 TOTAL FUNDS 8,103.911 7,795,818 The financial statements We￿ approved by the Board of Trustees and authorlsed for Issue and were signed on it5 behalf by: P Andr The notes form part of these flnancial statements Page 12 Hereford Munlcl I Charitles Notes to the Financial Staternent5 for the Year Ended 31 December 2024 ACCOUNTING POLICIES Basls of preparin8 the financial Statements The financial statements of the charity, which is a public benefit entlty under FRS 102, have been prepared in accordance with the Charltles SORP IFRS 1021 'Accountln8 and Reporting by Charities: Statement of Recommended Practice appl>cable to charities preparing their accounts In accordance with the Financlal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffectlve 1 January 20191,, Finantial Reportin8 Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Charities Act 2011. The financial statements haye been prepared under the hlstorfcal cost convention, with the exception of Investments which are included at market value, a5 modified by the aluation of certain asset5. Goln8 Concern The tru5tee5 a55ess whether the use of going concern Is appropriate i.e. whether there are any material uncertalntles ￿lated to event5 or conditions that may cast significant doubt on the ablllty of the company to continue as a going concern. The trustees make this assessrnent in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the company has adequate resources to contlnue In operatlonal existence for the foreseeable future and there are no material uncertainties about the charlty's ability to tontinue a5 a 8oing concern. thus they continue to adopt the golng concern basis of accounting in p￿paring the financial Statements. Income All income Is recognised in the Statement of Financial Activities once the charlty has entitlement to the funds, it is probable that the Income will be received and the amount can be measured reliably. Expendltur• Liabilities are recognlsed as expenditure as Soon as there is a le8al or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economlc benefits wll bè required in settlement and the amount of the obligatlon can be measured reliably. Expenditure is accounted for on an accruals basis and has been classlfled under heading5 that aggregate all cost related to the category. Where costs cannot be directly attrib￿ed to particular headings they have been allocated to activitye5 on a basTrs consistent with the use of resources. Grants offered subject to condition5 whlch have not been met at the year end date are noted as a commltment but ntst accrued a5 expenditure. Allocatlon and apportlonmÈnt of costs Supwrt cost5 are allwated to the charitable actlvltles on the follovAng basls: Aim5houses 93% Eleemosynary 5% Apprenticing and educational 1% Tangiblo fixed assets Almthouses, which are inalienable, are Included In the balance sheet at a valuation made in 1972 at the time of the establishment of the cha￿tY Commlsslon Scheme. Almshouses bullt slnce the 1972 5cherne are included at cost. and are not depreclated. Freehold property Is not depreciated, as it 15 considered that the remaining useful economlc Ilfe of the property Is of such a length that any depreciation charge would be Immaterial. All expendItU￿ of repair, improvement or enhancement of freehold propertles Is wtfjtten off in the year in whlch it is incurred. Investment property The Farm property is stated at the professional valuation of Sunderiands & Thompsons LLP, Charte￿d Surveyors. ThSs was revalued at 18 August 20Z1. The property Is valued every 7 year5 or when the trustee5 deem there to be a material change in its value. Page 13 contlnued... Herefor¢J Munlcl I Charltles Notes to the Flnanclal Statements - contlnued for the Year Ended 31 Detember 2024 ACCOUNTING POLICIES- contlnuèd Taxatlon The charity is exempt from tax on its charltable actlvltles. Fund accountln8 Unrestrlcted fund5 can be used in accordance ￿th the charitable objectlves at the discretion of the trustees. Restdcted funds can only be used for partlcvlar ￿$trfcted putposes ￿￿thIn the objects of the chadty. Restrittions arise when specified by the donor or when funds are raised for particular restricted purposes. Endowment funds exist In the forni of tanglble flxed assets and Investments. Pen5i0n costs and other p05t-retlrernent benèfits The charity operates a deflned contrlbutlon penslon scheme. Contrlbutlons payable to the charltys penslon scheme are charged to the Statement of Ffnanclal Attlvltles In the pemod to whlch they relate. Flxed assèt and current Investments Investments are stated at market value as at the balance sheet date. The statement of financial activities Includes the net galns and losses arfslng on revaluatlon and disposals throughout the year. Galns aftd losses All gains and losses are taken to the Statement of Flnancial Actlvltles as they artse. Realised gains and losses on investments are calculated as the dlfference between sales proceeds and opening market value Ipurchase date if iaterl. Unreali5ed gains and 1055e5 are calculated a5 the difference between the market value at the year end and opening mar*et value lor purchase date If later). Reallsed and unreallsed galns are not separated in the Statement of Financial Activities. Debtors Trade and other debtors are recognlsed at the settlement amount due after any dlscounts offered. Prepayments are valued at the amounts prepaid net of any dlscounts due. Cash and bank and In hand Cash at bank and cash in hand includes tash and short term highly liquid investments ￿th a short matLbrity of three month5 or less from the date of acqui51tion or openlng of the deposlt or slmllar account. Creditors and provisions Cred?tors and proVi￿OnS are recognised where the chamty has a present obllgatlon resultlng from a past event that will probably result In the transfer of funds to a thlrd party and the amount due to setile the obllgatlon can be measured or estlmated ￿LIablY. Credltors and provisions are normally recognlsed at thelr settlement arnount after aliwng for any discounts due. INVESTMENT INCOME 31.12.24 Total funds 31.12.23 Total fund5 Unrestricted funds Restricted funds Endowment furlds Rents received Dividends and interest 17.111 109,176 17,111 121,994 109,176 126,287 126,287 139,105 Page 14 contlnued... He￿f0rd Munici al Charitie5 Notes to the Flnancial Statements - continued for the Year Ended 31 Decemter 2024 GRANTS PAYABLE 31.12.24 31.12.23 ALmshou5es Eleem05ynary Apprenticing and educational 5.991 2,815 900 2,080 5,991 5.795 SUPPORT COSTS Governance cost5 Other Tota15 Almshouses Eleemosynary Apprenticing and educational 37,686 2,QK)3 501 10,619 725 289 48,305 2,728 40,190 11,633 51,823 AUDITORS. REMUNERATION 31.12.24 31.12.23 Fees payable to the Charit￿s audltors for the audlt of the charfty's flnanclal statements 6,421 5,183 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees. remuneration or other ￿nefitS for the year ended 31 December 2024 nor for the year ended 31 December 2023. Trustees. exp•ns•s During the year ended 31 December 2024, exF¢nses totallin8 to C257 We￿ reimbursed to 4 Trustees 12023.. £nlll. STAFF COSTS 31.12.24 31.12.23 Wage5 and salarles Other pension costs 28,261 5,456 21,821 2,486 33,717 24,307 ment Remuneration The key management ￿rsOnneL of the charity is considered to be the trustees and the Chlef Executlve Officer. The total amount Of employee benefits lincluding employer penslon contributions) ￿Ceived by key management personnel for their services to the char5ty was £17.06012023: £13,850). The average monthly number of employees durlng the year was as follow5.' 31.12.24 31.12.23 Administrative staff Page 15 continued... Hereford Munlcl I Charftles Note5 to the Financial Staternents continued for the Year Ended 31 Decenber 2024 srAFF COSTS . contlnued No employees recelved emolLtments In excess of £60,1￿. COMPARATNES FOR THE STATEMENT OF FINANCIAL ACTPIITIES Unrestricted fund Restricted funds Endowment fund Total funds INCOME AND ENDOWMENTS FROM Charltabl• actlvltles Almshouses 298,197 298.197 Investment income Other income 139,105 3,154 139.105 3,154 Total 440,456 440,456 EXPENDITURE ON Ralsing funds 3.871 3,871 Charttable actlv5tle5 Almshouses Eleernosynary Apprentlclng and educational 234,560 2,829 2,624 234,560 2,829 2,624 Total 243,884 243.884 Net gains on Investments 94,646 251,375 346,021 Nrr INCOME 291,218 251,375 542.593 RECONCIUATION OF FUNDS Total fund5 brought forward 1,583.484 485.524 5,184,217 7.253,225 TOTAL FUNDS CARRIED FORWARD 1,874,702 485,524 5,435,592 7,795,818 TANGIBLE FIXED ASSErs Housing Assoclatlon Property Almshouse Property Long leasehold Totats COST At 1 January 2024 Addltlons 480,932 671,758 1.152,6W) 7￿,0c(l 7(X),000 At 31 December 2024 480,932 671,758 1,852.61KI BOOKVALUE At 31 December 2024 480,932 671.758 7¢X),O(X) 1,852,61KI At 31 December 2023 480,932 671,758 1.152,690 Page 16 cOntlnL￿d... He￿f0rd Munld al Charfties Notes to the Finantial Statements - contlnued for the Year Ended 31 December 2024 TANGIBLE FIXED ASSEfs . contlnued Included in cost or valuation of land and buildings 15 freehoLd Land of £1,852,69012023 £1,152,69)I which is not depreciated. Pmperty has been valued based on the 1972 valuatlons at the tlme of the establlshment of the charfjty Commission xheme, Subsequent purchases have been valued at C05t. 10. FIXED ASSEf INVESTMENTS Llsted Investments AIARKET VALUE At 1 January 2024 Revaluations 3,443,834 72,577 At 31 December 2024 3,516,411 BOOK VALUE At 31 December 2024 3.516,411 At 31 December 2023 3 JA3 834 There were no Investment assets 0￿$7￿e the UK. 31.12.24 31.12.23 TOTAL INVEsfMENT IN SHARES Market value at 1 Jan 2024 Addltlon at cost Dlsposal at book value Net unrealised galnslllossesl 4,416,581 4,120,560 {50,0001 346,021 122 257 Market value at 31 Dec 2024 4 538 838 4 416 581 31.12.24 31.12.23 SHARE INVEsfMEi¥fs SPUT BY FUND Endowment General Deslgnated 3,516,412 862,260 3,443,834 824,178 4 538 838 4 416 581 The investnEnt fund comprises both fixed asset Investments and current asset Investments. Page 17 contlnued... Hereford Munlcl al Charftles Note5 to the Financial Statement5 - continued for the Year Ended 31 December 2024 Cost or valuation at 31 December 2024 is represented by: Llsted investment5 Valuatlon in 2024 Cost 1.865,926 3 516 411 INVESTMENT PROPERTY FAIR VALUE At 1 January 2024 and 31 December 2024 1,320,rD) BOOK VALUE At 31 December 2024 1,320,(m At 31 DeCert￿r 2023 The inve5trnent property con515ting of land and buildings ha5 not teen depreciated in the year. 12. DEBTORS: AIAOUNTS FALLING DUE W￿H1N ONE YEAR 31.12.24 31.12.Z3 Other debtors ExFen5e recoyerable Prepayment5 and accft￿d income 5,553 51,706 2.219 21,610 68,494 13. CURRENT ASSET INVESTMENTS 31.12.24 31.12.23 Llsted Investments 1,022,426 972,747 Page 18 contin4Ed... Hereford Municl al Charftie5 Notes to the Financial Statements - continued lor the Year Ended 31 December 2024 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.24 31.12.23 Taxation and s(Kial security Other creditor5 1,415 21,368 934 27,433 22,783 28.367 15. MOVEMENT IN FUNDS Net movement In funds At 31.12.24 At 1.1.24 Unrestricted funds Unrestricte¢J Almshouse fund Designated Extraordinary repalr fund Designated Eleemosynary fund Designated William Brydqes fund Designated Apprenticing and Educatlonal fund Designated Herbert Gelder fund 1,617,212 143,055 93,526 3,816 202,732 11,473 18,461 37 1,819,944 154,528 111,987 3.853 14,506 2,587 1,988 825 16.494 3,412 1,874,702 235,516 2,110,218 Restricted funds Fixed Asset Almshouse fund Muriel Fiide5' fund 480,932 4,592 480,932 4,592 485,524 485.524 Endowrnent fund5 Endowment fund 5,435,592 n,577 5,508,169 TOTAL FUNDS 7,795.818 308,093 8,103,911 Net movement in funds, included In the aLx)ve are as follows: Incomlng resources Resources expended Galns and Losses Movement in funds Unr•stricted funds Unrestricted Almshouse fund Desi£nated Extraordinary repair fund Designated Eleemosynary fund Designated William Brydges fund Designated App￿nticing and Educational fund Designated Herbert Gelder fund 427,623 1262,9731 38,082 11,4T3 202,732 11,473 18,461 37 21,189 37 12,n81 2,653 825 17WI 125 1,988 825 452,327 1266,4911 49,680 235,516 Endowment funds Endowment fund 72,577 n,577 TOTAL FUNDS 452,327 1266,4911 122,257 308,093 Page 19 contlnued... Hereford Munlcl al Charftles Notes to the Financial Statements - continued for the Year Ertded 31 tkcember 2024 MOVEMENT IN FUNDS- contlnued Comparatives for movement In funds Net movement In funds At1.1.23 31.12.23 Unr•rtrlcted fund5 Unrestricted Almshouse fund Designated Extraordinary repair fund Designated Eleemosynary fund Designated William Brydges fund Designated App￿ntIcIng and Educational fund Designated Hertr*rt 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 14,506 2,587 1,583,484 291.218 1.874.702 Re5trkted funds Fixed Asset Almshouse fund Muriel F7lde5' fund 480,932 4,592 480,932 4,592 485,524 485,524 Endowment funds Endowment fund 5.184,217 251,375 5,435,59Z TOTAL FUNDS 7.253,225 542,593 7,795,818 Comparatlve net movement in funds. included In the above are as follow5: Incoming re30urces Resources expended Galns and losses hlovement in funds Unrestrbcted fund$ Unrestricted Alm5hou5e fund Designated Extraordinary repalr fund Designated Eleem05ynary fund Designated Wllllam Brydge5 fund Designated Apprenticlng and Educational fund Designated Herbert Gelder fund 416,203 1238,4311 85,820 ,362 263,592 8,362 17,975 38 20,804 38 12,8291 2,602 809 12,6241 442 809 440,456 1243,8841 94,646 291,218 Endowrnent funds Endowrnent fund 251,375 251,375 TOTAL FUNDS 440,456 1243.8841 346,021 542,593 Unrestricted Funds Unrestricted Almshouse fund IAlmshouse Branch) the provision of low cost soclal houslng to the residents of the City of Hereford. Deslgnated Extraordinary Repalrs fund IAlmshouse Branch) the p￿slon of extraordlnary repairs, irnprovements or rebuilding the Almshouses and other property belonglng to the Almshouse branch. Page 20 continued... He￿f0rd Munlcl al Charfjtles Note5 to the Financial Statements- contlnued for Year Ended 31 December 2024 15. MOVEMENT IN FUNDS- continued Deslgnated Eleemosynary fund IEleemosynary Branchl - to provide rellef of poverty through the provlslon of grants to needy people In the Clty of Hereford for essential household goods and Items. Designated William 8rydges fund (Eleemosynary Branch) to be applied in educating and tranln8 and relieving poverty and sicknes5 among persons resident in the City of Hereford. Designated Apprenticing and Educational f4tnd (Apprenticing and Educational Branchl - to be applied for the benefit of chIld￿n or young persons who are residents in the City of Hereford and who are in need of flnancial assistance. Designated Herbert Gelder Charity fund - for the beneflt of the resl¢Jents of the Almshouse branch and the rellef of F*)or old per￿n$ resldent In the city of Hereford either in gifts in kind or grants of money. Restricted Fund5 Fixed asset Almshouse fund . the value of the housing aS￿latiOn hou5e5. Murlel Flldes. ftlnd the legacy which has been provided for the purpose of fostering and promotln8 muslcal education and the kno￿edse and appreciation of muslc In the Clty of Hereford. Endowment funds are made up of the value of the Almshouses, the farm investment property and fixed asset investments. 16. RELATED PARTY D5SCLOSURES He￿f0rd Municipal Charities carries out the administration of the Millar Charity Fund (Charity No: 5143811 and the Tudor Campion Fund Icharfty No: 10359fX)l. both charitie5 share common trustees with the Hereford Munlclpal Charity. Certain direct costs relating to these charities are char4ed by Hereford Munitipal Charities and in addition an appropriate share of admlnlstratlve costs Is also bome by these connected charities. The Millar Charity Fund During the year expenditure of £24.481 12023.. £17,4761 was ￿harged to the Millar Charity. At the year end £41.95712023: £17,476) was due frorn the charity. The Tudor Campion Fund Durfng the year expEnditure of C5,61512023: £4,1331 was recharged to the Tudor Campion Fund. At the year end £9,74912023'. C4,1331 was due frorn the charity. FRC ETHICAL ¥fANDARD- PROVISIONS AVAILABLE FOR SMALL ENTITIES In common wfth many other buslnesses of our size and nature we use our auditors to prepare and submit retums to the tax authorities and asslst wlth the preparation of the financial statements. Page 21 Hereford Munlci I Charities Detalled Statement of Financial ￿tivitIeS for the Year Ended 31 December 2024 31.12.24 31.12.23 INCOME AND ENDOWIAENTS Investment Income Rents ￿CeIVed Dlvidends and interest 17,111 109,176 17,111 121,994 126,287 139,105 Charltable activftles Almshouse Tncome 325,740 298,197 Other income Mlscelianeou5 incc*ne 300 3,154 Total Incomlng resources 452,327 440,456 EXPENDITURE Ra151n8 don)￿on5 and legades Farm related expen5e5 4,345 3,871 Charltable activltles Repairs and maintenance Grounds malntenance Lighting Alami system and mobile warden Good neighbour Water Insurance Chaplaln and chapel expenses Subscription5 and TV licence Residents, tenefit5 Grants to Indlvlduals 141,323 13,819 1,481 8,571 7,IXJ8 10,768 9,606 4,123 1,891 5,742 5.991 128,227 6,952 779 7,805 8,765 10,974 8.733 1,317 2,189 3,340 5.795 2fO,323 184.876 Support costs Other Wage5 Penslons Telephone Stationery Postage Offlce expenses 28,261 5,456 789 296 409 4,979 21,821 2,486 7Z9 734 430 8,370 40,190 34,570 Govwnanc• costs Audltors rernuneration Carrled forward 6,421 6,421 5,183 5,183 Thi5 page dees not fomi part of the Statutory financial statements Page 22 Hereford Munici L Charitie5 Detailed Statement of Financial Actlvitles for the Year Ended 31 December 2024 31.12.24 31.12.23 Governance costs Brought forward Legal and professfjonal fees 6,421 5,Z12 5.183 15,384 11,633 20,567 Total resources expended 266,491 243,884 Net irKome 185,836 196,572 Thls page does not form part of the statutory financial statements Page 23