REGISTERED COMPANY NUMBER.. f￿738023 (England and Wal981 REGISTERED CHA[￿Ty NUMBER.. 220392 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR ELM TREES RETIREMENT UVING LIMITED ELM TREES RETIREMENT LMNG LIMITED ¢opirENTS OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 DECEMBER 2023 Page Report of the Truste88 1 to 4 Report of the Independent Audit￿8 5 to 8 Ststsmont ol Flnanetal Aetfivltie8 Balance Sheet 10 Cash Flow Statement 11 Not•s to the Cash Flow Stst*mènt 12 Not89 to the Flnanclal Statements 13 to 23 ELM TREES RETIREMENT LMNG uMrrED REPORT OF THE TRUSTEES FOR THE Y&4R ENDED 31 DECEMBER 2023 Th& trust86s ¥th) are also directors of the tharity for tha purposes ol thè Companies Act 2CM)6, present th¢Yr retX)rt with the finanual statemènts ol thè tharity for the year ended 31 December 2023. The truste@s h8ve adopted the Fxovisions of Accounting and Repor￿n9 by Charities.. Slatem#nt of RÈts)mmended Prath 8wli(stAe to tharibes preparing thèir apAX)unls in ac￿￿anCe the Financial Reportin9 Standard aFf)licaNe in the UK and Republic ol Ireland IFRS 1021 leffecbv¢ 1 January 20191. OBJECTIVES AND ACTMnES Objectives and alms The obiectNes of the Charity are set out in the Mission StatemenL Th95e indude the provision and management of Proporb￿, am¢nili¢5 and servicgs ￿lch supp)rt indeperwjent limng lor those aged 55 and over. The Charity shall have the powerto do all tlings necessary, or expwJK*nt, forthè fU￿1￿ent of its objoctives. The Exevthive Cornrnittee have paid due to regard to guicknce issued by th8 Chanty C￿mm[$s1￿ in deciding what athibes the chanty shwld undertake. AcNevements and Perfomiance Elm T￿S (x)nb"nued to providè a high starKlaré of $8rvio to its residents during the peri￿J desK¥le ever increasiro liwng costs. The Trustees regularty wew the financial situation and were pleased to see an overail Improvemont over the year. A signfficAnt tthi8v8mgnt has bsen thè incrèasè in occupantty levels from a low of 64% in 2022 to the oJtrEnt 9fv%. This healthy pOS￿.0n is expected to cDntinue C￿ improve futher forthe forese¢a￿e futuro. Hawng tsk￿ the decision to Sell Redbridge at the end of 2022 and despite con&derdblo ¢ffort on behalf ol the Trustees and the Estate Agants, the salè has not yét matènalisÈd, undoubtedty because of the current Statè of the market. Although 8 number of what4f s￿narIO$ have been considered the￿ appears to bg litue more that can be done until the market starts to recover. A lurther comrAicAtion was uncovered during the prtscèss. in that a grant from Homes Eftgland was found to be extant on the property whid) was rth regiSt¢r¢d in any olthe extant Elm Trees paperwork. Uoyds bank have remained very supportwe over the last year, prowding 0Trgolng loan 'holidayg and a lèmpor8ry t)verdrafc faalty. Plans are in to rÈdLJt* thè levet of loan support requtred owe R￿lbnduè 18 sold. The dependency on the overdraft has reduced as the ocojpancy rate has improv￿. The daim on HH Drew resulting Irom the¢r Ins0￿enCY during the build of Myfanwy Hou5¢ ha5 rw been setU8d by the Liquidatsr al which resulted in a payment m8de in odober. This has been assimilated intr) the finar￿S and used to build up reserves and update pay arrangements. Public bgngfit The trustses confirm that they have réferred to the guidan￿ eontained in Ihe Charity Commission's gen£Yal guid￿￿ on pU￿1C benefit when revie*ing the chanty's aims objectives and in planning futurè adiiNbèS. The trustees ref&rto public b8nefit U)roughoutthis rèport. Pagè 1 ELM TREES RETIREMENT LMNG UMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW The Statement of Financial Activitiès rèrA)rts nét Èxp￿dFtUrÈ of £53.S70 12022." nel expendI￿re £38,$441 of which £nil12022'. £niD is reslrided net expenditure. At the 31st December 2023 the total unrestricted reseD of the thaTrty stood al £2,3LWJ,820 12Q22.' £2,354,480), endowont funds stood at £1,734.697 (2022: £1,734,e971 and restricted funds of £nil (2022." £nill. Thè Bowd in¢tseased efforts to idènb"fy, and imprcjve ifs financid position.This required Im￿o￿¢d financial reportir4J and modellirvJ eg in budgeting, cashflow etc. Ajthough improvements were made. f( bétAmÈ dèar that thèy were insuffiu"8nt to gLJarantÉé the kng tèm wsbility of the Charity and that the on dy forward wa5 to sell ¢Jne of ifs ass8ts. Lbyds bank were very supportive throughout this difficult perFod. They agre￿ to a monthly overdraft lfyghlly COntr￿led1 2nd te aeeèpt 8 rèpaym8nt 'hdidal on thÉ two loans ltsnly paying inlerestl whith was revi￿1 quarterly. They reque51ed a Strategy and Action plan to be produced which has been wularty rev[e•￿d arvj upyated. This was aso usad to lorm tho basis ofthis Ann￿￿ Rèpo After considering a number of options, a decision to sdl R￿bridg• House was made Nt 16.9.22. However, this sale hÈ$ not yet gone through and wè are hoping that this will be finalised in 2024. Future Plans 11 15 proposed to 12rry out the following actiwities in 2024..- - to continue efforts to improve occupancy levels. -to work wth Uoyds on loan repayment options. -to idenbfy poteth.al options for reducing loans ￿1th the proceeds of the sale of Redbridge House. . Investigate options for the future ol Redbridge - Identsfy options for improving funclng Rlsk Managoment Commltteo The Executtve Committ&8s has conducted its own revi￿ of the maior nsks te whith thè stiaety 13 eysed and systems have been established lo mitigate those risks. Intemal risks a￿ minimized by the implementat¢on of procedures for authorisation of al transactions. Th8sé procÉdurÈs arè periodical reviewed to ensure that trey stil meetlhe needs of the charity. STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng document Elms Trees Retir8menl Lmng Limited is a company limited by guarantee. having no share capital, govemed by rts Plemorandum and ￿tideS of Association. The ctsmpany was irKx>rporaled on 17 Odober 1962. 11 registered as a charity on 5 December 1963 with the Charity commission. ￿ also register8d bmth th8 Regulator of Soual Hou*NJ. In fhe vent of tre company would up rnembers required to o)nlribthe an amount not exceeding £1. Recruftmant and appolntment of n•w eommlttèe memba A nomination for election as an ordinary member olthe Executive Committee may be put forward.. al by the E¥ecutive Committee bl rf wmpanie$ by a signed 3talemenl from the nominee that helshe 15 willing to act as such, by at lea51 o members ofthe society tho are en￿t￿$ to vote. The EXe￿ti¥e Ccfnmitiee, which can have betwew three and eighteen member, adminlstsrs th8 Chanty. Thé ttrnmittee have appointed a General Maneger the day lo operations ol the Charity under tre supervision of the Executive Commrtt* The Cclnmittee have del¢gated authority of op¢rotioTral mattgrs to tre admlnistr8b.on staff. Inductlon and tralnlng ot new tntstees New o)rnmittee members undergo on orientation period lo brief Ihern on the legal Obligatior￿ under tharity and company law, V)e content of the MemorarKlum a)d Arlides of Assouation, the comrnittee and decision makj'ng and P￿￿eSseS and the recent fmancial perfOrnian￿ of the charity. During Ihe induction period they meet key empJoyee8 and other u)mmrttee members. Committee membei are encouraged to attend *• ar4)ropriats extemal trainiryJ evert8 where these knlitate the undertthng ofthe Page 2 ELM TREES REllREMEP￿ UVING UMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 REFERENCE AND ADMINISTRATIVE DETAILS Reglstèr8d Company numbor (K1738023 (England and Wales) Reglstered Chartty number 22Q392 Reglstered office Jane Gillet House 50 St EdwarrJs Rtrad Southsea Portsmouth Hatnp8hiro POS 3DJ Truste Awhyton (resigned 17.7.20231 C Rockntsll Mrs S E Love [r￿gned 12.4.20241 J Wèst Mrs J Giles E Bums Chlef Executlve Audltors Morris c￿Cker ￿MIted Chartered Ac£ountanls ststutory Audrtors stabon House North Street Havant Hampshire P09 1QU STATEMENT OF TRUSTEEg RESPONSIBILrriES The Iw81ees (who are also the directors of Elm T￿e$ Retii¢rnent LNing L1rnit￿ for the PL￿o$e$ ol company lawl aTe responsitle for preparing tha Rèport of thè Trustee$ and the financial statements in accordan￿ wlh appli(2￿• law United lfjngdom Ar￿n1'ng Standards IUnit¢d KirvJdom Generally Ac£epled Accounting Pradcel. Compary law requlres the truslges lo preparè financial staternents for each financial year whith gwe a true 8rKI fair view of thè state of affairs of the CharIta￿e company and (>f the incomirvj resources and application ol resou￿$, indLvJing th¢ incom¢ arKI oxpgndilure. ol the tharitable cnmpany for that ptrri(xl. In preparing thosè finanual statèments, the trustees are wuired to s¢tht suthble 8C4*unting pdicies and then akwly them consistentty." observe the methods prin￿￿¢5 in tho Charty SORP,. make judgements and esb"mates that are reaSona￿e and prudent.. prepare the financial ststemen15 On the going GOn￿M ba618 unless is inappropriate to PtsSLJme tral the tharitsble company ￿11[ ccrtinue in business. Th¢ trus1¢05 are responsitle for keeping proper accounting records whid) discl¢)so vitti reasonable acojracy at any time the financial position of the tharrta￿e company and to enable them to ensure that the finanaal •• ststements corn￿Y wth the c￿MpanieS Aci 2006. They are also rèsponsitle for safeguarding the assets of the tharitable cornpany and hent* for takiThJ reasonoble steps the prevention and detection ol fraLkl and other I[r¢gU￿rItIeS. Pago 3 ELM TREES RETIREmE￿r LMNG LIM￿ED REPORT OF THE TRUSTEES FOR THEYEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEES. REsPONSIBIL￿lEs- continued In so far as th• h￿Stths arè 8war8'. there is Th) rdevant audit infom7ation of wfvch th8 charrtauè C(￿panY'S auditorB are unaware; and the trustees have taken au steps Ihat they ought to have taken to make themsdves aware of any rd•vant audit information and to e81ablish that the auditors are aware of that Informa￿On. AUDITORS The auditors, Morris Croc*er ts'mited, wll be proposed for ￿app)IntM0rt at the forthcorning General Ma8kn"ng. Apkyoved by order olthe board of trusleas on ... signed on its behaf by.. Pag? 4 REPORT OF THE INDEPENDENT AUD￿oRs TO THE MEMBERS OF ELM TREES ￿IREmENT LMNG LIMITED Oplnion We have audited the fmarvial 813tsments of Elm Trees RetI￿rnent Limited (the 'tharitat4e comparyj for the year 6rKled 31 December 2U23 whic* comprise the Stst8ment of Finano81 Activitiès. Ihe Balanc Sheet, tho Cash Fl¢yN Stslement arKJ notes 1¢ the fr)ansial statements, including 8 summary of &gnificant aco)unting pdicies. The financial reporting frarnewort( that has been applied in their preparation is appli￿￿& w 8nd Unrted ￿Tra(k)rn Accounts"ng Stsndards (Unrted lQng(knm Genetally A(x*d Alv￿￿tir¥J Practi￿1. In our opinion the finanoal statements= gNe a true and fair view of the stsle of the tharilaL4e company's affairs as at 31 December 2023 aThJ of rts incoming restsUr￿ and application of r8sotws, Ind￿ling its In￿lM￿ arKI èxpènditur8, for the year then e￿Ied., have b8•n pmp•ty prepared in accudance with United lfjngdom G8n•rally A￿pted Aeeounb"ng Practice., and have been prepared in accordancewth the requirements ofthe Companies Act 2LK)6. Basis for opirtion We conducted our audit in accordan￿ wth rntemal0n￿ Standards on Auditlng (UK) IISAS IUKII and applicable law. (hjr rèsponsibilits"6s uThYer those standards are futher deS￿bed in the Auditors, responsibilknes for the audit of the finawd statements secion of our report. We are independent of charita￿￿ Company in acetsrdanc8 WEth Ihe ethical r•quireménts that 8rÈ relèvant to our audit of the finanual statements ￿ the UK induding the FRC'S Eth￿al Siarvjard, and we have fvlfilled our other ethiL rèsponsibilitiès in accordancè wth th8s8 requiremants. Wa belièvè that thè Audit evidÈnce we have obtained is sufficient and a￿ropriate to provide a basis for our opinion. Conrluslons rglatlng to golng toneern We draN attention to note 24 in the finanual ststements, vthich indicates that Ihe charity incurred a defi(xt of £53.670 during thg year ¢nd¢d 31 De￿[￿ber 2023. and 01 that dale, the charty'8 cjjrrenl liatslilies ex￿eded ts currerrt assets by £202.264. A5 Stated in note 24 and ihe future plans section of Ihe truste&s rewrt th6 srtuats'on. along othei mottetS Set fourth in note 24 indi(3te that a rnaterial uncertrdinty eK5ts that may cast SFgnificant doubt on the c*arity's ability tts continue a8 a going con￿rn. Our opinion is ￿1 modTrled in resFecl of this matter. In auditing the financial staternenls, we have collduded the ExerArtive Cornrnittees, use of the gc¢ng concem basis ol accountiwj in the preparabon of the finanual ststements as appropriate. Oui responsibil￿e$ and the respon￿bIlItieS of the execthwe ￿mmIttee wilh res￿ to going o)ncem ar6 des¢Mbod in tho relevant se(*'ons of this report. othor Informatlon The trustees are responsible for the other lnf0rrnat￿n. The olh8r infonllation comprises the infomiation inthded in the Annual Report, other than the financial ststements atvj our R8port of th8 Indépendènt ALJdilttr8 therec￿. Our opinion on the finawal statements does not cover the other informats'on and. except to the extent otheMse explicty stated in Jjr report. we do not express any form ofassuran¢o cond￿1￿ thèrè￿. In connection wth our aud￿ ol the finanoal statements, our responsitrflity is to r&ad Ihè othar InfoYm8tlon ￿rt. in doirvJ so, consder whether the other information is materially inconsistent wrth the fina￿la] statements or our kn¢)wledge obtsin¢d in the audit or otherwse appears to be Mat￿laIlY misstated. If wè idenl.fy such material in¢on$i8tènties or ApparÈni matèrial mi£ststèmÈn18. WÈ are required to deternina vjhether this gwes ris¢ lo a matsrial misststemgtt in the finanaal statements thomsdves. If, ba￿d Qn the work we have perfamièd, WÈ tondudè that therè is a matèrial rnisststèmènt tsf this other information, we are required to r¢portthat fracL have nothing to rwrt in this rewd. Oplnions on other matters prescribed by the Companie8 Act 2006 In our opinion, bosed on Ihe WQTk undertaken in the c(>urse of the the information given in the Report ol the Trustees for the financ4al year for which the finan&al statements are prepared is consistent with the firnana￿ statements." and the Report of the Trustees has been prepared in acLyJrdance applicable legal requiremen Pagg 5 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ELM TREES RETIREMENT UVING UMITED Matters on which VA #re required to report by gxcepuon In the light of the knovAedge and understanding or thè tharitable company and its enviionm¢nt obtained in the cJ)urse of the audit, we hsve nol iderilified material misstatements in the R¢port of the Trustees. We have nothing to report In ￿SPact of thè follwng matters where the c¢mpanI￿ Act 2006 rewires us to reportto you if. in our 0￿￿10n.. adequate account.ng records have not béen kept or re￿rn$ adequate for QLW audtt have not been re￿Ived from branth05 not visited by us.. or the finanoal statements are not in 8gr88ment wth thè awounling records aThJ retums", or certain disclosure3 of Itustees. remuneration Sp￿lfied by law are not madé,. we have not recewed all the information and explanakn.ons we requiie for our audit". or the trusteÈs wÉré not èntided te take advantage of the small companlos gxtrmpts'¢n from the rewirement to epare a Strat￿•C Re&KJrt or in prep&in9 the R8port ofthè Tru51ee5. Rasponslbllltlès of trust••8 As explained more fully In the Statement of Trusbgs. Responsibilthes, the tNstees (who a￿ also Ihe dwectors ol the chantabla company lar thè purptsaes of company lawl are restM)nsible for the preparation of the nancial stalements and for beiry satisfied that they give a true and fair view, and for such intemal (x)ntrol as the trustees detèrmlnè is n8c85s8ry lo ènable the preparation of finarrial stal¢rNen15 Ihal are free from matÈrial mi8ststernent, whether th to traud or error. In wèparing thè financial ststements, the trustees are responsillg for a85es&ro the charita￿e companws ats"￿ to continue as a goiryj GgnG¢m. disclosing. as aFPliCa￿e, mattels related to going wncem and using th8 goirtg ￿ncerN basis of accounting unless the trustees èrther rntsnd lo liquidate the charitable company or to wse operations, or have no ￿01[$￿.¢ oJl¢tnatsve but to do so. Page 6 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ELM TREES RETIREMENT LIVING Um￿ED Our rgsponslbllltles ft>rthe audt of financlal Statements Our obJ"ethves are to obtain masonabla assur81￿￿ abwl whether the financial statements as a wPKib are free from matorial misstslement whether due to fraud or error, and to Is￿¢ a Report of tha 1ndÉ￿ndènt Auditors that indudes our opinion. Reasonable assurance is a high lèv81 of assuran￿, bul is not a guarantee that an aL￿rt wnduGted in attsrdsnee ISAS (UK) wll always delect a material rnisstslornenl when Il exists. Misstatements can anse from fraud or error and are considered matèrial if. indiwduJly or in the ag9￿gate. they eoukl reaSOna￿Y b6 éxpÉ(tsd to influé￿ the ecorBJmic decisions ol us¢ts tak¢n on Ihg b￿15 of these financial statements. The extent to our pr<)cedures are capatAe of detecting irregularitigs. indu¢*"ng fraud 13 dela'l&l below.. From (thscusson wth managemwrt and those thwged goveman¢e Infomiation 8knut the entity is documented to assess the activity within tha organisab"on. We discuss managemenfs assessment of risk i respecl tsf irtegul8ritie8. fv8ud and going Cor￿￿. 88sed on thèsé discus￿tfis and our asses5rnents we detemiined that the dsk aroas wefft inctrrte recognit'on in respect olcLrt off issues and managemènt ov8nidÈ con¢eming the size of the organisab.orn We set financrdl ststement Thateriality level based on the level of Income. AS a ntst for profit organisation raising ineom8 Is its pn"m8ry focus which is why inttjrne was used to detem)ine the level tsf materiality. Our over811 assessment of risk was used to determine perIomian￿ materiality al an 4)yopriate level. SubstsntNe audrt tests were desigred after assessing and perfoming walkthrouyh tests. The walkthrough testin9 confimied documented systems which havè beèn designed to act as a preventative measure against fraud Énd etror thch appear lo be operating as documented. Subslantiv¢ l¢sling t851ed a sample ol the popuLation, representstive of the populatKin, Ic> idenlw èrror& The testing did not idenlfy any material misststèmènts in areas tèsted. Audrt substantivè tèts cA)nd￿Éd ￿ material errors over the key risk areas of roGognTbon and managementoverride. The audf( cx)nsKlers the organisation is not exposed to mat￿1¥1 risk of error as a result of as6ess(ng laws and regul*¢ns that are apprcpriate to the organls8ti0rn Management ass&ssed trere is no wng ¢On￿rn ris A furth¢r dO￿p￿.9￿ of Ctur responsi￿lI11e& for the audit of the finanaal ststements is located on kne F￿a￿al Rep￿tir@ c￿n￿l'S website at ww.froorg.ukJaudrtorsrèsponsililth¢s. This descripkn'on fomis part of R¢poYt of tho Indopendenl ALvlitor3. Page 7 REPORT OF THE INDEPENDENT AUDITt)RS TO THE MEMBERS OF ELM TREES RETIREMENT UVING UMtTED Us• of our r•port This report is made sdety to the tharitatAe company's members, as a b￿Jy, in accordan￿ wlh Chapter 3 of Part 16 of the Companies Act 2CNX. Our audit work has been undertaken so that we might state to the antablé trlmpany's mémbers thosè mattèrs we are required lo state to them in an auditors, repurt and fcf no other purpose. To the fijllest extent penmitled by law, wo do not accept or assume res￿nsi￿111ty to anyone other than thè eharitaNé company and thè eharitatrAe companls members as a body, foy our aLrdil work, for this reporL or for the O￿niOnS we have form￿1. P UndeMroJ ISenDr Stsbjtory Audilorl for and on behalfofmorris CrockeT ￿rnited Chartered Ar£ountants Statutory Auditors station House North Strèet Havant HaTnpshire P09 1QU Date.. Pagé 8 ELM TREES RETIREhlENT UVING U￿￿ED STATEMENT OF FINANCIAL AcTIV￿lEs IINCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 2023 Tolal 2022 Total fuTrJs Unrestrided Endowm8nt funds fvnd8 INCOME AND ENDOWMENTS FROM Donatiix)s and lega(ies 50 Charitsble activities Shélt6r8d a(Mmodat￿Th foi thÉ aeb.ve dderty 511,998 511,998 484,802 Investr￿rt Inc(Thè 52 52 Total 512,102 512,102 484,855 EXPENDITURE ON Raising fvnds 71,016 71,018 Charltabl8 ac￿VItI8$ Sheltered accomodation for the aclive elderfy 494,756 494,756 523,399 Total 5&5,T12 565,TT2 523,399 NET INCOMEIIEXPENDITUREI 153,e701 153,6701 {38,544} RECONCIUATION OF FUNDS Total fLmds brought forward 2.354,49D 1,734,897 4,089,187 4,127,731 TOTAL FUNDS CARR]ED FORWARD 2,300,820 1,734,697 4,035,517 4.089,187 The notes form part ofthese financial statsments Page 9 ELM TRE&8 RETIREhlENT UVING UMITED BALANCE SHEEr 31 DECEMBER 2023 2023 2022 FIXED ASSETS T￿gibb assets 13 5,527,732 5,629,550 CuRRETr￿ ASSErs Debtors Cash at bab* 14 1,475 21,437 1,431 2,519 22,912 CREDITORS Amounts falling due wilhin tsnè ye¥ 15 1225.1761 1254,362 NET CURRENT ASS￿5 1202,2641 1250,4121 TOTAL ASSETS LESS CLRRENT LIABILITIES 5,325,468 5,379,138 CREDITORS ArnD￿ts fdling due after more than oneyear 16 11,289,951) 11,289.9511 ASSETS 4,035,517 4,089,187 FUNDS Unr8Stn"¢knd funds Endowment ￿ndS 2D 2,￿,820 1,734,697 2,354,490 1.734.e97 TOTAL FUNDS 4,0￿,517 4.089,187 These financial statements have been prepared In aeeordancè wth the provisions 8pplica￿e to charita￿e wtnpani&% subjectto the small companies regime. The ffi 8ncial ststements were approved by the BoBrd of Trustees and authcrfised for issue on . and were signed on it5 behalf by.. C Rodwell. T￿$t￿e J West- Trustee The notes fomi part oflhese fina￿la1 stalements Page1Q ELM TREES RET1REMETr￿ LIVING UMITED CASH FLOW STATEMETrir FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from al stalem Page11 ELM TrEES RETIREME￿ LMNG Um￿ED NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 21)23 RECONCILIATION OF NET EXPENtYruRE TO CASH FLOW FROM OPERATING ACTMTIES 2023 2022 N•t eXpendI￿refOrtho rgportlng pgrlod las pgr tho Statement of Financlal Actlvltles) Adlusth)ents for. Depreaation charges Intèrest received Interest p?id Déwalu8tion ol prlyty Impamenl ofproperty Decr8ase in stod(s Ilncreaselldeuease in debtors ID8crease1lir￿rea$e in creditors 153,870) (38,5441 3.905 {521 88.497 2S,897 71,016 3.939 {3) 64.414 753 3,258 33.188 1441 {15,2211 Net cash provld•d by oporntlons 121.328 67,1)J5 ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 2022 Nots.￿ deposits (less than 3 rnonths Overdrafts in￿ded in bank loans and overK*afts fdlill9 duewilhin one year 21,437 2,519 15.9851 119,9501 Total cash and cash equivalents 15.452 117,4311 ANALYSIS OF CHANGES IN DEBT At 1.1.23 Cash flojw At 31.12.23 Net cash Cash at bank 8ank overdraft 2,519 119.9501 18,918 13,965 21,437 15,9851 117,431} 32,883 15,452 Debts ￿11￿ (fue wthin 1 year Debts I￿ling due after 1 year 1254,3S21 11,289,951) 29,186 1225,178) 11,289,951) 11,544,313) 29,1e6 11.515.127) Total I1,￿1,744} 62,069 11,499,675) The notes fomi part tsfthese frnanoal ststem￿lS Pagè12 ELM TREES RETIREMEKf LMNG UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Charfty Irlomiatlon Elm Tree8 Rètirèm8nt Lniing Limited is a C￿panY limit8d by guarantee, registered in England and Wale& It is also a regl$tè￿d Chartty and registsied the Regulator ol Social Housing. Tha Society's rÈgistration numbers aThJ registered Offi￿ can be found in the Legal arKI Athninistralon section ol these fingntial statements. Bas￿ of preparing the flnanclal statements The financial *atemenls bavg bÉ£n prepared in 8c¢¢rdan¢& with tho charity's MemomndLMn and Artides ol Assotiabon. the Companies Aci 2006, FRS 1￿2 'Tre Fmianaal Reporting Standard applicable in the UK and Republir ot Irdand I'FRS 102.? and th¢ Chat&J'es SORP "Accounting and Rep¢Yting by Cl￿rthe$.. Statement of Recornmended Practi￿ applicable to tharities prèparing the ac£ounls in accordance wilh the Finanaal R¢portTng Standard appli¢able in the UK and Republtc of Ire&nd IFRS 1021 (effective 1 January 20191, the Statement ol Recommended Praetits". Act￿nI.￿g by Registered soci￿ Landlord$ 2010 and wth th¢ Ac¢ountlllg Requirements for Registered Soaal L3wKlbrds G￿eral Detemiination 2015. The financial staternents a￿ prepared in sterfing, whith is the functhonal currery of thg charity. Monetary arrounts in these financial statements are rounded to the nearest £ The fin￿Gla1 stslements have been prepared uNler historical cost convention, modified to indude ihe r•valuation of freehold properb"es, Th8 accounting poliaes adopted are set wt tr￿¢￿. I￿0Mé Inojme charitable activrtse8 represents rental incorne and 18 rewgnised on 8 receivatAe basis. Votuntary income induding donatiorks and legaryes that are of genera nature are reeognised wthera (here is a￿"11@mont certainty ol receipt and the amount can be measw&J wrth sufficient reliability. Such income is 0[￿Y defewed wh￿. The donor Specifies Ih3tthe donation mugl onty Ltsed in future acmuntt.ng p￿r￿ldS,. or don￿ has Impos￿ conditions whith must be met before the charity has unconditional enbUemenl. Invesbment income is reccgnised en a réeèiv8b￿ basi Expendlturg Liabilits"es ar8 recognised a5 eXp￿dIture as soon as there is 3 legal or conslrudv¢ obligation comrnith.ng tho Gharity to thai expenditure, it Is probable that a transfer ol economic benefits will be required in setdement arKI the arnc¢unl of the o￿lgatiOn can be measured reliably. Exponditurg is accountsd for on an amals basis and has been daSSffi￿ under headings that aggregate all cost related to the cat￿Ory. Vthere c4)sts cannot be directly attributed lo part￿Ular headings thw havg beon alkKaled to 8ctiwbe8 Qn a basys consistent with ts use of reswrces. Expenditure on thartt8tAe aC￿v￿eS indudes the cost of runThng the charivs properbes and their associatad support costs. Otherexpenditure represents those items falling in the above calogory. Irrecoveratle VAT 15 charg&Y as a c051 again8tthg actimty forvjhith the expendrture is incurred. Support o)sts are IIKJse fvnctions that a88iSt the work of the tharity but do not (tirectly undertake charitaiAe aetiwilies. Support costs ￿dud@ office costs, ff nance and gOverrnan￿ cDst5. Tanglble fixed assets The thanty's freehold propwty is revaluÉd in line wilh the requirèments of FRS102. Page 13 CJ)nbnued... ELM TREES RE￿REmE￿ LMNG Um￿ED NOTES TO THE FINANCL4L STATEMENTS . contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES - ¢ontlnu Tanglbl• fixed assats Dapreciation is recwised so as to write Dff the cost or valuation of Èssèts less thar regduaf values ovèrthèir useful lives on the following bases.. FrÈ8hotd propety Fixtures and filli)gs No deprec4ation 1Lk33% on txk%t d8￿ndir￿j on assets expected life I￿lIVidu￿ ffx8d 8SSets costing £5CQ or mc¢8 ar8 Ca￿taliSed at cost The gain or ￿s$ atising on the disposal of an asset is detemiined as the drfFeren￿ betr1￿en the sale proceeds and the (wying value ofthe asset and 1$ [￿gnised in the statement offin￿aal activitses. Freehold property the eharty has a policy of utoradiw its properts.es to a stsndard that would incxèasè th6 Wopert￿$ residual value, so that a dep￿￿ation tharge is inappropriato. SI)cJ￿ Hwsing Grants - where develq)rnet￿ have been financed whoty by housing a8SWAalion grants, the ￿st ofthesÉ developmèFts has bèen redueÉd by thè grant wAved. WhiL8t SHG has b88n trèatad as a grant rt is repayab4e urKler Trrtain C4rcUrnstan￿. prirnarity tollowillg tre 8ale tsf a p￿perly. Impairniènt of flxad assats At each reporting erKI date. the charity remews the carying amounts trf tt8 tang￿le asséts tr> determinè whether there is any indiG8tion that th¢>89 8ss6ts have suffered an Impairment k)ss. If any sud) irKli(xlion exists, the recoverable amount ol the asset is estirnatsd in order to dètèrmine thè éxtènt of the impairmenl1035 (rf any). Cash and cash equivalents Cash and cash equWaI￿ in¢ludes ￿¥h and short liquid investments wth a Str￿rt maturity of thm months crf less frcffl the date ol acquisitic￿ or Op￿ing oflhe der*)￿t or simlL8r awowl& Taxatlon The tharity is exempl from cnrporation tsx on its d)arrtable aclimbes. Fund accounting Unre5trictsd funds can be used in accordan￿ wth the charitatle objective8 at the diwetiw of the trustses. Restricted funds can only b8 used for parbcular resthctèd wrpows wthin the obj'ects ol the charty. Restrictions ariso when specified by the donor or when funds are raised for parbcular restricted purp)ses. The Pemianent Endowment Fund 15 restn.cted arKI r9p[￿￿t5 Iho propety known as Jane Gillitt in Southsga whith is occupied by the tharity. The charty LS entided to the incajme bul the propety is owned by The Jane Gilitt Horne Trust, a unitiTrJ direclion dated 23 Marth 2005 15 in plare. Penslon tosts attd othw post-M￿reMent boneflts The charrtable company operates a defined contribution pensIC￿ scherne. Contributions F)ayabJe to the Charitab￿ company'5 pénsion schème are d)arg8d to tt)è Stst8ment of FinancAal Activities in the FeNod to wlwch they relate. Employèe bènÈffts The of any unused hdiday entidement is recognis&l in the period in thè èmployee's SWI￿ arè rÈeéOvgd. Termination bènefits are rrfognlsed Immgdlatety as an expense when the tharity is d￿onstratsfy corllmitt￿ to temiinate the em￿0Yrn￿t ofan employee or lo pr￿￿e terrninalioft bÈr￿fits. PBg• 14 continued... ELM TREES RETIREMENT LMNG UMITED NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 A￿OV￿nNG POUCIES- contlnugd FinanclAI Instruments The charity ha8 deded to appty the provision5 of Section 11 'Basic Finarrial Instrumerts, and Section 12'0ther Finanoal In61rurnents Issues, of FRS 11Y2 to all of its financial instruments. Finanaal instrumen15 are r8cogni8ed in the charity8 bal￿￿ sheet when the charity becornes a paty to th8 eontraciud proMsiu)s of U)a instrumènt Financial 8ss•ts 8ThJ liabilthes ar6 offs@t, with Ihè nèt amounts pres8nted in the finarrial statements, when there is a legalty enforceable right to Set off the recognis￿ aMO￿ts and thore is an intention to sèttlé on a n&w basis or to realise the ass8t and satua th8 li8bifty simu1tana0us￿. Ba$1¢ financial assets Basie financial assets, which indude debtors and cash and bank balanc&s, are Inftialty measured at transac#ion ind￿1ng trartsacbon costs and are subsequently carried at amortsed cost using the 8ffecJve Interest method unless Ihe arraryemenl ¢onstltutes a finandng transaction, wh6r& the transaction is mèasuréd at the prÉsÈnl value of the future receipts diwunted al A Ma￿et rate of Inte￿$1. Flnwal assets dassified as recgvable wSlhin one year are n¢t amortised. Basic flnan¢lal11?bllltlg5 Basic financial Ila￿"11t1e$, Including credrtors and bank loans. are initialty recognised at tranS￿tiOn pice unless the arrangernent cDnstilutes a financing transaction, where the debt instrument is measured at the presenl value of the future payments discounted at a mwk6t rate ol interest. Financial liabilibes dassified as payable vrfthin one year are not amortised. Debt instruTnent5 aro 5ubsoquonNy Ixrried at amortised cosL using tre effectwe inl8r8st ratg melhod. TT&l8 creditors obligation¥ lo pay f¢x goods or serviw that havg aquired in the ordinary course of operations from suppliers. Amounts payable are dassnled as current liabilties if payment is due one year or less. If not, Ihey are presertsd a5 nOn￿￿te￿I liabiltbes. Tiade Ixedilors are reo)gnised initially al transaction price and subsequently measur￿* al amorbsed cost using the effedive interest fflethod. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charty's acr£)unting poliaes, the Executive Committee ale required to make judgèments. èstimates and assurnptions about thÈ Ixrying amount tsf assèts and Iiabilrtiès that are not readity apparent from other SoU￿s. The estimates and assoaated assumptrons are based on htslorie21 èxperièncÈ and othar fadors that arè eonsiderèd to bè re￿Vant. Adu81 rèsutts may differ trom these e81imaies. The eslimates and underlying assumptions are reviewed on an orvgoing basis. Rewisons to accounthng Èstimatès arè rèwnised In thÈ p￿0d in whid) thè èÉtimaté is revisèd. whèrè thè rèw*on affècts only that period, or in the period of Ihe ￿vis0Th and future p￿70d$, where the remsion affects tN)th oJrr¢rt and future ￿n(KIs. Pagè 15 erntinuÈd... ELM TREES REnREMENT LMNG u￿￿ED NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 DONATIONS AND LEGACES 2023 2022 DL￿ationS 52 50 INVESTMENT INCOME 2023 2022 Deposit ￿￿o￿￿t irrt8rast 52 Al investment inwme is derwed from assets held in Ihe United I(￿gd￿n. INCOME FR(AM CHARITABLE ACTIVITIES 2023 2022 Activity ShÈttÉrèd accornodaticm tr the acaive eklerty Ch8ritat4e rental income 511,998 4eA,802 RAISING FUNDS Othertradlng actlvltl&s 2cr23 2022 IrYy8im)ent knssas 71.L¥16 CHARITABLE ACTMTIES COSTS Supwrt sts Isee note 81 Dlrert Costs Totals Sheltered accornodalion forlhe aGtiv¢ ¢ld¢ 398,207 494,756 SUPPORT COSTS GovemarKe (x)sts Finance Totsl Sheltered 8c¢omodab"on for thè a¢bve eklerfy 89,6 ,923 96,$49 PagÈ 16 fA￿￿"nUed... ELM TREES RETIREMENT LMNG LIMtTED NOTES TO THE FINANCIAL STATEMENTS- continuèd FOR THE YEAR ENDED 31 DECEMBER 2023 SUPPORT COSTS- conllnued Support (x)sts. I￿aUde￿ in the above. are as fol Flnance 21Y23 Shelter& a0￿￿OdatIOn forthe activa eklerty 2022 Totsl activitses Bank tharges Bank loan interest 1,129 88,497 1.178 64.414 89,626 65,592 G¢v8man¢¢ costs 2023 Sheltered accomodation for the active ekl¢dy 2022 activrties Auditors remuneration Legal lees Pfeviojs aucl.tors remuneraknon 8.240 e.000 500 6,923 NET INCOMEIIEXPENLMTUREI Net incomellexpenditurel is slated aft8r chargingller6dibngl. 21r23 2022 Auditors remuneration Depiwalton- owned #ssels Previous auditors remuneration 8,240 3.905 3,939 SCO 10. TRUSTEES REMUNERAnoN AND BENEFITS Therg were no trust¢￿, r0rnUnE￿l￿m or other benefits for the year ended 31 December 2023 nor lor the year ernled 31 December 2022. Page 17 continLEd... ELM TREES RETIREMENT LMNG LIMITED NOTES TO THE FINANCIAL STATEMENTS- eontlnuad FOR THE YEAR ENDED 31 DECEMBER 2023 10. TRUSTEES. REMUNERATION AND BENEFITS- conttnued Truste88' •xp•ns•s Ewenses we ￿1mb￿Se￿ to a committe8 mambw of£1,031 for mil8agè.12022.' £niD. 11. STAFF COSTS 2023 2022 Wages and salaries S¢JcJal sécurty txsts Other pension costs 185,804 8,482 3,¢Q1 209.774 14.707 3.200 1S7,377 227,681 The av¢ra9e monthly numberol ¢M￿0vee$ durfng the yearwas as followd.. 2023 12 2022 12 Staff No emjoyees re￿Ved emduments in ex￿$$ of£6tr,000. 11 COMPARATIVES FOR THE STATEME￿ OF FINANCIAL ACTMTIES Unrestricted Endo￿T￿nI funds funds INCOME AND ENDOIINENTS FROM DonatiC￿8 and18gacies 50 SD Charltable activities shdIer￿ accornodalion for the active eld¢rty 484,802 484,8tr2 Investment income Total 484.855 484.855 EXPENDITURE ON Charttablg 3dvltlos Sheltered accornodation for the ath.ve eld¢[ 523,399 523,399 NET INCOMEIIEXPENtMTUREI 138,5441 138,5441 RECONCILIATION OF FUNDS Total funds brought forward 2,393,034 1,734,e97 4,127,731 TOTAL FUNDS CARRED FORWARD 2,354,4WJ 1,734,697 4,089,187 Page 18 continued... ELM TREES RETIREMENT UWNG Um￿ED NOTES TO T￿E FINANCIALSTATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2023 11 TANGIBLE FIXED ASSETS Fixtures and fith'ngs Freehold propety Totsl8 COST OR VALUATION At 1 January 2023 Revaluats'or Impainnents 5,612,317 126,8971 (71,0161 116,124 5.728.441 126,8971 171,016) At 31 December 2ff23 5,514.404 116,124 5,630,528 DEPRECIATION Al l January 2023 Charge for year 98,891 98,891 3.905 At 31 DeCem￿r2023 102,796 102.7 NET BOOK VALUE At 31 Decernber 2D23 5,S14,404 13,32e 5.527.732 At 31 D￿nb￿2022 5.612,317 17,233 5.629,550 C¢)St or valualon al 31 D0￿mber 2023 18 represertsd by.. Freehokj property 5,e12.317 197,9131 Vajuab'on in 2018 Vabation and impatrn¢nl in 2023 5,514.404 The properties we ￿valued during January 2018 by inthpendent valuers Sallies on a warket vafue basis. The Execubve Commrttee have ￿rried out a remew ol this eartier valuation and have now updated the v8luab.ons within these financial statements to refiect what they believe ttr be are cu￿ent market values of Ihe propertses wtthin their ￿rtfOliO. The historical cost of the woperties if th8y wèrè not revaluwl is £295,015. In the 2024 year, the Redbridge Property will be sold for £711,000. Th8r8fr)rè, th6 (sryiny value of this propeity has been Impaired tr>lhis value in the 2023 finanual year. 14. DEBTORS.. AMOUNTS FALUNG DUE WITHIN ONE YEAR 2023 2022 Tradè dÈbtors 1,47$ 1,431 Page 19 tinued... ELM TrEES RETIREMENT UVING UMITED NOTES TO THE FINANCIAL STATEMEKf3- continuEd FOR THE YEAR ENDED 31 DECEMBER 2023 15. CREDITORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 2D23 2022 Bank k)ans and overdrafts Isae note 171 Trade creditors Sou81 s6(yJrty and othertaxes oth￿ creditors Accruds and deferred incA)me 165,697 5.783 179,682 14,807 20,081 18,464 &3,812 225,178 254,362 16. CREDITORS: AMOUPUS FALLING DUE AFTER MORE THAN ONE YEAR 2023 2022 Bank loans {see nots 17) 1,289,9S1 1,289,951 17. LOANS An anaty5i3 of the maturty of k)ark8 is given ￿10￿. 2(Y23 2022 Amounts f811iTrJ due onè year th demand". Bank overdrafts Bank bans 19,950 159,712 159,712 165,697 179,662 Amourts falling tthén onè and years.. Bank bans- 1-2 years 83,329 83,329 Amounts f8llir¥J due beiween tsvo arKJ five y88rs'. 88nk loans- 24 yws 249.984 249,984 ounts fallin9 due in more than five years.. Rapayat￿O by Instslments.. Bank k)ans more 5 yr ty instsl 956.638 956,638 The balance8 thve rèpre8ent two separaté loans atl of bthich *e repayabl8 by monthly instslments and which ore rh¥rged al a fixed and vadable rats of interest. Secured debts The bank loarB afo secured again3tlhe Charty's four PTOPtrtie$. Page 20 ntinued... ELM TREES RETIREMENT LMNG LIMITED NOTES TO TFE FINANCIAL STATEMENTS- ¢ontlnu•d FOR THE YEAR ENDED 31 DECEMBER 2023 1& LEASING AGREEMENTS Mitwmurn1#8se payments under nO￿￿nc•11ab1e oper8tiry leases fall dLJè as frJllows'. 2W23 2022 Wthin one year Be￿n one aThJ five years 3,123 3,856 6,979 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2023 Total lunds 2￿22 Tolal fvnds Unresthrtéd Endowment nds lunds Frxed assets Current assets Current liabilities Long terrn liabilrtias 3,793,035 22,912 1225,1781 11,289,951) 1,734.697 5,527.732 5,629,550 22,912 3,950 1225.1761 12S4,3621 11,289.9511 11,289.9511 2,3(￿,820 1,734.e97 4.￿,517 4,089.187 MOVEMENT IN FUNDS Net mov8menl in ftjnds Al 31.12.23 At1.1.23 Unrestrl¢tgd funds Generd fvnd RevaluatK)n Te%rv 1,211,7$5 1.142,735 153.6701 1,158,C185 1,142,735 2,354.490 153,6701 2,300,820 End0￿entIunds Prop8rty equity fund Revaluation reserv8 124,217 1,61Q,480 124,217 1,610,480 1,734,697 1,734,697 TOTAL FUNDS 4,089,187 153,8701 4,035,517 Net movernent in fvt)Js, induded in the above are as fdlfft.. Incoming resourc*s Resources Movement exFended in fvnds Unrestrlcted fund¥ General fund 512,102 {585,7721 153,67DI TOTAL FUNDS 512,102 1565,ml 153.6701 Page 21 ¢xnbnued... ELM TREES RETIREMENT LMNG UMITED NOTES TO THE FINANCIAL STATEMENTS- conflnued FOR THE YEAR ENDED 31 DECEMBER 2023 MOVEMENT N FUNDS- contlnued Comparatlves for rnov•m8nt In funds Met movement in tunds Al 31.12.22 A11.1.22 Unre¥trlctsd funds General fund ReValU￿.￿n reserve 1.250,299 1,142,735 138,5441 1,211,755 1.142.735 2,393.034 138.5441 2.354.490 Endovmient funds Propety equity furKI Revaluati￿ reserve 124,217 1,610,480 124,217 1.610.480 1,734,697 1,734,697 TOTAL FUNDS 4.127,731 138.5441 4,089,187 Comparabve net movement in funds. In￿l￿d in the at%)ve are as folkiws.. Intx)ming resources Resource8 expèndad Movement in fvnds Unrestri¢tèd funds General fund 484.855 (523.399 138,5441 TOTAL FUNDS 484,855 1523.3g91 138,5441 Rgvaluatlon reservè The revaluation reserve is required by the Companlos Act 2006 and rèprèsants ihe amount by whiGh the Charivs propert￿ ex￿8d Iheir historical cost. 21. CAPITAL COMMITMENTS At 31 December 2023 the charity had nts eApital cnmmitments12022.' NII. 22. RELATED PARTY TRANSACTrQNS During the year, Carcle Rothll, one of the truslégs knt the thatity £10.000 12022.. £6￿0) to POY outstanding HMRC liability. A5 at 31 De￿rnber 2023 the full klan amount of £1S.(J)O has not been repaid and is induded in other cr¢drtors. The total remuneration ￿ benefits of the key manageM￿t personnd of thè ctharity, ¢onsists of the trustees and the Gr(xJp Manager was £55.S1412022'. £53,886>. Page 22 ¢x)nb"nugd... ELM TREES RETIREME￿ LIVING UMITED NOTES TO THE FINANCIAL STATEMENTS- eonunuod FOR THEYEAR ENDED 31 DECEMBER 2023 ULTIMATE CONTROLUNG PARTY The charitable wmpany is not under the (L￿trol of arK)ther entity or arw cA)e Indimdual. GOING CONCERN As di8CU55ed within the frrture pla￿8 saction of the Repgrt of the Trustees, the Trustaes have been awssing the fu￿rè finanoal viability of the Chanty gNen the defilit for Ihe year of £53,670 12022- deficit of £38.S441 and nel working capital defic4t of £202,28412022". £250.4121 at 31 Decenber 2023. A Strategic Plan and PLlon Plan vras PTeparÈd and submitted lo th¢ Charity's Bankers, Lloyd3. After con6idgring a number of options, a dectsion to sell Redbrid￿ House was made on 16 SeptembeT 2022, with the bank Foan balan￿$ to be party repaid after the salg to ieduce the net W￿￿1ng eapital deficit of tre Charity. After year end. it waÈ xgrèèd to sell Ihis property Its tre Portsmouth Cty Council for £711,CQO. Ttrys wll 8nable the entity to operate at a SU￿1U8 VAth lower interest and operating costs We have reviwil budgets W￿r￿ indicAta that subject lo the property sold. and aftgr the paital repayment ol the bank108n$ a￿1 the cost savings from the sale of the property, it induies the charity can cgnbnug lo operate for a hjrknèr 12 months from tho approval of these accounts and theyef0￿ the aC(X)￿ts have been p￿Par0d ￿ a going cOn￿M basis. PagÈ 23