Heswall Maranatha Trust Annual Report 2024 -2025.
Introduction.
This is the third report since the merger of Heswall Gospel Hall Trust with Maranatha Cottage Trust.
The purpose of the annual report is to capture, at a high level, the activities of the Trust over this financial period.
Our solicitor continues to be Jonathan Aldersley of Butcher & Barlow.
The Trust continue to bank with Barclays.
Funds.
Investment funds are held with an online platform called Insignis. Using this platform, we invest in low-risk accounts limiting the amount per account to benefit from the Government Guarantee Scheme. This decision was taken after we had investigated various options for using these funds and we concluded that we join an investment platform that would let us invest funds at preferential rates and to the level of risk with which we would be happy.
Property.
The Trust owns; 2 blocks of 4 flats and 5 conjoined bungalows. Of the 8 flats, 1 (number 18) has been sold on a leasehold basis which expires 01/01/2112. The Trust bought out the other leaseholder (number 20 with the sitting tenant remaining) in 2021 using the funds received for the sale of the semi-detached property (29 Hawthorn Drive). The other leaseholder decided to remortgage rather than sell the lease back to us. Heswall Gospel Hall sale was completed in May 2021.
The Berwyn flats under our control had an occupancy rate of 100% for this year (95.8% last year and 97.6% the year before), and Maranatha an occupancy rate of 100% (100% last year and 95% the year before), giving an overall occupancy rate of 100% (97.6% last year and 96.5% the year before). We are not aware of any tenants intending to leave.
An annual inspection of properties (including that sold on leasehold basis) was carried out between the 5/09/24 and 7/09/24 by GSW, GB, and GAW.
| GSW, GB, and GAW. | |||
|---|---|---|---|
| Year of inspection | No of jobs identified | No of new jobs | No of jobs completed |
| 2024 | (37-monitor21) 16 | 15 | 14 |
| 2023 | (63-monitor25) 38 | 36 | 34 |
| 2022 | 25 | 8 | 14 |
| 2021 | 33 | 28 | 10 |
| 2020 | 74 | 27 | 24 |
This year details of work required were shared with the leaseholder (18 Berwyn) with the expectation that they will complete their work before the next inspection as was the case last year.
Opportunity was taken at the annual inspection to identify any interior decorating that needed to be done. This is the Tenant's responsibility.
All tenants were given the list of jobs identified at their property and site that the Trust was going to address, and also a list identifying decorating work that they were required to complete within 6 months.
Expenditure.
Expenditure this year has increased by 121% (the last 2 years it reduced by 26.6% and 18.4% respectively). Expenditure next year is expected to be about the same as this year.
Besides the usual low-cost maintenance jobs there have been 4 requiring expenditures over £1000;
- replace kitchen in 14 Berwyn.
2. replace path from 24/22 Berwyn to pavement because the existing path was rough and making it difficult for the tenant at 24 Berwyn to manoeuvre his walking aid.
3. repair and paint the 3 garages at Berwyn.
4. cutting back trees and repairing paved area included within the Maranatha garden maintenance figure.
This year work completed that could be described as upgrading the properties has cost £9,095 (£26,488 last year) for Berwyn and £1,818 (£12,932 last year) for Maranatha giving a total cost of £10,913 (£39,420 last year).
Income.
Over the last year the income from rent has increased by 7.4% (6.3% last year and 24.1% the last year). Rents are reviewed every year.
Tenants.
To the best of our knowledge, of the Tenants of the 7 flats and 5 bungalows none are in employment, 5 are on benefits, one is a student, and the rest are retired.
Most of the tenants have been in residence for many years.
During the annual inspection most expressed their appreciation at being able to rent the premises.
New Tenant agreements were introduced from 01/12/24 being effective for 3 years. The agreement sets out clearly responsibilities of both Tenant and Landlord, and they were willingly signed by all. They are due for review and renewal in December 2027.
Trustees.
The number of trustees continues at 4 this year. During this year Graham has been Chairman, Gareth has been Treasurer/Auditor, and Gordon has been Secretary.
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Independent examination of charity accounts checklist (CC32a) A recommended checklist for examiners
This checklist is not suitable for the examination of voluntary group accounts.
1. Self-assessment checklist
The questions in this checklist are designed to help the examiner to undertake their independent examination in accordance with the legal requirements and good practice recommendations set out in the Commission’s guidance on Independent examination of charity accounts: Directions and guidance for examiners (CC32).
The examiner is recommended to use the checklist alongside the Directions for independent examination. Not all the checks listed will apply in the case of every independent examination and so the checklist is not a substitute to the examiner using their own judgment as to what is necessary.
The prompt ‘step done’ may prompt a ‘yes’ or ‘no’. A ‘no’ answer does not always indicate a problem because it may simply be that the step was either not applicable or found not to be necessary to the examination undertaken in which case the words ‘not applicable’ or ‘not necessary’ might be entered in place of a working paper reference.
Some answers may be ‘no’ because the evidence or information that was needed could not be obtained and this will need to be considered when the examiner makes their report. It is recommended that all the steps for each Direction are completed with a working paper reference added.
It may be that the examiner completes the checklist as they go through the examination or as a completeness check at the end as they bring their examination to a conclusion and prepare their report. There is no legal requirement to use this checklist and examiners may substitute their own checklist or take an alternative approach.
If the checklist is completed it is recommended that this forms part of the formal record of their independent examination undertaken and is kept in the file of examiner’s working papers.
2. Checklist
| The Directions and documentation | Step done? |
Working paper reference |
|---|---|---|
| Direction 1: Check whether the charity is eligible to have an independent examination |
||
| Checked the charity audit threshold applying to the accounts to be reviewed |
||
| Checked an audit is not required for anyother reason | ||
| Confirmed the charityis eligible for independent examination | ||
| Confirmed the amount of the charity’s income to figure shown the accounts (including any branches) and confirmed that income and assets are below the audit threshold or, if applicable, obtained a copy of the letter from the Commission approvingan audit dispensation |
||
| If the charity has one or more subsidiaries confirmed that group accounts are not required bylaw |
N/A | |
| If a charitable company checked that the audit exemption statement has been made |
N/A | |
| If applicable, rechecked the threshold calculation during the examination |
N/A | |
| If the charity’s income is more than £250,000 confirmed that the examiner is a member of one of the listed bodies |
N/A | |
| If applicable, informed the trustees that the charity is not eligible for an independent examination |
N/A | |
| If receipts and payments accounts have been prepared, checked that the charity’s gross income is less than £250,000 and that it is not a company |
||
| If receipts and payments accounts have been prepared, check that there is no requirement to prepare accruals accounts in the charity’sgoverningdocument or for anyother reason |
N/A | |
| If applicable, informed the trustees that the charity is not eligible toprepare receipts andpayments accounts |
N/A | |
| Direction 2: Check for any conflict of interest that prevents the examiner from carrying out their independent examination |
||
| Confirmed that there are no close personal relationships with the trustees that compromise independence |
||
| Confirmed as having no involvement in the day to day administration of the charity |
||
| If providing other services to the charity then confirmed that all the criteria in Direction 2 necessaryfor independence are met |
N/A | |
| Identified that there are no circumstances in the examiner’s judgment that would reasonably lead to the perception that the examiner is not independent |
| The Directions and documentation | Step done? |
Working paper reference |
|---|---|---|
| Considered whether sufficiently skilled to carry out the examination and, where required, confirmed membership of a listed body |
||
| If applicable, informed the trustees that you are not eligible to carryout the independent examination |
N/A | |
| Direction 3: Recordyour independent examination | ||
| File of working papers prepared to document the work undertaken (see the Direction for guidance on key working papers) |
||
| Evidence of appointment on file | ||
| If issued,letter of engagement signed bythe trustees on file | N/A | |
| Documentation of steps required byDirection 1 are all done | ||
| Documentation that steps required byDirection 2 are all done | ||
| Analytical review documented | ||
| Areas of concern identified and noted whether these were resolved or if unresolved and significant have included them in the examiner’s report |
||
| Verification and vouching procedures undertaken and any checks made are on file |
||
| Copyof approved accounts on file | ||
| Copyof trustees’ annual report on file | ||
| Copies of information relied upon as part of the examination are on file |
||
| If applicable,copies of written assurancesgiven | N/A | |
| Recorded the conclusions drawn as an outcome of the independent examination that support the examiner’s report are on file |
||
| Recorded any matters of material significance about which a report must be made direct to the Commission |
||
| Recorded whether to exercise discretion and report on relevant matters direct to the Commission |
||
| Direction 4: Planyour independent examination | ||
| Obtained an understanding of the charity’s constitution, objectives, organisational structure, the funds managed, its activities and accountingrecords and systems |
||
| Planned specific examination procedures appropriate to the circumstances of the charity |
||
| Reviewed whether any areas for improvement were advised to the trustees in the previous year’s independent examiner’s report (or audit report and management letter) and looked to see if anyaction taken |
N/A | |
| Considered the financial risks identified and, where accruals accounts prepared, considered whether the trustees have evidence that shows that the charityis agoingconcern |
||
| Noted any implications for the examiner’s report and for separate reportingto the Commission |
| The Directions and documentation | Step done? |
Working paper reference |
|---|---|---|
| Direction 5: Check that accounting records are kept to the required standard |
||
| Checked that accounting records have been kept are complete and considered if theyhave been kept to the required standard |
||
| Asked the trustees about how they ensure the accounting records are complete |
||
| If corrections made or records created during the examination, the trustee approval for these has been sought and obtained |
||
| Asked the trustees if they carried out a review of the charity’s internal financial controls in theyear reported |
||
| Noted any implications for the examiner’s report and for separate reportingto the Commission |
||
| Direction 6: Check that the accounts are consistent with the accounting records |
||
| Compared the accounts with the underlyingaccountingrecords | ||
| Checked some entries from the listing of transactions of income and expenditure to vouchers such as invoices, bank statements,and receipts. |
||
| If applicable, confirmed that the trustees have taken the necessary steps to ensure that restricted or endowed funds are correctlyreported in the accounts |
N/A | |
| If additional checks were necessary, the evidence was found that showed the accounting record was complete, voucher present,and both supported the entryin the accounts |
N/A | |
| Direction 7: If the accounts are prepared on an accruals basis and one or more related party transactions took place the examiner must check if these were properly disclosed in the notes to the accounts |
N/A | |
| Checked that the disclosures required by the SORP have been made and are complete |
N/A | |
| Considered whether there are any implications for the examiner’s report and reportingto the Commission |
N/A | |
| If receipts and payments accounts prepared and a related party transaction note was provided, then checked the note for anyimplications for the examiner’s report |
N/A | |
| Direction 8: Check the reasonableness of the significant estimates and judgments and accounting policies used in accounting for the types of fund held and in the preparation of the accounts |
||
| Checked with the trustees that the separate funds of the charity have been correctly accounted for and reported correctly in the accounts |
||
| Checked the reasonableness of any significant estimates or judgments that have been made inpreparingthe accounts |
----- Start of picture text -----
The Directions and documentation Step Working
done? paper
reference
Where accruals accounts are prepared, checked that the N/A
accounting policies adopted are consistent with the SORP and
are appropriate to the activities of the charity
Where accruals accounts are prepared, checked that the N/A
accounts were prepared on a going concern basis
Noted any implications for the examiner’s report and for
separate reporting to the Commission
Direction 9: The examiner must check whether the
trustees have considered the financial circumstances of
the charity at the end of the reporting period and, if the
accounts are prepared on an accruals basis, check
whether the trustees have made an assessment of the
charity’s position as a going concern when approving the
accounts
Asked the trustees whether they expect the charity to be able
to settle outstanding invoices, bills, and commitments as
and when they fall due
Asked the trustees about the reserves policy and the adequacy
of the level of reserves held
Where accruals accounts are prepared, checked that the N/A
trustees’ have made an assessment of going concern and that
their assessment is reasonable given the information available
Where accruals accounts are prepared, checked that the N/A
SORP’s disclosures about going concern have been made
Noted any implications for the examiner’s report and for
separate reporting to the Commission
Direction 10: Check the form and content of the accounts
Where receipts and payments accounts have been prepared,
checked that the charity can lawfully prepare such accounts,
that all the accounting statements are present and that the
funds of the charity are correctly identified
Where accruals accounts are prepared, checked that they N/A
comply with the SORP and applicable accounting standard
If the charity is a company, checked that the accounts also N/A
comply with the applicable company law requirements
Noted any implications for the examiner’s report and for
separate reporting to the Commission
Direction 11: Identify items from the analytical review of
the accounts that need to be followed up for further
explanation or evidence
Carried out an analytical review
----- End of picture text -----
| The Directions and documentation | Step done? |
Working paper reference |
|---|---|---|
| Following the analytical review, selected material items in the accounts for further explanation or supportingevidence |
||
| If the accounts could be materially misstated, additional checks were undertaken and the examiner is satisfied that the item(s) identified were satisfactorily explained and correctly included in the accounts |
||
| Noted any implications for the examiner’s report and for separate reportingto the Commission |
||
| Direction 12: Compare the trustees’ annual report with the accounts |
||
| Checked that any figure for reserves quoted in the trustees’ annual report is not materiallyinconsistent with the accounts |
||
| Compared the trustees’ annual report with the accounts for any material inconsistency |
||
| Noted any implications for the examiner’s report and for separate reportingto the Commission |
||
| Direction 13: Write and sign the independent examination report |
||
| Reviewed the conclusions from the independent examination | ||
| Considered whether the examination has identified a matter of concern that should be reported in the examiner’s report |
||
| Checked that the examiner’s report covers all the matters required |
||
| If relying on the work of others in undertaking the independent examination, the examiner is fully satisfied with their work and that work has been fullydocumented |
N/A | |
| Signed and dated the examiner’s report | ||
| Reported matters of material significance direct to the Commission |
||
| Exercised discretion and reported relevant matters direct to the Commission |
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Signed: Date:
Examiner: Thomas Rankin former owner & MD of T & J Farnell Ltd.