2021-12-31-accounts - Aged Merchant Seamen's Homes

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Registered Charity Number 230292

Aged Merchant Seamen's Homes Financial Statements

For the Year Ending 31 December 2021

JANE ASCROFT ACCOUNTANCY LIMITED

Chartered Accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XP

Aged Merchant Seamen's Homes

Financial Statements

Year Ended 31 December 2021

Contents	Page
Officers and Professional Advisers	1
Trustees' Report	2
Accountants' Report to the Members	4
Profit and Loss Account	5
Balance Sheet	6
Notes to the Financial Statements	7
The Following Pages Do Not Form Part of the Financial Statements
Detailed Profit and Loss Account	12
Notes to the Detailed Profit and Loss Account	13

Aged Merchant Seamen's Homes

Officers and Professional Advisers

The Board of Directors

Registered Office

Accountants

Councillor B Mclennan Captain I E Grant Captain S Healy Captain J Jilla Mr J Cooper Mr I Kay Councillor L Scanlan 27 Trafalgar Square Sunderland SR1 2BW Jane Ascroft Accountancy Limited Chartered Accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XP

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Aged Merchant Seamen's Homes

Trustees' Annual Report

Year Ended 31 December 2021

Introduction

The trustees present their report with the financial statements of the association for the year ended 31 December 2021. The trustees have adopted the provisions of the Housing SORP 2018: Statement of Recommended Practice issued by the National Housing Federation preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS 102) (effective 1 January 2019).

Objectives

The principal activity of the association continues to be the provision of affordable housing for people in necessitous circumstance.

Review of developments, activities and achievements

The major refurbishment of the ground floor, bar 3 units, was completed and snagging works signed off. The occupancy levels have increased since contractors have completed and left the site. Stabilising the income from the scheme. Unplanned works were carried out to the roof following Storm Arwen.

Following the Fire Risk Assessment several improvements are underway to enhance Fire Safety and Health & Safety measures at the scheme. The Trustees have worked closely with Tyne & Wear Fire & Rescue Service to plan and implement the works.

The Trustees and Management Company, Back on the Map, continued to provide robust resident support throughout the pandemic in line with Covid Safe procedures. Financial advice and support has been provided by Nautilus Welfare Fund, who offer specialist services for the wider community of retired and needy seafarers and their dependents.

The Trustees and Residents welcomed HRH Princess Anne on the 21st July 2021. Residents enjoyed meeting HRH and partaking in a garden party. The event was also attended by the Lord Lieutenant and other dignitaries including representatives from the Sir James Knott and the Sir Tom Cowie Foundations.

Following the resignation of Cap. Dibble, a new Treasurer was appointed and Ian Kay stepped into the role on 10th June 2021.

During the transition period additional support was received from the Management Company in terms of financial oversight, payment processing and production of the Management Accounts.

Future plans

There still remains considerable work to make the remaining 3 flats suitable for habitation and a programme of works has been agreed. Obviously this is dependent on finance being available however grants may be sought to support with the capital expenditure.

The Community Room refurbishment was completed and reopened to residents in January 2021. There is an ongoing weekly Housing drop-in and thematic informative coffee mornings planned for the room alongside resident led events and celebrations.

Legal Status

The Aged Merchant Seamen's Homes is an unincorporated charity, ran by the board of Trustees. It is registered with the Charity Commission and with the Regulator of Social Housing as a social housing provider, registration number A1634. In accordance with the Housing SQRP 2018 paragraph 3.4 the association is a public benefit entity.

The trustees have considered the Code of Governance produced by the National Housing Federation. The trustees strive to comply with the spirit of the recommendations in the Code.

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Aged Merchant Seamen's Homes

Trustees' Annual Report (continued)

Year Ended 31 December 2021

Organisation

The administration and management of The Aged Merchant Seamen's Homes is exercised by Back On The Map Limited, whose registered office is 67 Toward Road, Hendon, Sunderland, England, SR2 8JG.

Financial Controls

The financial controls have been reviewed during the year.

Statement of Trustees' Responsibilities

Housing Association and charity legislation require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit for that period. In preparing the financial statements, suitable accounting policies have been adopted and consistently applied to the best of the trustees' knowledge and belief by reference to reasonable and prudent judgements and estimates. Applicable accounting standards have been followed.

The trustees are responsible for maintaining adequate accounting records, for safeguarding the assets of the charity and for preventing and detecting fraud and other irregularities. The trustees are also required to indicate where the financial statements are prepared other than on the basis that the charity is a going concern.

These accounts were approved by the trustees and authorised for issue on ........................, and are signed on their behalf by:

.......................…

Captain I E Grant

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Aged Merchant Seamen's Homes

Accountants' Report to the Members of Aged Merchant Seamen's Homes

Year Ended 31 December 2021

We report on the unaudited accounts for the year ended 31 December 2021 set out on pages 5 to 10.

Respective Responsibilities of the Trustees and the Reporting Accountants

As described on page 1 the trustees of the Aged Merchant Seamen’s Homes are responsible for the preparation of the accounts, and they consider that the Aged Merchant Seamen’s Homes is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion.

Basis of Opinion

Our work was conducted in accordance with the Statement of Standards for Reporting Accountants, and so our procedures consisted of comparing the accounts with the accounting records kept by the association, and making such limited enquiries of the officers of the association as we considered necessary for the purposes of this report. These procedures provide only the assurance expressed in our opinion.

Opinion

In our opinion:

 the accounts for the year ended 31st December 2021 are in accordance with the accounting records kept by the Aged Merchant Seamen's Homes under paragraph 135(2)(a) of the Housing and Regeneration Act 2008.

having regard only to, and on the basis of, the information contained in the accounting records:
the accounts comply with the requirements of the Charities Act 2011;
the Aged Merchant Seamen's Homes has satisfied the condition for exemption from an audit of the accounts for the year ended 31st December 2021 specified in section 136(6) of the Housing and Regeneration Act 2008;
the accounts comply with the requirements of the Housing Regeneration Act 2008 and the
Accounting Direction for private registered providers of social housing in England 2019.

JANE ASCROFT ACCOUNTANCY LIMITED Chartered Accountants

Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XP

........................

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Aged Merchant Seamen's Homes

Profit and Loss Account

Year Ended 31 December 2021

				2020
	Note	£	£	£
Income	2		126,499	118,694
Operating Costs
Administrative expenses			165,089	170,852
			`─────────`	`─────────`
Operating Loss			(38,590)	(52,158)
Interest receivable and similar income	4		9	65
			`────────`	`────────`
Loss on Ordinary Activities Before Taxation			(38,581)	(52,093)
Taxation on surplus on ordinary activities	5		–	–
			`────────`	`────────`
Retained Loss for the Year			(38,581)	(52,093)
			`════════`	`════════`

The association has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the association are classed as continuing.

The notes on pages 7 to 10 form part of these financial statements.

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Aged Merchant Seamen's Homes

Balance Sheet

31 December 2021

		2021		2020
	Note	£	£	£
Fixed Assets
Housing properties	6		2,429,571	2,492,145
			`────────────`	`────────────`
Current Assets
Debtors	7	7,032		8,863
Cash at bank		102,961		93,567
		`─────────`		`─────────`
		109,993		102,430
Creditors: amounts falling due within one year	8	20,489		21,080
		`─────────`		`─────────`
Net Current Assets			89,504	81,350
			`────────────`	`────────────`
Total Assets Less Current Liabilities			2,519,075	2,573,495
Creditors: amounts falling due after more than
one year	9
Deferred government grants			(443,496)	(459,335)
			`────────────`	`────────────`
Net assets	10		2,075,579	2,114,160
			`════════════`	`════════════`
Capital and Reserves
Designated reserves			305,770	305,770
Profit and loss account			1,769,809	1,808,390
			`────────────`	`────────────`
Shareholders' Funds	10		2,075,579 `════════════`	2,114,160 `════════════`

For the year ended 31 December 2021 the association was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Trustees' responsibilities:

The members have not required the association to obtain an audit of its accounts for the year in question in accordance with section 476; and
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

These accounts were approved by the trustees and authorised for issue on ........................, and are signed on their behalf by:

.......................…

Captain I E Grant

Registered Charity Number: 230292

The notes on pages 7 to 10 form part of these financial statements.

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Aged Merchant Seamen's Homes

Notes to the Financial Statements

Year Ended 31 December 2021

1. Accounting Policies

Basis of Accounting

The financial statements have been prepared under the historical cost convention, and in accordance with applicable UK accounting standards.

The financial statements of the association are prepared in accordance with Financial Reporting Standard 102 (FRS 102), the Statement of Recommended Practice for Registered Social Housing Providers (Housing SORP 2018) and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015.The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on the going concern basis, which assumes that the association will continue in operation existence for the foreseeable future, which the Trustee's consider appropriate.

Cash Flow Statement

The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (Revised 1996) from including a cash flow statement in the financial statements on the grounds that the association is small.

Income

Income represents rent and service charges receivable from residents' net of rent and service charge losses from voids. Income is included in the financial statements on an accrual's basis, when it becomes receivable. Other income relates to charitable grants, bursaries and donations made to the association, and is recognised when it is received.

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.

Fund 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Reserves policy

It is the policy of the Trust to maintain unrestricted funds at a level which equates to at least twelve months unrestricted expenditure. The housing properties need ongoing upkeep and therefore a prudent level of additional reserves is maintained to cover any anticipated and unforeseen building repair costs.

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Aged Merchant Seamen's Homes

Notes to the Financial Statements

Year Ended 31 December 2021

1. Accounting Policies (continued)

Fixed Assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Housing properties - Straight line over 50 years

Housing properties & depreciation

Housing Properties are stated at historical costs, this being their purchase price together with incidental costs of acquisition, administration costs and interest payable up to the date of completion. Depreciation of the housing properties is charged over the useful life of 50 years which the Trustee's considered to be appropriate.

Financial instruments

The company only has financial assets and financial liabiliti_es of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

Government grants

The association received a social housing grant in 1992 to renovate the housing properties. The deferred grant is amortised over the useful life of the housing properties, being 50 years, and an annual charge is taken to the Statement of Comprehensive Income. Social Housing Grants are repayable under some circumstances, primarily following the sale of properties, but the amount due is restricted to the net proceeds of sale where appropriate. Where the Social Housing Grant becomes repayable, it is is included as a current liability until it is repaid.

2. Taxation

Aged Merchant Seamen's Homes is a registered charity and is therefore exempt from liability to taxation on its oncome and capital gains.

3. Trustees' Remuneration

Trustees received no remuneration during the current or previous year and were reimbursed expenses of £211 (2020 - Nil)

4. Interest Receivable and Similar Income

	2021	2020
	£	£
Bank interest receivable	9	65
	`════`	`════`

5. Employees

The average number of employees in the year was nil (2020 - nil).

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Aged Merchant Seamen's Homes

Notes to the Financial Statements

Year Ended 31 December 2021

6. Housing Property

			Housing
		Land	Property	Total
		£	£	£
	Cost
	At 1 January 2021	61,077	3,040,959	3,102,036
	Additions	–	19,098	19,098
		`────────`	`────────────`	`────────────`
	At 31 December 2021	61,077	3,060,057	3,121,134
		`════════`	`════════════`	`════════════`
	Depreciation
	At 1 January 2021	–	609,891	609,891
	Charge for the year	–	81,672	81,672
		`────`	`─────────`	`─────────`
	At 31 December 2021	–	691,563	691,563
		`════`	`═════════`	`═════════`
	Net Book Value
	At 31 December 2021	61,077	2,368,494	2,429,571
		`════════`	`════════════`	`════════════`
	At 31 December 2020	61,077	2,431,068	2,492,145
		`════════`	`════════════`	`════════════`
7.	Debtors
			2021	2020
			£	£
	Other debtors		4,073	–
	Prepayments and accrued income		2,959	8,863
			`───────`	`───────`
			7,032	8,863
			`═══════`	`═══════`
8.	Creditors: amounts falling due within one year
		2021		2020
		£	£	£
	Other creditors:
	Property income received in advance	646		813
	Deferred government grants	15,839		15,839
		`────────`		`────────`
			16,485	16,652
	Accruals and deferred income		4,004	4,428
			`────────`	`────────`
			20,489	21,080
			`════════`	`════════`
9.	Creditors: amounts falling due after more than one year
			2021	2020
			£	£
	Other creditors:
	Deferred government grants		443,496	459,335
			`═════════`	`═════════`

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Aged Merchant Seamen's Homes

Notes to the Financial Statements

Year Ended 31 December 2021

10. Reconciliation of Movements in Shareholders' Funds

	2021	2020
	£	£
Loss for the financial year	(38,581)	(52,093)
Opening shareholders' funds	2,114,160	2,166,253
	`────────────`	`────────────`
Closing shareholders' funds	2,075,579	2,114,160
	`════════════`	`════════════`

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Aged Merchant Seamen's Homes

Management Information

Year Ended 31 December 2021

The following pages do not form part of the statutory financial statements .

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Aged Merchant Seamen's Homes

Detailed Profit and Loss Account

Year Ended 31 December 2021

	2021	2020
	£	£
Income	126,499	118,694
Overheads
Administrative expenses	165,089	170,852
	`─────────`	`─────────`
Operating Loss	(38,590)	(52,158)
Investment income	9	65
	`────────`	`────────`
Loss on Ordinary Activities	(38,581)	(52,093)
	`════════`	`════════`

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Aged Merchant Seamen's Homes

Notes to the Detailed Profit and Loss Account

Year Ended 31 December 2021

	2021		2020
	£	£	£
Establishment Expenses
Services	24,947		16,630
Routine maintenance	15,256		12,486
Cyclical maintenance	10,815		26,603
	`────────`		`────────`
		51,018	55,719
			`────────`
General Expenses
Other costs	2,954		7,380
Management	29,445		26,717
Depreciation	81,672		81,036
	`─────────`		`─────────`
		114,071	115,133
		`─────────`	`─────────`
		165,089	170,852
		`═════════`	`═════════`
Interest Receivable
Investment income		9	65
		`════`	`════`

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