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2022-03-31-accounts

VirtualSignature Transaction Ref. DTHV-CFJN-9J92 07 Mar 2023 10:33:20 GMT (UTC +0) D 2/2 P 1/31

Registered number: 0701225 Regulator of Social Housing number: H2980 Charity number: 233423

THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

VirtualSignature Transaction Ref. DTHV-CFJN-9J92 07 Mar 2023 10:33:20 GMT (UTC +0) D 2/2 P 2/31

THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1 - 2
Chairman's statement 3 - 4
Trustees' report 5 - 6
Independent auditor's report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

VirtualSignature Transaction Ref. DTHV-CFJN-9J92 07 Mar 2023 10:33:20 GMT (UTC +0) D 2/2 P 3/31

THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees

K E Davis, Chair R Cummins (resigned 8 September 2021) S Sharpe, Vice Chair (resigned 28 March 2022) Rev D Magowan (resigned 28 March 2022) M Oliver (resigned 28 March 2022) A Duffy (appointed 28 March 2022) D Hutchinson (appointed 28 March 2022) B Thomas (appointed 28 March 2022)

Company registered number

0701225

Charity registered number

233423

Registered office and operations address

11 Maitland Road Reading Berkshire RG1 6NL

Company secretary

D Hutchinson

Regulator of Social Housing registered number

H2980 - deregistered 30th March 2022

Independent auditor

James Cowper Kreston Audit Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Bankers

Lloyds TSB Bank Plc Market Place Reading Berkshire RG1 2EQ

CCLA Investment Management Ltd St. Alphage House 2 Fore Street London EC2Y 5AQ

Solicitors

Clifton Ingram LLP County House 17 Friar Street Reading Berkshire RG1 1DB

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THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

The chairman presents her statement for the year.

Apart from the huge personal and financial impact of the Covid-19 pandemic, the year 2021/22 was very different; a year of re-evaluation and scrutiny and when the Trustees made major decisions to ensure the future of the home. The issues caused by the Covid-19 pandemic had continued in the year and we struggled to attract new residents to Abbeyfield House. The Trustees continued to explore ways to tackle the challenges but by July 2021 we recognised that our options to ensure the future of the home were very limited.

There is a need for all the Abbeyfield societies to be sustainable now and in the future. This requires the ability to address the challenges presented by changing requirements, new laws, supply and demand (empty rooms), affordability and competition from other homes. To address the situation the Trustees decided to merge with another Abbeyfield society to make a bigger and better organisation.

In the past we had benefited from an arrangement with Abbeyfield Wey Valley Society, that provided us with a relief manager when our manager and deputy manager were on sick leave in 2019, and our contact with the society had continued. It was therefore decided that Abbeyfield Wey Valley was the best choice to join with to form one successful, strong organisation. After consultation with residents and relatives and supporters, the merger took effect from 31 January 2022. Abbeyfield Reading Society continues in name only; the home and remaining resources of Abbeyfield Reading Society were passed to Abbeyfield Wey Valley which now operates the home, renamed as Maitland House.

In merging, our prime focus was the protection of the future of Abbeyfield House as the home of our residents and as the workplace for our staff; all staff were moved across to the larger organisation. By joining with another Abbeyfield society we could ensure the ethos and mission remained the same – helping older people to live as independently as possible by providing care, support and companionship, in a warm and friendly environment.

This report covers the year 2021/22 but given the date of the merger, the effective end date for the period is 31 January 2022. The worsening situation in the home was reflected in the financial performance with our net income before transfers at a £1,050k loss, £792k worse than 2020/21. The reduction in income reflects the number of empty rooms in the home; at the start of the financial year there were 11 vacancies and again 11 by the end of January 2022. We budgeted to make an operating loss of £158k and were £892k in excess of that. We were very fortunate in the amount of donations received during the year of £206k. We also received government grants of £26k to help with the Covid-19 crisis.

We took several measures to reduce our costs as much as possible including a pay freeze, making two posts redundant and tightening controls on maintenance and catering spend. To cover our costs during the year we sold the Society’s investment funds. We also called down additional loans from the funds available to us from Eventide & Watts amounting to £100k. Since 2018, the almshouse charity had paid £393k to the Society under a series of loan agreements. As part of the merger arrangements these loans were written off with a proviso that should the care home be sold or cease to operate a compensation payment would be made to Eventide & Watts; this agreement ends on 31 January 2025. Abbeyfield Reading had acted as the corporate trustee of Eventide & Watts and we decided that it was in the best interests of Eventide & Watts for the Society to be removed from its position of control and be replaced by named charity trustees and this took effect on 10 January 2022.

On a positive note, we brought our audit processes into line with best practice and introduced a person centred care software system to better to monitor the physical and mental care of the residents. The reception area was refurbished as part of our efforts to attract new residents that also involved a new marketing campaign. Activities were boosted by the re-introduction of weekly church services, a new yoga session and the purchase of a digital activity table. We were fortunate to have two new Trustees from local churches; David Magowan and Mark Oliver who joined the Executive Board in January 2021. A long serving Trustee, Ron Cummins, retired in September 2021 and we express our thanks for his support and care.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

During the year we received valuable support from the Abbeyfield Society in St. Albans especially in guiding us through some staffing issues, including two redundancies, keeping us up to date with the changes in Covid-19 guidelines and other requirements.

Finally, it just remains for me to thank all past and present staff, trustees, volunteers and residents’ families for their excellent support over the 25 years the home had been operated by Abbeyfield Reading. We wish Abbeyfield Wey Valley and Maitland House every success in the future.

Kathleen Davis 07 Mar 2023 10:33:18 GMT (UTC +0) ............................................ K E Davis Chairman

Date: 07 March 2023

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THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees (who are also directors of the charity for the purposes of Companies Act) present their annual report together with the audited financial statements of the company. The Abbeyfield Reading Society Limited (the company) for the year ended 31 March 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company'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) (effective 1 January 2019).

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

CONSTITUTION

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 18 August 1961.

The company is constituted under a Memorandum of Association dated 18 August 1961 and is a registered charity number 233423.

CHARITABLE OBJECTS AND PRINCIPAL ACTIVITIES

The objects of the Society and the principal activities of the Society are to provide accommodation for lonely and elderly people in accordance with the aims and principles of The Abbeyfield Society Limited. These activities fall wholly within hostel housing activities as defined in the Housing Act 1996.

ORGANISATIONAL STRUCTURE

The trustees who have served during the year are set out on page 1. The body of the trustees consist of the Executive Committee who are appointed by the members of the Society.

The Society is a member of the Abbeyfield Society of 55 Victoria Street, St. Albans, Herts., a federation of independent charities.

The Society acted as a corporate trustee to the Eventide and Watts Charity until 10 January 2022.

Recruitment and induction of Trustees is no longer taking place since the merger.

REVIEW OF ACTIVITIES

See Chairman's Statement on page 3.

RESERVES POLICY

The Abbeyfield Reading Society merged with Abbeyfield Wey Valley Society during the year and all reserves were transferred.

RISK MANAGEMENT

The Trustees have considered the major risks which the Society faces and confirm that systems have been established to ensure that the necessary actions may be taken.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

EXECUTIVE COMMITTEE

The Members of the Executive Committee, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year are listed on page 1.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the charitable company in the event of a winding up. At the Balance Sheet date there were 4 members each guaranteeing to contribute £1.

INFORMATION ON FUNDRAISING PRACTICES

The Society used an external fundraiser, Complete Fundraising Ltd, to raise donations for which it paid a commission fee. The performance of the fundraiser was monitored by quarterly reporting and biannual meetings. It has received no complaints with regard to its fundraising activity and fully complies with fundraising regulations.

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees (who are also directors of The Abbeyfield Reading Society Limited for the purposes 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITOR

Approved by order of the members of the board of Trustees and signed on their behalf by:

Kathleen Davis 07 Mar 2023 10:33:18 GMT (UTC +0) ................................................

K E Davis

Chair Date: 07 March 2023

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ABBEYFIELD READING SOCIETY LIMITED

Opinion

We have audited the financial statements of The Abbeyfield Reading Society Limited (the 'charitable company') for the year ended 31 March 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).

In our opinion the financial statements:

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 charitable company 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.

Emphasis of matter - financial statements prepared on a basis other than going concern

We draw attention to Note 1.3 to the financial statements which explains that the trustees have merged the charity with Abbeyfield Wey Valley Society Limited and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1.3. Our opinion is not modified in respect of this matter.

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, 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.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ABBEYFIELD READING SOCIETY LIMITED (CONTINUED)

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:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ABBEYFIELD READING SOCIETY LIMITED (CONTINUED)

Auditor's 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 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

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 Auditor's report.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ABBEYFIELD READING SOCIETY LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, 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 charitable company's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS

Date:

James Cowper Kreston Audit are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other income
8
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure before net gains on
investments
Net gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2022
£
24,700
-
-
24,700
-
138,870
138,870
(114,170)
-
(114,170)
114,170
(114,170)
-		 Unrestricted
funds
2022
£
594,195
659,952
-
1,254,147
14,870
2,175,979
2,190,849
(936,702)
10,420
(926,282)
926,282
(926,282)
-		 Total
funds
2022
£
618,895
659,952
-
1,278,847
14,870
2,314,849
2,329,719
(1,050,872)
10,420
(1,040,452)
1,040,452
(1,040,452)
-		 Total
funds
2021
£
180,347
824,188
1,944
1,006,479
21,978
1,243,215
1,265,193
(258,714)
34,655
(224,059)
1,264,511
(224,059)
1,040,452

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 29 form part of these financial statements.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee) REGISTERED NUMBER: 0701225

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Investments
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets / liabilites
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 -
-
-
-
-		 2022
£
-
-
-
-
-
-
-
-		 19,557
40
71,741
91,338
(364,569)		 2021
£
1,157,470
156,213
1,313,683
(273,231)
1,040,452
114,170
926,282
1,040,452

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee) REGISTERED NUMBER: 0701225

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Kathleen Davis 07 Mar 2023 10:33:18 GMT (UTC +0) ................................................

K E Davis, Chair

Date: 07 March 2023

The notes on pages 15 to 29 form part of these financial statements.

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THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sale of investments
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Cash transferred to Abbeyfield Wey Valley Society on merger
Net cash provided by 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
21		 2022
£
(308,244)
(7,654)
166,633
158,979
190,000
(90,000)
(22,476)
77,524
(71,741)
71,741
-		 2021
£
(186,557)
(41,245)
-
(41,245)
180,500
-
-
180,500
(47,302)
119,043
71,741

The notes on pages 15 to 29 form part of these financial statements

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies

1.1 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Abbeyfield Reading Society Limited 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.

1.2 Company status

The company is a private company limited by guarantee, incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

The address of the registered office is Abbeyfield House, 11 Maitland Road, Reading, RG1 6NL. The principal activity of the Company is that of a residential care home.

1.3 Going concern

At midnight on 31st January 2022 The Abbeyfield Reading Society Limited merged its operations with The Abbeyfield Wey Valley Society Limited . All of the assets and liabilities were transferred over to Abbeyfield Wey Valley Society Limited and as such The Abbeyfield Reading Society is no longer a going concern. The Trustees have therefore prepared the accounts on a non going concern basis as the charity will no longer provide care home services or other services.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company 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 company 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.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.5 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

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.

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Resident fees are included in the Statement of financial activities on an accruals basis. Income is accrued or deferred as required depending on the timing of the receipts to ensure that fees are included in the correct period.

1.6 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. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

1.7 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation

All assets costing more than £500 are capitalised.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land.

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:

1.9 Housing properties

Housing properties are properties available for rent and properties subject to shared ownership leases.

The property is periodically professionally valued and depreciated in the intervening years.

Housing properties under construction are stated at cost less related social housing grant and other capital grants.

Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements.

Improvements are works which result in an increase in the net rental income, such as an increase in rental income, a reduction in future maintenance costs, or results in a significant extension of the useful economic life of the property in the business. Only the direct overhead costs associated with the new developments or improvements are capitalised.

1.10 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.

1.11 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.12 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.13 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.

1.14 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.

1.15 Liabilities and provisions

Liabilities 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.

1.16 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

2. 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 company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. None of the accounting estimates are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Income from donations and legacies

Donations
Government grants
Loan written off
Total 2021		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
24,700
181,856
-
25,621
-
386,718
24,700
594,195
81,539
98,808		 Total
funds
2022
£
206,556
25,621
386,718
618,895
180,347		 Total
funds
2021
£
111,086
69,261
-
180,347

4. Income from charitable activities

Unrestricted
funds
2022
£
Resident fees
659,952
Total 2021
824,188		 Total
funds
2022
£
659,952
824,188		 Total
funds
2021
£
824,188

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Charitable activities

Catering costs
Household supplies, medical and laundry
Temporary staff costs and staff welfare
Recruitment, training and clothing
Water charges
Rates
Light and heat
Insurance
Maintenance, repairs and renewals
Cleaning and waste disposal
Office costs
Equipment leasing costs
Abbeyfield affiliation fees
Professional fees and bookkeeping
Loan interest
Miscellaneous expenses
Resident entertaining
Wages and salaries
Social security
Pension cost
Depreciation
Donation on transfer out to Abbeyfield Wey Valley Society		 2022
£
46,929
19,648
66,559
13,335
4,270
2,077
31,809
9,412
64,691
14,878
16,757
1,711
7,524
94,526
5,873
15,385
1,488
593,829
49,848
17,128
31,732
1,197,314
2,306,723		 2021
£
68,931
46,514
48,841
3,770
7,300
1,589
30,202
7,991
84,448
17,331
22,534
6,773
8,940
30,838
500
22,156
10
661,349
48,694
18,911
36,989
-
1,174,611

6. Governance costs

Auditors remuneration

2022 2021
£ £
8,500 7,080

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Analysis of expenditure by expenditure type

Staff costs
2022
£
Expenditure on raising
voluntary income
-
Costs of raising funds
-
Donations and grants
660,805
Expenditure on governance
-
Charitable activities
660,805
660,805
Total 2021
728,954
8.
Other incoming resources
Miscellaneous income
Total 2021
9.
Net income/ (expenditure)
Depreciation of tangible fixed assets:
- owned by charity
Auditor's remuneration
Operating leases		 Depreciation
2022
£
-		 Other costs
2022
£
14,870
14,870
1,613,812
8,500
1,622,312
1,637,182
497,593
Unrestricted
funds
2022
£
-
1,944		 Other costs
2022
£
14,870		 Total
funds
2022
£
14,870		 Total
funds
2021
£
21,978
-
31,732
-		 14,870
1,613,812
8,500		 14,870
2,306,349
8,500		 21,978
1,234,478
7,080
- 1,622,312 2,314,849
2,329,719
1,263,536		 1,241,558
1,263,536
31,732 1,637,182
36,989 Total
funds
2021
£
1,944
2021
£
36,989
7,080
6,773
Total
funds
2022
£
-
1,944
2022
£
31,732
8,500
4,000

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
593,829
49,848
17,128
660,805		 2021
£
661,349
48,694
18,911
728,954

During the year redundancy payments of £26k we made. There were no outstanding amounts at the balance sheet date.

The average number of persons employed by the company during the year was as follows:

2022 2021
No. No.
32 34

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel are deemed to be the Trustees as listed on page 1. No remuneration was paid in the year (2021: £nil).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Tangible fixed assets

At 1 April 2021
Additions
Transfer out to Abbeyfield Wey Valley Society
At 31 March 2022
At 1 April 2021
Charge for the year
Transfer out to Abbeyfield Wey Valley Society
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£
1,384,216
-
(1,384,216)
-
287,738
20,498
(308,236)
-
-
1,096,478		 Fixtures &
fittings
£
300,882
7,654
(308,536)
-
239,890
11,234
(251,124)
-
-
60,992		 Total
£
1,685,098
7,654
(1,692,752)
-
527,628
31,732
(559,360)
-
-
1,157,470
13.
Fixed asset investments
At 1 April 2021
Disposals
Revaluations
At 31 March 2022		 Listed
securities
£
156,213
(166,633)
10,420
-

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THE ABBEYFIELD READING SOCIETY LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Debtors

Trade debtors
Other debtors
Prepayments and accrued income
Current asset investments
Unlisted investments		 2022
£
-
-
-
-
2022
£
-		 2021
£
3,141
6,398
10,018
19,557
2021
£
40

15. Current asset investments

16. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
-
-
-
-
-
-		 2021
£
293,006
27,254
8,956
6,736
28,617
364,569

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Property Revaluation
Restricted funds
Residential Support Fund
Garden Project
Boilers
Ground floor refurbishment
Restricted income
Total of funds		 Balance at 1
April 2021
£
623,755
302,527
926,282
64,813
5,107
24,250
20,000
-
114,170
1,040,452		 Income
£
1,254,147
-
1,254,147
-
-
-
-
24,700
24,700
1,278,847		 Expenditure
£
(1,888,322)
(302,527)
(2,190,849)
(64,813)
(5,107)
(24,250)
(20,000)
(24,700)
(138,870)
(2,329,719)		 Gains/
(Losses)
£
10,420
-
10,420
-
-
-
-
-
-
10,420		 Balance at
31 March
2022
£
-
-
-
-
-
-
-
-
-
-

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General Funds
Property
Revaluation
Restricted
funds
Residential
Support Fund
Garden Project
Training
Boilers
Macerator
Covid support
Ground floor
refurbishment
Total of funds		 Balance at
1 April 2020
£
833,560
302,527
1,136,087
93,703
14,034
1,500
18,250
937
-
-
128,424
1,264,511		 Income
£
924,940
-
924,940
2,000
-
-
6,000
-
53,539
20,000
81,539
1,006,479		 Expenditure
£
(1,200,290)
-
(1,200,290)
-
(8,927)
(1,500)
-
(937)
(53,539)
-
(64,903)
(1,265,193)		 Transfers
in/out
£
30,890
-
30,890
(30,890)
-
-
-
-
-
-
(30,890)
-		 Gains/
(Losses)
£
34,655
-
34,655
-
-
-
-
-
-
-
-
34,655		 Balance at
31 March
2021
£
623,755
302,527
926,282
64,813
5,107
-
24,250
-
-
20,000
114,170
1,040,452

Page 26

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 General funds
Restricted funds		 Balance at 1
April 2021
£
926,282
114,170
1,040,452
Income
£
924,940
81,539
1,006,479		 Income
£
1,254,147
24,700
1,278,847
Expenditure
£
(1,200,290)
(64,903)
(1,265,193)		 Expenditure
£
(2,190,849)
(138,870)
(2,329,719)
Transfers
in/out
£
30,890
(30,890)
-		 Gains/
(Losses)
£
10,420
-
10,420
Gains/
(Losses)
£
34,655
-
34,655		 Balance at
31 March
2022
£
-
-
-
Balance at
31 March
2021
£
926,282
114,170
1,040,452
Summary of funds - prior year
General funds
Restricted funds		 Balance at
1 April 2020
£
1,136,087
128,424
1,264,511

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THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Total funds 2022 £

Total

-

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Restricted
funds
2021
£
26,912
-
87,258
-
114,170		 Unrestricted
funds
2021
£
1,130,558
156,213
4,080
(364,569)
926,282		 Total
funds
2021
£
1,157,470
156,213
91,338
(364,569)
1,040,452

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains on investments
Transfer of net assets to Abbeyfield Wey Valley Society
Decrease in debtors
Increase/(decrease) in creditors
Loan written off in year
Other non cash movements
Net cash used in operating activities		 2022
£
(1,040,452)
31,732
(10,420)
1,197,314
19,557
(71,563)
(393,006)
(41,406)
(308,244)		 2021
£
(224,059)
36,987
(34,655)
-
10,463
24,707
-
-
(186,557)

Page 28

VirtualSignature Transaction Ref. DTHV-CFJN-9J92 07 Mar 2023 10:33:20 GMT (UTC +0) D 2/2 P 31/31

THE ABBEYFIELD READING SOCIETY LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

21. Analysis of cash and cash equivalents

2022 2021
£ £
Cash in hand - 71,741

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Liquid investments		 At 1 April
2021
£
71,741
(293,006)
40
(221,225)		 Cash flows
£
-
(100,000)
-
(100,000)		 Other non-
cash
changes
£
(71,741)
393,006
(40)
321,225

23. Pension commitments

During the year the charity operated a defined contribution scheme for its employees. Total contributions during the year were £17,128 (2021: £18,911). At the year end £nil (2021: £3,412) was outstanding and included in creditors.

24. Operating lease commitments

At 31 March 2022 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2022 2021
£ £
Not later than 1 year - 335

25. Related party transactions

The charity Eventide & Watts Charity was connected by common trustees until 28th March 2022; The Abbeyfield Reading Society Limited ceased to be a corporate trustee on 10 January 2022. During the year the charity was advanced £190,000 from Eventide & Watts Chairyt and repaid £90,000. At the 31 Janaury 2022 the full balance owed to Eventide & Watts Charity of £393,006 was agreed to be written off and shown as a donation. The balance owing at the 31 March 2022 was £nil (2021: £293,006).

26. Controlling party

The ultimate controlling party is the trustees as detailed on page 1.

Page 29