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2023-01-31-accounts

THE GRACEWELL FOSTER TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 January 2023 (Registered Charity Number 218796)

THOMAS AND YOUNG LIMITED CHARTERED ACCOUNTANTS/REGISTERED AUDITORS SOLIHULL

THE GRACEWELL FOSTER TRUST YEAR ENDED 31 JANUARY 2023

CONTENTS
PAGE
Trustees’ report 1 – 4
Auditors’ report 5 - 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 17

THE GRACEWELL FOSTER TRUST TRUSTEES’ REPORT YEAR ENDED 31 JANUARY 2023

The Trustees present their report and the audited financial statements of the Trust for the year ended 31 January 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ in preparing the annual report and financial statements of the Trust.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

REFERENCE AND ADMINISTRATIVE DETAILS

Gracewell Homes Foster Trust (“the Trust”) was founded by the Will of Arthur Henry Foster, which was proved on 3 January 1929. The change of name to The Gracewell Foster Trust was registered with the Charity Commissioner on 20 September 2012. The Trust is a registered Trust, no. 218796, and is regulated by a Scheme of the Charity Commissioners sealed on 11 April 1978.

The Trust is affiliated to The Almshouse Association.

TRUSTEES

The Trustees who served during the year and since the year end were as follows:

Mr I Marshall (Chairman) Miss D Mattison Mr E Rodgers Mrs N Pozzi Mr G Wardle (deceased 12/08/2022) Mrs M Bowles Ms L Fryer

EXECUTIVE OFFICER AND PRINCIPAL OFFICE

The Executive Officer is J Galvin

The principal office is:

271 Wake Green Road Moseley Birmingham B13 9XL

ADVISORS DURING THE PERIOD

Auditors: Thomas and Young Limited Carlton House 266-268 Stratford Road Shirley Solihull West Midlands B90 3AD Bankers: HSBC Bank PLC

THE GRACEWELL FOSTER TRUST TRUSTEES’ REPORT (continued) YEAR ENDED 31 JANUARY 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The day-to-day management of the Trust is carried out by a small staff based at its principal office. The Trustees meet at least six times each year when they consider overall strategy, property and investment matters, risk management, finances and all matters relating to the efficient management of the Trust. Various sub-committees, which report to the Trustees, operate to improve the smooth management of the Trust.

Under the terms of the Scheme referred to above, there shall be a maximum of ten trustees all being co-optative. Prior to the appointment of trustees, they are given a full and detailed outline of the Trust, its objectives and its activities, and the policies which are adopted to ensure the sound performance of the Trust.

The principal objective of the Trust is to ensure the well-being and happiness of all the ladies who are accommodated in the Trust’s properties.

The Chairman and other Trustees visit the Trust Office regularly to meet with the Executive Officer and the Scheme Managers to ensure that they are aware of the day to day activities of the Trust.

OBJECTIVES AND ACTIVITIES

The object of the Trust is to provide Almshouse accommodation for single ladies who are over the age of 55 years and of limited financial means.

There are 62 self-contained sheltered housing units in total, comprising 16 bungalows and 12 flats in category 1 and 34 flats (Fosters) in category 2.

In setting their objectives, the Trustees have given careful consideration to the Charity Commission’s general advice on public benefit.

The Trust employs a full time Warden/Scheme Manager who, with the aid of a deputy part-time Warden/Scheme Manager and one other part-time employee ensures that the needs of the residents are met, and a congenial environment provided. The Trust also employs a part-time Executive Officer. Maintenance of the fabric of the estate and gardens and grounds is undertaken to a high standard by independent contractors. The Trustees consider themselves fortunate in having such a dedicated team in charge of the day-to-day running of the homes and in the quality of the services provided by their contractors.

The Trust is principally resourced by the weekly maintenance contributions from the residents. In order to finance extraordinary repairs, routine maintenance and cyclical maintenance repairs the Trust transfers The Almshouse Association’s recommended amounts into designated reserves.

ACHIEVEMENTS AND PERFORMANCE

The Trust maintains a reasonable level of voids, with properties mainly being void during periods of refurbishment or redecoration following a beneficiary leaving her home. It is the policy of the Trustees that, when older properties are vacated, full refurbishment takes place prior to being occupied by a new beneficiary. This naturally takes longer than a simple redecoration. The newer properties are redecorated and undergo a full overhaul prior to re letting. This way the Trust maintains the high quality and high standard of the properties for occupation by its beneficiaries.

The Trust is not involved in fund-raising activities; however, we do apply, from time-to-time, to grant giving charities for assistance with specific projects. Generally, these relate to refurbishment of properties.

The Trustees meet the residents on a regular basis during the year to help satisfy the Trust’s objectives of ensuring their needs are met and a congenial environment provided. The Chairman arranges an annual meeting with all the residents to discuss any concerns that they or the Trustees may have.

THE GRACEWELL FOSTER TRUST TRUSTEES’ REPORT (continued) YEAR ENDED 31 JANUARY 2023

FINANCIAL REVIEW

The Financial Statements show a surplus for the year, before the revaluation of investments, of £20,655 (2022: deficit £44,983) and the accumulated fund balance at 31 January 2023 was £1,594,398.

The Trust received donations of £2,800 (2022: £8,512) during the year.

The Trustees confirm that investments held by the Trust which are stated at market value, have been acquired in accordance with the powers available to the Trustees. These investments have been reviewed during the year. The Trustees consider that the funds can meet the Trust’s obligations.

INVESTMENT POLICY

It is the policy of the Trustees to seek to achieve a balanced return between income and capital over the long term.

The market value of investments held at 31 January 2023 was £1,072,005. Movements in the stock market during the year have resulted in a decrease of £3,191 to the cumulative unrealised gains at 31 January 2023.

RESERVES

It is the policy of the Trustees to keep Free Reserves at a level that would meet between 3 and 6 months’ expenditure of the Trust. Based on the 2022/23 accounts the band would be £103,000 to £206,222.

At 31 January 2023 unrestricted revenue reserves amounted to £417,891 and balances in the cyclical maintenance and extraordinary repair funds are £29,904 and £757,305 respectively.

At present the Free Reserves amount to £419,229, which is the above the target level.

PLANS FOR THE FUTURE

The Trust plans to continue its policy of improving its properties as and when the opportunities arise. The Trust also aims to achieve as near 100% occupation of its properties as possible and maintain a waiting list of suitable candidates.

Various items of expenditure are being considered, or are necessary, for the 2023/24 budget.

FUNDS HELD AS CUSTODIAN TRUSTEE

The Trust does not act as a Custodian Trustee and therefore no such assets are held.

RISK MANAGEMENT

The Trustees have examined the principal strategic and operational risks which the Trust faces and confirm that systems have been established to minimise these risks. The Trustees review these procedures regularly to ensure that they still meet the Trust’s needs.

TRUSTEES’ RESPONSIBILITIES STATEMENT

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 and Wales requires the Trustees to prepare Financial Statements for each financial year, which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing those Financial Statements, the Trustees are required to:

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the Financial Statements comply with the Charities Act 2011 and the provision of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE GRACEWELL FOSTER TRUST TRUSTEES’ REPORT (continued) YEAR ENDED 31 JANUARY 2023

DISCLOSURE OF INFORMATION TO THE AUDITORS

We, the Trustees of the Trust who held office at the date of approval of these Financial Statements as set out above, each confirm, so far as we are aware, that:

AUDITORS

A resolution proposing that Thomas and Young Limited be re-appointed as auditors of the Trust will be put to the Annual General Meeting.

Approved by the Trustees and signed on their behalf.

) ) TRUSTEES )

Date:

THE GRACEWELL FOSTER TRUST INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES YEAR ENDED 31 JANUARY 2023

We have audited the financial statements of The Gracewell Foster Trust for the year ended 31 January 2023, which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE GRACEWELL FOSTER TRUST INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES (continued) YEAR ENDED 31 JANUARY 2023

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

THE GRACEWELL FOSTER TRUST INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES (continued) YEAR ENDED 31 JANUARY 2023

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Thomas & Young Limited Statutory Auditor

Date:

Carleton House 266-268 Stratford Road Shirley Solihull West Midlands B90 3AD

Thomas & Young Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE GRACEWELL FOSTER TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 JANUARY 2023

Statement of Financial Activities

Total Total
Unrestricted Restricted Designated Endowment
Funds		 Funds
Funds Funds Funds Funds
2023		 2022
£ £ £ £ £ £
Note
Income and endowments
from:
Donations and legacies 2 2,800 - - - 2,800 8,512
Investment income 3 4,921 - - - 4,921 2,659
Income from Charitable
activities 4 333,959 - - 23,778 357,737 356,291
Total income and endowments 341,680 - - 23,778 365,458 367,462
Expenditure on:
Charitable activities 5 200,692 - 115,602 28,509 344,803 412,445
Total expenditure 200,692 - 115,602 28,509 344,803 412,445

Net income/(expenditure)
before gains on investments 140,988 - (115,602) (4,731) 20,655 (44,983)
Net (loss)/gain on investments - (369) (185) (2,637) (3,191)
140,903
Net income/(expenditure) 140,988 (369) (115,787) (7,368) 17,464 95,920
Transfers between Funds (130,221) - 130,221 - - -
Net movement of funds 10,767 (369) 14,434 (7,368) 17,464 95,920
Reconciliation of funds
Total funds at 31 January 2022 407,124 33,850 774,113 361,847 1,576,934 1,481,014
Total funds at 31 January 2023 417,891 33,481 788,547 354,479 1,594,398 1,576,934

All activities relate to continuing operations.

THE GRACEWELL FOSTER TRUST BALANCE SHEET AS AT 31 JANUARY 2023

2023 2022
£ £ £ £
Note
Fixed assets
Tangible Fixed Assets 10 874,634 909,319
Investments at Market Value 11 1,072,005 1,075,196
1,946,639 1,984,515
Current Assets
Debtors 12 8,470 7,774
Cash at bank and in hand 200,721 169,674
209,191 177,448
Creditors
Amounts falling due within one year 13 (70,570) (69,258)
Net Current Assets 138,621 108,190
Total Assets Less Current Liabilities 2,085,260 2,092,705
Creditors
Amounts falling due in more than one year 14 (490,862) (515,771)
Net Assets 1,594,398 1,576,934
Funds
Unrestricted funds
General fund 15 417,891 407,124
Designated funds 15 788,547 774,113
Restricted funds 15 33,481 33,850
Endowment funds 15 354,479 361,847
1,594,398 1,576,934

Approved by the Board of Trustees on …………………………… and signed on their behalf by

) ) TRUSTEES

)

The notes on pages 10 to 17 form part of these accounts.

~~-~~

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JANUARY 2023

1 ACCOUNTING POLICIES

Charity Information

The Gracewell Foster Trust is a registered Charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are detailed on page 2.

1.1 Accounting convention

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The accounts are prepared in sterling, which is the functional currency. The Monetary amounts in these statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below:-

1.2 Going concern

At the time of approving the accounts, they have a reasonable expectation that they have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in the furtherance of their charitable objectives.

Restricted funds are required to be retained and accumulated until the year 2028.

Designated funds are set aside to be used on projects and cyclical maintenance of the properties at the discretion of the trustees.

Endowment funds are expendable at the discretion of the trustees.

The purposes and uses of the funds are set out in the notes to the accounts.

1.4 Incoming resources

Contributions from residents, investment income and donations and legacies are accounted for in the period in which the charity is entitled to receipt.

1.5 Resources expended

Expenditure is accounted for on an accruals basis gross of VAT. Support costs comprise those costs directly attributable to the servicing and administering of the charitable activities. Other costs are those costs attributable to carrying out the charitable activities. Where costs cannot be directly attributable to either of these two sources, 90% of the costs are allocated to service and 10% to management costs.

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 JANUARY 2023

1 ACCOUNTING POLICIES (continued)

1.6 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost, less residual value, of each asset on a systematic basis over its expected useful life as follows:

Housing properties - 2% straight line

Fixtures, fittings & equipment - 15% straight line (fixtures etc) and 33.33% straight line (computer equipment)

1.7 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

1.8 Grants received

Where a grant is received to reduce the cost of a property it is shown as a deduction to its cost on the balance sheet.

1.9 Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit is estimated and compared to the carrying amount. Where the carrying amount exceeds the recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried forward at a revalued amount where the impairment loss is a revaluation decrease.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments and original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, they are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of or in the period of the revision and future periods where the revision affects both current and future periods.

2 DONATIONS AND LEGACIES

2023 2022
£ £
Other 2,800 8,512
2,800 8,512

Income from donations and legacies was £2,800 (2022: £8,512) of which £nil (2022: £nil) was attributable to restricted funds.

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 JANUARY 2023

3 INVESTMENT INCOME

2023 2022
£ £
Dividends - equities 3,087 2,442
Interest – fixed income securities 1,631 14
Interest – deposits 203 203
4,921 2,659

Income from investments was £4,921 (2022: £2,659) of which £4,921 (2022: £2,659) was attributable to unrestricted funds.

4 INCOME FROM CHARITABLE ACTIVITIES

2023 2022
£ £
Contribution from Residents:
Maintenance contributions 262,991 266,481
Service charges:
- Home help service 4,685 4,347
- Heating 56,926 48,901
- Alarm 8,942 8,614
Visitors room 415 45
Social Housing Grant released 23,778 23,778
Furlough income - 4,125
357,737 356,291

Income from charitable activities was £357,737 (2022: £356,291) of which £333,959 (2022: £332,513) was attributable to unrestricted funds and £23,778 (2022 £23,778) was attributable to the endowment fund.

5 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Activities undertaken Support
directly costs Total
£ £ £
Accommodation for Residents 244,598 100,205 344,803

£28,509 (2022: £28,509) of the above costs were attributable to endowment funds. £115,602 (2022: £146,382) of the above costs were attributable to designated funds. £200,692 (2022: £237,554) of the above costs were attributable to unrestricted funds.

6 ALLOCATION OF SUPPORT COSTS

Charitable
Activities Total
£ £
Governance 28,383 26,133
Finance 15,449 15,554
Depreciation 38,050 37,620
Office costs 16,637 14,723
Other 1,686 1,550
100,205 95,580

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENT (continued) YEAR ENDED 31 JANUARY 2023

7 GOVERNANCE COSTS

Audit Fee
Legal and professional fees
Executive Officer’s salaries and secretarial services
Pension contributions
8
COSTS OF ACTIVITIES UNDERTAKEN DIRECTLY
Salaries
Cyclical maintenance
Extraordinary repairs
Garden maintenance
Day to day maintenance
Heating costs
Rates
Residents functions and outings
Professional fees
Alarm system maintenance
9
EMPLOYEES AND TRUSTEES


Wages and salaries
Social security costs
Pension contribution
Total emoluments		 2023
£
6,900
0
20,739
744
28,383
2023
£
41,010
56,574
34,587
19,899
24,442
44,066
7,596
4,069
4,287
8,168
244,598
2023
£
61,652
-
841
62,493		 2022
£
6,000
0
19,709
425
26,134
2022
£
43,424
134,646
11,736
21,080
34,815
52,076
6,951
1,234
5,176
5,728
316,866
2022

£
62,973
-
584
63,557

No employee received emoluments of £60,000 or more. The Trustees received no remuneration during the year (2022: £nil). Expenses amounting to £2,593 was reimbursed to one Trustee for charitable expenses during the year (2022: £220).

The average number of employees was 4 (2022: 4). Calculated on a full time equivalent basis, analysed by function, was:

NUMBER
NUMBER
Direct Charitable Expenditure 3
3
Management and Administration of Charity 1
1
4
4

All staff are employed by the Charity

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENT (continued) YEAR ENDED 31 JANUARY 2023

10
TANGIBLE FIXED ASSETS
Freehold
Fixtures
Housing
Fittings &
Properties
Equipment
£
£
Cost or valuation
At 31 January 2022
1,776,411
165,934

Additions
-
3,364
Disposals
-
-
At 31 January 2023
1,776,411
169,298
Depreciation
At 31 January 2022
893,674
139,352
Charge for the year
28,509
9,540
Depreciation on disposal
-
-
At 31 January 2023
922,183
148,892
Net book value
At 31 January 2023
854,228
20,406
At 31 January 2022
882,737
26,582		 Total
£
1,942,345
3,364
-

1,945,709
1,033,026
38,049
-
1,071,075
874,634
909,319

Up to and including the year ended 23 January 2000, it was the Trust’s policy to revalue certain of the freehold properties. In the year ended 23 January 2001 the Trust adopted the transitional provisions of FRS15 Tangible Fixed Assets. Whilst previous valuations have been retained they have not been updated. From year ended 23 January 2001 it is the Trust’s policy not to revalue fixed assets.

The cost of depreciable assets held with non-depreciable assets amounts to £1,425,434 (2023: £1,425,434).

The properties are now valued for insurance purposes at £10,553,333 (2022: £9,659,798).

In the opinion of the Trustees, the present open market value of the housing properties, with vacant possession, is greatly in excess of their net book value.

11 INVESTMENTS

Market value at 31 January 2022
Net unrealised investment (loss)/gain
Market value as at 31 January 2023
Historical cost as at 31 January 2023

UK listed investments are represented by:
Investment and unit trusts		 2023
2022
£
£
1,075,196
934,293
(3,191)
140,903
1,072,005
1,075,196
168,435
168,435
1,072,005
1,075,196

The analysis of investments held, between funds, is shown in note 15 of these accounts.

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENT (continued) YEAR ENDED 31 JANUARY 2023

11 INVESTMENTS (continued)


The following investment represents more than 5% of the Portfolio valuation:
Charnico Acc Shares
Charities official investment fund
Charishare Acc shares
Schroder investment charity fund
Reconciliation of Movement in Unrealised Gains on Investment Assets

Unrealised gains at 31 January 2022
Net deficit arising on revaluations for the period
Unrealised gains at 31 January 2023
12
DEBTORS

Other debtors
Prepayments and accrued income

13
CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

Other taxation and social security
Pension contributions
Other creditors and accruals
Deferred grant income
14
CREDITORS: AMOUNTS DUE AFTER MORE THAN ONE YEAR

Loan
Deferred grant income		 Market Value
2023
2022
£
£
145,375
166,768
274,764
277,789
270,873
256,814
278,110
267,935
£
906,761
(3,191)
903,570
2023
2022
£
£
611
1,003
7,859
6,771
8,470
7,774
2023
2022
£
£
-
-
299
217
46,493
45,263
23,778
23,778
70,570
69,258
2023
2022
£
£
157,974
159,103
332,888
356,666
490,862
515,769

The loan which is secured on the title deeds of the development at Foster’s is repayable by half yearly annuities of £8,307, which will redeem the loan and interest at 9¾% per annum on 31 March 2050.

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENT (continued) YEAR ENDED 31 JANUARY 2023

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

General Restricted Designated Endowment Total
Fund Fund
Funds		 Fund Funds
£ £
£		 £ £
Tangible fixed assets 20,406 -
-		 854,228 874,634
Investments - 33,481
969,121		 69,403 1,072,005
Current Assets 439,086 -
(180,574)
(49,321)
209,191
Current liabilities (41,601)
-
-		 (28,969)
(70,570)
Long term liabilities - -
-		 (490,862)
(490,862)
417,891 33,481
788,547		 354,479 1,594,398

16 FUNDS

FUNDS
At Revaluation At
31 January Incoming Outgoing of 31 January
2022 Resources Resources Transfers investments 2023
£ £ £ £ £ £
UNRESTRICTED FUNDS
General fund 407,124 341,680 (200,692) (130,221)
-		 417,891
DESIGNATED FUNDS
- Extraordinary repairs reserve 745,598 - (22,695) 34,587 (185) 757,305
- Cyclical maintenance reserve 26,807 - (53,477) 56,574 - 29,904
- Routine maintenance reserve 1,708 - (39,430) 39,060 - 1,338
774,113 - (115,602) 130,221 (185) 788,547
RESTRICTED FUND
Sinking fund 33,850 - - - (369) 33,481
ENDOWMENT FUND
-Expendable 361,847 23,778 (28,509) - (2,637) 354,479
TOTAL 1,576,934 365,458 (344,803) - (3,191)
1,594,398

Unrestricted funds comprise those funds which the trustees are free to use in accordance charitable objects.

Restricted funds – Sinking Fund. The sinking fund represents the holding of 147 accumulation shares in the Charities Official Investment Fund. This is required to be retained and accumulated until the year 2028 to replace the capital value realised by the sale of an orchard in 1968.

Cyclical maintenance reserve represents amounts set aside for future cyclical maintenance.

Extraordinary repairs reserve and routine maintenance reserve. The Charity Commission sanctioned the establishment of the extraordinary repairs reserve in 1978. The transfer has been based on the level recommended by the Almshouse Association and approved by the Charity Commission.

The Endowment Fund represents the original gift to the Charity by Arthur Henry Foster and subsequent gifts to fund capital projects arising since the formation. The Endowment Fund is expendable at the discretion of the trustees. However, as it is mainly represented by the fixed assets held for charitable use, there is no intention of converting any of this fund into income.

THE GRACEWELL FOSTER TRUST NOTES TO THE FINANCIAL STATEMENT (continued) YEAR ENDED 31 JANUARY 2023

17 HOUSING CORPORATION GRANT

The Housing Corporation Grant is repayable under certain circumstances, primarily following the sale of a property but will normally be restricted to net proceeds of sale.

18 CAPITAL COMMITMENTS

Capital expenditure contracted for but not provided for in the financial statements, was £nil (2022: £NIL).

19 AUDITORS’ ETHICAL STANDARDS

In common with many businesses of our size and nature we use our auditors to assist with the preparation of the financial statements.

20 CONTINGENT LIABILITY

The trustees have made Birmingham City Council aware of a potential overpayment of housing benefit from the Council. At the date of approval of these financial statements, it has not been possible to confirm either the amount of any potential overpayment or whether any housing benefit will need to be repaid to them.