John Pease Cottages Report of the Board and Financial Statements Year Ended 31st March 2025 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Contents Trustees, advisors and bankers Report of the Trustees Statement of the Board of Trustees, responsibilitie5 in respect of the Board of Tru5tees' annual report and the financial statements Independent Examinerfs report to the Trustee of John Pease Cottages Statement of Comprehensive Income Statement of Financial Position Statement of Change in Reserves Notes John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Trustee. advisors and bankers Corporate Trustee North Star Housing Group Board Members of Corporate Trustee Anna Urbanowicz Ichairl Claire Warren tseputy Chair- resigned 22104120251 Graeme Allinson (Chair of Risk & Audit Committee) David Lyall (Retired 16112120241 Mark Thompson Jason Ridley (Retlred i6n2ft0241 David Walker Simon Wake Nicki Clark Joanne Todd Manisha Sharma Richard Hukin (Appolnted oino12024 Reslyned 08108k0251 Andrew Carlton Clerk to the Trustee Reglstered office Endeavour House St. Mark's Court Thornaby Stockton-on-Tees TS17 6QN Reglstered number Regulator for Social Housing Registered No. A3970 Charities Commission for England & Wales Registered No. 228137 Independent Examiner Beever and Struthers One Express l George Leigh Street Manchester M4 5DL Prlnclple Bankers Barclays Bank 28132 Albert Road Middlesbrough TSI 3QE John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Report of the Trustees The Trustees present their report and the Independent Examiner's report to the financial statements for the year ended 31st March 2025. Prlnclpal Actlvlty The Association's confirmed purpose is to provide housing for persons in need with preferences given to those who are member5 ofthe Society of Friends. Publ1¢ Benefltstatement The Charities Act 2011 identifies the key principles of public benefit. The Trustee of the Charity. in the aims and objectives of the Charity and in the oversight of the Charitys operation5, ha5 had regard to and believes that it meets Wlth the Charity Commission'5 guidance on public benefiL The Trustee defines the public benefit of the Charity as being the provision of social rented accommodation to persons in need. Buslness Review During theyeartheAssociation generated anoperating surplusfortheyearof£12,586 (2024..£5,5151 and an overall surplus for the year of£lO,096 (2024.. £1.910). Trusteos The Trustees who served during the year are set out on Page l. Structure. Governance & Management The Association has a traditional structure consisting of the Board of Management holding responsibilityfor strategyand governance. All services are provided by North Star Housing Group. registered provider of Social housing with the Regulator of Social Housing ILH00841. The Executive Director of Finance & Business Support of North Star Housing Group also acts as Clerk to the Trustees of the Association. Value for Money The detail of the Associations approach to Value for Money (VFMI and the current context of its operating activities, are outlined in the Financial Statements of it5 sole corporate Trustee. North Star Housing Group. North Star'5 2024125 financial statements can be accessed t￿[￿. The A550ciations performance against the Regulator of Social Housings VFM Metrics 15 outlined below. VFM Metrlc Reinvestment New Su l Delivered Gearin EBITDA MRI Interest Cover HSCU Operating Margin Housin Lettin ratin Mar ROCE 2024 21.0% 0.0% 49.4% 912.896 £13,474 20 0.096 0.0% 45.7% 237.296 £3,646 Social 46.5% 46.5% 5.8% 22.5% 22.596 2.9% in Overall Governlng Document The Association is controlled by its governing document, a Charities Commission scheme dated 24" March1988. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Reserves Policy The Association's reserve policy is to hold sufficient reserves to provide for the costs of dissolution in the event that the Association is unable to continue operating. Dlsclosure of Informatlon to the Independent Examlner The Trusteeswho held office at the date ofapproval ofthis Report of theTrustees' confirm that. so faras theyareeach aware, there is no relevant information ofwhich theAssociation's Independent Examiner is unaware., and each Trustee has taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant information and to establish that the A55ociation's Independent Examiner is aware of that information. Independent Examiner A resolution to re-appoint Beeverand Struthers as Independent Examinerwill be proposed at the next meeting of the Trustees on the15th September 2025. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Statement of the Board of Trustees. responsibilities in respect of the Board of Trustees. annual report and the financial statements The Board of Trustees is responsible for preparing the Board of Trustees, Annual Report and the financial statements in accordance with applicable law and regulations. The Board of Trustees has elected to prepare the financial statements in accordance with United Kingdom Accounting Standards, including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). Charity law requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the State of affairs of the Association and of its income and expenditure for that period. In preparing these financial statements, the Board of Trustees is required to: Select suitable accounting policies and then apply them consistently- Make judgements and estimates that are reasonable and prudenL. State whether applicable accounting standards 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 Association will continue in business. The Board of Trustees is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Association and enable the Board of Trustees to ensure that the financial statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered provider5 of social housing in England 2022. The Board of Trustees ha5 general responsibility for taking reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities. The Board of Trustees is responsible for the maintenance and integrity of the corporate and financial information included on the Association's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approval This Report of the Trustees was approved on Iyh September 2025 and signed on its behalf by.. A Urbanowlcz (Chair of Corporate Trustee) A Carlton (Clerk to the Trustee5) John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Independent Examlner's Report to the Trustee of John P•as0 Cottages I reportto thetrustee on myexamination of theaccountsof the charityfortheyearended 31 March 2025 which are set out on pages 6 to 17. Responslbllltles and basls of report As the charitys trustee.you are responsible forthe preparation of the accounts in accordance with the requirements of the Charities Act 20111.the Act, l. I report in respect ofmyexamination of the charitys account5 carried out under section145 of the Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section14515llblofthe Act. Independent •xamlner's statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that, in any material re5pecL. the accounting records were not kept in accordance with section 130 of the Charities ACL. or the accounts did not accord with the accounting records., or the accounts did not comply with the applicable requirements concerning the form and contentofaccounts set out in thecharities (Accountsand Report51 Regulations 2008other than any requirement that the accounts give a 'true and fair. view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matter5 in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Sue Hutchinson FCCA Independent Examiner Beever and Struthers Chartered Accountants One Express l George Leigh Street Manchester M4 SDL Date 25 September 2025 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Statement of Comprehensive Income for the yearended3P' March 20 Year ended 31st March 2025 Year ended 31st March 2024 Note Turnover Operating expenditure 27.052 4,466) 24.538 09.023) Operatlng surplus Interest receivable and similar income Interest payable and similar charges 12.586 428 (2.974) 5515 417 (4.063) Surplus for the flnan¢lal year beforetaxatlon Tax on surplus on ordinary activities 10.040 1.869 Surplus for the year 10.040 1.869 Other Comprehenslve In¢ome Revaluation on investments 56 41 Total comprehensive income for the year 10.096 1.910 All results derive from continuing activities. Thesefinancial statements, on page 6 to17,wereapproved bytheTrusteesandauthorised for issue on15 September 2025 and were signed on its behalf by: A Urbanowlcz G Allinson A Carlton (Chair ofcorporate Trustee) IBoard Member of Corporate Trustee) (Clerk to the Tru5tee5) The notes on pages 9 to17 form part ofthese financial statements. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Statement of Financial Position at3pt March 2025 At At 31StMaKh 31st March 2025 2024 Note Fixed assets Housing properties 210.690 171.261 Current assets Debtors Investments Cash at bank and in hand io ii 571 2389 7.513 1.226 2.334 17.156 10.473 20.716 Cr•dltors."amounts falling due within one year 12 (4.633) (9221 Net current assets 5.840 19.794 Total assets less current Ilabllitles 216.550 191.055 Cr•dltors:amounts falling dueafter more than one year 13 065.623) 050.244) Total net assets 50.907 40.811 Capltal and reseN•s Permanent endowment fund Revenue reserves Revaluation reserves 877 48.436 1.594 877 38.396 1.558 50.907 40.811 The financial statements. on pages 6 to 17. were approved by the Trustees and authorised for issue on15th September 2025 and were signed on its behalf by: A Urbanowlez G Alllnson (Chair of Corporate Trustee) IBoard Member of Corporate Trustee) A Carlton (Clerk to the Trustees) The notes on pages 9 to17 form part ofthese financial statements. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Statement of Changes in Reserves For th•yearended31st March 2025 Endowment Revaluatlon fund reserves RÈvÈnue reseNes Total reseNes Balance at 1°, April 2023 8T1 1.4>1 56.527 58.901 Total ¢omprehenslve Income for the flnanrial year Surplu5 for the year 1.869 1.869 Oth¢1 ¢omweh¢nslv¢ In¢ome Revaluation on investments 41 41 Balan¢e at 5Pt Mar¢h 2024 8T1 1.538 58396 40.￿7 Total comprehensive income for the flnancial year Surplu5 for the year 10.040 10,040 Other comprehensive income Revaluation on investments 56 Balan¢e at 5Pt Mar¢h 2025 8T1 1.5 50.907 The notes on pages 9 to17 form part ofthese financial statements. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 Notes l. Legal Status John Pease Cottages was formed by a trust deed dated 8 December 1869. It is registered with the Regulator for Social Housing under registration number A3970. and with the Charities Commission for England & Wales under registration number 228137. Its purpose is to provide housing for persons in need with preference being given to those who are members ofthe Society of Friends and is a public benefit entity. 2. A¢countlng Pollcles These Financial Statements are prepared in accordance with the Housing SORP 2018.. (Statement of Recommended Practice for registered social housing providers). the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022 and Financial Reporting Standard102, The Financial Reporting Standard applicable in the UK and Republic of Ireland I"FRS102"1. The Financial Statements have been prepared under the Housing SORP120181 instead of the Charities SORP120191 as this is more reflective of the nature and activities of the Association. The presentation currency of these Financial Statements is British Pounds Sterling. The accounting policies set out below have. unless otherwise stated, been applied consistently to all periods presented in these Financial Statements. The accounts are prepared under the historical cost basis of accounting. The Association'5 financial statements have been prepared on a going concern basi5 which assumes an ability to continue operating for the foreseeable future. No significant concern5 have been noted in the business plan updated for 2024125 and therefore we consider it appropriate to continue to prepare the financial statements on a going concern basis. The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for a55ets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However. the nature ofestimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements. The Association has undertaken a review of the intended use of all housing properties. In determining the intended use. the Association has considered if the asset is held for social benefit or to earn commercial rentals. The Association has determined that it does not hold any investment propertie5. airment The Association considers whether indicators of impairment exist in relation to tangible assets. Indicators considered include external sources of information such as market value. market interest rate5 and returns on investment, actual or proposed changes to the technological, economic or legal environment, obsolescence or damage to the asset operational changes or internal reporting which indicates that the asset 15 performing worse than expected. TheAssociationalso considered expected future performanceofthe asset. Any impairment Ioss 15 charged to the Statement ofcomprehensive Income. Impairment is recogni5ed where the carrying value of a cash generating unit exceeds the higher of its net realisable value less costs to sell or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified. Following a trigger for impairment, the Association performs impairment tests based on fair value less Costs to sell or a value in use calculation. During 2024125 the Association has not identified any triggers for impairment. John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 2. Aecountlng Polleles (contlnuedj Key Estimates applied in preparation of these financial statements: Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the a55ets and residual values are assessed annuallyand mayvary depending on a numberof factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions. the remaining life of the assets and projected disposal values. The carrying value of the tangible fixed asset5 at the 3Ft March 2025 was £210,690. Housing properties are stated at their historical cost less depreciation and any provision for impairment. Costs include the costs of acquisition and expenditure incurred in respect of improvements. Improvements are works which result in an enhancement of the economic benefits of the asset to the Association arising from an increase in the net rental income over the life of the asset, such as a reduction in future maintenance costs. or which result in a significant extension of the useful economic life of the property in the busine55. The Association operates a component accounting policy in relation to the capitali5ation and depreciation of its completed housing property stock. All housing properties are split between their land, structure costs and a set of major components which require periodic replacement. Refurbishment or replacement expenditure on such major components is capitalised and depreciated over the estimated useful economic lives ofthe components. In re-assessing asset lives, factors such as technological innovation. product life cycles and maintenance programmes are taken into account. These useful economic lives are a5 follows.. Usefvl E¢onomk Llfe(Y¢•rs) Stru¢tu ioo Floof Windows & Doors lirKI. Fire Doorsl 30 Kii¢hen 20 Bathroom 30 Boiler 15 Electrics 30 Heating 30 Flusing lettlngs Rent receivable net of identifiable seNice charges Service income 24589 1.752 22.401 1,406 Net rental In¢ome Amortised Government grants 26.321 23.807 Turnover from s¢xial housin9 lettlngs 27,052 24.538 Expenditure on social housing lettings Management Service charge costs Routine maintenance Planned maintenance Major Repairs Expenditure Depreciation of housing properties 5.528 4.650 1.093 7,584 1.235 22 4,439 2J50 220 4767 Operating costs onsKial housing lettings 14.466 19.023 Opeiating surplus on so¢lal houslng lettlngs 12586 5,515 Voidlosses 4. Aeeommodatlon In Management The number of units of accommodation owned by the Organisation as at 31°, March was as follows.. 2025 2024 General needs housing accommodation owned and managed by North Star Housing Group 13 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 S. Aecommodatlon In Development There were nil units12024.. nil l in development at the year-end. 6. Interest Recelvable and other In¢ome 2025 2024 Dividend income Investment income from short term deposits 104 324 ioo 517 428 417 Interest Payable and Slmllar Charges 2025 2024 Loans Ifrom North Star Housing Group) 2.974 4,063 2.974 4,063 8. Tax on surplus on Ordlnary A¢tlvltles 2025 2024 Current tax UK corporation tax on surplu5 for the year Current tax rKon¢iliation Surplu5 on ordinary activities before taxation 10.040 IA69 Theoretical tax at UK corporation tax rate 19% (2024 19%1 Effects ofr. Charitable income not taxable 1.908 355 (1,908) (355) 14 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 9 Tanglble Flxed Assets- Houslng Propertles Theorganisation owns the freehold ofa block offourcottages in GreatAyton, North Yorkshire. The cottageswere the subject of the initial permanent endowment to the Organisation in the original trust deed and. consequently. did not involve a cost to the Organisation. Costs shown comprise improvement works to the four cottages. For rent Total Cost At I"April 2024 Improvements to existing properties Disposals 211.480 44.196 14.8751 211.480 44.196 14,8751 At 31st Mar¢h 2025 250.801 250,801 Depreciation At I" April 2024 Charge during the year 40,219 4,767 40,219 4,767 Disposals during the year 14.8751 14,8751 At 31st Mar¢h 2025 40.111 40,111 Net b(>(>kvalue At31St March 2025 0.690 210.690 At 31st March 2024 171.261 1Tr,261 2025 2024 Housing piopertles NBV¢omprlses: Freehold 210.690 1Tr,261 2025 2024 Expenditure on works to housin9 propertie Amount capitalised Amount charged to Income and Expenditure account 44196 2.570 8,841 46.766 8,841 10. Debtors 2025 2024 Due within one year Arrears of rent and service charge 571 1,226 571 1,226 15 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 11. Investments 2025 2024 Listed investments at valuation 2389 2.334 12. Credltors: amounts falllng duewlthln one year 2025 2024 Rent received in advance A¢crua15 Deferred income- grant Inote141 35 5.867 63 128 922 13. Credltors: amounts falllng dueafter morethan oneyear 2025 2024 Loans outstanding due between two and five year5 INote 151 Loans outstanding due in more than five year5 INote 151 Deferred Income- grant (Note 141 36,566 75,000 54.057 20,456 75,000 54.788 165.625 150,244 In March 2021, the Association formalised a loan agreement with NSHG. There are two elements to the loan agreement- £75k of long-term fixed rate debt. This debt is over 30 years and will be repaid in instalments over the final10 years12042-2051 l. The interest rate is fixed at 396. A Revolving Credit Facility IRCFI of up to £75k. This will have interest charged at variable rate based on SONIA - Sterling Overnight Index Average Ithi5 15 the replacement for LIBORI This facility will allow JPC to manage any unexpected costs or investment in their properties. 14. Deferred Income: Summary of Grant 2025 2024 Cost at l., April and 31" March 62,096 62,096 Amortisation at ist April Charge in the year 6,578 5.847 At 31st March 7309 6.578 Deferr¢d In¢ome total at 5Pt Mar¢h 54.787 55,518 16 John Pease Cottages Report of the Board and Finantial Statements Year Ended 31st March 2025 14. Deferred Income: Summary of Grant (contlnuodl Amounts falling due within one year Amounts failing due after more than one year 54.057 54.7WI The total accumulated amount of financial a55iStance and other Government grant received or receivable at the balance sheet date. based upon the properties owned at that date, was recognised as follows: 2025 2024 Recognised in the Statement 0fcomp￿hensive Income Held 45 deferred income 7308 54.788 6.578 55,518 62,096 62,096 IS. DebtAnalysls 2025 2024 Between two and five years In five years or more 36.566 75,000 20,456 75,000 111,566 95.456 During 2020121 the organisation entered into a new loan agreement with North Star Housing Group. The facility permits borrowing5 of up to £150k. The facility consist5 of tranches. a 30-year term loan of£75k repayable in between 2042 and 2051, charged at an interest rate of 3%.. and a S year revolving credit facility where interest is calculated at SONIA plus a 2% margin. 16. Related Party Transactlons The Board member5 of North Star Housing Group are also the Board of Management forjohn Pease Cottages. During the year the following transactionsarose between North Star Housing Group and John Pease Cottages.. 2025 2024 Management expenses recharged to John Pease Cottages Day to day repair5 recharged to John Pease Cottages 7,129 2,570 4,650 8,841 9,699 13.491 Other related party transactions and balances are disclosed in Notes 7,13 and15. 17