ABBEYFIELD LOUGHTON SOCIETY LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31ST MARCH 2022
Registered Number: 758621
Registered Charity Number: 227729
ABBEYFIELD LOUGHTON SOCIETY LIMITED
| DIRECTORS AND TRUSTEES: | C M Franklin (Chairperson) |
|---|---|
| C J Rawlinson (Treasurer) | |
| P B Medway | |
| L Richards | |
| L G Murphy | |
| S A Murphy | |
| SECRETARY: | C M Franklin |
| PRESIDENT: | S Murray |
| ACCOUNTANTS: | Sterlings Accountancy Solutions Ltd |
| Unit 5 Woodbrook Crescent | |
| Billericay | |
| Essex | |
| CM12 0EQ | |
| BANKERS: | Barclays Bank plc |
| 207 High Road | |
| Loughton | |
| Essex | |
| IG10 1AZ | |
| REGISTERED OFFICE: | 121 High Road |
| Loughton | |
| Essex | |
| IG10 4LT | |
| INVESTMENT MANAGERS: | CCLA Investment Management Limited |
| COIF Charity Funds | |
| 80 Cheapside | |
| London EC2V 6DZ | |
| W H Ireland Ltd | |
| 24 Martin Lane | |
| London | |
| EC4R 0DR | |
| BMO Global Asset Management | |
| PO Box 9040 | |
| Chelmsford | |
| Essex | |
| CM99 2XH |
Page 1
ABBEYFIELD LOUGHTON SOCIETY LIMITED
DIRECTORS' REPORT
The directors present their annual report and the financial statements for the year ended 31st March 2022. This report is a Director's Report which as required by section 417 of the Companies Act 2006 and a Trustees' Annual Report as required under Part 8 of the Charities Act 2011.
The trustees confirm that the financial statements comply with the requirements of the company's governing documents, the Charities SORP (FRS 102) and the Companies Act 2006.
Structure, Governance & Management
The Society is constituted by its Memorandum and Articles dated 24th April 1963 registered under the Companies Act 2006 (number 758621). It is also a registered charity (number 227729). The accounts have, therefore, been prepared to comply with the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005 and revised in May 2008. The Society is an affiliated member of The Abbeyfield Society.
The Society is a company limited by guarantee not having any share capital. Each member guarantees to contribute £1 towards the liabilities and costs on winding up.
The directors of the charity are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.
The trustees serving during the year and since the year end were as follows:
C M Franklin P B Medway C J Rawlinson L Richards L G Murphy (appointed 6 July 2021) S A Murphy (appointed 6 July 2021)
Recruitment and Appointment
Potential new trustees are recruited in one of two ways. Either the trustees approach someone who they think may be interested and have time to commit to the organisation, or an interested, informed person approaches an executive committee member with a view to joining the committee.
The committee would then formally discuss the applicant's merits and skill sets. Following a formal screening process and a police check, if the committee consider that the applicant would enhance the committee's work, he or she is formally elected.
Page 2
ABBEYFIELD LOUGHTON SOCIETY LIMITED
DIRECTORS' REPORT
Induction and Training of Trustees
By way of formal introduction Trustees are given training on policies and procedure relative to the role.
The charity requires trustees and staff to attend mandatory, regular training courses on a variety of topics.
The trustees form The Executive Committee of the Society and are responsible for all decision-making. Trustees are appointed on a rotational basis by the members at the Annual General Meeting.
The trustees have identified the major risks to which the Society is exposed and those risks have been mitigated. The trustees are currently reviewing their policies which have been in place for many years.
In accordance with the Articles of Association C M Franklin and P B Medway retire from the Committee at the Annual General Meeting and will offer themselves for re-election.
Risk Management
The main areas of risk to the charity are financial and physical. The trustees undertake a formal risk assessment on a frequent basis to ensure that physical risks such as loose carpet, which could pose a risk to residents, are identified and dealt with early.
Staff are subject to police screening and training for key areas in Health and Safety, Food Hygiene and prevention of abuse.
Fire drills and the regular testing of fire alarms are undertaken often to ensure staff and residents are aware of the emergency procedures. Each resident's room has displayed fire evacuation procedures and a panic button in case of emergency. In addition, residents are offered pendant personal alarm systems.
Investments are made with the ultimate aim of high liquidity, maximum yield with very low capital risk. Following the demise of our former Treasurer, who was knowledgeable regarding investments, the Board agreed to appoint W H Ireland Ltd to manage the investments.
Objectives & Activities
The principal activity of the charity throughout the year was providing care and accommodation for elderly and lonely persons in accordance with the Memorandum and Articles of Association and the aims and principles of The Abbeyfield Society Limited.
The trustees regularly review the needs and the facilities provided for the residents with a view to carrying out such work as maybe required, to improve and enhance the residents' quality of life.
Following the end of Lockdown, we were able to review upgrades and general maintenance and fitted a new kitchen and roller blind at a cost of £ 23,671.80, had the spiral fire escape stairs surveyed and anti-slip covers renewed at a cost of £ 3,515.60, and further windows replaced at a cost of £6,082.00.
It is the charity's policy to cover its operating costs with income from residential charges. Any surplus on investments is set aside for future use to improve the building and facilities for residents.
Achievements & Performance
The aim of the trustees is to ensure full occupancy of the home and to provide a comfortable environment for the residents.
Although sadly we lost a resident, we have since welcomed three new residents leaving only two vacancies.
Financial Review
Due to anticipated increased running costs we unfortunately had to increase rental prices at the start of the financial year. Despite this, rental income was reduced during the year due to on avaerage 4 rooms being vacant. Overall most operational costs are comparable with the prior year other than light and heat which has already increased. With the current economic climate we anticipate allcost to increase in the coming year. There was a deficit of £31,544 before property and investment revaluations; the investments increased in value by £13,184 resulting in an overall deficit of £18,360 for the year.
Page 3
ABBEYFIELD LOUGHTON SOCIETY LIMITED
DIRECTORS' REPORT
Reserves Policy
As at 31 March 2022, the total unrestricted reserves of the charity stands at £2,460,099 which includes the revaluation reserve of £1,182,457.
Income from residents covers all the general expenses of running a home including internal decorations and minor repairs. The investment income is generally used to fund capital expenditure or major work.
Short and long term investments are acquired and held at the discretion of the directors.
Plans For Future Periods
Care is taken to ensure that when any new resident is entered into the accommodation, it is newly cleaned, redecorated and, where necessary, re-carpeted. Every effort is made to ensure that the new resident integrates with the other residents. A one week trial is therefore mandatory, to ensure that the resident and home are compatible.
Trustees' responsibilities in relation to the financial statements
The trustees (who are also directors for the purpose of common law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees must prepare the financial statements in accordance with united Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue to operate.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Charities Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
By Order of the Board of Trustees
C M Franklin Chairperson
Date: 24 May 2022
Page 4
INDEPENDENT EXAMINERS' REPORT TO THE TRUSTEES OF
ABBEYFIELD LOUGHTON SOCIETY LIMITED
I report on the financial statements for the year ended 31 March 2022 set out on pages 5 to 11.
Respective responsibilities of trustees and examiner
The trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination it is my responsibility to:
-
examine the accounts under section 145 of the 2011 Act
-
to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act
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to state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiners statement
In connection with my examination, no matter has come to my attention
-
which gives me reasonable cause to believe that in, any material respect the requirements:
-
to keep accounting records in accordance with section 386 of the companies Act 2006 and
-
to prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities.
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
David Parker FCA
Institute of Chartered Accountants in England & Wales
Sterlings Accountancy Solutions Limited Unit 5 Woodbrook Crescent Billericay Essex CM12 0EQ
Date: 31 May 2022
Page 5
ABBEYFIELD LOUGHTON SOCIETY LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE INCOME AND
EXPENDITURE ACCOUNT AND STATEMENT OF RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31ST MARCH 2022
----- Start of picture text -----
2022 2021
Unrestricted Restricted Total Total
Notes £ £ £ £
Incoming resources
Incoming resources from generated funds
Voluntary
Donations - - - 5,352
Activities for generating funds
Investment income 3 4,733 - 4,733 7,316
Incoming resources from charitable activities
-
Income from residential charges 109,976 109,976 129,341
- -
Other incoming resources 4,937
Total incoming resources being net incoming -
114,709 114,709 146,946
resources available for charitable application
Resources expended
Charitable expenditure
Costs of charitable activities 4 135,847 - 135,847 136,865
Governance costs 5 10,406 - 10,406 14,291
-
Total resources expended 146,253 146,253 151,156
Net incoming/(outgoing) resources for the year
before transfers and investment gains and losses -
(31,544) (31,544) (4,210)
being the surplus/(deficit) for the year for
Companies Act purposes
-
Unrealised surplus/(deficit) on investments 13,184 13,184 18,456
Other recognised gains and losses
on fixed assets for the Society's use
- - - -
Unrealised gain on land and buildings
Net movement in funds (18,360) - (18,360) 14,246
-
Fund balance brought forward 2,478,459 2,478,459 2,464,213
Fund balance carried forward £ 2,460,099 £ - £ 2,460,099 £ 2,478,459
----- End of picture text -----
-
All transactions are derived from continuing activities
-
There are no gains or losses for the year other than those recognised in the Statement of Financial Activities.
Page 6
ABBEYFIELD LOUGHTON SOCIETY LIMITED
BALANCE SHEET
AS AT 31ST MARCH 2022
----- Start of picture text -----
2022 2021
Notes £ £ £ £
Tangible Fixed Assets
Housing properties 7 1,700,000 1,700,000
Investments 8 477,857 464,673
2,177,857 2,164,673
Current Assets
Debtors 9 2,646 2,091
Cash at bank and in hand 284,939 316,694
287,585 318,785
Creditors : amounts falling due within one
year 10 5,343 4,999
Net Current Assets 282,242 313,786
Total Assets Less Liabilities £ 2,460,099 £ 2,478,459
Financed by:
Unrestricted reserves:
Retained surplus 11 1,277,642 1,296,002
Revaluation reserve 11 1,182,457 1,182,457
11 £ 2,460,099 £ 2,478,459
----- End of picture text -----
The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for:
-
(a) ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the financial reporting Standard for Smaller Entities (effective April 2008).
The financial statements were approved by the board of directors on the date shown below and were signed on its behalf by:
……………………………….. ………………………………..
C M Franklin - Chairperson C J Rawlinson - Treasurer
Date: 24 May 2022
The notes on pages 7 to 11 form part of these financial statements
Page 7
ABBEYFIELD LOUGHTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022 3
1. STATUS OF SOCIETY
The Society is registered under the Companies Act 2006 (number 758621) and is a registered charity (number 227729).
2. ACCOUNTING POLICIES
Accounting Basis
These accounts have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), "Accounting and Reporting by Charities" the Statement of Recommended Practice for Charities applying FRS 102, the companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from January 2015. The Company is a Public Benefit Entity as defined by FRS 102.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Under Companies Act 2006 s454, on a voluntary basis, the trustees can amend these financial statements if they subsequently prove to be defective.
Incoming Resources
Income from donations is included in incoming resources when these are receivable.
Income from residential charges is accounted for on a straight line and accruals basis.
Investment income is accounted for on an accruals basis.
Resources Expended
All resources expended can be separately identified between different classes of expenditure. There is no need for apportionment.
Housing Land and Buildings
The cost of property is the purchase price plus costs of developing the property to enable it to be occupied.
All invoices and architect's certificates relating to capital expenditure are included in the financial statements at gross value provided that the expenditure incurred or the architect's certificate was completed by the end of the accounting year.
Expenditure on any scheme aborted is written-off in the year in which it is recognised that the scheme will not be developed to completion.
Where the directors consider that a property has fallen below recoverable amount, the carrying value of the property is written down directly to the Statement of Financial Activities to estimated open market value for existing use. When the directors consider the property value has increased, the carrying value is increased with the surplus being credited directly to the revaluation reserve.
Depreciation
Freehold property is carried at cost/valuation and is not depreciated. It is company policy to maintain its freehold property to a high standard, because of this the property maintains a residual disposal value in aggregate at least equal to the book value and accordingly no provision for depreciation is made. This represents a departure from the Companies Act 2006 which requires depreciation to be charged on tangible fixed assets. The directors consider this departure to be necessary to give a true and fair view.
If this departure from the Act had not been made, the profit for the year would have been reduced by depreciation. However, the amount of depreciation cannot reasonably be quantified because depreciation is only one of many factors reflected in the valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.
Page 8
ABBEYFIELD LOUGHTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022
2. ACCOUNTING POLICIES - Continued
Future Cyclical Repairs and Maintenance
Provision is made for major repairs or cyclical maintenance only where they represent legally binding commitments or obligations at the balance sheet date.
Corporation Tax and VAT
The Society has charitable status and is exempt from corporation tax on the income it has received. The Society is not registered for VAT. Accordingly no VAT is charged to residents, and expenditure in the income and expenditure account includes the relevant VAT.
Investments
Investments held are stated at bid price value at the balance sheet date. Purchases and sales include transaction fees. Realised and unrealised gains and losses are credited/charged to the Statement of Financial Activities.
Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
Funds
The Society has no Restricted or Endowment Funds. All funds are credited to the General Fund held for the future running of the Society.
3. INVESTMENT INCOME
4.
| Bank and short term deposit interest Dividends Disposal of investments Advertising Television licence COSTS OF CHARITABLE ACTIVITIES Repairs and maintenance Staff salaries and costs Food and other household costs National Insurance Pension contributions Insurance Garden maintenance Rent and rates Heating and lighting Telephone |
2022 £ 51 4,682 - 4,733 £ 2022 £ 38,685 68,582 588 966 5,929 3,088 3,994 7,367 2,629 166 2,971 882 135,847 £ |
2021 £ 143 7,173 - 7,316 £ 2021 £ 37,111 71,478 159 1,215 5,675 5,543 3,898 6,138 2,140 165 2,635 708 136,865 £ |
|---|---|---|
Page 9
ABBEYFIELD LOUGHTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022
5. GOVERNANCE COSTS
| Affiliation fee: The Abbeyfield Society Accountancy Legal and professional Printing, postage and stationery Computer expenses General expenses |
2022 £ 2,982 4,301 1,744 44 464 871 10,406 £ |
2021 £ 2,873 4,384 4,177 - 1,848 1,009 14,291 £ |
|---|---|---|
6. EMPLOYEES
The Society had 4 (2021 - 4) employees, amounting to one full-time equivalent employee, who run the accommodation unit. No employee earns more than £60,000 per annum.
7. FIXED ASSETS
| Freehold Land and Buildings Valuation At 1st April 2021 Revaluation surplus At 31st March 2022 |
Land and buildings held for letting £ 1,700,000 - 1,700,000 £ |
|---|---|
The property valued on 23 July 2014 by Heather Thirtle F.R.I.C.S. on the basis of the open market value for existing use.
The original cost of the property, including improvements, was £517,543.
Page 10
ABBEYFIELD LOUGHTON SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022
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8. INVESTMENTS
2022 2021
£ £
Valuation brought forward 464,673 446,217
- -
Disposals
Revaluation surplus/(deficit) 13,184 18,456
£ 477,857 £ 464,673
2022 2021
£ £
UK Listed investments 477,640 464,673
£ 477,640 £ 464,673
Investments comprising greater than 5% of investments are as follows:-
2022 2021
£ £
BMO Global Asset Management Funds 65,285 59,458
-
iShares Corporate Bond 24,377
9. DEBTORS
2022 2021
£ £
Prepayments and accrued income 2,646 2,091
£ 2,646 £ 2,091
10. CREDITORS : Amounts falling due within one year
2022 2021
£ £
Other creditors 394 402
Accruals and deferred income 4,949 4,597
£ 5,343 £ 4,999
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Page 11
ABBEYFIELD LOUGHTON SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022
11. RESERVES
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||||||
|---|---|---|---|---|
|Freehold|Investments|
|Revaluation|Revaluation|Unrestricted|
|Reserve|Reserve|Reserve|Total|
|£|£|£|£|
|-|
|At 1 April 2021|1,182,457|1,296,002|2,478,459|
|-|-|
|Operating Surplus for the year|(31,544)|(31,544)|
|-|-|
|Revaluation surplus in the year|13,184|13,184|
|At 31 March 2022|£ 1,182,457|£ -|£ 1,277,642|£ 2,460,099|
----- End of picture text -----
12. SHARE CAPITAL AND CONTROLLING PARTY
The Society is a company limited by guarantee not having any share capital.
There is considered to be no controlling party.
13. PAYMENT TO MEMBERS, COMMITTEE MEMBERS, OFFICERS, ETC.
Payments to members of the Society for travel and sundry expenses reimbursed and ex gratia payments are as follows:-
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||||
|---|---|---|
|2022|2021|
|£|£|
|C J Rawlinson|198|1,100|
|C M Franklin|174|254|
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The trustees did not receive any remuneration during the year.