Charity Reglstration No. 229908 Regulator of Soclal Housing No. A3245 EUSTACE HOOKAND DRUMMOND MEMORIALALMSHOUSES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES LEGALAND ADMINISTRATIVE INFORMATION Trnstees DrA Ashbee MrsA Coles Mrs S Hellyar Mr S Kingsbury Mrs S Shaw Mr P Hickmott Mrs V Tipp (Treasurer and Secretary) Charlty number 229908 Regulator of Social Houslng number A3245 Prfncipal Address 27 Hollow Road Snodland Kent ME6 5LP Independent Examlner A M Reid FCA McLean Reid Chartered Accountants 1 Forstal Road Aylesford Kent ME20 7AU Bankers National Westminster Bank PIC 718 London Road Larkfield Aylesford Kent ME20 6BL
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES
CONTENTS
| CONTENTS | |
|---|---|
| Page | |
| Trustees' Repor | 3-5 |
| Statement of Trustees' Responsibilities | 6 |
| Independent Examiner's Report | 7 |
| Statement of financial acivities | 8 |
| Balance sheet | 9 |
| Notes to the financial statements | 10-18 |
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EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees present their report and tt)e audited financial statements of the charity for the year ended, 31 December 2022. The trustees have adopted the provisions of the statement of Recornmended Practi (SORP)"Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity. The financial statements have been rKepared in a¢cordance wbth the accounting policies set out in not8S to the accounts and comply with the tharity's goveming doGument, the Charities Act 2011 and Accountiro and Reporting by Charities: Statement of Recommended Practice applicable to charilies preparing thr accounts in accordance with the Financial Reporting Starnlard applicable in the UK and Republic of Ireland published in October 2019. Objectives and actlviti8S The charity vrns formed to provide low Cost housing for poor persons who are not less than sixty-five years of age and who were bom in, or have been an inhabitant for not less than ten years of. Ihe Parish of Sn¢)dland. Kent The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. Publlc benefrt In managing the charity's activities and finances during the financial year. the trustees were aware, and had due regard to, the Charity Commission's guidance on public benefit. Achievements and perfomiance Once again, the charity was successful in retaining 1 Oooh occupan¢y of the almshouse5 during the year. and collected maintènance contributions from all tenants. The charity continues to maintain contribub'on levels below the cap enforced by the Regulator for Social Housing. Due to the increase in the cost of living the charity decided not to increase the maintenance charge for the residents. Following the easing of Covid-19 restrictions, the charity has now completed the refurbishment of the kitchen and wet-room areas of two llats. Essential repairs and maintenance continued to take place as required so as to ensure high qualty living standards for all residents. Flnanclal mle During the year ended 31 December 2022. the charity collected contributions from residents towards the maintenance of the almshouses amounting to £44,152 (2021: £43,818) and generated other investment income of £7,041 (2021: £4,757). The total income was £51.193 (2021: £48,575) and of that amount £64,596 (2021.. £53,910) was expended, giving a deficit {2021.' for the year before movements on inve5tTnents of £13,403 (2021: £5,335).
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 (Continued...) An unrealised h)ssof £7,026 {2021 pn.. £13,348) was recognised in respect of the charity's listed inveslment portfolio during the year. The overall defiat for the year was £20.42912021 SurUS.. £8,013). As at 31 Dember 2022, the charity's totsl funds amounted to £327,262 {2021: £347,691). The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in pla to miti'gate exposure to the major risks. ReseNes Pollcy It is the poliq of the charity to ultimately maintain 'free' reserves (being that element of the unrestricted funds which is not funding fixed assets) of at least one yearfs maintenan contributions uplffted to cover anticipated expenditure for the following year. As at 31 December 2022 the free reserves of the charity amounted to £142,378 {2021." £145,038). The trustees consider the closing level (bng roughly equivalent to 3 (2021.. 4) years of running costs) and growth of free reserves to be adequate, allowing for unplanned expenditure. Designated funds at 31 December 2022 total £184,884 {2021.' £202,653) - see note 12 for details. Plans for future perfods The trustees have completèd an inspection of the almshouses, including ¢ommunal areas. All three stairfifts have been replaced with new ones as spare parts for the old ones became difficum to obtain. The charity will continue to improve the premises over the coming period for the benefit of all tenants. Structure, govemance and management The tTUStees of the charity who held office throughout the year were as foll0v." DrAAshbee (Chair) MrsA Coles Mrs S Hellyar Mr S Kingsbury Mrs S Shaw Mr P Hickmott Mrs V Tipp ffreasurer arKI Secretary) (Appointed 30 Jun8 2022) In aGcordanc8 Wlth the charity's scheme regulations, the body of trustees should consist of no more than seven competent persons, being tsvo Nominative Trustees (nominated by the Snodland Town Council for four year tenns) and five co-opted trustees each. to serve for p0d of 5 years. The office of chaiman is subject to election annually. with Dr A Ashbee being appointed chainnan on 10 November 2022.
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 (Continued...) Mrs v fipp and Dr A Ashbee retire by rotation at the 2022 Annual Meeting. They offer themselves for re- election. Mrs S Shaw and Mr Hickmott are the current representative trustees trom Snodland Town Council. The charity is regist8red with the Charity Commission in England and Wales, Charity number 229908. It is estsblished under Trust Deeds dated 30 July 1900 and 10 May 1904, and subsequently a Scheme approved by the Charity Commissioners dated 11 January 1980. It is also registe with the Homes England under the Housing and Regeneration Act 2008. The trustees forni a Committee of Management vthich meets 1c8 a year and on an ad-hoc basis to control and monlior the perfomiance of the charty. Day to day operations are controlled by the secretary. An annual strategic plan is prodUd to ensure the charty's housing strxk is kept fully maintained. As part of their on-going management of the charity, th8 trustses review the effectiveness of the system of intemal control which they acknowledge to be their responsibility. Golng concern At the time of appro1ng Ihe financial statements, the trusteès have a reasonable expectation that the charity has adequate resources to continue in operational estenCe for the foreseeable fuiure. Thus the trustees continue to adopt the going concern basis of 8c£ounting in preparing the financial statements. The tNstees report was approved by the Board of Trustees. l. kLkn CLk411) Mrs V Tipp (Chair) Dated: 27 October 2023
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES STATEMENT OF TRUSTEES, RESPONSIBILITES FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees are responsible for preparing the Trustees, Report arKI the financial StatentS in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The18w applicable to charities in England and Wdles requires the trustees to ppare financial statemènts for each financial year which give a truè and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financtal statements, the trustees are required to.. select suitable accounting policies and then apply them consistently,. obseNe the meth¢)ds and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent" state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial ststements,. and prepare th8 finanaal statements on the going concern basis unless it is inappropnate to presume that the charity will conb'nue in operation. The trustees are responsible for keeping suffient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements compty with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OFEUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES I report to the charity trustees on my examination of the accounts of Eustace Hook & Drummond Memorial Almshouses (the Trust) for the year ended 31 December 2022. Responslblllties and basls of rnport As the charty trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements ofth8 Charttres Act 2011 (Ihe Ad). I report in respect of rny examlnation of the Trust's accounts Carri out under Section 145 of the Act and in carying out my examination I have followed all applicable Dire¢tions given by the Charity Commission under Section 145{5)(b) of the Act. Independent examlneffs slatement I have completed my examination. I conllm that no material matters have come to my attention in conne(aion with the exarnination giving me cause to believe that in any material respect: accounting records were not kept in respect of the Trust as required by Section 130 of the Act., or the accounts do not accord with those records., or the a¢¢ounts do not compty with the applirAble requirements conceming the fomi and content of arxounts set out in the Charities (Accounts and Reports} Regulations 2008 other than any requirement thal the accounts give a true and fair view th1¢h is not a matter consid8red as part of an independent examination. I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understandiro of the accounts to be reached. A M Reid FCA ean Reid Chartered Accountants 1 Forstal Road Aylesford Kent ME20 7AU 28 October 2023
EUSTACE HOOK & DRUMMOND MEMORIAL ALiasHOUSES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestrfcted Funds 2022 Unrestricted Funds 2021 Notes Income from: Donations and legacies 44,152 43,818 Investments 7,041 4,757 Total inLx)me 51,193 48.575 Expendlture on: Charitable acllvittes 60,206 45,830 Other 4,390 8,080 Total expenditum 64,596 53,910 Net gains (losses) on investments (7,026) 13,348 Net (deficit)lincome (20,429) 8.013 Fund balances at 1 January 2022 347,691 339.678 Fund balances at 31 December 2022 12, 13 327,262 347,691 The statement of financial activtties indudes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022 Notes 2022 2021 Flxed assets Tangible assets Investments 18,757 166 127 184,884 37,514 165,139 202,653 Current assets Debtors Cash at bank and in hand 10 746 143 632 144.378 744 150 955 151.699 Credilors (amounts falling *Jue bmthin one year) 11 6.661 Net ¢utrent assets 142 378 145 038 Total assets less current liabilities 327,262 Income Funds Unrestricted F Designated funds: Fixed assets fund Investment fund Otherfvnd 3,562 166,127 15,195 7.124 165,139 30,390 Total designated funds General unrestricted funds 12 184.884 142 378 202,653 145,038 unStriCted funds 13 327,262 347,691 The financial a¢counts were approved by the Trustees on 27 October 2023. DrA Ashbee (ChairjTrustee Trustee Mrs V Tipp iTreasu Trustee and Secretary)
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng Pollcles Charlty Informatlon Eustace Hook and Drummond Memorial Almshouses (the 'charity') is registered as a charity with the Charity Commission in England and Wales, Charity number 229908. The registered address is 27 Hollow Lane, Snodland, Kent ME6 5LP. The thaiity is also registered wsth Homes England urKler the Housing and Regeneration Act 2008. The nature of the charity's operations and prinopal a¢tlvities Is to provide low cost housing for poor persons who are not less than sixty-five years of age and who were bom in, or have been an inhabitantfor not less than 10 years of, the parish of Snodland. 1.1 The financial statements have been prepared in accordance with the chaTity's goveming document, the Charibes Act 2011 and 'Accounting by Charities.. Statement of Recommended PraGtice' applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) Issued In October 2019 and UK Generally Accepted Accounting Practice. The charity Is a Publi¢ Benefit Entty as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 onty to the extent required lo provide a true and fair view. This departure has involved following the Ststement of Recommended Practice for charities apptying FRS 102 rather than the version of the Statement of Recommended Practbce which is referred to in the Regulations but which has since been viithdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehokl properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approng the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable fLrture. Thus the twstees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charitable funds UnrestricAed funds are available for use at the discretion ofthen trustees in furtherance of their tharitable objectives. 10-
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policles Icontlnued) Deswnated funds comprise funds which have been set aside at the discretion of the trustees for specffic purposes. The purposes and uses of the designated fijnds are set oul in the notes to the financial statemeTrts. 1.4 In¢ome Maintenance conlributions from residents are re¢ognised as income when received by the charity. Grants, donation income and income from investments are rectsJnised when receivable. 1.5 Expendtture All expenditure is a¢Unted for on an a¢¢ruals basis. Expenditure is allo&*ed to cost categories based on the amount attributable to that actiwty in th8 year. Irrecoverable VAT is allocated against the related expense. 1.6 Tanglble fixed assets Tangible fixed assets (including social housing properties) are stated at cost. The cost of housing properties includes the following.. Development expendrture, including major structural reftjrbishment vks. Amounts equal to acquisition and development allowances receivable. These costs are either temied 'qualifying costs, for the approved housing association schemes and are considered for mortgage loans by the appropriate lending authorities, or a met out of the Charity's r8S8ives. The cost of acquiring the Charity's housing land and bulldlngs, however, is not induded. riue to the almshouses is vested in the Charity under the terms ofthe Trust deeds dated 30 Juty 1900 arKI 10 May 1904. The chanty has therefore never incurred any cost in acquiring ts knd and buildings. The cost of housing and land and buildings is depreciated over the period to 2023. The trustees consider this to be a reasonable refiection of the expected useful lrfe of the development cost. 1.7 Flxed asset investments Fixed asset investments are initially measured at transaction price excluding transa¢Xion costs, and are subsequently measured at fair value at each reporting date. Change in fair value are recognised In net income l (expenditure) for the year. Transaction costs are expensed as incurred. 1.8 Impalrment of flxed assets At each reporting end date. the Charity reviews the carying values of it5 tsngible assets to determine whether there is any indication Ihat those assets have suffered an impainnent loss. If any such indication exists, the recoverable amount of th8 asset is estimated in order to detemine the extent of the impainnent loss {rf any). 11
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting pollcles (contlnued) 1.9 Cash and cash equlvalents Cash and cash equivalents include cash in hand and deposits held at call with banks and original maturrties of three months or less. 1.10 Flnanclal Instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Finanual Instrument Issues, of FRS 102 to all of its finanaal instfuments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes paty to the contractual provisions of the instrument. Financial assets and liabilitie5 are offset, v•th the net amounls presenled in the financial statement, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic ffnanclal assets Financial assets dassffied as recelvable within one year are not amortised. 9asic financial liabllitles Finanaal liabilities payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are dassified as urrent liabiif(ies if payment is due in one year or less. 1.11 Taxatlon The charty is an exempt Charty within the meaning of sthedule 3 of the Chanties Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Flnance Act 2010 and thèrefore it meets the dèfinition of a charitable company for UK corpor*ion tax wrposes. Crltlcal accountlng estlmatss and Judgements. In the application of the charty's accounting policies. the trustees are required to make judgements, eslirnates arKI assumptions about the carying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be reVant. Actual results may dtffer from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and fvture periods where the revisions affects both CUent and future periods. The following are the signfficant management judgements made in applying the accounting polici85 of the charity that have the most significant effert on amounts recognised in the financial statements: 12-
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 V81uation of tangible [ed a&sets Housing properties in tsngible red assets are valued at deemed cost at 1 January 2014. Valuation of fix8d 8&8ets inv8Stments Fixed asset investments are valued at dosing mid market value at the balance sheet date. Donatlons and legacles 2022 2021 Maintenance contributions 44.152 43,818 Income from Inve8knents 2022 2021 Income on investment fund 5,989 4,732 Interest receivable 1,052 25 7.041 4,757 Charltable Activitles 2022 2021 Rate5 and water 2,834 3.022 Light and heat 1,077 569 Property paIrS and maintenance 36,185 22.239 Insurance 1,353 1.242 Depreciation on freehold prop 18,757 18,758 60,206 45,830 Trustees The ¢harity had no employees during the year (2021.. Nil) 13-
EUSTACE HOOK & DRUMMOND MEMORIALALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 The secretary received aggregate fees for her work amounting to £1.789 {2021." £1,760) In 2022 the secretary was not reimbursed for any expenses. In 2021. the secretsry was reimbursed £110 in respect of Maintenan costs, which she paid for personally on behalf of the charlty. No other trustees received remuneration from the charity during the year {2021: £Nil). No expenses were paid or reimbursed to other trustees during the year12021 £Nil). Other 2022 2021 Bank charges and interest 105 Independent Examinerfs (2021.'Audiior's) remunerati¢)n 2,0 4,200 other non-audit fees 1,692 Secretary's fees 1.789 1.760 Subscriptions 502 300 Sundry 23 4,390 8,080 Tanglble flxed assets Freehold land and bulldlngs Cost At l January 2022 538,176 At 31 December 2022 538,176 Depreciation At 1 January 2022 500,662 14-
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Depreciation tharged in the year At 31 December 2022 519,419 Carying amount At 31 December 2022 18.757 At 31 December 2021 37,514 At the balance sheet date, the charity owned property vthich contained ten (2021.10) dwelling unts. All ten of the units were in us8 throughout the year for the one principal activity of the charty. The cost of acquiring the Charity's housing land and buildings is not included in the above. Tit to the almshouse is invested In the Charity under the temis of the trust deeds dated 30 July 19Crf) and 10 May 1904. The Charity has therefore never inCued any cost in acquinng ils land and buildings. Flxed asset Investments Listed investrnent Cost or valuatlon At 1 January 2022 185,139 Additions 8,014 Valuation charges (7.0261 At 31 Decèmber 2022 166,127 Carrying amount At 31 December 2022 166,127 At 31 D8cember 2021 165,139 Listed investments are valued at dosing mid-market value at the balance sheet date. The historical cost of fixed asset investrnents is £107.954. Material investments (comprising more than 5% of the charitls overall share portfolio by value) at the balance sheet date were as foll¢)ws: 15-
EUSTACE HOOK & DRUMMONO MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Market value M&G Chanty Multi Asset Fund Accumulation Units 97,675 BlathRock Charities UN Equity Fund AAccumulation Units 56,833 BlackRock Charities UN Bond Fund AAccumulation Units 7,660 BlackRock Charities UN Equty Fund A Income 3,659 BlackRock Charities UN Bond Fund A Income 300 10. Debtors: amounts falling due within one year 2022 2021 Prepayments and accTued income 746 744 11. Creditors: amounts falling due within one year 2022 2021 Accruals and deferred Income 2.000 6,661 Creditors relate to accrued costs. mainly independent examiner's fees (2021.'audrt fees) for the year, payable in the foll¢)wing year. 16-
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 12. Deslgnated funds The income funds of the chartty include the following designated funds which have been set aside OLrt of the unrestricted funds by the trustees for Specific purpose5'. Balance at 1 January 2022 Balance at 31 December 2022 New designth-ons Designations released Fixed asset fund 7,124 (3,562) 3,562 Investment fund 185.139 988 186,127 Other fund 30,390 (15,195) 15,195 202,653 988 (18.75n 184,884 Balance at 1 January 2021 Balance at 31 Dember 2021 New designations Designations released Fixed asset fvnd 10,686 (3,562) 7,124 Investment fund 145,019 20,120 165,139 other fund 45,586 (15,196) 30,390 201,291 20,120 {18,758) 202.653 Fixed asset fund - this fund holds the investment propety whi¢h is used as the main premises of the Charity and for income generation. Invesbnent fund - these funds are invested to maximise total retum and generate income. Other fund - these funds relate to a govemment grant first issued in 2004, vthich is being written down ors a straight line basis to 31 December 2023. The Fixed asset fund and Other fund are partly redesignated as Investment fund in line wrth the deprecialion of fixed assets. 17-
EUSTACE HOOK & DRUMMOND MEMORIAL ALMSHOUSES NOTES TO THE FINANICAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 13. Analysis of net assets between funds Unrestrlcted Funds 2022 Unrestrlcted Funds 2021 Fund balances at the reporting date are represented by.. Tangible assets 18,757 37,514 Investments 166,127 165,139 Current assets 142,378 145,038 327,262 347,691 14. Flnanclal Instruments 2022 2021 Carying value of flnancial assets Instruments measured at fair value through profit or loss 166,127 165,139 2022 2021 Carrylng value of financlal Ilabllltle8 Measured at amortised ¢J>St 2,491 6.661 16. Related party transactlons There were no related party transactions durifvj 2022,. Note 6 explains the related parties transaction in 2021. 18-