James Ainsworth Almshouses Charity Trustee's Annual Report arKI A0￿nts Year Ended 31 March 2023 Charity Nurnber 224838 James Ainsworth Almshouses Charlty TN8ts9'9 report and flnonclal Statements for the yearendod 31 Mar¢h 2023 Pag•: Report of Ihe Thstse TN8te8'8 responBlbllltie6 8latemenl Independent auditol8 report ststement of finan¢lal actfvliles statement of fin8nGial pos5flon 10 Notes fom)Ing part of the flnanclal 8tat8m8nts Trustse Arcon Hou6lng As50Glation Ltd Alm8houses Man>3er: ATcon Housing Assoc]atlon Ltd Company 8ecretary and r89lBtsrod offlco Katrlna Cunliffe. Quay Wes( Traff￿d ￿arf Road. M8nche8ter. M17 IHH Charlty number 224838 Solicitorn Anlhjny Cc411ns SolicltOTS LLP, 134 Edmund Street, BITmlngham. B3 2ES Auditor Azots AudSt Servlce8, Fl* kbuge, New Road, Lancaster. L41 IEZ BankerJ CAF BanK 25 Kngs Hlll Averm￿, lQngs Hill, West Malling, Kent, ME19 4JQ James Alnsworth Almshouses Charity Roport of th• Trustse forth y￿r •nd•d 31 March 2023 The Trustee presents the annual report and the audited financial statements for the year ended 31 MaTch 2023, The Trustee has adopted the provlslons of Chariti85 SORP ￿ Edltkn (FRS 102) In Wepar1r￿ ts annual rep)rt and financial statements of tha chwity. Slructuro, G￿rnIn¢• and Management Arcon Housing As50clallon were apwjlnted as Trustee 1# June 2006. Th8Trusloe was P￿v￿1U8ty The Orde of St John Trustee Company. Slructurn and actlvltl95 The Charty, whiGh b reyl8lered vAth The Charity Commlsslon, 18 unincorF¥yated and has 88 Its C4)n8Oiut d8claralion of trust dabj 2 Marth 1968 {as 8￿nded1. In addNlon, the Charfty hokls furKls and investments with a vlew to the further developmant of Its Gharllable alms. Ory•nisatlon The Bogrd ofArcon Hou51ng *£60clalv)n Thets six tknes a year and carries out an Annual Revlew. Corporate Tru5te8. the trustse meets at loasl hvice a ye8rto dlscu8s performance, budgets and buslness F4ans 8nd approve the flnanclal statement8. Oblectlvv and Actlvltles The Chavltab18 Ob￿ts ofthe Charity are: to provide houslNJ accow￿0d8lknn 8TrJ as61star￿0 to help hou8e people are elderly or disobled and assoclated lacilitle6 and amenNle8 for such pecple or the rellef of the aged. dl88bled: gnd to further such general ¢haritaNe objects as the Trustee may dotemilne. Flnanclal r•vl The total Incomlng re80urce8 were £44.347 for the year to 311t Marc* 2023 12022: £37,375). prodwlng an operatlng surplus of £1S,95612022= £2,934). Losses on investments re8ulteil In a surplus of £13,598 for the 12- month ￿rfod to 3161 MaTch 2023 {21Y22: surplus of £9.051). Accumulated surp1￿9$ he]d In general funds were £528,181 (2022: £514,5831- Golng concem In the financlal year 2022123, the var In Ukraing has caused many suppty slde 8hort4es, speclltcalty for energy supp1188 which In tum ha5 ¢8used inflaknnsry in¢rea8es In a ￿de range of products and services. ￿￿en revwing the bL￿get fcrfe¢èsts the Trustee considered Ils IM￿1, both swifjc8lly snd on the UK economy, togetherwlth rfsks ar¢)und principle assumptions and regulatw change8. James Alnsworth Almshouses Charlty R•port of th• Tru8te• for th• ymr end•d 31 March 2023 {contlnu8dJ The bustness pkqn lo￿aSts slv)w th8l Ihe charity has $uffLient liquid funds Sn place that provtde adequate resources to lund all comrryttad capital èxpendibjre and Investment programmes togethgr wRh day-to-day Itles. The charity's actNitlès are expected lo contlnue U￿han0￿j for the foreseeable future and the un¢ertalntie8 consKl8red, InGludlng the pandemlc and the inllatlonary pre55ures described aboY8, are expecied to have terial long temi Impacton the charfty's finan¢la1￿abl1lty. On thi8 ba8iS theTruslee has a reasonab￿ exp8CtalpJn that the charity has adequate resour¢e8 to Continue in operalwal ex13tence for the foresaeable future. belng a P8rkKI of at ￿ast 12 nY)nlh8 after the date on whlch Ihe ffin8nci81 statements are syned. Therefm, il (y)ntinu8s to adopt the going corwn basis in Ihe flnancHI slater(¢nts. R￿erve1 po The Twstee has considered the need for an approwAte level of reseTves kn conJunctlon vlth the guidanco b$ued by Tho Charfly Comrrission. In determining a re8eNe POI￿y. the Tru8tee has Idenlffied cor8 obpthes to be m81. The8e are a5 follow8.. the establISh￿nI ofadequate frèe reserves (exduding fixed assèts} to ensure that the Charfty ha$ adequate IK4Llldity to meet any 5horl-term tlu¢tuatk*bs n c¢￿panCY levels or ex￿p￿onaL ￿)616 outsKle the scope ofthe budggt and the deveknpmenl of a strong b￿ar￿A sheet po6itwe Cash flow to SUFVOrt the fvndiNJ of the iryrovement of the ￿stIr￿a property. The level of reserves requlred 18 detemined using comprehenslve budgets and cash Ilow forecasts. Regu18r upd81es and monSlorfng of these d￿urrBnts 8re carrfed out to énsur8 that a surplus ts ach￿ved, and cash fh)w18 adequate for the needs of the Charity. The benchmark for the free reserves forthe Charlty belwean £400,OCXI and £S00.000. At th8 ye¥ end the Charity has totsl funds of £572,237 (2022: £658.6391 of whkh £571,987 (2022.. £558,389118 availabb at the discretion of the trustee and deem8d as free reserves. Rlsk manag•ment The T￿￿tee h46 identlfied tho ri8k5 to which thè Charlty is exrnBaJ and, for eaGh of these, an ass8ssmnt ha5 been made as to Ihgir Irrpacl, seveAty. and PTob8bllty. Inteffl￿ and external ￿ntrOlS have begn revIev￿d effectNgneBs In mibgallng these rlsks. Systems have been establlshgd to w￿nage the level of risk includlng the fo1th￿ng.. The revlew of major risk related in¢idents land steps taken to a¢*lt888 these) * eacth meel¥u of the Bo¥d arby the Group Audit and Rlsk Committee of the Trustee. The Intem81 conlrc4 sy8tem is monllorwj arKI supporied by external audit that bs able to provhje an Indep￿dent perSp￿1ve on the manag8menl of risk wllhkn the Charity. The managenxnt and control of rtsk Is an oryoing proGess In the Chariiy. Respons*Jllity for ensuring that there are appropriate risk m8nagement and aud6t 8trL￿tur8s in place, and for reviewing those slructrJres. Is delegated to the Group Audit and Commlttee of the Trustee. whlch is a shared commlltee wFth the Bolton al Home Group. James Ainsworth Almshouses Charity Raport of tho Trustse for th• y•arondod 31 IAArch 2023 (contlnue Fundlng Source •nd EXpendI￿r0 The prfncipal fvrKllng sourres are for provldlng hoLF81n9 accc*yYncrflaUon. Expenditure 1$ all related to ovkllng th15 ￿0￿M)datIOn. Futsr• dgvolopments A stock (J)rKlitlon 8urY8y hos been coryleted ￿1¢h will Infomifirture Tg]uirements for Improvemgnts to properti85 and programme$ are belng prepared ￿1rdIn￿ty. Audltor Fdlowlng a retenderfng of the contract of extem81 audlL new auditorn, Azets Auijit Sgrvkes Llmited have auditod the currentyears ￿￿unts. A rgsolutlon for the re4ppolntment of h28ts Audil Servkes Limited as a￿lItOrS of the A88cKiation 15 to b8 proposed at the Annual G8neral Meetlng in line With the ter￿ts of the cha￿tIeS Acl 2011. rcon Uglng Asso¢latlon Ltd Dats. 21 loq 12023 James Ainsworth Almshouses Charity TfU8ts0'8 respon8lbllltles Statsment forth& year ond•d 31 Pl4vch 2023 The Trustse Is resFonsi￿e for preparlrKJ th6 Annual rekxyi and Ihg *nanGlal Stat￿9nts in a(%ordance appliGabl8 law and regulations. Charlty law requlres the Trustee to prepare ffnqndal 81atem8nts exh financlal year In Accordan(8 with Unlted Kingdom Gener81ty A￿pted A￿oUnting PracUGe (United Kingdom A￿Un￿ng Standard8 and appllcable law). Under charlty law the Tru¥te8 must not approv8 the financial state￿￿nts unless they are 8ati8fK8d that they gNe 8 true and fair vbw of the stale ofaffairs of the charity and ofthe Incomlno reBourc8s 8nd appllcation of resources, Includlng the incomp and 8xpendliure, of the tharity th81 pedod. In pr8p8ring these finan¢lal statem8nts, th8 TTUStee Is Tffjulred to: select su6table accounting polIc￿S and thon aptAy them Th)r￿lsten￿y. make ILKlgements and accounting estimate¥ that are reasonable and prudent 8t8t8 Wffieth￿ aP￿Icable UK Accounung Standards have teen follthved, Subl￿tIO t￿Y materlal dyrtures dlsdose(l and explained in th& flnanciaS ststements; and prepare the finandal statements on the gdng ¢oncern basls unless ￿ is inappropriate to pregume Ihat the ch￿ty wlll continuè In t￿81n858. The Trustee18 resFoll81ble for keet4ng adequate accounting records that are 8ufftGlent to show and èxplain the charfty'8 Ir8n8aGttons and disclose wlth reasonable ac￿[aCY at any liw£ the Ilnanclal position of the tharity and enab￿ them to ensuTr th81 the finarrial statements Compiy￿lh tha Charldgs Ac12011. are also responsible for safegusrding the assets of the ¢harty and hen¢e for tthlng reasonable stgps for the pr8venlbn and detecbon of fraud and other lffegularllle& James Alnsworth Almshouses Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF JAMES AINSWORTH ALMSHOUSES CHARrrY Oplnlon We have audlted the financlal statements of James Ainswcwlh Almhouse8 Gharlty (the 'Charlty) for the Ferlod ended 31 Mar¢h 2023 which ¢omprise the statement offinandal activ1t￿, the 8tatem8nt of financial posillon and notes to th8 financlal 8tatements, I￿ludIng significant a¢¢ounlng policbs. The financlal re￿r￿ng framgwrk th81 has been applled In thelr preparat*)n is appllc2ble law and Unlted lQngdom Acwunting Standards, I￿lUdIng Fln8nclal Reportlng Standard 102 The Fina[￿181 Reportlng Standard applicablg in the UK and Republtc of Ireland (Unlted Kkngdom Generalty A￿epted Accounting p￿tiCe). In our opinion the financlal statsments.. gfve a tru8 and falr v￿W of the slate ofthe Ch8TWs affalrs a8 at 31 March 2023 and of Ns surp￿8 Ihe perl¢xl then ended; have been proFerty prepared In accordance wllh Unlted Klngdom Generally Ac¢epled A(xounllng Practice", and have been prepared In accudance wilh the requlrements of Charities Act 2011. Ba81$ foroplnlon We conducted our al￿11 In accordance wFth Intamational Slandards on Audltkng {UKI (ISA8 IUK)) and 8ppllcablo law. Our responsibilities under tho$8 Standards are further described In the Auditof8 responslbl1lo￿ for the audlt of the financial ststsments SectiC￿ of our report. We are independentcf the Ch8rliy In acc¢xdance wlth the ethical ulrements that ere relevant to our audit of the fin8ncial $tatsments In tho UK, induding the FRC'S Ethlcal standard, and we have fvlfill&J our other ethicJ responsibilities in accordance with these wuirements. We be]￿e Ihal the aud6t evldenGe we have obtain￿1[5 suffk4ent and appropriate to provide a ba81s for our oplnlon. Conclu8lon8 rèla¢lng to golng conGfjm In auditlng the flnancrdl statements, w8 have concluded thai the Trustee'8 use of the golng concern basls of aGcounling In the preparatlon of the finan¢lal stslemnts Is ap￿o￿late. Based on the work we llave perf(￿ned, we have not vjentified any material unwtainti8s retating to events or condttion$ IhaL Indivhlually or o)Ilectfvely. may cast 6SgnSNcantdoubt on the Charity'8 ablllty to continue as a golrwJ concern for a pèrlod of at least twefve months from whon the financial ststam8nts a￿ author188d forlssue. Our reSP￿sIbIlI￿85 and the reSpOn￿bIll￿9 of the Trustee YAih regpect to golng c(￿￿ern are de8cribed In the levant secth)ns of Ihls rep Othor Inforniation Th8 other InfoTmaUon comptse8 the infomiallon knclLKled in the annual report e)ther than ihg financLql statements and our audttotrs reFQrt Ihereon. The Trustee is reS￿nsI￿e for the other information contslned wtthln the annual report. Our opinlon on the financial statements does not rxwgr the other Informatton and, except to the extent otherwtse explirydy stated in our report, we do not express arry form of assuran￿ conclu8lon thereon. Our responsibility is to re8(1 the other inf0M￿lI0n 8JKI, In dolng so, conslyerwhethw the other Infomiatlon is Mater￿ inwnsist8nt with the flnancS81 State￿Ents, or our kr￿￿dge obtained In the course of the audi( or oth6Th￿se 8ppears to be materlalby mlsststed. If we Identify such material Inconslslencigs or apparent malerf81 m1sstaterr￿ts, we are required to deiermlne whether thls gives T￿9 to A materlal mwtstement In th8 finandal 8￿ten￿nIS themselves. If, based on the work we have perlormed, we ccfficlLKle that thera 18 a matsrfal nwsststement of thls other Inf0m￿tI)n, we are regul￿1 lo report that fact. We have nothlNJ to report In thls regard. James Alnsworth Almshouses Charlty INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF JAMES AINSWORTH ALMSHOUSE8 CHARrrY (conllnuad) Mattors on whlch we are raqulrod to report by •xc•ptlon We have nothlng Io Teport In respect of the following matters In rdatlon to whlch the Charttks AGI 2011 requlre us to report to you If, In our cyinknn.. the Infomiatknn glven In the Trustee's Annual Rewrt or the flnand81 y88r for whlch thé finanoial Staternnts are prepared are not consistent the flnanclal ststements: or adequate a¢countlTVJ records hav8 not been kepl,. or eertaln d18doBur88 of dlrg¢tors' remunerallon by law are not mpd8' OT the ftnarKial statsments are not in agregment with the ￿lU￿￿'ng record8 and retums; or we have not r￿8fved am the SnfoTmabon and 9xpl8nations we Tequire for our audlL R•spon8lbllltles of Tiu8teo AS explained more fully in the Trustse's responslbiliiies $tatemnt Set c￿1 on pago 4, the TnBtee 19 rosponsible for the preparalon of th8 finarKlal st21ements and for belng sallsfled that they gwe a true falr vlew, and for such internal control as the boaTd membeTs determina Is ￿￿esSary to enable the preparatlon of fIna￿la1 stat￿nentS that are fre8 from material mlsst*&menl. Wh&￿er due lo fraud or evror. In preparing the financral 8tatanents. the Trustee h responsSbl8 for assessing the Ch*ity'8 ability to continue as a g￿ng concern, dISc￿Ing, 88 appliGable, matters ￿lated togoing concem and uslr8 the golng ¢oncem basls of accounkng unloss the Truste8 eiU)er Intend to I￿UKlate the Charfty or to cease operatms, or have no reAlisfK altem8tbve but to do Audltovs r•sponslbllltl8s for the audll of tho Ilnanclal statomonts Our obiectN&S are lo oblaln reasonable assuran￿ about whether the finandal statements a5 a whole are free fmm material misslatsment, whether due to fraud or error, and to L8sue an audltorf$ report that includ8s our oplnksn. Reagonable assurance is a high level of assurance but Is not a gu8ranlee that an audit Conducted In 8¢cordanrA wllh ISAS {UKI will a￿ayS detect a materfal mlsstatemgnt vthen it exists. Mi$statements can arf8e from fraud or error and a￿ considered m8tdlal if. Indfvidualfy OT in the aggregate, they could re880nably expe¢ted lo influence the economic deelsksn8 of us8r8 tak8n on the basi5 of Ihese financl81 stat￿ents. A further descrlptlon of responsibllltles Is availabl8 on the FlnancLg1 Repo￿n9 Coun¢ifs website at Mtys.'IAvw.frc.cYg.ukJ8uditor¥resFonsibilities. This descrlpknn forn￿ part ol OUT audil016 report. James Ainsworth Almshouses Charity INDEPENDEKT AUDrroR¥S REPORT TO THE TRUSTEE OF JAMES AINSVIORTH ALWISHOUSE8 CHARrrY (contknufyd) Extent to whkh the audll was consldgred cap•blo of dotectlng Irrngularltle3, In¢ludln9 fraud lffegulariti95, incI￿11ng fraud, are Instanoes of non40mplianc£ v￿th laws and regulauons. We d&s￿n procedurns in Ilnèwlth our respon8ib1111188, ouulned above atx1 on th8 Financial Reportlng Coundl's website, lo détect materlal misstatements In re6Wt of IrregularTile8, including fraud. We oblain and update our understandlng of the entity, its &tivities. Its ¢ontrd envlronff￿nl, and Ilkaty future dèvdopmenls, Includlng in rèlatlon to the 1g3al and regulat(wy framvwork appllcable and how the enilty is comptylng with that ￿ftW￿rk. Based on thls understandlng. we Identlfy and ass688 the r4$ks of material mlssl*ment of the financial slatsments, vthether due to fraud or error, de5h3n 8nd perform audll procedures reswnsfve to those rtsks, and ot￿ain audlt ovthnce that18 suffident and approprfate to provlde a basis for 0￿r opinlon. Thls IncludeB c(￿87der01￿)n of the risk of 8Gts by the enuty that were contrary to W*able W8 regulations, lryJudlNJ fraud. In response to the rlskof irwul¥itl•s and ntsn-c0mplla￿ewl1h laws and regulatlons, Indudlng fr8ud. we deslon procedur¢$ which Induded.. Enquiry of management and those charged with goveman¢e around athal Bnd pOle￿bal Iltigation and claims a6 well as actual, su8pectgJ and alleged tra[￿. Revlewirkg mlnule5 of meetings of those ch￿ged with govem8n¢e', A5seg8ing the extent of compliance with Ihe laws and regulation8 ¢onsldered to have a dlrect material effect on the financial stalemgnts or the operation8 of the chaT￿Y through enqulry and Insp¢￿n. Ravtewlrbg finanGkg1 statem8nt dk8d05ures and testlng to 8upporhng do¢umentstion to a5se8S ¢ompNance wllh appllcabb18W8 and wulatlons: PerfoTmlng audit work over thè risk of management bia$ and override of controls. 1rdudW￿ le8Ung of )urnal entries and other adju8tmenl8 for approprlateness, evaluating the buslne8s rallonale of slgnifLant transactions oulslde the nomwl wirse of business and revlewlng a¢￿Untirrfj 86b'mates for indicators of potential blas. Bec8usè of the knherent Ilmltat￿$ of an audit thgrn is a rlsk that ￿ wll Th)1 detect all irregularities, Ineludlng those leading to a mateflal mlsststernnl in the financlal 8tstemenls or non-compllancg With regulatlon. Thls rlsk Increases Ihe more that cornpllanc9 wllh a law or r8gul8llon Is removed from the events and Iransadon8 refi8¢ted In the fina￿l81S￿lenEnts, as we wlll be less Ilkety lo become awara of in5t8nce$ of non-eKJmpllanc0. Th8 rfsk of not detectlng a matgTial misstatement resullng from fraud is hYJh8r than for one re8ultlng frcwn error. as fraud may Invdve ¢ollusion. forgery, intentional omlsslons. misrepTgsentations. or the overrlde of Internal control. Us• ol our roport This Teport18 mode Solety to th8 Charlty's trustee, as a body, In accordance with the Charthes Act 2011. Our audll work has been undertaken sc that we mighl State to the Charity's Iruslee those matt&rs we are requlred to stsle lo them in an audilo¢s report and for no other purpose. To the fulknt extent permltted by law, we do noi accept or assume responslblllty lo anyone other than the Chafity and the ChBTW8 trustse, as a to¢Jy. for our audit worK for this report, cf for the opinions ￿ have forn%d. tekj ¢lth &AL) (otj Susanna Ca88ey {S8nlor Statutory Audltor) For and on ￿half of Axets Audit S•Thl¢es Chartered Accountsnts statutory Auditor 21 sept￿nber 2023 Fleet House New Road Lancaster LA11EZ James Ainsworth Almshouses Charity Sl•tonwnt of flnonclal actlvltl88 for thg year end•d 31 March 2023 Tot•1 Total 2023 2022 Incomo from." Charllable aotivlties Investments 43, 1,282 43,085 1.282 38,352 1,023 44.437 44.437 37,375 Expen￿t￿le on.. Ch8ritabb actlvlUe8 28.391 28,391 34,441 28,391 28.391 34,441 Income beforo galn$ and transf8rn 15,956 16,956 ILossyGalns on Invthents (2.3581 {2,358} 6,117 Net ￿￿emo￿t• In funds 13,598 13,598 9,051 Reconclllatlon In fund8 Balance brought fC￿Vard al 1 April 2022 Movement in funds 558,639 13.598 558,639 13,598 rA9,588 9,051 Balance G8Ni•d forward at 31 March 2023 F12,237 572,237 668,639 The notss on pages 10 to 18 form part of Ih¢$e financlal 8laterT*nts. James Ainsworth Almshouses Charity 8tatomgnt of flnancljl posltlon at 31 March 2023 2023 2023 2022 21122 Flx•d assot8 Tangitjle assets Invesknents 376,301 69,270 379,S62 71,633 446.576 461,196 Cumt QSg¢ts Debtors Cash at bank io 2,168 133.616 1,840 118.649 136,783 120,389 Cr•ditorn: amtsunts faillng du• wlthln one year 11 19,1221 112P45) Ngt cuffenl I￿9￿ 126,661 107,444 N•t assot• 672337 65B,639 Fund8 Permanenl endowed fund Unrnstrtcted Deslgnatsd ￿serveS General funds 250 250 43,806 528,181 43,8 514,683 571,987 668,389 Totsl funds 12 571237 668,639 The Ilnancia statements were approved by the Board of Trustee and authodsed for issue on 21 September 21Y23 Arcon Houslng AsBochtion Ltd Tru8tg0 Charlty number 224838 The not8s on pages 10 to 18 form part of these Ilnancial $tatements James Alnsworth Almshouses Charity Not•s formlng part ofth• flnanclal 8tatem8nla lor th• yo•r •nd•d 31 March 2023 A¢¢tsuntlng polk108 Bgsls of prepar8tlon olaccounts The financial 8tatemenls have been prepared in accoTdance wllh the Charities SORP Edllion IFRS 1021- AccA)undng and Reportlng by Charllie5: Stat&ment ofRecommended prac1r￿ applIca￿e tocharllles prepadry thelr accounts In accordance ￿th the Charflles SORP (FRS 10218nd the Charitkns Act 2011. All armunts aTe presented In p)unds sterllng and are round￿ lo the nearest £1. The Trustee wn81det8 that the Charlty m80ts the deflnilbn of a Publlc Benefit Ent6ty under FRS102. The foll(y+ArvJ wincipal a¢￿untIng wlicies hove been app￿¢￿.. Income represents rental Incc4ne r￿91Vable and other Inco￿. Incomè is reGogn18ed vh)ere there entlllen*nt, oertalnly ot receipt and the awKJunt ¢an b8 metsured wlth sufficlenl reliablllty. Rental Inco￿ Is recognhed when the propety18 avallable for16( net of volds on a receivable ba5iS. Inve8tmenl income Is recognlsed on a recefvable basis. Interest on funds held on ¢kpD8It Is I￿luded when and the amnt C8n be m8asured rdlably by the Charty: thi318 norn￿1￿ upjn notification of the Inlergst pald or payable by the llistitullon with whom Ihe fijnds ore dewsltgd. Expenditure Expendlture on Gharitsble aclfvllie5 relates to all costs of provlding houslng accomnK•dalk)n, Expendlture on charltoble acuvhies is incurred on directty undertaklng the 8ctN1Ues whlGh fvrther the Charlty'6 objectives. as well 85 any associated 5UPW)rt costs. Support Costs of th8 Charlty reprewt the audil fee8, admlnlslrat ¢4)sts and thance costs. T8wlbl8 fixed as88ts Tangible flxad 85se15 a￿ depreciatsd over Ihelr useful lives taklng Into account r95idual values, where approprlale. The actual Ilves ofthe assets and rèsldual values are assessed annually and may vary dep8ndlng on a number of factors. In re4ssessing asset lives, fsclors su¢h as technologlcal Innovatlon, woduct Ilfe cycles and malntenance programrnes are taken into a¢tounL Resldual value esses8ments conslder issues SUGh as future morket conditions, the remanlng life of the 955et and projected dlsposal valueB. 10 James Ainsworth Almshouses Charity Notès fornilng part of lh• flngnclal statsments for thg year •nd¢d 31 March 2023 (etxthuod) Accountlng pollcles fcontinu8d) Housing andDeprnth&llon H￿SIng propert￿5 fr*rent ore $t8led atcoslle6s accumulated depreciatknn. Freehold land is rn)t depreclaknl. All propertl8s are revletted for impalrment annually. there a hous1￿ pro￿rtY comprises two or nv)re major o)M￿ent6 wlth substantially dlllerent useful eGoTh)mic Ilvos, each component Is accounted for Separat￿ and depreck*d over tts Indlvidual usefvl •r￿*￿IC Ilte. Expendlture relatlng to the 8thequent replxomnt or renewal of GomFonents Is ¢8pitallw as Incurrthj. Componont UEL New build hcuJlng structure External wort8 125 years 40 years 60 years 40 years 30 years 30 years 1S y8ars 30 years 20 years IAfjn(lowslDoor8 Elecltlcal Bglhrooms BoileT$ Heating systems {exdudlry boilers) Kltchens Impalrm8nl Reviews fc¢ impairment of hou5kng pr¢¥*ertles are canled out vthen a trlgger ha8 t￿cUrred and any Impalrmenl kxs In a cash generatirwJ unit is ￿ognISed by a charge to Ihe Slalement of Comprehensive Incomg. Impalmienl Is i￿gnISed where the ¢arrylng value of a cash generatlng unlt exceeds the hlgher of 41s net reallsable value or 118 value In use. A ¢a8h generatlTrJ Lbnlt Lq nOr￿llY a group L)f Wopert￿ at scheme level vh￿e cash Income can be separately idenllfied. Followlro a IrbJgÈrfor ImpalrThnl, the Charity perform Irrylrment tests on falr valu8 less costs to sel or 8 value In use cakulallon. Tre fair valu818ss costs to seu cakulation L8 based on available dAla from 88bs tranS￿OnS in an arm's length Iransactlon ￿ slmlLgr cash 9enerallThJ unlts Ipropertiesl or observable market prlces less incremental ¢osts for disposlng ol the properties. The value in use cakulation 1$ based on eilh8r a depreciated repLqcement Gost or a dlscounted Gash model. The depreoiated repl￿erne￿t cost 18 based on 8vallable dala of the cost of conslruoung or aquiring ￿p*ement properties to provKle the same level of servlce potenllal to the Chadty as the exrsting propety. The cash fl(AVS are derlved from th8 buslness plan the next 30 years and do not include re$trucluring Sctfvll￿ that the Charlty i8 not yet permtited lo or signlficant future inVes￿nts that wlll enhance the assefs perfoTmanGe of the Cash genemting unll belng tested. The recowabl¢ amount is most senS￿￿e to the d15count rate u89d forthe di8¢ounted cash nTr)del as ¥￿11 es the expected luture cash flow8 at)d the gro￿ rale used fDr extrapglath)n purpose8. Inv88tmgnts Fixed asset inv83tments are a form offln8nclal Instnjment and are Inlllally recognised at theiT tranS￿tion cost 5ub8equenty measured at falr value at the Balarbce Sheet dale, unths th& value canntst te m8aswed reliabty In whi(* case11 18 measured at cost impairrr*nt. Investment galns and losses. whether realP68d or un￿all38d. are Gomblnad and presented as 'GgJnsl(Lossesl on Investments, In the Stalem8nt of Flnancial Athllles. James Ainsworth Almshousas Charlty Not•$ fomilnB of Ihg fln•nclal stalpm•nt8 for th• year ended 31 March 2023 (continu•d) Accounllng pollcl•s (continued) Financlal Instmments The Charlty onty ha8finarKlal assets and finand81 liabllhles of a ￿nd that quallfy as bask flnanGi81 InStrun￿ftts. Basi¢ fInanG￿ Instruments are initlalty r￿OgnIsed at Iransaotton value and subsequently measured at thelr 8etUoment value wllh the eX￿p￿C￿ of bank loans whlch are subsequen￿Y m8asured at an￿r￿Se￿ cost Using the effethe interest meth(xl. Fund 8ccounHJ General fvnds are unrestriGbJ fun(18 whlch are ayalkqble for use at the dlscretion of the Trustee In furtheranGe of the general obieotr¥es of the Charfty and whlch havo not been de51gn8ted for other puvposes. The Ch8TIty deslwAtes fuThJs In Telation to anuclpated malor and ¢yclkal r8palTS. Transfers to Designated Funds are based on Management estlmales of future costs. Actual expenditure15 expensed to the Inc(The and Expenditure Account as Incurr&J and a COTrespondlng relea8e of funds is then made from th8 De81gnated Funds. The h￿n0e Is reviewed perk)dlGalty to ensure tts adwuacy. Judgem•nts and key sources of 05timatlon ond unGOrtalnty The PTeparation of the finandal statements requires management to make judgements, 8slmate8 and a55umptions that affectthe amounts reported forassets and liabilltles as al the Ststement of Financial P0s￿On date and the amJJnts reported for income and expgnses during Ihe year. However. the natUTe of estifrntlon rrtans that acttjal outc1Th6 could differfrom those 88￿mates. The following IutJgemEnts (apart from those invofving eBtimat8$1 have had thè Slgnthcanl effect on amunts rwnised in the finandal 8tatWn8nl8: G￿n9 concem 8ssessmgnt In the financlal year 2022123. the war ln Ukraine has caused many supply side shortages, s￿cfflc￿1IY for ènergy suppues whl¢h In tUTn has ¢auwJ Inflationary Incre8ses In a wide renge of products and servlces. W)en revlwng th8 budget arKI forecasts the TTUStee consldered ils impact, both specifically and on Ihe UK ormomy. together wlth tsks around princiKAe economlc assumpkns and wulatory chang6s. The busine8s pion forecasts shcpw that the charfty has 5ufklent liqubj funds and debt Tradlitth In place that provlde adequate ffjsources to fund all committwj capital exFendilure and investment progr8mmes logeth8r wlth day-ttrday aotLvhle8. The charlty'8 8ctfvii￿s sre expgcted to conthiue U￿hanged for the forgseeable futuro and the unoertalntks consldered, Indudlng the pandemlc and the Inflatlonary pressur8s described abovg. are not expected to have a materlal long term Impact on ts charity's finanolal vkgt411ty. On thls ba$ls the Trustee ha5 a reasonable expeGtstion that the charity has adequaie resources to conllnue in operauonal e￿stenCe for the foreseeabte future, being a perlod of al least 12 months after the date on whlch the financlal statements are signed. Therefore. It continues 10 odopl the golr@ concem basls In the tinanclal Statements. 12 James Ainsworth Almshouseè Charlty Not98 fomilng part ofthe lknanclAI $tat¢ments for thè yè•r ended 31 March 2023 (condnued) Income from charhable actfvitl88 Unr88trict•d Unyestrlcted 2022 Housing accommodatton and asslslance 43,lJ6S 36,352 Inve•tm?nt Income Unrestrlctod 20rJ Unr•strlcted 2022 Interest dlvidend8 on investrnent deposlt 8￿Ints 1382 1,023 13 James Ainsworth Almshouses Charity Notss fomilDg part of the flnanclal statomonts for the year ended 31 March 2023 (contlnuedj Expendlture on charltable actlvRI•s 2023 Dlr•ot 2023 Support 2023 Tol•l HoLBlng accommcdatton assistsnce 17.302 11,089 28,391 2022 Dlwct 2022 Support 2022 Total Hou8ing eLeC￿ny*1811on and 88slstance 23,699 10,742 34N41 All expendmure on charftabl8 acllvlkne$ was unrestrkted in the Current and prforyear. Direct costs on charftable actfvltle8'. 2023 2022 Repairs 9￿j nHintenar PropeTty costs Heat and Ilght Depreciation Insuranc other dlrect 4,220 4,694 1,954 5,422 377 635 7.014 1288 1,738 9,880 369 17.302 Total support costs.. Govwnance tO8ts Iwhlch repre80DI the oYPPOrt ¢08ts) Auditfees Admln and finance o)5ts other support 1.828 73 9,188 1,814 97 8,832 11,089 10,743 14 James Alnsworth Almshouses Charity NotsB fomilng part of the flnanclAI statemènts forthe year endfjd 31 March 2023 {¢ondnu Auditors. r•mun•ratlon 2023 2022 In relation to audll of Ilnarthl slatements AcQ￿ntancY services Ourfng the year the audll fee wa8 bome by JaI￿S Answcth Almshous95. Durfr￿ the prior year the audit fee of £3,150 (20221 was bome by Arcon Houslng A8SOCk91ion and £1,8W {20221 was recharged to the Gharlty. Trustèè r•muner•tlon and •xpons•8 Durlng the year, the Tru8ts&, Ar¢on Houslng AssocL911on was pald a manag8nwnt fee ot£9,188 (2022.. 8,827). No other remuneration or wonses were paid to the Truste8 durlng the current or prlor ye¥. Tanglbl• Ilxed assets Prtsp•rty Cost At 1 April 2(Y22 Addlti)n8 Dlsposals 506,784 2,161 {2,7231 At 31 March 2023 506,222 Doprooiation At 1 April 2022 Charge for the year Dlsposal8 127.222 6.422 (2,7231 At 31 March 2023 129,921 Netbook valuo At 31 March 2023 376A01 At 31 March 2022 379.062 15 James Alnsworth Almshouses Charlty Nole8 fornilry part ol the flnanclal statsm8nt8 for the year oDd•d 31 mA￿h 2023 (contlnued) InvoStm•nts 2023 2022 Market value at 1 Aprll Additions DL8POS8b GalMI(Los8) on revaluath)n 71,633 66￿16 12,3681 6,117 Kqarketvalue at 31 March 69375 71,633 Historfc cost 28h33 Investments are ￿presented by.. Bond$ Equltles 9,213 11,046 60W7 69,275 71,633 10 D•btors 2023 2022 Amounts due frc¥n related partiès Rent arrear8 Other debtors 1168 1,186 1168 11 CrndltorB: amounts falllng du• wlthln one yoar 2023 2022 Amounts due to related partle8 Trade creditors Tenants in credit Accrua46 4,758 6,171 2,236 Z,128 2,238 0,636 9,122 12,946 16 James Ainsworth Almshouses Charity Not•$ fomiing part of the Ilnanclal statsm•nts fortho y•ar 8nd•d 31 Ilarch 2023 (conrfnuod) 12 Analys1• of fund¥ At 1 Aprll 2022 Galn8 and transfers At 31 March Income Expendlturn Unrn8trfct•d fvnd6 General De$lgnated 514.583 44,347 128,3911 <2,3581 528,181 43,808 558.389 {28,391) 571.987 Endow•d fund• Pernwnenl erKJ(Ywed fund8 250 Total fundB 668,639 44A47 128A91) 12,358 572,rJ7 At q Aprll 2021 Galns and tr*n8hrs 31 March 2022 Incomfr EXpendI￿rg Unr•strkt•d funds G8neral Desvjnated 505.532 43,806 37.375 {34,441) .117 514,583 43,8( 549,338 37A75 134441) 6,117 55B,389 Endow￿ fund8 Pgrrronenl endowed lund8 250 2KI Total fund8 549.688 37,376 134A41) 558,639 General fvnds are unrestrfcted funds whlch are availablg for use atthe dlscretlon ofthe Trustee In furthewce of the general obJ￿tIveS of the Charlty and whlch have not b88n designated for other purposes. The Chwlty dasignales funds In relation to anllclpated major and cyctlcal repalrs. Transfers to Deslgnated Fund3 are based on M8nagemenl esuwotes of future costs. AcbJ81 expenditure is expensed lo the Income and ExpendIlU￿ Account as Sncurred and a corresponding rekase of funds is then made from the Designated Funds. The balarth Is reviewed periOdKa1￿ to ensure its alequw. End(Med funds represent Ihe hlstorlcal cost of the arrK)unts held In investments. 17 James Alnsworth Almshouses Charlty N¢)tos fomilwJ part of the flnanclal Btat6ment8 for the year ond8d 31 ktsr¢h 2023 (¢ontlnuod) 13 Nét assets 2023 Genoral Doslgnatad Endowod Total T8nglble fixed a55ets Investments Debtors Cash at bonk CredltOTS'. amounts due kn one 376.301 25,219 2,168 133,815 376,301 89,276 2,168 133,815 43,81 250 (9,122) (9,122} 528.181 43,806 572,237 2022 Tangible fixgd assets Investments DebtQf5 Cash at bank Creditors.. amounts falllng due in one year 379,662 27,577 1.840 118.649 379,562 71,633 1.840 118,549 43.8C 250 <12,9451 (12,9451 5145B3 43,806 250 ,639 14 Flnancial instruments 2023 2022 Financlgl assets m&q3ured at faw v81ue through wofit and1086 69376 71,633 Financlal assets me8sur&l at falr v8lue through proffi 8nd1088 compri8o ¢wrrent asset kond$ and w4uity Invesbnents staled at market value. 16 Rglat•d party transa¢tlon8 Amounts duo at start of year Amounts due at end of y•Ar Rec•lpts Payments 2023 Arcon Hou$lng 5,171 26,593 (27.006} 4758 2022 Ar¢on Housing 10,092 19,814 P4.734} 6,171 Arcon Hou8lng Assc¢l8llon Is the SO￿ trustee of the Charity. During the prioryear Arcon Housing A3sockqtlon also donated prof8651onal Sgrvkes In reLqtion to th8 sudit and act4)unts fees of £I.8￿12022). 18 James Ainsworth Almshouses Charity Trustee's Annual Report arKI A0￿nts Year Ended 31 March 2023 Charity Nurnber 224838 James Ainsworth Almshouses Charlty TN8ts9'9 report and flnonclal Statements for the yearendod 31 Mar¢h 2023 Pag•: Report of Ihe Thstse TN8te8'8 responBlbllltie6 8latemenl Independent auditol8 report ststement of finan¢lal actfvliles statement of fin8nGial pos5flon 10 Notes fom)Ing part of the flnanclal 8tat8m8nts Trustse Arcon Hou6lng As50Glation Ltd Alm8houses Man>3er: ATcon Housing Assoc]atlon Ltd Company 8ecretary and r89lBtsrod offlco Katrlna Cunliffe. Quay Wes( Traff￿d ￿arf Road. M8nche8ter. M17 IHH Charlty number 224838 Solicitorn Anlhjny Cc411ns SolicltOTS LLP, 134 Edmund Street, BITmlngham. B3 2ES Auditor Azots AudSt Servlce8, Fl* kbuge, New Road, Lancaster. L41 IEZ BankerJ CAF BanK 25 Kngs Hlll Averm￿, lQngs Hill, West Malling, Kent, ME19 4JQ James Alnsworth Almshouses Charity Roport of th• Trustse forth y￿r •nd•d 31 March 2023 The Trustee presents the annual report and the audited financial statements for the year ended 31 MaTch 2023, The Trustee has adopted the provlslons of Chariti85 SORP ￿ Edltkn (FRS 102) In Wepar1r￿ ts annual rep)rt and financial statements of tha chwity. Slructuro, G￿rnIn¢• and Management Arcon Housing As50clallon were apwjlnted as Trustee 1# June 2006. Th8Trusloe was P￿v￿1U8ty The Orde of St John Trustee Company. Slructurn and actlvltl95 The Charty, whiGh b reyl8lered vAth The Charity Commlsslon, 18 unincorF¥yated and has 88 Its C4)n8Oiut d8claralion of trust dabj 2 Marth 1968 {as 8￿nded1. In addNlon, the Charfty hokls furKls and investments with a vlew to the further developmant of Its Gharllable alms. Ory•nisatlon The Bogrd ofArcon Hou51ng *£60clalv)n Thets six tknes a year and carries out an Annual Revlew. Corporate Tru5te8. the trustse meets at loasl hvice a ye8rto dlscu8s performance, budgets and buslness F4ans 8nd approve the flnanclal statement8. Oblectlvv and Actlvltles The Chavltab18 Ob￿ts ofthe Charity are: to provide houslNJ accow￿0d8lknn 8TrJ as61star￿0 to help hou8e people are elderly or disobled and assoclated lacilitle6 and amenNle8 for such pecple or the rellef of the aged. dl88bled: gnd to further such general ¢haritaNe objects as the Trustee may dotemilne. Flnanclal r•vl The total Incomlng re80urce8 were £44.347 for the year to 311t Marc* 2023 12022: £37,375). prodwlng an operatlng surplus of £1S,95612022= £2,934). Losses on investments re8ulteil In a surplus of £13,598 for the 12- month ￿rfod to 3161 MaTch 2023 {21Y22: surplus of £9.051). Accumulated surp1￿9$ he]d In general funds were £528,181 (2022: £514,5831- Golng concem In the financlal year 2022123, the var In Ukraing has caused many suppty slde 8hort4es, speclltcalty for energy supp1188 which In tum ha5 ¢8used inflaknnsry in¢rea8es In a ￿de range of products and services. ￿￿en revwing the bL￿get fcrfe¢èsts the Trustee considered Ils IM￿1, both swifjc8lly snd on the UK economy, togetherwlth rfsks ar¢)und principle assumptions and regulatw change8. James Alnsworth Almshouses Charlty R•port of th• Tru8te• for th• ymr end•d 31 March 2023 {contlnu8dJ The bustness pkqn lo￿aSts slv)w th8l Ihe charity has $uffLient liquid funds Sn place that provtde adequate resources to lund all comrryttad capital èxpendibjre and Investment programmes togethgr wRh day-to-day Itles. The charity's actNitlès are expected lo contlnue U￿han0￿j for the foreseeable future and the un¢ertalntie8 consKl8red, InGludlng the pandemlc and the inllatlonary pre55ures described aboY8, are expecied to have terial long temi Impacton the charfty's finan¢la1￿abl1lty. On thi8 ba8iS theTruslee has a reasonab￿ exp8CtalpJn that the charity has adequate resour¢e8 to Continue in operalwal ex13tence for the foresaeable future. belng a P8rkKI of at ￿ast 12 nY)nlh8 after the date on whlch Ihe ffin8nci81 statements are syned. Therefm, il (y)ntinu8s to adopt the going corwn basis in Ihe flnancHI slater(¢nts. R￿erve1 po The Twstee has considered the need for an approwAte level of reseTves kn conJunctlon vlth the guidanco b$ued by Tho Charfly Comrrission. In determining a re8eNe POI￿y. the Tru8tee has Idenlffied cor8 obpthes to be m81. The8e are a5 follow8.. the establISh￿nI ofadequate frèe reserves (exduding fixed assèts} to ensure that the Charfty ha$ adequate IK4Llldity to meet any 5horl-term tlu¢tuatk*bs n c¢￿panCY levels or ex￿p￿onaL ￿)616 outsKle the scope ofthe budggt and the deveknpmenl of a strong b￿ar￿A sheet po6itwe Cash flow to SUFVOrt the fvndiNJ of the iryrovement of the ￿stIr￿a property. The level of reserves requlred 18 detemined using comprehenslve budgets and cash Ilow forecasts. Regu18r upd81es and monSlorfng of these d￿urrBnts 8re carrfed out to énsur8 that a surplus ts ach￿ved, and cash fh)w18 adequate for the needs of the Charity. The benchmark for the free reserves forthe Charlty belwean £400,OCXI and £S00.000. At th8 ye¥ end the Charity has totsl funds of £572,237 (2022: £658.6391 of whkh £571,987 (2022.. £558,389118 availabb at the discretion of the trustee and deem8d as free reserves. Rlsk manag•ment The T￿￿tee h46 identlfied tho ri8k5 to which thè Charlty is exrnBaJ and, for eaGh of these, an ass8ssmnt ha5 been made as to Ihgir Irrpacl, seveAty. and PTob8bllty. Inteffl￿ and external ￿ntrOlS have begn revIev￿d effectNgneBs In mibgallng these rlsks. Systems have been establlshgd to w￿nage the level of risk includlng the fo1th￿ng.. The revlew of major risk related in¢idents land steps taken to a¢*lt888 these) * eacth meel¥u of the Bo¥d arby the Group Audit and Rlsk Committee of the Trustee. The Intem81 conlrc4 sy8tem is monllorwj arKI supporied by external audit that bs able to provhje an Indep￿dent perSp￿1ve on the manag8menl of risk wllhkn the Charity. The managenxnt and control of rtsk Is an oryoing proGess In the Chariiy. Respons*Jllity for ensuring that there are appropriate risk m8nagement and aud6t 8trL￿tur8s in place, and for reviewing those slructrJres. Is delegated to the Group Audit and Commlttee of the Trustee. whlch is a shared commlltee wFth the Bolton al Home Group. James Ainsworth Almshouses Charity Raport of tho Trustse for th• y•arondod 31 IAArch 2023 (contlnue Fundlng Source •nd EXpendI￿r0 The prfncipal fvrKllng sourres are for provldlng hoLF81n9 accc*yYncrflaUon. Expenditure 1$ all related to ovkllng th15 ￿0￿M)datIOn. Futsr• dgvolopments A stock (J)rKlitlon 8urY8y hos been coryleted ￿1¢h will Infomifirture Tg]uirements for Improvemgnts to properti85 and programme$ are belng prepared ￿1rdIn￿ty. Audltor Fdlowlng a retenderfng of the contract of extem81 audlL new auditorn, Azets Auijit Sgrvkes Llmited have auditod the currentyears ￿￿unts. A rgsolutlon for the re4ppolntment of h28ts Audil Servkes Limited as a￿lItOrS of the A88cKiation 15 to b8 proposed at the Annual G8neral Meetlng in line With the ter￿ts of the cha￿tIeS Acl 2011. rcon Uglng Asso¢latlon Ltd Dats. 21 loq 12023 James Ainsworth Almshouses Charity TfU8ts0'8 respon8lbllltles Statsment forth& year ond•d 31 Pl4vch 2023 The Trustse Is resFonsi￿e for preparlrKJ th6 Annual rekxyi and Ihg *nanGlal Stat￿9nts in a(%ordance appliGabl8 law and regulations. Charlty law requlres the Trustee to prepare ffnqndal 81atem8nts exh financlal year In Accordan(8 with Unlted Kingdom Gener81ty A￿pted A￿oUnting PracUGe (United Kingdom A￿Un￿ng Standard8 and appllcable law). Under charlty law the Tru¥te8 must not approv8 the financial state￿￿nts unless they are 8ati8fK8d that they gNe 8 true and fair vbw of the stale ofaffairs of the charity and ofthe Incomlno reBourc8s 8nd appllcation of resources, Includlng the incomp and 8xpendliure, of the tharity th81 pedod. In pr8p8ring these finan¢lal statem8nts, th8 TTUStee Is Tffjulred to: select su6table accounting polIc￿S and thon aptAy them Th)r￿lsten￿y. make ILKlgements and accounting estimate¥ that are reasonable and prudent 8t8t8 Wffieth￿ aP￿Icable UK Accounung Standards have teen follthved, Subl￿tIO t￿Y materlal dyrtures dlsdose(l and explained in th& flnanciaS ststements; and prepare the finandal statements on the gdng ¢oncern basls unless ￿ is inappropriate to pregume Ihat the ch￿ty wlll continuè In t￿81n858. The Trustee18 resFoll81ble for keet4ng adequate accounting records that are 8ufftGlent to show and èxplain the charfty'8 Ir8n8aGttons and disclose wlth reasonable ac￿[aCY at any liw£ the Ilnanclal position of the tharity and enab￿ them to ensuTr th81 the finarrial statements Compiy￿lh tha Charldgs Ac12011. are also responsible for safegusrding the assets of the ¢harty and hen¢e for tthlng reasonable stgps for the pr8venlbn and detecbon of fraud and other lffegularllle& James Alnsworth Almshouses Charity INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF JAMES AINSWORTH ALMSHOUSES CHARrrY Oplnlon We have audlted the financlal statements of James Ainswcwlh Almhouse8 Gharlty (the 'Charlty) for the Ferlod ended 31 Mar¢h 2023 which ¢omprise the statement offinandal activ1t￿, the 8tatem8nt of financial posillon and notes to th8 financlal 8tatements, I￿ludIng significant a¢¢ounlng policbs. The financlal re￿r￿ng framgwrk th81 has been applled In thelr preparat*)n is appllc2ble law and Unlted lQngdom Acwunting Standards, I￿lUdIng Fln8nclal Reportlng Standard 102 The Fina[￿181 Reportlng Standard applicablg in the UK and Republtc of Ireland (Unlted Kkngdom Generalty A￿epted Accounting p￿tiCe). In our opinion the financlal statsments.. gfve a tru8 and falr v￿W of the slate ofthe Ch8TWs affalrs a8 at 31 March 2023 and of Ns surp￿8 Ihe perl¢xl then ended; have been proFerty prepared In accordance wllh Unlted Klngdom Generally Ac¢epled A(xounllng Practice", and have been prepared In accudance wilh the requlrements of Charities Act 2011. Ba81$ foroplnlon We conducted our al￿11 In accordance wFth Intamational Slandards on Audltkng {UKI (ISA8 IUK)) and 8ppllcablo law. Our responsibilities under tho$8 Standards are further described In the Auditof8 responslbl1lo￿ for the audlt of the financial ststsments SectiC￿ of our report. We are independentcf the Ch8rliy In acc¢xdance wlth the ethical ulrements that ere relevant to our audit of the fin8ncial $tatsments In tho UK, induding the FRC'S Ethlcal standard, and we have fvlfill&J our other ethicJ responsibilities in accordance with these wuirements. We be]￿e Ihal the aud6t evldenGe we have obtain￿1[5 suffk4ent and appropriate to provide a ba81s for our oplnlon. Conclu8lon8 rèla¢lng to golng conGfjm In auditlng the flnancrdl statements, w8 have concluded thai the Trustee'8 use of the golng concern basls of aGcounling In the preparatlon of the finan¢lal stslemnts Is ap￿o￿late. Based on the work we llave perf(￿ned, we have not vjentified any material unwtainti8s retating to events or condttion$ IhaL Indivhlually or o)Ilectfvely. may cast 6SgnSNcantdoubt on the Charity'8 ablllty to continue as a golrwJ concern for a pèrlod of at least twefve months from whon the financial ststam8nts a￿ author188d forlssue. Our reSP￿sIbIlI￿85 and the reSpOn￿bIll￿9 of the Trustee YAih regpect to golng c(￿￿ern are de8cribed In the levant secth)ns of Ihls rep Othor Inforniation Th8 other InfoTmaUon comptse8 the infomiallon knclLKled in the annual report e)ther than ihg financLql statements and our audttotrs reFQrt Ihereon. The Trustee is reS￿nsI￿e for the other information contslned wtthln the annual report. Our opinlon on the financial statements does not rxwgr the other Informatton and, except to the extent otherwtse explirydy stated in our report, we do not express arry form of assuran￿ conclu8lon thereon. Our responsibility is to re8(1 the other inf0M￿lI0n 8JKI, In dolng so, conslyerwhethw the other Infomiatlon is Mater￿ inwnsist8nt with the flnancS81 State￿Ents, or our kr￿￿dge obtained In the course of the audi( or oth6Th￿se 8ppears to be materlalby mlsststed. If we Identify such material Inconslslencigs or apparent malerf81 m1sstaterr￿ts, we are required to deiermlne whether thls gives T￿9 to A materlal mwtstement In th8 finandal 8￿ten￿nIS themselves. If, based on the work we have perlormed, we ccfficlLKle that thera 18 a matsrfal nwsststement of thls other Inf0m￿tI)n, we are regul￿1 lo report that fact. We have nothlNJ to report In thls regard. James Alnsworth Almshouses Charlty INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF JAMES AINSWORTH ALMSHOUSE8 CHARrrY (conllnuad) Mattors on whlch we are raqulrod to report by •xc•ptlon We have nothlng Io Teport In respect of the following matters In rdatlon to whlch the Charttks AGI 2011 requlre us to report to you If, In our cyinknn.. the Infomiatknn glven In the Trustee's Annual Rewrt or the flnand81 y88r for whlch thé finanoial Staternnts are prepared are not consistent the flnanclal ststements: or adequate a¢countlTVJ records hav8 not been kepl,. or eertaln d18doBur88 of dlrg¢tors' remunerallon by law are not mpd8' OT the ftnarKial statsments are not in agregment with the ￿lU￿￿'ng record8 and retums; or we have not r￿8fved am the SnfoTmabon and 9xpl8nations we Tequire for our audlL R•spon8lbllltles of Tiu8teo AS explained more fully in the Trustse's responslbiliiies $tatemnt Set c￿1 on pago 4, the TnBtee 19 rosponsible for the preparalon of th8 finarKlal st21ements and for belng sallsfled that they gwe a true falr vlew, and for such internal control as the boaTd membeTs determina Is ￿￿esSary to enable the preparatlon of fIna￿la1 stat￿nentS that are fre8 from material mlsst*&menl. Wh&￿er due lo fraud or evror. In preparing the financral 8tatanents. the Trustee h responsSbl8 for assessing the Ch*ity'8 ability to continue as a g￿ng concern, dISc￿Ing, 88 appliGable, matters ￿lated togoing concem and uslr8 the golng ¢oncem basls of accounkng unloss the Truste8 eiU)er Intend to I￿UKlate the Charfty or to cease operatms, or have no reAlisfK altem8tbve but to do Audltovs r•sponslbllltl8s for the audll of tho Ilnanclal statomonts Our obiectN&S are lo oblaln reasonable assuran￿ about whether the finandal statements a5 a whole are free fmm material misslatsment, whether due to fraud or error, and to L8sue an audltorf$ report that includ8s our oplnksn. Reagonable assurance is a high level of assurance but Is not a gu8ranlee that an audit Conducted In 8¢cordanrA wllh ISAS {UKI will a￿ayS detect a materfal mlsstatemgnt vthen it exists. Mi$statements can arf8e from fraud or error and a￿ considered m8tdlal if. Indfvidualfy OT in the aggregate, they could re880nably expe¢ted lo influence the economic deelsksn8 of us8r8 tak8n on the basi5 of Ihese financl81 stat￿ents. A further descrlptlon of responsibllltles Is availabl8 on the FlnancLg1 Repo￿n9 Coun¢ifs website at Mtys.'IAvw.frc.cYg.ukJ8uditor¥resFonsibilities. This descrlpknn forn￿ part ol OUT audil016 report. James Ainsworth Almshouses Charity INDEPENDEKT AUDrroR¥S REPORT TO THE TRUSTEE OF JAMES AINSVIORTH ALWISHOUSE8 CHARrrY (contknufyd) Extent to whkh the audll was consldgred cap•blo of dotectlng Irrngularltle3, In¢ludln9 fraud lffegulariti95, incI￿11ng fraud, are Instanoes of non40mplianc£ v￿th laws and regulauons. We d&s￿n procedurns in Ilnèwlth our respon8ib1111188, ouulned above atx1 on th8 Financial Reportlng Coundl's website, lo détect materlal misstatements In re6Wt of IrregularTile8, including fraud. We oblain and update our understandlng of the entity, its &tivities. Its ¢ontrd envlronff￿nl, and Ilkaty future dèvdopmenls, Includlng in rèlatlon to the 1g3al and regulat(wy framvwork appllcable and how the enilty is comptylng with that ￿ftW￿rk. Based on thls understandlng. we Identlfy and ass688 the r4$ks of material mlssl*ment of the financial slatsments, vthether due to fraud or error, de5h3n 8nd perform audll procedures reswnsfve to those rtsks, and ot￿ain audlt ovthnce that18 suffident and approprfate to provlde a basis for 0￿r opinlon. Thls IncludeB c(￿87der01￿)n of the risk of 8Gts by the enuty that were contrary to W*able W8 regulations, lryJudlNJ fraud. In response to the rlskof irwul¥itl•s and ntsn-c0mplla￿ewl1h laws and regulatlons, Indudlng fr8ud. we deslon procedur¢$ which Induded.. Enquiry of management and those charged with goveman¢e around athal Bnd pOle￿bal Iltigation and claims a6 well as actual, su8pectgJ and alleged tra[￿. Revlewirkg mlnule5 of meetings of those ch￿ged with govem8n¢e', A5seg8ing the extent of compliance with Ihe laws and regulation8 ¢onsldered to have a dlrect material effect on the financial stalemgnts or the operation8 of the chaT￿Y through enqulry and Insp¢￿n. Ravtewlrbg finanGkg1 statem8nt dk8d05ures and testlng to 8upporhng do¢umentstion to a5se8S ¢ompNance wllh appllcabb18W8 and wulatlons: PerfoTmlng audit work over thè risk of management bia$ and override of controls. 1rdudW￿ le8Ung of )urnal entries and other adju8tmenl8 for approprlateness, evaluating the buslne8s rallonale of slgnifLant transactions oulslde the nomwl wirse of business and revlewlng a¢￿Untirrfj 86b'mates for indicators of potential blas. Bec8usè of the knherent Ilmltat￿$ of an audit thgrn is a rlsk that ￿ wll Th)1 detect all irregularities, Ineludlng those leading to a mateflal mlsststernnl in the financlal 8tstemenls or non-compllancg With regulatlon. Thls rlsk Increases Ihe more that cornpllanc9 wllh a law or r8gul8llon Is removed from the events and Iransadon8 refi8¢ted In the fina￿l81S￿lenEnts, as we wlll be less Ilkety lo become awara of in5t8nce$ of non-eKJmpllanc0. Th8 rfsk of not detectlng a matgTial misstatement resullng from fraud is hYJh8r than for one re8ultlng frcwn error. as fraud may Invdve ¢ollusion. forgery, intentional omlsslons. misrepTgsentations. or the overrlde of Internal control. Us• ol our roport This Teport18 mode Solety to th8 Charlty's trustee, as a body, In accordance with the Charthes Act 2011. Our audll work has been undertaken sc that we mighl State to the Charity's Iruslee those matt&rs we are requlred to stsle lo them in an audilo¢s report and for no other purpose. To the fulknt extent permltted by law, we do noi accept or assume responslblllty lo anyone other than the Chafity and the ChBTW8 trustse, as a to¢Jy. for our audit worK for this report, cf for the opinions ￿ have forn%d. tekj ¢lth &AL) (otj Susanna Ca88ey {S8nlor Statutory Audltor) For and on ￿half of Axets Audit S•Thl¢es Chartered Accountsnts statutory Auditor 21 sept￿nber 2023 Fleet House New Road Lancaster LA11EZ James Ainsworth Almshouses Charity Sl•tonwnt of flnonclal actlvltl88 for thg year end•d 31 March 2023 Tot•1 Total 2023 2022 Incomo from." Charllable aotivlties Investments 43, 1,282 43,085 1.282 38,352 1,023 44.437 44.437 37,375 Expen￿t￿le on.. Ch8ritabb actlvlUe8 28.391 28,391 34,441 28,391 28.391 34,441 Income beforo galn$ and transf8rn 15,956 16,956 ILossyGalns on Invthents (2.3581 {2,358} 6,117 Net ￿￿emo￿t• In funds 13,598 13,598 9,051 Reconclllatlon In fund8 Balance brought fC￿Vard al 1 April 2022 Movement in funds 558,639 13.598 558,639 13,598 rA9,588 9,051 Balance G8Ni•d forward at 31 March 2023 F12,237 572,237 668,639 The notss on pages 10 to 18 form part of Ih¢$e financlal 8laterT*nts. James Ainsworth Almshouses Charity 8tatomgnt of flnancljl posltlon at 31 March 2023 2023 2023 2022 21122 Flx•d assot8 Tangitjle assets Invesknents 376,301 69,270 379,S62 71,633 446.576 461,196 Cumt QSg¢ts Debtors Cash at bank io 2,168 133.616 1,840 118.649 136,783 120,389 Cr•ditorn: amtsunts faillng du• wlthln one year 11 19,1221 112P45) Ngt cuffenl I￿9￿ 126,661 107,444 N•t assot• 672337 65B,639 Fund8 Permanenl endowed fund Unrnstrtcted Deslgnatsd ￿serveS General funds 250 250 43,806 528,181 43,8 514,683 571,987 668,389 Totsl funds 12 571237 668,639 The Ilnancia statements were approved by the Board of Trustee and authodsed for issue on 21 September 21Y23 Arcon Houslng AsBochtion Ltd Tru8tg0 Charlty number 224838 The not8s on pages 10 to 18 form part of these Ilnancial $tatements James Alnsworth Almshouses Charity Not•s formlng part ofth• flnanclal 8tatem8nla lor th• yo•r •nd•d 31 March 2023 A¢¢tsuntlng polk108 Bgsls of prepar8tlon olaccounts The financial 8tatemenls have been prepared in accoTdance wllh the Charities SORP Edllion IFRS 1021- AccA)undng and Reportlng by Charllie5: Stat&ment ofRecommended prac1r￿ applIca￿e tocharllles prepadry thelr accounts In accordance ￿th the Charflles SORP (FRS 10218nd the Charitkns Act 2011. All armunts aTe presented In p)unds sterllng and are round￿ lo the nearest £1. The Trustee wn81det8 that the Charlty m80ts the deflnilbn of a Publlc Benefit Ent6ty under FRS102. The foll(y+ArvJ wincipal a¢￿untIng wlicies hove been app￿¢￿.. Income represents rental Incc4ne r￿91Vable and other Inco￿. Incomè is reGogn18ed vh)ere there entlllen*nt, oertalnly ot receipt and the awKJunt ¢an b8 metsured wlth sufficlenl reliablllty. Rental Inco￿ Is recognhed when the propety18 avallable for16( net of volds on a receivable ba5iS. Inve8tmenl income Is recognlsed on a recefvable basis. Interest on funds held on ¢kpD8It Is I￿luded when and the amnt C8n be m8asured rdlably by the Charty: thi318 norn￿1￿ upjn notification of the Inlergst pald or payable by the llistitullon with whom Ihe fijnds ore dewsltgd. Expenditure Expendlture on Gharitsble aclfvllie5 relates to all costs of provlding houslng accomnK•dalk)n, Expendlture on charltoble acuvhies is incurred on directty undertaklng the 8ctN1Ues whlGh fvrther the Charlty'6 objectives. as well 85 any associated 5UPW)rt costs. Support Costs of th8 Charlty reprewt the audil fee8, admlnlslrat ¢4)sts and thance costs. T8wlbl8 fixed as88ts Tangible flxad 85se15 a￿ depreciatsd over Ihelr useful lives taklng Into account r95idual values, where approprlale. The actual Ilves ofthe assets and rèsldual values are assessed annually and may vary dep8ndlng on a number of factors. In re4ssessing asset lives, fsclors su¢h as technologlcal Innovatlon, woduct Ilfe cycles and malntenance programrnes are taken into a¢tounL Resldual value esses8ments conslder issues SUGh as future morket conditions, the remanlng life of the 955et and projected dlsposal valueB. 10 James Ainsworth Almshouses Charity Notès fornilng part of lh• flngnclal statsments for thg year •nd¢d 31 March 2023 (etxthuod) Accountlng pollcles fcontinu8d) Housing andDeprnth&llon H￿SIng propert￿5 fr*rent ore $t8led atcoslle6s accumulated depreciatknn. Freehold land is rn)t depreclaknl. All propertl8s are revletted for impalrment annually. there a hous1￿ pro￿rtY comprises two or nv)re major o)M￿ent6 wlth substantially dlllerent useful eGoTh)mic Ilvos, each component Is accounted for Separat￿ and depreck*d over tts Indlvidual usefvl •r￿*￿IC Ilte. Expendlture relatlng to the 8thequent replxomnt or renewal of GomFonents Is ¢8pitallw as Incurrthj. Componont UEL New build hcuJlng structure External wort8 125 years 40 years 60 years 40 years 30 years 30 years 1S y8ars 30 years 20 years IAfjn(lowslDoor8 Elecltlcal Bglhrooms BoileT$ Heating systems {exdudlry boilers) Kltchens Impalrm8nl Reviews fc¢ impairment of hou5kng pr¢¥*ertles are canled out vthen a trlgger ha8 t￿cUrred and any Impalrmenl kxs In a cash generatirwJ unit is ￿ognISed by a charge to Ihe Slalement of Comprehensive Incomg. Impalmienl Is i￿gnISed where the ¢arrylng value of a cash generatlng unlt exceeds the hlgher of 41s net reallsable value or 118 value In use. A ¢a8h generatlTrJ Lbnlt Lq nOr￿llY a group L)f Wopert￿ at scheme level vh￿e cash Income can be separately idenllfied. Followlro a IrbJgÈrfor ImpalrThnl, the Charity perform Irrylrment tests on falr valu8 less costs to sel or 8 value In use cakulallon. Tre fair valu818ss costs to seu cakulation L8 based on available dAla from 88bs tranS￿OnS in an arm's length Iransactlon ￿ slmlLgr cash 9enerallThJ unlts Ipropertiesl or observable market prlces less incremental ¢osts for disposlng ol the properties. The value in use cakulation 1$ based on eilh8r a depreciated repLqcement Gost or a dlscounted Gash model. The depreoiated repl￿erne￿t cost 18 based on 8vallable dala of the cost of conslruoung or aquiring ￿p*ement properties to provKle the same level of servlce potenllal to the Chadty as the exrsting propety. The cash fl(AVS are derlved from th8 buslness plan the next 30 years and do not include re$trucluring Sctfvll￿ that the Charlty i8 not yet permtited lo or signlficant future inVes￿nts that wlll enhance the assefs perfoTmanGe of the Cash genemting unll belng tested. The recowabl¢ amount is most senS￿￿e to the d15count rate u89d forthe di8¢ounted cash nTr)del as ¥￿11 es the expected luture cash flow8 at)d the gro￿ rale used fDr extrapglath)n purpose8. Inv88tmgnts Fixed asset inv83tments are a form offln8nclal Instnjment and are Inlllally recognised at theiT tranS￿tion cost 5ub8equenty measured at falr value at the Balarbce Sheet dale, unths th& value canntst te m8aswed reliabty In whi(* case11 18 measured at cost impairrr*nt. Investment galns and losses. whether realP68d or un￿all38d. are Gomblnad and presented as 'GgJnsl(Lossesl on Investments, In the Stalem8nt of Flnancial Athllles. James Ainsworth Almshousas Charlty Not•$ fomilnB of Ihg fln•nclal stalpm•nt8 for th• year ended 31 March 2023 (continu•d) Accounllng pollcl•s (continued) Financlal Instmments The Charlty onty ha8finarKlal assets and finand81 liabllhles of a ￿nd that quallfy as bask flnanGi81 InStrun￿ftts. Basi¢ fInanG￿ Instruments are initlalty r￿OgnIsed at Iransaotton value and subsequently measured at thelr 8etUoment value wllh the eX￿p￿C￿ of bank loans whlch are subsequen￿Y m8asured at an￿r￿Se￿ cost Using the effethe interest meth(xl. Fund 8ccounHJ General fvnds are unrestriGbJ fun(18 whlch are ayalkqble for use at the dlscretion of the Trustee In furtheranGe of the general obieotr¥es of the Charfty and whlch havo not been de51gn8ted for other puvposes. The Ch8TIty deslwAtes fuThJs In Telation to anuclpated malor and ¢yclkal r8palTS. Transfers to Designated Funds are based on Management estlmales of future costs. Actual expenditure15 expensed to the Inc(The and Expenditure Account as Incurr&J and a COTrespondlng relea8e of funds is then made from th8 De81gnated Funds. The h￿n0e Is reviewed perk)dlGalty to ensure tts adwuacy. Judgem•nts and key sources of 05timatlon ond unGOrtalnty The PTeparation of the finandal statements requires management to make judgements, 8slmate8 and a55umptions that affectthe amounts reported forassets and liabilltles as al the Ststement of Financial P0s￿On date and the amJJnts reported for income and expgnses during Ihe year. However. the natUTe of estifrntlon rrtans that acttjal outc1Th6 could differfrom those 88￿mates. The following IutJgemEnts (apart from those invofving eBtimat8$1 have had thè Slgnthcanl effect on amunts rwnised in the finandal 8tatWn8nl8: G￿n9 concem 8ssessmgnt In the financlal year 2022123. the war ln Ukraine has caused many supply side shortages, s￿cfflc￿1IY for ènergy suppues whl¢h In tUTn has ¢auwJ Inflationary Incre8ses In a wide renge of products and servlces. W)en revlwng th8 budget arKI forecasts the TTUStee consldered ils impact, both specifically and on Ihe UK ormomy. together wlth tsks around princiKAe economlc assumpkns and wulatory chang6s. The busine8s pion forecasts shcpw that the charfty has 5ufklent liqubj funds and debt Tradlitth In place that provlde adequate ffjsources to fund all committwj capital exFendilure and investment progr8mmes logeth8r wlth day-ttrday aotLvhle8. The charlty'8 8ctfvii￿s sre expgcted to conthiue U￿hanged for the forgseeable futuro and the unoertalntks consldered, Indudlng the pandemlc and the Inflatlonary pressur8s described abovg. are not expected to have a materlal long term Impact on ts charity's finanolal vkgt411ty. On thls ba$ls the Trustee ha5 a reasonable expeGtstion that the charity has adequaie resources to conllnue in operauonal e￿stenCe for the foreseeabte future, being a perlod of al least 12 months after the date on whlch the financlal statements are signed. Therefore. It continues 10 odopl the golr@ concem basls In the tinanclal Statements. 12 James Ainsworth Almshouseè Charlty Not98 fomilng part ofthe lknanclAI $tat¢ments for thè yè•r ended 31 March 2023 (condnued) Income from charhable actfvitl88 Unr88trict•d Unyestrlcted 2022 Housing accommodatton and asslslance 43,lJ6S 36,352 Inve•tm?nt Income Unrestrlctod 20rJ Unr•strlcted 2022 Interest dlvidend8 on investrnent deposlt 8￿Ints 1382 1,023 13 James Ainsworth Almshouses Charity Notss fomilDg part of the flnanclal statomonts for the year ended 31 March 2023 (contlnuedj Expendlture on charltable actlvRI•s 2023 Dlr•ot 2023 Support 2023 Tol•l HoLBlng accommcdatton assistsnce 17.302 11,089 28,391 2022 Dlwct 2022 Support 2022 Total Hou8ing eLeC￿ny*1811on and 88slstance 23,699 10,742 34N41 All expendmure on charftabl8 acllvlkne$ was unrestrkted in the Current and prforyear. Direct costs on charftable actfvltle8'. 2023 2022 Repairs 9￿j nHintenar PropeTty costs Heat and Ilght Depreciation Insuranc other dlrect 4,220 4,694 1,954 5,422 377 635 7.014 1288 1,738 9,880 369 17.302 Total support costs.. Govwnance tO8ts Iwhlch repre80DI the oYPPOrt ¢08ts) Auditfees Admln and finance o)5ts other support 1.828 73 9,188 1,814 97 8,832 11,089 10,743 14 James Alnsworth Almshouses Charity NotsB fomilng part of the flnanclAI statemènts forthe year endfjd 31 March 2023 {¢ondnu Auditors. r•mun•ratlon 2023 2022 In relation to audll of Ilnarthl slatements AcQ￿ntancY services Ourfng the year the audll fee wa8 bome by JaI￿S Answcth Almshous95. Durfr￿ the prior year the audit fee of £3,150 (20221 was bome by Arcon Houslng A8SOCk91ion and £1,8W {20221 was recharged to the Gharlty. Trustèè r•muner•tlon and •xpons•8 Durlng the year, the Tru8ts&, Ar¢on Houslng AssocL911on was pald a manag8nwnt fee ot£9,188 (2022.. 8,827). No other remuneration or wonses were paid to the Truste8 durlng the current or prlor ye¥. Tanglbl• Ilxed assets Prtsp•rty Cost At 1 April 2(Y22 Addlti)n8 Dlsposals 506,784 2,161 {2,7231 At 31 March 2023 506,222 Doprooiation At 1 April 2022 Charge for the year Dlsposal8 127.222 6.422 (2,7231 At 31 March 2023 129,921 Netbook valuo At 31 March 2023 376A01 At 31 March 2022 379.062 15 James Alnsworth Almshouses Charlty Nole8 fornilry part ol the flnanclal statsm8nt8 for the year oDd•d 31 mA￿h 2023 (contlnued) InvoStm•nts 2023 2022 Market value at 1 Aprll Additions DL8POS8b GalMI(Los8) on revaluath)n 71,633 66￿16 12,3681 6,117 Kqarketvalue at 31 March 69375 71,633 Historfc cost 28h33 Investments are ￿presented by.. Bond$ Equltles 9,213 11,046 60W7 69,275 71,633 10 D•btors 2023 2022 Amounts due frc¥n related partiès Rent arrear8 Other debtors 1168 1,186 1168 11 CrndltorB: amounts falllng du• wlthln one yoar 2023 2022 Amounts due to related partle8 Trade creditors Tenants in credit Accrua46 4,758 6,171 2,236 Z,128 2,238 0,636 9,122 12,946 16 James Ainsworth Almshouses Charity Not•$ fomiing part of the Ilnanclal statsm•nts fortho y•ar 8nd•d 31 Ilarch 2023 (conrfnuod) 12 Analys1• of fund¥ At 1 Aprll 2022 Galn8 and transfers At 31 March Income Expendlturn Unrn8trfct•d fvnd6 General De$lgnated 514.583 44,347 128,3911 <2,3581 528,181 43,808 558.389 {28,391) 571.987 Endow•d fund• Pernwnenl erKJ(Ywed fund8 250 Total fundB 668,639 44A47 128A91) 12,358 572,rJ7 At q Aprll 2021 Galns and tr*n8hrs 31 March 2022 Incomfr EXpendI￿rg Unr•strkt•d funds G8neral Desvjnated 505.532 43,806 37.375 {34,441) .117 514,583 43,8( 549,338 37A75 134441) 6,117 55B,389 Endow￿ fund8 Pgrrronenl endowed lund8 250 2KI Total fund8 549.688 37,376 134A41) 558,639 General fvnds are unrestrfcted funds whlch are availablg for use atthe dlscretlon ofthe Trustee In furthewce of the general obJ￿tIveS of the Charlty and whlch have not b88n designated for other purposes. The Chwlty dasignales funds In relation to anllclpated major and cyctlcal repalrs. Transfers to Deslgnated Fund3 are based on M8nagemenl esuwotes of future costs. AcbJ81 expenditure is expensed lo the Income and ExpendIlU￿ Account as Sncurred and a corresponding rekase of funds is then made from the Designated Funds. The balarth Is reviewed periOdKa1￿ to ensure its alequw. End(Med funds represent Ihe hlstorlcal cost of the arrK)unts held In investments. 17 James Alnsworth Almshouses Charlty N¢)tos fomilwJ part of the flnanclal Btat6ment8 for the year ond8d 31 ktsr¢h 2023 (¢ontlnuod) 13 Nét assets 2023 Genoral Doslgnatad Endowod Total T8nglble fixed a55ets Investments Debtors Cash at bonk CredltOTS'. amounts due kn one 376.301 25,219 2,168 133,815 376,301 89,276 2,168 133,815 43,81 250 (9,122) (9,122} 528.181 43,806 572,237 2022 Tangible fixgd assets Investments DebtQf5 Cash at bank Creditors.. amounts falllng due in one year 379,662 27,577 1.840 118.649 379,562 71,633 1.840 118,549 43.8C 250 <12,9451 (12,9451 5145B3 43,806 250 ,639 14 Flnancial instruments 2023 2022 Financlgl assets m&q3ured at faw v81ue through wofit and1086 69376 71,633 Financlal assets me8sur&l at falr v8lue through proffi 8nd1088 compri8o ¢wrrent asset kond$ and w4uity Invesbnents staled at market value. 16 Rglat•d party transa¢tlon8 Amounts duo at start of year Amounts due at end of y•Ar Rec•lpts Payments 2023 Arcon Hou$lng 5,171 26,593 (27.006} 4758 2022 Ar¢on Housing 10,092 19,814 P4.734} 6,171 Arcon Hou8lng Assc¢l8llon Is the SO￿ trustee of the Charity. During the prioryear Arcon Housing A3sockqtlon also donated prof8651onal Sgrvkes In reLqtion to th8 sudit and act4)unts fees of £I.8￿12022). 18 Fleet House New Road Lancaster LA1 1EZ T: +44 (0) 1524 541 200 F: +44 (0) 1524 541 201 azets.co.uk ## **Private & Confidential** Our ref: SC/AHM/C-10011797 The Board Members Bolton At Home Limited 98 Waters Meeting Road Bolton BL1 8SW 31 August 2023 Dear Sirs ## **Bolton at Home Limited and its subsidiaries** ## **Audit findings for the year ended 31 March 2023** This Audit Findings Letter highlights the significant findings arising from the audit, for the benefit of those charged with governance. We appreciate that you may be aware of some of the matters contained in this report, however as required by International Standard on Auditing (UK) 260 we are required to communicate such matters to you formally. As auditors we are responsible for performing the audit, in accordance with International Standards on Auditing (UK) (ISAs (UK)), which is directed towards forming and expressing an opinion on the financial statements that have been prepared on behalf of management with the oversight of those charged with governance. The audit of the company’s financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. This letter has been provided on the basis that it is for the information of the Board and management of Bolton at Home Ltd and its subsidiaries only and that it will not be distributed to others, quoted or referred to, in whole or in part, without our prior written consent. ## **Audit status and audit opinion** Our audit work is substantially complete and there are currently no matters which would require modification of our audit report, subject to the outstanding matters detailed below. - Letter of supports for going concern status - Receipt of signed management letters of representation - Receipt of signed financial statements We do not propose any modifications to our audit opinions which are unqualified. ## **Significant findings** ## **Findings related to significant risks** Significant risks are defined by professional standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement. |**Risk **|**Audit approach and conclusions**| |---|---| |**Management override of controls**|| |Management is in a unique position to perpetrate fraud|Our audit testing included a review of and detailed| |because of management's ability to manipulate|journals testing as well as a review of accounting| |accounting records and prepare fraudulent financial|estimates used and the rationale behind them.| |statements by overriding controls that otherwise appear
to be operating effectively.|
We did not identify evidence of management override of
controls.| |Although the level of risk of management override of|| |controls will vary from entity to entity, the risk is|| |nevertheless present in all entities. Due to the|| |unpredictable way in which such override could occur, it|| |is a risk of material misstatement due to fraud and thus|| |a significant risk.|| ## **Risk of material misstatement: High** ## **Going Concern** In line with the approach required by ISA 570, going For each entity we reviewed and assessed post year concern has been identified as a significant risk. end forecasts and performance to analyse the ability of the entities to be a going concern for the next 12 **Risk of material misstatement: High** months. We also factored in available funding and each entities funding needs for the next 12 months. |On the basis Bolton at Home are willing to provide a| |---| |letter of support to:| |•
Maxmedia Communications Ltd,| |•
R-Haus Living Ltd, and| |•
Stonecross Homes Ltd,| |then all entities would appear to be a going concern.| ## **Other identified risks** |**Risk **|**Audit approach **| |---|---| |**Fraud in revenue recognition**|| |Material misstatement due to fraudulent financial|We have performed detailed substantive audit testing| |reporting relating to revenue recognition is a presumed|on income streams during and around the year end.| |risk in ISA 240 (The Auditor's Responsibilities Relating|We haven’t noted any errors from our testing to report.| |to Fraud in an Audit of Financial Statements).|| |**Inherent risk of material misstatement:**|Please see Appendix III for an observed internal control
deficiency.| |•
**Accuracy:High**|| |•
**Completeness:High**|| |•
**Cut off:High**|| 2 ## **Provisions for disrepairs and repair and improvements** **improvements** We obtained and reviewed the basis of the calculations The provision is a material estimate in the financial and corroborated back to appropriate supporting statements therefore at risk of material misstatement. evidence. We did not note any management bias in the **Inherent risk of material misstatement:** assumptions used to estimate the provision required. - **Completeness: High** Please see Bolton at Home’s Letter of Representation where we have documented a point on the provisions. ## **Valuation of fixed assets** The value of investment properties should be reviewed We have reviewed the external valuation reports and annually. compared these to the carrying values of fixed assets, There are properties held for sale which could be held investment properties and properties held for sale. at an overstated value in the financial statements. We also considered impairment indicators and reviewed the external valuer’s experience and independence **Inherent risk of material misstatement:** from the Bolton at Home Group. • **Valuation: High** We have not noted anything to report based on our work. ## **Defined benefit pension scheme** There is a risk that the liability and disclosures in We have reviewed the actuarial valuation report respect of the defined benefit pension scheme with including the assumptions which underpin the Greater Manchester Pension Fund may be materially calculation. We have also reviewed the actuary’s misstated. experience and independence from the Bolton at Home Group. The financials and disclosures are consistent with the valuation report that has been provided. Please see Opening Balances for comments on the defined benefit pension scheme opening balance adjustment. 3 ## **Opening balances** As Azets Audit Services was not the auditor in the previous financial year, there is a risk that the 2023 audit report would need to be modified if we did not obtain sufficient appropriate evidence to support the opening balances, and therefore the movement in the year ended 31 March 2023, are free from material misstatement. We have reviewed the prior year auditor’s working papers and audit reports. We have undertaken testing on the Balance Sheet where appropriate for opening items. Before the audit fieldwork commenced, management identified and highlighted a variance on the defined benefit pension scheme between the report and the financial statements. A second version of the actuarial valuation report was issued in July 2022 however the amendments did not get updated in the financial statements before signing in September 2022. Management discussed this with us and we agreed that given the magnitude of the financial impact, a prior period adjustment was necessary. The adjustment was favourable, to the amount of £2.851m. At both Group and Association level, the: • statement of comprehensive income, • statement of changes in reserves, • balance sheet, and • supporting notes have all been adjusted to reflect this prior period adjustment. There were no changes to our audit plan previously communicated to you. ## **Going concern** We concur with management’s assessment that it is appropriate to continue to adopt the going concern basis and there are no material uncertainties relating to going concern which should be disclosed in the financial statements. Please see the going concern section, under Significant Findings, for our comments on the necessary letters of support which are needed to support this conclusion. ## **Accounting policies, estimates and disclosures** The accounting policies used in preparing the financial statements are unchanged from the previous year. Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the company. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the company. ## **Other communication requirements** ## **Fraud or suspected fraud** We have not been made aware of any other incidents in the period and no other issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. In the event that the directors wish to obtain enhanced assurance with regard to the effectiveness of internal control in preventing and detecting fraud we should be happy to provide additional services. 4 ## **Non-compliance with laws and regulations** As part of our standard audit testing, we have reviewed the laws and regulations impacting the business. There are no indications from this work of any significant incidences of non-compliance or material breaches of laws and regulations stopping the business from continuing as a going concern or that would necessitate a provision or contingent liability. There are also many other laws and regulations relating to health and safety as well as human resources generally and industry specific requirements. We are not aware of any significant incidences of noncompliance. ## **Written representations** We enclose the draft letters of representation which we will request the Board to sign at the same time as the financial statements are approved. ## **Related parties** We are not aware of any related party transactions which have not been disclosed. ## **Confirmations from third parties** All requested confirmations have been received for which we undertook alternative audit procedures. ## **Misstatements** We are required to inform you of any significant misstatements within the financial statements presented for audit that have been discovered during the course of our audit. Details of items corrected following discussions with management are set out in Appendix I. In addition, a number of non-trivial uncorrected misstatements were discovered during the course of our audit and a summary of these can be found within Appendix II to this letter. ## **Internal controls** The purpose of an audit is to express an opinion on the financial statements. As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. However, this work was not for the purpose of expressing an opinion on the effectiveness of internal controls. We are required to report to you in writing, significant deficiencies in internal controls that we have identified during the audit. These matters are limited to those which we have concluded are of sufficient importance to merit being reported to you. The scope of our work is not designed to be an extensive review of all internal controls. If we had performed more extensive procedures, we might have identified more deficiencies than those reported in Appendix III below. ## **Independence** In accordance with our profession’s ethical guidance and further to our audit letter to you dated 22 February 2023 confirming audit planning arrangements there are no further matters to bring to your attention in relation to our integrity, objectivity and independence. We confirm that Azets Audit Services and the engagement team complied with the FRC’s Ethical Standards. We confirm that all threats to our independence have been properly addressed through appropriate safeguards and that we are independent and able to express an objective opinion on the financial statements. The contents of this report relate only to those matters which came to our attention during the conduct of our normal audit procedures which are designed primarily for the purpose of expressing our opinion on the financial statements. We do not accept any responsibility for any loss occasioned to any third party acting 5 or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. We would like to take this opportunity to record our appreciation for the kind assistance provided by your team during our audit. If we can be of any further assistance, please contact Susanna Cassey and Adam Hilton-Mason. Yours faithfully, ## **Azets Audit Services** 6 ## **Appendix I Corrected misstatements** ## **Bolton at Home Ltd** |**No**|**Detail**|**Profit and loss account**|**Profit and loss account**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| |||**Dr**|
**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Correct presentation of deferred, other and recycled capital grants|||1,672,417|(1,672,417)|-| |2|Reclassify a portion of the bad debt provision to other debtors|||991,491|(991,491)|-| ||rather than rent debtors|||||| ## **Bolton at Home Ltd - prior period error (FY 2022)** |**No**|**Detail**|**Profit and loss account**|**Profit and loss account**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |Total comprehensive incomeper FY22 signed accounts||||||**66,679,000**| |1|Correction for the defined benefit pension valuation||(2,851,000)||2,851,000|2,851,000| |Restated total comprehensive income for FY22||||||**69,530,000**| |**Starts With You**||||||| |**No**|
**Detail**|**Profit and loss**||**Balance Sheet**||**Profit effect**| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Reclassifybalance togroupcreditors|||4,000|4,000|-| 7 ## **Maxmedia Communications** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|Recognise the corporation and deferred tax chargesper the computation||(9,955)|10,728|(773)|9,955| There were no adjustments made as a result of the audit in the following entities: - Arcon Housing Association - R-Haus Living - Stonecross Homes - Dixon Almshouse - James Ainsworth - Fairfield Moravian 8 ## **Appendix II Unadjusted misstatements** ## **Stonecross Homes Ltd** |**No**|
**Detail**|**Profit and loss**|**Profit and loss**|**Balance Sheet**|**Balance Sheet**|**Profit effect**| |---|---|---|---|---|---|---| ||||**account**|||| |||**Dr**|**Cr**|**Dr**|**Cr**|| |||**£**|**£**|**£**|**£**|**£**| |1|VAT reclassification between current assets and liabilities|||5,783|5,783|-| |Net|effect to auditedprofit/(loss)|||||**-**| There were no unadjusted items identified as a result of the audit in the following entities: - Bolton at Home - Arcon Housing Association - Maxmedia Communications - R-Haus Living - Starts With You - Dixon Almshouse - James Ainsworth - Fairfield Moravian We have discussed the uncorrected misstatements with management and have confirmed that individually and in aggregate the effect is not material. 9 ## **Appendix III** ## **Internal controls** Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we have reported these to you below. Key: Significant deficiency in internal control, Other deficiency in internal control, Other observations from the audit |Area|Observation|Implication|Recommendation|Managementresponse| |---|---|---|---|---| |**No significant**||||| |**deficiencies noted**||||| |**Tenancy**|As part of our revenue testing|There could be disputes further|Given the volume of tenancy|Agreed and an internal audit is| |**Agreements**|on Bolton at Home, there were|down the line with no tenancy|agreements, we recommend|planned to test sign up| ||3 tenancy agreements out of 54|
agreement to support any|that random spot checks are|procedures and document| ||which could not be located.|claim/action the business may|performed on existing tenants|checks and storage.| ||From discussions with
management, there is a risk
that these were lost as part of|need to take.|to ensure appropriate and
necessary documentation is
held in place.|| ||the electronic transfer.|||| |**Land Registry**|As part of our testing of|Legal ownership on the title|Checks are undertaken|Agreed.| ||properties in R-Haus Living, we|deeds were not transferred.|internally on new properties|| ||identified that the Swinton Vale||acquired going forward to|| ||properties land registry’s were||ensure that all documentation|| ||never transferred from the||have been appropriately|| ||previous owners into R-Haus||updated.|| ||Living name.|||| ||From discussions with|||| ||management, it was identified|||| ||that the solicitor had failed to do|||| ||the necessary transfer.|||| **Employee Numbers** We observed that the limited company entities are calculating and presenting the employee numbers disclosure on a full time equivalent basis rather than an average basis. Employee numbers is one of We recommend that the limited Agreed. All the commercial the key metrics for determining company entities prepare both subsidiaries will be asked to a company size, so there is a average and full time equivalent prepare employee numbers on risk that the financial calculations for employee both bases. statements are prepared on the numbers. incorrect basis. This is done for ease of consolidating the employee numbers. 11