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2021-12-31-accounts

Charity number: 227044

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

CONTENTS
Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 36

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees

Mr I Lavery MP, Treasurer Mr J Pease, Secretary Cllr J J Gobin Mr B Kelly (resigned 8 October 2021) Mr J Smith (deceased 28 August 2021) Mr N Partis Mr G E Wilson, Chair from 8 October 2021 M Fitton

Charity registered number

227044

Independent auditors

Kinnair Associates Limited Chartered Accountants Registered Auditors Aston House Redburn Road Newcastle upon Tyne NE5 1NB

Bankers

Unity Trust plc Nine Brindley Place 4 Oozells Square Birmingham B1 2HB

Solicitors

Browell Smith & Co Solicitors Unit 42-44 Apex Business Village Annitsford Cramlington Northumberland NE23 7BF

Co-opted members

P A Browell - resigned 21 September 021

Investment advisers

Brewin Dolphin Time Central 32 Gallowgate Newcastle upon Tyne NE1 4SR

Page 1

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 January 2021 to 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

Policies and objectives

The objectives of the Association shall be to provide and maintain homes, associated services and facilities for the accommodation of the residents. Residents shall be persons over the age of 59 who have been employed in or about a coal mine in the area of Northumberland and the widows of such persons.

In so far as the homes are not required for residents having those qualifications, they may be used for the accommodation of persons over the age of 59 who have been employed in or about a coal mine elsewhere, or the widows of such persons, or other persons, who through age, infirmity or economic circumstances have need of such accommodation.

The Association may provide land and buildings to be set aside as homes for residents and may provide additional services and facilities for the benefit of residents.

The original aims and objectives are superseded by the revised rules adopted by the Association on 1 December 1992.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Achievements and performance

Review of activities

Rent incoming is a steady flow of unrestricted funds, monthly or 4 weekly from new and existing tenants. 38 cottages have been relet and refurbishments completed as required.

Program of works continued to remove parkray fires.

Perimeter walls, pointed to reinforce aging structures. An external wall for an entire was demolished and rebuilt in line with current health and safety regulations.

Investment policy and performance

The investments held by the trustees have historically been gifted to the Association. The trustees policy has been to leave the investments until the cash is required.

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NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

Going concern

The recovery period post COVID 19, has been favourable, and the Trustee’s have a reasonable expectation that the Charity still has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt a going concern basis in preparing the financial statements. Further details can be found in the accounting policies.

Reserves policy

The general reserves are observed annually, including assessment of expenditure and commitments of reserves.

The trustees propose that the charity should hold general reserves equivalent to approximately 12 weeks general expenditure in order to provide sufficient working capital to provide a cushion to deal with unexpected emergencies.

In order to clearly identify the general reserves available to the charity, the trustees have designated funds to an equivalent value of the fixed assets held as these funds cannot be realised without selling assets which are used by the charity. The remaining general funds are in deficit; The trustees’ will be making informed decisions going forward, to increase the general funds, and monitor transactions carefully. They will also monitor progress on existing and new projects requiring attention. The solar panel loan is reviewed bi annually to assess progress.

Financial overview

The principal funding source for the charity continues to be the maintenance contribution paid by the residents. The charge is reviewed annually to ensure that it continues to be adequate to meet the objectives of the Association. The contributions received in the year were £1,151,371 (2020: £1,154,097).

Total incoming resources decreased from £1,284,469 to £1,243,780 and the charity's total expenditure increased from £1,093,482 to £1,239,581. Net incoming resources before investment, revaluation and pension gains or losses as reported in the Statement of Financial Activities was £7,281 (2020: £190,627).

Net gains on investments amounted to £44,131 (2020: £30,788) and the pension gain was £470,000 (2020: loss £294,000) resulting in net increase in funds of £518,330 (2020: net reduction in funds of £72,585).

Total funds carried forward increased from £33,104,111 to £33,622,441. A breakdown of the charity's reserves can be found in note 22 to the accounts. The balance on the unrestricted general fund was a deficit balance of £162,582. The deficit in reserves arises as a result of a 20 year long term loan used to fund the installation of solar panels on some of the homes, which is being repaid with the Feed in Tariff income generated from the solar panels. The solar panels have an estimated useful life of 20 years.

We do not anticipate any shortage of potential applicants, for the cottages, as the rent is currently substantially lower than comparable social housing or private rentals in the area.

Page 3

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Principal risks and uncertainties

The trustees confirm that the major risks to which the charity is exposed have been reviewed and systems are in the process of being put in place to mitigate those risks.

The principal risk of the Association is that demand for the properties by eligible tenants could wane with demise of the coal industry in Northumberland. However, at present, the waiting lists for each group of cottages do not reflect a problem for the foreseeable future.

Financial risk management objectives and policies

The trustees perform an annual review of the risks facing the charity, the establishment of systems and procedures to mitigate identifiable risks and the implementation of procedures designed to minimise any potential impact on the charity should any of these risks materialise.

Structure, governance and management

Constitution

Northumberland Aged Mineworkers' Homes Association is a registered charity, number 227044, and is constituted under a Trust deed.

NAMHA was formed in 1900 and is governed by its revised bye laws dated 1 December 1992. The charity is also a member of the National Association of Almshouses (number 1799).

Over the years the Association has taken over a number of similar charities, some of which remain registered with with the Charity Commission as subsidiaries of NAMHA. These subsidiary charities are completely absorbed into the management and administrative structure of NAMHA and do not prepare accounts in their own right.

Methods of appointment or election of Trustees

Any vacancy on the Board of Trustees is filled by the appointment of a suitable candidate from men or women who have worked in the mining industry in the Northumberland coalfield. The candidate shall be determined, if necessary, by a majority vote of the remaining sitting members.

Organisational structure and decision-making policies

The Association is managed by a board of trustees nominated by participating trade unions in the Northumberland coalfields. Following the demise of the coal industry in the county and the amalgamation of certain trade union associations, it has become necessary to co-opt additional members onto the board.

Co-opted members are selected by the board for their professional expertise in their own particular field and attend meetings in an advisory capacity and are not involved in policy making decisions.

There are at least four meetings per annum of the full Board of Trustees when all major policy decisions are made. Where necessary, additional special meetings of the full board are convened. In addition, various subcommittees formulate new policy and make recommendations to the full Board.

The day to day management of the charity is delegated by the charity's trustees to the manager who can be contacted at the registered office as shown on page one.

Page 4

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management (continued)

Policies adopted for the induction and training of Trustees

New trustees attend an induction meeting with the Chairman, Honorary President and Treasurer where they are made aware of the aims and objects of the Association. Any specialist training which may be required is provided by an appropriate member of staff.

Pay policy for key management personnel

Remuneration for key management personnel is reviewed on an annual basis based on a formal appraisal system.

Plans for future periods

Rendering work to protect the structure of a block of 4 cottages, has been identified and needs remedial works carried out, which will remedy certain damp problems. Pointing work is essential on a number of streets, to reinforce the structure of the buildings. External walls to certain streets will need to be strengthened in due course. Damp continues to factor, as is being addressed continually where needed.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Kinnair Associates Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 28 October 2022 and signed on their behalf by:

Mr G E Wilson (Chair of Trustees)

Page 6

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

Opinion

We have audited the financial statements of Northumberland Aged Mineworkers' Homes Association (the 'charity') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 8

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -

To address the risk of fraud through management bias and override of controls, we: -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which include, but are not limited to: -

Page 9

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION (CONTINUED)

There are inherent limitations in our anticipated audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Kinnair Associates Limited

Chartered Accountants Registered Auditors Aston House Redburn Road Newcastle upon Tyne NE5 1NB 28 October 2022

Kinnair Associates Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8,9
Charitable activities
10
Total expenditure
Net (expenditure)/income before net gains on
investments
Net gains on investments
Net movement in funds before other recognised
gains/(losses)
Other recognised gains/(losses):
Actuarial gains/(losses) on defined benefit pension
schemes
28
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
-
1,151,371
84,487
7,922
1,243,780
93,400
1,146,181
1,239,581
4,199
44,131
48,330
470,000
518,330
33,104,111
518,330
33,622,441		 Total
funds
2021
£
-
1,151,371
84,487
7,922
1,243,780
93,400
1,146,181
1,239,581
4,199
44,131
48,330
470,000
518,330
33,104,111
518,330
33,622,441		 Total
funds
2020
£
10,000
1,154,097
115,535
4,837
1,284,469
94,529
999,313
1,093,842
190,627
30,788
221,415
(294,000)
(72,585)
33,176,696
(72,585)
33,104,111

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 15 to 36 form part of these financial statements.

Page 11

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
15
Investments
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
28
Total net assets		 10,500
277,490
941,027
1,229,017
(274,175)		 2021
£
33,785,023
383,826
34,168,849
954,842
35,123,691
(1,461,250)
33,662,441
(40,000)
33,622,441		 8,871
255,370
907,743
1,171,984
(268,674)		 2020
£
33,969,831
341,408
34,311,239
903,310
35,214,549
(1,573,438)
33,641,111
(537,000)
33,104,111

Page 12

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021

Note
Charity funds
Unrestricted funds
Unrestricted funds excluding pension asset
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 33,662,441
(40,000)		 2021
£
33,622,441
33,622,441		 33,641,111
(537,000)		 2020
£
33,104,111
33,104,111

The financial statements were approved and authorised for issue by the Trustees on 28 October 2022 and signed on their behalf by:

Mr G E Wilson

Mr J Pease

(Chair of Trustees)

The notes on pages 15 to 36 form part of these financial statements.

Page 13

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 15 to 36 form part of these financial statements		 2021
£
195,349
7,922
14,090
(12,377)
9,635
(171,700)
(171,700)
33,284
907,743
941,027		 2020
£
259,702
4,837
10,439
(8,996)
6,280
(172,134)
(172,134)
93,848
813,895
907,743

Page 14

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. General information

The Northumberland Aged Mineworkers' Homes Association is a registered charity, number 227044. The charity is unincorporated and its registered office is 7 Esther Court, Wansbeck Business Park, Ashington, NE63 8AP.

The financial statements are prepared in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Northumberland Aged Mineworkers' Homes Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable trust to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charitable trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. The trustees have considered the impact of the Covid-19 pandemic in making this assessment.

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NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Maintenance contributions are recorded on an accruals basis representing the amounts due within the year and invoiced in the year.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost, inclusive of irrecoverable Value Added Tax except where assets were capitalised some time after being acquired and no reliable cost information was available, in which case a reasonable estimate of the asset's value to the charity was used.

Donated assets are capitalised at their estimated useful value at the time of the gift.

Freehold housing properties were valued at their fair value on transition to FRS102 to establish their "deemed cost". Leasehold housing properties were revalued in 2018 and are being depreciated over the length of the leases.

The freehold depot is stated at fair value and is not depreciated.

Depreciation is provided on all other tangible fixed assets so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Leasehold Housing property - Straight line over length of lease
Plant and equipment - 15% per annum reducing balance
Leasehold depot - Straight line over 50 years
Vehicles and equipment - 25% per annum straight line
Solar panels - 5% per annum straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

Investments held as fixed assets are shown at cost less provision for impairment.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.14 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.15 Pensions

Retirement benefits to employees of the charity are provided by the Local Government Pension Scheme ("LGPS"), a defined benefit scheme.

The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each Balance Sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Page 18

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

Accrued solar panel income:

As a result of delays, initially caused by the pandemic, the financial statements include a provision of £126,000 (2020 : 100,000) being an estimate of the feed in tariff income due to the charity at the year end. This has been calculated in part from amounts received post year end with the balance of the provision estimated using a fixed monthly rate less an estimated allowance for equipment failure. As this income has not yet been collected in full, the actual income received will differ from the estimated amount provided in the financial statements.

Page 19

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. Income from donations and legacies

Unrestricted
funds
2021
£
Government grants
-
Total 2020
10,000
Income from charitable activities
Unrestricted
funds
2021
£
Income from charitable activities - Maintenance
contributions
1,151,371
Total 2020
1,154,097		 Total
funds
2021
£
-
10,000
Total
funds
2021
£
1,151,371
1,154,097		 Total
funds
2020
£
10,000
Total
funds
2020
£
1,154,097

5. Income from charitable activities

Page 20

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2021
£
Solar panel income
84,487
Total 2020
115,535		 Total
funds
2021
£
84,487
115,535		 Total
funds
2020
£
115,535

7. Investment income

Unrestricted
funds
2021
£
Office rent received
4,000
Income from investments
3,862
Investment income - cash deposits
60
7,922
Total 2020
4,837		 Total
funds
2021
£
4,000
3,862
60
7,922
4,837		 Total
funds
2020
£
-
3,770
1,067
4,837

Page 21

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. Expenditure on raising funds

Other trading expenses

Unrestricted
funds
2021
£
Loan interest and consultancy - solar panels
35,640
Depreciation - solar panels
56,047
91,687
Total 2020
93,086		 Total
funds
2021
£
35,640
56,047
91,687
93,086		 Total
funds
2020
£
37,039
56,047
93,086

9. Investment management costs

Unrestricted
funds
2021
£
Investment management fees
1,713
Total 2020
1,443		 Total
funds
2021
£
1,713
1,443		 Total
funds
2020
£
1,443

Page 22

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Direct costs - Provision of housing services
1,146,181
Total 2020
999,313		 Total
2021
£
1,146,181
999,313		 Total
2020
£
999,313

11. Analysis of expenditure by activities

Direct costs - Provision of housing services
Total 2020		 Activities
undertaken
directly
2021
£
924,749
799,734		 Support
costs
2021
£
221,432
199,579		 Total
funds
2021
£
1,146,181
999,313		 Total
funds
2020
£
999,313

Page 23

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Analysis of expenditure by activities (continued)

Analysis of direct costs

Provision of
Housing
services
2021
£
Pension finance costs
6,000
Staff costs
365,678
Depreciation - housing properties, solar panels and vehicles
123,263
Repairs and maintenance
364,701
Insurance
43,313
Motor expenses
21,794
924,749
Total 2020
799,734		 Total
funds
2021
£
6,000
365,678
123,263
364,701
43,313
21,794
924,749
799,734		 Total
funds
2020
£
4,000
301,849
132,783
300,998
42,098
18,006
799,734

Analysis of support costs

Provision of
Housing
services
2021
£
Staff costs
130,024
Depreciation
5,498
Insurance
3,860
Premises costs
17,019
General administrative expenses
17,043
Legal and professional costs
8,117
Loan interest
28,441
Motor expenses
690
Ex gratia payments
-
Governance costs
10,740
221,432
Total 2020
199,579		 Total
funds
2021
£
130,024
5,498
3,860
17,019
17,043
8,117
28,441
690
-
10,740
221,432
199,579		 Total
funds
2020
£
113,615
5,504
3,752
14,230
17,216
1,964
30,438
480
2,000
10,380
199,579

Page 24

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Governance costs above comprise fees in respect of current auditor - see note 12 below for full details.

12. Auditors' remuneration

Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above
Fees payable to the Charity auditor's associates in respect of:
All non-audit services not included above
Staff costs
Wages and salaries
Social security costs
Operating costs of defined benefit pension schemes
Other employee benefits		 2021
£
6,335
1,000
3,405
2021
£
305,307
28,395
162,000
-
495,702		 2020
£
6,120
4,260
-
2020
£
288,333
26,131
101,000
2,000
417,464

13. Staff costs

Other employee benefits above comprised ex gratia payments paid to one employee.

The average number of persons employed by the Charity during the year was as follows:

Administration
Other		 2021
No.
2
6
8		 2020
No.
2
6
8

Page 25

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

The trustees consider key management personnel to be the trustees and senior management of the charity. Remuneration and benefits received by the senior management (as distinct from trustees who are volunteers) including employer's national insurance and pension contributions amounted to £71,733 (2020: £71,262) for the year.

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .

15. Tangible fixed assets

Cost or valuation
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Housing
property
£
32,877,047
32,877,047
761,710
60,617
822,327
32,054,720
32,115,337		 Office and
depot
£
340,793
340,793
68,584
5,066
73,650
267,143
272,209		 Vehicles
and
equipment
£
106,544
106,544
93,578
7,032
100,610
5,934
12,966		 Other fixed
assets
£
2,241,881
2,241,881
672,562
112,093
784,655
1,457,226
1,569,319		 Total
£
35,566,265
35,566,265
1,596,434
184,808
1,781,242
33,785,023
33,969,831

Page 26

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Tangible fixed assets (continued)

Housing properties were revalued at 31 December 2018 by the trustees on an open market basis to establish a deemed cost on transition to FRS102.

The historical cost of assets included at valuation amounts to £412,571 (2020: £412,571).

Historically housing properties have been donated at £nil to the Association.

All properties are registered in the names of the trustees on behalf of Northumberland Aged Miners Housing Association. A review is currently being undertaken to ensure that properties which are still registered in the name of former trustees on behalf the Association are legally transferred to the current trustees.

16. Fixed asset investments

Cost or valuation
At 1 January 2021
Additions
Disposals
Revaluations
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
17.
Stocks
Finished goods and goods for resale		 Listed
investments
£
339,682
11,107
(13,302)
43,343
380,830
380,830
339,682		 Other fixed
asset
investments
£
1,726
1,270
-
-
2,996
2,996
1,726
2021
£
10,500		 Total
£
341,408
12,377
(13,302)
43,343
383,826
383,826
341,408
2020
£
8,871

Page 27

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Debtors

Due within one year
Maintenance contribution debtors
Other debtors
Prepayments and accrued income		 2021
£
9,360
9,452
258,678
277,490		 2020
£
12,600
13,654
229,116
255,370

19. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
108,885
41,380
72,144
51,766
274,175		 2020
£
111,516
14,893
68,015
74,250
268,674

Other creditors includes £57,276 (2020: £52,220) rent bonds collected from new tenants. These bonds will be repaid or realised once tenants no longer occupy their property.

Page 28

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

20. Creditors: Amounts falling due after more than one year

Other loans
Other creditors		 2021
£
1,438,499
22,751
1,461,250		 2020
£
1,550,687
22,751
1,573,438

Other creditors comprises pension strain payment due to former employee of the charity which is being repaid over 48 months. Subsequent to the award being made, the charity was successful in appealing against it, and therefore the above amount may not be paid. However, it is not yet known whether the former employee will appeal against the decision and therefore the provision has not been reversed until such time as the overall outcome is certain. In addition to the above amount there is also an additional amount of £12,409 disclosed in creditors due within one year.

Included within the above are amounts falling due as follows:

Between one and two years
Other loans
Between two and five years
Other loans
Over five years
Other loans		 2021
£
112,188
336,565
989,746		 2020
£
112,188
336,565
1,101,934

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments 2021
£
989,746
989,746		 2020
£
1,101,934
1,101,934

The loan is secured on housing properties with a net book value of £7,750,000 (2020: £7,750,000).

Page 29

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. Financial instruments

2021 2020
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 1,324,853 1,249,151

Financial assets measured at fair value through income and expenditure comprise bank balances and quoted investments.

22. Statement of funds

Statement of funds - current year

Balance at 1
January
2021
£
Unrestricted
funds
Designated
funds
Designated fixed
asset fund
33,969,831
General funds
General fund
(328,720)
Pension reserve
(537,000)
(865,720)
Total
Unrestricted
funds
33,104,111		 Income
£
Expenditure
£
-
(184,808)
1,243,780
(886,773)
-
(168,000)
1,243,780
(1,054,773)
1,243,780
(1,239,581)		 Transfers
in/out
£
-
(195,000)
195,000
-
-		 Gains/
(Losses)
£
-
44,131
470,000
514,131
514,131		 Balance at
31
December
2021
£
33,785,023
(122,582)
(40,000)
(162,582)
33,622,441

Page 30

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

22. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Designated fixed
asset fund
General funds
General fund
Pension reserve
Total
Unrestricted
funds		 Balance at
1 January
2020
£
34,164,165
(707,469)
(280,000)
(987,469)
33,176,696		 Income
£
-
1,284,469
-
1,284,469
1,284,469		 Expenditure
£
(194,334)
(794,508)
(105,000)
(899,508)
(1,093,842)		 Transfers
in/out
£
-
(142,000)
142,000
-
-		 Gains/
(Losses)
£
-
30,788
(294,000)
(263,212)
(263,212)		 Balance at
31
December
2020
£
33,969,831
(328,720)
(537,000)
(865,720)
33,104,111

23. Summary of funds

Summary of funds - current year

Balance at 1
January
2021
£
Designated
funds
33,969,831
General funds
(865,720)
33,104,111		 Income
£
Expenditure
£
-
(184,808)
1,243,780
(1,054,773)
1,243,780
(1,239,581)		 Transfers
in/out
£
-
-
-		 Gains/
(Losses)
£
-
514,131
514,131		 Balance at
31
December
2021
£
33,785,023
(162,582)
33,622,441

Page 31

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23. Summary of funds (continued)

Summary of funds - prior year

Designated
funds
General funds		 Balance at
1 January
2020
£
34,164,165
(987,469)
33,176,696		 Income
£
-
1,284,469
1,284,469		 Expenditure
£
(194,334)
(899,508)
(1,093,842)		 Transfers
in/out
£
-
-
-		 Gains/
(Losses)
£
-
(263,212)
(263,212)		 Balance at
31
December
2020
£
33,969,831
(865,720)
33,104,111

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
33,785,023
Fixed asset investments
383,826
Current assets
1,229,017
Creditors due within one year
(274,175)
Creditors due in more than one year
(1,461,250)
Provisions for liabilities and charges
(40,000)
Total
33,622,441		 Total
funds
2021
£
33,785,023
383,826
1,229,017
(274,175)
(1,461,250)
(40,000)
33,622,441

Page 32

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

24. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total		 Unrestricted
funds
2020
£
33,969,831
341,408
1,171,984
(268,674)
(1,573,438)
(537,000)
33,104,111		 Total
funds
2020
£
33,969,831
341,408
1,171,984
(268,674)
(1,573,438)
(537,000)
33,104,111

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses on investments
Dividends, interests and rents from investments
Increase in stocks
Increase in debtors
Increase in creditors
Loan interest
Defined benefit pension scheme finance cost
Defined benefit pension scheme cost less contributions payable
Net cash provided by operating activities		 2021
£
48,330
184,808
(44,131)
(7,922)
(1,629)
(22,120)
8,132
56,881
6,000
(33,000)
195,349		 2020
£
221,415
194,334
(30,788)
(4,837)
(1,771)
(162,523)
19,995
60,877
4,000
(41,000)
259,702

Page 33

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

26. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
941,027
941,027		 2020
£
907,743
907,743

27. Analysis of changes in net debt

At 1 Other non- At 31
January cash December
2021 Cash flows changes 2021
£ £ £ £
Cash at bank and in hand 907,743 33,284 - 941,027
Debt due within 1 year (111,516) 114,819 (112,188) (108,885)
Debt due after 1 year (1,550,687) - 112,188 (1,438,499)

28. Pension commitments

The Charity operates a defined benefit pension scheme.

The Association is one of several employing bodies included within the Local Government Pension Scheme (LGPS).

The LGPS is a funded defined benefit scheme with the assets held in separate trustee administered funds. Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. A full actuarial valuation of the Tyne and Wear Pension Fund was carried out on 31 March 2019.

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 At 31
December December
2021 2020
% %
Discount rate 2.0 1.4
Future salary increases 4.3 3.9
Pension increases 2.8 2.4
CPI inflation 2.8 2.4

Page 34

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

28. Pension commitments (continued)

At 31 At 31
December December
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.9 21.8
- at 65 for a male aged 45 now 23.6 23.5
- for a female aged 65 now 25.1 25
- at 65 for a female aged 45 now 26.9 26.8

The Charity's share of the assets in the scheme was:

Equities
Gilts
Corporate bonds
Property
Cash and other liquid assets
Other
Total fair value of assets		 At 31
December
2021
£
2,135,000
76,000
732,000
303,000
148,000
398,000
3,792,000		 At 31
December
2020
£
1,820,000
72,000
649,000
259,000
131,000
347,000
3,278,000

The actual return on scheme assets was £381,000 (2020 - £130,000) .

The amounts recognised in the Statement of financial activities are as follows:

Current service cost
Interest income
Interest cost
Total amount recognised in the Statement of financial activities		 2021
£
162,000
(47,000)
53,000
168,000		 2020
£
101,000
(63,000)
67,000
105,000

Page 35

NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

28. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Current service cost
Interest cost
Contributions by scheme participants
Actuarial (gains)/losses
Benefits paid
Closing defined benefit obligation		 2021
£
3,815,000
162,000
53,000
23,000
(136,000)
(85,000)
3,832,000		 2020
£
3,399,000
101,000
67,000
16,000
361,000
(129,000)
3,815,000

Movements in the fair value of the Charity's share of scheme assets were as follows:

Opening fair value of scheme assets
Expected return on assets
Actuarial gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2021
£
3,278,000
47,000
334,000
195,000
23,000
(85,000)
3,792,000		 2020
£
3,119,000
63,000
67,000
142,000
16,000
(129,000)
3,278,000

29. Related party transactions

During the year, the constituency office staff of Ian Lavery MP (a trustee of the charity), occupied the first floor of the Charity's 7 Esther Court offices. His office was responsible for paying half of the running costs of the property and a charge of £1,912 has been invoiced for the year ended 31 December 2021 following the year end. An amount, of £1,971 charged for the previous year was paid in the year ended 31 December 2022.

After obtaining appropriate landlord consents, etc. a new lease was entered into with effect from 1 June 2021, sub letting the first floor, for use as the constituency office of Ian Lavery MP. Rental income amounting to £4,000 was received from Ian Lavery in the year ended 31 December 2021.

Three trustees, who qualify to be residents, occupied residential properties of the charity on consistent terms as all other residents.

Page 36