Dlxon Almshouse Charity Truslee's Annual R8POrt and Accounts Year Ended 31 March 2023 Charity Number.. 223045 Dlxon Almshouse Charity Truwt•o report and flnanclal statements for th• year endod 31 MArch 2023 Contènts Pago: Report of the Trustee Trustee's re8ponslt41111es statoment Independent audllofs rwort statement of IlnarKial actMti8s Statement of Ilnanclal posltlon 10 Notes forming part of tha financlal Ststemnts Trustse Arwn Housing AS$￿18140n Ltd Alrnhou8e Managar: Arcon Houslng AssI￿1all￿n Lld Comp•ny secretary and regl$terod oftlco Katsina Cunllff8. Quay Wes( Tr8fford 1th8rf Rwl, MpnGhester. M17 1HH Ch#rlty number 223045 80liGitors Antr￿ny Collln8 Sollcitors LLP, 134 EdmurKI Street. Birmingham. 83 2E8 Audltor Azets Audil Swkes, Fleet HoLtse, New Road, Lancastsr. kn411 EZ Bankern CAF B8nk, 25 Ilngs Hlll Avenue, Kings Hill, West Malllng. Kenl ME19 #klQ Dixon Almshouse Charity R•port of Tru8ts• for the yoar onded 31 March 2023 Th6 Trustee presents the annual report and Ihe audSted financial Statements for thg year ended 31 PAarch 2023. The Trustee has adoplvj the provi81ons of tho Chthlbes SORP 2vd Edition (FRS 102) In prewing the annual reFth and financl81 slaiements of the chadty. StN¢turp, Governan¢• and Man•ggm•nt Arcon H¢)using Associa￿0￿ were appolnied as Trustee on 1rtJung 2006. The Trustee was pwiousty The Order8 of St John Twstee Company. SIN¢thro and actfvitlg The Charlty. vthth Is regi8ter8d wlth The Ch￿ty Commlsslon, is uninwrFX)ratsd and has as Ils constit(thn a declaration of Irust dated 2 March 1968 las amended). In addluon, thg Trustee holds fund8 arwx Inveslmenls wth a vS8W to the fvther development of clkgrftBble Aln%. OryaniB#tlon The Bo*d ofArcon Houskng AssLthtlon m99ts slx IlrMs a year and c8rrw oul an Annual Revtew. As Corporate Truslge, the trustee m8ets at a year to discuss perlom)arKe, budgets and bu8lness pkr and approve the ftnanclal statements. Obfvctlv•s and Actlvlti The Charltable obie¢l8 of the Charity are: to provlde housing ¥ceommodatlon and 8881stsnce lo hèlp hw8e people whu are eÈderfy or di6abl&1 and as8oclated facilit* and amenmes for 8u¢h peopl& or the relief of the aged. dlsabled.. and to further su¢h general Gharitabl8 as tho Trustee datsrmine. Fln•nGlal revhw The totsl IncomSng resources were £32.587 for the year to 31￿ March 2023 12022.. £32,563>, produclNJ an oper81ing surplus of £4,522 12022: £7.030). Loss¢$ on Investments resulted in a surphjs of £4,465 for the 12 month perlod to 31gi March 202312022: surplus of £7.164). Accumulated surpluse5 held In general unre5tricled reserves were £322,336 {2022: £317,871). Golng conc•rn In the financl8I year 2022123, the war in Ukraln8 has caused rnry supply skle Sh￿$, ¥p8cificaWy for énergy suppliès whkh in luTn has causwj inflatlonary Increases in a wlde range DI products 8nd servlos. hen reVI￿n9 the budget and forecasts the Trustee wn$kiered ts impaGI both specif￿alty and on ts UK eCor￿my. together with risks around Prin￿pIe etxTh)mlc assumptlons and regulatory dlanges. Dixon Almshouse Charfty Roport of th• tN$t•e for Iho year endod 31 March 2023 (contlnued) The business plan forecasts show thal the ¢harlty has sufficient Ib4uld ftFnds In pLqce that provhje ￿equal• re8ouroe5 to fund all ￿MMNted capi￿1 expenditure and inveslnEnt pr(>JT8mme8 together wth day-to4ay acthS1ies. The L*arfVs actlvlUe$ 8re expgcted to oonwnue urnhanged for the foreseeable future and the ur￿ertaInl1¢3 considered, Including the p8ndemlo and the in11a￿Onary pressures des¢rlbed atx)V8, are not expected to have a material long term Impacton thechaTitls fin8n¢ial vlabllity. On this ba8iB the Trustee has8 reasonable expectatlon that the charfty has adequate r880ur¢e$ to continue in operational exlslertr for the foieseeable future, b?ing perfod of at kn112 mDnths aft¢r the date on whrh the linandal statements are signed. Therefo￿, il continL to adopt the golng concem basis In the financlal 8tateTrEnt#. RoseNe8 pollcy The Trustee has oJnskler8d the need for an appropriate levd of reserves In C￿junc110n with the gu￿anCe issu6 by The Chartty ConThissTrJn. In detsmining a res￿ F(fylty the Trustee has Identified core Dbiecuves to te met These 8$ folkA¥s: the establlshmentof adequat& free ￿serveS {excknYlng fixed a¥se161 to en8ure that th¢ Charty has Sdequate liquidity to meet any short-temi fluGtuations In ￿CuF￿neY levels ¢X excapllonal ¢os16 outside the 8¢ope of the budget, and the devebowEnl of a strong bala￿ sheei and Fos11￿@ cash Ilow io support the funding ofthe IMproVe￿nt of the exi8ting propwty. The level of reservgs required Is detemilned L￿Ing comprehensfve b￿￿gets and cash Ilow forecasts. Regular updates and rrKJnltoring of these d(Kuments 8re ￿rrI&d out to ensure that a surplus B achieved, and caBh fkjw is adBquate for the naeds of the Charlty. The benchmark for the ffee reserves Ihe Charty Is bets¥een £300.0 £500.000. At the year end the Charity has £382,800 of totsl fvnd$ {2022'. £358,335) of whkh £361,79912022.. £357,334) av8llable al the discretion ofthe trustee and deemed as free reseryes. Rlsk m•nagoment The Trustee has Identlfied the risks to whth the Charity 1$ exposed and, for each of these, an asses8trthit ha5 I￿en made as to th81r impact. severity, and probabillty. Internal and extemal contruls have I￿on revlèwed for effÈctlvene8s in mftlgaling these risks. System$ have bg8n a8tabli8hed to manage the18vel ol rlsk includlng the followlng.. The revlew of major Tlsk related Incldgnts (and steps taken to address these) at e￿h meetlng of th8 Board and thè Group Audm and Risk Commiltse ofthe Trustee. The internal control #ystem Is mon11(￿1 and SUPFQrted by external avdlt that is able lo wovlde an independent per8Fethe on the man&3ement of tsk w6th1n the Ch8rlty. The man4emènt and control of risk is an ongolng process In the Charity. Re8ponsiblllty for ensuring that there are appropriate risk managerMt and audlt 8truoluras In plac8, and for revlthvlng those structure8, Is delegalwj to the Group Audit and Risk Committee of the TTUSte8, which is a shared committee with the BO1￿ at Ho Grt)up. Dixon Almshouse Charity Report of th• truste• for y•#r ended 31 March 2023 (contlnuodj Funding Source and Expendltur• The princlpal fundlng Sources are charggs for prowding hou51ng accomrmdalbn. ExperKlltur8 IB all rekqi&J to provldlng th[8 accomnv)dallon. Future devolopm•nt• A slc¢kwndlllon survey has teen compl8ted whKh wlll Inkwm fulure ￿U￿ements for Inyrovements lo pro￿rt arKI prOgrarm￿ are èeirrfJ prepared a¢oxdlngty. Audltor Follovlng a retenderlng of the contract of extemal wdit, new auditor8, Azets Aud51 Serylce8 Llmited have audit• the current years aGcounts. A resolution forthe re4pp01nlw￿nt ofAzets Audll Servtce8 LimRe(l as auditcts of the Assoclallon L8 to be proposed at the Annual General mee￿ng in line wlth th8 temls of the Charlbes Act 2011. 14tlon Ltd ai l 0911023 Dlxon Almshouse Charity Tr￿t•0'9 rosponslblEltle6 sts¢ement forlhg y•arend•d 31 mA￿h 2023 The Tru5tse ly re8wn51ble for prewlng the Annual re￿￿rt and the financial 5ts18ments In a￿)rda￿e 8ppllcable law 8nd regulalon8. Ch8rlty Iw tequires the Trust8e to prepare fknarthl Stat￿nts for e&h flnanclal year In accordanGe with United Klngdom Generally A￿epted Accounllng Practtce {Unlted Klngdom Accounting Standards and appIl￿ble law). Under charty law the Trustee must not approve the financkgl statoments unless t￿Y are satisfied that they glve a true and fair ¥￿W ofthe state ofaffalrs of the charlty and of the incomlng resources and appllcBlon of reswrc88, Including the Income and expendI￿re. of the rharlty for Ihat pemd. In preparmw th888 flnan¢lal statements. the Trustee Is required to: select sultable accounting ptslides and th￿ apply them (xM9￿tsn1ty; make judgements aNI accountlng estlmats8 Ihat are rpasonab18 and prudenL' 8t81e whether appI￿abl& UK Accounung StandardB have tten followed, subl￿t to any materlal departures disck)sed and explalned In the financial slatsments,. and preparè the finandal statement8 on the oolng concern ba818 unlgss it Is In8pproprk8te to wesume that the arity wlll cc4)Ilnue In bu8ine88. The Tru8t8818 rasponslbl8 for Keeplng adequate aocountlng records that are sufftlent lo show and etyain the charity's tran880lKJns and discbse wrth reasonable accurw ai any Ilme the financial posI￿on of the ¢harity aTh enatAe them toensurè that the financial 8tatenEnts comply wlth the Chariiies Act2011. They are also responslble for safeguarding the assets of the tharlty and henB8 for taking reasonabl8 Steps for th8 proventk)n and deteC￿n of fraLKI and other Irregularfl￿. Dlxon Almshouse Charity INDEPENDENT AUDrroR'S REPORT TO ThE TRUSTEE OF DIXON ALMSHOUSE GHARITY Oplnlon W& have a￿d￿ed the finan¢lal ststements of Dixon Alm8knLr$e Charfty (the fharty'l for the pad(*l endpd 31 March 2023 whlch o)mprise the 8tatem8nl of financial o¢lvMies. the statement of ffinanclal posttlon and notes to the finanGlal $talgments. includlng 51gnlficanl 8wounllng Fo1￿￿s. The finandal reporting framework thal has been applied in their preparallon is applkabie law and UJ)iled Klngdom AC￿Un￿￿9 Standards, incI￿ling Flnanclal Repjrtlng Standard 102 The Flnancial ReFxJrtlng Standard a￿kable in the UK and Republic of IrdaThJ (United Kln9dom Generally Accepted Accounyng Pradee). In our opinlon the financlal 8tatemants: glve a truo and fair vlew of the Slate of tho Charlty's aff8irs as al 31 March 2023 arKI of surplu$ Ihe perfc*l then ended. have been propety wepared In accordance wSth Unlted Klngdom Generalty Aco*d Accounting Pr￿tIce,. and have been preparwj In xcordanGe wth the requlTerr£nts of the Charftlg5 AGI 2011. Bas1$ for oplnlon conduoted our audlt In aGcord8nce wlth InlgmaUonal Standards on Audibng (UK) IISAS (UK)) and appllcaL law. Our responsibilhles under thos8 Standards are furlhey descTR)ed in thfj Audllor's reswnslblllites foi the audll ol the flnanclal Statsments sectkin of our rgport. We are inde￿ndent of the Charity In 8ccordanGe wlth the ethical requirements that are relevant to our audit of the financlal ststements In the UK In¢ludk)g Ihg FRC'8 Ethical Slendard, and we have fulfillsd our olher eth￿al ￿sponSibl11t￿ In accordance these require[r￿nts. We belleve that the audrt evldence we have oblalned Is 8uffidenl and aPF*oprlate lo provide a b55h8 fcf our oplnion. Cc•nclu8lons rolatlng to golng conGorn In audltlng the financial statements, we have concluded that the Trusle8'3 use of the golng ¢0￿eM basls of 8cGountlng in the preparation of the finanGial Statements Is apEwrf8te. Based cn the work we have perfom*d, we have not Klentifled any matsdal uncertaInl￿ rglatlng to events or ¢ondilions that, IndNidualty oreolkdivety, rroy rast slgnffjcant doubl on the Charlvs abllity to continue as a golng concern for a period of al least twelve mnth8 from when the financial statements aTe authorlsed for Issue. Our re8pon8follltles and Ihe responsibil￿leS of th9 Trustè8 with resp8Gt to going concern are de8cribed Sn the relevant secllons of this roport othor Informatlon The other Information comprises the Informatlon Included In the annual repJrt other than the finanGial statemgnts ¥nd our auditovs report the￿On. The Trustee b responslble for thè other Inf0rrr￿11￿ Gontalned within the annual port. Our opinlon on the finanGbl statsments dc¢s not cover thg other Information and, except to Ihe extent olherwlae explully $taled In our report. we do not expre$8 any form of assurance condusion theTeon. Our responslbllty is to read the other Informallon and, in doing so, r£)nsKler whether the olher Infomialk)n Is wfjteriplly Inconsistent w6th the finan￿al stalemgrsts, or our knovAedge obtalned in the course of the audlL or otherwise app8ars lo be malarialty mi8Stated. If we Identlfy such materlal Inconsistendes or apparent material misstalgments, we are required to deteTmlne whether thlB gives rfse to a material misstatement in the ffinandal 8tatements themsetves. If, based cffi the WOTk we have perfomied, we conclude that there g matertal m158talemenl of thls other Infomialion, we 8r8 requlred lo report that facL We have nothlng to report In this ward. Dixon Almshouse Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF DIXON ALMSHOUSE CHARITY (CONTINUED) Matter8 on whlch we ar• requlrgd io roport by •xceptlon We have nothing to r8POrt in respeGt of the folknvlng matters In rel8tlon to whlch the Charltles Act 2011 requlre us to r8Wt lo you If, In our opinKm'. Iho Infomiatlon gpRn in thg Trustee's Annltal Report or the financlal year for whth the finandal statements are prepared are not consistent wlth the financlal staten*nts', or adequate a¢¢ounting records h8ve not been k6pL or Cgrtain dlsclosures of directors, remuneration speclfied ty law are not made; or the finandal slalements aTe not In agreementwith the 8¢counlng r￿OrdS and relum¥', or we h8V8 nol recefved all the informgllon arKI explanallon6 we requlre for our audlL Ro8ponslbllltlos of Trust As explai)ed more fulty In the Trustee's re8ponsiblitie8 statement Set out on page 4. the Trustee Is rgswnsiblg for the weparation of the flnBnclal Statements and for belng satisfied that they glve a tfue and falr vlew, and for Such kntemal contro5 as the board memb•r$ determine L8 necessary to enabl8 the preparabon of fIna￿la1 statements that are free from materfal mlsstatemenl. whether due to fraud or error. In preparing the financkl statements, the Trustee is responsible foT 888esslng th9 Charftys ability lo continue as a goh)g (y)noern, di5cbslng, as appllc8ble. matters related to golng concem and using the golng concern basls of accounflng unle86 the Trustee either intend io liquldate the Charlty ￿ to cease op8ralons, or hav¢ no re8118￿ alt￿native bul to do Audltoes vosponslbllltlfjs for th• audlt of the financlal statgments Our objethes ar¢ lo obtain reasonable a88urance about whethw the finandal statements as a wthole £re tree from material misstatement, whether due to fraud or error, arKt lo issue an 8uditorfs report that Indude8 our opinion. Reasonable a88uran¢e Is a high level of assurance bui is not a guaTantee that an audll conduGtsd In accordance wlth ISAS IUKI wlll a￿ayS delect a malerwl misstatement when It e￿$ts. Mlsstalements can ari8e from fraud or error and are considered mateTial if, Indivklualty or In the aggregats. th?y ccuWI reasonably be pected lo influgnce th8 economic deLisk*ns of us&s tsken on the basis of these finanGial $tstem8nts. A further description of our resF¥)nslbllltles Is 8V8llable on the FlnanGial Rèporting cou￿11.8 webslte aL' httpsjlwww.frc.org.ukjaud1torsrespor￿lblliIle$. Th18 desCriPtI)n forms part of Ouf a￿11t0T￿ report. Dlxon Almshouse Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF DIXON ALMSHOUSE CHARITY (CONTINUED) Extent io wthlch the audh was consldered capable of dfyt•ctlng Irregularftles. Includlng fraud IrTegulafltkn. includiry fraud, are Instance5 Of norpcompllance wltt) laws and reg￿a￿On8. We deslgn proGgdures in Ilne wllh our responslbllities. oullNied above and on the Fln8nclal Repr￿1￿j Councll'8 website. lo detsct mateTial rni58talemènts in re5PgCt of Irregularititss, IncltKllng fraud. We obtaln and update our undeTStandlng of the enuty, Its acuvltlgs. hs control etwronment, and lik&W ftrture developments, Including in reballon to the legal and wulalory framawork applicable and how the enllty Is comptying vthth Ihat framework. Based on this understanding, we identify and assess the rlsks of MaterLql mls8tstemenl of the Ilnanclal statement8, whether due to fraud c* error, design and perfom) audlt procedures respon￿Ve lo those tsks, and obtain audil evldence that 1$ su￿lent and approp￿te lo pro￿9 a basiB for our oplnlon. Th15 inGludes conTAderat￿n of the rlsk of acts by the entty that were contrary to appli(xble laws and rgJula1lc￿6, irKluding fr8ud. In resFfme to the rlsk oflrregularities and non-conyjlbncewlth laws and regul8llons, indudlng fraud, wedesigned prctedures which In¢luded: Enqulry of management and Ih)s0 cthargèd vAlh goveman¢e around a¢￿al and potenti￿ lttbalion and clalms as well a8 aGtual. Susp￿ted and al]eged fraud: Revlewing mlnules of meetlngs ofthose charged wllh governan￿. Assesslng the exlenl of ¢omplkgnce witt) the laws ar￿ regulatlons ¢onsidgred to have a dlrect matetsl eff￿1 on the tlnancial Statements or the operations ofthe Ch8rty through ￿N￿lry and inspadcffl.. Revlewlng fingnc1818latemont disck)sures and testing lo supwyng documtsnlalFon to a8se6$ )mpllanGe with appllcab18 laws and regulatlc*bS', Porformlng audit work over the iisk of managem8nl blas and oveTrlde of controls, including testing of J￿rnal entrles and other adlustsnents ftjr appropri8leness. evaluating the buslne88 rationale of slgnifiGant transa¢lKJns outside the norFrol course of buslness and reviewing accounliro estimates indicator5 of polentHJl bl8S. Bacause of the inherent Ilmitatlons of an audlL thgre is a rl8k that we wlll not detect all Irregularltles, knchjding those leading to a materlal mls8tatsm8nt irb the financial statements or non-complian￿ wllh regulauon. This dsk increas&8 the more that oompllance a law or regulation is rernved from the events aNI Iransacbons refteot¢d In the flnanci81 statements, a5 we will bg less Ilkety to beKsrne aware of Instances of non-compliance. The risk of not detecting a mgterial misstal8rrEnt resultlng from fraud is hlgher than for one resulllng from error, as fraud may Involve LY)Ilusion, forgery, Intenlfonal om￿s￿n$, misrapre8entatiQn6, or the ovwride of iDtemal control. Uso of our roport This reFQrt Is made sdoty lo th8 Charity's trustee. as a b)dy, In acK#)rdBnrA wlth the Charltk5 Act 2011. Our s￿1 work has been undertaken so that we might state to the Charity's trustee those matters we are requlred 10 5ts1e to them in an aud￿0￿8 r8WJrt and for no other purpose. To the fullest exlont permttted by law. we do not aGcepl QT assume respons￿lI[ty to anyone other than the Charity and the Charlty'8 trustee, as a body. for our auditwork, for repor¢ or for the oplnlon5 vffj have formgj. Susanna Cas6ey (S8nlov Statutory Audltoy) For and on behalf of Azets Audlt Sgrvlces Chartgred A¢￿untants 21 Sep18mbgr 2023 statutory Audltor Fle81 Hou8e New Road Lancas+fjr LAI 1EQ Dixon Almshouse Charlty Statsm•nt of flnanclal actlvltlos for tho year ènded 31 March 2023 Unre8trktBd 2023 Total 2023 Total 2022 Income from.. Ch8rltabbe actDilties InveStrn￿ts 32.587 32￿87 303 32.563 74 32,890 32M90 32,637 Charltabl8 activlttes 28.368 28,368 25,607 28,368 25,368 25.607 Net oxpendlture bpfore galns and tran6ler• 4,522 4,522 7,030 {Loss)IGaln on InVestM￿ts 15n 167} 134 Net movements In fund8 4,465 4,465 7,164 Reconclllatlon in fund8 Balan¢8 brought forward at 1 Apnl 2022 Movement In funds 358,335 4,465 358,335 4rt66 351,171 7,164 Balance carrled fonvard at 31 Mar¢h 2023 362,800 262,800 358,335 The notes on pages 10 to 18 form part of these fina[￿la1 statements. Dixon Almshouse Charity ststoThnt of Ilnanclal po8hlon at 31 M4r¢h 2023 Nots 2023 2023 2022 2022 Flxed assets Tanglble assets Investments 218,673 1.998 215,162 2,055 220,871 217,217 Gurfvnt a680ts Debtors Cash al bank 10 1N62 154,418 149,683 149,711 156.wlo Credltorn: amount8 fallkng duo wlthln ono year 11 (7,682) (14,752) Not curront aB•ots 142.129 141.118 Not assets 36WO 35B,335 Fund8 Pemanenl 8nd￿￿ed fvnd Unrgstrictsd Designated reserves GeneAI fund8 1,Crf)1 39N83 312,336 39,463 317A71 361,799 3FI,334 T*)tsl lund8 12 362,800 368,335 The flnan¢181 statements wer8 aFvoved by the Board ofTtU5tee and aulhorf5ed for issug on 21 September 2023. Arcon Houslng As$oclatlon Ltd TruBIo• Charlty number- 223045 The notss on pages 10 10 18 form part ofthese financlal 8ts1ements. Dixon Almshouse Charlty Nots8 fonnlng part ￿ tho Ilnanclal stat•m•nts for tho yaar ond¢d 31 March 2023 Accounting policle8 The financial ststemgnls have been prepared In occor(lanc8 wtth the Ch8rTtie8 SORP 2nd Editlon IFRS 1021- A(xounilThJ and Reporting by Charlties: Statew*ntol Recommended Pfaotice applicable lo charities preparkng their accounts In 8ccordanoe h￿th the Charitles SORP IFRS 1(r21 and the charft￿8 AGI 2011. As8ets 8nd U8bllltle5 are Init￿11¥ r£wJnlsed at h1810r￿al cc*t or tran6aciion value unle88 othenylse stated in the relevant acts)unting potlcy. All an￿Unts are presented In pound8 8terfkng and aro rounded to the near881 £1. The Tru8te8 ¢onsldetS that the Charity me818 the definS1ion of a Publk Bengfft Entity und8r FRS11r2. The fcllovAng prinGip81 accounting p)Ikles have b8en appiled: InoonE represents rental Income ￿eNable and other Income. Irthme 15 r￿gntsed wheye there Is eniluemonl, certainty of recelpt and the amount can bè measured wlth Slrfficlenl Tellablllty. Renlal Income Is rocognls8d when the property 1$ available for18t, nel of volds on a recelvabb basis. Investm2nl Incon￿18 recoyni38d on a rer*fvable basls. Interest on funds h8IJ on deposit 18 included when recelvablg And the amount ran be measured rellably by the Charity: this Is nomaity upon notlfknadon of Ihe Interest paid or payable by the In81ittrtion wllh whom the fvnd5 arg deposited. Exp8ndlture Expendlture on charftable athit*s relates to 811 costs of ￿ldIng housing accommodation. EXp￿lIt￿le on charllabie aGtlvlties is incurrèj on directty undertaklng the &livities which further the Charity's Obl￿tIVes, a5 wo11 as any associated support GO8ts. Support costs of the Charlly reprewil the audit feeB, adw¥nlstrallon costs and ffin8nee costs. Tanglblo flxedass•ts Tanglble fixwj as$8ls are depreclated over thelr usefvl lh￿5 ta￿n9 Into account re8klual value¥, where approprlate. The aolual Ibves of Ihe 88sets and residualvalue3 are as*8sed annually and may vary d8pendlng on a numter of factors. In re4s8essing asset Iwes, factor8 such as lechnologkal Innovation, product lif6 cycles and malnlenanc8 prograrwnes are taken Into account. Residual value assessments conslder issues such as futur8 market condi11￿s. the reMaIr￿n9 Ilfe of the asset and Projected disposal vglues. 10 Dlxon Almshouse Charity Notes formlng part of the financlal ststements for the year ond•d 31 VArch 2023 (contlnued) Accountlng pollclos (contlnuod) Houslng Pmpertlgs andDgpr•clarfon Housing propert*s for T8nlare stated at co81 loss accumulated depredallon. Freehold ￿nd13 not depreda￿￿. All properties are 18vlewed for Impa[m￿nt annually. Vlhere 8 houslng propety oomprfses or moré m8lor Components wllh substantialy different useful e¢onomlc Ilves c(Mnpon8nt is accounted for separately and depreciatsd over its individual useful econom￿ Ille. Expenditure relatng to the 8ubs4uent repla¢%m8nt or renewal of components Is caplta118ed a8 Incurred. Compomnt UEL N6sv bulld housiNJ struclure External W￿kS 125 year8 40 years 60 years 40 years 30 years 30 years 15 years 30 years 20 years wndOw￿Do￿rS Electrical Balhrwms 8oi18rs Heatlng 5￿temS lexdudlng boll8r8) Kilchens Revl&w5 for trnpaIrff￿nt of houslng propertle8 8re GBrried outwhen a trigger has ctturred and any Impalmenl In a cash generatlng unit Is recogn15ed by a charge lo the Statement of Comprehensive Inc(xng. Impairment Is recognised where the carrylng value of a cash generating unlt exceeds the hi￿er of Its net realisable value or tts value In use. A Gash gen8r8tlng Un￿13 nom81ty a group of p[D￿rti9￿ at sch8me level whose tssh Income can bg separately identified. Fowowlng a trigger for impairment. the Charlty perfornis ImpaIr￿￿￿t tests based on falrvalue less costs to sell or a value in use cakulallon. The f8lrvalue1888 costs to Sell calcUkt￿)n is based on avaIla￿e data from sale5 tran$actKJns In an am's length transadon on slmi5ar oash generatlng units {propertk81 or obseTvablg market prioe¥ ￿5S Incremental costs for di5poslng of the propertles. Th8 value in use calcuLgllon Is based on either a d8pre¢laled replacement C08t or a discounted cash flow model. The depredated replaCem￿t cost is based on avallabk data of the cost of constructlng or acquldng replacemenl properties to provld8 the same thel of servlce Fthntial lo the Charity as th8 exbtiTrJ propgrty. The Gash flows are derived from the bu$lness pion the next 30 years and do not Include restwcturing actwities that the Charfty is not yet peTmltted to or signiflcant future Investments that wlll whanGe the assefs perfOrMar￿ of the cash generating unlt being tested. Th& recoverable amunt is most sensrtive to the dIs￿unt rale used forlhe discounted cash tlow nK*d81 a8 well as the expected future cash Ilows an(1 the growth rat8 Used for extrapok3tion purpose 11 Dixon Almshouse Charity Noto8 fomilng part of tho financl•l statemBnt8 lor thi year endgd 31 March 2023 (contlnuod) Accountlng policim fcontlnued) Investments Flxed asset investments are a fomi of financial Instrument and are inthally recognlsed at thelr transactlon cost $ub88qu8ntly measured al falr value at the Balance Shaet date, unless the valua cannot be mpasured reli8trAy in whkh c8sg it Is measured at cost less Impalmienl. Inveslnwnt galns and losses, whether re8118ed or unrealised. are comblned and presented aB 'Galn81lLoBse51 ￿ investments, in the Statement of Fln8ndal Athikles. Flnanclal Instruments The Charfty onty ha8finan¢lal assets arKf flnancial Ikt4NUes ofa klnd Ihatquallfy as tqsicfinanctsl Instruments. Baslc financial instruments are inlualty reccgnlsed at tr￿SaCt￿n value and subswuenty mea$ured al their setue￿￿nt value wllh the exceplw)n of bank k)ans whkh arB subsequenlly measured at amrtised c08t uslng the effethe Intsrest method. Fund 8ccountlng General fvnds are unrestricted funds whK* are avaSLqbie for use al the di5Gretlon of thgTru8iee in fvrtherance of Ihg general objeclfves of the Chartty and whloh have not been designated for other wrpts8e8. The Charity deslgnates funds In relation lo antirypated major and cydlcal repalrs. Transfers to De8vJnated FurKIg are b8s&J on Manageff*nt estimatès of future costs. Actual expendlture IB expensed to the Income and Expendlture A¢xount as incurred and a corrpspondlng relea8e of funds18 then mad* from the De8ignated Funds. The balanc8 rs reviewexl perlodl&8lly to ensure Its adgquw. Judpomonts and key tsouvce8 of OBtlmatlon and uD¢ertalnty The pr8parallon of the flnandal State￿￿ts requlres Tronagemenl lo make ludg8mnts, estimates 8nd assump￿on8 that affe¢lth8 amounts reFK)rted for a88et8 ond ILqblllUes as atthe Statemenlof Financlal Positlon dats and the amounts reported foT Income and expen8es durlng the year. However, the nature of estlmalion means thal actual Out￿Me8 could drfter from those estimates. The folkv*lng Judgements (apart from those invofving e8tinates) have had the mst slgnlfl¢8nt efleGt on amounts recognisèd In the financlal statements.. Going Gcn¢em assossment In the financial yew 2022123, the war In Ukrairse h88 Caused many suppty $lde shc)rtages, ¥￿cIfiCa1ty for energy supplies whlch in lum has caused uiffiatKJnary Increases in a wlde range of products and servkes. Imen revievAng the budget and forecasts the Trustee wnsKlered ils impact, both $￿cIfic81ty and on thg UK economy, tog8therwth risks 8round prI￿lple economic ￿SumP1￿$ and regulatory changes. The business plan foreeast8 show that th8 charity has sufvient liquid funds and debt ladlille8 in plac& that PYOVKle adequate resources lo fvnd all commilled capitsl eyndStUTe and Investrngnt programmes together wfth day-to• activliles. 12 Dlxon Almshouse Charity Notgs fornilng part of the flnanclal slatements tor tho yMr ¢nded 31 MArch 2023 {conllnued) Judgements and kny 8ourcg• of estlmatlon and untortalnty l¢ont'd) The ¢harlty's adivltles are expected lo ￿ltInue unGhanged for the fcre888abk fijture aTrJ the unrArtalnt188 considered, InGludlng the pandemlc 8nd the Inflatlonary pressur9$ d9s¢r1￿1 atA)ve. are not expected to have a material long temi Imp8cI on the charty's financial viabillty. On thls basi8 the TTuste8 has a reasonable expectstion that the charity has adwuats r880urce$ to continue In operBdon81 exlstence for the fore5ee8ble futUTe, belng a ￿ri0d of al least 12 months after the date on whlch the financlal state￿nts are slgned. Therelore, It continueB to adopt the going concern ba815 In the Ilnanclal slatements. Income from charttabl• •¢tMths Unmtrlctgd 2023 Unrgstrlctsd 2022 Houslng accommtslation and a88b8tanc J1587 32,563 Incomg from Invostm•nts UnreBtrl¢ted Unr•strlct¢d 2023 2022 Interost aNI dividends on investrnent deposit ￿C(￿fits 303 74 13 Dixon Almshouse Charity Note8 fornilng part of tho flnanclal 8tatemonts for the year gnded 31 March 2023 (eonllnuedj Expendlture on charltablg •ctlvltle8 2023 Dlrnct 2023 Support 2023 Total Hwlng aGG0Mmodet￿ 8nd asslstsnce 18.168 10,200 28,3e8 2022 DIMct 2022 Support 2022 Total Housing 8ccommc￿t1on and asslst8n¢e 16.720 9.882 25,e07 expenditure on charitable actlvlts8 was unrestrlcted in the Current and pr¥Jr year. DlreGt e>)sts charitsble acti￿88. 2023 2022 R8palr8 and malntenan¢e Prq)ety costs Heat and Ilght Depr￿latiOn Insura￿8 other direct 2,045 7,966 2,613 5,150 189 4390 350 196 613 184 92 18,166 15,725 Governancv ¢o8ts Iwhlch repres•nt the support ¢o$tsl Audll f868 Admin arKI finance costs Other support 1,828 73 8,299 1014 96 7￿72 10.200 9082 Audltor8' remunerallon 2023 2022 In relauon to gudil of flnanclal sialemgnts A¢c (14,7521 317,871 39,463 1,001 358,335 14 Flnanclal In8trument8 2023 2022 Flnanclal a88ets m8a8ur&Y al falr valu8 through profft an(110s5 2,055 Flnanclal assets measured at falr value through profft and I￿ ¢ompri8e equlty tiive8tsnents stated at market value. 15 Rolat•d paty tran$a¢tlon8 Amounts dug at start of year Amounts due atend of ye*r Rocelpts Payments 2023 n Housing 3,341 126,4841 912 2022 Arcon Housing 13,7891 13263 16,133) 3,341 Arcon Houslng AssoGlat￿n Ss the sole trusle8 of Charity. During the kyior ygar Arcon Housing As$￿￿￿tI)n also donated profess￿nal services in relation to the audlt accounts fe8s cl £1,8￿12022). 18 Dlxon Almshouse Charity Truslee's Annual R8POrt and Accounts Year Ended 31 March 2023 Charity Number.. 223045 Dlxon Almshouse Charity Truwt•o report and flnanclal statements for th• year endod 31 MArch 2023 Contènts Pago: Report of the Trustee Trustee's re8ponslt41111es statoment Independent audllofs rwort statement of IlnarKial actMti8s Statement of Ilnanclal posltlon 10 Notes forming part of tha financlal Ststemnts Trustse Arwn Housing AS$￿18140n Ltd Alrnhou8e Managar: Arcon Houslng AssI￿1all￿n Lld Comp•ny secretary and regl$terod oftlco Katsina Cunllff8. Quay Wes( Tr8fford 1th8rf Rwl, MpnGhester. M17 1HH Ch#rlty number 223045 80liGitors Antr￿ny Collln8 Sollcitors LLP, 134 EdmurKI Street. Birmingham. 83 2E8 Audltor Azets Audil Swkes, Fleet HoLtse, New Road, Lancastsr. kn411 EZ Bankern CAF B8nk, 25 Ilngs Hlll Avenue, Kings Hill, West Malllng. Kenl ME19 #klQ Dixon Almshouse Charity R•port of Tru8ts• for the yoar onded 31 March 2023 Th6 Trustee presents the annual report and Ihe audSted financial Statements for thg year ended 31 PAarch 2023. The Trustee has adoplvj the provi81ons of tho Chthlbes SORP 2vd Edition (FRS 102) In prewing the annual reFth and financl81 slaiements of the chadty. StN¢turp, Governan¢• and Man•ggm•nt Arcon H¢)using Associa￿0￿ were appolnied as Trustee on 1rtJung 2006. The Trustee was pwiousty The Order8 of St John Twstee Company. SIN¢thro and actfvitlg The Charlty. vthth Is regi8ter8d wlth The Ch￿ty Commlsslon, is uninwrFX)ratsd and has as Ils constit(thn a declaration of Irust dated 2 March 1968 las amended). In addluon, thg Trustee holds fund8 arwx Inveslmenls wth a vS8W to the fvther development of clkgrftBble Aln%. OryaniB#tlon The Bo*d ofArcon Houskng AssLthtlon m99ts slx IlrMs a year and c8rrw oul an Annual Revtew. As Corporate Truslge, the trustee m8ets at a year to discuss perlom)arKe, budgets and bu8lness pkr and approve the ftnanclal statements. Obfvctlv•s and Actlvlti The Charltable obie¢l8 of the Charity are: to provlde housing ¥ceommodatlon and 8881stsnce lo hèlp hw8e people whu are eÈderfy or di6abl&1 and as8oclated facilit* and amenmes for 8u¢h peopl& or the relief of the aged. dlsabled.. and to further su¢h general Gharitabl8 as tho Trustee datsrmine. Fln•nGlal revhw The totsl IncomSng resources were £32.587 for the year to 31￿ March 2023 12022.. £32,563>, produclNJ an oper81ing surplus of £4,522 12022: £7.030). Loss¢$ on Investments resulted in a surphjs of £4,465 for the 12 month perlod to 31gi March 202312022: surplus of £7.164). Accumulated surpluse5 held In general unre5tricled reserves were £322,336 {2022: £317,871). Golng conc•rn In the financl8I year 2022123, the war in Ukraln8 has caused rnry supply skle Sh￿$, ¥p8cificaWy for énergy suppliès whkh in luTn has causwj inflatlonary Increases in a wlde range DI products 8nd servlos. hen reVI￿n9 the budget and forecasts the Trustee wn$kiered ts impaGI both specif￿alty and on ts UK eCor￿my. together with risks around Prin￿pIe etxTh)mlc assumptlons and regulatory dlanges. Dixon Almshouse Charfty Roport of th• tN$t•e for Iho year endod 31 March 2023 (contlnued) The business plan forecasts show thal the ¢harlty has sufficient Ib4uld ftFnds In pLqce that provhje ￿equal• re8ouroe5 to fund all ￿MMNted capi￿1 expenditure and inveslnEnt pr(>JT8mme8 together wth day-to4ay acthS1ies. The L*arfVs actlvlUe$ 8re expgcted to oonwnue urnhanged for the foreseeable future and the ur￿ertaInl1¢3 considered, Including the p8ndemlo and the in11a￿Onary pressures des¢rlbed atx)V8, are not expected to have a material long term Impacton thechaTitls fin8n¢ial vlabllity. On this ba8iB the Trustee has8 reasonable expectatlon that the charfty has adequate r880ur¢e$ to continue in operational exlslertr for the foieseeable future, b?ing perfod of at kn112 mDnths aft¢r the date on whrh the linandal statements are signed. Therefo￿, il continL to adopt the golng concem basis In the financlal 8tateTrEnt#. RoseNe8 pollcy The Trustee has oJnskler8d the need for an appropriate levd of reserves In C￿junc110n with the gu￿anCe issu6 by The Chartty ConThissTrJn. In detsmining a res￿ F(fylty the Trustee has Identified core Dbiecuves to te met These 8$ folkA¥s: the establlshmentof adequat& free ￿serveS {excknYlng fixed a¥se161 to en8ure that th¢ Charty has Sdequate liquidity to meet any short-temi fluGtuations In ￿CuF￿neY levels ¢X excapllonal ¢os16 outside the 8¢ope of the budget, and the devebowEnl of a strong bala￿ sheei and Fos11￿@ cash Ilow io support the funding ofthe IMproVe￿nt of the exi8ting propwty. The level of reservgs required Is detemilned L￿Ing comprehensfve b￿￿gets and cash Ilow forecasts. Regular updates and rrKJnltoring of these d(Kuments 8re ￿rrI&d out to ensure that a surplus B achieved, and caBh fkjw is adBquate for the naeds of the Charlty. The benchmark for the ffee reserves Ihe Charty Is bets¥een £300.0 £500.000. At the year end the Charity has £382,800 of totsl fvnd$ {2022'. £358,335) of whkh £361,79912022.. £357,334) av8llable al the discretion ofthe trustee and deemed as free reseryes. Rlsk m•nagoment The Trustee has Identlfied the risks to whth the Charity 1$ exposed and, for each of these, an asses8trthit ha5 I￿en made as to th81r impact. severity, and probabillty. Internal and extemal contruls have I￿on revlèwed for effÈctlvene8s in mftlgaling these risks. System$ have bg8n a8tabli8hed to manage the18vel ol rlsk includlng the followlng.. The revlew of major Tlsk related Incldgnts (and steps taken to address these) at e￿h meetlng of th8 Board and thè Group Audm and Risk Commiltse ofthe Trustee. The internal control #ystem Is mon11(￿1 and SUPFQrted by external avdlt that is able lo wovlde an independent per8Fethe on the man&3ement of tsk w6th1n the Ch8rlty. The man4emènt and control of risk is an ongolng process In the Charity. Re8ponsiblllty for ensuring that there are appropriate risk managerMt and audlt 8truoluras In plac8, and for revlthvlng those structure8, Is delegalwj to the Group Audit and Risk Committee of the TTUSte8, which is a shared committee with the BO1￿ at Ho Grt)up. Dixon Almshouse Charity Report of th• truste• for y•#r ended 31 March 2023 (contlnuodj Funding Source and Expendltur• The princlpal fundlng Sources are charggs for prowding hou51ng accomrmdalbn. ExperKlltur8 IB all rekqi&J to provldlng th[8 accomnv)dallon. Future devolopm•nt• A slc¢kwndlllon survey has teen compl8ted whKh wlll Inkwm fulure ￿U￿ements for Inyrovements lo pro￿rt arKI prOgrarm￿ are èeirrfJ prepared a¢oxdlngty. Audltor Follovlng a retenderlng of the contract of extemal wdit, new auditor8, Azets Aud51 Serylce8 Llmited have audit• the current years aGcounts. A resolution forthe re4pp01nlw￿nt ofAzets Audll Servtce8 LimRe(l as auditcts of the Assoclallon L8 to be proposed at the Annual General mee￿ng in line wlth th8 temls of the Charlbes Act 2011. 14tlon Ltd ai l 0911023 Dlxon Almshouse Charity Tr￿t•0'9 rosponslblEltle6 sts¢ement forlhg y•arend•d 31 mA￿h 2023 The Tru5tse ly re8wn51ble for prewlng the Annual re￿￿rt and the financial 5ts18ments In a￿)rda￿e 8ppllcable law 8nd regulalon8. Ch8rlty Iw tequires the Trust8e to prepare fknarthl Stat￿nts for e&h flnanclal year In accordanGe with United Klngdom Generally A￿epted Accounllng Practtce {Unlted Klngdom Accounting Standards and appIl￿ble law). Under charty law the Trustee must not approve the financkgl statoments unless t￿Y are satisfied that they glve a true and fair ¥￿W ofthe state ofaffalrs of the charlty and of the incomlng resources and appllcBlon of reswrc88, Including the Income and expendI￿re. of the rharlty for Ihat pemd. In preparmw th888 flnan¢lal statements. the Trustee Is required to: select sultable accounting ptslides and th￿ apply them (xM9￿tsn1ty; make judgements aNI accountlng estlmats8 Ihat are rpasonab18 and prudenL' 8t81e whether appI￿abl& UK Accounung StandardB have tten followed, subl￿t to any materlal departures disck)sed and explalned In the financial slatsments,. and preparè the finandal statement8 on the oolng concern ba818 unlgss it Is In8pproprk8te to wesume that the arity wlll cc4)Ilnue In bu8ine88. The Tru8t8818 rasponslbl8 for Keeplng adequate aocountlng records that are sufftlent lo show and etyain the charity's tran880lKJns and discbse wrth reasonable accurw ai any Ilme the financial posI￿on of the ¢harity aTh enatAe them toensurè that the financial 8tatenEnts comply wlth the Chariiies Act2011. They are also responslble for safeguarding the assets of the tharlty and henB8 for taking reasonabl8 Steps for th8 proventk)n and deteC￿n of fraLKI and other Irregularfl￿. Dlxon Almshouse Charity INDEPENDENT AUDrroR'S REPORT TO ThE TRUSTEE OF DIXON ALMSHOUSE GHARITY Oplnlon W& have a￿d￿ed the finan¢lal ststements of Dixon Alm8knLr$e Charfty (the fharty'l for the pad(*l endpd 31 March 2023 whlch o)mprise the 8tatem8nl of financial o¢lvMies. the statement of ffinanclal posttlon and notes to the finanGlal $talgments. includlng 51gnlficanl 8wounllng Fo1￿￿s. The finandal reporting framework thal has been applied in their preparallon is applkabie law and UJ)iled Klngdom AC￿Un￿￿9 Standards, incI￿ling Flnanclal Repjrtlng Standard 102 The Flnancial ReFxJrtlng Standard a￿kable in the UK and Republic of IrdaThJ (United Kln9dom Generally Accepted Accounyng Pradee). In our opinlon the financlal 8tatemants: glve a truo and fair vlew of the Slate of tho Charlty's aff8irs as al 31 March 2023 arKI of surplu$ Ihe perfc*l then ended. have been propety wepared In accordance wSth Unlted Klngdom Generalty Aco*d Accounting Pr￿tIce,. and have been preparwj In xcordanGe wth the requlTerr£nts of the Charftlg5 AGI 2011. Bas1$ for oplnlon conduoted our audlt In aGcord8nce wlth InlgmaUonal Standards on Audibng (UK) IISAS (UK)) and appllcaL law. Our responsibilhles under thos8 Standards are furlhey descTR)ed in thfj Audllor's reswnslblllites foi the audll ol the flnanclal Statsments sectkin of our rgport. We are inde￿ndent of the Charity In 8ccordanGe wlth the ethical requirements that are relevant to our audit of the financlal ststements In the UK In¢ludk)g Ihg FRC'8 Ethical Slendard, and we have fulfillsd our olher eth￿al ￿sponSibl11t￿ In accordance these require[r￿nts. We belleve that the audrt evldence we have oblalned Is 8uffidenl and aPF*oprlate lo provide a b55h8 fcf our oplnion. Cc•nclu8lons rolatlng to golng conGorn In audltlng the financial statements, we have concluded that the Trusle8'3 use of the golng ¢0￿eM basls of 8cGountlng in the preparation of the finanGial Statements Is apEwrf8te. Based cn the work we have perfom*d, we have not Klentifled any matsdal uncertaInl￿ rglatlng to events or ¢ondilions that, IndNidualty oreolkdivety, rroy rast slgnffjcant doubl on the Charlvs abllity to continue as a golng concern for a period of al least twelve mnth8 from when the financial statements aTe authorlsed for Issue. Our re8pon8follltles and Ihe responsibil￿leS of th9 Trustè8 with resp8Gt to going concern are de8cribed Sn the relevant secllons of this roport othor Informatlon The other Information comprises the Informatlon Included In the annual repJrt other than the finanGial statemgnts ¥nd our auditovs report the￿On. The Trustee b responslble for thè other Inf0rrr￿11￿ Gontalned within the annual port. Our opinlon on the finanGbl statsments dc¢s not cover thg other Information and, except to Ihe extent olherwlae explully $taled In our report. we do not expre$8 any form of assurance condusion theTeon. Our responslbllty is to read the other Informallon and, in doing so, r£)nsKler whether the olher Infomialk)n Is wfjteriplly Inconsistent w6th the finan￿al stalemgrsts, or our knovAedge obtalned in the course of the audlL or otherwise app8ars lo be malarialty mi8Stated. If we Identlfy such materlal Inconsistendes or apparent material misstalgments, we are required to deteTmlne whether thlB gives rfse to a material misstatement in the ffinandal 8tatements themsetves. If, based cffi the WOTk we have perfomied, we conclude that there g matertal m158talemenl of thls other Infomialion, we 8r8 requlred lo report that facL We have nothlng to report In this ward. Dixon Almshouse Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF DIXON ALMSHOUSE CHARITY (CONTINUED) Matter8 on whlch we ar• requlrgd io roport by •xceptlon We have nothing to r8POrt in respeGt of the folknvlng matters In rel8tlon to whlch the Charltles Act 2011 requlre us to r8Wt lo you If, In our opinKm'. Iho Infomiatlon gpRn in thg Trustee's Annltal Report or the financlal year for whth the finandal statements are prepared are not consistent wlth the financlal staten*nts', or adequate a¢¢ounting records h8ve not been k6pL or Cgrtain dlsclosures of directors, remuneration speclfied ty law are not made; or the finandal slalements aTe not In agreementwith the 8¢counlng r￿OrdS and relum¥', or we h8V8 nol recefved all the informgllon arKI explanallon6 we requlre for our audlL Ro8ponslbllltlos of Trust As explai)ed more fulty In the Trustee's re8ponsiblitie8 statement Set out on page 4. the Trustee Is rgswnsiblg for the weparation of the flnBnclal Statements and for belng satisfied that they glve a tfue and falr vlew, and for Such kntemal contro5 as the board memb•r$ determine L8 necessary to enabl8 the preparabon of fIna￿la1 statements that are free from materfal mlsstatemenl. whether due to fraud or error. In preparing the financkl statements, the Trustee is responsible foT 888esslng th9 Charftys ability lo continue as a goh)g (y)noern, di5cbslng, as appllc8ble. matters related to golng concem and using the golng concern basls of accounflng unle86 the Trustee either intend io liquldate the Charlty ￿ to cease op8ralons, or hav¢ no re8118￿ alt￿native bul to do Audltoes vosponslbllltlfjs for th• audlt of the financlal statgments Our objethes ar¢ lo obtain reasonable a88urance about whethw the finandal statements as a wthole £re tree from material misstatement, whether due to fraud or error, arKt lo issue an 8uditorfs report that Indude8 our opinion. Reasonable a88uran¢e Is a high level of assurance bui is not a guaTantee that an audll conduGtsd In accordance wlth ISAS IUKI wlll a￿ayS delect a malerwl misstatement when It e￿$ts. Mlsstalements can ari8e from fraud or error and are considered mateTial if, Indivklualty or In the aggregats. th?y ccuWI reasonably be pected lo influgnce th8 economic deLisk*ns of us&s tsken on the basis of these finanGial $tstem8nts. A further description of our resF¥)nslbllltles Is 8V8llable on the FlnanGial Rèporting cou￿11.8 webslte aL' httpsjlwww.frc.org.ukjaud1torsrespor￿lblliIle$. Th18 desCriPtI)n forms part of Ouf a￿11t0T￿ report. Dlxon Almshouse Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF DIXON ALMSHOUSE CHARITY (CONTINUED) Extent io wthlch the audh was consldered capable of dfyt•ctlng Irregularftles. Includlng fraud IrTegulafltkn. includiry fraud, are Instance5 Of norpcompllance wltt) laws and reg￿a￿On8. We deslgn proGgdures in Ilne wllh our responslbllities. oullNied above and on the Fln8nclal Repr￿1￿j Councll'8 website. lo detsct mateTial rni58talemènts in re5PgCt of Irregularititss, IncltKllng fraud. We obtaln and update our undeTStandlng of the enuty, Its acuvltlgs. hs control etwronment, and lik&W ftrture developments, Including in reballon to the legal and wulalory framawork applicable and how the enllty Is comptying vthth Ihat framework. Based on this understanding, we identify and assess the rlsks of MaterLql mls8tstemenl of the Ilnanclal statement8, whether due to fraud c* error, design and perfom) audlt procedures respon￿Ve lo those tsks, and obtain audil evldence that 1$ su￿lent and approp￿te lo pro￿9 a basiB for our oplnlon. Th15 inGludes conTAderat￿n of the rlsk of acts by the entty that were contrary to appli(xble laws and rgJula1lc￿6, irKluding fr8ud. In resFfme to the rlsk oflrregularities and non-conyjlbncewlth laws and regul8llons, indudlng fraud, wedesigned prctedures which In¢luded: Enqulry of management and Ih)s0 cthargèd vAlh goveman¢e around a¢￿al and potenti￿ lttbalion and clalms as well a8 aGtual. Susp￿ted and al]eged fraud: Revlewing mlnules of meetlngs ofthose charged wllh governan￿. Assesslng the exlenl of ¢omplkgnce witt) the laws ar￿ regulatlons ¢onsidgred to have a dlrect matetsl eff￿1 on the tlnancial Statements or the operations ofthe Ch8rty through ￿N￿lry and inspadcffl.. Revlewlng fingnc1818latemont disck)sures and testing lo supwyng documtsnlalFon to a8se6$ )mpllanGe with appllcab18 laws and regulatlc*bS', Porformlng audit work over the iisk of managem8nl blas and oveTrlde of controls, including testing of J￿rnal entrles and other adlustsnents ftjr appropri8leness. evaluating the buslne88 rationale of slgnifiGant transa¢lKJns outside the norFrol course of buslness and reviewing accounliro estimates indicator5 of polentHJl bl8S. Bacause of the inherent Ilmitatlons of an audlL thgre is a rl8k that we wlll not detect all Irregularltles, knchjding those leading to a materlal mls8tatsm8nt irb the financial statements or non-complian￿ wllh regulauon. This dsk increas&8 the more that oompllance a law or regulation is rernved from the events aNI Iransacbons refteot¢d In the flnanci81 statements, a5 we will bg less Ilkety to beKsrne aware of Instances of non-compliance. The risk of not detecting a mgterial misstal8rrEnt resultlng from fraud is hlgher than for one resulllng from error, as fraud may Involve LY)Ilusion, forgery, Intenlfonal om￿s￿n$, misrapre8entatiQn6, or the ovwride of iDtemal control. Uso of our roport This reFQrt Is made sdoty lo th8 Charity's trustee. as a b)dy, In acK#)rdBnrA wlth the Charltk5 Act 2011. Our s￿1 work has been undertaken so that we might state to the Charity's trustee those matters we are requlred 10 5ts1e to them in an aud￿0￿8 r8WJrt and for no other purpose. To the fullest exlont permttted by law. we do not aGcepl QT assume respons￿lI[ty to anyone other than the Charity and the Charlty'8 trustee, as a body. for our auditwork, for repor¢ or for the oplnlon5 vffj have formgj. Susanna Cas6ey (S8nlov Statutory Audltoy) For and on behalf of Azets Audlt Sgrvlces Chartgred A¢￿untants 21 Sep18mbgr 2023 statutory Audltor Fle81 Hou8e New Road Lancas+fjr LAI 1EQ Dixon Almshouse Charlty Statsm•nt of flnanclal actlvltlos for tho year ènded 31 March 2023 Unre8trktBd 2023 Total 2023 Total 2022 Income from.. Ch8rltabbe actDilties InveStrn￿ts 32.587 32￿87 303 32.563 74 32,890 32M90 32,637 Charltabl8 activlttes 28.368 28,368 25,607 28,368 25,368 25.607 Net oxpendlture bpfore galns and tran6ler• 4,522 4,522 7,030 {Loss)IGaln on InVestM￿ts 15n 167} 134 Net movements In fund8 4,465 4,465 7,164 Reconclllatlon in fund8 Balan¢8 brought forward at 1 Apnl 2022 Movement In funds 358,335 4,465 358,335 4rt66 351,171 7,164 Balance carrled fonvard at 31 Mar¢h 2023 362,800 262,800 358,335 The notes on pages 10 to 18 form part of these fina[￿la1 statements. Dixon Almshouse Charity ststoThnt of Ilnanclal po8hlon at 31 M4r¢h 2023 Nots 2023 2023 2022 2022 Flxed assets Tanglble assets Investments 218,673 1.998 215,162 2,055 220,871 217,217 Gurfvnt a680ts Debtors Cash al bank 10 1N62 154,418 149,683 149,711 156.wlo Credltorn: amount8 fallkng duo wlthln ono year 11 (7,682) (14,752) Not curront aB•ots 142.129 141.118 Not assets 36WO 35B,335 Fund8 Pemanenl 8nd￿￿ed fvnd Unrgstrictsd Designated reserves GeneAI fund8 1,Crf)1 39N83 312,336 39,463 317A71 361,799 3FI,334 T*)tsl lund8 12 362,800 368,335 The flnan¢181 statements wer8 aFvoved by the Board ofTtU5tee and aulhorf5ed for issug on 21 September 2023. Arcon Houslng As$oclatlon Ltd TruBIo• Charlty number- 223045 The notss on pages 10 10 18 form part ofthese financlal 8ts1ements. Dixon Almshouse Charlty Nots8 fonnlng part ￿ tho Ilnanclal stat•m•nts for tho yaar ond¢d 31 March 2023 Accounting policle8 The financial ststemgnls have been prepared In occor(lanc8 wtth the Ch8rTtie8 SORP 2nd Editlon IFRS 1021- A(xounilThJ and Reporting by Charlties: Statew*ntol Recommended Pfaotice applicable lo charities preparkng their accounts In 8ccordanoe h￿th the Charitles SORP IFRS 1(r21 and the charft￿8 AGI 2011. As8ets 8nd U8bllltle5 are Init￿11¥ r£wJnlsed at h1810r￿al cc*t or tran6aciion value unle88 othenylse stated in the relevant acts)unting potlcy. All an￿Unts are presented In pound8 8terfkng and aro rounded to the near881 £1. The Tru8te8 ¢onsldetS that the Charity me818 the definS1ion of a Publk Bengfft Entity und8r FRS11r2. The fcllovAng prinGip81 accounting p)Ikles have b8en appiled: InoonE represents rental Income ￿eNable and other Income. Irthme 15 r￿gntsed wheye there Is eniluemonl, certainty of recelpt and the amount can bè measured wlth Slrfficlenl Tellablllty. Renlal Income Is rocognls8d when the property 1$ available for18t, nel of volds on a recelvabb basis. Investm2nl Incon￿18 recoyni38d on a rer*fvable basls. Interest on funds h8IJ on deposit 18 included when recelvablg And the amount ran be measured rellably by the Charity: this Is nomaity upon notlfknadon of Ihe Interest paid or payable by the In81ittrtion wllh whom the fvnd5 arg deposited. Exp8ndlture Expendlture on charftable athit*s relates to 811 costs of ￿ldIng housing accommodation. EXp￿lIt￿le on charllabie aGtlvlties is incurrèj on directty undertaklng the &livities which further the Charity's Obl￿tIVes, a5 wo11 as any associated support GO8ts. Support costs of the Charlly reprewil the audit feeB, adw¥nlstrallon costs and ffin8nee costs. Tanglblo flxedass•ts Tanglble fixwj as$8ls are depreclated over thelr usefvl lh￿5 ta￿n9 Into account re8klual value¥, where approprlate. The aolual Ibves of Ihe 88sets and residualvalue3 are as*8sed annually and may vary d8pendlng on a numter of factors. In re4s8essing asset Iwes, factor8 such as lechnologkal Innovation, product lif6 cycles and malnlenanc8 prograrwnes are taken Into account. Residual value assessments conslder issues such as futur8 market condi11￿s. the reMaIr￿n9 Ilfe of the asset and Projected disposal vglues. 10 Dlxon Almshouse Charity Notes formlng part of the financlal ststements for the year ond•d 31 VArch 2023 (contlnued) Accountlng pollclos (contlnuod) Houslng Pmpertlgs andDgpr•clarfon Housing propert*s for T8nlare stated at co81 loss accumulated depredallon. Freehold ￿nd13 not depreda￿￿. All properties are 18vlewed for Impa[m￿nt annually. Vlhere 8 houslng propety oomprfses or moré m8lor Components wllh substantialy different useful e¢onomlc Ilves c(Mnpon8nt is accounted for separately and depreciatsd over its individual useful econom￿ Ille. Expenditure relatng to the 8ubs4uent repla¢%m8nt or renewal of components Is caplta118ed a8 Incurred. Compomnt UEL N6sv bulld housiNJ struclure External W￿kS 125 year8 40 years 60 years 40 years 30 years 30 years 15 years 30 years 20 years wndOw￿Do￿rS Electrical Balhrwms 8oi18rs Heatlng 5￿temS lexdudlng boll8r8) Kilchens Revl&w5 for trnpaIrff￿nt of houslng propertle8 8re GBrried outwhen a trigger has ctturred and any Impalmenl In a cash generatlng unit Is recogn15ed by a charge lo the Statement of Comprehensive Inc(xng. Impairment Is recognised where the carrylng value of a cash generating unlt exceeds the hi￿er of Its net realisable value or tts value In use. A Gash gen8r8tlng Un￿13 nom81ty a group of p[D￿rti9￿ at sch8me level whose tssh Income can bg separately identified. Fowowlng a trigger for impairment. the Charlty perfornis ImpaIr￿￿￿t tests based on falrvalue less costs to sell or a value in use cakulallon. The f8lrvalue1888 costs to Sell calcUkt￿)n is based on avaIla￿e data from sale5 tran$actKJns In an am's length transadon on slmi5ar oash generatlng units {propertk81 or obseTvablg market prioe¥ ￿5S Incremental costs for di5poslng of the propertles. Th8 value in use calcuLgllon Is based on either a d8pre¢laled replacement C08t or a discounted cash flow model. The depredated replaCem￿t cost is based on avallabk data of the cost of constructlng or acquldng replacemenl properties to provld8 the same thel of servlce Fthntial lo the Charity as th8 exbtiTrJ propgrty. The Gash flows are derived from the bu$lness pion the next 30 years and do not Include restwcturing actwities that the Charfty is not yet peTmltted to or signiflcant future Investments that wlll whanGe the assefs perfOrMar￿ of the cash generating unlt being tested. Th& recoverable amunt is most sensrtive to the dIs￿unt rale used forlhe discounted cash tlow nK*d81 a8 well as the expected future cash Ilows an(1 the growth rat8 Used for extrapok3tion purpose 11 Dixon Almshouse Charity Noto8 fomilng part of tho financl•l statemBnt8 lor thi year endgd 31 March 2023 (contlnuod) Accountlng policim fcontlnued) Investments Flxed asset investments are a fomi of financial Instrument and are inthally recognlsed at thelr transactlon cost $ub88qu8ntly measured al falr value at the Balance Shaet date, unless the valua cannot be mpasured reli8trAy in whkh c8sg it Is measured at cost less Impalmienl. Inveslnwnt galns and losses, whether re8118ed or unrealised. are comblned and presented aB 'Galn81lLoBse51 ￿ investments, in the Statement of Fln8ndal Athikles. Flnanclal Instruments The Charfty onty ha8finan¢lal assets arKf flnancial Ikt4NUes ofa klnd Ihatquallfy as tqsicfinanctsl Instruments. Baslc financial instruments are inlualty reccgnlsed at tr￿SaCt￿n value and subswuenty mea$ured al their setue￿￿nt value wllh the exceplw)n of bank k)ans whkh arB subsequenlly measured at amrtised c08t uslng the effethe Intsrest method. Fund 8ccountlng General fvnds are unrestricted funds whK* are avaSLqbie for use al the di5Gretlon of thgTru8iee in fvrtherance of Ihg general objeclfves of the Chartty and whloh have not been designated for other wrpts8e8. The Charity deslgnates funds In relation lo antirypated major and cydlcal repalrs. Transfers to De8vJnated FurKIg are b8s&J on Manageff*nt estimatès of future costs. Actual expendlture IB expensed to the Income and Expendlture A¢xount as incurred and a corrpspondlng relea8e of funds18 then mad* from the De8ignated Funds. The balanc8 rs reviewexl perlodl&8lly to ensure Its adgquw. Judpomonts and key tsouvce8 of OBtlmatlon and uD¢ertalnty The pr8parallon of the flnandal State￿￿ts requlres Tronagemenl lo make ludg8mnts, estimates 8nd assump￿on8 that affe¢lth8 amounts reFK)rted for a88et8 ond ILqblllUes as atthe Statemenlof Financlal Positlon dats and the amounts reported foT Income and expen8es durlng the year. However, the nature of estlmalion means thal actual Out￿Me8 could drfter from those estimates. The folkv*lng Judgements (apart from those invofving e8tinates) have had the mst slgnlfl¢8nt efleGt on amounts recognisèd In the financlal statements.. Going Gcn¢em assossment In the financial yew 2022123, the war In Ukrairse h88 Caused many suppty $lde shc)rtages, ¥￿cIfiCa1ty for energy supplies whlch in lum has caused uiffiatKJnary Increases in a wlde range of products and servkes. Imen revievAng the budget and forecasts the Trustee wnsKlered ils impact, both $￿cIfic81ty and on thg UK economy, tog8therwth risks 8round prI￿lple economic ￿SumP1￿$ and regulatory changes. The business plan foreeast8 show that th8 charity has sufvient liquid funds and debt ladlille8 in plac& that PYOVKle adequate resources lo fvnd all commilled capitsl eyndStUTe and Investrngnt programmes together wfth day-to• activliles. 12 Dlxon Almshouse Charity Notgs fornilng part of the flnanclal slatements tor tho yMr ¢nded 31 MArch 2023 {conllnued) Judgements and kny 8ourcg• of estlmatlon and untortalnty l¢ont'd) The ¢harlty's adivltles are expected lo ￿ltInue unGhanged for the fcre888abk fijture aTrJ the unrArtalnt188 considered, InGludlng the pandemlc 8nd the Inflatlonary pressur9$ d9s¢r1￿1 atA)ve. are not expected to have a material long temi Imp8cI on the charty's financial viabillty. On thls basi8 the TTuste8 has a reasonable expectstion that the charity has adwuats r880urce$ to continue In operBdon81 exlstence for the fore5ee8ble futUTe, belng a ￿ri0d of al least 12 months after the date on whlch the financlal state￿nts are slgned. Therelore, It continueB to adopt the going concern ba815 In the Ilnanclal slatements. Income from charttabl• •¢tMths Unmtrlctgd 2023 Unrgstrlctsd 2022 Houslng accommtslation and a88b8tanc J1587 32,563 Incomg from Invostm•nts UnreBtrl¢ted Unr•strlct¢d 2023 2022 Interost aNI dividends on investrnent deposit ￿C(￿fits 303 74 13 Dixon Almshouse Charity Note8 fornilng part of tho flnanclal 8tatemonts for the year gnded 31 March 2023 (eonllnuedj Expendlture on charltablg •ctlvltle8 2023 Dlrnct 2023 Support 2023 Total Hwlng aGG0Mmodet￿ 8nd asslstsnce 18.168 10,200 28,3e8 2022 DIMct 2022 Support 2022 Total Housing 8ccommc￿t1on and asslst8n¢e 16.720 9.882 25,e07 expenditure on charitable actlvlts8 was unrestrlcted in the Current and pr¥Jr year. DlreGt e>)sts charitsble acti￿88. 2023 2022 R8palr8 and malntenan¢e Prq)ety costs Heat and Ilght Depr￿latiOn Insura￿8 other direct 2,045 7,966 2,613 5,150 189 4390 350 196 613 184 92 18,166 15,725 Governancv ¢o8ts Iwhlch repres•nt the support ¢o$tsl Audll f868 Admin arKI finance costs Other support 1,828 73 8,299 1014 96 7￿72 10.200 9082 Audltor8' remunerallon 2023 2022 In relauon to gudil of flnanclal sialemgnts A¢c (14,7521 317,871 39,463 1,001 358,335 14 Flnanclal In8trument8 2023 2022 Flnanclal a88ets m8a8ur&Y al falr valu8 through profft an(110s5 2,055 Flnanclal assets measured at falr value through profft and I￿ ¢ompri8e equlty tiive8tsnents stated at market value. 15 Rolat•d paty tran$a¢tlon8 Amounts dug at start of year Amounts due atend of ye*r Rocelpts Payments 2023 n Housing 3,341 126,4841 912 2022 Arcon Housing 13,7891 13263 16,133) 3,341 Arcon Houslng AssoGlat￿n Ss the sole trusle8 of Charity. During the kyior ygar Arcon Housing As$￿￿￿tI)n also donated profess￿nal services in relation to the audlt accounts fe8s cl £1,8￿12022). 18 Fleet House New Road Lancaster LA1 1EZ T: +44 (0) 1524 541 200 F: +44 (0) 1524 541 201 azets.co.uk ## **Private & Confidential** Our ref: SC/AHM/C-10011797 The Board Members Bolton At Home Limited 98 Waters Meeting Road Bolton BL1 8SW 31 August 2023 Dear Sirs ## **Bolton at Home Limited and its subsidiaries** ## **Audit findings for the year ended 31 March 2023** This Audit Findings Letter highlights the significant findings arising from the audit, for the benefit of those charged with governance. We appreciate that you may be aware of some of the matters contained in this report, however as required by International Standard on Auditing (UK) 260 we are required to communicate such matters to you formally. As auditors we are responsible for performing the audit, in accordance with International Standards on Auditing (UK) (ISAs (UK)), which is directed towards forming and expressing an opinion on the financial statements that have been prepared on behalf of management with the oversight of those charged with governance. The audit of the company’s financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. This letter has been provided on the basis that it is for the information of the Board and management of Bolton at Home Ltd and its subsidiaries only and that it will not be distributed to others, quoted or referred to, in whole or in part, without our prior written consent. ## **Audit status and audit opinion** Our audit work is substantially complete and there are currently no matters which would require modification of our audit report, subject to the outstanding matters detailed below. - Letter of supports for going concern status - Final financial statements - Final audit partner review - Receipt of signed management letters of representation - Receipt of signed financial statements We do not propose any modifications to our audit opinions which are unqualified. ## **Significant findings** ## **Findings related to significant risks** Significant risks are defined by professional standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement. |**Risk **|**Audit approach and conclusions**| |---|---| |**Management override of controls**|| |Management is in a unique position to perpetrate fraud|Our audit testing included a review of and detailed| |because of management's ability to manipulate|journals testing as well as a review of accounting| |accounting records and prepare fraudulent financial|estimates used and the rationale behind them.| |statements by overriding controls that otherwise appear
to be operating effectively.|
We did not identify evidence of management override of
controls.| |Although the level of risk of management override of|| |controls will vary from entity to entity, the risk is|| |nevertheless present in all entities. Due to the|| |unpredictable way in which such override could occur, it|| |is a risk of material misstatement due to fraud and thus|| |a significant risk.|| ## **Risk of material misstatement: High** ## **Going Concern** In line with the approach required by ISA 570, going For each entity we reviewed and assessed post year concern has been identified as a significant risk. end forecasts and performance to analyse the ability of the entities to be a going concern for the next 12 **Risk of material misstatement: High** months. We also factored in available funding and each entities funding needs for the next 12 months. |On the basis Bolton at Home are willing to provide a| |---| |letter of support to:| |•
Maxmedia Communications Ltd,| |•
R-Haus Living Ltd, and| |•
Stonecross Homes Ltd,| |then all entities would appear to be a going concern.| ## **Other identified risks** |**Risk **|**Audit approach **| |---|---| |**Fraud in revenue recognition**|| |Material misstatement due to fraudulent financial|We have performed detailed substantive audit testing| |reporting relating to revenue recognition is a presumed|on income streams during and around the year end.| |risk in ISA 240 (The Auditor's Responsibilities Relating|We haven’t noted any errors from our testing to report.| |to Fraud in an Audit of Financial Statements).|| |**Inherent risk of material misstatement:**|Please see Appendix III for an observed internal control
deficiency.| |•
**Accuracy:High**|| |•
**Completeness:High**|| |•
**Cut off:High**|| 2 ## **Provisions for disrepairs and repair and improvements** **improvements** We obtained and reviewed the basis of the calculations The provision is a material estimate in the financial and corroborated back to appropriate supporting statements therefore at risk of material misstatement. evidence. We did not note any management bias in the **Inherent risk of material misstatement:** assumptions used to estimate the provision required. - **Completeness: High** Please see Bolton at Home’s Letter of Representation where we have documented a point on the provisions. ## **Valuation of fixed assets** The value of investment properties should be reviewed We have reviewed the external valuation reports and annually. compared these to the carrying values of fixed assets, There are properties held for sale which could be held investment properties and properties held for sale. at an overstated value in the financial statements. We also considered impairment indicators and reviewed the external valuer’s experience and independence **Inherent risk of material misstatement:** from the Bolton at Home Group. • **Valuation: High** We have not noted anything to report based on our work. ## **Defined benefit pension scheme** There is a risk that the liability and disclosures in We have reviewed the actuarial valuation report respect of the defined benefit pension scheme with including the assumptions which underpin the Greater Manchester Pension Fund may be materially calculation. We have also reviewed the actuary’s misstated. experience and independence from the Bolton at Home Group. The financials and disclosures are consistent with the valuation report that has been provided. Please see Opening Balances for comments on the defined benefit pension scheme opening balance adjustment. 3 ## **Opening balances** As Azets Audit Services was not the auditor in the previous financial year, there is a risk that the 2023 audit report would need to be modified if we did not obtain sufficient appropriate evidence to support the opening balances, and therefore the movement in the year ended 31 March 2023, are free from material misstatement. We have reviewed the prior year auditor’s working papers and audit reports. We have undertaken testing on the Balance Sheet where appropriate for opening items. Before the audit fieldwork commenced, management identified and highlighted a variance on the defined benefit pension scheme between the report and the financial statements. A second version of the actuarial valuation report was issued in July 2022 however the amendments did not get updated in the financial statements before signing in September 2022. Management discussed this with us and we agreed that given the magnitude of the financial impact, a prior period adjustment was necessary. The adjustment was favourable, to the amount of £2.851m. At both Group and Association level, the: • statement of comprehensive income, • statement of changes in reserves, • balance sheet, and • supporting notes have all been adjusted to reflect this prior period adjustment. There were no changes to our audit plan previously communicated to you. ## **Going concern** We concur with management’s assessment that it is appropriate to continue to adopt the going concern basis and there are no material uncertainties relating to going concern which should be disclosed in the financial statements. Please see the going concern section, under Significant Findings, for our comments on the necessary letters of support which are needed to support this conclusion. ## **Accounting policies, estimates and disclosures** The accounting policies used in preparing the financial statements are unchanged from the previous year. Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the company. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the company. ## **Other communication requirements** ## **Fraud or suspected fraud** We have not been made aware of any other incidents in the period and no other issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. In the event that the directors wish to obtain enhanced assurance with regard to the effectiveness of internal control in preventing and detecting fraud we should be happy to provide additional services. 4 ## **Non-compliance with laws and regulations** As part of our standard audit testing, we have reviewed the laws and regulations impacting the business. There are no indications from this work of any significant incidences of non-compliance or material breaches of laws and regulations stopping the business from continuing as a going concern or that would necessitate a provision or contingent liability. There are also many other laws and regulations relating to health and safety as well as human resources generally and industry specific requirements. We are not aware of any significant incidences of noncompliance. ## **Written representations** We enclose the draft letters of representation which we will request the Board to sign at the same time as the financial statements are approved. ## **Related parties** We are not aware of any related party transactions which have not been disclosed. ## **Confirmations from third parties** All requested confirmations have been received for which we undertook alternative audit procedures. ## **Misstatements** We are required to inform you of any significant misstatements within the financial statements presented for audit that have been discovered during the course of our audit. Details of items corrected following discussions with management are set out in Appendix I. In addition, a number of non-trivial uncorrected misstatements were discovered during the course of our audit and a summary of these can be found within Appendix II to this letter. ## **Internal controls** The purpose of an audit is to express an opinion on the financial statements. As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. However, this work was not for the purpose of expressing an opinion on the effectiveness of internal controls. We are required to report to you in writing, significant deficiencies in internal controls that we have identified during the audit. These matters are limited to those which we have concluded are of sufficient importance to merit being reported to you. The scope of our work is not designed to be an extensive review of all internal controls. If we had performed more extensive procedures, we might have identified more deficiencies than those reported in Appendix III below. ## **Independence** In accordance with our profession’s ethical guidance and further to our audit letter to you dated 22 February 2023 confirming audit planning arrangements there are no further matters to bring to your attention in relation to our integrity, objectivity and independence. We confirm that Azets Audit Services and the engagement team complied with the FRC’s Ethical Standards. We confirm that all threats to our independence have been properly addressed through appropriate safeguards and that we are independent and able to express an objective opinion on the financial statements. The contents of this report relate only to those matters which came to our attention during the conduct of our normal audit procedures which are designed primarily for the purpose of expressing our opinion on the financial statements. We do not accept any responsibility for any loss occasioned to any third party acting 5 or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. We would like to take this opportunity to record our appreciation for the kind assistance provided by your team during our audit. If we can be of any further assistance, please contact Susanna Cassey and Adam Hilton-Mason. Yours faithfully, ## **Azets Audit Services** 6 ## **Appendix I Corrected misstatements** ## **Bolton at Home Ltd** |**No**|**Detail**|**Profit and loss account**|**Profit and loss account**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| |||**Dr**|
**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Correct presentation of deferred, other and recycled capital grants|||1,672,417|(1,672,417)|-| ## **Bolton at Home Ltd - prior period error (FY 2022)** |**No**|**Detail**|**Profit and loss account**|**Profit and loss account**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| |||**Dr**|
**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |Total comprehensive incomeper FY22 signed accounts||||||**66,679,000**| |1|Correction for the defined benefit pension valuation||(2,851,000)||2,851,000|2,851,000| |Restated total comprehensive income for FY22||||||**69,530,000**| ## **Starts With You** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Reclassifybalance togroupcreditors|||4,000|4,000|-| 7 There were no adjustments made as a result of the audit in the following entities: - Arcon Housing Association - Maxmedia Communications - R-Haus Living - Stonecross Homes - Dixon Almshouse - James Ainsworth - Fairfield Moravian 8 ## **Appendix II Unadjusted misstatements** ## **Bolton at Home Ltd** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Reclassify a portion of the bad debt provision to other debtors rather than rent|||991,491|(991,491)|-| ||debtors|||||| |Net|effect to auditedprofit/(loss)|||||**-**| ## **Stonecross Homes Ltd** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|VAT reclassification between current assets and liabilities|||5,783|5,783|-| |Net|effect to auditedprofit/(loss)|||||**-**| ## **Maxmedia Communications Ltd** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Recognise the corporation and deferred tax chargesper the computation||(9,955)|10,728|(773)|9,955| |Net|effect to auditedprofit/(loss)|||||**9,955**| 9 There were no unadjusted items identified as a result of the audit in the following entities: - Arcon Housing Association - R-Haus Living - Starts With You - Dixon Almshouse - James Ainsworth - Fairfield Moravian We have discussed the uncorrected misstatements with management and have confirmed that individually and in aggregate the effect is not material. 10 ## **Appendix III** ## **Internal controls** Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we have reported these to you below. Key: Significant deficiency in internal control, Other deficiency in internal control, Other observations from the audit |Area|Observation|Implication|Recommendation|Managementresponse| |---|---|---|---|---| |**No significant**||||| |**deficiencies noted**||||| |**Tenancy**|As part of our revenue testing|There could be disputes further|Given the volume of tenancy|| |**Agreements**|on Bolton at Home, there were|down the line with no tenancy|agreements, we recommend|| ||3 tenancy agreements out of 54|
agreement to support any|that random spot checks are|| ||which could not be located.|claim/action the business may|performed on existing tenants|| ||From discussions with
management, there is a risk
that these were lost as part of|need to take.|to ensure appropriate and
necessary documentation is
held in place.|| ||the electronic transfer.|||| |**Land Registry**|As part of our testing of|Legal ownership on the title|Checks are undertaken|| ||properties in R-Haus Living, we|deeds were not transferred.|internally on new properties|| ||identified that the Swinton Vale||acquired going forward to|| ||properties land registry’s were||ensure that all documentation|| ||never transferred from the||have been appropriately|| ||previous owners into R-Haus||updated.|| ||Living name.|||| ||From discussions with|||| ||management, it was identified|||| ||that the solicitor had failed to do|||| ||the necessary transfer.|||| **Employee Numbers** We observed that the limited company entities are calculating and presenting the employee numbers disclosure on a full time equivalent basis rather than an average basis. Employee numbers is one of We recommend that the limited the key metrics for determining company entities prepare both a company size, so there is a average and full time equivalent risk that the financial calculations for employee statements are prepared on the numbers. incorrect basis. This is done for ease of consolidating the employee numbers. 12