**REGISTERED CHARITY NUMBER: 229734** ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** **REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED** **31 DECEMBER 2023** **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ||**Page**| |---|---| |**General Information**|**1**| |**Statement of Financial Activities**|**2**| |**Balance Sheet**|**4**| |**Notes to the Financial Statements**|**5**| |**Independent Examiners Report**|**9**| |**Report of the Trustees**|**10**| **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2023** **HONORARY SECRETARY:** Cllr C Corkery **HONORARY TREASURER:** Cllr C Corkery **TRUSTEES:** Cllr B Dowling Cllr G Vernon-Jackson Cllr C Corkery Mr S Pitt Mr A Kille **HOMES SITUATED AT:** Glasgow Road Milton Portsmouth Hampshire PO4 8HS **CHARITY NUMBER:** 229734 **ACCOUNTANTS:** Morris Crocker Chartered Accountants Station House Havant Hampshire PO9 1QU **BANKERS:** Lloyds Bank plc 38 London Road North End Portsmouth PO2 0LN Page 1 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023** |**Income:**
Friendly Society's donations
Maintenance contributions
Water heater contributions
Sundries
**Other income:**
Investment income
Deposit account interest
**TOTAL INCOMING RESOURCES**
**Expenditure:**
Telephone
Postage and stationery
Advertising
Subscriptions of National
Association of Almshouses
Xero subscriptions
Dext subscriptions
Sundry expenses
Accountancy
Payroll
Wages, social security and pensions
Rates and water
Insurance
Electricity and gas
Repairs and decorations
Health and safety
PRHA management fees
Legal and professional fees
Property management software|Unrestricted
Funds|Unrestricted
Funds|Restricted
Funds|Restricted
Funds|Restricted
Funds||2023
Total||2022
Total
£
3,565
78,660
1,034
128| |---|---|---|---|---|---|---|---|---|---| |||£
3,850
89,841
39
-
93,730
3,959
3,655
7,614
101,344
1,200
506
100
434
465
331
108
2,196
-
16,894
3,098
2,558
(165)
52,086
6,804
6,815
154
929
94,513|||£
-
-
-
-||£
3,850
89,841
39
-
93,730
3,959
3,655
7,614
101,344
1,200
506
100
434
465
331
108
2,196
-
16,894
3,098
2,558
(165)
52,086
6,804
6,815
154
929
94,513||| ||||||-||||83,387| ||||||-
-||||3,194
204| ||||||-||||3,398| ||||||-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-||||86,785
932
587
575
309
291
-
1,106
2,130
517
16,974
3,402
2,180
1,530
44,857
5,158
4,578
1,440
-| ||||||-||||86,566| Page 2 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **STATEMENT OF FINANCIAL ACTIVITIES** **FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)** |**Depreciation:**
Office equipment
**TOTAL EXPENDITURE**
**NET INCOME**
Investment (losses)/gains
**NET MOVEMENT IN FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Funds
£
121
94,634
6,710
47,863
54,573
1,833,173
1,887,746|Restricted
Funds
£
-
-
-
-
-
62
62|| |---|---|---|---| ||||| Page 3 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **BALANCE SHEET 31 DECEMBER 2023** |Notes
**FIXED ASSETS:**
Freehold property
2
Office equipment
2
Investments
3
**CURRENT ASSETS:**
CMF bank account
ERF bank account
Instant bank account
Scales Gift account
Current account
Debtors
**CREDITORS:**
Accrued expenses
Creditors
**NET ASSETS**
**FUNDS:**
Unrestricted funds – reserve funds
Restricted funds
**TOTAL FUNDS**||2023|£
1,473,025
414,784
1,887,808
1,887,746
62
1,887,808||2022|
£
1,425,283
407,952
1,833,235
1,833,173
62
1,833,235| |---|---|---|---|---|---|---| |||£
984,737
483
487,805
284,344
110,554
34,150
62
29,543
5,819
464,472
2,196
47,492
49,688|||£
984,737
604
439,942
251,976
97,635
44,824
62
42,238
333
437,068
5,158
23,958
29,116|| The financial statements were approved by the Board of Trustees on Thursday 12 September 2024 and were signed on its behalf by: ~~………………………………~~ Cal Corkery (Oct 7, 2024 19:41 GMT+1) Cllr C Corkery – Secretary ……………………………… Mr A Kille – Chair Trustee Page 4 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **1. ACCOUNTING POLICIES** ## **Basic of preparing the financial statements** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold property - nil Office equipment - 20% on reducing balance Freehold property is reflected in the accounts at original cost. Having regard to the estimated useful economic life and residual value, the Trustees consider that a provision for depreciation is not required. ## **Investments** Investments are included at market value and the unrealised gain or loss is accounted for in the Statement of Financial Activities. ## **Taxation** The charity is exempt from tax on its charitable activities. ## **Funds accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Page 5 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **Management and administration of the charity** No honorarium has been paid in the year. |**Management and administration of the charity**
No honorarium has been paid in the year.||| |---|---|---| |**Staff costs**||| |The average monthly number of employees during the year was as follows:||| ||2023|2022| |Homes administrator|1|1| |No employees received emoluments in excess of £60,000.||| ## **Trustees’ remuneration and benefits** There were no trustees’ remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. Page 6 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023** ## **2. TANGIBLE FIXED ASSETS** |**. TANGIBLE FIXED ASSETS**|||| |---|---|---|---| |**COST OR VALUATION:**
At 1 January 2023
Additions
At 31 December 2023
**DEPRECIATION:**
At 1 January 2023
Charge for year
At 31 December 2023
**NET BOOK VALUE:**
At 31 December 2023
At 31 December 2022|Freehold
property
£
984,737
-
984,737
-
-
-
984,737
984,737|Office
equipment
£
1,793
-
1,793
1,189
121
1,310
483
604|Totals
£
986,530
-
986,530
1,039
150
1,189
985,220
985,341| ||||| ## **3. FIXED ASSET INVESTMENTS** |COIF Capital (4,183.92 units)
COIF ERF Scheme (1,442.96 units)
M&G Charibond (41,953.75 units)
|Historical
Cost
£
35,567
93,236
49,610
178,413||Market
Value
2023
£
83,030
357,854
46,921
487,805|Unrealised
Gain/(Loss)
£
6,988
39,394
1,481
47,863||Market
Value
2022
£
76,042
318,460
45,440| |---|---|---|---|---|---|---| |||||||| |||||||439,942| All investment assets are held in the UK. Page 7 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **4. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Tangible fixed assets
Investments
Current assets
Current liabilities
**5. MOVEMENT IN FUNDS**
**Unrestricted funds:**
Designated funds
General funds
**Restricted funds:**
Renovation grant
**TOTAL FUNDS**|
At 1 January
2023|
At 1 January
2023|||||Designated
Funds|Designated
Funds|Designated
Funds||Restricted
Total
Funds
Funds
£
£
-
985,220
-
487,805
62
464,471
-
(49,688)
62
1,887,808
Movement in At 31 December
investments
2023
£
£
-
414,721
47,863
1,473,025
47,863
1,887,746
-
62
47,863
1,887,808| |---|---|---|---|---|---|---|---|---|---|---|---| ||||||||£
-
-
414,721
-
414,721
Outgoing
resources|£
-
-
414,721
-|||| |||||||||414,721|||| |||£
407,890
1,425,283
1,833,173
62
1,833,235|||£
6,831
-
6,831
-
6,831||||£
-
(121)|
|| ||||||||||(121)||| ||||||||||-||| ||||||||||(121)||| ## **6. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 December 2023. Page 8 ## **INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **FOR THE YEAR ENDED 31 DECEMBER 2023** I report on the accounts of the Society for the year ended 31 December 2023, which are set out on pages 2 to 8. ## **Respective Responsibilities of Trustees and Examiner** The charity’s trustees are responsible for the preparation of the accounts. The charity’s 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 required. 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 Commissioners (under Section 145(5)(b) of the 2011 Act); and - to state whether particular matters have come to my attention. ## **Basis of the independent examiner’s report** My examination was carried out in accordance with the 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 you as 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 statements below. ## **Independent examiner’s statement** In connection with my examination, no matter has come to my attention: - (1) which gives me reasonable cause to believe that, in any material respect, the requirements - to keep accounting records in accordance with Section 130 of the 2011 Act; and - to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act have not been met: or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. ## Martin Southern Martin Southern (Oct 8, 2024 10:35 GMT+1) **M Southern FCA Morris Crocker Chartered Accountants Station House North Street Havant Hampshire PO9 1QU** **Date:** ………………………… Page 9 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31 DECEMBER 2023** The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provision of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). ## **Objectives and activities** The aim of the Friendly Societies Homes is to provide accommodation for necessitous people over the age of 60 with a preference for those who are members of Friendly Societies and their widows, living in the area of benefit for five years and able to live independently. The area of benefit is within a 15 mile radius from the Guildhall in the city of Portsmouth. The main objective of the trustees in recent years has been to bring the housing stock of flats up to a suitable and acceptable standard in today’s market. There are five blocks of flats on the ground floor and first floor only. There are no lifts at the Homes. Following the modernisation and refurbishment, there are a total of 25 flats at the Homes now having been reduced from the original 32 bedsit flats, with flat 88 becoming an office with planning permission in 2016. ## **Public benefit** The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The trustees refer to public benefit throughout this report. ## **Activities, achievement and performance** Repairs and Maintenance expenditure increased by 16% compared to the previous year. The increase is attributed to the increase in the cost of labour and materials experienced by the housing sector due to ongoing global economic instability and high UK inflation during the year. Through awarding works to a number of contractors and experience PRHA is able to recognise good value and regularly reviews costs. During the year, it was noted that despite all 26 properties having moder boilers, the radiators were inefficient resulting in high energy bills for the residents and financial worries. A contract was agreed to fit the properties with 40% larger radiators fitted to ensure the wellbeing of residents. A contract was also awarded to M & T Gardening to improve the aesthetics of the site, including treatment of moss to reduce the risk of slip hazards. New software finance and property management software was introduced during the year as part of the modernisation of the charity’s administration. At year end the charity remained financially secure with a strong cash at bank position of £458,653 and increase of 5% compared to the previous year. The good financial position of the charity will enable the charity to plan for the future including ensuring the dwellings are energy efficient and meet the requirements of net zero legislation. During the last AGM, it was explained that the charity has commissioned energy efficiency surveys from Boulter Mossman to guide future investment in the properties to support net zero carbon and energy efficient homes. The trustees would like to thank Michelle Lincoln and PRHA staff for delivering an excellent service to the residents and supporting them. The Trustees also send their thanks to contractors involved in ensuring the properties are maintained to a good standard. Page 10 ## **PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES** ## **FOR THE YEAR ENDED 31 DECEMBER 2023** ## **ANNUAL REPORT FOR 2023 (continued)** ## **Financial review** Morris Crocker accountants conducted an Independent Examination of the charity’s accounts details of which form part of this report. A donation was received from the Ancient Order of Foresters (Southampton) in the sum of £3,850. The trustees are extremely grateful for the help and support they provide and are very thankful for their kind donations. This money will be used to further update the Homes for the benefit of the residents. The trustees would also like to remind residents of the benefits of belonging to the Foresters or Manchester Odd Fellows as they do provide social events for members and can help with welfare grants when members are in need. ## **Reserves policy** PDFSH need a reserve to enable planning for long term property maintenance obligations and to continue to be able to further the objectives of the charity. ## **Structure, governance and management** The name of the Charity is Portsmouth and District Friendly Societies Homes and this is the name used by the trustees. The Registration number of the Charity is 229734. The Trustees’ official address is the office based at Flat 88 Glasgow Road, Southsea, Portsmouth, Hampshire, PO4 8HS. The Homes are conducted by a Scheme dated 15 October 1985, drawn up by the Charity Commission. The charity is controlled by its governing document and constitutes an unincorporated charity. Any decisions made by the trustees are made at meetings of the trustees which are held regularly. The quorum for all trustee meetings is four. During the year, Ben Dowling stepped down as Chair and Andy Kille was appointed to the position of Chair. There are 5 trustees details of which are contained in this report. 3 are nominative trustees appointed by Portsmouth City Council and two are co-opted trustees (3 vacancies). PRHA have been delegated via a management agreement to support and advise trustees to ensure good governance and the continued delivery of excellent services to the beneficiaries of the charity. Approved by order of the board of trustees on ………………………. and signed on its behalf by: ~~………………………………~~ Cal Corkery (Oct 7, 2024 19:41 GMT+1) Cllr C Corkery …………………………… Mr A Kille Secretary and Trustee Chair Trustee Page 11