## **UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **TRUSTEES ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**28 FEBRUARY 2022**
**CHARITY REGISTRATION NUMBER: 223894**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **FINANCIAL STATEMENTS**
## **YEAR ENDED 28 FEBRUARY 2022**
||**PAGE**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**9**|
|Statement of financial activities|**10**|
|Statement of financial position|**11**|
|Notes to the financial statements|**12**|
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **TRUSTEES' ANNUAL REPORT**
## **YEAR ENDED 28 FEBRUARY 2022**
The trustees present their report and the unaudited financial statements of the charity for the year ended 28 February 2022.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
|**REGISTERED CHARITY NAME**|United Charities of Nathaniel Waterhouse|
|---|---|
|**CHARITY REGISTRATION NUMBER**|223894|
|**PRINCIPAL OFFICE**|The Warden's House|
||Waterhouse Homes|
||Harrison Road|
||Halifax|
||West Yorkshire|
||HX1 2AZ|
|**THE TRUSTEES**|**Dr Roger W Pool - Chair**|
||Christopher A Reynolds|
||John W Asquith|
||Roger M Verity|
||Wendy Astin|
||Rev Canon Hilary Barber|
||Michael A Steele (Resigned 29 September 2021)|
||Lucy Hodgson|
||Helen Rhodes|
||Frank M Berry (Appointed 7 July 2021)|
||Rob Rosborough (Appointed 11 January 2022)|
|**COMPANY SECRETARY**|George R Pickles RIBA|
|**BANKERS**|CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hull|
||West Malling|
||Kent|
||ME19 4JQ|
|**INDEPENDENT EXAMINER**|Andrea Kennedy BFP FCA FCCA ATT(Fellow)|
||Equitable House|
||55 Pellon Lane|
||Halifax|
||West Yorkshire|
||HX1 5SP|
**- 1 -**
## **UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **INTRODUCTION BY THE CHAIRMAN OF TRUSTEES, Dr ROGER W POOL**
This report, covering the period March 21 to February 22, represents a period of transition from severe, society-wide, restrictions to a more normal life.
The adverse effects of this period of relative isolation on our Residents is noted in the Residents and Personnel report which also records the excellent work being done by the Wardens to facilitate the move back to normal.
During this period we were sorry to lose the wise counsel of Michael Steele who had to resign from the Trustee Board due to ill health. He left with the good wishes and thanks of all the Trustees for his long period of service both as a member and previous Chair of the Trustee Board.
We have been delighted to welcome onto the Trustee Board both Mike Berry and Rob Rosborough who bring with them a wide range of skills that will be very valuable to the Charity in the years to come.
The Trustee Board now consists of 10 members. Thanks must go to all the Trustees for their time and expertise given over this period.
Appointments during this period are detailed in the Residents and Personnel report which also gives details of how we have worked to improve the appointment process. We remain aware that the aim of the Charity is to provide accommodation for elderly people in ‘need’ and we must continue to improve our methods of connecting with those who will benefit most.
The financial stability of the Charity has been maintained and the detail is provided in the finance sub-committee report. We were able to make donations during the year totalling approx. £3.4K including those to St Augustine’s, The Meeting Place and the Church of the Holy Nativity, Mixenden.
Our Wardens, John and Cath Giddings, are pivotal to the running of the Charity and have done an excellent job. Their workload has been significantly increased by the direct and indirect effects of the pandemic and higher levels of both physical and mental ill health amongst residents. Much hard work has brought about a transformation of the gardens. The Wardens remain much appreciated both by Trustees and Residents.
## **What of the future?**
The work to update the scheme has been slowed due to the pandemic restrictions and the retirement of Michael Steele. This is now a priority and work is, once again, underway.
As noted above, increased levels of frailty and ill health amongst the Residents has significantly affected the Warden’s workload. The concept of the Wardens being available seven days per week and 24 hours per day is not sustainable. We need to square this circle without losing the tradition of care and support that is so much valued by our Residents.
I would like to thank George Pickles, Clerk, Ursula Blagg, Assistant Clerk and Wardens John and Cath Giddings with whom it has been a pleasure to work during this year.
**- 2 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Charity is organised so that the Trustees meet quarterly to manage its affairs. Recruitment is by word of mouth, advertising and networking at community events. New Trustees are given a programme of induction by the Clerk and additional training events are available to all Trustees. The Charity is organised so that the Trustees meet quarterly to manage its affairs. Recruitment is by word of mouth, advertising and networking at community events. New Trustees are given a programme of induction by the Clerk and additional training events are available to all Trustees.
All members of the Board of Trustees give their time voluntarily and receive no benefits from the Charity.
The Trustees follow the requirements of the 1960 scheme - a Private Act of Parliament Act and also refer to the guidance contained in the Almshouse Association 'Standards of Almshouse Management 2019' and on the Charity Commission website. It has been recommended to the Board that they formally adopt the Charity Governance Code for Small Charities.
The Board currently consists of ten Trustees, is responsible for making all decisions. The Board has sub-committees to oversee finance, premises, governance and compliance, data protection, health and safety, residents, personnel and the review of the Charity Scheme. The sub committees meet at least quarterly with the Chairs reporting back to the main Board; all meetings being well attended.
Related parties - in the furtherance of its objects, the Charity conforms to the standards and methods of practice of the Almshouse Association. (Membership no. 121).
## **AIM AND PURPOSE OF THE CHARITY**
Nathaniel Waterhouse was an early and very successful Halifax entrepreneur supplying the textile trade. He was married but had no children and left his considerable estate to charity for the relief of poverty and the advancement of religion and education in the Parish of Halifax.
The Trustees of the Charity are responsible for carrying out the wishes of Nathaniel Waterhouse as described in his Will of 1st July 1642 and subsequently varied by Acts of Parliament dated 1738, 1848 and 1960. The Trustees are investigating ways in which the Charity may be updated to meet the wishes of Nathaniel Waterhouse in the 21st century.
## **OBJECTIVES AND ACTIVITIES**
The Act of Parliament 1960 shows that the Charity includes The United Charities of Nathaniel Waterhouse, the Afternoon Lecturer's Charity and the Waterhouse Educational Fund.
The 1960 Act defines the Trustees' obligations, which include the requirement to apply the income of the Charity to the following objectives and activities: -
The maintenance, upkeep and insurance of all properties including the almshouses.
The establishment of an extraordinary repair fund for the rebuilding of the almshouses.
The proper management of the Charity.
The provision of annual payments to nominated vicars in the parish and to the Corporation.
**- 3 -**
## **UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **OBJECTIVES AND ACTIVITIES** _**(continued)**_
The payment of the Afternoon Lecturer appointed by the Halifax minster.
Payments for the benefit of the poor of the parish, including for education and for the care of the old, sick or infirm.
The investment of the endowed funds to produce an income.
Since the rebuilding of the Almshouses in 1960, the main activity of the Trustees has become the management of the 24 dwellings and the provision of support to the residents. The accommodation is provided at an affordable level and financial assistance is available where it can be justified.
The Trustees recognise the Christian intent, of their benefactor Nathaniel Waterhouse, and seek to reflect that in a 21st century context. The needs of society have changed; the role of this Charity has responded to that change and, to remain effective, is working proactively to continue doing so.
The trustees have taken advice from a leading practice of lawyers specialising in charity governance as to how to modernise the Charity Scheme which is a Private Act of Parliament. The advice is being considered but decisions have been delayed due to Covid and the resignation for health reasons of the Trustee who was leading the task. It is however noted that the one recommendation requires the reconstitution of the endowed funds which appear to have migrated into general funds.
## **ACHIEVEMENTS AND PERFORMANCE**
The achievements and performance are described in reviews shown below.
Essentially the charity homes remain in demand, and residents express satisfaction.
Income from weekly maintenance contributions supports a budget which is in line with the Almshouse Association model.
Reserves are reasonable but not at a level which would enable rebuilding.
Investment income is satisfactory and has supported the payment of donations to organisations which support those in need.
## **FINANCIAL REVIEW**
Despite the continuing disruption caused by covid, weekly maintenance contributions from residents were close to last year's level and with a 4.6% rise in investment income total income finished at £134,528, very similar to last year.
A higher level of expenditure was incurred in the year, up £16,584 (15.3%). The main causes were utility costs and long term estate improvements were £13,786 against a low spend last year of only £782 and additional investment into gardening and cleaning. Other costs overall were closely managed with help from the new Wardens who have settled in very quickly.
The overall trading result finished with a positive net income of £9,973, despite the higher costs.
**- 4 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **FINANCIAL REVIEW** _**(continued)**_
In investment markets regular periods of turmoil and uncertainty made decision taking challenging. However, markets managed to move positively and by the February year end net investment gains of £51,028 were achieved, equal to a commendable 7.1%. All the Charity's major investments performed well against peer comparable funds. A full strategic review of investment policy was undertaken in early 2022 and it was agreed to retain the Charity's existing investment managers and continue the policy of investing in charity specific pooled mixed funds as the main investment vehicle.
The sizeable investment gains coupled with the modest net income surplus have enabled increases to be made to both restricted and unrestricted reserves. This has improved financial resilience in advance of a period of anticipated higher spending requirements to improve and maintain the key income generating premises in good condition and so attract new residents when needed and retain existing ones in a comfortable living environment.
The Trustees are able to plan ahead from a strong cash flow position with a positive balance of net current assets amounting to £51,801 at the year end and invested funds of £823,622.
## **RESERVES POLICY**
The financial accounts have been drawn up in line with the recently updated Reserves policy document referred to in last year’s annual report
Further work will be undertaken as part of the current project to consider the modernisation of the Charity scheme objectives.
## **RESIDENTS AND PERSONNEL**
This report covers a period during which we moved from severe Covid restrictions back to ‘normal’ life
- The R and P group met on 6 occasions during this period, reverting to face-to-face meetings after March 21.
- The wardens attended all the meetings and provided updates.
- Written Covid advice notices were provided to Residents as Government advice evolved, the final notice being issued in May 21.
- On the surface the Charity and its Residents weathered the storm well, largely due to the resilience of the Residents and the hard work of John and Cath our Wardens. We do need to recognise, however, that some social and mental health damage still persists as a result of such a long period of relative isolation. Since the easing of restrictions the Wardens have worked hard to re-build interaction by means of social events.
- Christmas was marked by a visit from an ensemble from the City of Bradford Brass Band and distribution of turkey sandwiches, cards and gifts.
- By September 21 both the laundry and Community Room were open to Residents and bookings were, once again, being taken for the Community Room from outside organisations.
**- 5 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **RESIDENTS AND PERSONNEL** _**(continued)**_
- Three further quarterly editions of the Waterhouse and Mackintosh newsletter were produced, the most recent in December 21. Thanks go to Ursula, Assistant Clerk, for her work as Editor and to all contributors.
- Two appointment rounds were run in this period resulting in 2 appointments from the April/June 21 round and 5 appointments from the Jan /Feb 22 round. The appointment process has been refined and improved and now includes valuable pre-interview home visits conducted by George, Clerk and John, Warden. We are grateful to John for his work in distributing application information digitally thus improving security and avoiding reliance on paper.
- A significant safeguarding concern arose as a result of a family member not acting in the best interest of a Resident suffering from advancing dementia. The Resident eventually moved into an appropriate care home and a helpful meeting was held in November 21 with the Team leader from Social Services. Several learning points were highlighted.
- Complaints and complements have been received and discussed
I would like to bring to all readers and Trustees notice the high standard of care and support being provided by our Wardens. Thanks must go to The Clerk and members of the Residents and Personnel Committee for all their hard work during this period.
## **PREMISES**
The subcommittee met on 5 occasions during the year which included site visits.
The following work was carried out in addition to the usual routine and cyclical maintenance including gas and electricity tests:
1. Refresh 4 flats as they became vacant
2. Installation of CCTV
3. Improvement of the gardens
4. Improving car parking
5. Disposing of garden waste for recycling and not landfill
6. Consideration was given to
- a. Re roofing and fire separation in roof voids. Tenders were sought
- b. Further lifts in 3 staircases
- c. Improvements to the warden’s house
- d. Upgrades to electrical systems to reduce consumption
7. Bankhouse Woods
- a. The railway operator will deal with the problem trees at high level above the line
- b. Work continues via Finn Gledhill to satisfy the Charity Commission regarding the potential sale of the woods by auction
**- 6 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **PUBLIC BENEFIT**
The very widely drawn activities of the original Waterhouse Charity have tended to narrow over the years. The power to award financial assistance to residents of the Parish of Halifax remains, and was last used in the award of assistance to residents of Mackintosh Homes, a Charity linked to the United Charities of Nathaniel Waterhouse by common management.
Residents at the almshouses are subsidised according to their circumstances and the charity pays for communal lighting, water and sewage.
Other donations to relevant organisations are listed in the accounts.
## **VOLUNTEERS**
All the members of the Board of Trustees give their time voluntarily and receive no benefits from the Charity. The Charities would also like to thank Richard Barrow and his wife for running the bi-weekly Card Club. The Charities has also benefitted from, and is grateful for, the assistance of volunteer work in the garden.
## **PRINCIPAL FUNDING SOURCES**
The principal funding sources for the charity are from maintenance contributions received from the almshouses residents and income from the original endowments.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees of the Charity submit their report and independently examined financial statements for the year ending 28th February 2021 and confirm they comply with current statutory requirements. These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102: effective 1 Jan 2019) as detailed in the accounting policies.
The law applicable to charities in England and Wales requires the Charity Trustees to prepare financial statements for each 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, of the Charity for that period.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgements and accounting 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;
- prepare the financial statement on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
**- 7 -**
## **UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**TRUSTEES' ANNUAL REPORT** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** _**(continued)**_
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charities’ transactions and 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. 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.
The trustees' annual report was approved on 14 December 2022 and signed on behalf of the board of trustees by:
**Dr Roger W Pool**
Chair of the Board of Trustees
**- 8 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **YEAR ENDED 28 FEBRUARY 2022**
I report to the trustees on my examination of the financial statements of United Charities of Nathaniel Waterhouse ('the charity') for the year ended 28 February 2022.
## **RESPONSIBILITIES AND BASIS OF REPORT**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **INDEPENDENT EXAMINER'S STATEMENT**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Andrea Kennedy BFP FCA FCCA ATT(Fellow)**
Independent Examiner
Equitable House 55 Pellon Lane Halifax West Yorkshire HX1 5SP
16 December 2022
**- 9 -**
## **UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 28 FEBRUARY 2022**
||||**2022**|**2022**||2021|
|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Endowment|||
|||funds|funds|funds|**Total funds**|Total funds|
||**Note**|
**£**|**£**|**£**|**£**|£|
|**Income and endowments**|||||||
|Donations and legacies|**4**|–|–|–|**–**|200|
|Charitable activities|**5**|111,636|–|–|**111,636**|112,583|
|Investment income|**6**|18,422|4,470|–|**22,892**|21,875|
|||-------------------------------------|--------------------------|----------------|-------------------------------------|-------------------------------------|
|**Total income**||130,058|4,470|–|**134,528**|134,658|
|||=====================================|==========================|================|=====================================|=====================================|
|**Expenditure**|||||||
|Expenditure on raising funds:|||||||
|Investment|||||||
|management costs|**7**|1,864|–|–|**1,864**|68|
|Expenditure on|||||||
|charitable activities|**8,9**|122,060|630|–|**122,691**|107,903|
|||-------------------------------------|--------------------------|----------------|-------------------------------------|-------------------------------------|
|**Total expenditure**||123,924|630|–|**124,555**|107,971|
|||=====================================|==========================|================|=====================================|=====================================|
|||-------------------------------------|--------------------------|----------------|-------------------------------------|-------------------------------------|
|**Net income**||6,134|3,840|–|**9,973**|26,687|
|||=====================================|==========================|================|=====================================|=====================================|
|**Other recognised gains**|**and losses**||||||
|Net unrealised gains on|||||||
|investment assets||39,070|11,958|–|**51,028**|42,160|
|||-------------------------------------|-------------------------------|----------------|-------------------------------------|-------------------------------------|
|**Net movement in funds**||45,204|15,798|–|**61,001**|68,847|
|**Reconciliation of funds**|||||||
|Total funds brought forward||645,415|169,007|292,668|**1,107,090**|1,038,243|
|||-------------------------------------|-------------------------------------|-------------------------------------|-----------------------------------------------|-----------------------------------------------|
|**Total funds carried forward**||
690,619|184,805|292,668|**1,168,092**|1,107,090|
|||=====================================|=====================================|=====================================|===============================================|===============================================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 12 to 22 form part of these financial statements.**
**- 10 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **STATEMENT OF FINANCIAL POSITION**
## **28 FEBRUARY 2022**
||||**2022**||2021|
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|
£|
|**FIXED ASSETS**||||||
|Tangible fixed assets|**16**||**292,668**||292,668|
|Investments|**17**||**823,622**||772,594|
||||-----------------------------------------------||-----------------------------------------------|
||||**1,116,290**||1,065,262|
|**CURRENT ASSETS**||||||
|Debtors|**18**|**7,709**||10,513||
|Cash at bank and in hand||**87,991**||68,037||
|||-------------------------------||-------------------------------||
|||**95,700**||78,550||
|||-------------------------------||-------------------------------||
|**CREDITORS: amounts falling due**||||||
|**within one year**||||||
|Trade creditors||**3,827**||5,788||
|Other creditors including taxation and||||||
|social security|**19**|**1,742**|||76|
|Accruals and deferred income||**38,330**||30,858||
|||-------------------------------||-------------------------------||
|||**43,899**||36,722||
|||-------------------------------||-------------------------------||
|**NET CURRENT ASSETS**|||**51,801**||41,828|
||||-----------------------------------------------||-----------------------------------------------|
|**TOTAL ASSETS LESS CURRENT**||||||
|**LIABILITIES**|||**1,168,091**||1,107,090|
||||-----------------------------------------------||-----------------------------------------------|
|**NET ASSETS**|||**1,168,091**||1,107,090|
||||===============================================||===============================================|
|**FUNDS OF THE CHARITY**||||||
|Endowment funds|||**292,668**||292,668|
|Restricted funds|||**184,805**||169,007|
|Unrestricted funds|||**690,619**||645,415|
||||-----------------------------------------------||-----------------------------------------------|
|**Total charity funds**|**21**||**1,168,092**||1,107,090|
||||===============================================||===============================================|
These financial statements were approved by the board of trustees and authorised for issue on 14 December 2022, and are signed on behalf of the board by:
**Mr Roger M Verity** Trustee
**Dr Roger W Pool**
Chair of the Board of Trustees
**The notes on pages 12 to 22 form part of these financial statements.**
**- 11 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 28 FEBRUARY 2022**
## **1. GENERAL INFORMATION**
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is The Warden's House, Waterhouse Homes, Harrison Road, Halifax, West Yorkshire, HX1 2AZ.
## **2. STATEMENT OF COMPLIANCE**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
## **3. ACCOUNTING POLICIES**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
There are no material uncertainties about the charity's ability to continue.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are not considered to be any judgements or accounting estimates or assumptions that have a significant impact on the financial statements
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
**- 12 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **3. ACCOUNTING POLICIES** _**(continued)**_
## **Incoming resources**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT which cannot be recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Tangible assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any impairment losses.
## **Investments**
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
## **Investment property**
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
**- 13 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **3. ACCOUNTING POLICIES** _**(continued)**_
## **Financial instruments**
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
## **4. DONATIONS AND LEGACIES**
||Unrestricted|**Total funds**|Unrestricted|Total funds|
|---|---|---|---|---|
||funds|**2022**|funds|2021|
||£|**£**|£|£|
|**DONATIONS**|||||
|Donations|–|**–**|200|200|
||================|================|================|================|
|**CHARITABLE ACTIVITIES**|||||
||Unrestricted|**Total funds**|Unrestricted|Total funds|
||funds|**2022**|funds|2021|
||£|**£**|£|£|
|Almshouses residents' contributions|111,636|**111,636**|112,583|112,583|
||=====================================|=====================================|=====================================|=====================================|
|**INVESTMENT INCOME**|||||
|||Unrestricted|Restricted|**Total funds**|
|||funds|funds|**2022**|
|||£|£|**£**|
|Rent received||3,800|–|**3,800**|
|Income from listed investments||14,615|4,470|**19,085**|
|Bank interest receivable||7|–|**7**|
|||-------------------------------|--------------------------|-------------------------------|
|||18,422|4,470|**22,892**|
|||===============================|==========================|===============================|
|||Unrestricted|Restricted|Total funds|
|||funds|funds|2021|
|||£|£|£|
|Rent received||3,090|–|3,090|
|Income from listed investments||14,456|4,290|18,746|
|Bank interest receivable||39|–|39|
|||-------------------------------|--------------------------|-------------------------------|
|||17,585|4,290|21,875|
|||===============================|==========================|===============================|
## **5. CHARITABLE ACTIVITIES**
## **6. INVESTMENT INCOME**
**- 14 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **7. INVESTMENT MANAGEMENT COSTS**
||Unrestricted|**Total funds**|Unrestricted|Total funds|
|---|---|---|---|---|
||funds|**2022**|funds|2021|
||£|**£**|£|£|
|Wood Management|1,403|**1,403**|–|–|
|Insurance|461|**461**|68|68|
||--------------------------|--------------------------|----------------|----------------|
||1,864|**1,864**|68|68|
||==========================|==========================|================|================|
## **8. EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE**
||Unrestricted|Restricted|**Total funds**|
|---|---|---|---|
||funds|funds|**2022**|
||£|£|**£**|
|Almshouses costs(see note 9)|106,459|630|**107,089**|
|Donations(see note 9)|7,448|–|**7,448**|
|Support costs(see note 9)|8,154|–|**8,154**|
||-------------------------------------|----------------|-------------------------------------|
||122,061|630|**122,691**|
||=====================================|================|=====================================|
||Unrestricted|Restricted|Total funds|
||funds|funds|2021|
||£|£|£|
|Almshouses costs|88,313|–|88,313|
|Donations|14,346|–|14,346|
|Support costs|5,244|–|5,244|
||-------------------------------------|----------------|-------------------------------------|
||107,903|–|107,903|
||=====================================|================|=====================================|
## **9. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE**
||Activities||||
|---|---|---|---|---|
||undertaken||**Total funds**|Total funds|
||directly|Support costs|**2022**|2021|
||£|£|**£**|£|
|Almshouses costs(see note 10)|107,089|
–|**107,089**|88,313|
|Donations(see note 11)|7,448|
–|**7,448**|14,346|
|Governance costs(see note 12)|–|
8,154|**8,154**|5,244|
||-------------------------------------|--------------------------|-------------------------------------|-------------------------------------|
||114,537|
8,154|**122,691**|107,903|
||=====================================|==========================|=====================================|=====================================|
**- 15 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **10. ANALYSIS OF ALMSHOUSES COSTS**
|||**Total 2022**|Total 2021|
|---|---|---|---|
|||**£**|£|
||Wardens’ salaries and national insurance|**27,814**|27,818|
||Wardens’ pension costs|**2,437**|2,217|
||Clerks’ salary and national insurance|**7,922**|9,358|
||Clerks’ expenses|**294**|225|
||Light, heat, rates and water|**6,713**|4,846|
||Routine maintenance|**4,987**|3,371|
||Bad debts|**467**|**–**|
||Insurance|**2,869**|2,643|
||Gardening and cleaning|**6,087**|2,870|
||Legal and professional|**5,554**|5,609|
||Telephone and other office costs|**3,030**|2,129|
||Residents’ welfare|**2,393**|3,329|
||Advertising|**338**|294|
||Seminars and training|**197**|686|
|||-------------------------------|-------------------------------|
|||**71,102**|65,395|
||Cyclical maintenance|**21,571**|22,136|
||Improvements to the estate|**13,786**|782|
||**Restricted**|||
||Extraordinary repairs|**630**|**–**|
|||-------------------------------------|-------------------------------|
|||**107,089**|88,313|
|||=====================================|===============================|
|**11.**|**ANALYSIS OF DONATIONS**|||
|||**2022**|2021|
|||**£**|£|
||**GRANTS TO INSTITUTIONS**|||
||Smartmove (Homeless charity in Halifax)|**–**|500|
||CFFC Covid 19 Fund|**–**|10,000|
||In memory of Avril Smith|**–**|200|
||Vicars|**78**|606|
||Lecturer|**120**|840|
||Gathering Place|**1,000**|500|
||Healthy Minds|**–**|500|
||Noahs Ark|**–**|500|
||Happy Days|**–**|500|
||Halifax Civic Trust|**–**|200|
||St Augustines|**1,000**|–|
||Overgate|**250**|–|
||John Mackintosh|**5,000**|–|
|||--------------------------|-------------------------------|
||Total grants|**7,448**|14,346|
|||==========================|===============================|
**- 16 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **12. ANALYSIS OF GOVERNANCE COSTS**
|||**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Wardens’ salaries and national insurance|**1,455**|**1,464**|
||Clerks' salary, national insurance|**1,980**|**2,340**|
||Clerks’ expenses|**293**|**224**|
||Bank charges|**96**|**66**|
||Insurance|**380**|**380**|
||Independent examiners report|**770**|**770**|
||Legal and professional fees|**3,180**|**–**|
|||--------------------------|-------------------------------|
|||**8,154**|**5,244**|
|||==========================|===============================|
|**13.**|**INDEPENDENT EXAMINATION FEES**|||
|||**2022**|2021|
|||**£**|£|
||Fees payable to the independent examiner for:|||
||Independent examination of the financial statements|**770**|770|
||Other financial services|**1,948**|2,428|
|||--------------------------|--------------------------|
|||**2,718**|3,198|
|||==========================|==========================|
|**14.**|**STAFF COSTS**|||
|||**2022**|2021|
|||**£**|£|
||Wardens’ salaries and national insurance|**29,268**|29,282|
||Clerks' salary and national insurance|**9,902**|11,698|
||Employer contribution to pension plans|**2,437**|2,217|
|||-------------------------------|-------------------------------|
|||**41,607**|43,197|
|||===============================|===============================|
The average head count of employees during the year was 3 (2021: 4).
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
## **15. TRUSTEE REMUNERATION AND EXPENSES**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
No trustee expenses have been incurred.
**- 17 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **16. TANGIBLE FIXED ASSETS**
||**Freehold**|
|---|---|
||**property**|
||**£**|
|**Cost**||
|**At 1 March 2021 and 28 February 2022**|**292,668**|
||=====================================|
|**Depreciation**||
|**At 1 March 2021 and 28 February 2022**|**–**|
||=====================================|
|**Carrying amount**||
|**At 28 February 2022**|**292,668**|
||=====================================|
|At 28 February 2021|292,668|
||=====================================|
## **17. INVESTMENTS**
||Listed|Investment||
|---|---|---|---|
||investments
|properties|**Total**|
||£|£|**£**|
|**Cost or valuation**||||
|At 1 March 2021|719,094|53,500|**772,594**|
|Additions|–|–|**–**|
|Fair value movements|51,028|–|**51,028**|
||-------------------------------------|-------------------------------|-------------------------------------|
|**At 28 February 2022**|770,122|53,500|**823,622**|
||=====================================|===============================|=====================================|
|**Impairment**||||
|**At 1 March 2021 and 28 February 2022**|||**–**|
||||=====================================|
|**Carrying amount**||||
|**At 28 February 2022**|770,122|53,500|**823,622**|
||=====================================|===============================|=====================================|
|At 28 February 2021|719,094|53,500|772,594|
||=====================================|===============================|=====================================|
All investments shown above are held at valuation.
## **Investment properties**
The freehold property held for investment comprises Bank Bottom Woods, Salterhebble, 8 Garages at Waterhouse Homes and freehold of 6 & 8 Crown Street.
The Trustees are of the opinion that the figure of £53,500 fairly reflects the market value.
**- 18 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **17. INVESTMENTS** _**(continued)**_
## **Financial assets held at fair value**
||**Cost**|**Fair value**
|Cost|Fair value|
|---|---|---|---|---|
||**2022**|**2022**
|2021|2021|
||**£**|**£**|£|£|
|CCLA COIF Ethical|||||
|Investment Fund|||||
|(49,629 Income units)|**82,113**|**143,362**|82,113|133,129|
|CCLA COIF Ethical|||||
|Investment Fund|||||
|(19,654 Income units)|**50,000**|**56,775**|50,000|52,722|
|Chariband (33,492|||||
|Income units)|**40,469**|**39,763**|40,469|41,395|
|Newton Growth &|||||
|Income fund for|||||
|Charities (207,280|||||
|income units)|**154,192**|**330,778**|154,192|297,758|
|Sarasin Alpha CIF for|||||
|Endowments (145,370|||||
|Income units)|**115,000**|**173,281**|115,000|168,629|
|Sarasin Alpha CIF for|||||
|Endowments (21,949|||||
|Income units)|**25,000**|**26,163**|25,000|25,461|
||-----------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
||**466,774**|**770,122**|466,774|719,094|
||===============================================|=====================================|=====================================|=====================================|
The invested funds are revalued at the balance sheet date to the mid daily value published on the providers website.
Although the Trustees have not allocated specific investments to cover the Extraordinary Repair Fund (ERF) amounting to £185,435 (2021: £169,007), they are aware that this amount is allocated to a restricted fund and is not available for general purposes.
## **18. DEBTORS**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Prepayments and accrued income|**7,709**|9,906|
|Other debtors|**–**|607|
||--------------------------|-------------------------------|
||**7,709**|10,513|
||==========================|===============================|
**- 19 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
**NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **19. OTHER CREDITORS INCLUDING TAXATION AND SOCIAL SECURITY FALLING DUE WITHIN ONE YEAR**
|**DUE WITHIN ONE YEAR**|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Social security and other taxes|**674**|–|
|Other creditors|**1,068**|76|
||--------------------------|----------------|
||**1,742**|76|
||==========================|================|
## **20. PENSIONS AND OTHER POST RETIREMENT BENEFITS**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,437 (2021: £2,217).
## **21. ANALYSIS OF CHARITABLE FUNDS**
## **Unrestricted funds**
||At|||||**At**|
|---|---|---|---|---|---|---|
||1 March||||Gains and|
**28 February**|
||2021|Income|Expenditure|Transfers|losses|**2022**|
||£|£|£|£|£|**£**|
|General funds|357,008|130,058|
(102,353)|(34,903)|39,070|
**388,880**|
|Cyclical|||||||
|maintenance fund|||||||
|(CMF)|119,900|–|
(21,571)|21,350|–|
**119,679**|
|Extraordinary|||||||
|repair fund|||||||
|(EFD-D)|168,507|–|
–|13,553|–|
**182,060**|
||-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------|-------------------------------|-------------------------------------|
||645,415|130,058|
(123,924)|–|39,070|
**690,619**|
||=====================================|=====================================|=====================================|===============================|===============================|=====================================|
|||||||At|
||At 1 March||||Gains and|
28 February|
||2020
|Income|Expenditure|Transfers|losses|2021|
||£|£|£|£|£|£|
|General funds|325,575|130,368|
(85,835)|(45,607)|32,507|
357,008|
|Cyclical|||||||
|maintenance fund|||||||
|(CMF)|110,000|–|
(22,136)|32,036|–|
119,900|
|Extraordinary|||||||
|repair fund|||||||
|(EFD-D)|155,000|–|
–|13,507|–|
168,507|
||-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------|-------------------------------|-------------------------------------|
||590,575|130,368|
(107,971)|(64)|32,507|
645,415|
||=====================================|=====================================|=====================================|===============================|===============================|=====================================|
The Waterhouse Trustees are custodians of a balance of £19.20 from a closed charity the Denton Walker Scholarship Foundation. They are also custodians of a balance of £118.43 from the John Smyth's School Charity no 529136 which is not currently active. Both these amounts were transferred in 2016 to reduce administrative costs and are in general funds.
**- 20 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **21. ANALYSIS OF CHARITABLE FUNDS** _**(continued)**_
## **Restricted funds**
|**Restricted funds**|||||||
|---|---|---|---|---|---|---|
|||||||**At**|
||At 1 March||||Gains and|
**28 February**|
||2021|Income|Expenditure|Transfers|losses|**2022**|
||£|£|£|£|£|**£**|
|Extraordinary|||||||
|repair fund (ERF)|169,007|4,470|
(630)|–|11,958|
**184,805**|
||=====================================|==========================|================|================|===============================|=====================================|
|||||||At|
||At 1 March||||Gains and|
28 February|
||2020|Income|Expenditure|Transfers|losses|2021|
||£|£|£|£|£|£|
|Extraordinary|||||||
|repair fund (ERF)|155,000|4,290|
–|64|9,653|
169,007|
||=====================================|==========================|================|================|==========================|=====================================|
The Cyclical Maintenance Fund, designated fund, has been increased by more than the minimum amount recommended by the Almshouse Association Specimen Budget for dwellings outside Greater London and older than 20 years of £802 per unit for 24 flats and the warden's house.
The Extraordinary Repair Fund, restricted fund, has been increased by more than the minimum amount recommended by the Almshouse Association Specimen Budget for dwellings outside Greater London and older than 20 years of £590 per unit for 24 flats and the warden's house.
The Trustees' policy is to keep the properties up to date, and they are currently reviewing the optimum amount that should be reserved for extraordinary repairs.
Incoming resources comprises Weekly Maintenance Contributions, interest and dividends (allocated between restricted & unrestricted funds).
## **Endowment funds**
||||||||**At**|
|---|---|---|---|---|---|---|---|
||At|1 March||||Gains and|
**28 February**|
|||2021|Income|Expenditure|Transfers|losses|**2022**|
|||£|£|£|£|£|**£**|
|Permanent||||||||
|Endowment Fund||292,668|–|
–|–|–|
**292,668**|
|||=====================================|================|================|================|================|=====================================|
||||||||At|
||At|1 March||||Gains and|
28 February|
|||2020|Income|Expenditure|Transfers|losses|2021|
|||£|£|£|£|£|£|
|Permanent||||||||
|Endowment Fund||292,668|–|
–|–|–|
292,668|
|||=====================================|================|================|================|================|=====================================|
**- 21 -**
**UNITED CHARITIES OF NATHANIEL WATERHOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_
## **YEAR ENDED 28 FEBRUARY 2022**
## **22. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||Unrestricted|Restricted|Endowment|**Total funds**|
|---|---|---|---|---|
||funds|funds|funds|**2022**|
||£|£|£|**£**|
|Tangible fixed assets|–|–|292,668|**292,668**|
|Investments|638,188|185,435|–|**823,623**|
|Current assets|95,700|–|–|**95,700**|
|Creditors less than 1 year|(43,899)|–|–|**(43,899)**|
||-------------------------------------|-------------------------------------|-------------------------------------|-----------------------------------------------|
|**Net assets**|689,989|185,435|292,668|**1,168,092**|
||=====================================|=====================================|=====================================|===============================================|
||Unrestricted|Restricted|Endowment|Total funds|
||funds|funds|funds|2021|
||£|£|£|£|
|Tangible fixed assets|–|–|292,668|292,668|
|Investments|603,587|169,007|–|772,594|
|Current assets|78,550|–|–|78,550|
|Creditors less than 1 year|(36,722)|–|–|(36,722)|
||-------------------------------------|-------------------------------------|-------------------------------------|-----------------------------------------------|
|**Net assets**|645,415|169,007|292,668|1,107,090|
||=====================================|=====================================|=====================================|===============================================|
## **23. RELATED PARTIES**
During the year £5,000 donation was made to John Mackintosh Memorial Homes a charity under the common control of the trustees.
**- 22 -**