**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. 

Page 2 



**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. 

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**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. 

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**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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. 

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: 

- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. 

## **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: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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: 

- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **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. 

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**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: 

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- we identified the laws and regulations applicable to the Charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the sector; 

- we focused on specific laws and regulations which we consider may have a direct material effect on the financial statements or the operations of the Charity, including the Charities Act 2011 et seq., the Charities (Protection and Social Investment) Act 2016, the Trustees Acts 1925 and 2000 and Charity Commission regulations; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 

- we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

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

- making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

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

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; and 

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes to the financial statements are indicative of potential bias. 

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

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; 

- enquiring of management as to actual and potential litigation and claims; and 

- reviewing correspondence with HMRC, relevant regulators and the Charity’s legal advisors. 

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**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**<br>**Income from:**<br>Donations and legacies<br>4<br>Charitable activities<br>5<br>Other trading activities<br>6<br>Investments<br>7<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>8,9<br>Charitable activities<br>10<br>**Total expenditure**<br>**Net (expenditure)/income before net gains on**<br>**investments**<br>Net gains on investments<br>**Net movement in funds before other recognised**<br>**gains/(losses)**<br>**Other recognised gains/(losses):**<br>Actuarial gains/(losses) on defined benefit pension<br>schemes<br>28<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>**-**<br>**1,151,371**<br>**84,487**<br>**7,922**<br>**1,243,780**<br>**93,400**<br>**1,146,181**<br>**1,239,581**<br>**4,199**<br>**44,131**<br>**48,330**<br>**470,000**<br>**518,330**<br>**33,104,111**<br>**518,330**<br>**33,622,441**|**Total**<br>**funds**<br>**2021**<br>**£**<br>**-**<br>**1,151,371**<br>**84,487**<br>**7,922**<br>**1,243,780**<br>**93,400**<br>**1,146,181**<br>**1,239,581**<br>**4,199**<br>**44,131**<br>**48,330**<br>**470,000**<br>**518,330**<br>**33,104,111**<br>**518,330**<br>**33,622,441**|_Total_<br>_funds_<br>_2020_<br>_£_<br>_10,000_<br>_1,154,097_<br>_115,535_<br>_4,837_<br>_1,284,469_<br>_94,529_<br>_999,313_<br>_1,093,842_<br>_190,627_<br>_30,788_<br>_221,415_<br>_(294,000)_<br>_(72,585)_<br>_33,176,696_<br>_(72,585)_<br>_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. 

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**NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION** 

## **BALANCE SHEET AS AT 31 DECEMBER 2021** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>15<br>Investments<br>16<br>**Current assets**<br>Stocks<br>17<br>Debtors<br>18<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>19<br>**Net current assets**<br>**Total assets less current liabilities**<br>Creditors: amounts falling due after more<br>than one year<br>20<br>**Net assets excluding pension liability**<br>Defined benefit pension scheme liability<br>28<br>**Total net assets**|**10,500**<br>**277,490**<br>**941,027**<br>**1,229,017**<br>**(274,175)**|**2021**<br>**£**<br>**33,785,023**<br>**383,826**<br>**34,168,849**<br>**954,842**<br>**35,123,691**<br>**(1,461,250)**<br>**33,662,441**<br>**(40,000)**<br>**33,622,441**|_8,871_<br>_255,370_<br>_907,743_<br>_1,171,984_<br>_(268,674)_|_2020_<br>_£_<br>_33,969,831_<br>_341,408_<br>_34,311,239_<br>_903,310_<br>_35,214,549_<br>_(1,573,438)_<br>_33,641,111_<br>_(537,000)_<br>_33,104,111_|
|---|---|---|---|---|



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**NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION** 

## **BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021** 

|**Note**<br>**Charity funds**<br>Unrestricted funds<br>Unrestricted funds excluding pension asset<br>22<br>Pension reserve<br>22<br>Total unrestricted funds<br>22<br>**Total funds**|**33,662,441**<br>**(40,000)**|**2021**<br>**£**<br>**33,622,441**<br>**33,622,441**|_33,641,111_<br>_(537,000)_|_2020_<br>_£_<br>_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. 

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**NORTHUMBERLAND AGED MINEWORKERS' HOMES ASSOCIATION** 

## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**Cash flows from operating activities**<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Dividends, interests and rents from investments<br>Proceeds from sale of investments<br>Purchase of investments<br>**Net cash provided by investing activities**<br>**Cash flows from financing activities**<br>Repayments of borrowing<br>**Net cash used in financing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>The notes on pages 15 to 36 form part of these financial statements|**2021**<br>**£**<br>**195,349**<br>**7,922**<br>**14,090**<br>**(12,377)**<br>**9,635**<br>**(171,700)**<br>**(171,700)**<br>**33,284**<br>**907,743**<br>**941,027**|_2020_<br>_£_<br>_259,702_<br>_4,837_<br>_10,439_<br>_(8,996)_<br>**6,280**<br>_(172,134)_<br>**(172,134)**<br>**93,848**<br>_813,895_<br>_907,743_|
|---|---|---|



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**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. 

Page 15 



**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. 

Page 16 



**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. 

Page 17 



**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**<br>**funds**<br>**2021**<br>**£**<br>Government grants<br>-<br>_Total 2020_<br>_10,000_<br>**Income from charitable activities**<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Income from charitable activities - Maintenance<br>contributions<br>1,151,371<br>_Total 2020_<br>_1,154,097_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**-**<br>_10,000_<br>**Total**<br>**funds**<br>**2021**<br>**£**<br>**1,151,371**<br>_1,154,097_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_10,000_|
|---|---|---|
|||_Total_<br>_funds_<br>_2020_<br>_£_<br>_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**<br>**funds**<br>**2021**<br>**£**<br>Solar panel income<br>84,487<br>_Total 2020_<br>_115,535_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**84,487**<br>_115,535_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_115,535_|
|---|---|---|
||||



## **7. Investment income** 

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Office rent received<br>4,000<br>Income from investments<br>3,862<br>Investment income - cash deposits<br>60<br>7,922<br>_Total 2020_<br>_4,837_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**4,000**<br>**3,862**<br>**60**<br>**7,922**<br>_4,837_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_-_<br>_3,770_<br>_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**<br>**funds**<br>**2021**<br>**£**<br>Loan interest and consultancy - solar panels<br>35,640<br>Depreciation - solar panels<br>56,047<br>91,687<br>_Total 2020_<br>_93,086_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**35,640**<br>**56,047**<br>**91,687**<br>_93,086_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_37,039_<br>_56,047_|
|---|---|---|
|||_93,086_|
||||



## **9. Investment management costs** 

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Investment management fees<br>1,713<br>_Total 2020_<br>_1,443_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**1,713**<br>_1,443_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_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**<br>**funds**<br>**2021**<br>**£**<br>Direct costs - Provision of housing services<br>1,146,181<br>_Total 2020_<br>_999,313_|**Total**<br>**2021**<br>**£**<br>**1,146,181**<br>_999,313_|_Total_<br>_2020_<br>_£_<br>_999,313_|
|---|---|---|
||||



## **11. Analysis of expenditure by activities** 

|Direct costs - Provision of housing services<br>_Total 2020_|**Activities**<br>**undertaken**<br>**directly**<br>**2021**<br>**£**<br>924,749<br>_799,734_|**Support**<br>**costs**<br>**2021**<br>**£**<br>221,432<br>_199,579_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**1,146,181**<br>_999,313_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_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**<br>**Housing**<br>**services**<br>**2021**<br>**£**<br>Pension finance costs<br>6,000<br>Staff costs<br>365,678<br>Depreciation - housing properties, solar panels and vehicles<br>123,263<br>Repairs and maintenance<br>364,701<br>Insurance<br>43,313<br>Motor expenses<br>21,794<br>924,749<br>_Total 2020_<br>_799,734_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**6,000**<br>**365,678**<br>**123,263**<br>**364,701**<br>**43,313**<br>**21,794**<br>**924,749**<br>_799,734_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_4,000_<br>_301,849_<br>_132,783_<br>_300,998_<br>_42,098_<br>_18,006_|
|---|---|---|
|||_799,734_|
||||



## **Analysis of support costs** 

|**Provision of**<br>**Housing**<br>**services**<br>**2021**<br>**£**<br>Staff costs<br>130,024<br>Depreciation<br>5,498<br>Insurance<br>3,860<br>Premises costs<br>17,019<br>General administrative expenses<br>17,043<br>Legal and professional costs<br>8,117<br>Loan interest<br>28,441<br>Motor expenses<br>690<br>Ex gratia payments<br>-<br>Governance costs<br>10,740<br>221,432<br>_Total 2020_<br>_199,579_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**130,024**<br>**5,498**<br>**3,860**<br>**17,019**<br>**17,043**<br>**8,117**<br>**28,441**<br>**690**<br>**-**<br>**10,740**<br>**221,432**<br>_199,579_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_113,615_<br>_5,504_<br>_3,752_<br>_14,230_<br>_17,216_<br>_1,964_<br>_30,438_<br>_480_<br>_2,000_<br>_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<br>accounts<br>Fees payable to the Charity's auditor in respect of:<br>All non-audit services not included above<br>Fees payable to the Charity auditor's associates in respect of:<br>All non-audit services not included above<br>**Staff costs**<br>Wages and salaries<br>Social security costs<br>Operating costs of defined benefit pension schemes<br>Other employee benefits|**2021**<br>**£**<br>**6,335**<br>**1,000**<br>**3,405**<br>**2021**<br>**£**<br>**305,307**<br>**28,395**<br>**162,000**<br>**-**<br>**495,702**|_2020_<br>_£_<br>_6,120_<br>_4,260_|
|---|---|---|
|||_-_|
|||_2020_<br>_£_<br>_288,333_<br>_26,131_<br>_101,000_<br>_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<br>Other|**2021**<br>**No.**<br>**2**<br>**6**<br>**8**|_2020_<br>_No._<br>_2_<br>_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**<br>At 1 January 2021<br>At 31 December 2021<br>**Depreciation**<br>At 1 January 2021<br>Charge for the year<br>At 31 December 2021<br>**Net book value**<br>At 31 December 2021<br>_At 31 December 2020_|**Housing**<br>**property**<br>**£**<br>**32,877,047**<br>**32,877,047**<br>**761,710**<br>**60,617**<br>**822,327**<br>**32,054,720**<br>_32,115,337_|**Office and**<br>**depot**<br>**£**<br>**340,793**<br>**340,793**<br>**68,584**<br>**5,066**<br>**73,650**<br>**267,143**<br>_272,209_|**Vehicles**<br>**and**<br>**equipment**<br>**£**<br>**106,544**<br>**106,544**<br>**93,578**<br>**7,032**<br>**100,610**<br>**5,934**<br>_12,966_|**Other fixed**<br>**assets**<br>**£**<br>**2,241,881**<br>**2,241,881**<br>**672,562**<br>**112,093**<br>**784,655**<br>**1,457,226**<br>_1,569,319_|**Total**<br>**£**<br>**35,566,265**|
|---|---|---|---|---|---|
||||||**35,566,265**|
||||||**1,596,434**<br>**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**<br>At 1 January 2021<br>Additions<br>Disposals<br>Revaluations<br>At 31 December 2021<br>**Net book value**<br>At 31 December 2021<br>_At 31 December 2020_<br>**17.**<br>**Stocks**<br>Finished goods and goods for resale|**Listed**<br>**investments**<br>**£**<br>**339,682**<br>**11,107**<br>**(13,302)**<br>**43,343**<br>**380,830**<br>**380,830**<br>_339,682_|**Other fixed**<br>**asset**<br>**investments**<br>**£**<br>**1,726**<br>**1,270**<br>**-**<br>**-**<br>**2,996**<br>**2,996**<br>_1,726_<br>**2021**<br>**£**<br>**10,500**|**Total**<br>**£**<br>**341,408**<br>**12,377**<br>**(13,302)**<br>**43,343**<br>**383,826**<br>**383,826**<br>_341,408_<br>_2020_<br>_£_<br>_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**<br>Maintenance contribution debtors<br>Other debtors<br>Prepayments and accrued income|**2021**<br>**£**<br>**9,360**<br>**9,452**<br>**258,678**<br>**277,490**|_2020_<br>_£_<br>_12,600_<br>_13,654_<br>_229,116_|
|---|---|---|
||||
|||_255,370_|



## **19. Creditors: Amounts falling due within one year** 

|Other loans<br>Trade creditors<br>Other creditors<br>Accruals and deferred income|**2021**<br>**£**<br>**108,885**<br>**41,380**<br>**72,144**<br>**51,766**<br>**274,175**|_2020_<br>_£_<br>_111,516_<br>_14,893_<br>_68,015_<br>_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<br>Other creditors|**2021**<br>**£**<br>**1,438,499**<br>**22,751**<br>**1,461,250**|_2020_<br>_£_<br>_1,550,687_<br>_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**<br>Other loans<br>**Between two and five years**<br>Other loans<br>**Over five years**<br>Other loans|**2021**<br>**£**<br>**112,188**<br>**336,565**<br>**989,746**|_2020_<br>_£_<br>_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**<br>**£**<br>**989,746**<br>**989,746**|_2020_<br>_£_<br>_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**<br>**January**<br>**2021**<br>**£**<br>**Unrestricted**<br>**funds**<br>**Designated**<br>**funds**<br>Designated fixed<br>asset fund<br>**33,969,831**<br>**General funds**<br>General fund<br>**(328,720)**<br>Pension reserve<br>**(537,000)**<br>**(865,720)**<br>**Total**<br>**Unrestricted**<br>**funds**<br>**33,104,111**|**Income**<br>**£**<br>**Expenditure**<br>**£**<br>**-**<br>**(184,808)**<br>**1,243,780**<br>**(886,773)**<br>**-**<br>**(168,000)**<br>**1,243,780**<br>**(1,054,773)**<br>**1,243,780**<br>**(1,239,581)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**(195,000)**<br>**195,000**<br>**-**<br>**-**|**Gains/**<br>**(Losses)**<br>**£**<br>**-**<br>**44,131**<br>**470,000**<br>**514,131**<br>**514,131**|**Balance at**<br>**31**<br>**December**<br>**2021**<br>**£**<br>**33,785,023**|
|---|---|---|---|---|
|||||**(122,582)**<br>**(40,000)**|
|||||**(162,582)**|
|||||**33,622,441**|



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**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**<br>**funds**<br>**Designated**<br>**funds**<br>Designated fixed<br>asset fund<br>**General funds**<br>General fund<br>Pension reserve<br>**Total**<br>**Unrestricted**<br>**funds**|_Balance at_<br>_1 January_<br>_2020_<br>_£_<br>_34,164,165_<br>_(707,469)_<br>_(280,000)_<br>_(987,469)_<br>_33,176,696_|_Income_<br>_£_<br>_-_<br>_1,284,469_<br>_-_<br>_1,284,469_<br>_1,284,469_|_Expenditure_<br>_£_<br>_(194,334)_<br>_(794,508)_<br>_(105,000)_<br>_(899,508)_<br>_(1,093,842)_|_Transfers_<br>_in/out_<br>_£_<br>_-_<br>_(142,000)_<br>_142,000_<br>_-_<br>_-_|_Gains/_<br>_(Losses)_<br>_£_<br>_-_<br>_30,788_<br>_(294,000)_<br>_(263,212)_<br>_(263,212)_|_Balance at_<br>_31_<br>_December_<br>_2020_<br>_£_<br>_33,969,831_<br>_(328,720)_<br>_(537,000)_<br>_(865,720)_<br>_33,104,111_|
|---|---|---|---|---|---|---|



## **23. Summary of funds** 

## **Summary of funds - current year** 

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



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**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<br>funds<br>General funds|_Balance at_<br>_1 January_<br>_2020_<br>_£_<br>_34,164,165_<br>_(987,469)_<br>_33,176,696_|_Income_<br>_£_<br>_-_<br>_1,284,469_<br>_1,284,469_|_Expenditure_<br>_£_<br>_(194,334)_<br>_(899,508)_<br>_(1,093,842)_|_Transfers_<br>_in/out_<br>_£_<br>_-_<br>_-_<br>_-_|_Gains/_<br>_(Losses)_<br>_£_<br>_-_<br>_(263,212)_<br>_(263,212)_|_Balance at_<br>_31_<br>_December_<br>_2020_<br>_£_<br>_33,969,831_<br>_(865,720)_<br>_33,104,111_|
|---|---|---|---|---|---|---|



## **24. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

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



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**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<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>Provisions for liabilities and charges<br>**Total**|_Unrestricted_<br>_funds_<br>_2020_<br>_£_<br>_33,969,831_<br>_341,408_<br>_1,171,984_<br>_(268,674)_<br>_(1,573,438)_<br>_(537,000)_<br>_33,104,111_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_33,969,831_<br>_341,408_<br>_1,171,984_<br>_(268,674)_<br>_(1,573,438)_<br>_(537,000)_<br>_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)<br>**Adjustments for:**<br>Depreciation charges<br>Losses on investments<br>Dividends, interests and rents from investments<br>Increase in stocks<br>Increase in debtors<br>Increase in creditors<br>Loan interest<br>Defined benefit pension scheme finance cost<br>Defined benefit pension scheme cost less contributions payable<br>**Net cash provided by operating activities**|**2021**<br>**£**<br>**48,330**<br>**184,808**<br>**(44,131)**<br>**(7,922)**<br>**(1,629)**<br>**(22,120)**<br>**8,132**<br>**56,881**<br>**6,000**<br>**(33,000)**<br>**195,349**|_2020_<br>_£_<br>_221,415_<br>_194,334_<br>_(30,788)_<br>_(4,837)_<br>_(1,771)_<br>_(162,523)_<br>_19,995_<br>_60,877_<br>_4,000_<br>_(41,000)_<br>_259,702_|
|---|---|---|



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**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<br>**Total cash and cash equivalents**|**2021**<br>**£**<br>**941,027**<br>**941,027**|_2020_<br>_£_<br>_907,743_<br>_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_|



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**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<br>Gilts<br>Corporate bonds<br>Property<br>Cash and other liquid assets<br>Other<br>**Total fair value of assets**|**At 31**<br>**December**<br>**2021**<br>**£**<br>**2,135,000**<br>**76,000**<br>**732,000**<br>**303,000**<br>**148,000**<br>**398,000**<br>**3,792,000**|_At 31_<br>_December_<br>_2020_<br>_£_<br>_1,820,000_<br>_72,000_<br>_649,000_<br>_259,000_<br>_131,000_<br>_347,000_<br>_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<br>Interest income<br>Interest cost<br>**Total amount recognised in the Statement of financial activities**|**2021**<br>**£**<br>**162,000**<br>**(47,000)**<br>**53,000**<br>**168,000**|_2020_<br>_£_<br>_101,000_<br>_(63,000)_<br>_67,000_<br>_105,000_|
|---|---|---|



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**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<br>Current service cost<br>Interest cost<br>Contributions by scheme participants<br>Actuarial (gains)/losses<br>Benefits paid<br>**Closing defined benefit obligation**|**2021**<br>**£**<br>**3,815,000**<br>**162,000**<br>**53,000**<br>**23,000**<br>**(136,000)**<br>**(85,000)**<br>**3,832,000**|_2020_<br>_£_<br>_3,399,000_<br>_101,000_<br>_67,000_<br>_16,000_<br>_361,000_<br>_(129,000)_<br>_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<br>Expected return on assets<br>Actuarial gains<br>Contributions by employer<br>Contributions by scheme participants<br>Benefits paid<br>**Closing fair value of scheme assets**|**2021**<br>**£**<br>**3,278,000**<br>**47,000**<br>**334,000**<br>**195,000**<br>**23,000**<br>**(85,000)**<br>**3,792,000**|_2020_<br>_£_<br>_3,119,000_<br>_63,000_<br>_67,000_<br>_142,000_<br>_16,000_<br>_(129,000)_<br>_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. 

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