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2021-03-31-accounts

Jane Cameron’s Old People’s Charity

Annual Report and Financial Statements Year Ended 31 March 2021

Registered with the Charity Commission Number 227487 Registered with the Regulator of Social Housing Number A1254

Annual Report and Financial Statements For the year ended 31 March 2021

Pages
Strategic Report 2-4
Report of the Board 5-6
Independent Auditor’s Report 7-9
Statement of Comprehensive Income 10
Statement of Financial Position 11
Statement of Changes in Reserves 12
Statement of Cash Flows 13
Notes forming part of the Financial Statements 14 – 25

Advisers and bankers

Clerk and Registered Office Bankers Auditor
Michelle Holt
The Heals Building Suites A&B
3rd floor 22 – 24 Torrington
Place
London
WC1E 7HJ		 Barclays Bank plc.
1 Churchill Place
Canary Wharf
London
E14 5HP		 BDO LLP
55 Baker street
London
W1U 7EU

1

Strategic Report For the year ended 31 March 2021

Structure, Governance and Management

Trustee

Anchor Hanover Group is the Corporate Trustee.

The Corporate Trustee receives no remuneration other than the Management Charges disclosed in note 3 and charges for other services provided as disclosed in note 18 of the notes to the Financial Statements.

Details of the membership, structure and policy for admitting new members to the Board of Anchor Hanover Group can be found in the annual report of the Association and on their website at www.anchorhanover.org.uk.

Code of Governance

The Board of the Corporate Trustee, Anchor Hanover Group (“Anchor Hanover”), has adopted the Financial Reporting Council’s UK Corporate Governance Code 2018 (the “UKCGC”) as its appropriate code of governance. The UKCGC is applied on a ‘comply or explain’ basis and the Board of Anchor Hanover assess their compliance with the code on an annual basis. A summary of this assessment can be found in Anchor Hanover’s Annual Report and Financial Statements 2020, pages 26 to 27.

Employees

The Charity has minimal employees as revealed in Note 4 to these accounts. The administration of the Charity is undertaken by employees of Anchor Hanover Group.

Risk management

The Board of the Corporate Trustee has examined the major strategic, business and operational risks which the Charity faces and confirms that systems and procedures, including an internal audit programme, are in place so as to mitigate the significant risks that the Charity may face.

Objectives and Activities

The governing instrument for this Charity is a Charity Commission Scheme dated 28 April 1966.

The areas of activity are the Parishes of Bishop Auckland, Darlington, Durham and Jarrow, in the North East of England. The Charity has 101 sheltered properties for the elderly.

The objective of the Charity is to provide accommodation for elderly persons who have been resident in the area of activity for at least one year.

Governance and Financial Viability Standard

The Corporate Trustee is Anchor Hanover Group a Private Registered Provider. The Board of Anchor Hanover Group has assessed that it complies with the Governance and Financial Viability Standard 2015, issued by the Regulator of Social Housing.

Achievements and Performance

The Charity receives funds from charges raised on residents in the form of service charges and rent. The service charges are raised to cover the cost of providing support to the residents in relation to the Estate Manager, maintenance of the grounds and the maintenance of equipment. Rents are charged to the residents in line with Government guidance and are used to cover maintenance of the properties in the year and to provide resources to meet cyclical and major repairs over a number of years.

Charitable and political contributions

No contributions were made in the financial year (2020: £Nil).

2

Strategic Report (continued) For the year ended 31 March 2021

Financial Review

The activities for the year are set out on page 10 in the Statement of Comprehensive Income. There is a surplus for the year £ 303,112 (2019/20: £112,092). This is mainly attributed to a gain for revaluation of current asset investments of £128,356 (2019/20 £76,101 loss).

Capital expenditure incurred in the year of £52,912 (2019/20 £443,121).

Plans for Future Periods

In line with the Charity’s objective to maintain the properties in good repair and in order to provide accommodation for rent, the Charity continues to review the fabric of the building via planned works programmes and stock condition surveys undertaken by Anchor Hanover Group. At this time there is no immediate significant expenditure required but this will be kept under annual review.

Principal risks and uncertainties

The principal uncertainty currently facing Jane Cameron’s Old People’s Charity relates to the impact of the Covid-19 pandemic. The board continue to monitor the pandemic, including UK Government advice, and acknowledge that the Trust faces a prolonged period of uncertainty. The evolving nature of the situation means that it is not possible to accurately quantify the financial impact; however, the Trust is in a good financial position in respect of managing this risk

Going concern

The World Health Organisation classed Covid-19 as a pandemic on 11 March 2020. Following that announcement, the UK Government introduced various measures to address the impact in the UK resulting in lockdown from 23 March 2020. The management team of Anchor Hanover moved swiftly to implement business continuity plans, and we thank our colleagues, our local authority partners, our key suppliers and development partners for working with us to make a proactive response during that period.

There was no impact on the financial position of the Trust in the year ended 31 March 2021.

The unprecedented impact of the Covid-19 pandemic on the UK and globally continued to overshadow the 2020/21 financial year for many organisations, as well as bringing concern and loss to families and communities across the country. Our sympathies continue to be with residents, their relatives and our colleagues who have lost loved ones as a result of the virus.

The UK continues to evolve in response to the challenges of Covid-19 and we continue to take proactive steps to ensure that we are well-positioned.

Whilst access to the properties to undertake maintenance was restricted during the earlier parts of the pandemic, access has commenced to all our properties and we expect to complete all essential maintenance works in line with expectations. Occupancy rates have remained constant throughout the pandemic. The low void rate together with significant short-term investments and revenue reserves provide assurance that the Trustees conclude that the Trust is a going concern for the next 12 months.

Value for money statement

As a corporate trust of the Anchor Hanover Group, (AHG) the strategic and operational management of the properties is fully aligned to the wider stock portfolio of AHG. As such the approach to VFM for the Corporate Trusts is fully integrated and therefore does not differ to the approach adopted for AHG. For a copy of the selfassessment we would therefore refer to that contained with Anchor Hanover’s annual report.

However, under the Value for Money Standard issued by the Regulator of Social Housing in April 2018 and the subsequent Value for Money Metrics Technical Note Guidance updated in May 2021, registered providers with a stock of less than 1,000 units are required to publish their VfM metrics. These are shown below and are in addition to the overall approach taken to achieving value for money by the Board of the Corporate Trustee.

3

Strategic Report (continued) For the year ended 31 March 2021

Metric 1 - Re-investment %

2021 2020
0% 38%

This metric looks at the investment in properties (existing stock as well as New Supply) as a percentage of the value of total properties held. For the Charity with its limited resources the focus is on maintaining its existing properties into the future. Planned and routine maintenance are a part of this and all, but the largest planned works are expended through the Statement of Comprehensive Income and charged to the cyclical and extraordinary repairs reserves.

2021 2020
Metric 2a – New supply delivered (social housing units) % 0% 0%
Metric 2b – New supply delivered (non-social housing units) % 0% 0%

This metric sets out the number of new social housing and non-social housing units that have been acquired or developed in the year as a proportion of total social housing units and non-social housing units owned at period end. The Charity’s focus is on maintaining its existing properties into the future and currently does not have the financial capacity to develop new properties.

2021 2020 Metric 3 - Gearing % 13% 13% This metric assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. The Charity has no loans or overdraft facilities. The decreasing negative ratio from 2019 to 2020 is due to the surplus generated during the year and the absence of any planned maintenance expenditure. The tangible fixed assets which the cash and loans are compared to is also relatively low as there is no cost associated with the original cost of the properties, only subsequent capitalised repairs expenditure.

2021
2020
Metric 4 – EBITDA MRI interest cover % 1375%
1488%
This metric is a key indicator for liquidity and investment capacity. It seeks to measure the level of surplus that
a registered provider generates, adjusted for amortisation and depreciation, compared to interest payable. The
Charity has no loans or overdraft facilities and, therefore, no interest payable.
2021 2020
Metric 5 – Headline social housing cost per year 3,538 3,238
This metric assesses the headline social housing cost per unit as defined by the Regulator. The increase in
the cost per unit for 2021 is due to the increased routine maintenance costs incurred in the year.
2021 2020
Metric 6a – Operating margin (social housing lettings) % 31% 33%
Metric 6b – Operating margin (overall) % 32% 33%

This metric demonstrates the profitability of operating assets before exceptional expenses are taken into account. Increasing margins are one way to improve the financial efficiency of a business. In assessing this ratio, it is important that consideration is given to registered providers’ purpose and objectives (including their social objectives). For the Charity the decrease in 2021 is due to the increased routine maintenance costs incurred.

Metric 7 – Return on Capital Employed (ROCE) %

2021 2020
8% 9%

This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources.

4

Report of the Board For the year ended 31 March 2021

Statement of the Board of the Corporate Trustee’s responsibilities in respect of the Annual Report and the Financial Statements

Under the trust deed and rules of the charity and charity law, the trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

The Board of the Corporate Trustee is required to act in accordance with the governing instrument of the Trust, within the framework of trust law. The Board of the Corporate Trustee is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the Trust at that time and enable the Board of the Corporate Trustee to ensure that its Financial Statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The Board of the Corporate Trustee has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities.

Awareness of relevant audit information

The Members of the Board of the Corporate Trustee who held office at the date of approval of this Report of the Board of the Corporate Trustee confirm that, so far as they are each aware, there is no relevant audit information of which the Trust’s auditor is unaware and each Member of the Board of the Corporate Trustee has taken all the steps that they ought to have taken as Members of the Board of the Corporate Trustee to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

5

Report of the Board (continued) For the year ended 31 March 2021

Auditor

BDO LLP has expressed its willingness to continue in office as auditor to Jane Cameron’s Old People’s Charity.

A resolution to reappoint BDO LLP as auditor will be approved by the Board of Anchor Hanover Group.

By order of the Board of the Corporate Trustee

Jane Ashcroft CBE Executive Board Member

Sarah Jones Executive Board Member

Michelle Holt Clerk

Date: 8 September 2021

6

Independent Auditor’s Report For the year ended 31 March 2021

INDEPENDENT AUDITOR’S REPORT TO TRUSTEES OF JANE CAMERON’S OLD PEOPLE’S CHARITY

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Jane Cameron’s Old People’s Charity (“the Charity”) for the year ended 31 March 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, 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).

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: the Strategic report and the Directors 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

7

Independent Auditor’s Report (continued) For the year ended 31 March 2021

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011, requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Board of the Corporate Trustee’s statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under 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 auditor’s 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

8

Independent Auditor’s Report (continued) For the year ended 31 March 2021

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Charities Act 2011. 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 auditor’s 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 the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Cliftlands BDO LLP, Statutory Auditor London, UK

10 September 2021

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

9

Statement of Comprehensive Income For the year ended 31 March 2021

Note
Turnover
2
Operating expenditure
3
Operating surplus
Interest receivable and similar income
5
Interest payable and similar charges
6
Surplus on ordinary activities
(Deficit)/surplus on revaluation of current asset investments
11
Total comprehensive income for the year		 2021
2020
£
£
599,489
591,886
(408,977)
(391,476)
————
————
190,512
200,410
925
4,998
(16,681)
(17,215)
————
————
174,756
188,193
128,356
(76,101)
————
————
303,112
112,092
~~————~~
~~————~~

There is no material difference between the surplus for the year as stated above and its historical cost equivalent.

All amounts relate to continuing activities.

The notes on pages 14 to 25 form part of these Financial Statements.

10

Statement of Financial Position For the year ended 31 March 2021

2021 2021 2020 2020
Note £ £ £ £
Fixed assets
Housing properties 9 1,054,576 1,107,111
Other fixed assets 9 83,909 35,156
———— ————
1,138,485 1,142,267
Current assets
Trade and other debtors 10 50,834 57,409
Short term investment 11 1,427,085 1,005,811
Cash at bank and in hand 12 192 333
Less Creditors: amounts falling due within one
year 13 (172,517) (51,477)
———— ————
Net current assets 1,305,594 1,012,076
———— ————
Total assets less current liabilities 2,444,079 2,154,343
Creditors
Amounts falling due after one year 14 (157,558) (170,934)
———— ————
2,286,521
~~————~~		 1,983,409
~~————~~
Capital and reserves
Revenue reserves 1,759,989 1,432,257
Designated reserves: 526,532 551,152
———— ————
2,286,521
~~————~~		 1,983,409
~~————~~

The notes on pages 14 to 25 form part of these Financial Statements.

The Financial Statements were approved for issue by the Corporate Trustee, Anchor Hanover Group on 8 September 2021 and were signed by:

Jane Ashcroft CBE Executive Board Member

Sarah Jones Executive Board Member

Michelle Holt Clerk

Registered with the Charity Commission Number 227487

11

Statement of Changes in Reserves For the year ended 31 March 2021

Extraordinary Extraordinary Cyclical
Revenue Renewals Repairs Maintenance Total
Reserves Reserve Reserve Reserve Reserves
£ £ £ £ £
At 1 April 2019 1,346,489 191,023 62,600 271,205 1,871,317
Transfers (to)/from other reserves (26,324) 11,419 2,785 12,120 -
Surplus in year 112,092 - - - 112,092
———— ———— ———— ———— ————
At 31 March 2020 1,432,257 202,442 65,385 283,325 1,983,409
Transfers (to)/from other reserves 24,620 11,033 (47,773) 12,120 -
Surplus in year 303,112 - - - 303,112
———— ———— ———— ———— ————
At 31 March 2021 1,759,989 213,475 17,612 295,445 2,286,521
———— ———— ———— ———— ————

The notes on pages 14 to 25 form part of these Financial Statements.

12

Statement of Cash Flows For the year ended 31 March 2021

Cash flow from operating activities
Operating surplus for the year
Depreciation of tangible fixed assets
Amortisation of capital grant
(Increase) / decrease in trade and other debtors
(Decrease) / Increase in trade and other creditors
Cash flow from investing activities
Purchase of tangible fixed assets
Purchase of investments
Interest received
Fair Value Investments
Cash flow from investing activities
Interest paid
Repayment of borrowings
Net change in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
Analysis of cash and cash equivalents
Cash in hand
Monies on deposit
Total cash and cash equivalents		 2021
2020
£
£
190,512
200,410
56,694
59,242
(5,997)
(5,998)
6,575
(4,053)
119,557
(30,410)
————
————
367,341
219,190
(52,912)
(408,615)
-
-
925
4,999
-
-
————
————
315,354
(184,426)
(16,681)
(17,215)
(5,895)
(5,361)
————
————
292,778
(207,002)
~~————~~
~~————~~
555,915
762,917
848,693
555,915
————
————
292,778
(207,002)
~~————~~
~~————~~
192
333
848,501
555,582
————
————
848,693
555,915
~~————~~
~~————~~

The notes on pages 14 to 25 form part of these Financial Statements.

13

Notes forming part of the Financial Statements For the year ended 31 March 2021

1(a) Accounting policies

General information

The Charity provides housing to elderly people. The Charity is a public benefit entity and a registered with the both the Regulator of Social Housing – registration number A1254 and Charities Commission in the United Kingdom - registration number is 227487. The registered office is The Heals Building Suites, A & B 3rd floor, 22 – 24 Torrington Place, London, WC1E 7HJ.

The Financial Statements have been prepared in accordance with Financial Reporting Standard 102 – the financial reporting standard applicable in the UK and Republic of Ireland (FRS102), the Statement of Recommended Practice: Accounting by Registered Social Landlords Update 2018 (SORP), the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Basis of accounting

The Financial Statements are prepared on the historic cost and accruals basis of accounting, as modified to include the fair value of financial instruments and on the basis of going concern. The Financial Statements are presented in Sterling (£).

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Financial Statements.

Employees

The Charity has minimal employees as revealed in Note 4. The administration of the Charity is undertaken by employees of Anchor Hanover Group.

Going concern

The Charity’s business activities and factors that are likely to affect its plans for future periods are set out in the Strategic Report. The Charity has in place adequate unrestricted reserves and resources to fund its financial obligations as they fall due and its day to day operations.

On this basis, the Corporate Trustee has a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and Financial Statements are signed. For this reason, the Charity has adopted the going concern basis in preparing its Financial Statements.

Turnover

Turnover represents rental income from licensees and service charges receivable and turnover is recognised when the Charity is entitled to it. Rental income and service charges receivable are shown net of voids. Void losses are only recognised where the properties are available for letting.

Revaluation of current asset investments

Current assets investments are stated at market value. Any unrealised surplus or deficit arising on revaluation of the investments is recognised in the Statement of Comprehensive Income. The aggregate realised surplus or deficit arising on the sale of investments is reflected in the Statement of Comprehensive Income.

14

Notes forming part of the Financial Statements For the year ended 31 March 2021

1(a) Accounting policies (continued)

Designated reserves

The Charity sets aside a reserve for building repairs and maintenance in accordance with a planned programme of work. This includes external painting, re-painting, repairs and internal decoration of common parts and the estate manager’s accommodation.

Fixed assets

Fixed assets are stated using the cost model at cost less cumulative depreciation less impairment. Fixed assets include housing properties held for social benefit purposes and scheme equipment.

Housing properties are principally properties available for rent and shared ownership properties. Housing properties are stated at cost less accumulated depreciation and impairment. Where housing properties are acquired from third parties the cost is their purchase price together with any costs of acquisition, improvement and interest payable.

Subsequent expenditure to housing properties

Works to existing properties which replace a component that has been identified separately for depreciation purposes, along with those works that result in enhancing the economic benefits of the properties, are capitalised as improvements. Where a component is replaced the cost and related depreciation are eliminated from tangible fixed assets. Economic benefits are enhanced if work performed results in an increase in rental income, a reduction in future maintenance costs or a significant extension to the useful economic life of a property. Shared ownership properties are split between current and non-current assets based on the anticipated proportion to be a first tranche sale with the first tranche proportion recognised as a current asset.

Scheme equipment is shown at cost less cumulative depreciation.

Depreciation

Freehold land is not depreciated.

Under FRS102, housing properties are required to be depreciated from the latest of completion date and acquisition date. The Charity has elected to depreciate historic cost over a period of 50 years from the applicable date.

Using component costing principles housing properties are divided into components which are depreciated at the following annual rates:

Component Life (Years) Depreciation
Building structure, roofing, drainage, roadways and footpaths 50 2.0%
Doors and windows 30 3.3%
Kitchens and bathrooms 25 4.0%
Heating boilers 15 6.6%
Scheme equipment is depreciated at varying annual rates as follows:
Component Life (Years) Depreciation
Lifts cars 30 3.3%
Security, heating, aerials and communal kitchen equipment 20 5.0%
Warden alarm, door entry and lift motors 15 6.6%
Other shared areas 10 10.0%
Cleaning equipment 5 20.0%
Other scheme equipment 4 25.0%

15

Notes forming part of the Financial Statements For the year ended 31 March 2021

1(a) Accounting policies (continued)

Social Housing Grant

Social Housing Grant (SHG) is a capital grant made to the Charity towards the cost of acquiring and/or building housing for rent or sale. Under shared ownership arrangements, Social Housing Grant is received from Homes England (HE) and the Greater London Authority (GLA) on a basis related to cost but varying according to area and type of scheme.

Social Housing Grant is included in Creditors: amounts falling due after more than one year in the Statement of Financial Position and is amortised annually to the Statement of Comprehensive Income over the expected useful lives of the assets to which they relate or in periods in which the related costs are incurred. The accumulated amortised government grants represent contingent liabilities and materialises when the relevant property to which the amortised grant ceases to be used for social housing purposes usually due to disposal of the housing asset.

Where grant is received on items treated as revenue expenditure, it is treated as revenue grant and is recognised as other income in the Statement of Comprehensive Income when the performance conditions have been met.

Grants are usually repayable unless formally abated, waived or recycled. Therefore, they may be repayable in certain circumstances, primarily the sale of property. This can be the case even where the grant has been treated as a revenue grant for accounting purposes.

Financial instruments - Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors / creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

In line with FRS 102 section 34; the Charity as a public benefit entity, has accounted for as concessionary loans all debtors or creditors that would have been classified as financing transactions such as deferred payment arrangement and are therefore being carried in the Statement of Financial Position at amortised cost.

Concessionary loans are financing arrangements between a public benefit entity such as the Charity and another party at nil percent or at below market rate of interest that are not repayable on demand and are for the purposes of furthering the objectives of the public benefit entity.

Short-term investments

Investments made by the Jane Cameron Old People’s Charity are a combination of short-term bank deposits and fund investments managed by specialist managers and provided for non profit investors.

The short-term bank deposits are classified as basic and recognised at amortised cost using an effective interest rate.

The fund investments are classified as complex instruments and recognised at market value. Market value is based on a publicly available price. Gains and losses on revaluation of fund investments are included in the Statement of Comprehensive Income.

Impairment of debtors

Provision is made for the impairment of current rent debtors when the debt is overdue by 90 days or more. The provision is for 100% of the amount overdue. Provision for the debts of former tenants is provided at 100%.

Sales ledger debts aged 3-5 months are provided at 10% of the amount due. Those more than 6 months old are provided at 25%. After this time a decision will be made concerning the write-off of the debt.

16

Notes forming part of the Financial Statements For the year ended 31 March 2021

1(a) Accounting policies (continued)

Other long-term creditors

Other long-term creditors include the costs of arranging long-term funding and premiums received on the issue of bonds. These amounts are amortised over the period of the underlying financial instrument. Also included in Other long-term creditors is the unamortised element of the social housing grant less an amount due for amortisation in the following year.

Cash and cash equivalents

Cash and cash equivalents comprise of cash balances and short-term investments, which can be liquidated at short notice with no loss of capital. Bank overdrafts that are repayable on demand and form an integral part of the Charity’s cash management are included as a component of cash and cash equivalents for the purpose of the cash flow statement.

1(b) Judgements and Accounting estimates

The preparation of the Financial Statements requires trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the Financial Statements;

Classification of housing properties

The Charity has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the Charity has considered if the asset is held for social benefit or to earn commercial rentals. The Charity determined that its housing portfolio is held for social benefit purposes and is therefore accounted under FRS 102 section 17.

Provision for bad and doubtful debts

Provisions for bad and doubtful debts are calculated based on average collection rate by amount overdue. The Trustee makes judgements about the recoverability of debtors and the bad debt provision rate to apply to each specific debtor based on recoverability risk of the debtor.

Determining whether a debt instrument satisfies the requirement to be treated as basic

Judgement is required to determine whether a debt instruments satisfies the requirements in FRS 102 Paragraph 11.9 to be treated as basic. For debt instruments to be classified as basic financial instruments the interest must be a positive amount or positive rate, at market rates. They should not be index linked excluding RPI and the lender cannot unilaterally amend interest rates. Debt instruments are utilised to provide long term funding for the Charity’s operations and not for speculative trading. Facilities with twoway break clauses are judged to be basic.

17

Notes forming part of the Financial Statements For the year ended 31 March 2021

2 Particulars of turnover, operating costs and operating surplus

2021
Operating Operating
Turnover costs surplus
£ £ £
Social housing activities:
Housing accommodation (see note 3) 593,492 (408,977) 184,515
Amortisation of capital grant 5,997 - 5,997
———— ———— ————
599,489
~~————~~		 (408,977)
~~————~~		 190,512
~~————~~

2020
Operating Operating
Turnover costs surplus
£ £ £
Social housing activities:
Housing accommodation (see note 3) 585,889 (391,476) 194,413
Amortisation of capital grant 5,997 - 5,997
———— ———— ————
591,886
~~————~~		 (391,476)
~~————~~		 200,410
~~————~~

18

Notes forming part of the Financial Statements For the year ended 31 March 2021

3 Particulars of income and expenditure from social housing lettings

Income from lettings
Rent receivable net of identifiable service charges and rent
losses from voids
Service charge income
Net rental income
Other property income
Turnover from social housing lettings
Expenditure on letting activities
Service charge costs
Management
Bad debts written off and movement in provision
Routine maintenance
Major repairs expenditure
Depreciation of housing properties
Other costs
Operating costs on social housing lettings
Operating surplus on social housing lettings
Rent losses from voids		 2021
2020
£
£
478,467
473,496
112,975
109,691
————
————
591,442
583,187
2,050
2,702
————
————
593,492
585,889
~~————~~
~~————~~
(102,719)
(99,182)
(108,841)
(107,152)
(2,843)
(2,699)
(75,310)
(69,774)
(59,893)
(36,175)
(51,600)
(66,445)
(7,771)
(12,049)
————
————
(408,977)
(391,476)
~~————~~
~~————~~
184,515
194,413
~~————~~
~~————~~
(34,064)
(26,821)
~~————~~
~~————~~

No segmental analysis is shown for housing accommodation as the Charity owns and manages only general needs accommodation.

19

Notes forming part of the Financial Statements For the year ended 31 March 2021

4 Employee information

Estate Manager
Average number of employees expressed as
Full time equivalent
Staff costs (for the above person)
Wages and salaries
Social security costs
Pension costs
5
Interest receivable and similar income
Other interest
6
Interest payable and similar income
On local authority loans
7
Surplus on ordinary activities
Surplus / (Deficit) on ordinary activities is stated after charging:
Depreciation of fixed assets


2021
2020
Number
Number
4
4
————
————
2
2
————
————
48,299
45,720
2,777
2,552
3,623
3,361
————
————
54,699
51,633
~~————~~
~~————~~
2021
2020
£
£
925
4,998
~~————~~
~~————~~
2021
2020
£
£
16,681
17,215
~~————~~
~~————~~
2021
2020
£
£
56,694
69,110

The Trust's audit fee for 2020/21 of £2,000 is paid by AHG and recharged as part of the Management Fee (2019/20: £2,000).

20

Notes forming part of the Financial Statements For the year ended 31 March 2021

8 Taxation

No provision for UK taxation has been made as all income and gains are used exclusively for charitable purposes and are therefore exempt from taxation.

9 Tangible fixed assets

9 Tangible fixed assets
Freehold Scheme
housing equipment
properties Total
£ £ £
Cost
At 1 April 2020 3,216,579 154,974 3,371,553
Additions (934) 53,847 52,913
Disposals - -
———— ———— ————
At 31 March 2021 3,215,645
~~————~~		 208,821
~~————~~		 3,424,466
~~————~~
Depreciation
At 1 April 2020 (2,109,469) (119,818) (2,229,287)
Charge for the year (51,600) (5,094) (56,694)
Disposals - -
———— ———— ————
At 31 March 2021 (2,161,069)
~~————~~		 (124,912)
~~————~~		 (2,285,981)
~~————~~
Net book value
At 31 March 2021 1,054,576
~~————~~		 83,909
~~————~~		 1,138,485
~~————~~
At 31 March 2020 1,107,111
~~————~~
35,156
~~————~~
1,142,267
~~————~~
10 Debtors
2021 2020
£ £
Amounts receivable within one year:
Rent and service charge arrears 8,155 4,089
Less: bad debt provision (4,825)
(2,794)
———— ————
3,330 1,295
Service charge deficits 899 1,876
Anchor Hanover Group 42,084 43,023
Other debtors, prepayments and accrued income 1,560 9,556
———— ————
47,873 55,750
Amounts receivable after more than one year:
Service charge deficits 2,961 4,659
———— ————
50,834
~~————~~		 57,409
~~————~~

21

Notes forming part of the Financial Statements For the year ended 31 March 2021

11 Investments

Investments
2021 2020
£ £
Short term deposits 848,501 555,583
Investments listed on a recognised exchange 578,584 450,228
———— ————
Value at 31 March 1,427,085
~~————~~		 1,005,811
~~————~~
Cost of listed investments
500,000
~~————~~
500,000
~~————~~
Analysis of movement of listed investments
2021 2020
£ £
Value at 1 April 450,228 526,329
Additions at cost - -
Net (deficit) / surplus on revaluation 128,356 (76,101)
———— ————
Value 31 March 578,584
~~————~~		 450,228
~~————~~

12 Cash at bank and in hand

Cash at the bank is made up of cash held on behalf of estates and general funds. All of the Charity’s cash is available at short notice and is unrestricted.

13 Creditors: amounts falling due within one year

Rents and service charges received in advance
Housing loan repayments
Anchor Hanover Group
Service charge surpluses
Deferred capital grant income
Other creditors, accruals and deferred income		 2021
2020
£
£
11,005
9,821
6,488
5,895
-
5,592
-
449
5,997
5,997
143,435
29,315
————
————
172,517
51,477
~~————~~
~~————~~

22

Notes forming part of the Financial Statements For the year ended 31 March 2021

14 Creditors: amounts falling due after more than one year

Housing loan repayments
Service charge surpluses
Deferred housing grant		 2021
2020
£
£
131,212
137,700
2,356
3,247
23,990
29,987
————
————
157,558
170,394
~~————~~
~~————~~

Housing loans from two Local Authorities are secured by specific charges on the Charity's housing properties and land and are repayable at varying rates of interest in instalments due as follows:

Between one and two years
Between two and five years
In five years or more		 2021
2020
£
£
7,145
6,488
26,132
23,699
97,935
107,513
————
————
131,212
137,700
~~————~~
~~————~~

15 Capital commitments

The Charity had no capital commitments at 31 March 2021 (2020: Nil).

16 Contingent liabilities

The Board of the Corporate trust is not aware of any contingent liabilities (2020: Nil).

23

Notes forming part of the Financial Statements For the year ended 31 March 2021

17 Deferred Grant

The Charity receives financial assistance from government sources such as the HE and GLA. These government grants are accounted for as deferred income in the Statement of Financial Position and are amortised annually to the Statement of Comprehensive Income based on the life of the build structure which is 50 years.

The amount amortised represents a contingent liability to the entity and will be recognised as a liability when the properties funded by the relevant government grant are disposed of or when the property ceases to be used for social housing purposes. Below is the analysis of the assistance from government sources in the form of government grants.

2021 2020
£ £
Income
Balance at 1stApril 1,007,520 1,007,520
Grant received in year - -
Grant repaid - -
Transfer from RCGF - -
———— ————
Balance at 31stMarch 1,007,520 1,007,520
Amortisation
At 1stApril (971,536) (965,539)
In year (5,997) (5,997)
———— ————
Total amortisation (977,533) (971,536)
———— ————
Net value of grant 29,987
~~————~~		 35,984
~~————~~
Amounts due < 1 year 5,997
5,997
Amounts due > 1 year 23,990 29,987
———— ————
29,987
~~————~~		 35,984
~~————~~

24

Notes forming part of the Financial Statements For the year ended 31 March 2021

18 Related party transactions

Anchor Hanover Group, the Corporate Trustee, also acts as the managing agent for the Trust providing various services for which fees are paid as follows:

Management fees
Service charge and technical services fees
Alarm and alarm monitoring services		 2021
2020
£
£
90,986
89,377
22,505
63,400
6,198
7,354
————
————
119,689
160,131
~~————~~
~~————~~
As part of the arrangement Anchor Hanover Group also provides short term funding and cash management
for the day to day operations of the Trust and the amount outstanding at 31 March is as follows:-
2021 2020
£ £
Amounts due from / (to) Anchor Hanover Group
42,084
~~————~~		 43,023
~~————~~

19 Legislative provisions

The Charity is an unincorporated charity registered with the Charity Commission.

20 Payments to creditors

The Charity’s policy is to pay all invoices within 28 days or in accordance with agreed terms.

25