Charity number: 231984
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustee and advisers | 1 - 2 |
| Trustee's report | 3 - 13 |
| Independent auditors' report on the financial statements | 14 - 17 |
| Statement of financial activities | 18 - 19 |
| Balance sheet | 20 - 21 |
| Statement of cash flows | 22 |
| Notes to the financial statements | 23 - 42 |
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022
| Trustee | The Reverend Canon Nicholas J W Brown, Master & Governor |
|---|---|
| Charity Registered Number 231984 Estate Office Trinity Estates Office Newcastle House 37 Bridgegate Retford DN22 7UX Almshouses Hospital Road Retford Nottinghamshire DN22 7BD Bailiff & Estates Manager Mr John David Marshall MRICS Independent Auditors Streets Audit LLP Chartered Accountants & Statutory Auditor Tower House Lucy Tower Street Lincoln LN1 1XW Bankers Virgin Money 124 High Street Scunthorpe DN15 6ES National Westminster Bank plc 21 The Square Retford DN22 6UL Solicitors Jones and Co 5 Churchgate Cannon Square Retford Nottinghamshire DN22 6PB Investment Advisors Investec Wealth & Investment Beech House 61 Napier Street Sheffield S11 8HA Agricultural, Commercial and Residential Property Advice Fisher German Unit 2 Carolina Court Lakeside Business Park Doncaster DN4 5RA |
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Architect
Carl Andrews Soul Architects 13 Sparken Hill Worksop Nottinghamshire S80 1AX
Residential Property Brown & Co Advisors 29-33 Grove Street Retford DN22 6JP
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustee presents his annual report together with the audited financial statements of The Hospital of the Holy and Undivided Trinity (the charity) for the year ended 31 December 2022. The Trustee confirms that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The charity also operates under the name Trinity Hospital Estates.
Structure, Governance and Management
a. Constitution
John Darrel’s Will states “they my said executors and trustees by such their deed shall limit assign and appoint that the said Hospital and the poor and impotent men therein ……. as brethren and the Subdean of the Cathedral Church of the Blessed Virgin Mary of Lincoln and his successors as Master and Governor there of shall be incorporated by the name of Master and Governor and the brethren of the Hospital of the Holy and Undivided Trinity of West Retford in the County of Nottingham.”
Governing Document
The governing document of the charity is the Will of John Darrel dated 11 November 1664. John Darrel died on 8 March 1665. In his Will he specified that:
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(i) the Subdean of Lincoln and his successors should be Master & Governor, as sole trustee.
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(ii) the Master & Governor should appoint a Bailiff, as a paid officer of the charity, to manage and maintain the property and land and administer the financial aspects of the charity.
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(iii) a woman, holding the title of Nurse, but now called Matron, should be employed by the Master & Governor to clean the common rooms and look after the welfare of the brethren.
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(iv) the local Rector should lead the daily prayers.
These wishes are the basis for the Trust Deed (Statutes, Ordinances Orders and Rules) for the charity. Several Schemes have been made and amended over the centuries. The latest Scheme is dated 28 June 1974. The Scheme benefited from a minor amendment, dated 26 September 2005, which removed the necessity for Charity Commission approval in respect of any annual increase in the Bailiff’s salary.
b. Organisational Structure and Decision Making
Trustee
Office: Master & Governor – as sole trustee. Name:The Reverend Canon Nicholas James Watson Brown. Date of Appointment: 9 March 2021 Appointment: Will of John Darrel dated 11 November 1664.
The Master & Governor is the sole trustee and has overall responsibility for the charity. John Darrel’s Will states:
“….And further by the same deed they my said executors shall limit and appoint that the Subdean of Lincoln and his successors shall be the sole visitors of the said Hospital and no other.”
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Officers
Office: Bailiff & Estates Manager Name: Mr John David Marshall Date of Appointment: 1 January 2020 Appointment: Trust Deed dated 14 June 1672.
The Bailiff & Estates Manager is the senior officer and is responsible to the Master & Governor. The Bailiff & Estates Manager is appointed by the Master & Governor and deputises for the Master & Governor during any prolonged absence. The Trinity Estates Office staff are directly responsible to the Bailiff & Estates Manager.
The salary paid to the Bailiff & Estates Manager is determined and approved by the Trustee and is subject to an annual review.
Office Held: Chaplain Name: The Reverend Canon Richard Charles Lewis Date of Appointment: 1 August 2012 Appointment: Trust Deed dated 14 June 1672.
The Chaplain is responsible to the Master & Governor and looks after the spiritual welfare of the brethren. Matins is held in the Trinity Chapel Monday to Friday inclusive. Holy Communion is taken on Wednesday mornings. Special services are held at Christmas and Easter. The arrangement that the local Rector should lead the daily prayers (Clause 23 of the Scheme dated 16 June 1863 and Clause 6 of the Scheme dated 16 December 1919) was altered by the Variation of the Scheme dated 7 February 1972 “…. the Chaplain shall be a priest in Holy Orders in or near West Retford appointed by the Master”.
Office Held: Scheme Manager (formerly Matron) Name: Mrs Jane Jackson Date of Appointment: 2 December 2019 Appointment: Trust Deed dated 14 June 1672.
The Scheme Manager is responsible to the Master & Governor. She oversees the welfare of the brethren. The Scheme Manager visits each brother every morning. The Scheme Manager liaises daily with the Trinity Estates Office staff over administration and maintenance matters relating to the almshouses.
Administration of the Charity
The Master & Governor has total oversight of the charity but the day to day administration, maintenance of the almshouses, estate and finances are the responsibility of the Bailiff & Estates Manager (assisted by an Office Administrator and an Accounts Administrator). The Chaplain looks after the spiritual welfare of the brethren and the Scheme Manager their physical wellbeing.
The Master & Governor meets quarterly with all the charity’s officers to monitor the brothers’ welfare. A record of the meetings is kept in the Staff Meetings Minute Book.
An Annual General Meeting of the Master & Governor and Brethren of the Hospital is held as soon as the audit of the annual accounts has been completed and the financial statements have been prepared by the charity’s accountants. Records of the meetings are kept in the AGM Minute Book.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
The Bailiff & Estates Manager and Trinity Estates Office staff carry out the administration of the estate and the almshouses, such as rent collection, property re letting, property maintenance, refurbishment and repairs, and the day to day financial administration of the charity.
Any two signatories of four (the Master & Governor, the Bailiff & Estates Manager, the Accounts Administrator and the Office Administrator) are authorised to sign cheques and approve payments up to £5,000. Payments over £5,000 must be authorised by the Master & Governor and one of the other three mandated signatories.
The Bailiff & Estates Manager meets with the Master & Governor at least monthly, but routinely more regularly. Additionally, they communicate more frequently by telephone, e-mail and in writing on important matters of policy, expenditure and routine activity.
The investment portfolio is managed by Investec Wealth & Investment. The Master & Governor, Bailiff & Estates Manager and Accountant meet with the Fund Manager twice a year to discuss the performance of the portfolio. In between meetings, the Fund Manager contacts the charity with any interim recommendations and these are discussed by the Master & Governor, Bailiff & Estates Manager and Accountant and appropriate decisions taken.
Policy decisions such as large financial expenditure, disposal of land or properties are made by the Master & Governor after considering the recommendations put forward by the Bailiff & Estates Manager and the professional advisors to the charity, such as local Land Agents, surveyors, architects, solicitors, Investment manager, accountants etc. A record of all meetings and decisions taken is kept by the Bailiff & Estates Manager on the Master & Governor’s file.
Specific Investment Powers
The Charity’s investment powers are now conferred by the Trustees’ Act 2000.
c. Related Party Relationships
The John Darrel Scholarship is a charity set up under the same Will. The Hospital of the Holy and Undivided Trinity provide administrative work for the charity and hold the investment properties (2 Scholarship Yard, Bridgegate & 66, 68, 70 & 72 Bridgegate) in the charity in their name as custodian. The charity aids the funding of students from Nottinghamshire and Lincolnshire attending Exeter College at the University of Oxford. The properties are shown on the balance sheet of the John Darrel Scholarship. The bank accounts of The John Darrel Scholarship are also held by Trinity Hospital but are named in order to distinguish the balances.
d. Risk Assessment
The Trustee has assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and is satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The risk assessment policy has included the production of a flood risk assessment for the Bridgegate properties, which has been helpful to tenants, particularly in gaining adequate levels of insurance. Although the almshouses are unlikely to be affected by flooding, a ‘disaster plan’ has been produced and implemented for use in cases of emergency, including fire, flood and earthquake.
All of the charity’s property is insured through the Ecclesiastical Insurance Group. The insurance cover also provides for two years loss of rental income and Employer’s and Public Liability Insurance.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Objectives and Activities
a. Objects and Aims
The objects and aims of the charity are set out in the Scheme drawn up by the Charity Commission. These are:
(i) Benefit of Brethren - the income of the charity shall be applied for the benefit of the brethren of the charity or any of them in such manner as the Master or acting Master shall think fit from time to time. The brethren shall be poor bachelors or widowers of good character who are not less than 50 years of age. Clause 9 of the Scheme of 28 June 1974 states that the almsmen of the charity will be known as brethren.
(ii) Expenses of Management - the cost of repairs, insurance and all other charges and outgoings payable in respect of the property of the charity, and all the proper costs, charges and expenses incidental to the administration and management of the charity shall first be defrayed out of its income.
b. Principal Activities
The main aim of the charity is to maintain the benefits the brothers are entitled to on appointment. These are:
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Accommodation, which is free of any Weekly Service Charge.
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No maintenance charges. The charity funds all repairs and renovations.
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The receipt of a monthly stipend. This is reviewed annually.
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Assistance with heating and electricity costs.
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A holiday allowance.
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A resident Scheme Manager in case of emergencies and the provision of an emergency call alarm system.
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The opportunity of weekday worship in the Chapel.
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The use of a mobility scooter for any brother who has mobility problems
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Any brother may reserve the hospitality suite at Trinity Hospital for visits from relatives and friends.
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The provision of an annual Trinity Feast.
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External visits to places of interest.
The monies needed to support the brothers, pay stipends and salaries, fund repairs and maintain all the charity’s property are derived from rental income, dividend income and bank deposit interest. The charity is not a fund raising charity and receives no donations.
In addition to Trinity Hospital, the charity owns and rents out 55 residential property units, 14 commercial units, one farm and approximately 280 acres of farm land and 2 local leisure facilities.
(i) Extraordinary Repair Fund
Subject to any further Order or Orders of the Commissioners, a reserve fund to be entitled the Extraordinary Repair Fund shall be established and maintained for the purpose of providing for the extraordinary repair, improvement or rebuilding of the almshouses belonging to the charity.
The fund shall be established and maintained out of the income of the charity either by transfer to the fund of a yearly sum of not less than £320 or in such other manner as the Commissioners from time to time approve or direct.
(ii) Annual Dinner
An annual dinner shall be provided for the brethren out of the income of the charity as near to Trinity Sunday as is conveniently possible at such reasonable expense as the Master Governor or acting Master Governor shall think fit.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Achievements and Performance
a. Establishment Activities and Achievements
Events
6th January 2022 - The Epithany Feast was held in The Darrel Room and attended by the brothers
26th January 2022 - Post Christmas staff lunch
28th February 2022 - Brethren lunch
9th March 2022 - Founder’s Day Service and lunch
23rd March 2022 - Induction Service for Antonio Mola Trafi and Paul Rutledge followed by lunch in the Audit Room
10th May 2022 - visit to Lincoln Cathedral with tour of the cathedral and afternoon tea hosted by Rev Canon Nick Brown
23rd June 2022 – Trinity Feast Chapel Service followed by lunch in The Darrel Room
1st July 2022 - Dale Wells began residing at Trinity Hospital
9th July 2022 - Peak Rail trip with afternoon tea served on board the train
2nd September 2022 - Induction Service for Brian Launders followed by lunch in the Audit Room
22nd September 2022 - the sad passing of Tony Stimson
1st October 2022 - James (Jimmy) Matthews began residing at Trinity Hospital
19th October 2022 - The Annual General Meeting was held in the Chapel, and chaired by Rev Canon Nick Jones, with the Trustee Reports of the Trinity Hospital and the John Darrel Scholarship being received and discussed. The meeting was well attended and the brothers and staff discussed the reports. Afterwards the staff and brethren had a day trip to York Minster
28th October 2022 - Harvest Festival Chapel Service
31st October 2022 - Chapel Service in remembrance of Tony Stimson followed by the scattering of ashes in the community garden
22nd December 2022 – The Christmas Carol Service was held in the chapel
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Brethren
The brethren are ably supported by The Scheme Manager and the Chaplain.
During 2022 there were formal inductions of Antonio Mola Trafi and Paul Rutledge into Trinity Hospital and Dale Wells and James “Jimmy” Matthews were invited to join the community and reside at Trinity Hospital. Unfortunately in September 2022 Tony Stimson sadly passed away.
Public Benefit Summary
The Master & Governor, in exercising his powers and duties, is mindful of his need to comply with the guidance on public benefit published by the Charity Commission. In describing the objectives, activities and achievements, the Charity continues to demonstrate its commitment and support to its brethren in accordance with the Will of John Darrel.
The charity is proud of what has been achieved over so many generations in providing almshouse accommodation to those with a need for support and a welcoming community. It continues to strive to fulfil the objectives specified in the Charity Commission Scheme for Trinity Hospital in accordance with Best Practice. In keeping the benefits to the Brethren under regular review, the Master & Governor is confident that he is meeting his responsibilities for the provision of Public Benefit in full.
History of the Charity
From 1672 John Darrel’s own manor house was used as the living accommodation for the almsmen. Having fallen into disrepair by the 1830s, the house was demolished and replaced by the present building (the architect responsible for the new building was also commissioned for the design and construction of Buckingham House, now Buckingham Palace). The present accommodation provides 15 small cottage units for brothers, cottage accommodation for the Scheme Manager, a Chapel, Audit Room, parlour and laundry facilities. The Audit Room and Parlour are used for social functions.
The hospital building is Grade II listed and is set in its own grounds. These are laid to lawns, with flower beds, trees and shrubs. The almshouses are routinely refurbished and upgraded. Each centrally heated cottage is self contained and provides a living room, kitchen and shower room on the ground floor with a large bedroom on the first floor. The almshouses are within walking distance of Retford town centre.
Estate: Stewardship of Assets
Maintenance
The exterior of Trinity Hospital was completely painted in 2022 and 2 cottages were refurbished internally before being made available for occupation, as well as repair works to footpath/car park and a new bin store, and in total this expenditure amounted to approximately £85,000. Other general repairs and maintenance increased the total expenditure throughout the estate to approximately £110,000
Hanging baskets were again erected along the frontage of properties at Bridgegate, Retford, and at Trinity Hospital, to improve and enhance the appearance of the properties and quality of life for the brethren and Trinity residents. The scheme on Bridgegate was very well received by both residents and the wider Retford community and created a sense of civic pride as well as enhancing the properties owned by Trinity
Maintenance of the fabric and compliance with legislative obligations has continued for Trinity Hospital and other property holdings of the charity and has incurred additional cost with further statutory obligations imposed in terms of residential and commercial property management.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Retford Property and Land Developments and Plans for the Future
Following the sale of the Phase 1 residential land, the capital receipt was used to purchase a mixed-use petrol filling station and retail scheme on the North Road, anchored by the Co-op on a long lease and with Greggs in another unit let to Colemans Home Center Ltd. In total there were 4 retail units and the investment will generate a long- term income stream for the charity as well as being the reinvestment of the sale proceeds into the local economy. The letting of the vacant unit has not been successful at present but this is in part due to the changing economic climate
Negotiations are also underway with the local authority and developers for the development of other land owned by Trinity on the North Road for further residential homes and a separate commercial park where it is hoped to create much needed employment opportunities within the town. The further land on the west side and within Trinity ownership has been put forward in the emerging Local Plan for further residential development of another 305 houses
Investment in the retail site on the North Road generating additional income to the charity, and the repayment of previous bank loans has cleared the debt and removed the interest payments, and this has resulted in increased operating surpluses for the charity. It is proposed these initial surpluses will help fund a small scheme of 5 single storey units at Trinity Hospital to expand and improve the accommodation available for the brethren. The existing cottages are within a Grade 2 Listed Building and the accommodation consists of effectively ground floor living room, kitchen, wc / shower room and to the first floor is the bedroom. The access to the upper floor is by tight and steep stairs which as the brethren get older becomes more problematic. As the existing brethren get older and less ambient the physical constraints of the accommodation creates difficulties for them and ultimately, if this becomes too problematic, then it would be necessary for them to find alternative living arrangements to suit their needs. The new cottages are primarily aimed at the existing brethren to enhance and prolong their residency within the Trinity community. The cottages they vacate will then be available for new admissions.
Strategic Direction of the Charity
Whilst satisfied that the present work of the charity fulfils the expectations of the original bequest made by John Darrell, the trustee is aware that any organisation should always seek to ensure that it is well equipped for future demands. Over the last couple of years, this has led to the examination of two areas for future development within the charity: governance of the charity and expansion of facilities.
(a) Governance
The governance of the charity is substantially that which has been sufficient for the first three centuries, with the Subdean of Lincoln (or most senior residentiary canon of Lincoln Cathedral, when there is no subdean) being the sole trustee of the charity. It is felt that with the changes in expectation of charity governance it would be better practice for the obligations of trusteeship to be shared by more than one trustee. During 2022, much preparatory work has been done toward changing the governance structures. The Charity Commission have recently confirmed that they have no objection to the course being proposed, and the trustee is now arranging for the necessary legal changes to establish a different governance structure with additional trustees to be put in place.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
(b) Expansion of Provision
The good stewardship of resources by past generations means that Trinity Hospital is in a position to consider the ways in which it could expand the provision that it makes:
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A first element of this is to enhance the existing facilities. In this respect, the present cottages within the Hospital are not conveniently arranged for those with mobility issues, and a need for more accessibly accommodation has been identified in order that brothers may stay within the Hospital for longer if they are affected by serious health or mobility issues. To this end, plans have been drawn up to establish such facilities, and it is hoped that towards the end of 2023 and into 2024 these facilities will be built and become available for use.
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As reported in the 2021 Annual Report and discussed with the brethren at the Annual Meetings since then, the trustee is also aware that the current provision continues that as established by John Darrell only for single men, and thought has gone into how parallel provision for single women might be developed if there is demand. Providing comparable facilities (and the necessary resources) to support and sustain provision for the spiritual and physical welfare of single women in a parallel institution would be a significant undertaking. As well as accommodation, provision of religious services would require the provision of another chapel for the women (or a larger chapel that could be shared by the worship of both brothers and sisters), as well as provision for physical and spiritual welfare of any sisters, including the provision of a chaplain. Despite the potential challenges, consultation has begun as to how such provision might be developed in the future – and indeed, whether there is the demand for such provision.
Recently, the charity has been fortunate in realising funds and developing a consistent surplus of annual income. The income accumulated in recent years is being used to fund the current expansion and improvement of facilities. Future surplus funds will continue be accumulated so that the charity is in a position to meet the substantial capital costs of developing parallel provision to meet the spiritual, emotional and physical needs of women in the future. The scale of funds required to build and put in place such provision means that, unless substantial unexpected funds become available, this is a medium to long term objective for the charity.
(c) Development of Land
In considering future development of the charity, it is also necessary to comment on the status of plans to develop the land-holdings of the charity. Whilst this is reported in more detail by the Bailiff, one strategic decision has been to step back from development, for commercial use, of land to the east of North Road. Whilst this is allocated within the local plan and a developer had been engaged to bring this land into use, the lack of engagement on the part of the local authority over the past 18 months and the change in market conditions during this period mean that it is unlikely that the any further investment of time and effort in this project will make an appropriate return for the charity. Whilst the charity would like to work with others to bring this land into use in a way that contributes to the local economy, this particular development project is now seen as a longterm prospect for development.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Financial Review including Key Performance Indicators
The Statement of Financial Activities for the year is set out on pages 18 and 19 of the financial statements. A summary of the financial results is set out below:
(a) Charitable Activities
The net yield after deductions for the investment, property and management costs resulted in a figure of £767,902 (2021 - £583,811) available to the charity for its core activities. In meeting the objects of the charity £53,795 (2021 - £43,587) was directed to the specific benefits of the Brethren with a further £4,123 (2021 - £1,682) spent on entertainment and feasts as detailed in note 9 to the financial statements.
Net incoming resources for the year before disposals, revaluations and transfers were £415,446 (2021 - £354,356).
An increase to the brethren’s monthly stipend of 5.25% with effect from 1 January 2022 was approved. The heating allowance was increased to a ceiling cap of £900 and the brethren’s holiday allowance of up to £750 remained unchanged. Officers and staff salaries were also increased by 5.25%.
(b) Net Income from Estates
Total income received from rental properties was £727,593 (2021 - £528,590), an increase of £199,003 on the previous year with the increase being largely due to the acquisition in the year.
(c) Property Revaluation 2022
A full detailed valuation of property has been undertaken by Fisher German LLP.
(d) Other Investment Returns
The charity’s endowment cash funds are invested in a wideranging investment portfolio managed by Investec Wealth and Management. The investment risk level of medium has remained unchanged during 2022. The charity has also invested other funds in a portfolio managed by Investec with an investment risk level of low which is also unchanged during 2022. Two meetings were held with the Fund Manager during the year.
Total income from the investment portfolio and other bank interest was £190,385 (2021 - £209,274).
At 31 December 2022, the overall market value of the investment portfolios was £6,378,728 (2021 - £5,359,472). The market value of endowment fund portfolio was £6,262,221 (2021 - £5,220,784) and the market value of other funds was £116,507 (2021 - £138,688).
The charity has also deposited a number of funds with the CCLA. These include:
COIF Permanent Endowment Fund (within Fixed Asset Investments) - this fund has helped support the continuing refurbishment and upgrading of the charity’s Permanent Endowment properties.
COIF Extraordinary Repair Account - this deposit account is managed by CCLA and is a fund set aside for any major repair and refurbishment works at Trinity Hospital. Interest earned is re invested in the account.
COIF General Purposes Deposit Account - this fund continues to support the property investment strategy of the Charity by maintaining available cash on accessible deposit.
COIF Rental Bond Account - this fund represents the charity’s rental bond deposits.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Internet Banking Accounts
The charity operates its day to day financial business through its internet bank accounts held with Virgin Money following the rebranding of Yorkshire Bank during the year. Banking through these online accounts has saved the charity time and money.
(e) Staff Pensions
During the year, the charity continues to make payments to comply with the Government’s Auto Enrolment Scheme.
(f) Trustee's Indemnity Insurance
Trustee's Indemnity Insurance cover is £5m.
Reserves
Total reserves as at 31 December 2022 are £26,350,979 (2021 - £31,364,429). The charity cannot spend its permanent endowment fund. The policy is to have sufficient free reserves to meet two years expenditure in order to fulfil the objects of the charity, namely:
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Maintenance and upkeep of the almshouses’ related running costs.
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Provision of an annual dinner for the brethren.
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Benefit of the brethren who shall be poor bachelors or widowers of good character who are not less than 50 years of age.
It is calculated that the free reserves (otherwise known as Unrestricted Funds not including any amounts tied within Fixed Assets or Loans) amount to £380,343 (2021 - £391,792).
Permanent Endowment
The charity owns investments in the form of land and property and as securities within both the Permanent Endowment and Unrestricted (Accumulated Income) Funds. The object has been to manage all the assets in the best interest of the charity in order to support its charitable activities and to protect the interests of current and future brethren.
From time to time an opportunity has arisen to invest in property by acquisition or by improvement or development of existing holdings. The portfolio of other investments has been maintained to provide balance.
Going Concern
After making appropriate enquiries, the Trustee has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason he continues to adopt the going concern basis in preparing the financial statements.
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
TRUSTEE'S RESPONSIBILITIES STATEMENT
The Trustee is responsible for preparing the Trustee's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee is required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable him to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. He is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Trustee on 26 September 2023
The Reverend Canon Nicholas J W Brown Master & Governor
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
Opinion
We have audited the financial statements of The Hospital of the Holy and Undivided Trinity (the 'charity') for the year ended 31 December 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2022 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Trustee's 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 Trustee with respect to going concern are described in the relevant sections of this report.
Page 14
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY (CONTINUED)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustee are responsible for the other information contained within the Annual 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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustee's report is inconsistent in any material respect with the financial statements; or
-
sufficient 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 Trustee's responsibilities statement, the Trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustee 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 Trustee 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 Trustee either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Page 15
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the 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 Auditors' 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions and from our commercial knowledge and experience of the charity, the sector in which it operates and the services it provides;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011, taxation legislation, data protection, anti-bribery, employment, environmental, landlord and health and safety legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
agreed a sample of employees to existence and agreed the accuracy of pay in the year;
-
agreed the accuracy of rental and investment portfolio income receivable in the year;
-
vouched the ownership of property to third-party documentation; and
-
tested journal entries to identify unusual transactions.
Page 16
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY (CONTINUED)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the charity's trustee in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to them in an Auditors' 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 its trustee for our audit work, for this report, or for the opinions we have formed.
Streets Audit LLP Chartered Accountants & Statutory Auditor Tower House Lucy Tower Street Lincoln LN1 1XW 2 October 2023
Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 17
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Income and endowments from: Charitable activities 4 Investments 5 Other income 6 Total income and endowments Expenditure on: Raising funds: 7,8 Investment property management Investment portfolio management Charitable activities: 9 Establishment Support Total expenditure Net income / (expenditure) before net gains on investments Net (losses)/gains on investments Net movement in funds before other recognised gains/(losses) Other recognised gains/(losses): (Losses)/gains on revaluation of fixed assets Net movement in funds |
Unrestricted funds 2022 £ 3,201 916,970 900 921,071 131,486 452 227,882 124,574 484,394 436,677 (128,729) 307,948 - 307,948 |
Restricted funds 2022 £ - 665 - 665 - - - - - 665 - 665 - 665 |
Endowment funds 2022 £ - 345 - 345 - 22,241 - - 22,241 (21,896) (5,050,167) (5,072,063) (250,000) (5,322,063) |
Total funds 2022 £ 3,201 917,980 900 922,081 131,486 22,693 227,882 124,574 506,635 415,446 (5,178,896) (4,763,450) (250,000) (5,013,450) |
Total funds 2021 £ 138 737,864 900 738,902 |
|---|---|---|---|---|---|
| 145,893 9,198 120,917 108,538 384,546 |
|||||
| 354,356 11,016,560 |
|||||
| 11,370,916 203,400 11,574,316 |
Page 18
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 3,351,416 307,948 3,659,364 |
Restricted funds 2022 £ 35,153 665 35,818 |
Endowment funds 2022 £ 27,977,860 (5,322,063) 22,655,797 |
Total funds 2022 £ 31,364,429 (5,013,450) 26,350,979 |
Total funds 2021 £ 19,790,113 11,574,316 31,364,429 |
|---|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 23 to 42 form part of these financial statements.
Page 19
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
BALANCE SHEET AS AT 31 DECEMBER 2022
| Note Fixed assets Tangible assets 13 Investments 15 Investment property 14 Current assets Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 18 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 19 Net assets excluding pension liability Defined benefit pension scheme liability 27 Total net assets |
42,891 633,542 676,433 (138,153) |
2022 £ 1,645,914 6,378,728 17,870,500 25,895,142 538,280 26,433,422 - 26,433,422 (82,443) 26,350,979 |
1,480,388 578,982 2,059,370 (155,993) |
2021 £ 1,897,796 5,359,472 22,676,000 29,933,268 1,903,377 31,836,645 (374,492) 31,462,153 (97,724) 31,364,429 |
|---|---|---|---|---|
Page 20
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2022
| Note Charity funds Endowment funds 20 Restricted funds 20 Unrestricted funds 20 Total funds |
2022 £ 22,655,797 35,818 3,659,364 26,350,979 |
2021 £ 27,977,860 35,153 3,351,416 |
|---|---|---|
| 31,364,429 |
The financial statements were approved, authorised for issue and signed by the Trustee on 26 September 2023
The Reverend Canon Nicholas J W Brown, Master & Governor
The notes on pages 23 to 42 form part of these financial statements.
Page 21
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Income received from investments Purchase of tangible fixed assets / investment property Proceeds from sale of investment property Net amounts withdrawn / (paid in) to investment portfolio Net cash provided by investing activities Cash flows from financing activities Cash inflows from new borrowing Repayment of borrowings Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year |
2022 £ (517,521) 917,980 - 1,415,035 (1,347,936) 985,079 - (412,998) (412,998) 54,560 578,982 633,542 |
2021 £ (385,287) 733,577 (5,416,371) 4,150,000 1,414,198 881,404 100,000 (432,681) (332,681) 163,436 415,546 578,982 |
|---|---|---|
The notes on pages 23 to 42 form part of these financial statements
Page 22
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. General information
As set out in the Trustee's report, The Hospital of the Holy and Undivided Trinity is an unincorporated registered charity in England & Wales. The principal office of the charity is Trinity Estates Office, Newcastle House, 37 Bridgegate, Retford, DN22 7UX.
The principle objective of the charity is to support the Brethren of the charity; the Brethren being poor bachelors or widowers of good character who are not less than 50 years of age.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Hospital of the Holy and Undivided Trinity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in sterling, which is the functional currency of the charity.
2.2 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 23
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.3 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.4 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.5 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a charity may need to estimate fair value using an income or depreciated replacement cost approach.
Gains and losses on revaluation are recognised in the Statement of financial activities.
At each reporting date the charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Page 24
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.5 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Freehold Property No Depreciation Other Assets - 10% and 25% Straight line
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Liabilities and Provisions
Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 25
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.11 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
3. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Tangible fixed assets are recognised at cost or valuation, less accumulated depreciation and any impairment. Depreciation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the charity's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.
The valuation of freehold and investment property is based on third party valuations which by their nature are judgmental and based on assumptions.
The pension provision is based on expected future costs to the charity calculated based on life expectancy tables and discounted at the charity's investment rate of return.
Page 26
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
4. Income from charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2022 | 2022 | 2021 | |
| £ | £ | £ | |
| Income from Charitable Activities | 3,201 | 3,201 | 138 |
5. Investment income
| Rental and Associated Income Investment Portfolio Income Interest Received Total 2022 Total 2021 |
Unrestricted funds 2022 £ 727,593 188,167 1,210 916,970 737,856 |
Restricted funds 2022 £ - - 665 665 4 |
Endowment funds 2022 £ - - 345 345 4 |
Total funds 2022 £ 727,593 188,167 2,220 917,980 737,864 |
Total funds 2021 £ 528,590 209,109 165 737,864 |
|---|---|---|---|---|---|
6. Other incoming resources
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2022 | 2022 | 2021 | |
| £ | £ | £ | |
| Staff Recharges | 900 | 900 | 900 |
Page 27
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
7. Expenditure on raising funds
Costs of investment property management
| Repairs Rates, Insurance and Utilities Professional and Miscellaneous Loan Interest Wages and Salaries National Insurance Pension Costs Total 2022 |
Unrestricted funds 2022 £ 42,173 20,135 13,159 - 52,897 1,457 1,665 131,486 |
Total funds 2022 £ 42,173 20,135 13,159 - 52,897 1,457 1,665 131,486 |
Total funds 2021 £ 54,083 20,541 18,300 2,906 48,058 422 1,583 145,893 |
|---|---|---|---|
8. Investment management costs
| Investment Management Total 2021 |
Unrestricted funds 2022 £ 452 210 |
Endowment funds 2022 £ 22,241 8,988 |
Total funds 2022 £ 22,693 9,198 |
Total funds 2021 £ 9,198 |
|---|---|---|---|---|
Page 28
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
9. Analysis of expenditure by activities
| Establishment Costs Direct Benefits Total 2022 Total 2021 Analysis of direct costs |
Activities undertaken directly 2022 £ 169,964 57,918 227,882 120,917 |
Support costs 2022 £ 124,574 - 124,574 108,538 |
Total funds 2022 £ 294,538 57,918 352,456 229,455 |
Total funds 2021 £ 184,186 45,269 229,455 |
|---|---|---|---|---|
| Staff Costs Monthly Allowance - Brethren Holiday Allowance - Brethren Heating Allowance - Brethren Entertainment Expenses Feast Expenses Repairs and Maintenance Cottage Refurbishment Rates, Utilities and Insurance Miscellaneous Expenses Total 2022 |
Total funds 2022 £ 26,856 43,472 4,862 5,461 2,712 1,411 53,939 73,090 13,698 2,381 227,882 |
Total funds 2021 £ 25,262 36,560 2,860 4,167 535 1,147 34,604 548 13,003 2,231 120,917 |
|---|---|---|
Page 29
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
9. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff Costs Depreciation Rates, Utilities and Insurance Office Costs Miscellaneous Expenses Loan Interest Irrecoverable VAT Governance Costs Legal and Professional Costs Pension Provision - Changes in Assumptions Charge Total 2022 |
Total funds 2022 £ 20,370 1,882 13,635 9,192 3,267 1,828 16,311 6,256 50,534 1,299 124,574 |
Total funds 2021 £ 16,688 4,071 11,137 7,135 2,105 11,624 6,120 6,373 18,840 24,445 108,538 |
|---|---|---|
| 10. | Auditors' remuneration | ||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Fees payable to the charity's auditor for the audit of the charity's annual | |||
| accounts | 6,000 | 5,900 |
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £ 97,304 2,273 3,668 103,245 |
2021 £ 87,902 624 3,487 |
|---|---|---|
| 92,013 |
Page 30
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
11. Staff costs (continued)
The average number of persons employed by the charity during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Hospital and Administration | 5 | 5 |
No employee received remuneration amounting to more than £60,000 in either year.
The total amount of key management personnel benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £52,693 (2021 - £47,084).
12. Trustee's remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year ended 31 December 2022, expenses totalling £ 256 were reimbursed or paid directly to 1 Trustee (2021 - £373 to 2 Trustees) .
Page 31
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
13. Tangible fixed assets
| Cost or valuation At 1 January 2022 Revaluations At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Freehold property £ 1,893,000 (250,000) 1,643,000 - - - 1,643,000 1,893,000 |
Fixtures and fittings £ 57,489 - 57,489 52,693 1,882 54,575 2,914 4,796 |
Total £ 1,950,489 (250,000) 1,700,489 52,693 1,882 54,575 1,645,914 1,897,796 |
|---|---|---|---|
Freehold property is included in the financial statements at a valuation. The 2022 valuations were made by Fisher German, an independent and appropriately qualified valuer.
14. Investment property
| Valuation At 1 January 2022 Revaluations At 31 December 2022 |
Freehold investment property £ 22,676,000 (4,805,500) 17,870,500 |
|---|---|
The 2022 valuations were made by Fisher German, an independent and appropriately qualified valuer.
Page 32
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
15. Fixed asset investments
| Cost or valuation At 1 January 2022 Additions Disposals Revaluations At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Investment Portfolio £ 5,359,472 1,433,821 (85,885) (328,680) 6,378,728 6,378,728 5,359,472 |
|---|---|
16. Investment Portfolio
| Material Investments UK Fixed Interest UK Equities Overseas Fixed Interest Overseas Equities Property Multi Asset Diversified Alternative Assets Emerging Economies Cash COIF Permanent Endowment Total 2022 |
Permanent Endowment Fund 2022 £ 530,184 1,420,697 484,859 2,339,796 264,774 793,735 97,178 139,214 156,158 35,626 6,262,221 |
Accumulated Income Fund 2022 £ 85,028 - 25,916 - - - - - 5,563 - 116,507 |
Total funds 2022 £ 615,212 1,420,697 510,775 2,339,796 264,774 793,735 97,178 139,214 161,721 35,626 6,378,728 |
|---|---|---|---|
Page 33
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
17. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ 2,761 1,524 38,606 42,891 |
2021 £ 11,975 1,435,756 32,657 |
|---|---|---|
| 1,480,388 |
18. Creditors: Amounts falling due within one year
| Bank loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 January Resources deferred during the year Amounts released from previous periods |
2022 £ - 4,590 12,355 43,710 77,498 138,153 2022 £ 63,875 63,875 (63,875) 63,875 |
2021 £ 38,506 1,296 2,756 41,295 72,140 |
|---|---|---|
| 155,993 | ||
| 2021 £ 63,875 63,875 (63,875 |
||
| 63,875 |
At the year-end, the charity had received rental income in advance for 2022.
Page 34
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
19. Creditors: Amounts falling due after more than one year
| Bank loans Included within the above are amounts falling due as follows: Between one and two years Bank loans Between two and five years Bank loans |
2022 £ - 2022 £ - - |
2021 £ 374,492 |
||
|---|---|---|---|---|
| 2021 £ 124,617 249,875 |
||||
Bank loans are secured against land at Whinley's Farm with a net book value of £1,500,000 in the financial statements.
Page 35
THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
20. Statement of funds
Statement of funds - current year
| Unrestricted Funds Legacy Funds General Funds Endowment Funds Endowment Funds Restricted Funds Extraordinary Repair Fund Total of Funds |
Balance at 1 January 2022 £ 5,550 3,345,866 3,351,416 27,977,860 35,153 31,364,429 |
Income £ - 921,071 921,071 345 665 922,081 |
Expenditure £ - (484,394) (484,394) (22,241) - (506,635) |
Gains/ (Losses) £ - (128,729) (128,729) (5,300,167) - (5,428,896) |
Balance at 31 December 2022 £ 5,550 3,653,814 3,659,364 |
|---|---|---|---|---|---|
| 22,655,797 | |||||
| 35,818 | |||||
| 26,350,979 |
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
20. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted Funds Legacy Funds General Funds Endowment Funds Endowment Funds Restricted Funds Extraordinary Repair Fund Total of Funds |
Balance at 1 January 2021 £ 5,550 2,642,015 2,647,565 17,107,399 35,149 19,790,113 |
Income £ - 738,894 738,894 4 4 738,902 |
Expenditure £ - (375,558) (375,558) (8,988) - (384,546) |
Transfers in/out £ - (640) (640) 640 - - |
Gains/ (Losses) £ - 341,155 341,155 10,878,805 - 11,219,960 |
Balance at 31 December 2021 £ 5,550 3,345,866 3,351,416 |
|---|---|---|---|---|---|---|
| 27,977,860 | ||||||
| 35,153 | ||||||
| 31,364,429 |
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
21. Details of charity funds
Unrestricted Funds:
General Funds represent the free funds of the charity which are available for use towards any of the objects of the charity.
Legacy Funds represents amounts left to the charity by former Brethren which will be put to a specific purpose yet to be agreed by the Trustee.
Endowment Funds:
Endowment Funds represent a Permanent Endowment Fund which must be held permanently by the charity. Funds are principally held in the form of investments and cannot be added to or spent. Income arising from the fund can be used in accordance with the charity's objects and is therefore included within unrestricted income in the SoFA.
Net transfers in and out of the Endowment Fund represent additions to endowment assets out of unrestricted income.
Restricted Funds:
The Extraordinary Repair Fund is held specifically for the repair, maintenance and restoration of the almshouse buildings and chapel. The fund shall be established and maintained out of the income of the charity either by transfer to the fund of a yearly sum of not less than £320 or in such other manner as the Commissioners from time to time approve or direct.
In the current year, there were no repairs that were paid out of the Extraordinary Repair Fund.
22. Summary of funds
Summary of funds - current year
| General funds Endowment funds Restricted funds |
Balance at 1 January 2022 £ 3,351,416 27,977,860 35,153 31,364,429 |
Income £ 921,071 345 665 922,081 |
Expenditure £ (484,394) (22,241) - (506,635) |
Gains/ (Losses) £ (128,729) (5,300,167) - (5,428,896) |
Balance at 31 December 2022 £ 3,659,364 22,655,797 35,818 26,350,979 |
|---|---|---|---|---|---|
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
22. Summary of funds (continued)
Summary of funds - prior year
| General funds Endowment funds Restricted funds |
Balance at 1 January 2021 £ 2,647,565 17,107,399 35,149 19,790,113 |
Income £ 738,894 4 4 738,902 |
Expenditure £ (375,558) (8,988) - (384,546) |
Transfers in/out £ (640) 640 - - |
Gains/ (Losses) £ 341,155 10,878,805 - 11,219,960 |
Balance at 31 December 2021 £ 3,351,416 27,977,860 35,153 31,364,429 |
|---|---|---|---|---|---|---|
23. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Provisions for liabilities and charges Total |
Unrestricted funds 2022 £ 145,914 35,772 3,210,000 488,274 (138,153) (82,443) 3,659,364 |
Restricted funds 2022 £ - - - 35,818 - - 35,818 |
Endowment funds 2022 £ 1,500,000 6,342,956 14,660,500 152,341 - - 22,655,797 |
Total funds 2022 £ 1,645,914 6,378,728 17,870,500 676,433 (138,153) (82,443) 26,350,979 |
|---|---|---|---|---|
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
23. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total |
Unrestricted funds 2021 £ 147,796 57,953 3,317,000 456,876 (155,993) (374,492) (97,724) 3,351,416 |
Restricted funds 2021 £ - - - 35,153 - - - 35,153 |
Endowment funds 2021 £ 1,750,000 5,301,519 19,359,000 1,567,341 - - - 27,977,860 |
Total funds 2021 £ 1,897,796 5,359,472 22,676,000 2,059,370 (155,993) (374,492) (97,724) 31,364,429 |
|---|---|---|---|---|
24. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Gains on investments Investment income Decrease/(increase) in debtors Increase in creditors Investment portfolio management costs Contributions paid against pension provision Charge for change in pension provision assumptions Net cash used in operating activities |
2022 £ (4,763,450) 1,882 3,696,453 (917,980) 1,437,497 20,666 22,692 (16,580) 1,299 (517,521) |
2021 £ 11,370,916 4,071 (11,016,560) (737,864) (28,881) 7,667 9,198 (18,279) 24,445 (385,287) |
|---|---|---|
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
25. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £ 633,542 633,542 |
2021 £ 578,982 |
|---|---|---|
| 578,982 |
26. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
At 1 January 2022 £ 578,982 (38,506) (374,492) 165,984 |
Cash flows £ 54,560 38,506 374,492 467,558 |
At 31 December 2022 £ 633,542 - - 633,542 |
|---|---|---|---|
27. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £3,668 (2021 - £3,487). Contributions totalling £nil (2021 - £nil) were payable to the fund at the balance sheet date and are included in creditors.
A provision is made in the financial statements in respect of the charity's self-funded pension to its retired staff which is paid through the payroll. During the year, the charity paid £16,560 (2021 - £18,279) in respect of pensions with an expense arising due to changes in assumptions of £1,299 (2021 - £24,445). The provision as at 31 December 2022 is £82,443 (2021 - £97,724).
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THE HOSPITAL OF THE HOLY AND UNDIVIDED TRINITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
28. Operating lease commitments - as Lessor
At 31 December 2022 the charity had commitments to receive future minimum lease payments under non-cancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2022 £ 410,335 1,440,982 2,233,331 4,084,648 |
2021 £ 417,395 1,479,575 3,601,654 |
|---|---|---|
| 5,498,624 |
29. Related party transactions
During the year, transactions took place with The John Darrel Scholarship, a charity in which the charity trustee is also the sole trustee. The Founder of the Hospital also established The John Darrel Scholarship.
Management recharges of £900 (2021 - £900) were received from The John Darrel Scholarship relating to staff recharges. The balance outstanding at the year end is £1,400 (2021 - £1,400) and is included within other debtors.
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