**Charity Registration No. 230902** **Company Registration No. 00754594 (England and Wales) Homes and Communities Agency Registration No. H2136** **ABBEYFIELD WESSEX SOCIETY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Status**|Company limited by guarantee| |---|---| |**Trustees**|Mr S Arundel| ||Mr K A M Millman| ||Mrs A H Turner| ||Dr C J H Willams| ||Mrs K J Leishman, Chairman| |**Secretary**|Mrs H L Cantrill| |**Senior Management Team**|Mrs V Booker-Card, Chief Executive Officer| |**Charity number**|230902| |**Company number**|00754594| |**Homes and Communities Agency Number**|H2136| |**Principal address**|Westbourne House| ||22 Poole Road| ||Bournemouth| ||Dorset| ||BH4 9DS| |**Registered office**|Westbourne House| ||22 Poole Road| ||Bournemouth| ||Dorset| ||BH4 9DS| |**Auditor**|CB Reid Ltd| ||Wadebridge House| ||16 Wadebridge Square| ||Poundbury| ||Dorchester| ||Dorset| ||DT1 3AQ| |**Bankers**|Lloyds Bank PLC| ||84 Victoria Road| ||Ferndown| ||Dorset| ||BH22 9JB| |**Solicitors**|Humphries Kirk LLP| ||Trevanion House| ||15 Church Road| ||Parkstone| ||Poole| ||Dorset| ||BH14 8UF| ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Investment advisors** Charles Stanley & Co Limited 2 Westover Road Bournemouth Dorset BH1 2BY ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Chairman's statement|1| |Trustees' report|2 - 6| |Statement of trustees' responsibilities|7| |Independent auditor's report|8 - 10| |Statement of comprehensive income|11| |Balance sheet|12| |Statement of changes in reserves|13| |Statement of cash flows|14| |Notes to the financial statements|15 - 27| ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **CHAIRMAN'S STATEMENT** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ The Society’s annual financial statements, prepared by our auditors, give a clear overview of all income, expenditure and assets and accompany this report. The COVID pandemic continued to impact our houses with an increase in voids in the first quarter of the financial year. However, staff and residents continued to work together for the benefit of all and the large majority remained well and happy. The appointment of a community engagement officer in the spring enabled the Society to greatly improve communication and subsequently increase interest in our houses resulting in a steady decline in voids as the year progressed. Scheduled property maintenance work was resumed and completed. The Society’s new development plans in Dorchester were delayed by the need for additional planning requirements but progress will mean that building work will begin early in 2023 with completion expected in early 2024 At the AGM in March 2022 Brenda Biddle retired from her Chairmanship after many years of valued service. Jane Leishman was appointed as her successor. Later in the year another trustee stepped down. Following the resignation of the finance officer a new appointment was made. A subsequent review resulted in helpful changes in account reporting and a review by Trustees of the management of investments resulted in a move of asset management to an alternative company. In line with our commitment to provide high quality accommodation and maintain occupancy the decision to sell one failing house was made. The remaining residents all successfully transferred to live in other Abbeyfield houses. The Trustees held quarterly board meetings with the CEO and Finance Manager presenting reports. Additional standing committees were held when appropriate. All matters were discussed, actions agreed and fully documented in the Minutes of meetings. At the July meeting one Trustee resigned, a replacement is being sought. Despite a national shortage of staff in the sector it should be recognised that staff retention has remained high, salaries and rents have been reviewed and uplifted . In closing this report, I wish to thank my fellow Trustees for all their work on behalf of the Society; and also to sincerely thank all the Staff who have, as always, worked tirelessly throughout the year for the benefit and wellbeing of our elderly residents. .............................. ## **Chairman** Date: ......................... - 1 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 30 September 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the society's [governing document], the Companies Act 2006 and "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 2019). ## **Objectives and activities** ## _Objects and aims_ The Society's principal objective during the year continued to be that of providing supported sheltered accommodation for older people. In achieving its objectives, the Society aims to create a surplus of income over expenditure which is sufficient to maintain properties and services to a high standard. The Society's ongoing aim is to ensure that these standards are maintained and improved wherever possible and that the Society adheres to all current legislation governing the services it offers. ## _Objectives, strategies and activities_ At 30 September 2022, the Society had 70 units in 5 houses, one house awaiting redevelopment as well as one house that is let on a commercial basis. This lease on this property ends on 14th July 2023. ## _Public benefit_ It is the objective of the trustees each year to maximise the public benefit provided by the Society in providing high quality support, having regard to the extent of the Society's income and reserves, the cost of facilities and the ability of residents to make payments from their own resources. The Society continues to invest financial resources as appropriate to modernise and upgrade the Society's housing stock to ensure a high standard of accommodation for residents at an affordable price. The Society maintains a Residents' Hardship Fund to assist existing residents of the Society who are finding difficulty in meeting their monthly accommodation charges. Disbursements from the fund are at the sole discretion of the Board. The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the society should undertake. ## _Social investment policies_ Our investment managers (Charles Stanley & Co. Limited) are instructed to invest to maximise the total return within the constraints of a medium to low risk investment portfolio. The investment brief is broadly defined but the ethical criteria prohibit investment in companies that manufacture armaments, alcohol or tobacco. ## **Achievements and performance** The results for the year ended 30 September 2022 demonstrate the Society's commitment to ensuring that the portfolio of properties meets the required standard of accommodation. One property was disposed of and the effect of this is reflected in the turnover. Planning permission for the Dorchester property has been granted for renovation and extension. The accounts show a surplus for the year, after depreciation, of £190,213 compared to a surplus of £75,722 in the prior year. - 2 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **Financial review** ## _Going concern_ After reviewing the Society's forecasts and projections, the Board have a reasonable expectation that the society has adequate resources to continue in operational existence for the foreseeable future. The entity therefore continues to adopt the going concern basis in preparing its financial statements. Note: As a result of the recent COVID-19 virus the Board are continuing to monitor and assess the current implication and operations of the Society, although there has been no immediate impact at present. ## _Value for Money Information_ The Society is registered as a Housing Association with the Regulator of Social Housing. The Regulator of Social Housing have updated the guidance on Value for Money Standards and as a result the Society are required to publish information on performance metrics detailed in the standard for Value for Money. The Society are required to report on the following seven performance metrics as follows: |**Metric No.**|**Metric**|**2022**|**2021**| |---|---|---|---| |1|Reinvestment (%)|5.87%|15.91%| |2|New supply delivered (%)
New supply delivered (Social housing) (%)
New supply delivered (Non-social housing) (%)|0%
0%|0%
0%| |3|Gearing (%)|(59)%|(81)%| |4|EBITDA MRI interest cover (%)|0%|0%| |5|Headline social cost per unit (%)|£14.0k|£20.0k| |6|Operating margin – overall (%)|(18)%|(17)%| |7|Return on capital employed (%)|2%|1%| The Value for Money performance indicators are reviewed by the management team on a quartile basis in order to assess the progress of the Society and they are pleased with the overall performance presented in this respect. The Society has sufficient cash reserves, and these are well managed on a regular basis. Therefore there is no substantial financial borrowing required to support its operation. However, there is a loan of £265,536 from Jane Andrews Ladies Home which is repayable on demand. Additionally the Society constantly reviews expenditure levels and works to manage costs within resources and budgets. This enables the Society to ensure they achieve financial performance whilst continuing to deliver an exceptionally high level of support and services to the residents. The Society is currently applying for planning permission for alterations and renovations to one property. Once approved and work completed the facilities will immediately be made available to new residents. This will enhance the performance metric set and assist in achieving the Society's goals. The Society's management team continues to monitor, identify and assess risks on a regular basis. The Society's strategy ensures that residents are assisted in all their needs; and to provide further housing facilities in the future through the acquisition of additional properties. The management will continue to use budgeting, risk management and financial control to enhance their strategy. - 3 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## _Policy on reserves_ The Board is satisfied that the level of reserves, the unrestricted funds from past operating results, is satisfactory in view of the Society's obligations to residents and staff. ## _Principal funding sources_ The principal funding received by the Society is from the residential charges. The Society is not Government funded. ## _Investment policy and objectives_ Surplus funds earmarked for future expenditure are held on deposit with CCLA Investment Management Limited, Lloyds Bank, Nationwide, United Trust Bank and Teachers Building Society. Longer term investments are managed by stockbrokers Charles Stanley. ## **Plans for future periods** ## _Aims and key objectives for future periods_ The Board is committed to retaining all the existing operational houses for the immediate future and improving the standard of all the current accommodation to meet residents' expectations. Opportunities to expand the portfolio of properties are also sought. ## _Activities planned to achieve aims_ Full refurbishment of the property at Dorchester and ongoing monitoring of existing properties to ensure that they are fit for purpose. ## **Structure, governance and management** ## _Nature of governing document_ The Society is registered under the Companies Act as a company limited by guarantee (Company number 00754594) and is registered with the Charities Commission (Registered Charity number 230902). The Society was incorporated on 25 March 1963 and registered as a charity on 29 October 1963. The Society was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association, In the event of the company being wound up, members are required to contribute an amount not exceeding £1. The Society is registered with the Homes and Communities Agency (Registered number H2136) and is a member of the national Abbeyfield Society. The national Society confers affiliation benefits to member societies. These include providing relevant information on national developments within the charitable housing sector and professional services in support of the affiliated member societies. The Society pays an annual fee to the national Society. The Board has received the current Model Memorandum and Articles of Association, produced by the national Abbeyfield Society and adapted to meet the requirements of the Abbeyfield Wessex Society, and they have been adopted. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mrs B J Biddle (Resigned 28 March 2022) Mr S Arundel Mr K A M Millman Mrs A H Turner Dr C J H Willams Mrs K J Leishman, Chairman Mr P J Y Oliver (Resigned 14 July 2022) - 4 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## _Recruitment and appointment of Trustees_ The directors of the charitable company, who are also its Trustees and members, are its Board members for the purpose of charity law and throughout this report are collectively referred to as Board members. Each member of the Board is recruited for his/her relevant experience and skills and receives appropriate induction training when appointed. Several Trustees assume responsibility for executive functions in support of management. The Board meets monthly to review performance and ensure that the Society is being managed in accordance with established policies. The Board approves any changes in operating policy when deemed necessary and is responsible for approving and monitoring all major expenditure. A Standing Committee comprised of Board members meets as necessary to consider and complete tasks delegated from the Board. ## _Arrangements for setting key management personnel remuneration_ Mrs V Booker-Card is the Chief Executive Officer. Her remuneration package is set by the Board without influence. ## _Organisational structure_ The Chief Executive Officer manages the operational aspect of the Society and works closely with the Board on strategic issues. She reports formally at the Board meetings every month. The Business Support Managers and the central team continues to manage and develop the work of the Society. The Society relies heavily on its willing house staff who manage the day to day operation of each of its houses and ensure the well-being of the residents. Volunteers, working under the direction of the house staff, provide pastoral care and practical help to residents. Family members, or other designated sponsors, are encouraged to have an active role in ensuring the welfare of residents is maintained. The Board delegates decisions within clearly defined limits while maintaining overall responsibility for strategic direction and policies of the Society. The Society values its staff and is committed to paying the National Minimum Wage. ## _Compliance with Governance and Financial Viability Standard_ The Society confirms compliance with Governance and Financial Viability Standard. ## **Major risks and management of those risks** ## _Financial viability_ The offer of accommodation must suit the demand from older people and some of the accommodation types may no longer be deemed to meet needs. Additionally, the downward pressure on social housing grants and the local pressure on housing benefit packages may affect financial viability. Financial viability depends on ensuring that income covers expenditure and that levels of occupancy are maintained at a high enough level to cover costs and augment reserves, ## _Safety of residents_ Provision of high-quality services, with a focus on safeguarding residents, delivering value for money and maintaining the Society's reputation. ## _Quality of accommodation_ Maintenance or replacement of housing stock and well managed houses that properly reflect the Society's ethos. These risks are mitigated by good management and sound governance which depend on recruiting experienced Trustees and management, backed by structured planning and adequate resources. Operating expenditure is carefully monitored and controlled. All budget planning and capital expenditure is subject to approval by the Board. The Society strives towards full occupancy, raising local awareness as to the benefits which the Society has to offer those in need. - 5 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **Principal risks and uncertainties** ## _Objectives and policies_ The Society's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Society's policies approved by the board of Trustees, which provide written principles on the use of financial derivatives to manage these risks. The Society does not use derivative financial instruments for speculative purposes. ## _Cash flow risk_ The Society's activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. ## Credit risk The Society’s principal financial assets are bank balances and cash and investments. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Society has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. ## _Liquidity risk_ In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Society uses a mixture of long-term and short-term debt finance. ## **Disclosure of information to auditor** We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that: - there is no relevant audit information of which the company’s auditors are unaware; and - we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. The trustees' report was approved by the Board of Trustees. .............................. .............................. Mrs K J Leishman Mrs A H Turner **Chairman Trustee** Date: ............................................. - 6 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ The trustees, who are also the directors of Abbeyfield Wessex Society Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the society and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - 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 statements; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the society will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the society and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing SORP 2018 and the Accounting Direction for Private Registered Providers of Social Housing in England 2019. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 7 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF ABBEYFIELD WESSEX SOCIETY LIMITED** ## **Opinion** We have audited the financial statements of Abbeyfield Wessex Society Limited (the ‘society’) for the year ended 30 September 2022 which comprise the statement of comprehensive income, balance sheet, statement of changes in reserves, statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the society's affairs as at 30 September 2022 and of its income and expenditure 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 Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers for social housing in England 2019. ## **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 are independent of the society in accordance with the ethical requirements that are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating 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 society’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. - 8 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABBEYFIELD WESSEX SOCIETY LIMITED** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the society and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the society for the purpose of company law, 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 determine 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 society’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 society or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** 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. 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: - We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and understood how it complies with those through enquiries of management and those charged with governance; - We assessed the possibility of material misstatement in the financial statements, including how fraud might occur; - We considered the laws and regulations which are significant to the entity, including the Regulatory Framework for Social Housing in England, and the requirements of charity and company law; - We performed analytical procedures to identify any unusual relationships that may indicate a risk of material misstatement due to fraud; - We enquired of management and trustees concerning actual and potential litigation or claims; - We reviewed legal and professional costs for evidence of any expenditure in relation to potential litigation of claims; - We reviewed meeting minutes for evidence of discussions which may indicate potential litigation and claims; - We tested revenue recognition by performing a proof in total of income and verifying a sample of incoming and outgoing residents and rent increases; - We assessed the risk of management override of controls by testing journal entries and accounting estimates; and - We sought explanations and evidence for any transactions outside the normal course of business. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 9 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABBEYFIELD WESSEX SOCIETY LIMITED** ## **Use of our report** This report is made solely to the society's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the association’s members 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 association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## **CB Reid Ltd** ......................... **Chartered Accountants Statutory Auditor** Wadebridge House 16 Wadebridge Square Poundbury Dorchester Dorset DT1 3AQ - 10 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **STATEMENT OF COMPREHENSIVE INCOME** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ |||**Total**|**Total**| |---|---|---|---| |||**2022**|**2021**| ||**Notes**|**£**|**£**| |Turnover|**5**|1,242,155|1,166,361| |Cost of sales|**5**|(1,132,014)|(1,086,029)| |**Gross surplus**||**110,141**|**80,332**| |Administrative expenditure|**5**|(331,957)|(280,696)| |Other income|**6**|405,536|12,259| |**Operating (deficit)/surplus**||**183,720**|**(188,105)**| |Investments|**4**|31,553|24,850| |Donations and legacies|**3**|27,636|200,626| |**Surplus on ordinary activities for the year**||**242,909**|**37,371**| |Net gains/(losses) on investments|**10**|(52,696)|38,351| |**Total comprehensive income for the year**||**190,213**|**75,722**| The statement of comprehensive income includes all gains and losses recognised in the year. The society's results derive wholly from continuing activities and relate to unrestricted funds. The accompanying notes form part of these financial statements. The financial statements were approved by the Board on ....................................................... and signed on its behalf by: ........................................................ ........................................................ Mrs K J Leishman Mrs A H Turner Chairman Trustee - 11 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **BALANCE SHEET** ## _**AS AT 30 SEPTEMBER 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Stocks
**14**
Debtors
**15**
Investments
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**18**
Net current assets
**Total assets less current liabilities**
**Provisions for liabilities**
**19**
**Net assets**
**Income funds**
Investment revaluation reserve
Income and expenditure reserve|**2022**
**£**
**£**
5,182,136
278,060
5,460,196
2,100
45,568
1,750,000
3,193,059
4,990,727
(337,553)
4,653,174
10,113,370
(17,100)
10,096,270
3,955
10,092,315
10,096,270|**2021**
**£**
**£**
5,421,243
333,539
5,754,782
-
52,289
-
4,459,137
4,511,426
(343,051)
4,168,375
9,923,157
(17,100)
9,906,057
56,651
9,849,406
9,906,057| |---|---|---| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accompanying notes form part of these financial statements. The financial statements were approved by the Trustees on ......................... .............................. .............................. Mrs K J Leishman Mrs A H Turner **Chairman Trustee** ## **Company Registration No. 00754594** - 12 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **STATEMENT OF CHANGES IN RESERVES** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ |**Income and**
**expenditure**
**reserve**
**Investment**
**revaluation**
**reserve**
**£**
**£**
**Balance at 1 October 2020**
**9,815,941**
**14,394**
Total comprehensive income for the year
33,465
42,257
**Balance at 30 September 2021 and 1 October 2021**
**9,849,406**
**56,651**
Total comprehensive income for the year
242,909
(52,696)
**Balance at 30 September 2022**
**10,092,315**
**3,955**|**Total**
**£**
**9,830,335**
75,722| |---|---| ||**9,906,057**
190,213| ||**10,096,270**| - 13 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ |**2022**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**26**
(52,190)
**Investing activities**
Purchase of tangible fixed assets
(330,331)
Proceeds from disposal of tangible fixed
assets
832,107
Purchase of investments
(1,798,870)
Proceeds from disposal of investments
51,653
Investment income received
31,553
**Net cash used in investing activities**
(1,213,888)
**Net cash used in financing activities**
-
**Net (decrease)/increase in cash and cash**
**equivalents**
(1,266,078)
Cash and cash equivalents at beginning of year
4,459,137
**Cash and cash equivalents at end of year**
3,193,059|**2021**
**£**
**£**
511,835
(916,512)
604,918
(65,237)
62,257
24,850
(289,724)
-
222,111
4,237,026
4,459,137| |---|---| - 14 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **1 Accounting policies** ## **General information and basis of preparation** Abbeyfield Wessex Society Limited is a company limited by guarantee (number 00754594), incorporated in England and Wales, having no share capital and with solely charitable objectives, it is also registered as a charity (number 230902). The society is a private registered provider of social housing in the United Kingdom and is registered as a housing association with the Homes and Communities Agency (number H2136). The address of the registered office is given in the Abbeyfield Wessex Society Limited’s information on page 2 of these financial statements. The nature of the Abbeyfield Wessex Society Limited’s operations and principal activities are to provide accommodation, care and companionship for lonely or frail elderly people in accordance with the aims and principles of the Abbeyfield Wessex Society Limited. The Abbeyfield Wessex Society Limited constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 _The Financial Reporting Standard Applicable in the UK and Republic of Ireland_ (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the Charities SORP "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 2019) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the Abbeyfield Wessex Society Limited, and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **1.1 Going concern** The Board has considered the financial position of the Society, both during the period and as a result of the COVID-19 pandemic, and have assessed both financial and operational risk. They are of the opinion that the Society has sufficient financial resources to continue to operate as a going concern for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in the preparation of the financial statements. ## **1.2 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. ## **1.3 Income** Turnover is measured at the fair value of the consideration received or receivable net of trade discounts. The policies adopted for the recognition of turnover are as follows: Turnover represents rental and support charges income receivable in the year net of losses from voids. ## _Rendering of services_ When the outcome of a transaction can be estimated reliably, turnover from rental and support services is recognised by reference to to the stage of completion at the balance sheet date. When the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. - 15 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **Donations and legacies** Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the amount of donation and the settlement date. If the donation is subject to performance conditions, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the society has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. ## **Investment income** Interest income is recognised using the effective interest method and dividend income is recognised as the Society's right to receive payment is established. ## **1.4 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. All costs are allocated to the applicable expenditure category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. ## **1.5 Tangible fixed assets** Tangible fixed assets (including social housing properties) are stated at deemed cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |Land|Not depreciated| |---|---| |Structure|1%| |Roof|2%| |Windows/doors|3.33%| |Kitchens|3.33%| |Bathrooms|3.33%| |Fixtures, fittings and equipment|5 - 8 years straight line| - 16 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **1 Accounting policies** **(Continued)** Major components of housing properties, such as electric systems,kitchens and bathrooms have been accounted for and depreciated separately from the connected housing property, over their expected useful economic lives and are included in freehold land and buildings. Freehold land is not depreciated. Realised profits in respect of excess depreciation on revalued assets are not transferred from the revaluation reserve to the income and expenditure reserve. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income. ## **1.6 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date, through the statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. Transaction costs are expensed as incurred. ## **1.7 Impairment of fixed assets** At each reporting end date, the society reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.8 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.10 Financial instruments** The society has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the society's balance sheet when the society becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, 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. - 17 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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 classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the society’s contractual obligations expire or are discharged or cancelled. ## **1.11 Taxation** The society is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the society is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **1.12 Provisions** Provisions are recognised when the society has a legal or constructive present obligation as a result of a past event, it is probable that the society will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises. ## **1.13 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the society is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.14 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 18 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **1.15 Fair value measurement** The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. ## **1.16 Pensions** The Society operates a pension scheme for employees which meets the requirements of being a Qualifying Work Place Pension Scheme. The Contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. ## **2 Critical accounting estimates and judgements** In the application of the society’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 relevant. Actual results may differ 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 the revision and future periods where the revision affects both current and future periods. ## **Critical judgements** ## **Useful lives of depreciable assets** Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets including any components. Uncertainties in these estimates relate to changes to the Decent Homes Standards and changes to energy efficiency requirements which may require more frequent replacement of key components. Management used their judgement in apportioning amounts to the various components of housing properties. Accumulated depreciation of housing properties and their fixtures and fittings as at 30 September 2022 was £1,106,081. The carrying amount of the housing properties, including those under construction which are not depreciated, and their fixtures and fittings was £5,182,136 at the year ended 30 September 2022. ## **Valuation of housing properties** On transition to FRS102, on 1 October 2014, housing properties which are still owned with historic cost of £6,604,200, were recognised at an estimated deemed cost of £3,730,000. This deemed cost was based on formal valuation reports. Uncertainties in these estimates relate to the assumptions adopted by the valuer and the use of a single valuation to determine the deemed cost. ## **3 Donations and legacies** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Donations and gifts|27,636|200,626| - 19 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **4 Investment income** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Income from listed investments|8,435|5,170| |Interest receivable|23,118|19,680| ||31,553|24,850| - 20 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **5 Turnover, cost of sales, administrative expenditure and operating surplus/(deficit)** ||**Total**|**Total**| |---|---|---| ||**2022**|**2021**| ||**£**|**£**| |**Turnover from social housing lettings**||| |Residential charges receivable|1,711,356|1,576,633| |Voids|(469,201)|(410,272)| ||1,242,155|1,166,361| |**Cost of sales**||| |Wages and salaries|473,196|449,235| |Social security costs|29,878|18,255| |Pension costs|10,217|9,992| |Property costs|317,714|297,358| |Food costs|89,435|92,683| |Telephone and television costs|13,181|16,530| |Careline|17,078|15,227| |Legal and professional|26,620|25,318| |Travel costs|1,942|4,722| |Sundry expenses|13,820|16,869| |Depreciation|138,933|139,840| ||(1,132,014)|(1,086,029)| |**Gross surplus**|110,141|80,332| |**Administrative expenditure**||| |Wages and salaries|223,583|195,595| |Social security costs|22,747|13,304| |Pension costs|4,917|4,414| |Head office property costs|22,158|22,652| |Postage, stationery and advertising|7,268|8,947| |Governance costs|20,069|12,336| |Telephone costs|8,058|3,007| |Legal and professional|6,990|11,551| |Finance costs|1,756|2,147| |Sundry|14,411|6,743| ||(331,957)|(280,696)| |**Other income**||| |Sundry income|3,934|1,030| |**Operating deficit on social housing lettings**|(217,882)|(199,334)| - 21 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **6 Other income** |Net gain on disposal of tangible fixed assets
Other income
**Auditor's remuneration**
The analysis of auditor's remuneration is as follows:
**Fees payable to the society's auditor and associates:**
Audit of the society's annual accounts
**Non-audit services**
Other assurance services
All other non-audit services
**Total non-audit fees**|| |---|---| ## **7 Auditor's remuneration** ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the society during the year. ## **9 Employees** The average monthly number of employees during the year was: |Head office
House staff
Total|**2022**
**Number**
8
27
35|**2021**
**Number**
6
31| |---|---|---| |||37| The average monthly number of employees expressed as full time equivalents (calculated based on a standard working week of 40 hours) is 25 (2021: 26). - 22 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ |**9**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2022**
**2021**
**£**
**£**
696,779
608,787
52,625
31,559
15,134
14,406
764,538
647,806|**(Continued)**
**2022**
**2021**
**£**
**£**
696,779
608,787
52,625
31,559
15,134
14,406
764,538
647,806| |---|---|---| |||647,806| The total employee benefits of the key management personnel of the charity were £125,952. (2021 - £189,595). No non-executive board members received any remuneration during the year. The Chief Executive is a member of the The People's Pension scheme. They are an ordinary member of the pension scheme and no enhanced or special terms apply. The charity does not make any further contribution to an individual pension arrangement for the Chief Executive. There were no employees whose annual remuneration was more than £60,000. ## **10 Net gains/(losses) on investments** |Revaluation of investments
Gain/(loss) on sale of investments|**2022**
**£**
(45,096)
(7,600)
(52,696)|2021
£
47,866
(9,515)| |---|---|---| |||38,351| ## **11 Taxation** The charity is a registered charity and is therefore exempt from taxation. - 23 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **12 Tangible fixed assets** |**Cost**
At 1 October 2021
Additions
Disposals
At 30 September 2022
**Depreciation and impairment**
At 1 October 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 30 September 2022
**Carrying amount**
At 30 September 2022
At 30 September 2021|**Freehold**
**property**
**Assets under**
**construction**
**Fixtures and**
**fittings**
**£**
**£**
**£**
4,618,985
879,863
935,818
82,775
210,563
36,993
(460,000)
-
(16,780)
4,241,760
1,090,426
956,031
321,704
-
691,719
51,300
-
87,633
(36,467)
-
(9,808)
336,537
-
769,544
3,905,223
1,090,426
186,487
4,297,281
879,863
244,099|**Total**
**£**
6,434,666
330,331
(476,780)
6,288,217
1,013,423
138,933
(46,275)
1,106,081
5,182,136
5,421,243| |---|---|---| Land with a deemed cost of £1,635,000 (2021: £1,865,000) on transition to FRS102 is not depreciated. The trustees believe that the open market value is considerably in excess of the net book value which has been determined based on an existing use basis. Their most recent estimate of the open market value is £9,700,000 (2021: £10,400,000). ## **13 Fixed asset investments** |**Listed**
**investments**
**Cash held in**
**investment**
**portfolio**
**£**
**£**
**Cost or valuation**
At 1 October 2021
325,959
7,580
Additions
33,064
-
Valuation changes
(52,868)
-
Net movement in funds
187
15,790
Disposals
(51,652)
-
At 30 September 2022
254,690
23,370
**Carrying amount**
At 30 September 2022
254,690
23,370
At 30 September 2021
325,959
7,580|**Total**
**£**
333,539
33,064
(52,868)
15,977
(51,652)
278,060
278,060
333,539| |---|---| - 24 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **13 Fixed asset investments** ## **(Continued)** The fair value of UK listed investments is determined by reference to the quoted price for the shares in an active market at 30 September 2022. The historical cost of the listed investments is £281,829 (2021: £269,308). |**14**
**Stocks**
Raw materials and consumables
**15**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**16**
**Current asset investments**
Unlisted investments|**2022**
**£**
2,100
**2022**
**£**
2,927
14,609
28,032
45,568
**2022**
**£**
1,750,000|**2021**
**£**
-| |---|---|---| |||**2021**
**£**
734
17,001
34,554| |||52,289| |||**2021**
**£**
-| ## **17 Accommodation owned and in management** The Society owned 70 (2021: 84) completed support housing units for older people at 30 September 2022. ## **18 Creditors: amounts falling due within one year** |Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2022**
**£**
10,738
28,408
275,334
23,073
337,553|**2021**
**£**
-
16,708
268,818
57,525| |---|---|---| |||343,051| - 25 - ## **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ |**19**|**Provisions for liabilities**|**2022**|**2021**| |---|---|---|---| |||**£**|**£**| |||17,100|17,100| The above provision is in respect of returning a leased asset to the lessor and it is the cost of maintaining the property in accordance with the lease agreement. ## **20 Charity status** The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. ## **21 Retirement benefit schemes** ## **Defined contribution schemes** The society operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the society in an independently administered fund. The amount recognised as an expense in the period was £15,134 (2021: £14,406). Contributions totalling £6,041 (2021: £3,282) were payable at the balance sheet date and are included in creditors. ## **22 Operating lease commitments** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2022**
**£**
15,750
-
15,750|**2021**
**£**
18,500
13,875| |---|---|---| |||32,375| ## **23 Capital commitments** The Society has no capital or other commitments at 30 September 2022 (2021: £NIL). ## **24 Events after the reporting date** On 16 January 2023, the society signed a binding contract to spend £3,438,830 on the development of the Dorchester property. The project commenced in February 2023 and is scheduled to complete in March 2024. On completion a further 16 supporting living units will be available to the society. - 26 - **ABBEYFIELD WESSEX SOCIETY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2022**_ ## **25 Related party transactions** During the year certain Trustees provided general voluntary time to Abbeyfield Wessex Society Limited on an unpaid basis which complemented the work of the paid employees. Additionally, the following related party transactions occurred during the year: ## **Jane Andrews Ladies' Home** (The charity is a trustee of Jane Andrews Ladies' Home) At the balance sheet date the amount due to Jane Andrews Ladies' Home was £265,536 (2021 - £265,536). This interest-free loan is repayable on demand. ## **The Harleston Homes** (The charity is a trustee of The Harleston Homes) During the year The Harleston Homes has donated investment income (dividends and interest) of £442 to Abbeyfield Wessex Society Limited (2021 - £885). No amounts are due to/from the charity at the balance sheet date. ## **26 Cash generated from operations** |**Cash generated from operations**
**2022**
**£**
Surplus for the year
190,213
Adjustments for:
Investment income recognised in statement of financial activities
(31,553)
Gain on disposal of tangible fixed assets
(401,602)
Loss on disposal of investments
7,600
Fair value gains and losses on investments
45,096
Depreciation and impairment of tangible fixed assets
138,933
Movements in working capital:
(Increase) in stocks
(2,100)
Decrease in debtors
6,721
(Decrease) in creditors
(5,498)
**Cash (absorbed by)/generated from operations**
(52,190)|**2021**
**£**
75,722
(24,850)
(11,229)
9,515
(47,866)
139,840
-
425,597
(54,894)
511,835| |---|---| ## **27 Analysis of changes in net funds** The society had no debt during the year. - 27 -