2022-03-31-accounts

The Flood Charity

Annual Report and Financial Statements Year Ended 31 March 2022

Registered with the Charity Commission Number 230785 Registered with the Home England Number A4037

Annual Report and Financial Statements For the year ended 31 March 2022

	Pages
Strategic Report	2-4
Report of the Board	5-6
Independent Auditor’s Report	7-9
Statement of Comprehensive Income	10
Statement of Financial Position	11
Statement of Changes in Reserves	12
Statement of Cash Flows	13
Notes forming part of the Financial Statements	14-22

Advisers and bankers

Clerk and Registered Office	Bankers	Auditor
Michelle Holt The Heals Building Suites A&B 3rd floor 22 – 24 Torrington Place London WC1E 7HJ	Barclays Bank plc. 1 Churchill Place Canary Wharf London E14 5HP	BDO LLP 55 Baker Street London W1U 7EU

1

Strategic Report For the year ended 31 March 2022

Structure, Governance and Management

Trustee

Anchor Hanover Group is the Corporate Trustee.

The Corporate Trustee receives no remuneration other than the Management Charges disclosed in note 3 and charges for other services provided as disclosed in note 16 of the notes to the Financial Statements.

Details of the membership, structure and policy for admitting new members to the Board of Anchor Hanover Group can be found in the annual report of the Association and on their website at www.anchor.org.uk.

Code of Governance

The Board of the Corporate Trustee, Anchor Hanover Group (“Anchor”), has adopted the Financial Reporting Council’s UK Corporate Governance Code 2018 (the “UKCGC”) as its appropriate code of governance. The UKCGC is applied on a ‘comply or explain’ basis and the Board of Anchor assess their compliance with the code on an annual basis. A summary of this assessment can be found in Anchor’s Annual Report and Financial Statements 2022, page 26.

Employees

The Charity has no employees. The administration of the Charity is undertaken by employees of Anchor Hanover Group.

Risk management

The Board of the Corporate Trustee has examined the major strategic, business and operational risks which the Charity faces and confirms that systems and procedures, including an internal audit programme, are in place so as to mitigate the significant risks that the Charity may face.

Objectives and Activities

The governing instrument for the Charity is an Order by the Charity Commissioners dated 5 January 1934 and affected by the provision of the Charities Act 1960.

The area of benefit is the eight parishes of Amesbury, Bulford, Durrington, Larkhill, Orcheston, Shrewton, Tilshead and Winterbourne Stoke in the County of Wiltshire. The Charity has 12 (2021:12) general needs properties situated in Orcheston, Shrewton and Tilshead. The objective of the Charity is to provide accommodation for needy persons who are inhabitants of the area of benefit.

Governance and Financial Viability Standard

The Corporate Trustee is Anchor Hanover Group a Private Registered Provider. The Board of Anchor Hanover Group has assessed that it complies with the Governance and Financial Viability Standard 2015 issued by the Regulator of Social Housing.

Achievements and Performance

The Charity receives funds from charges raised on residents in the form of service charges and rent. The service charges are raised to cover the cost of providing support to the residents in relation to the Estate Manager, maintenance of the grounds and the maintenance of equipment. Rents are charged to the residents in line with Government guidance and are used to cover maintenance of the properties in the year and to provide resources to meet cyclical and major repairs over a number of years.

Charitable and political contributions

No contributions were made in the financial year. (2021: £Nil).

2

Strategic Report (continued) For the year ended 31 March 2022

Financial Review

The activities for the year are set out on page 10 in the Statement of Consolidated Income. There is a surplus for the year of £59,941 (2021: £71,961). This decrease is mainly attributed to a reduction in surplus on revaluation of current asset investments, £14,563, (2021: was a gain of £27,374).

Capital expenditure £17,639 for the year (2021: £21,314).

Plans for Future Periods

In line with the Charity’s objective to maintain the properties in good repair and in order to provide accommodation for rent, the Charity continues to review the fabric of the building via planned works programmes and stock condition surveys undertaken by Anchor Hanover Group. At this time there is no immediate significant expenditure required but this will be kept under annual review.

Principal risks and uncertainties

This includes; effects that have resulted from the UKs exit from the European Union, increased fuel costs, macroeconomic impacts on the global economy linked to the Ukraine crisis, and high inflation levels in the UK.

All of these factors are contributing to the “cost of living” crisis which we are actively managing as a key area of risk, with focus on maintaining service delivery, managing and anticipating financial impacts, and monitoring the potential negative impacts of the conditions on our customers and colleagues.

Maintenance of The Flood Charity’s properties is dependent on the timely and effective performance by third party contractors of their obligations, exposing us to risk of potentially having less control over the quality of the services than if we were providing them directly. The performance of contracts may be subject to disruption for a variety of reasons including availability of materials, work stoppages, labour constraints, and is impacted by macroeconomic conditions.

We work closely with contractors to avoid such problems, undertake appropriate due diligence and procurement procedures and avoid concentration risk.

The Board will continue to review plans in order to ensure that services are delivered in a safe, effective way. At the date of this report, the return to “normality” following the roll out of the Covid-19 vaccination is becoming more certain, although it should be noted that many implications resulting from the virus are to an extent, outside the control of management and so additional procedures remain in place to ensure that cash flow and financial stability is effectively managed.

Going concern

After making enquiries and examining major areas which could give rise to significant financial exposure, the directors are satisfied that no material or significant exposures exist other than as reflected in these Financial Statements and the company has adequate resources to continue its operations for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these Financial Statements.

Value for money statement

As a corporate trust of the Anchor Hanover Group, (AHG) the strategic and operational management of the properties is fully aligned to the wider stock portfolio of AHG. As such the approach to VFM for the Corporate Trusts is fully integrated and therefore does not differ to the approach adopted for AHG. For a copy of the selfassessment we would therefore refer to that contained with Anchor’s annual report.

However under the Value for Money Standard issued by the Regulator of Social Housing in April 2018 and the subsequent Value for Money Metrics Technical Note Guidance updated in May 2021, registered providers with a stock of less than 1,000 units are required to publish their VfM metrics. These are shown below and are in addition to the overall approach taken to achieving value for money by the Board of the Corporate Trustee.

			2022	2021
Metric	1	- Re-investment %	7%	9%

3

Strategic Report (continued) For the year ended 31 March 2022

This metric looks at the investment in properties (existing stock as well as New Supply) as a percentage of the value of total properties held. For the Charity with its limited resources the focus is on maintaining its existing properties into the future. Planned and routine maintenance are a part of this and all, but the largest planned works are expended through the Statement of Comprehensive Income and charged to the cyclical and extraordinary repairs reserves.

		2022	2021
Metric	2a – New supply delivered (social housing units) %	0%	0%
Metric	2b – New supply delivered (non-social housing units) %	0%	0%

This metric sets out the number of new social housing and non-social housing units that have been acquired or developed in the year as a proportion of total social housing units and non-social housing units owned at period end. The Charity’s focus is on maintaining its existing properties into the future and currently does not have the financial capacity to develop new properties.

Metric 3 - Gearing %

2022	2021
0%	0%

This metric assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. The Charity has no loans or overdraft facilities. The tangible fixed assets which the cash and loans are compared to is also relatively low as there is no cost associated with the original cost of the properties, only subsequent capitalised repairs expenditure.

			2022	2021
Metric	4	– EBITDA MRI interest cover %	0%	0%

This metric is a key indicator for liquidity and investment capacity. It seeks to measure the level of surplus that a registered provider generates, adjusted for amortisation and depreciation, compared to interest payable. The Charity has no loans or overdraft facilities and, therefore, no interest payable.

			2022	2021
Metric	5	– Headline social housing cost per year	1,487	2,012

This metric assesses the headline social housing cost per unit as defined by the Regulator.

		2021	2021
Metric	6a – Operating margin (social housing lettings) %	58%	54%
Metric	6b – Operating margin (overall) %	59%	55%

This metric demonstrates the profitability of operating assets before exceptional expenses are taken into account. Increasing margins are one way to improve the financial efficiency of a business. In assessing this ratio, it is important that consideration is given to registered providers’ purpose and objectives (including their social objectives).

Metric 7 – Return on Capital Employed (ROCE) %

2022	2021
7%	8%

This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources.

4

Report of the Board For the year ended 31 March 2022

Statement of the Board of the Corporate Trustee’s responsibilities in respect of the Annual Report and the Financial Statements

Under the trust deed and rules of the charity and charity law, the trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the Statement of Recommended Practice have

• been followed, subject to any material departures disclosed and explained in the financial statements;

• state whether the financial statements comply with the trust deed and rules, subject to any material

• departures disclosed and explained in the financial statements; and

• assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to

• going concern; and

• use the going concern basis of accounting unless they either intend to liquidate the charity or to cease

• operations or have no realistic alternative but to do so.

The Board of the Corporate Trustee is required to act in accordance with the governing instrument of the Trust, within the framework of trust law. The Board of the Corporate Trustee is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the Trust at that time and enable the Board of the Corporate Trustee to ensure that its Financial Statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The Board of the Corporate Trustee has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities.

Awareness of relevant audit information

The Members of the Board of the Corporate Trustee who held office at the date of approval of this Report of the Board of the Corporate Trustee confirm that, so far as they are each aware, there is no relevant audit information of which the Charity’s auditor is unaware and each Member of the Board of the Corporate Trustee has taken all the steps that they ought to have taken as Members of the Board of the Corporate Trustee to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

Auditor

BDO LLP has expressed its willingness to continue in office as auditor to The Flood Charity. A resolution to reappoint BDO LLP as auditor will be approved by the Board of Anchor Hanover Group.

By order of the Board of the Corporate Trustee

Sarah Jones Kate Smith Michelle Holt Executive Board Member Executive Director Clerk

Date: 6 September 2022

5

Independent Auditor’s Report For the year ended 31 March 2022

Independent auditor’s report to the Trustee of The Flood Charity

Opinion on the financial statements

In our opinion, the financial statements:

• give a true and fair view of the state of the Charity’s affairs as at 31 March 2022 and of incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

We have audited the financial statements of The Flood Charity (“the Charity”) for the year ended 31 March 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: the Strategic report and the Directors report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011, requires us to report to you if, in our opinion;

6

Independent Auditor’s Report (continued) For the year ended 31 March 2022

• the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or

• adequate accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Board of the Corporate Trustee’s statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Agreement of the financial statement disclosures to underlying supporting documentation;

• Identifying and testing journal entries, with a focus on manual journals to revenue and journals indicating large or unusual transactions based on our understanding of the business;

• Challenging assumptions, accounting estimates and judgements made by the Directors, specifically classification of housing properties;

• Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;

• Obtaining an understanding of the control environment in monitoring compliance with laws and regulations

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

7

Independent Auditor’s Report (continued) For the year ended 31 March 2022

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Cliftlands BDO LLP, statutory auditor London, UK

6 September 2022

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

8

Statement of Comprehensive Income For the year ended 31 March 2022

Note Turnover 2 Operating costs 2 Operating surplus Interest receivable and similar income 5 Surplus on ordinary activities Surplus on revaluation of current asset investments 8 Total comprehensive income for the year	2022 2021 £ £ 76,468 80,252 (31,178) (35,978) ———— ———— 45,290 44,274 88 313 ———— ———— 45,378 44,587 14,563 27,374 ———— ———— 59,941 71,961 ~~————~~ ~~————~~

There is no material difference between the surplus for the year as stated above and its historical cost equivalent.

All amounts relate to continuing activities.

The notes on pages 14 to 22 form part of these Financial Statements.

9

Statement of Financial Position For the year ended 31 March 2022

2022 Note £ Fixed assets Housing properties 9 Current assets Trade and other debtors 10 3,536 Short term investment 11 403,348 Cash at bank and in hand 575 Less Creditors: amounts falling due within one year 12 (4,724) ———— Net current assets Total assets less current liabilities Creditors Amounts falling due after one year 13 Capital and reserves Revenue reserves Designated reserves:	2022 2021 2021 £ £ £ 239,322 234,987 17,818 338,562 575 (7,209) ———— 402,735 349,746 ———— ———— 642,057 584,733 (62,824) (65,441) ———— ———— 579,233 519,292 ~~————~~ ~~————~~ 454,090 413,050 125,143 106,242 ———— ———— 579,233 519,292 ~~————~~ ~~————~~

The notes on pages 14 to 22 form part of these Financial Statements.

The Financial Statements were approved for issue on behalf of the Corporate Trustee, Anchor Hanover Group, on 6 September 2022 and were signed by:

Sarah Jones Executive Board Member

Kate Smith Executive Director

Michelle Holt Clerk

Registered with the Charity Commission Number 230785 Registered Housing Association Number A4037

10

Statement of Changes in Reserves For the year ended 31 March 2022

			Major	Cyclical
	Revenue	Recoupment	Repairs	Maintenance	Total
	Reserves	Reserve	Reserve	Reserve	Reserves
	£	£	£	£	£
At 1 April 2020	351,289	32,793	24,179	39,070	447,331
Transfers (to)/from other reserves	(10,200)	-	3,000	7,200	-
Surplus in year	71,961	-	-	-	71,961
	————	————	————	————	————
At 31 March 2021	413,050	32,793	27,179	46,270	519,292
Transfers (to)/from other reserves	(18,901)	1,131	10,570	7,200	-
Surplus in year	59,941	-	-	-	59,941
	————	————	————	————	————
At 31 March 2022	454,090	33,924	37,749	53,470	579,223
	————	————	————	————	————

The notes on pages 14 to 22 form part of these Financial Statements.

11

Statement of Cash Flows For the year ended 31 March 2022

Cash flow from operating activities Operating surplus for the year Depreciation of tangible fixed assets Amortisation of capital grant Decrease) / (increase) in trade and other debtors (Decrease) / Increase in trade and other creditors Cash flow from investing activities Purchase of tangible fixed assets Purchase of investments Interest received Fair Value Investments Net change in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March Analysis of cash and cash equivalents Cash in hand Monies on deposit Total cash and cash equivalents

2022 2021 £ £ 45,290 44,274 13,304 12,730 (2,618) (2,618) 14,282 (16,154) (2,486) (1,384) ———— ———— 67,773 36,848 (17,639) (21,314) (1,131) (1,131) 88 313 - - ———— ———— 49,091 14,716 213,076 198,360 262,167 213,076 ———— ———— 49,091 14,716 ~~————~~ ~~————~~ 575 575 261,592 212,500 ———— ———— 262,167 213,076 ~~————~~ ~~————~~

The notes on pages 14 to 22 form part of these Financial Statements.

12

Notes forming part of the Financial Statements For the year ended 31 March 2022

1(a) Accounting policies

General Information

The Charity provides housing to elderly people. The Charity is a public benefit entity and a registered with the both the Regulator of Social Housing – registration number A4037 and Charities Commission in the United Kingdom - registration number is 230785. The registered office is The Heals Building Suites, A & B 3rd floor, 22 – 24 Torrington Place, London, WC1E 7HJ.

The Financial Statements have been prepared in accordance with Financial Reporting Standard 102 – the financial reporting standard applicable in the UK and Republic of Ireland (FRS102), the Statement of Recommended Practice: Accounting by Registered Social Landlords Update 2018 (SORP), the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Basis of accounting

The Financial Statements are prepared on the historic cost and accruals basis of accounting, as modified to include the fair value of financial instruments and on the basis of going concern. The Financial Statements are presented in Sterling (£).

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Financial Statements.

Going concern

The Charity’s business activities and factors that are likely to affect its plans for future periods are set out in the Strategic Report. The Charity has in place adequate unrestricted reserves and resources to fund its financial obligations as they fall due and its day to day operations.

On this basis, the Corporate Trustee has a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and Financial Statements are signed. For this reason, the Charity has adopted the going concern basis in preparing its Financial Statements.

Turnover

Turnover represents rental income from licensees and service charges receivable and turnover is recognised when the Charity is entitled to it. Rental income and service charges receivable are shown net of voids. Void losses are only recognised where the properties are available for letting.

Revaluation of current asset investments

Current assets investments are stated at market value. Any unrealised surplus or deficit arising on revaluation of the investments is recognised in the Statement of Comprehensive Income. The aggregate realised surplus or deficit arising on the sale of investments is reflected in the Statement of Comprehensive Income.

13

Notes forming part of the Financial Statements For the year ended 31 March 2022

1(a) Accounting policies (continued)

Designated reserves

The Charity sets aside a reserve for building repairs and maintenance in accordance with a planned programme of work. This includes external painting, re-painting, repairs and internal decoration of common parts and the estate manager’s accommodation.

Fixed assets

Fixed assets are stated using the cost model at cost less cumulative depreciation less impairment. Fixed assets include housing properties held for social benefit purposes and scheme equipment.

Housing properties are principally properties available for rent and shared ownership properties. Housing properties are stated at cost less accumulated depreciation and impairment. Where housing properties are acquired from third parties the cost is their purchase price together with any costs of acquisition, improvement and interest payable.

Subsequent expenditure to housing properties

Works to existing properties which replace a component that has been identified separately for depreciation purposes, along with those works that result in enhancing the economic benefits of the properties, are capitalised as improvements. Where a component is replaced the cost and related depreciation are eliminated from tangible fixed assets. Economic benefits are enhanced if work performed results in an increase in rental income, a reduction in future maintenance costs or a significant extension to the useful economic life of a property. Shared ownership properties are split between current and non-current assets based on the anticipated proportion to be a first tranche sale with the first tranche proportion recognised as a current asset. Scheme equipment is shown at cost less cumulative depreciation.

Depreciation

Freehold land is not depreciated.

Under FRS102, housing properties are required to be depreciated from the latest of completion date and acquisition date. The Charity has elected to depreciate historic cost over a period of 50 years from the applicable date.

Using component costing principles housing properties are divided into components which are depreciated at the following annual rates:

Component	Life (Years)	Depreciation
Building structure, roofing, drainage, roadways and footpaths	50	2.0%
Doors and windows	30	3.3%
Kitchens and bathrooms	25	4.0%
Boundary fences and security	20	5.0%
Heating boilers	15	6.6%

14

Notes forming part of the Financial Statements For the year ended 31 March 2022

1(a) Accounting policies (continued)

Social Housing Grant

Social Housing Grant (SHG) is a capital grant made to the Charity towards the cost of acquiring and/or building housing for rent or sale. Under shared ownership arrangements, Social Housing Grant is received from Homes England and the Greater London Authority (GLA) on a basis related to cost but varying according to area and type of scheme.

Social Housing Grant is included in Creditors: amounts falling due after more than one year in the Statement of Financial Position and is amortised annually to the Statement of Comprehensive Income over the expected useful lives of the assets to which they relate or in periods in which the related costs are incurred. The accumulated amortised government grants represent contingent liabilities and materialises when the relevant property to which the amortised grant ceases to be used for social housing purposes usually due to disposal of the housing asset.

Where grant is received on items treated as revenue expenditure, it is treated as revenue grant and is recognised as other income in the Statement of Comprehensive Income when the performance conditions have been met.

Grants are usually repayable unless formally abated, waived or recycled. Therefore they may be repayable in certain circumstances, primarily the sale of property. This can be the case even where the grant has been treated as a revenue grant for accounting purposes.

Financial instruments - Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors / creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

In line with FRS 102 section 34; the Charity as a public benefit entity, has accounted for as concessionary loans all debtors or creditors that would have been classified as financing transactions such as deferred payment arrangement and are therefore being carried in the Statement of Financial Position at amortised cost.

Concessionary loans are financing arrangements between a public benefit entity such as the Charity and another party at nil percent or at below market rate of interest that are not repayable on demand and are for the purposes of furthering the objectives of the public benefit entity.

Short-term investments

Investments made by the Flood Charity are a combination of short term bank deposits and fund investments managed by specialist managers and provided for non profit investors.

The short term bank deposits are classified as basic and recognised at amortised cost using an effective interest rate.

The fund investments are classified as complex instruments and recognised at market value. Market value is based on a publically available price. Gains and losses on revaluation of fund investments are included in the Statement of Comprehensive Income.

Impairment of debtors

Provision is made for the impairment of current rent debtors when the debt is overdue by 90 days or more. The provision is for 100% of the amount overdue. Provision for the debts of former tenants is provided at 100%.

Sales ledger debts aged 3-5 months are provided at 10% of the amount due. Those more than 6 months old are provided at 25%. After this time a decision will be made concerning the write-off of the debt.

15

Notes forming part of the Financial Statements For the year ended 31 March 2022

1(a) Accounting policies (continued)

Financial instruments - Basic financial instruments (continued)

Other long-term creditors

Other long-term creditors include the costs of arranging long-term funding and premiums received on the issue of bonds. These amounts are amortised over the period of the underlying financial instrument. Also included in Other long-term creditors is the unamortised element of the social housing grant less an amount due for amortisation in the following year.

Cash and cash equivalents

Cash and cash equivalents comprise of cash balances and short term investments, which can be liquidated at short notice with no loss of capital. Bank overdrafts that are repayable on demand and form an integral part of the Charity’s cash management are included as a component of cash and cash equivalents for the purpose of the cash flow statement.

1(b) Judgements and Accounting estimates

The preparation of the Financial Statements requires trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the Financial Statements;

Classification of housing properties

The Charity has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the Charity has considered if the asset is held for social benefit or to earn commercial rentals. The Charity has determined that its housing portfolio is held for social benefit purposes.

16

Notes forming part of the Financial Statements For the year ended 31 March 2022

2 Particulars of turnover, operating costs and operating surplus

			2022
			Operating	Operating
		Turnover	costs	surplus
		£	£	£
	Social housing activities:
	Housing accommodation (see note 3)	73,850	(31,178)	42,672
	Amortisation of capital grant	2,618	-	2,618
		————	————	————
		76,468 ~~————~~	(31,178) ~~————~~	45,290 ~~————~~
			2021
			Operating	Operating
		Turnover	costs	surplus
		£	£		£
	Social housing activities:
	Housing accommodation (see note 3)	77,634	(35,978)	41,656
	Amortisation of capital grant	2,618	-	2,618
		————	————	————
		80,252 ~~————~~	(35,978) ~~————~~	44,274 ~~————~~
3	Particulars of income and expenditure from social housing lettings
			2022	2021
			£	£
	Income from lettings
	Rent receivable net of identifiable service charges and rent
	losses from voids		73,850	77,634
			————	————
	Turnover from social housing lettings		73,850	77,634
	Expenditure on letting activities
	Management		(5,043)	(11,174)
	Bad debts written off and movement in provision		2,010	156
	Routine maintenance		(16,054)	(8,822)
	Cyclical servicing		(353)	-
	Major repairs expenditure		(930)	-
	Depreciation of housing properties		(13,304)	(12,730)
	Other costs		2,496	(3,408)
			————	————
	Operating costs on social housing lettings		(31,178) ~~————~~	(35,978) ~~————~~
	Operating surplus on social housing lettings		42,672 ~~————~~	41,656 ~~————~~
	Rent losses from voids		(5,106) ~~————~~	(561) ~~————~~

No segmental analysis is shown for housing accommodation as the Charity owns and manages only general needs accommodation.

17

Notes forming part of the Financial Statements For the year ended 31 March 2022

4 Employee information

The Charity does not have employees but purchases services from Anchor Hanover Group.

5 Interest receivable and similar income

5	Interest receivable and similar income
		2022	2021
		£	£
	Other investment income	88	313
6	Surplus on ordinary activities
		2022	2021
		£	£
	Surplus on ordinary activities is stated after charging:
	Depreciation of fixed assets	13,304	12,730

The Trust's audit fee for 2022 of £1,333 is paid by AHG and recharged as part of the Management Fee (2021: £1,111).

7 Taxation

No provision for UK taxation has been made as all income and gains are used exclusively for charitable purposes and are therefore exempt from taxation

8 Surplus on revaluation of current asset investments

8	Surplus on revaluation of current asset investments
		2022	2021
		£	£
	Surplus on revaluation of current asset investments	14,563 ~~————~~	27,374 ~~————~~
9	Tangible fixed assets
		Freehold
		housing
		properties	Total
		£	£
	Cost
	At 1 April 2021	556,656	556,656
	Additions	17,639	17,639
	Disposals	-	-
		————	————
	At 31 March 2022	571,295 ~~————~~	571,295 ~~————~~
	Depreciation
	At 1 April 2021	(318,669)	(318,669)
	Charge for the year	(13,304)	(13,304)
	Disposals	-	-
		————	————
	At 31 March 2022	(331,973) ~~————~~	(331,973) ~~————~~
	Net book value
	At 31 March 2022	239,322 ~~————~~	239,322 ~~————~~
	At 31 March 2021	234,987 ~~————~~	234,987 ~~————~~

18

Notes forming part of the Financial Statements For the year ended 31 March 2022

10 Debtors Amounts receivable within one year: Rent arrears Less: bad debt provision Amounts receivable after more than one year: Anchor Hanover Group Other debtors, prepayments and accrued income 11 Current asset investments Short term deposits Listed investments: National Association of Almshouses Common Investments Fund Value at 31 March Cost of listed investments (NAACIF) Analysis of movement of listed investments Value at 1 April Additions at cost Net surplus on revaluation Value 31 March 12 Creditors: amounts falling due within one year Rents received in advance Other creditors, accruals and deferred income Deferred grant income

2022 2021 £ £ 4,459 4,762 (2,684) (4,094) ———— ———— 1,775 668 1,761 17,023 - 127 ———— ———— 3,536 17,818 ~~————~~ ~~————~~ 2022 2021 £ £ 261,592 212,501 141,756 126,061 ———— ———— 403,348 338,562 ~~————~~ ~~————~~ 35,074 33,942 ~~————~~ ~~————~~ 2022 2021 £ £ 126,061 97,556 1,131 1,131 14,563 27,374 ———— ———— 141,756 126,061 ~~————~~ ~~————~~ 2022 2021 £ £ - 601 2,106 3,990 2,618 2,618 ———— ———— 4,724 7,209 ~~————~~ ~~————~~

19

Notes forming part of the Financial Statements For the year ended 31 March 2022

13 Creditors: amounts falling due after more than one year

Deferred grant income	2022 2021 £ £ 62,824 65,441 ~~————~~ ~~————~~

14 Capital commitments

The Charity had no capital commitments at 31 March 2022 (2021: Nil).

15 Contingent liabilities

The Board of the Corporate trust is not aware of any contingent liabilities (2021: Nil).

16 Related party transactions

Anchor Hanover Group, the Corporate Trustee, also acts as the managing agent for the Trust providing various services for which fees are paid as follows:

Management fees Technical services fees	2022 2021 £ £ 4,527 10,810 100 3,774 ———— ———— 4,627 14,584 ~~————~~ ~~————~~

As part of the arrangement Anchor Hanover Group also provides short term funding and cash management for the day to day operations of the Trust and the amount outstanding at 31 March is as follows:-

Amounts due from Anchor Hanover Group	2022 2021 £ £ 1,761 17,023 ~~————~~ ~~————~~

17 Legislative provisions

The Charity is an unincorporated charity registered with the Charity Commission.

18 Payments to creditors

The Charity’s policy is to pay all invoices within 28 days or in accordance with agreed terms.

20

Notes forming part of the Financial Statements For the year ended 31 March 2022

20 Deferred grant income

Income Balance 1stApril Grant received in year Grant repaid/disposed Balance 31stMarch Amortisation 1stApril In year Balance 31st March Deferred grant income 31 March Amounts due < 1 year Amounts due > 1 year	2022 2021 £ £ 184,884 184,884 - - - - ———— ———— 184,884 184,884 116,825 114,207 2,618 2,618 ———— ———— 119,442 116,825 ———— ———— 65,442 68,059 ~~————~~ ~~————~~ 2,618 2,618 62,824 65,441 ———— ———— 65,442 68,059 ~~————~~ ~~————~~

21