James Ainsworth Almshouse Charity
Trustee’s Annual Report and Accounts
Year Ended 31 March 2021
Charity Number 224838
James Ainsworth Almshouse Charity
Trustee’s report and financial statements for the year ended 31 March 2021
Contents
Page:
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1 Report of the Trustee 4 Trustee's responsibilities statement 5 Independent auditor's report 8 Statement of financial activities
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9 Statement of financial position 10 Notes forming part of the financial statements
Trustee
Arcon Housing Association Ltd
Almshouses Manager: Arcon Housing Association Ltd
Company secretary and registered office
Katrina Cunliffe, Quay West, Trafford Wharf Road, Manchester, M17 1HH
Charity number
224838
Solicitors
Brabners Chaffe Street, Horton House, Exchange Flags, Liverpool, L2 3YL
Auditor
BDO LLP, 3 Hardman Street, Spinningfields, Manchester, M3 3AT
Bankers
CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ
James Ainsworth Almshouse Charity
Report of the Trustee
for the year ended 31 March 2021
The Trustee presents the annual report and the audited financial statements for the year ended 31 March 2021. The Trustee has adopted the provisions of the Charities SORP 2[nd] Edition (FRS 102) in preparing the annual report and financial statements of the charity.
Structure, Governance and Management
Arcon Housing Association were appointed as Trustee on 1[st] June 2006. The Trustee was previously The Orders of St John Trustee Company.
Structure and activities
The Charity, which is registered with The Charity Commission, is unincorporated and has as its constitution a declaration of trust dated 2 March 1968 (as amended).
In addition, the Charity holds funds and investments with a view to the further development of its charitable aims.
Organisation
The Board of Arcon Housing Association meets six times a year and carries out an Annual Review.
As Corporate Trustee, the trustee meets at least twice a year to discuss performance, budgets and business plans and approve the financial statements.
Objectives and Activities
The Charitable objects of the Charity are:
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to provide housing accommodation and assistance to help house people who are elderly or disabled and associated facilities and amenities for such people or the relief of the aged, disabled: and
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to further such general charitable objects as the Trustee may determine.
Financial review
The total incoming resources were £36,570 for the year to 31[st] March 2021 (2020: £35,099), producing an operating surplus of £18,788 (2020: £3,062). Gains on investments resulted in a surplus of £32,279 for the 12 month period to 31[st] March 2021 (2020: deficit of £9,573). Accumulated surpluses held in general funds were £505,532 (2020: £473,253).
There was limited impact from Covid-19 which was classified as a pandemic on 11 March 2020 by the World Health Organisation during the financial year. Whilst all the government guidelines have been adhered to throughout it is also not expected to impact on the following year due to the nature of the business and the business is expected to continue as a going concern.
Going concern
The principal uncertainty faced by the charity in the year arose from the COVID 19 pandemic. The charity’s mitigation plan and its tactical response, aligned to the UK Government measures, meant that the association was able to minimise the impact on productivity and continue to deliver services to customers, whilst ensuring their safety.
The pandemic continues to be a source of uncertainty for the charity. When reviewing the budget and forecasts the Trustee considered its impact, both specifically and on the UK economy, together with risks around principle economic assumptions and regulatory changes.
The business plan forecasts show that the charity has sufficient liquid funds and debt facilities in place that provide adequate resources to fund all committed capital expenditure and investment programmes together with day-today activities.
The charity’s activities are expected to continue unchanged for the foreseeable future and the uncertainties considered, including the pandemic, are not expected to have a material long term impact on the charity’s financial viability. On this basis the Trustee has a reasonable expectation that the Group has adequate resources to
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James Ainsworth Almshouse Charity
Report of the Trustee for the year ended 31 March 2021 (continued)
continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the financial statements are signed. Therefore, it continues to adopt the going concern basis in the financial statements.
Reserves policy
The Trustee has considered the need for an appropriate level of reserves in conjunction with the guidance issued by The Charity Commission.
In determining a reserve policy, the Trustee has identified core objectives to be met. These are as follows:
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the establishment of adequate free reserves (excluding fixed assets) to ensure that the Charity has adequate liquidity to meet any short-term fluctuations in occupancy levels or exceptional costs outside the scope of the budget; and
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the development of a strong balance sheet and positive cash flow to support the funding of the improvement of the existing property.
The level of reserves required is determined using comprehensive budgets and cash flow forecasts. Regular updates and monitoring of these documents are carried out to ensure that a surplus is achieved, and cash flow is adequate for the needs of the Charity. The benchmark for the free reserves for the Charity is between £400,000 and £500,000.
At the year end the Charity has total funds of £549,588 (2020: £517,309) of which £549,338 (2020: £517,059) is available at the discretion of the trustee and deemed as free reserves.
Risk management
The Trustee has identified the risks to which the Charity is exposed and, for each of these, an assessment has been made as to their impact, severity, and probability. Internal and external controls have been reviewed for effectiveness in mitigating these risks.
Systems have been established to manage the level of risk including the following:
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The review of major risk related incidents (and steps taken to address these) at each meeting of the Board and the Audit and Risk Management Committee.
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The internal control system is monitored and supported by external audit that is able to provide an independent perspective on the management of risk within the Charity.
The management and control of risk is an ongoing process in the Charity. Responsibility for ensuring that there are appropriate risk management and audit structures in place, and for reviewing those structures, is delegated to the Audit and Risk Management Committee, which is a shared committee with the Bolton at Home Group.
Whilst the Covid-19 pandemic presented an additional risk the business has responded well and this is not expected to have a detrimental impact on the surplus as customers continue to pay their rent.
Funding Source and Expenditure
The principal funding sources are charges for providing housing accommodation. Expenditure is all related to providing this accommodation.
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James Ainsworth Almshouse Charity
Report of the Trustee for the year ended 31 March 2021 (continued)
Future developments
A revised stock condition survey is being carried out which will inform future requirements for improvements to properties.
Auditor
The auditor, BDO LLP, was appointed during the year and will be proposed for reappointment in line with the terms of the Charities Act 2011.
Mike Corfield Arcon Housing Association Ltd Trustee
Date: 4 October 2021
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James Ainsworth Almshouse Charity
Trustee’s responsibilities statement for the year ended 31 March 2021
The Trustee is responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustee is required to:
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select suitable accounting policies and then apply them consistently; and
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make judgements and accounting estimates that are reasonable and prudent; and
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Opinion on the financial statements
In our opinion, the financial statements:
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give a true and fair view of the state of the Charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of James Ainsworth Almshouse Charity (“the Charity”) for the year ended 31 March 2021 which comprise the Statement of financial activities, the Statement of financial position and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions related to going concern
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and Accounts, other than the financial statements and our auditor’s report thereon. The other information comprises: Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 require us to report to you if, in our opinion;
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the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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agreement of the financial statement disclosures to underlying supporting documentation;
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challenging assumptions made by management in their significant accounting estimates in particular in relation to the following:
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whether there are indicators of impairment of tangible assets; and
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recoverability of receivable balances outstanding at the year end; and
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future forecasts prepared for the going concern assessment.
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discussions with, and inquiries of, management and those charged with governance, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
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enquires to confirm with management that there was no legal correspondence during the period, or post year end, requiring review;
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identifying and testing journal entries identified as potentially unusual; and
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a review of minutes of meetings of those charged with governance both during the period, and post year end.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Use of our report
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
BDO LLP, statutory auditor Manchester, UK
Date: 08 October 2021
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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James Ainsworth Almshouse Charity
Statement of financial activities for the year ended 31 March 2021
| Unrestricted 2021 Note £ Income from: Charitable activities 4 36,299 Investments 5 1,151 _ 37,450 _ Expenditure on: Charitable activities 6 18,662 _ 18,662 _ Net income before gains/(losses) and transfers 18,788 Gains/ (losses) on investments 10 13,491 _ Net movements in funds 32,279 _ Reconciliation in funds Balance brought forward at 1 April 2020 517,309 Movement in funds 32,279 __ Balance carried forward at 31 March 2021 549,588 |
Total 2021 £ 36,299 1,151 _ 37,450 _ 18,662 _ 18,662 _ 18,788 13,491 _ 32,279 _ 517,309 32,279 __ 549,588 |
Total 2020 £ 33,614 1,485 _ 35,099 _ 32,037 _ 32,037 _ 3,062 (12,635) _ (9,573) _ 526,882 (9,573) __ 517,309 |
|---|---|---|
The notes on pages 10 to 17 form part of these financial statements.
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James Ainsworth Almshouse Charity
Statement of financial position at 31 March 2021
| Charity number 224838 Note 2021 £ Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 2,279 Cash at bank 107,468 _ 109,747 Creditors: amounts falling due within one year (15,097) _ Net current assets Net assets Funds Permanent endowed fund Unrestricted Designated reserves 43,806 General funds 505,532 _ Total funds 13 |
2021 2020 £ £ 389,422 65,516 _ 454,938 1,259 152,065 _ 153,324 (87,423) _ 94,650 _ 549,588 _ 250 43,806 473,253 _ 549,338 _ 549,588 |
2020 £ 399,383 52,025 _ 451,408 65,901 _ 517,309 _ 250 517,059 _ 517,309 |
|---|---|---|
The financial statements were approved by the Board of Trustee and authorised for issue on 4 October 2021.
Mike Corfield Arcon Housing Association Ltd Trustee
The notes on pages 10 to 17 form part of these financial statements
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements
for the year ended 31 March 2021
1 Accounting policies
Basis of preparation of accounts
The financial statements have been prepared in accordance with the Charities SORP 2[nd] Edition (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Charities SORP (FRS 102) and the Charities Act 2011.
All amounts are presented in pounds sterling and are rounded to the nearest £1.
The Trustee considers that the Charity meets the definition of a Public Benefit Entity under FRS102.
The following principle accounting policies have been applied:
Going concern
The principal uncertainty faced by the charity in the year arose from the COVID 19 pandemic. The charity’s mitigation plan and its tactical response, aligned to the UK Government measures, meant that the association was able to minimise the impact on productivity and continue to deliver services to customers, whilst ensuring their safety.
The pandemic continues to be a source of uncertainty for the charity. When reviewing the budget and forecasts the Trustee considered its impact, both specifically and on the UK economy, together with risks around principle economic assumptions and regulatory changes.
The business plan forecasts show that the charity has sufficient liquid funds and debt facilities in place that provide adequate resources to fund all committed capital expenditure and investment programmes together with day-to-day activities.
The charity’s activities are expected to continue unchanged for the foreseeable future and the uncertainties considered, including the pandemic, are not expected to have a material long term impact on the charity’s financial viability. On this basis the Trustee has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the financial statements are signed. Therefore, it continues to adopt the going concern basis in the financial statements.
Income
Income represents rental income receivable and other income. Income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Rental income is recognised when the property is available for let, net of voids on a receivable basis.
Investment income is recognised on a receivable basis. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Expenditure
Expenditure on charitable activities relates to all costs of providing housing accommodation. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. Support costs of the Charity represent the audit fees, administration costs and finance costs.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
2 Accounting policies (continued)
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Housing Properties and Depreciation
Housing properties for rent are stated at cost less accumulated depreciation. Freehold land is not depreciated.
All properties are reviewed for impairment annually.
Where a housing property comprises two or more major components with substantially different useful economic lives, each component is accounted for separately and depreciated over its individual useful economic life. Expenditure relating to the subsequent replacement or renewal of components is capitalised as incurred.
| Component | UEL | |
|---|---|---|
| New build housing structure | - | 125 years |
| External works | - | 40 years |
| Roofs | - | 60 years |
| Windows | - | 40 years |
| Electrical | - | 30 year |
| Bathrooms | - | 30 years |
| Boilers | - | 15 years |
| Heating systems (excluding boilers) | - | 30 years |
| Kitchens | - | 20 years |
Impairment
Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified.
Following a trigger for impairment, the Charity performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash generating units (properties) or observable market prices less incremental costs for disposing of the properties. The value in use calculation is based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Charity as the existing property. The cash flows are derived from the business plan for the next 30 years and do not include restructuring activities that the Charity is not yet permitted to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
2 Accounting policies (continued)
Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
Financial Instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
The Charity designates funds in relation to anticipated major and cyclical repairs. Transfers to Designated Funds are based on Management estimates of future costs. Actual expenditure is expensed to the Income and Expenditure Account as incurred and a corresponding release of funds is then made from the Designated Funds. The balance is reviewed periodically to ensure its adequacy.
3 Judgements and key sources of estimation and uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Going concern assessment
The principal uncertainty currently facing the charity around the impact of the ongoing global COVID-19 outbreak. The trustee continues to monitor the outbreak, including the latest UK Government advice, and acknowledge that the charity faces a prolonged period of uncertainty. While the evolving nature of the situation means it is not possible to accurately quantify the financial impact, the charity is actively managing this risk. Future forecasts are therefore a key source of estimation. Despite this, the trustee is comfortable that the uncertainty does not prevent the trustee concluding that the going concern basis of preparation for the accounts is appropriate as set out further within the going concern section of the Trustee’ report and going concern accounting policy.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
| 4 Income from charitable activities Housing accommodation and assistance 5 Investment income Interest and dividends on investment deposit accounts 6 Expenditure on charitable activities Housing accommodation and assistance 2020 Housing accommodation and assistance |
Unrestricted Unrestricted 2021 2020 £ £ 36,299 33,614 _ _ Unrestricted Unrestricted 2021 2020 £ £ 1,151 1,485 _ _ 2021 2021 2021 Direct Support Total £ £ £ 16,508 2,154 18,662 _ _ __ 28,226 3,811 32,037 |
Unrestricted Unrestricted 2021 2020 £ £ 36,299 33,614 _ _ Unrestricted Unrestricted 2021 2020 £ £ 1,151 1,485 _ _ 2021 2021 2021 Direct Support Total £ £ £ 16,508 2,154 18,662 _ _ __ 28,226 3,811 32,037 |
|---|---|---|
| __ 2021 Total £ 18,662 |
||
| __ 32,037 |
All expenditure on charitable activities was unrestricted in the current and prior year.
Direct costs on charitable activities:
| Repairs and maintenance Property costs Heat and light Depreciation Insurance Other direct Total support costs: Governance costs Audit fees Admin and finance costs Other support |
2021 £ 641 1,921 1,670 9,961 433 1,882 __ 16,508 __ 240 1,914 - __ 2,154 __ |
2020 £ 10,966 3,340 2,374 9,711 664 1,171 __ 28,226 |
|---|---|---|
| _ 150 60 3,601 _ 3,811 __ |
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
| 7 Auditors' remuneration In relation to audit of financial statements Accountancy services |
2021 £ 240 1,830 |
2020 £ 150 - |
|---|---|---|
During the year the audit fee of £3,000 (2020 - £3,000) was borne by Arcon Housing Association and £240 (2020 - £150) will be recharged to the Charity. In the prior year, the fee in relation to the preparation of the accounts of £1,800 was borne by Arcon Housing Association and not recharged to the Charity.
8 Trustee remuneration and expenses
No remuneration or expenses were paid to the Trustee during the current or prior year.
9 Tangible fixed assets
| Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Property £ 506,784 - - _ 506,784 _ 107,401 9,961 - _ 117,362 _ 389,422 _ 399,383 _ |
|---|---|
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
10 Investments
| Market value at 1 April 2020 Additions Gains/(loss) on revaluation Market value at 31 March 2021 Historic cost Investments are represented by: Bonds Equities 11 Debtors Amounts due from related parties Rent arrears Prepayments Other debtors 12 Creditors: amounts falling due within one year Amounts due to related parties Trade creditors Tenants in credit Accruals |
2021 £ 52,025 - 13,491 __ 65,516 _ 28,433 __ 11,883 53,633 __ 65,516 __ 2021 £ 2,057 - 222 __ 2,279 _ 2021 £ 10,092 51 2,196 2,758 __ 15,097 |
2020 £ 64,352 308 (12,635) _ 52,025 _ 28,433 _ 12,572 39,453 _ 52,025 _ 2020 £ - 379 880 - _ 1,259 _ 2020 £ 80,459 - 1,593 5,371 _ 87,423 |
|---|---|---|
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
13 Analysis of funds
| Unrestricted funds General Designated Endowed funds Permanent endowed funds Total funds Unrestricted funds General Designated Endowed funds Permanent endowed funds Total funds |
At 1 April 2020 £ 473,253 43,806 _ 517,059 _ 250 _ 517,309 _ At 1 April 2019 £ 482,826 43,806 _ 526,632 _ 250 __ 526,882 |
Income Expenditure £ £ 36,570 (17,782) - - _ _ 36,570 (17,782) _ _ - - _ _ 36,570 (17,782) _ _ Income Expenditure £ £ 35,099 (32,037) - - _ _ 35,099 (32,037) _ _ - - _ _ 35,099 (32,037) |
Gains and transfers £ 13,491 - _ 13,491 _ - _ 13,491 _ Losses and transfers £ (12,635) - _ (12,635) _ - __ (12,635) |
At 31 March 2021 £ 505,532 43,806 _ 549,338 _ 250 _ 549,588 _ At 31 March 2020 £ 473,253 43,806 _ 517,059 _ 250 __ 517,309 |
|---|---|---|---|---|
General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
The Charity designates funds in relation to anticipated major and cyclical repairs. Transfers to Designated Funds are based on Management estimates of future costs. Actual expenditure is expensed to the Income and Expenditure Account as incurred and a corresponding release of funds is then made from the Designated Funds. The balance is reviewed periodically to ensure its adequacy.
Endowed funds represent the historical cost of the amounts held in investments.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
14 Net assets
2021
| General Designated £ £ Tangible fixed assets 389,422 Investments 21,460 43,806 Debtors 2,279 - Cash at bank 107,468 - Creditors: amounts falling due in one year (15,097) - _ _ 505,532 43,806 _ _ 2020 Tangible fixed assets 399,383 - Investments 7,969 43,806 Debtors 1,259 - Cash at bank 152,065 - Creditors: amounts falling due in one year (87,423) - _ _ 473,253 43,806 _ _ Financial instruments Financial assets measured at fair value through profit and loss |
Endowed £ - 250 - - - _ 250 _ - 250 - - - _ 250 _ 2021 £ 65,516 |
Total £ 389,422 65,516 2,279 107,468 (15,097) _ 549,588 _ 399,383 52,025 1,259 152,065 (87,423) _ 517,309 _ 2020 £ 52,025 |
|---|---|---|
15 Financial instruments
Financial assets measured at fair value through profit and loss comprise current asset equity investments stated at market value.
16 Related party transactions
| Amounts due at start of year £ 2021 Arcon Housing 80,459 __ 2020 Arcon Housing 69,031 |
Amounts due at end Receipts Payments of year £ £ £ 10,238 (80,605) 10,092 _ _ __ 11,428 - 80,459 |
|---|---|
Arcon Housing Association is the sole trustee of the Charity. During the year Arcon Housing Association also donated professional services in relation to the audit and accounts fees of £3,000 (2020 - £4,800).
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James Ainsworth Almshouse Charity
Trustee’s Annual Report and Accounts
Year Ended 31 March 2021
Charity Number 224838
James Ainsworth Almshouse Charity
Trustee’s report and financial statements for the year ended 31 March 2021
Contents
Page:
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1 Report of the Trustee 4 Trustee's responsibilities statement 5 Independent auditor's report 8 Statement of financial activities
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9 Statement of financial position 10 Notes forming part of the financial statements
Trustee
Arcon Housing Association Ltd
Almshouses Manager: Arcon Housing Association Ltd
Company secretary and registered office
Katrina Cunliffe, Quay West, Trafford Wharf Road, Manchester, M17 1HH
Charity number
224838
Solicitors
Brabners Chaffe Street, Horton House, Exchange Flags, Liverpool, L2 3YL
Auditor
BDO LLP, 3 Hardman Street, Spinningfields, Manchester, M3 3AT
Bankers
CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ
James Ainsworth Almshouse Charity
Report of the Trustee
for the year ended 31 March 2021
The Trustee presents the annual report and the audited financial statements for the year ended 31 March 2021. The Trustee has adopted the provisions of the Charities SORP 2[nd] Edition (FRS 102) in preparing the annual report and financial statements of the charity.
Structure, Governance and Management
Arcon Housing Association were appointed as Trustee on 1[st] June 2006. The Trustee was previously The Orders of St John Trustee Company.
Structure and activities
The Charity, which is registered with The Charity Commission, is unincorporated and has as its constitution a declaration of trust dated 2 March 1968 (as amended).
In addition, the Charity holds funds and investments with a view to the further development of its charitable aims.
Organisation
The Board of Arcon Housing Association meets six times a year and carries out an Annual Review.
As Corporate Trustee, the trustee meets at least twice a year to discuss performance, budgets and business plans and approve the financial statements.
Objectives and Activities
The Charitable objects of the Charity are:
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to provide housing accommodation and assistance to help house people who are elderly or disabled and associated facilities and amenities for such people or the relief of the aged, disabled: and
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to further such general charitable objects as the Trustee may determine.
Financial review
The total incoming resources were £36,570 for the year to 31[st] March 2021 (2020: £35,099), producing an operating surplus of £18,788 (2020: £3,062). Gains on investments resulted in a surplus of £32,279 for the 12 month period to 31[st] March 2021 (2020: deficit of £9,573). Accumulated surpluses held in general funds were £505,532 (2020: £473,253).
There was limited impact from Covid-19 which was classified as a pandemic on 11 March 2020 by the World Health Organisation during the financial year. Whilst all the government guidelines have been adhered to throughout it is also not expected to impact on the following year due to the nature of the business and the business is expected to continue as a going concern.
Going concern
The principal uncertainty faced by the charity in the year arose from the COVID 19 pandemic. The charity’s mitigation plan and its tactical response, aligned to the UK Government measures, meant that the association was able to minimise the impact on productivity and continue to deliver services to customers, whilst ensuring their safety.
The pandemic continues to be a source of uncertainty for the charity. When reviewing the budget and forecasts the Trustee considered its impact, both specifically and on the UK economy, together with risks around principle economic assumptions and regulatory changes.
The business plan forecasts show that the charity has sufficient liquid funds and debt facilities in place that provide adequate resources to fund all committed capital expenditure and investment programmes together with day-today activities.
The charity’s activities are expected to continue unchanged for the foreseeable future and the uncertainties considered, including the pandemic, are not expected to have a material long term impact on the charity’s financial viability. On this basis the Trustee has a reasonable expectation that the Group has adequate resources to
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James Ainsworth Almshouse Charity
Report of the Trustee for the year ended 31 March 2021 (continued)
continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the financial statements are signed. Therefore, it continues to adopt the going concern basis in the financial statements.
Reserves policy
The Trustee has considered the need for an appropriate level of reserves in conjunction with the guidance issued by The Charity Commission.
In determining a reserve policy, the Trustee has identified core objectives to be met. These are as follows:
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the establishment of adequate free reserves (excluding fixed assets) to ensure that the Charity has adequate liquidity to meet any short-term fluctuations in occupancy levels or exceptional costs outside the scope of the budget; and
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the development of a strong balance sheet and positive cash flow to support the funding of the improvement of the existing property.
The level of reserves required is determined using comprehensive budgets and cash flow forecasts. Regular updates and monitoring of these documents are carried out to ensure that a surplus is achieved, and cash flow is adequate for the needs of the Charity. The benchmark for the free reserves for the Charity is between £400,000 and £500,000.
At the year end the Charity has total funds of £549,588 (2020: £517,309) of which £549,338 (2020: £517,059) is available at the discretion of the trustee and deemed as free reserves.
Risk management
The Trustee has identified the risks to which the Charity is exposed and, for each of these, an assessment has been made as to their impact, severity, and probability. Internal and external controls have been reviewed for effectiveness in mitigating these risks.
Systems have been established to manage the level of risk including the following:
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The review of major risk related incidents (and steps taken to address these) at each meeting of the Board and the Audit and Risk Management Committee.
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The internal control system is monitored and supported by external audit that is able to provide an independent perspective on the management of risk within the Charity.
The management and control of risk is an ongoing process in the Charity. Responsibility for ensuring that there are appropriate risk management and audit structures in place, and for reviewing those structures, is delegated to the Audit and Risk Management Committee, which is a shared committee with the Bolton at Home Group.
Whilst the Covid-19 pandemic presented an additional risk the business has responded well and this is not expected to have a detrimental impact on the surplus as customers continue to pay their rent.
Funding Source and Expenditure
The principal funding sources are charges for providing housing accommodation. Expenditure is all related to providing this accommodation.
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James Ainsworth Almshouse Charity
Report of the Trustee for the year ended 31 March 2021 (continued)
Future developments
A revised stock condition survey is being carried out which will inform future requirements for improvements to properties.
Auditor
The auditor, BDO LLP, was appointed during the year and will be proposed for reappointment in line with the terms of the Charities Act 2011.
Mike Corfield Arcon Housing Association Ltd Trustee
Date: 4 October 2021
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James Ainsworth Almshouse Charity
Trustee’s responsibilities statement for the year ended 31 March 2021
The Trustee is responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustee is required to:
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select suitable accounting policies and then apply them consistently; and
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make judgements and accounting estimates that are reasonable and prudent; and
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Opinion on the financial statements
In our opinion, the financial statements:
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give a true and fair view of the state of the Charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of James Ainsworth Almshouse Charity (“the Charity”) for the year ended 31 March 2021 which comprise the Statement of financial activities, the Statement of financial position and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions related to going concern
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and Accounts, other than the financial statements and our auditor’s report thereon. The other information comprises: Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 require us to report to you if, in our opinion;
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the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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agreement of the financial statement disclosures to underlying supporting documentation;
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challenging assumptions made by management in their significant accounting estimates in particular in relation to the following:
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whether there are indicators of impairment of tangible assets; and
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recoverability of receivable balances outstanding at the year end; and
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future forecasts prepared for the going concern assessment.
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discussions with, and inquiries of, management and those charged with governance, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
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enquires to confirm with management that there was no legal correspondence during the period, or post year end, requiring review;
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identifying and testing journal entries identified as potentially unusual; and
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a review of minutes of meetings of those charged with governance both during the period, and post year end.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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James Ainsworth Almshouse Charity
Independent auditor's report to the trustee of James Ainsworth Almshouse Charity
Use of our report
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
BDO LLP, statutory auditor Manchester, UK
Date: 08 October 2021
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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James Ainsworth Almshouse Charity
Statement of financial activities for the year ended 31 March 2021
| Unrestricted 2021 Note £ Income from: Charitable activities 4 36,299 Investments 5 1,151 _ 37,450 _ Expenditure on: Charitable activities 6 18,662 _ 18,662 _ Net income before gains/(losses) and transfers 18,788 Gains/ (losses) on investments 10 13,491 _ Net movements in funds 32,279 _ Reconciliation in funds Balance brought forward at 1 April 2020 517,309 Movement in funds 32,279 __ Balance carried forward at 31 March 2021 549,588 |
Total 2021 £ 36,299 1,151 _ 37,450 _ 18,662 _ 18,662 _ 18,788 13,491 _ 32,279 _ 517,309 32,279 __ 549,588 |
Total 2020 £ 33,614 1,485 _ 35,099 _ 32,037 _ 32,037 _ 3,062 (12,635) _ (9,573) _ 526,882 (9,573) __ 517,309 |
|---|---|---|
The notes on pages 10 to 17 form part of these financial statements.
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James Ainsworth Almshouse Charity
Statement of financial position at 31 March 2021
| Charity number 224838 Note 2021 £ Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 2,279 Cash at bank 107,468 _ 109,747 Creditors: amounts falling due within one year (15,097) _ Net current assets Net assets Funds Permanent endowed fund Unrestricted Designated reserves 43,806 General funds 505,532 _ Total funds 13 |
2021 2020 £ £ 389,422 65,516 _ 454,938 1,259 152,065 _ 153,324 (87,423) _ 94,650 _ 549,588 _ 250 43,806 473,253 _ 549,338 _ 549,588 |
2020 £ 399,383 52,025 _ 451,408 65,901 _ 517,309 _ 250 517,059 _ 517,309 |
|---|---|---|
The financial statements were approved by the Board of Trustee and authorised for issue on 4 October 2021.
Mike Corfield Arcon Housing Association Ltd Trustee
The notes on pages 10 to 17 form part of these financial statements
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements
for the year ended 31 March 2021
1 Accounting policies
Basis of preparation of accounts
The financial statements have been prepared in accordance with the Charities SORP 2[nd] Edition (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Charities SORP (FRS 102) and the Charities Act 2011.
All amounts are presented in pounds sterling and are rounded to the nearest £1.
The Trustee considers that the Charity meets the definition of a Public Benefit Entity under FRS102.
The following principle accounting policies have been applied:
Going concern
The principal uncertainty faced by the charity in the year arose from the COVID 19 pandemic. The charity’s mitigation plan and its tactical response, aligned to the UK Government measures, meant that the association was able to minimise the impact on productivity and continue to deliver services to customers, whilst ensuring their safety.
The pandemic continues to be a source of uncertainty for the charity. When reviewing the budget and forecasts the Trustee considered its impact, both specifically and on the UK economy, together with risks around principle economic assumptions and regulatory changes.
The business plan forecasts show that the charity has sufficient liquid funds and debt facilities in place that provide adequate resources to fund all committed capital expenditure and investment programmes together with day-to-day activities.
The charity’s activities are expected to continue unchanged for the foreseeable future and the uncertainties considered, including the pandemic, are not expected to have a material long term impact on the charity’s financial viability. On this basis the Trustee has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the financial statements are signed. Therefore, it continues to adopt the going concern basis in the financial statements.
Income
Income represents rental income receivable and other income. Income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Rental income is recognised when the property is available for let, net of voids on a receivable basis.
Investment income is recognised on a receivable basis. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Expenditure
Expenditure on charitable activities relates to all costs of providing housing accommodation. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. Support costs of the Charity represent the audit fees, administration costs and finance costs.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
2 Accounting policies (continued)
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Housing Properties and Depreciation
Housing properties for rent are stated at cost less accumulated depreciation. Freehold land is not depreciated.
All properties are reviewed for impairment annually.
Where a housing property comprises two or more major components with substantially different useful economic lives, each component is accounted for separately and depreciated over its individual useful economic life. Expenditure relating to the subsequent replacement or renewal of components is capitalised as incurred.
| Component | UEL | |
|---|---|---|
| New build housing structure | - | 125 years |
| External works | - | 40 years |
| Roofs | - | 60 years |
| Windows | - | 40 years |
| Electrical | - | 30 year |
| Bathrooms | - | 30 years |
| Boilers | - | 15 years |
| Heating systems (excluding boilers) | - | 30 years |
| Kitchens | - | 20 years |
Impairment
Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified.
Following a trigger for impairment, the Charity performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash generating units (properties) or observable market prices less incremental costs for disposing of the properties. The value in use calculation is based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Charity as the existing property. The cash flows are derived from the business plan for the next 30 years and do not include restructuring activities that the Charity is not yet permitted to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
2 Accounting policies (continued)
Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
Financial Instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
The Charity designates funds in relation to anticipated major and cyclical repairs. Transfers to Designated Funds are based on Management estimates of future costs. Actual expenditure is expensed to the Income and Expenditure Account as incurred and a corresponding release of funds is then made from the Designated Funds. The balance is reviewed periodically to ensure its adequacy.
3 Judgements and key sources of estimation and uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Going concern assessment
The principal uncertainty currently facing the charity around the impact of the ongoing global COVID-19 outbreak. The trustee continues to monitor the outbreak, including the latest UK Government advice, and acknowledge that the charity faces a prolonged period of uncertainty. While the evolving nature of the situation means it is not possible to accurately quantify the financial impact, the charity is actively managing this risk. Future forecasts are therefore a key source of estimation. Despite this, the trustee is comfortable that the uncertainty does not prevent the trustee concluding that the going concern basis of preparation for the accounts is appropriate as set out further within the going concern section of the Trustee’ report and going concern accounting policy.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
| 4 Income from charitable activities Housing accommodation and assistance 5 Investment income Interest and dividends on investment deposit accounts 6 Expenditure on charitable activities Housing accommodation and assistance 2020 Housing accommodation and assistance |
Unrestricted Unrestricted 2021 2020 £ £ 36,299 33,614 _ _ Unrestricted Unrestricted 2021 2020 £ £ 1,151 1,485 _ _ 2021 2021 2021 Direct Support Total £ £ £ 16,508 2,154 18,662 _ _ __ 28,226 3,811 32,037 |
Unrestricted Unrestricted 2021 2020 £ £ 36,299 33,614 _ _ Unrestricted Unrestricted 2021 2020 £ £ 1,151 1,485 _ _ 2021 2021 2021 Direct Support Total £ £ £ 16,508 2,154 18,662 _ _ __ 28,226 3,811 32,037 |
|---|---|---|
| __ 2021 Total £ 18,662 |
||
| __ 32,037 |
All expenditure on charitable activities was unrestricted in the current and prior year.
Direct costs on charitable activities:
| Repairs and maintenance Property costs Heat and light Depreciation Insurance Other direct Total support costs: Governance costs Audit fees Admin and finance costs Other support |
2021 £ 641 1,921 1,670 9,961 433 1,882 __ 16,508 __ 240 1,914 - __ 2,154 __ |
2020 £ 10,966 3,340 2,374 9,711 664 1,171 __ 28,226 |
|---|---|---|
| _ 150 60 3,601 _ 3,811 __ |
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
| 7 Auditors' remuneration In relation to audit of financial statements Accountancy services |
2021 £ 240 1,830 |
2020 £ 150 - |
|---|---|---|
During the year the audit fee of £3,000 (2020 - £3,000) was borne by Arcon Housing Association and £240 (2020 - £150) will be recharged to the Charity. In the prior year, the fee in relation to the preparation of the accounts of £1,800 was borne by Arcon Housing Association and not recharged to the Charity.
8 Trustee remuneration and expenses
No remuneration or expenses were paid to the Trustee during the current or prior year.
9 Tangible fixed assets
| Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Property £ 506,784 - - _ 506,784 _ 107,401 9,961 - _ 117,362 _ 389,422 _ 399,383 _ |
|---|---|
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
10 Investments
| Market value at 1 April 2020 Additions Gains/(loss) on revaluation Market value at 31 March 2021 Historic cost Investments are represented by: Bonds Equities 11 Debtors Amounts due from related parties Rent arrears Prepayments Other debtors 12 Creditors: amounts falling due within one year Amounts due to related parties Trade creditors Tenants in credit Accruals |
2021 £ 52,025 - 13,491 __ 65,516 _ 28,433 __ 11,883 53,633 __ 65,516 __ 2021 £ 2,057 - 222 __ 2,279 _ 2021 £ 10,092 51 2,196 2,758 __ 15,097 |
2020 £ 64,352 308 (12,635) _ 52,025 _ 28,433 _ 12,572 39,453 _ 52,025 _ 2020 £ - 379 880 - _ 1,259 _ 2020 £ 80,459 - 1,593 5,371 _ 87,423 |
|---|---|---|
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
13 Analysis of funds
| Unrestricted funds General Designated Endowed funds Permanent endowed funds Total funds Unrestricted funds General Designated Endowed funds Permanent endowed funds Total funds |
At 1 April 2020 £ 473,253 43,806 _ 517,059 _ 250 _ 517,309 _ At 1 April 2019 £ 482,826 43,806 _ 526,632 _ 250 __ 526,882 |
Income Expenditure £ £ 36,570 (17,782) - - _ _ 36,570 (17,782) _ _ - - _ _ 36,570 (17,782) _ _ Income Expenditure £ £ 35,099 (32,037) - - _ _ 35,099 (32,037) _ _ - - _ _ 35,099 (32,037) |
Gains and transfers £ 13,491 - _ 13,491 _ - _ 13,491 _ Losses and transfers £ (12,635) - _ (12,635) _ - __ (12,635) |
At 31 March 2021 £ 505,532 43,806 _ 549,338 _ 250 _ 549,588 _ At 31 March 2020 £ 473,253 43,806 _ 517,059 _ 250 __ 517,309 |
|---|---|---|---|---|
General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
The Charity designates funds in relation to anticipated major and cyclical repairs. Transfers to Designated Funds are based on Management estimates of future costs. Actual expenditure is expensed to the Income and Expenditure Account as incurred and a corresponding release of funds is then made from the Designated Funds. The balance is reviewed periodically to ensure its adequacy.
Endowed funds represent the historical cost of the amounts held in investments.
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James Ainsworth Almshouse Charity
Notes forming part of the financial statements for the year ended 31 March 2021 (continued)
14 Net assets
2021
| General Designated £ £ Tangible fixed assets 389,422 Investments 21,460 43,806 Debtors 2,279 - Cash at bank 107,468 - Creditors: amounts falling due in one year (15,097) - _ _ 505,532 43,806 _ _ 2020 Tangible fixed assets 399,383 - Investments 7,969 43,806 Debtors 1,259 - Cash at bank 152,065 - Creditors: amounts falling due in one year (87,423) - _ _ 473,253 43,806 _ _ Financial instruments Financial assets measured at fair value through profit and loss |
Endowed £ - 250 - - - _ 250 _ - 250 - - - _ 250 _ 2021 £ 65,516 |
Total £ 389,422 65,516 2,279 107,468 (15,097) _ 549,588 _ 399,383 52,025 1,259 152,065 (87,423) _ 517,309 _ 2020 £ 52,025 |
|---|---|---|
15 Financial instruments
Financial assets measured at fair value through profit and loss comprise current asset equity investments stated at market value.
16 Related party transactions
| Amounts due at start of year £ 2021 Arcon Housing 80,459 __ 2020 Arcon Housing 69,031 |
Amounts due at end Receipts Payments of year £ £ £ 10,238 (80,605) 10,092 _ _ __ 11,428 - 80,459 |
|---|---|
Arcon Housing Association is the sole trustee of the Charity. During the year Arcon Housing Association also donated professional services in relation to the audit and accounts fees of £3,000 (2020 - £4,800).
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Tel: +44 (0)161 817 7500 3 Hardman Street Fax: +44 (0)161 817 7683 Spinningfields www.bdo.co.uk Manchester M3 3AT
Private and Confidential
The Trustees James Ainsworth Almshouse Charity Quay West Trafford Wharf Road Manchester M17 1HH
8 October 2021
Our Ref: 00323903/HK/SH
Dear Madams/Sirs
Financial statements for year ended 31 March 2021
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Following our recent audit of your financial statements, we are writing to advise you formally that, in our opinion, there were no significant matters arising from our audit that require us to put them in writing. Other findings that are not, in our opinion, so significant as to require inclusion in this letter were discussed with you during the conversations up to sign off.
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As the purpose of the audit is to form an opinion on the company's financial statements, you will appreciate that our audit cannot necessarily be expected to disclose all matters that may be of interest to you and, as a result, the matters reported may not be the only ones which exist.
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We have prepared this report for your use only. It should not be disclosed to any other person without our express permission in writing. We do not accept responsibility for this report to any other person and we hereby disclaim any and all such liability.
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We would like to take this opportunity to thank you and your staff for your help and co-operation during the course of our audit.
Yours faithfully
For and on behalf of BDO LLP