Charity registration number 220392 

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Company registration number 00738023 (England and Wales) 

ELM TREES RETIREMENT LIVING LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 



ELM TREES RETIREMENT LIVING LIMITED 

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## LEGAL AND ADMINISTRATIVE INFORMATION 

|a|a|a|
|---|---|---|
|ExecutiveCommittee|MrsC Rodwell|(Appointed 17 November2021)|
||Mr J West||
||Ms E Burns||
||Mrs S Love||
||Mrs J Giles||
||MrAWhyton|(Appointed 22April2022)|
|Charity number|220392||
|Company number|00738023||
|Regulatorof Social Housing|HO374||
|Number|||
|Registered office|50 St Edwards Road||
||Southsea||
||Hampshire||
||POS 3DJ||
|Auditor|Leonard Gold CharteredAccountants<br>24 Landport Terrace||
||Portsmouth||
||Hampshire||
||England||
||PO12RG||



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ELM TREES RETIREMENT LIVING LIMITED 

## CONTENTS 


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|Executive|Committee|report|1-4|
|Independent|auditor's|report|5-7|
|Statement|of financial|activities|8-9|
|Balance|sheet|10-11|
|Notes|to the|financial|statements|12-22|

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ELM TREES RETIREMENT LIVING LIMITED EXECUTIVE COMMITTEE REPORT (INCLUDING DIRECTORS’ REPORT) : FOR THE YEAR ENDED 31 DECEMBER 2021 aI The Executive Committee of Elm Trees Retirement Living Limited present their annual report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note one to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019). Objectives and activities The objectives of the Charity are set out in the Mission Statement. These include the provision and management of properties, amenities and services which support independent living for those aged 55 and over. 

The Charity shall have the power to do all the things necessary, or expedient, for the fulfilment of its objectives. 

The Executive Committee have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and performance In November 2021, Ms C Rodwell was elected onto the Committee, and subsequently elected as Chairperson. She has considerable relevant experience, having previously been a Committee Memberofthe charity and is also currently a Chairperson of another similar charity. Ms Rodwell has bought a renewed professionalism and energy to the Committee. investment Peformance Under the Memorandum and Articles of Association, the Charity has the power to make any investments that the Executive Committee sees fit. Financial review The Board continues to review the management and operation of the Charity and its properties and have implemented changes where necessary for the residents we are responsible for. 

Covid-19 restrictions were placed on all the houses as of 23 March 2020 and priority was given to the welfare of residents and reduced effort was placed on strategic issues such as future planning. Covid arrangements have continued in line with the Government guidelines. The recruitment of new residents has continued, however, there was, understandably, a noticeable reduction in the number of applications as a result of the Covid 19 concerns. The Executive Committee with the energetic support of the General Manager have introduced revised advertising methods which are now showing an improvement in the situation and a number of new residents have signed up to move in since January 2022. 

Financially, the result of the reduction in resident numbers and the cost of Covid related PPE has been difficult. However, a rigorous review of expenditure has started to show improvements. 

In November 2018, a replacement contractor was appointed to construct Myfanwy House, after Herbert H Drew, the original contractor was placed into administration. The inclement weather in the Autumn of 2019, delayed completion of the work until early 2020,when the site had to be closed down in early March due to Covid restrictions. The new house was completed and handed over to the Charity in August 2020 and residents moved into their new home in September. The Charity submitted a claim to the liquidators for the additional costs incurred, together with loss of rent caused by their failure, and delays to the contract. The claim against the liquidators continues. A previous Committee member who had been handling these arrangements has now retired and Mr J West has taken over the interface role and believes the Charity now have a more realistic view of the situation. The Committee still await the liquidators report which was due May/June 2021. There has been some progress with regard to another Drew Holdings’ developments which it is hoped will move forward to sales allowing them to pay off at least some part of our claim. The Charity continues to review the properties in its ownership, and the liability to both attract new residents, and to remain viable. : The Committee wish to place on record their thanks to all our staff for the magnificent work over and above their normal duties to operate our Houses during the Covid-19 outbreak, and maintaining our high standards of care for our residents. 

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## Draft Financial Statements at 08 September 2022 at 15:35:59 ELM TREES RETIREMENT LIVING LIMITED EXECUTIVE COMMITTEE REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 ee Future Plans The Executive Committee are committed to the longevity of the Charity. Accordingly, they have recently adopted a Strategic Plan and an Action Plan to enable the Charity to regain financial accountability for the Charity’s future viability and continue to provide supported sheltered housing to as many elderly persons as needed within our local community. 

To achieve this aim, a plan to sell one of our properties has been taken to allow us to reduce over overhead expenditure, repay one of our bank loans early, and reduce some labour and maintenance costs to one property. Practical cost-cutting exercises have been undertaken across all our properties, which have proven effective. 

We have received considerable help with our plans from our bankers, Lioyds. Agreed payment holidays to our loans have given us time to adjust and review our financial situation. We anticipate that this support from Lloyds will continue whilst we dispose of one property, after that for three months, or until we become more cash fluid. We appreciate this support. 

We feel that the plans outlined in our Strategic Plan will be effective. The very nature of our business activity relies on attracting residents. Whilst we continue to advertise and seek to increase our occupancy rate, our only income stream, we do see post the Covid-19 pandemic an increase in enquiries from local people to become residents. 

The Executive Committee have considered all options to them, we have received professional help and advice from Accountants and business consultants and are confident that our actions will bring Elm Trees Retirement Living Limited back into profitability in the foreseeable future. 

## Risk Management 

The Executive Committee has conducted its own review of the major risks to which the society is exposed and systems have been established to mitigate those risks. Internal risks are minimized by the implementation of procedures for authorisation of all transactions. These procedures are periodically reviewed to ensure that they still meet the needs of the charity. Structure, governance and management Elm Trees Retirement Living Limited is a company limited by guarantee, having no share capital, governed by its Memorandum and Articles of Association. The company was incorporated on 17 October 1962. It registered as a charity on 5 December 1963 with the Charity Commission. Itis also registered with the Regulator of Social Housing. In the event of the company being wound up members are required to contribute an amount not exceeding £1. 

The Executive Committee, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: 

Mrs C Rodwell (Appointed 17 November 2021) Mr J West Ms E Burns Mrs S Love Mr J Giles MrA Whyton (Appointed 22 April 2022) Mr T Biddle (Resigned 14 January 2022) 

Recruitment and appointment of new committee members Anomination for election as an ordinary member of the Executive Committee may be put forward a) by the Executive Committee b) if accompanied by a signed statement from the nominee that he/she is willing to act as such, by at least two members of the Society who are entitled to vote. 

The Executive Committee, which can have between three and eighteen members, administers the Charity. The Committee have appointed a General manager to manage the day to day operations of the Charity under the supervision of the Executive Committee. The Committee have delegated authority of operational matters to the administration staff. 

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## ELM TREES RETIREMENT LIVING LIMITED : EXECUTIVE COMMITTEE REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 I 

Induction and tralning of new committee members 

New committee members undergo an orientation period to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making and processes and the recent financial performance of the charity. During the induction period they meet key employees and other committee members. Committee members are encouraged to attend appropriate external training events where these facilitate the undertaking of the role. 

## Public Benefit 

The Executive Committee regularly monitor and review the success of the organisation in meeting its key objectives. The Executive Committee have considered the Charity Commission's guidance on public benefit and are satisfied that the charity's aims, and its activities carried out in pursuit of those aims, are for the public benefit. A proportion of our residents receive state funding to assist with their fees. The Executive Committee believe that they have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission. 

Statement of Executive Committee responsibillties The Executive Committee, who are also the directors of Elm Trees Retirement Living Limited for the purpose of company law, are responsible for preparing the Executive Committee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company Law requires the Executive Committee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. 

In preparing these financial statements, the Executive Committee are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. 

The Executive Committee are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Auditor In accordance with the company's articles, a resolution proposing that Leonard Gold Chartered Accountants be reappointed as auditor of the company will be put at a General Meeting. 

Statement as to Disclosure to our Auditors 

So far as the Executive Committee are aware: 

- . there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware; and 

- . the committee members, having made enquiries of fellow committee members and the auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a committee member in order to make themselves aware of any audit information and to establish that the auditor are aware of that information. 

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## ELM TREES RETIREMENT LIVING LIMITED 

EXECUTIVE COMMITTEE REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 

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The Executive Committee report was approved by the Board of Executive Committee.<br>its C Redwe .<br>Committee Member<br>**----- End of picture text -----**<br>


Date: d6. dQDIEMN ELK 202 

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## ELM TREES RETIREMENT LIVING LIMITED 

## INDEPENDENT AUDITOR'S REPORT 

## TO THE EXECUTIVE COMMITTEE OF ELM TREES RETIREMENT LIVING LIMITED 

## Opinion 

We have audited the financial statements of Elm Trees Retirement Living Limited (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including 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). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources 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 with the requirements of the Companies Act 2006, schedule 1 to the Housing Act 2004 and the Accounting Requirements for Registered Social Landlords General Determination 2015 and the Charities Statement of Recommended Practice (FRS102). 

## 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. 

## Material uncertainty related to going concern 

We draw attention to Note 22 in the financial statements, which indicates that the charity incurred a net deficit of £51,285 during the year ended 31 December 2021, and as that date, the charity’s current liabilities exceeded its current assets by £124,674. As stated in Note 22 and the Future Plans section of the Executive Committee Report, this situation, along with other matters set forth in Note 22 indicate that a material uncertainty exists that may cast significant doubt on the Charity’s ability to continue as a going concern. 

## Our opinion is not modified in respect if this matter. 

In auditing the financial statements, we have concluded the Executive Committees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Our responsibilities and the responsibilities of the Executive Committee with respect to going concern are described in the relevant sections of this report. 

## Other information 

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The executive committee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves, !f, 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. 

Opinion on other matters prescribed by the Companies Act 2006 

In our opinion, based on the work undertaken in the course of the audit: 

- « the information given in the executive committees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- - the directors’ report included with the executive committees’ report has been prepared in accordance with applicable legal requirements. 

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## ELM TREES RETIREMENT LIVING LIMITED 

## INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE EXECUTIVE COMMITTEE OF ELM TREES RETIREMENT LIVING LIMITED 

## Matters on which we are required to report by exception 

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the executive committees’ report. 

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: 

- the information given in the financial statements is inconsistent in any material respect with the Executive Committee report; or 

- sufficient accounting records have not been kept; or 

- - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. 

## Responsibilities of Executive Committee 

As explained more fully in the statement of executive committees' responsibilities, the executive committee members, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the executive committee 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 executive committee are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Executive Committee either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## Auditor's responsibilities for the audit of the financial statements 

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. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. 

## Identifying potential risks related to irregularities 

- We obtained an understanding of the laws and regulations that are applicable to the charitable company and determined those which could reasonably be expected: 

- « To have a direct effect on the determination of material amounts and disclosures in the financial statements. We determined that the most significant were the Companies Act 2006 and the Charities Statement of Recommended Practice (FRS102); and 

« To not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or avoid a material penalty. 

- We determined that the most significant were health and safety, and employment law. 

~ We enquired to management as to their own assessment of risks in relation to fraud and irregularities and the internal controls they may have in place to mitigate the risks of fraud or non-compliance with laws and regulations; 

- We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statements (including the risk of override of controls). Also, evaluated if there is an increased risk of fraud arising due to the potential impact of Covid-19 on the activities of the charitable company and the reporting thereon. 

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## ELM TREES RETIREMENT LIVING LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE EXECUTIVE COMMITTEE OF ELM TREES RETIREMENT LIVING LIMITED 

## Audit approach to risks identified 

~ We reviewed how the company is complying with laws and regulations by making enquiries to management and senior employees. This was corroborated by review of correspondence received from regulatory bodies; 

- We reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with the Companies Act 2006 and accounting standards; 

- We enquired to management conceming any actual or potential litigation and claims; 

- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud or non compliance; 

- We enquired whether management had any knowledge of any actual, 

suspected, or alleged fraud; 

~ We tested the appropriateness ofjournal entries and other adjustments to assess whether the judgements made in making accounting estimates are indicative of a potential bias. This included assessing the business rational of any significant transactions that are unusual or outside the normal course of business; 

- We communicated the risks identified and the audit approach to be taken, to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above. 

The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as these may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 

A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 

## Use of our report 

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 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

## focriard Gerd forJulie andWatts on behalf of(Senior Statutory Leonard GoldAuditor) Chartered Accountants 

## Lb.. Foote bev 2028 

## Chartered Accountants 

24 Landport Terrace Portsmouth Hampshire England PO1 2RG 

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## ELM TREES RETIREMENT LIVING LIMITED 

## STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 

## a 

|Current financial year||Unrestricted|Endowment|Total|Total|
|---|---|---|---|---|---|
|||funds|funds|||
|||2021|2021|2021|2020|
||Notes|£|£|£|£|
|Income and endowments from:||||||
|Donations and legacies<br>Charitable activities|3<br>4|-<br>447,549|-<br>-|-<br>447,549|20,208<br>402,321|
|Investments<br>Otherincome|5<br>6|3<br>-|-<br>-|3<br>-|27<br>8,740|
|Total income||447,552|-|447 ,552|431,296|
|Expenditure on:<br>Charitable activities|7|498,837|-|498,837|516,415|
|Net outgoing resources||(51,285)|-|(51,285)|(85,119)|
|Other recognised gains and losses<br>Revaluation oftangiblefixed assets||41,397|725,000|766,397|-|
|Netmovement infunds||(9,888)|725,000|715,112|(85,119)|
|Fund balances at4January 2021||2,402,922|1,009,697|3,412,619|3,497,738|
|Fundbalancesat31December2021||2,393,034|1,734,697|4,127,731|3,412,619|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

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## ELM TREES RETIREMENT LIVING LIMITED 

## STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 

## PTOO 

## Prior financlal year 


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|||||||||
|---|---|---|---|---|---|---|---|
|Unrestricted|Endowment|Total|
|funds|funds|
|2020|2020|2020|
|Notes|£|£|£|
|Income|and|endowments|from:|
|Donations|and|legacies|3|20,208|-|20,208|
|Charitable|activities|4|402,321|-|402,321|
|Investments|5|27|-|27|
|Other income|6|8,740|-|8,740|
|Total|income|431,296|-|431,296|
|Expenditure|on:|
|Charitable|activities|7|516,415|-|516,415|
|Net outgoing|resources|(85,119)|-|(85,119)|
|Other|recognised|galns|and|losses|
|Revaluation|of tangible|fixed|assets|-|-|-|
|Net movement|in funds|(85,119)|-|(85,119)|
|Fund|balances|at|1|January 2020|2,488,041|1,009,697|3,497,738|
|Fund|balances|at 31|December|2020|2,402,922|1,009,697|3,412,619|

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## ELM TREES RETIREMENT LIVING LIMITED 

## BALANCE SHEET 

## AS AT 31 DECEMBER 2021 

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|AS AT 31AT 3131 DECEMBER 2021|AS AT 31AT 3131 DECEMBER 2021|AS AT 31AT 3131 DECEMBER 2021|AS AT 31AT 3131 DECEMBER 2021|AS AT 31AT 3131 DECEMBER 2021|AS AT 31AT 3131 DECEMBER 2021|
|---|---|---|---|---|---|
|a||||||
||||2021||2020|
||Notes|£|£|£|£|
|Fixed assets||||||
|Tangible assets|11||5,628,005||4,856,860|
|Current assets||||||
|Stocks||753||753||
|Debtors<br>Cash at bank and in hand|12|4,689<br>6,486||7,722<br>57,488||
|||11,928||65,963||
|Creditors: amounts failing duewithin<br>oneyear|14|(136,602)||(137,982)||
|Net current liabilities|||(124,674)||(72,019)|
|Total assets less current liabilities|||5,503,331||4,784,841|
|Creditors: amounts falling due after<br>more than one year|15||(1,375,600)||(1,372,222)|
|Netassets|||4,127,731||3,412,619|
|Capital funds||||||
|Endowment funds||||||
|Property equity funds||124,217||124,217||
|Revaluation reserve||1,610,480||885,480||
||16||1,734,697||4,009,697|
|Income funds||||||
|Unrestricted funds||||||
|General unrestricted funds|17|1,250,299||1,301,584||
|Revaluation reserve||1,142,735||4,101,338||
||||2,393,034||2,402,922|
||||4,127,731||3,412,619|



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ELM TREES RETIREMENT LIVING LIMITED 

AS AT 31 DECEMBER 2021 

BALANCE SHEET (CONTINUED) 

i 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 


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The financial staters@nts were approved by the Executive Committee on bo RE peSOE<br>Ty wy [Z] {f 4<br>Rodwéll Mr J West<br>Committee Member Committee Member<br>**----- End of picture text -----**<br>


Company registration number 00738023 

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ELM TREES RETIREMENT LIVING LIMITED 

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## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 

## ey 

- 1 Accounting policies 

## Charity information 

Elm Trees Retirement Living Limited is a company limited by guarantee, registered in England and Wales. Itis also a registered Charity and registered with the Regulator of Social Housing. The Society's registration numbers and registered office can be found in the Legal and Administration section of these financial statements. 

- 1.1. Accounting convention 

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 (FRS 102)" (effective 1 January 2019), the Statement of Recommended Practice: Accounting by Registered Social Landlords 2010 and with the Accounting Requirements for Registered Social Landlords General Determination 2015. 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. 

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. 

The principal accounting policies adopted are set out below. 

1.2 Charitable funds Unrestricted funds are available for use at the discretion of the Executive Committee in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. 

- 1.3 Income 

Income from charitable activities represents rental income and is recognised on a receivable basis. 

Voluntary income including donations and legacies that are of a general nature are recognised where there is entitiement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when: 

- + The donor specifies that the donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement. 

Investment income is recognised on a receivable basis. 

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## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

## C—O 1 Accounting policies (Continued) 

1.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes the cost of running the charity's properties and their associated support costs. 

Other expenditure represents those items falling in the above category. 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure is incurred. 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance and governance costs. 

- 1.5 Tangible fixed assets The charity's freehold property is revalued annually in line with the requirements of FRS102. 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: 

Freehold property No depreciation Fixtures and fittings 10-100% on cost depending on the assets expected life 

The gain or loss arising on the disposal! of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. Freehold property - the charity has a policy of upgrading its properties to a standard that would increase the properties residual value, so that a depreciation charge is inappropriate. 

Social Housing Grants - where developments have been financed wholly of partly by housing association grants the cost of these developments has been reduced by the grant received. Whilst SHG has been treated as a grant it is repayable under certain circumstances, primarily following the sale of a property. 

1.6 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1.7 Stocks Stocks are stated at the lower of cost and net realisable value, after making due allowances for obsolete and slow-moving items. 1.8 Cash and cash equivalents Cash and cash equivalents includes cash and short term liquid investments with a short maturity ofthree months or less from the date of acquisition or opening of the deposit or similar accounts. 

TO -13- 



; 

. 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 

## a 1Accounting policies (Continued) 

1.9 Financial instruments The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 

Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. !f not, they are presented as non-current liabilities. Trade creditors are recognised initially at ttansaction price and subsequently measured at amortised cost using the effective interest method. 

- 1.10 Taxation The charity is exempt from corporation tax on its charitable activities. 

- 4.11 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

1.12 Retirement benefits Payments to defined contribution retirement benefit schemes are charged to the Statement of Financial Activities in the period to which they relate. 


**----- Start of picture text -----**<br>
,<br>**----- End of picture text -----**<br>


1.13 Fund Accounting Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the executive committee have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's activities. The Permanent Endowment Fund is restricted and represents the property known as Jane Gilllitt in Southsea which is occupied by the charity. The charity is entitled to the income but the property is owned by The Jane Gillitt Home Trust, a uniting direction dated 23 March 2005 is in place. 

SS -14- 



. 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 

## a 

## 2 Critical accounting estimates and judgements 

In the application of the charity’s accounting policies, the Executive Committee 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 the revision and future periods where the revision affects both current and future periods. 

## 3 Donations and legacies 

, 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Total|Unrestricted|
|funds|
|general|
|2021|2020|
|£|£|
|Donations and|gifts|-|20,208|
|4|Charitable|activities|
|Charitable|Charitable|
|Income|Income|
|2021|2020|
|£|£|
|Charitable|rental|income|447,549|402,321|

**----- End of picture text -----**<br>


5 Investments 


**----- Start of picture text -----**<br>
|||||
|---|---|---|---|
|Unrestricted|Unrestricted|
|funds|funds|
|general|general|
|2021|2020|
|£|£|
|Interest|receivable|3|27|

**----- End of picture text -----**<br>


a -15- 



. 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

## aa 

; 

|6|Other income|||
|---|---|---|---|
|||Total|Unrestricted|
||||funds|
||||general|
|||2021|2020|
|||£|£|
||Netgain ondisposalof tangible fixed assets<br>Other income|-<br>-|1,000<br>7,740|
|||-|8,740|
|7|Charitableactivities|||



||Charitable|Charitable|
|---|---|---|
||Expenditure Expenditure||
||2021|2020|
||£|£|
|Staffcosts<br>Depreciation andimpairment<br>Food and householdexpenses<br>Rates<br>Light, heatandwater<br>Motorexpenses (lease, insuranceand tax)<br>Insurance<br>Telephone<br>Officeaccountant<br>Repairs|219,510<br>4,537<br>39,250<br>11,713<br>42,063<br>6,187<br>11,791<br>6,741<br>7,199<br>64,702|218,767<br>26,383<br>37,587<br>11,190<br>38,206<br>4,828<br>41,290<br>6,904<br>7,474<br>62,325|
|Postage, stationery andadvertising|11,894|18,804|
|Executive committee mileage<br>Professional fees<br>Computerexpenses<br>Bankloan interest<br>Myfanwy security costs<br>Sundryexpenses|149<br>-<br>2,829<br>51,009<br>-<br>5,924|1,709<br>8,775<br>3,515<br>46,565<br>5,208<br>1,563|
||485,495|511,093|
|Share ofgovernancecosts (see note 8)|13,342|5,322|
||498837|516,415|



aCTT -16- 



ELM TREES RETIREMENT LIVING LIMITED 

. 

. 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

a 

|8|Support costs|Support Governance<br>costs<br>costs<br>£<br>£|Support Governance<br>costs<br>costs<br>£<br>£|2021<br>£|Support Governance<br>costs<br>costs<br>£<br>£|Support Governance<br>costs<br>costs<br>£<br>£|2020<br>£|
|---|---|---|---|---|---|---|---|
||Auditfees|-|6,760|6,760|-|6,594|6,594|
||Legal and professional<br>Bankcharges<br>Affiliation fees|-<br>-<br>-|5,542<br>1,040<br>-|5,542<br>1,040<br>-|-<br>-<br>-|-<br>1,008<br>(2,280)|-<br>1,008<br>(2,280)|
|||-|13,342|13,342|-|5,322|§,322|
||Analysed between<br>Charitable activities|-|13,342|13,342|-|5,322|5,322|
|||,||||||
|9|Executive Committee|||||||
||None ofthe Executive Committee (orany||persons connected with them)||receivedany remuneration orbenefits|||
||from the charity during the|year.||||||
||Expenseswere reimbursed toa committee memberof£149|||formileage.|(2020 : £1,709).|||
|10|Employees|||||||
||Theaveragemonthlynumberofemployees duringtheyearwas:|||||2021|2020|
|||||||Number|Number|
|||||||12|13|
||Employmentcosts|||||2021<br>£|2020<br>£|
||Wages and salaries<br>Social security costs<br>Otherpension costs|||||204,174<br>12,007<br>3,329|205,343<br>10,567<br>2,857|
|||||||219,510|218,767|



There were no employees whose annual remuneration was more than £60,000. 

a -17- 



. 

; 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 

## a 

|11.|Tangible fixed assets|Freehold|Fixtures and|Total|
|---|---|---|---|---|
|||property|fittings||
|||£|£|£|
||Cost or valuation<br>At 1 January 2021<br>Additions<br>Grants received|5,124,420<br>9,183<br>(293,167)|126,096<br>104<br>(2,370)|5,250,516<br>9,287<br>(295,537)|
||Revaluation|766,397|-|766,397|
||At 31 December2021|5,606,833|123,830|5,730,663|
||Depreciation and impairment<br>At 1 January 2021<br>Depreciation charged intheyear|-<br>-|98,121<br>4,537|98,121<br>4,537|
||At 31 December2021|-|102,658|102,658|
||Carrying amount<br>At 31 December2021|5,606,833|21,172|5,628,005|
||At31December2020|4,828,883|27,977|4,856,860|



The properties were revalued during January 2018 by independent valuers Savills on a market value basis. The Executive Committee have carried out a review of this earlier valuation and have now updated the valuations within these financial statements to reflect what they believe to be are current market values of the properties within their portfolio, The historical cost of the properties if they were not revalued is £295,015. 

|12|Debtors|2021|2020|
|---|---|---|---|
||Amounts falling duewithinoneyear:|£|£|
||Tradedebtors<br>Otherdebtors<br>Prepayments and accrued income|3,342<br>-<br>1,347|846<br>4,662<br>2,214|
|||4,689|7,722|



## SS 

~18- 



, 

; 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

## TTI 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|43|Loans and|overdrafts|2021|2020|
|£|£|
|Bank|overdrafts|21,027|-|
|Bank|loans|1,456,518|1,425,000|
|1,477,545|1,425,000|
|Payable within one year|101,945|52,778|
|Payable after one year|1,375,600|1,372,222|
|Amounts|included|above which|fall|due|after five years:|
|Payable by instalments|(1,051,930)|(1,055,556)|

**----- End of picture text -----**<br>


; 

The balances above represents two separate loans all of which are repayable by monthly instalments and which are charged at a fixed and variable rate of interest. 

## Secured Debts 

The bank loans are secured against the Charity's four properties, there is also an unlimited fixed and floating charge. 


**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|14|Creditors:|amounts|falling|due within one year|2021|2020|
|Notes|£|£|
|Bank|loans and|overdrafts|13|101,945|52,778|
|Other taxation|and|social|security|6,858|5,775|
|Trade|creditors|15,284|66,734|
|Accruals|and deferred|income|12,515|12,695|
|136,602|137,982|
|45|Creditors: amounts|falling due after more than one year|2021|2020|
|Notes|£|£|
|Bank|loans|13|1,375,600|4,372,222|

**----- End of picture text -----**<br>


TTa 

-19- 



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ELM TREES RETIREMENT LIVING LIMITED 

, 

. 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

## a 

## 17 Designated funds 

Revaluation Reserve The revaluation reserve is required by the Companies Act 2006 and represents the amount by which the Charity's properties exceed their historical cost. 

|||||Movement<br>In funds||Movement<br>in funds||
|---|---|---|---|---|---|---|---|
||||Balance at<br>1 January 2020|Incoming<br>resources!|Balance at<br> January 2021|Revaluation|Balance at<br>31 December<br>2021|
||||£|£|£|£|£|
||Revaluation Reserve||1,101,338|-|1,101,338|41,397|1,142,735|
||||1,101,338|-|1,101,338|41,397|1,142,735|
|18|Analysis of net assets between funds<br>Unrestricted||Endowment|Total Unrestricted||Endowment|Total|
|||funds|funds||funds|funds||
|||2021|2021|2021|2020|2020|2020|
|||£|£|£|£|£|£|
||Fund balances at 31|||||||
||December 2021 are|||||||
||represented by:<br>Tangible assets<br>Current assets/(liabilities)<br>Longterm liabilities|3,516,970<br>(124,674)<br>(1,375,600)|1,009,697<br>-<br>-|5,628,005<br>(124,674)<br>(1,375,600)|2,745,825<br>(72,019)<br>(1,372,222)|4,009,697<br>-<br>-|4,856,860<br>(72,019)<br>(1,372,222)|
|||2,016,696|1,009,697|4,127,731|1,301,584|1,009,697|3,412,619|



19 Operating lease commitments At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating !eases, which fall due as follows: 

||2021|2020|
|---|---|---|
||£|£|
|Within one year<br>Between twoand five years|-<br>10,604|4,886<br>-|
||40,604|1,886|



## 20 Capital commitments 

At 31 December 2021 the charity had no capital commitments (2020 : Nil). 

a -21- 



aIT 

. 

## ELM TREES RETIREMENT LIVING LIMITED 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 DECEMBER 2021 

21 ~+Related party transactions 

There were no disclosable related party transactions during the year (2020 - none). 

22 Going Concern 

As discussed within the future plans section of the Executive Committee Report, they have been assessing the future financial viability of the Charity and given the deficit for the year of £51,285 and the net working capital deficit of £124,674 at 31 December 2021 a Strategic Plan and Action Plan has been prepared and submitted to the Charity’s Bankers, Lloyds. The Executive Committee are working with the Bankers in the short term to enable ongoing support to be given whilst the Action Plan is worked through, which it is then hoped will ensure the future of the Charity. 

a -22-