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2023-03-31-accounts

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

WHEELHOUSE SQUARE FLATS

Smailes Goldie Watson Limited Chartered Accountants

12 Alma Square Scarborough North Yorkshire YO11 1JU

WHEELHOUSE SQUARE FLATS

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 March 2023

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 13

WHEELHOUSE SQUARE FLATS

REPORT OF THE TRUSTEES for the year ended 31 March 2023

The trustees present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objective of the Trust is to house persons of limited means resident in the Borough of Scarborough, with a preference for persons who were born in the Borough.

The policy is to continue to provide comfortable accommodation for qualified persons, with constant review of maintenance and upgrading of the property.

Public benefit

The Trustees have considered the Charity Commission general guidance on Public Benefit. The aim of the Trust is to benefit the public by providing and maintaining to reasonably high standard affordable housing in secure and sociable surroundings to persons of limited means. The Trustees believe that this has been achieved by setting the level of residents' contributions at substantially below open market value for similar accommodation. The Trust also provides the services of a competent and caring warden.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

There have been no material changes in the policies adopted in order to achieve the Charity's objectives, which themselves remain unchanged. The letting of the flats remained at a high level with few vacant periods. The programme to improve the flats is continuing and flats are updated where deemed necessary.

Expenditure on repairs during the year has increased mainly because the expenditure in the previous two years was reduced due to the effect of the Covid-19 pandemic on access to the property by tradesmen.

Expenditure this year includes the upgrade of three more flats, renewal of cavity wall insulation and the installation of new hot water boilers.

The results for the year are as expected, given that they are reliant on contributions from residents and income from investments.

The Trustees strive to achieve a high standard of accommodation and believe that they will continue to have the resources to maintain a high standard of accommodation and carry out upgrading work.

FINANCIAL REVIEW

Investment policy and objectives

These are governed by the Trustee Act 2000.

The investment in the Extraordinary Repair Fund is specifically for the purposes of the extraordinary repairs to, improvement or rebuilding of the flats.

The Cyclical Maintenance Fund is for the purpose of providing those items of ordinary maintenance and repair of the flats belonging to the Charity as occur at infrequent intervals.

Investment in the above two funds is as recommended by the National Association of Almshouses, or such other sum as may be approved by the Charity Commissioners.

Reserves policy

As the main asset of the Charity is the land and buildings, the main reserves are the Extraordinary Repair Fund and the Cyclical Maintenance Fund, which are designed to cover the large-scale repairs, improvements or rebuilding of the flats. The Trustees are, however, mindful that there are ongoing maintenance costs for which funds need to be readily available and therefore consider the general fund reserves justified. The total funds available at the year end were £1,561,085. This position is reviewed by the Trustees regularly to ensure there will be funds available to operate the flats efficiently, given that it is periodically necessary to use some of these funds to finance the type of work they are designed to cover.

FUTURE PLANS

The trustees will continue to operate the flats, safeguarding and maintaining the assets and resources of the flats while providing facilities, care and support to all residents enabling a comfortable and safe living environment.

Page 1

WHEELHOUSE SQUARE FLATS

REPORT OF THE TRUSTEES for the year ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

Constitution:

Wheelhouse Square Flats is an unincorporated trust which is registered with the Charity Commissioners, charity number 226209. The Charity was formed as follows:-

a) The Almshouse Charity of George Wheelhouse, comprised in a declaration of trust dated 6 January, 1865 and Schemes of the Charity Commissioners of 21 August 1914 and 24 May 1967;

b) The Charity of John Hugill administered in connection therewith, founded by will proved at York on 8 June 1942.

The Charity does not actively fundraise and seeks to continue its work through the careful stewardship of its existing resources.

Recruitment and appointment of new trustees

The body of Trustees shall consist, when complete, of eight competent persons being Co-optative Trustees.

The Trustees shall be persons who through residence, occupation or employment, or otherwise have a special knowledge of the Borough of Scarborough. The appointment is for a four year term by a resolution of the Trustees passed at a special meeting.

Trustees meetings are normally held at least four times a year but in the year covered by this report, due to the restrictions of Covid-19, it was only possible to hold one ordinary meeting but the Trustees kept in regular contact by telephone and email. At the Trustees meetings the Trustees agree on broad strategy and areas of activity for the Trust, including consideration of investment, reserves, risk management policies and performance. The day to day administration is dealt with by the Chairman and the Treasurer.

In the event that a Trustee retires and a new Trustee is required, new Trustees are sought by canvassing business and social contacts of the existing Trustees. The Trustees are chosen for their experience and expertise so no formal induction or training is considered to be necessary.

Organisational structure

The land comprises approximately 4557 square yards, having a frontage to Dean Road, Scarborough. The deeds to the property are held by Thorpe and Co. Solicitors, 17 Valley Bridge Parade, Scarborough, YO11 2JX.

The Wheelhouse Square Flats building comprises:-

1 Warden Flat 28 Single Flats 4 Double Flats

The Trustees shall apply the income of the Charity for the benefit of the residents of the Charity or any of them in such a manner as the Trustees think fit from time to time, after having paid the cost of repairs, insurance and all other charges and outgoings payable in respect of the property of the Charity and all other proper costs incidental to the administration and management of the Charity.

Related parties

The Trust is a member of the National Almshouse Association.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

226209

Principal address

Office below the warden's flat Wheelhouse Square Dean Road Scarborough YO12 7SP

Page 2

WHEELHOUSE SQUARE FLATS

REPORT OF THE TRUSTEES for the year ended 31 March 2023

Trustees

I R Brabbs B C Pidd E M Smith P H Hemmingham Mrs C Robinson Mrs C Smith D R L Davies (resigned 11.5.23) S P Bairstow (appointed 29.3.23) Principal Officers P H Hemmingham Chairman I R Brabbs Secretary Mrs C Robinson Treasurer

Independent Examiner Smailes Goldie Watson Limited Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU

Solicitors

Thorpe and Co 17 Valley Bridge Parade Scarborough YO11 2JX

Bankers

HSBC Bank Plc 33 St. Nicholas Street Scarborough YO11 2HN

Approved by order of the board of trustees on 25 October 2023 and signed on its behalf by:

P H Hemmingham - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WHEELHOUSE SQUARE FLATS

Independent examiner's report to the trustees of Wheelhouse Square Flats

I report to the charity trustees on my examination of the accounts of Wheelhouse Square Flats (the Trust) for the year ended 31 March 2023.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Use of report

This report is made solely to the Charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, or for the opinions I have formed.

Stephen Bramall BSc FCA

Smailes Goldie Watson Limited Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU

30 October 2023

Page 4

WHEELHOUSE SQUARE FLATS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Provision of accommodation
Investment income
2
Total
EXPENDITURE ON
Charitable activities
Provision of accommodation
Other
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
£
350
119,450
47,193
166,993
142,707
1,261
143,968
(32,207)
(9,182)
1,570,267
1,561,085
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
2023
Total
funds
£
350
119,450
47,193
166,993
142,707
1,261
143,968
(32,207)
(9,182)
1,570,267
1,561,085
2022
Total
funds
£
350
112,326
39,278
151,954
74,299
1,195
75,494
86,318
162,778
1,407,489
1,570,267

The notes form part of these financial statements

Page 5

WHEELHOUSE SQUARE FLATS

BALANCE SHEET 31 March 2023

Notes
FIXED ASSETS
Tangible assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
11
Unrestricted funds
TOTAL FUNDS
Unrestricted
funds
£
247,297
1,278,021
1,525,318
25,146
44,122
69,268
(33,501)
35,767
1,561,085
1,561,085
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
2023
Total
funds
£
247,297
1,278,021
1,525,318
25,146
44,122
69,268
(33,501)
35,767
1,561,085
1,561,085
1,561,085
1,561,085
2022
Total
funds
£
233,445
1,301,940
1,535,385
2,860
42,567
45,427
(10,545)
34,882
1,570,267
1,570,267
1,570,267
1,570,267

The financial statements were approved by the Board of Trustees and authorised for issue on 25 October 2023 and were signed on its behalf by:

P H Hemmingham - Trustee

The notes form part of these financial statements

Page 6

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The trustees consider that there are no material uncertainties about the trust's ability to continue as a going concern. The flats continue to enjoy good occupancy rates and the trust has a healthy bank balance and reserves.

The presentation currency of the financial statements is the Pound Sterling (£).

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.Income is deferred to the following period where it is received in advance. Donations and gifts are recognised when receivable at market value. Dividends from investments are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs are included within support costs in accordance with Charities SORP (FRS 102), where they relate to those expenses incurred in connection with the administration of the charity with constitutional and statutory requirements.

Tangible fixed assets

Tangible fixed assets are initially measured at cost. After initial recognition items of tangible fixed assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Computer equipment - 33% on cost
Community room and sundry equipment - 10% on cost
Fire and security equipment - 10% on cost

The Trustees' policy is currently not to provide for depreciation of freehold buildings, as recent property valuations obtained show the current market value exceeds book value. In the opinion of the Trustees, the omission of depreciation on freehold buildings would not materially affect the appreciation of the financial statements.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are allocated for particular restricted purposes.

continued...

Page 7

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

1. ACCOUNTING POLICIES - continued

Fund accounting

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Financial instruments

The charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other debtors and creditors. Listed investments are included at their market value as at the balance sheet date.

Debt instruments that are payable or receivable within on year, typically debtors or creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Investments

Investments are initially recorded at cost then measured at fair value using the closing market value at each year end. Any gain or loss arising in the year, either on disposal or revaluation is reflected in the Statement of Financial Activities.

Judgements and key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Critical judgements in applying the company's policies

The trustees have used their judgement to assess the fair value of unlisted shares based on independent valuation reports prepared.

Critical accounting estimates and assumptions

The trustees do not consider that any of the estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2. INVESTMENT INCOME

INVESTMENT INCOME
2023 2022
£ £
Investment income 47,066 39,271
Deposit account interest 127 7
47,193 39,278
SUPPORT COSTS
Governance
Finance costs Totals
£ £ £
Other resources expended 85 1,176 1,261

3. SUPPORT COSTS

continued...

Page 8

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

3. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Finance

Finance
2023 2022
Other
resources Total
expended activities
£ £
Bank charges 85 55
Governance costs
2023 2022
Other
resources Total
expended activities
£ £
Independent examiners fees 1,176 1,140

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

5. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Warden and Relief Warden
2023
£
18,268
18,268
2023
1
2022
£
15,548
15,548
2022
1

No employees received emoluments in excess of £60,000.

There are no key management personnel other than trustees.

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Provision of accommodation
Investment income
Total
Unrestricted
funds
£
350
112,326
39,278
151,954
Restricted
funds
£
-
-
-
-
Total
funds
£
350
112,326
39,278
151,954

EXPENDITURE ON

continued...

Page 9

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

6.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
funds
funds
£
£
Charitable activities
Provision of accommodation
74,299
-
Other
1,195
-
Total
75,494
-
Net gains on investments
86,318
-
NET INCOME
162,778
-
RECONCILIATION OF FUNDS
Total funds brought forward
1,407,489
-
TOTAL FUNDS CARRIED FORWARD
1,570,267
-
.
7.
TANGIBLE FIXED ASSETS
Fire,
Community
safety
room and
and
Freehold
sundry
security
Computer
property
equipment
equipment
equipment
£
£
£
£
COST
At 1 April 2022
209,699
40,556
53,347
1,345
Additions
-
20,296
-
-
At 31 March 2023
209,699
60,852
53,347
1,345
DEPRECIATION
At 1 April 2022
-
28,562
41,609
1,331
Charge for year
-
3,957
2,480
7
At 31 March 2023
-
32,519
44,089
1,338
NET BOOK VALUE
At 31 March 2023
209,699
28,333
9,258
7
At 31 March 2022
209,699
11,994
11,738
14
Total
funds
£
74,299
1,195
75,494
86,318
162,778
1,407,489
1,570,267
Totals
£
304,947
20,296
325,243
71,502
6,444
77,946
247,297
233,445

continued...

Page 10

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

8. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 April 2022
Additions
Revaluations
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
Listed
investments
£
1,301,940
8,288
(32,207)
1,278,021
1,278,021
1,301,940

There were no investment assets outside the UK.

The listed investments portfolio at 31 March 2023 is as follows:-

2023 2022
Market value Market value
£ £
M&G Charity Multi Asset Fund -
Accumulation Shares
1,161,201 1,114,067
M&G Charity Multi Asset Fund -
Income Shares
116,820 187,873
Original cost of asset stated at
valuation:
Accumulation Shares 441,411
Income Shares 107,305

Cost or valuation at 31 March 2023 is represented by:

Valuation in 2023
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Debtors
Prepayments
Amounts due from designated fund to general fund from forthcoming
share sale
Listed
investments
£
1,278,021
2023 2022
£ £
601 936
2,089 1,924
22,456 -
25,146 2,860

continued...

Page 11

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023 2022
£ £
Residents contributions received in advance 9,075 7,179
Accruals 1,970 3,365
Amounts due from designated fund to general fund from forthcoming 22,456 -
share sale
33,501 10,544

11. MOVEMENT IN FUNDS

At 1.4.22
£
Unrestricted funds
General fund
423,858
Extraordinary Repair Fund
794,740
Cyclical Maintenance Fund
351,669
1,570,267
TOTAL FUNDS
1,570,267
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
126,047
Extraordinary Repair Fund
28,466
Cyclical Maintenance Fund
12,480
166,993
TOTAL FUNDS
166,993
Net
movement
in funds
£
51,876
(14,907)
(46,151)
(9,182)
(9,182)
Resources
expended
£
(68,118)
(24,900)
(50,950)
(143,968)
(143,968)
Transfers
between
funds
£
(53,394)
20,262
33,132
-
-
Gains and
losses
£
(6,053)
(18,473)
(7,681)
(32,207)
(32,207)
At
31.3.23
£
422,340
800,095
338,650
1,561,085
1,561,085
Movement
in funds
£
51,876
(14,907)
(46,151)
(9,182)
(9,182)

Comparatives for movement in funds

Unrestricted funds
General fund
Extraordinary Repair Fund
Cyclical Maintenance Fund
TOTAL FUNDS
At 1.4.21
£
400,983
700,665
305,841
1,407,489
1,407,489
Net
movement
in funds
£
70,626
75,958
16,194
162,778
162,778
Transfers
between
funds
£
(47,751)
18,117
29,634
-
-
At
31.3.22
£
423,858
794,740
351,669
1,570,267
1,570,267

continued...

Page 12

WHEELHOUSE SQUARE FLATS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

11. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Extraordinary Repair Fund
Cyclical Maintenance Fund
TOTAL FUNDS
Incoming
resources
£
119,011
23,347
9,596
151,954
151,954
Resources
expended
£
(60,085)
-
(15,409)
(75,494)
(75,494)
Gains and
Movement
losses
in funds
£
£
11,700
70,626
52,611
75,958
22,007
16,194
86,318
162,778
86,318
162,778
Gains and
Movement
losses
in funds
£
£
11,700
70,626
52,611
75,958
22,007
16,194
86,318
162,778
86,318
162,778
162,778
162,778

The extraordinary repair fund is to provide finance for the extraordinary repair, improvement or rebuilding of the flats.

The cyclical maintenance fund is to provide finance for those items of ordinary maintenance and repair of the flats as recur at infrequent intervals.

Following a review of the charity's reserves, the trustees have ascertained that a correction is needed to the classification of the extraordinary repair fund and cyclical maintenance fund from restricted reserves to unrestricted (designated) reserves, as no external restriction was ever placed on the funds. Therefore, the financial statements have been restated to reflect this.

12. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 13