2024-12-31-accounts - Portsmouth And District Friendly Societies' Homes

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

REGISTERED CHARITY NUMBER: 229734

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

	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 2024

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 2024

Unrestricted Funds	Restricted Funds	2024 Total
£ - 95,097 - - 95,097 4,367 6,840 11,207 106,304 823 - - 582 479 - 867 2,256 - - 4,181 2,427 4,412 74,426 240 23,950 - - 114,643	£ - - - -	£ - 95,097 - - 95,097 4,367 6,840 11,207 106,304 823 - - 582 479 - 867 2,256 - - 4,181 2,427 4,412 74,426 240 23,950 - - 114,643
	-
	- -
	-
	- - - - - - - - - - - - - - - - - - -
	-

Page 2

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2024 (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 £ 96 114,739 (8,435) 18,426 9,991 1,887,746 1,897,737	Restricted Funds £ - - - - - 62 62

Page 3

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

BALANCE SHEET 31 DECEMBER 2024

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		2024	£ 1,491,354 406,445 1,897,799 1,897,737 62 1,897,799		2023	£ 1,473,025 414,784 1,887,808 1,887,746 62 1,887,808
		£ 984,737 386 506,231 280,339 103,683 1,883 62 11,798 28,890 426,655 2,262 17,948 20,210			£ 984,737 483 487,805 284,344 110,554 34,150 62 29,543 5,819 464,472 2,196 47,492 49,688

The financial statements were approved by the Board of Trustees on ……………..… and were signed on its behalf by:

……………………………… ……………………………… 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 2024

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 2024

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:

Staff costs The average monthly number of employees during the	year was as follows:
	2024	2023
Homes administrator	-	-

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 2024 nor for the year ended 31 December 2023.

Page 6

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024

2. TANGIBLE FIXED ASSETS

COST OR VALUATION: At 1 January 2024 Additions At 31 December 2024 DEPRECIATION: At 1 January 2024 Charge for year At 31 December 2024 NET BOOK VALUE: At 31 December 2024 At 31 December 2023 . 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		Freehold property £ 984,737 - 984,737 - - - 984,737 984,737 Market Value 2024 £ 84,905 376,058 45,268 506,231	Office equipment £ 1,793 - 1,793 1,310 97 1,407 386 483 Unrealised Gain/(Loss) £ 1,875 18,204 (1,653) 18,426		Totals £ 986,530 - 986,530 1,310 97 1,407 985,123 985,220 Market Value 2023 £ 83,030 357,854 46,921


						487,805

3. FIXED ASSET INVESTMENTS

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 2024

4. ANALYSIS OF NET ASSETS BETWEEN FUNDS

At 1 January 2024		Designated Funds	Designated Funds	Designated Funds
		£ - - 406,383 - 406,363 Outgoing resources	£ - - 406,383 -
			406,363
£ 414,721 1,473,025 1,887,746 62 1,887,808	£ - - - - -			£ (8,338) (97)
				(8,435)
				-
				(8,435)

6. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2024.

Page 8

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

FOR THE YEAR ENDED 31 DECEMBER 2024

I report on the accounts of the Society for the year ended 31 December 2024, 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.

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 2024

The trustees present their report with the financial statements of the charity for the year ended 31 December 2024. 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 2 7 fl ats.

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

The charity owns 2 7 properties, and the trustees remain committed to ensuring that all homes are safe, secure, and well maintained.

Repairs and maintenance expenditure increased in 2024 compared with 2023, primarily due to works to replace radiators, repairs to roofing, and the installation of rotary washing lines. The total cost of these works was £12,692.

Further costs were incurred during the year as three properties became vacant and required refurbishment prior to re-letting. Expenditure on these refurbishments totalled £21,096.

The overall increase in maintenance costs was partially offset by higher income received from residents. The trustees’ decision to increase Weekly Maintenance Contributions (WMC) to levels more consistent with other social housing providers resulted in an overall increase in WMC income of £5,256 compared with 2023.

Additional overhead costs arose during the year relating to legal and professional fees for energy efficiency surveys and for the proposed purchase of a block of six flats in Portsmouth from another charity. However, completion of the purchase took place in 2025 and will therefore be reflected in the accounts for that year. The acquisition demonstrates the trustees’ ambition to use reserves to expand the charity’s housing provision and increase the number of beneficiaries supported.

The charity continues to engage Portsmouth Rotary Housing Association (PRHA) to deliver property management, finance, and governance services. This arrangement, now approaching its third year, is underpinned by a management agreement that is due for review in 2025.

At the end of the financial year, the charity remained in a strong financial position, enabling a planned increase in the number of properties owned and a projected increase in rental income of approximately 35% in 2025.

Page 10

PORTSMOUTH AND DISTRICT FRIENDLY SOCIETIES HOMES

FOR THE YEAR ENDED 31 DECEMBER 2024

ANNUAL REPORT FOR 2024 (continued)

Financial review

Morris Crocker accountants conducted an Independent Examination of the charity’s accounts details of which form part of this report.

There were discussions on the purchase of a block of six flats in Portsmouth from another charity and how this would leave little reserve funds remaining for other projects. It was agreed that if the income from the properties covers the cost of borrowing, the organisation would be in no worse position with an increased asset base.

PDFSH has discussed ensuring the charity has access to their investments held in case of the possibility to liquidate funds.

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.

On 18[th] January 2024, 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 2 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:

……………………………… …………………………… Cllr C Corkery Mr A Kille Secretary and Trustee Chair Trustee

Page 11