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2020-12-31-accounts

JANE GIBSON ALMSHOUSES Charity Registration Number 223223 Housing Corporation Register Number A0567

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

JANE GIBSON ALMSHOUSES

LEGAL AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 DECEMBER 2020

Trustees

Sir John Mowbray Bt (Patron) Mrs H. Clavering Mrs M. Carruthers Mrs G. Walker Mr A. Patchett Mr G. McCormack Stuart Bain (Provost of Sunderland Minster) (Chairman)

Secretary & Treasurer Ms D. Edge

Address 313 High Street West Sunderland SR1 3ET

Investment Manager

Lycetts Financial Services Limited Milburn House Dean Street Newcastle Upon Tyne NE1 1PP

Bankers Barclays Bank plc 53 Fawcett Street Sunderland SR1 1RS

Independent Examiner

Mr P. N. Newbold BFP, FCA Torgersens Chartered Accountants Somerford Buildings Norfolk Street Sunderland SR1 1EE

Charity Registration Number 223223 Housing Corporation Register Number A0567

1

JANE GIBSON ALMSHOUSES REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Reference and Administration

The trustees present the charity’s annual report and financial statements for the year ended 31 December 2020.

The legal and administrative details are set out on page 1.

2. Structure, Governance and Management

The charity is governed by trust deed.

Trustees

The body of trustees consists of one ex-officio trustees and no less than three co-optative trustees. The ex-officio trustees comprise the patron of the charity who is the right heir to the founder. The co-optative trustees are persons who through residence, occupation or employment have special knowledge which will be of benefit to the charity.

Ex-officio trustees hold their position by virtue of their office and will always be trustees of the charity. Co-optative trustees are appointed for a term of five years by a resolution of the trustees. The co-optative trustees currently boast the following expertise; care assessment, legal matters, architect and a former Clerk to the Trustees.

Statement of Trustees’ Responsibilities

The Charities Act and Registered Social Housing Legislation requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the surplus or deficit for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable it to ensure that the financial statements comply with the Charities Act 2011, Schedule 1 to the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. 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.

Code of governance

The trustees have adopted the provisions of the revised Code of Governance, issued by the National Housing Federation in 2015; Excellence in Governance: Code for members and good practice.

To help monitor how the charity is performing against this guidance on “governance, accountability and probity”, the trustees carried out a review of policies and procedures.

The result of the review shows that, insofar as the Code applies to small registered social landlords, the Code is being followed.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operation and finances of the Almshouses and is satisfied that systems are in place to mitigate exposure to major risks.

3. Objectives and activities

Objects of the Charity

The charity, which was founded in 1725, aims to provide low cost, low maintenance accommodation for elderly tenants who can demonstrate their need for same.

2

JANE GIBSON ALMSHOUSES

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

4. Public Benefit Statement

The trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission during the year.

5. Achievements and Performance

At 31 December 2020 there were 2 houses and 6 flats occupied by elderly tenants. Further details on activities during the year are produced in section 6, below.

6. Financial Review

The financial results for the year are shown in the attached financial statements; the surplus for the year, after the transfer of £520 to the cyclical maintenance reserve and £1,000 to the extraordinary repairs reserve was £6,034. The trustees recommend no further designation of the reserves.

Grants and donations received in the year amounting to £nil, prior year £nil, contributing to the overall reduction in income of £nil. The trustees have continued to maintain tight control over expenditure, with the result that the charity has been able to generate sufficient funds to meet the annual transfer to designated reserves.

Charitable expenditure remained in line with the prior year. There were no quinquennial works undertaken during the year.

Value for Money Standard

The charity has applied the Value for Money Standard for Registered Providers of Social Housing 2018, which came into effect 1[st] April 2018. Out of the seven Value for Money Metrics, Reinvestment and New supply delivered do not apply to the charity as they do not acquire, develop or dispose of social housing properties. Gearing also does not apply to the charity as all residual loans are paid off. Interest cover % cannot be applied as the charity has no interest or finance costs.

Headline social housing cost per unit
Cost per unit has increased by 17% due to an increase in day to day repairs of 72%.
Operating Margin %
Return on Capital Employed (ROCE)		 2020
£
1,466
2020
£
(7%)
2020
£
(1%)		 2019
£
1,249
2019
£
(9%)
2019
£
(1%)

Reserves Policy

The undesignated reserves of the charity amount to £301,051. Over the years in which the charity has operated, it has managed to build up reserves which have been invested in a portfolio of stocks and shares. The charity has become reliant upon the dividend and interest income which the portfolio generates; without it the charity would not be able to support the levels of expenditure that it does. As a result, the charity looks on these investments as quasi-endowment. The trustees’ policy in relation to reserves is to ensure that, in the event of a significant reduction in income, they could at least maintain the almshouse properties to an acceptable level.

Investment Policy and Performances

Under the terms of a scheme of the charity commission, the trustees are required to pay annual sums of not less than £520 to the official custodian for charities to be applied to the credit of an account entitled Extraordinary Repairs Fund. The official custodian invests these yearly sums, together with income accruing, in National Almshouses Association Common Investment Fund accumulation units. This apart, the trustees have the power to invest in such manner as they see fit. Funds are now vested with Lycetts Financial Services Limited (“Lycetts”) who are expected to manage a portfolio of investments in accordance with the charity’s investment policy. This policy is to adopt a medium risk strategy based on maximising the returns on the investments, whilst obtaining reasonable growth in the market value of the portfolio. This policy may need to be reviewed following the formulation of reserves policy (see above).

During the year the value of the charity’s investments, after net disposals of £2,556, decreased by £228.

3

JANE GIBSON ALMSHOUSES

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Examiner

The examiner, Mr P. N. Newbold of Torgersens, will be proposed for re-appointment at the Annual General Meeting.

This report was approved by the trustees on

Signed on behalf of the Board of Trustees:

Ms D. Edge Secretary Date:

4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF

JANE GIBSON ALMSHOUSES

(A REGISTERED SOCIAL LANDLORD UNDER SECTION 3 OF THE HOUSING ACT 1996)

I report on the financial statements of the Charity for the year ended 31 December 2020 which are set out on pages 6 to 15.

Respective responsibility of trustees and examiner

The Charity’s Trustees are responsible for the preparation of the financial statements. The Charity’s Trustees consider that an audit is not required for the year under Section 144(2) of the Charities Act 2011 (“the 2011 Act”) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the unaudited financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the unaudited financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the unaudited financial statements present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in any material respect the requirements;

  2. to keep accounting records in accordance with section 130 of the 2011 Act; and

  3. to prepare financial statements which accord with the accounting records, comply with the accounting requirements of the Charities Act have not been met; or

  4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Mr P. N. Newbold BFP, FCA Torgersens Chartered Accountants Somerford Buildings Norfolk Street Sunderland SR1 1EE

Date:

5

JANE GIBSON ALMSHOUSES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Funds
Restricted Funds
___________
__
General
Revaluation
Capital
Revenue
Designated
Restoration
Reserve
Account
Reserve
Reserves
Work
£
£
£
£
£
Income and expenditure
Income
Bank interest
-
-
134
-
-
Rent receivable
-
-
18,627
-
-
LessVoids
-
-
(132)
-
-
Donations received
-
-
-
-
-
Grants received
-
-
-
-
-
Investment income
-
-
8,077
-
-
Amortisation of social housing grant
-
-
2,449
-
-
_



_
Total Incoming Resources
-
-
29,155
-
-
Resources Expended
Charity Running Costs
Insurance
-
-
(1,262)
-
-
Day to day repairs
-
-
(4,491)
-
-
Quinquennial works
-
-
-
-
-
Cyclical repair spend
-
-
-
-
-
Communal heating
-
-
(523)
-
-
Vital call
-
-
(1,907)
-
-
Telephone
-
-
-
-
-
Rates and water
-
-
(1,381)
-
-
Depreciation
-
-
(6,719)
-
-


__

__
-
-
(16,283)
-
-
 Total
Funds
2020
£
134
18,627
(132)
-
-
8,077
2,449
_
29,155
(1,262)
(4,491)
-
-
(523)
(1,907)
-
(1,381)
(6,719)
____
(16,283)		 Total
Funds
2019
£
288
18,205
-
-
-
8,115
2,449
_
29,057
(1,246)
(2,613)
-
-
(506)
(1,931)
-
(1,248)
(6,611)
____
(14,155)

6

JANE GIBSON ALMSHOUSES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Unrestricted Funds
Restricted Funds
___________
__
General
Revaluation
Capital
Revenue
Designated
Restoration
Reserve
Account
Reserve
Reserves
Work
£
£
£
£
£
Other Expenditure
Office Overheads
Subscriptions
-
-
(479)
-
-
Sundries
-
-
(207)
-
-
Clerks honorarium
-
-
(2,500)
-
-
Audit fee - - - - -
Accountancy fee
-
-
(1,980)
-
-
Professional fees
-
-
(990)
-
-
Bad debt w/o
-
-
(33)
-
-
_

_

_
-
-
(6,189)
-
-
Total Resources Expended
-
-
(22,472)
-
-


__


Net Incoming/(Outgoing) Resources Before Transfers
-
-
6,683
-
-
Transfer to Designated Reserve
-
-
(1,520)
1,520
-
_


_

Net Income/(Outgoing) Resources for the year
-
-
5,163
1,520
-
Gains/(Deficits) on Investment Assets
Realised
-
-
871
-
-
Unrealised
(3,930)
-
-
-
-


_


Net Movement in Funds
(3,930)
-
6,034
1,520
-
Funds brought forward 87,061
14,522
197,364
51,040
5,000
__
_
_

__

Fund balances carried forward at 31.12.20
83,131
14,522
203,398
52,560
5,000		 Total
Funds
2020
£
(479)
(207)
(2,500)
-
(1,980)
(990)
(33)
_
(6,189)
(22,472)
_
6,683
-
__
6,683
871
(3,930)
__
3,624
354,987
_____

358,611		 Total
Funds
2019
£
(480)
(288)
(2,575)
(138)
(1,920)
(2,908)
_
(8,309)
(22,464)
_
6,593
-
__
6,593
1,129
29,428
_
37,150
317,837
_____
354,987

The notes on pages 11 to 15 form part of these financial statements

7

JANE GIBSON ALMSHOUSES

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
2020
£
TURNOVER
4
20,944
OPERATING COSTS
(22,472)
_
Operating deficit
(1,528)
Disposal of investments
10
(3,059)
Interest receivable and other income
6
8,211
_
SURPLUS ON ORDINARY ACTIVITIES
BEFORE TAXATION
7
3,624
Tax on surplus on ordinary activities
-
_
SURPLUS FOR THE YEAR
3,624		 2019
£
20,654
(22,464)
_
(1,810)
30,557
8,403
_
37,150
-
_
37,150

All operations are continuing.

The statement of comprehensive income contains all surpluses and deficits recognised in the current and preceding year.

The notes on pages 11 to 15 form part of these financial statements.

8

JANE GIBSON ALMSHOUSES STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

Surplus for the year
Unrealised surplus/(deficit) on investment
Total surplus/(deficit) recognised since last annual report
Note of Historical Cost Surpluses and Deficits
Surplus on ordinary activities before taxation
Realisation of investment revaluation gains/(deficit) in prior years
Historical cost surplus on ordinary activities before and after taxation		 _
 2020
£
3,624
(3,930)
__
(306)
2020
£
3,624
-
____
3,624		 2019
£
37,150
29,428
_
66,578

_
2019
£
37,150
-
_
37,105

The notes on pages 11 to 15 form part of these financial statements

9

JANE GIBSON ALMSHOUSES

STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2020

Notes
TANGIBLE FIXED ASSETS
Housing Properties – cost less depreciation
8
Investments
10a

CURRENT ASSETS
Investments
10b
Debtors
11
Cash at bank - Current Account
- Deposit Accounts
Cash in hand
_
CREDITORS: Amounts falling due
within one year
12

NET CURRENT ASSETS

TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due after more
than one year
13
CAPITAL AND RESERVES
Designated reserves
15
52,560
Revaluation reserve
16
83,131
Revenue reserve
17
203,398
General capital account
14,522
Restoration work fund
18
5,000
_
 2020
£
111,824
43,584
_
155,408
209,355
6,381
17,097
51,071
191
284,095
4,585
_
279,510
_
434,918
76,307
358,611
____
434,918		 2019
£
116,381
40,964
_
157,345

212,203
5,254
12,506
50,936
180
281,079
4,681
_
276,398
_
433,743

78,756
51,040
87,061
197,364
14,522
5,000
_
354,987
_
433,743

Approved by the Board of Trustees on

The notes on pages 11 to 15 form part of these financial statements.

10

JANE GIBSON ALMSHOUSES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. GENERAL INFORMATION

Jane Gibson Almshouses is a charity domiciled in England and Wales. Charity registration number 223223 and Housing Corporation register number A0567. The address of the registered office is 313 High Street West, Sunderland SR1 3ET.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared under the historical cost convention and in accordance with the provisions of FRS 102, the Housing and Regeneration Act 2008 and Charities Act 2011.

3. ACCOUNTING POLICIES

(a) Basis of Accounting

The financial statements are presented in Sterling (£), which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are stated at cost. Depreciation is charged so as to write down the cost of freehold housing properties, other than freehold land, to their estimated residual value on a straight line basis over their expected useful economic lives at the following annual rates:

Housing Properties: Housing Properties:
Structure – 1% straight line
Roofing – 2.5% straight line
Kitchens – 5% straight line
Radiators – 5% straight line
External Doors –5% straight line
Windows –2.5% straight line
Bathrooms –5% straight line
Boilers –6.66% straight line
Fires –6.66% straight line

An element of the costs of the properties is the constituent fitments which are depreciated over a period ranging from 15 to 40 years from the date of installation. Subsequent costs incurred in replacing these assets are capitalised and depreciated over the length of period benefiting from these replacements. All other maintenance costs are charged to the income statement as incurred.

(d) Impairment

At each reporting date, goodwill and other fixed assets, including tangible fixed assets and investments but excluding investment properties, are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with it's carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in profit and loss.

Where developments have been financed wholly or partly by S.H.G., the cost of those developments are shown as deferred income, separate to the Housing property it relates to.

S.H.G. is repayable under certain circumstances, primarily following the sale of property, but will normally be restricted to net proceeds of sale.

Social housing grants are amortised in line with the assets useful economic lives and released as deferred income yearly.

11

JANE GIBSON ALMSHOUSES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

3. ACCOUNTING POLICES (continued)

(h) Designated Reserves

The charity has designated all those reserves which cannot be considered to be freely available.

(i) Cyclical Maintenance Fund

(i) Investments

(j) Investment Income

Dividends are included in the statement of comprehensive income when they are declared at an amount which includes attributable tax credit and transitional relief.

4. TURNOVER

Turnover represents rental income receivable on 8 units of housing accommodation (2019: 8 units) as follows:

Rents receivable (net of void losses)
Amortisation of social housing grant
Grants received
Donations received

 2020
£
18,495
2,449
-
-
______
20,944		 2019
£
18,205
2,449
-
-
_
20,654

Void losses included above, represent a proportion of the year when no rent was being received from the property due to it being empty. There was 1 (2019: nil) void property in the year.

5.

Voids
EMPLOYEE INFORMATION		 2020
2019
£
£
132
-

The charity has no employees.

The charity is controlled by trustees who received no remuneration during the year (2019: £nil).

6.

INTEREST RECEIVABLE AND OTHER INCOME
Investment income
Bank interest		 2020
£
8,077
134
_____
8,211		 2019
£
8,115
288
_
8,403

12

JANE GIBSON ALMSHOUSES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

7.
SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION
2020
£
This is stated after charging:
Examiners’ remuneration:
in their capacity as examiners (net of VAT)
1,650
in respect of other services
-
Depreciation
6,719
Amortisation of S.H.G.
(2,449)
8.
TANGIBLE FIXED ASSETS


COST OR VALUATION
At 1 January 2020
Additions
Disposals
At 31 December 2020
DEPRECIATION
At 1 January 2020
Charge for the year
Disposals

At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019
9.
SOCIAL HOUSING GRANT
2020
£
Total accumulated housing grant at 31 December 2020
145,950

Recognised in statement of comprehensive income
67,195
Held in deferred income
78,755
_
145,950
10.
INVESTMENTS
(a)
(b)
Fixed
Current
Asset
Asset
Investments
Investments
£
£
Market value at 1 January 2020
40,964
212,203
Interest reinvested
-
5,387
Net invested
-
(2,556)
Gains/(Losses)
Unrealised
2,620
(6,550)
Realised
-
871
_
__
Market value at 31 December 2020
43,584
209,355
Cost at 31 December 2020
8,993
160,816
Cost at 31 December 2019
8,993
155,933
Investment at market value comprised
UK Equities
-
73,655
UK Unit Trusts
-
135,700
COIF
43,584
-
_
_
43,584
209,355		 2019
£
1,600
-
6,611
(2,449)
Freehold
Housing
Property
£
233,293
2,162
(308)
_
235,147
116,912
6,719
(308)
_
123,323
111,824
116,381
2019
£
146,230
65,026
81,204
_
146,230
Total
£
253,167
5,387
(2,556)
(3,930)
871
__
252,939
169,809
164,926
73,655
135,700
43,584
_____
252,939

13

JANE GIBSON ALMSHOUSES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11.
DEBTORS
Arrears of rent
Prepayments and accrued income
12.
CREDITORS: Amounts falling due
within one year
Accruals and deferred income
Social housing grant (note 14)

13.
CREDITORS: Amounts falling due
after more than one year
Social housing grant (note 14)
14.
SOCIAL HOUSING GRANT
Grant
At 1 January 2020
Disposals
_
At 31 December 2020
Amortisation
At 1 January 2020
Released in year
Disposals
At 31 December 2020
Net total at 31 December 2020
Net total at 31 December 2019
Amounts to be released within one year
Amounts to be released in more than one year
15.
DESIGNATED RESERVES
Reserve for Cyclical Maintenance
At 1 January 2020
Transfer from revenue reserve
Spend
At 31 December 2020
Reserve for Extraordinary Repairs
At 1 January 2020
Transfer from revenue reserve

At 31 December 2020
Total designated reserves at 31 December 2020		 2020
£
1,100
5,281
__
6,381
2020
£
2,136
2,449
_

4,585

2020
£
76,307
2020
£
146,230
(280)
_

145,950

65,025
2,449
(280)
_
67,194
78,756
81,205
2020
£
2,449
76,307

78,756
2020
£
14,090
520
-


14,610

2020
£
36,950
1,000
____

37,950

52,560		 2019
£
1,117
4,137
__
5,254
2019
£
2,232
2,449
_____
4,681

2019
£
78,756

2019
£
146,510
(280)
_
146,230



_
62,856
2,449
(280)
__
65,025
81,205
83,654
2019
£
2,449
78,756
____
81,205

2019
£
13,570
520
-
_
14,090

2019
£
35,950
1,000
_
36,950

51,040

The charity’s trustees have considered it prudent to set aside some part of the annual surplus to provide for:

(a) property maintenance which may occur on a cyclical basis and (b) major unplanned repairs which may occur from time to time.

14

JANE GIBSON ALMSHOUSES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

16.
REVALUATION RESERVE
At 1 January 2020
Revaluation during the year (note 10)
Transfer (from)/to designated reserves
At 31 December 2020
17.
REVENUE RESERVE
At 1 January 2020
Surplus for the year
Transfer (from)/to designated reserves
At 31 December 2020
18.
RESTORATION WORK FUND
At 1 January 2020
Grants received in year
At 31 December 2020		 2020
£
87,061
(3,930)

83,131
2020
£
197,364
7,554
(1,520)
203,398
2020
£
5,000
-
5,000		 2019
£
57,633
29,428
87,061
2019
£
191,162
7,722
(1,520)
197,364
2019
£
5,000
-
5.000

Restoration works relate to restoring the walls and railings around the Almshouses.

19. CAPITAL COMMITMENTS

At 31 December 2020 and 31 December 2019 there were no contracted for or authorised capital commitments.

20. CONTINGENT LIABILITIES

At 31 December 2020 and 31 December 2019 there were no known contingent liabilities.

21. RELATED PARTIES

In the years ending 31 December 2020 and 31 December 2019 there were no related parties.

15