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2021-12-31-accounts

Charity Registration No. 233695

LASLETT'S (ALMSHOUSE) CHARITY

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

LASLETT'S (ALMSHOUSE) CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr C R Anstey Mrs L C Baxter (Appointed 1 January 2021) Mr T J Bridges Mr D B Dale Mr P W Hughes Mrs G T Newman Mr J V Panter Mrs L A Preece Mrs N J Rogers (Appointed 1 April 2021) Mr M J Tarver Mrs K M Vincent Mrs A E Lodge (Resigned 31 March 2021) Mrs M Jones (Resigned 31 December 2021) Chairman Mr P W Hughes (until 25 January 2022) Mrs L C Baxter (from 25 January 2022) Finance & Mr C R Anstey Investment Committee Mrs L C Baxter Mr D B Dale Mr P W Hughes Mr J V Panter Mrs L A Preece Mr M J Tarver Almshouse Committee Mrs L C Baxter (Appointed 1 January 2021) Mr P W Hughes Mrs M Jones (Resigned 31 December 2021) Mrs A E Lodge (Resigned 31 March 2021) Mrs G T Newman Mrs N J Rogers (Appointed 1 April 2021) Mrs K M Vincent

Each Committee meeting is attended by the Clerk and/or the Agent as appropriate

Clerk to the Trustees Mr S P Inman Kateryn Heywood House Berkeley Court The Foregate Worcester WR1 3QG Agent to the Trustees Mr A L Robinson MRICS The Estate Office Madresfield Road Malvern WR13 5AH Charity number 233695

LASLETT'S (ALMSHOUSE) CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

Registered office Kateryn Heywood House
Berkeley Court
The Foregate
Worcester
WR1 3QG
Independent Examiner Sarah Morley ACA
Kendall Wadley LLP
Chartered Accountants
Merevale House
27 Sansome Walk
Worcester
WR1 1NU
Bankers HSBC Plc
6 Broad Street
Worcester
WR1 3PL
Investment Advisors Quilter Cheviot Investment Management
Senator House
85 Queen Victoria Street
London
EC4V 4AB

By a Resolution passed at a duly constituted meeting of the Trustees of Laslett's (Almshouse) Charity on the 30th day of October 1962 there was conferred upon any three or more of the Trustees the power to execute Deeds or instruments in the names and on behalf of the Trustees in accordance with the provisions of Section 34 of the Charities Act 1960.

LASLETT'S (ALMSHOUSE) CHARITY

CONTENTS

Page
Trustees' report 1 - 7
Statement of Trustees' responsibilities 8
Independent examiner's report 9
Statement of financial activities 10 - 11
Balance sheet 12
Statement of cash flows 13
Notes to the accounts 14 - 24

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their report and accounts for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 of the accounts and comply with the Charity's Trust Deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

Objective

The principal object of the Charity is to provide and maintain the almshouses in Union Street, Worcester for aged poor people in the City of Worcester.

The Trustees' aim is to administer the almshouses in the most efficient and effective way by maintaining the buildings and accommodation in good and substantial repair thus ensuring a full level of occupancy throughout the year and thereby obtain a steady level of income from the weekly maintenance charge levied on the residents.

Public benefit

The Trustees confirm that they have had regard to the Charity Commission's guidance on public benefit. The activities set out are consistent with achieving the object of the Charity for the benefit of the public. Specifically the programme of refurbishment, the discounted rents and the provision of the good quality accommodation are consistent with the Charity's aims and objects.

Activities

The main activities carried out by the Charity relate to the management of the flats within the almshouse complex together with the chapel, the community room and the gardens. In ensuring the residents have up-to-date, clean and safe accommodation and environment, there is regular contact with them primarily via the Warden who attends the almshouses most weekdays but also by the Agent and Trustees.

Achievements and performance

Overall the rate of occupation of the 16 almshouses for the year has exceeded 90%. During the course of the year one of the residents sadly died and her place was taken by an individual who had been on the waiting list for several years. In accordance with our standard practice the opportunity was taken to redecorate and carry out minor repairs to the flat.

The former Chaplain's house situated within the almshouse complex which had previously been occupied by the Chaplain remains let by way of a shorthold letting agreement to a tenant who would otherwise have qualified for almshouse accommodation.

During 2021 the separate modern property at 10 Union Street continues to be let by way of a shorthold letting agreement at a market rent to private tenants.

The Warden keeps in close weekly contact with the Agent and also a nominated Trustee who in turn reports to the Committee/Board. Her reports have highlighted how despite all the restrictions imposed by the Covid pandemic which meant a cessation of indoor social events, the residents have generally form a friendly community of individuals. In non-pandemic times, or as the easing of restrictions permits, most are willing to participate in social events including occasional garden parties and other celebrations arranged by the residents themselves and with her help.

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

In terms of refurbishment of the flats, all major work was completed in 2015. There is a general feeling that the flats are now of a high standard and that the residents are pleased overall with the facilities including the standard of decoration. There is a programme of planned general maintenance in place. Internal redecoration is carried out to flats as and when they become vacant. The planned and phased programme to upgrade the central heating boilers in all of the flats is now well under way.

The gardens situated at the front of the property continue to be extremely colourful with a wide range and variety of shrubs and flowers and are maintained to a high standard through the year. Some of the residents like to participate and assist the gardener in his work under his supervision which is encouraged.

The administration of rental income has been smooth during the last year with there being few void periods. There are no current rent arrears and liaison with the Council as to the provision of housing benefits to those who qualify has been good.

The Trustees will continue to support the residents of the almshouses to the best of their ability by improving the properties occupied and the services offered in accordance with the recommendations made by the Agent.

In addition to the almshouses the Charity has traditionally held some investments from which income can be derived to help to swell the funds available when required. The Trustees regularly consult with their investment advisers and pay due regard to any recommendations and investments made.

Financial review

During 2021 the income for the Charity was £131,237 and the expenditure was £123,594, being an immediate surplus of £7,643. With gains in the value of investments of £40,960 and a revaluation of tangible fixed assets of £85,000, the overall value of the charity increased by £133,603 from £2,830,801 to £2,964,404.

The majority of the income (£126,374) was derived from the charges levied on the residents for their accommodation and was received regularly and consistently.

Following their appointment in 2019 Quilter Cheviot drafted a fresh statement of investment policy which was

approved by the Trustees. The key features of this are:

a) Investment objective - Longer-term assets (reserves and endowment) will be invested with the aim of at least maintaining the value or purchasing power in real terms (i.e. against inflation).

b) Total return target - The Total return target for the investment portfolios has been set at inflation (CPI) plus 3.5% p.a. net of fees. This implies a nominal target of 5.5% p.a. assuming the Bank of England's official 2% target for CPI inflation.

c) Income requirement - Income target has been set at a minimum of 3% per annum.

d) Time horizon - The time horizon for the investment portfolio is considered to be long term (i.e. more than five years).

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves policy

The balance sheet shows that the overall value of the charity as at 31st December 2021 as compared with the position as at 31st December 2020 was as follows:

Description 2020 Gain/(Loss) 2021
Capital (Restricted) Fund
Endowed Fund £2,731,152 £125,960 £2,857,112
Income (Unrestricted) Funds
Designated (Refurbishment) Fund £88,000 £6,791 £94,791
General Fund £11,649 £852
£12,501
Total £2,830,801 £133,603 £2,964,404

The unrestricted funds which may be counted as reserves have increased by £852.

The Trustees have taken the decision that it should be the ultimate aim to have a sum available for refurbishments of £100,000 that being the most likely call on any reserve fund. Consequently to make greater provision for that "sinking" fund there was a net transfer of funds from general reserves to the refurbishment reserve which now stands at £94,791. The Trustees have aimed to retain a level of unrestricted reserves equivalent to the running costs of the Charity for at least six months and if possible for one year. The unrestricted reserves (including that designated for refurbishment) now amount to £107,292 which represents close to 12 months of last year's expenditure of £123,594.

The Trustees are aware of the requirements to distribute any surplus income under the terms of the Trust but believe this should be balanced with the need to have adequate reserves to maintain almshouses provision which is its primary objective. The Trustees also take the view that given the nature of the housing accommodation and the level of charges which can be levied (which is linked to the provision of housing benefit) it is not proper to create a surplus over and above what is needed to maintain the almshouses in good order with associated support and administrative costs.

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Investment powers

The Trustees will invest the funds in accordance with the Trustee Act 2000. Within the Act the Trustees:-

Trustees additionally have a duty to review their investments at regular intervals. The Trustees reviewed their policy during 2019 - see above under Financial Review. The Trustees may change any part of the policy at any time having taken the necessary professional advice.

The Investment Manager must be an authorised person who is entitled to carry out investment business under the provisions of the Financial Services Act 1986.

The Trustees have delegated the powers of investment management to Quilter Cheviot.

Performance

The Charity’s financial investments are held primarily with Quilter Cheviot in their bespoke Global Income & Growth Fund for Charities and, to a much smaller extent with the CCLA.

The overall value of investments rose during the year by £40,960 from £294,837 to £335,797 being an increase of 13.89%. This reflected net additions to the portfolio taking account of disposals as well as gains in the value of those investments held throughout the year.

The income (including interest) derived from investments was increased during 2021 as compared with the previous year from £2,452 to £3,933. This amounted to an income return of 2.9%, close to the target of 3%. In addition the capital return produced by Quilter Cheviot for the year was 9.9% which was well in excess of the target agreed.

Cash Deposits

Cash deposits are placed with approved banks with suitable credit ratings. Cash deposits may be also retained by its investment advisors as part of the investment portfolio.

Risk management

The Trustees have considered the major risks to which they consider the Charity has been exposed and concluded that these lie in the inherent risks of maintaining the fabric of an historic property in a city centre location and the welfare of the elderly residents and investing in the Stock Market. The Trustees are well aware of the potential volatility in the Stock Market generally but view their investments as being of a long term nature which should iron out sudden changes in their value. Notwithstanding that, they will take whatever steps they think necessary after taking professional advice to mitigate and reduce any risks.

Risk identification and management are specifically discussed and minuted at all Board meetings.

The Trustees confirm that no serious incident has taken place which they should have reported to the Charity Commission but have not.

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Plans for the future

The Trustees have no major plans to alter the level of almshouse provision. It is the intention to continue to utilise the almshouses as directed by the Trust Deeds upon which the Charity was formed. In practice this will entail maintaining the almshouse complex in good and substantial repair and condition and having plans in place for such to be carried out on a periodic basis. A key item of planned expenditure based on a rolling programme which commenced in 2021, that being the replacement of the gas boilers in all of the flats with more modern and efficient ones. This process remains on schedule. By operating in this way, the finances remain sound and the element of public benefit is fulfilled.

Structure, governance and management

The Charity was established by William Laslett (1799-1884), a Worcester member of parliament, mayor, civic dignitary and philanthropist. It operates under the terms of two Trust Deeds dated 19 September 1868 and 9 April 1875. Its registered Charity number is 233695.

The Charity owns and manages almshouses built in 1912 in Union Street, Worcester together with one more modern end terraced house situated opposite the almshouses.

The Trustees who served during the year and up to the date of signature of the financial statements were:

Mr C R Anstey Mrs L C Baxter (Appointed 1 January 2021) Mr T J Bridges Mr D B Dale Mr P W Hughes Mrs M Jones (Resigned 31 December 2021) Mrs A E Lodge (Resigned 31 March 2021) Mrs G T Newman Mr J V Panter Mrs L A Preece Mrs N J Rogers (Appointed 1 April 2021) Mr M J Tarver Mrs K M Vincent

The Trustees of this Charity also serve as Trustees of Laslett's (Hinton) Charity and have been appointed by a long series of Deeds of Appointment since 1868. There is no provision as to the length of service or requirement for re-appointment after a specified period of time.

All Trustees give their time freely and no remuneration was paid to any of them during the year. Trustees are required to disclose all relevant interests and to register them with the Clerk. The Trustees are also required to give details of any interest that may relate to an agenda item in which event if there is a conflict or perceived conflict of interest, they will withdraw from the meeting.

Appointment of Trustees

The Trustees have a wide range of professional and commercial experience including agriculture, charitable bodies, church architecture, estate management, social work, care for the elderly, and accountancy. The Charity seeks to appoint Trustees who have skills and expertise which are relevant to the areas in which the Charity operates.

At the time of appointment, new Trustees are provided with an induction pack within which are notes setting out the history and background of the charity including its original objectives, current policies and copies of Board and Committee minutes for the preceding twelve months or longer period if necessary. Prior to formal appointment, potential new Trustees who have been interviewed and accepted the role in principle are provided with the opportunity to have some one-to-one discussion with the Clerk and Agent and with the Chairman. In addition they are invited in a guest and confidential capacity to the Board meeting prior to the date of their intended appointment to gain first-hand experience of the Board and its workings.

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Organisational Structure

The Board of Trustees meets on a regular quarterly basis. Usually the venue for those meetings is the boardroom in Laslett’s Almshouses, Union Street, Worcester. However, during the period of the pandemic, as from March 2020, given the restricted space at Laslett's all meetings have been held remotely via Zoom and hosted by the Clerk or held in larger premises close by. With the input of the Agent, Clerk and Investment Advisor by way of written reports and/or attendance at the meetings, they initiate, review and adopt policies which further the objects of the Charity as set out in the Trust Deed and ensure compliance with current legislation and recommended good practice.

The Board of Trustees are also responsible for setting the remuneration levels of staff appointed by the Charity.

To enable the more expeditious conduct of business the Trustees have created two Committees which may examine relevant issues in more detail and which may make recommendations to the Trustee Board to make a formal decision.

The Finance and Investment Committee meets with the Charity's Investment Managers, Quilter Cheviot periodically to review the Charity's stock exchange investments and to consider their recommendations. The Committee also considers and approves the six monthly and year-end management accounts drawn up by the Agent and sets the budget for the forthcoming year.

The Almshouse Committee meets on an ad hoc basis to give preliminary and detailed consideration to any new policy or initiative required for the overall management of the almshouses prior to discussion and decision at the main Trustee Board.

The Agent to the Charity is Mr Adrian Robinson of ARC Chartered Surveyors Ltd, The Estate Office, Madresfield, Malvern, WR13 5AH. The duties and responsibilities of the Agent include the following:

The Clerk to the Charity is Mr Stephen Inman whose duties and responsibilities include the following:

Related charities

The Charity has a close relationship with the Laslett's (Hinton) Charity and its professional advisers, as well as its Trustees, being the same. Both Charities have a common benefactor and founding philosophy.

The main object of Laslett’s (Hinton) Charity is to manage its land and agricultural holdings together with associated residential properties situated at Hinton on the Green near Evesham, Worcestershire and to create a return of income which can be applied for charitable purposes including when necessary the support of Laslett’s (Almshouse) Charity.

LASLETT'S (ALMSHOUSE) CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees' report was approved by the Board of Trustees.

Mrs L C Baxter

Chairman Dated: 26 April 2022

LASLETT'S (ALMSHOUSE) CHARITY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees 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).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them 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. They are 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.

LASLETT'S (ALMSHOUSE) CHARITY

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF LASLETT'S (ALMSHOUSE) CHARITY

I report to the Trustees on my examination of the financial statements of Laslett's (Almshouse) Charity (the Charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the Trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard 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 now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Sarah Morley ACA

for and on behalf of Kendall Wadley LLP Merevale House 27 Sansome Walk Worcester WR! 1NU

Dated: 26 April 2022

LASLETT'S (ALMSHOUSE) CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Current financial year
Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Charitable activities
3
126,374
-
-
Investments
4
3,933
-
-
Other income
5
930
-
-
Total income
131,237
-
-
Expenditure on:
Charitable activities
6
98,886
24,708
-
Net incoming resources before investment
movements
32,351
(24,708)
-
Net gains/(losses) on investments
10
-
-
40,960
Net incoming resources before
transfers
32,351
(24,708)
40,960
Gross transfers between funds
(31,499)
31,499
-
Net incoming resources
852
6,791
40,960
Other recognised gains and losses
Revaluation of tangible fixed assets
-
-
85,000
Net movement in funds
852
6,791
125,960
Fund balances at 1 January 2021
11,649
88,000
2,731,152
Fund balances at 31 December
2021
12,501
94,791
2,857,112		 Total
2021
£
126,374
3,933
930
131,237
123,594
7,643
40,960
48,603
-
48,603
85,000
133,603
2,830,801
2,964,404		 Total
2020
£
123,521
2,452
1,127
127,100
100,003
27,097
24,072
51,169
-
51,169
10,000
61,169
2,769,632
2,830,801

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

LASLETT'S (ALMSHOUSE) CHARITY

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Prior financial year

Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Charitable activities
3
123,521
-
-
Investments
4
2,452
-
-
Other income
5
1,127
-
-
Total income
127,100
-
-
Expenditure on:
Charitable activities
6
100,003
-
-
Net incoming resources before investment movements
27,097
-
-
Net gains/(losses) on investments
10
-
-
24,072
Net incoming resources before transfers
27,097
-
24,072
Gross transfers between funds
(31,500)
31,500
-
Net incoming resources
(4,403)
31,500
24,072
Other recognised gains and losses
Revaluation of tangible fixed assets
-
-
10,000
Net movement in funds
(4,403)
31,500
34,072
Fund balances at 1 January 2020
16,052
56,500
2,697,080
Fund balances at 31 December 2020
11,649
88,000
2,731,152		 Total
2020
£
123,521
2,452
1,127
127,100
100,003
27,097
24,072
51,169
-
51,169
10,000
61,169
2,769,632
2,830,801

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

LASLETT'S (ALMSHOUSE) CHARITY

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds
General endowment funds
16
Income funds
Unrestricted funds
Designated funds
17
General unrestricted funds		 2021
£
£
2,505,000
335,797
2,840,797
9,721
125,346
135,067
(11,460)
123,607
2,964,404
2,857,112
2,857,112
94,791
12,501
107,292
2,964,404		 2020
£
£
2,420,000
294,837
2,714,837
7,476
119,938
127,414
(11,450)
115,964
2,830,801
2,721,152
2,731,152
88,000
11,649
99,649
2,830,801		 2020
£
£
2,420,000
294,837
2,714,837
7,476
119,938
127,414
(11,450)
115,964
2,830,801
2,721,152
2,731,152
88,000
11,649
99,649
2,830,801
2,714,837
115,964
2,830,801
2,731,152
99,649
2,830,801

The financial statements were approved by the Trustees on 26 April 2022

Mr P W Hughes Trustee

LASLETT'S (ALMSHOUSE) CHARITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
21
Investing activities
Purchase of investments
Proceeds on disposal of investments
Interest received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
-
-
3,933		 2020
£
£
1,475
(125,234)
104,246
2,452
3,933
-
5,408
119,938
125,346		 £
20,993
(18,536)
-
2,457
117,481
119,938

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Laslett's (Almshouse) Charity is a charity which was established by William Laslett, a Worcester mayor, civic dignitary and philanthropist. It operates under the terms of two Trust Deeds dated 19 September 1868 and 9 April 1875. Its registered address is Kateryn Heywood House, Berkeley Court, The Foregate, Worcester, WR1 3QG.

1.1 Accounting convention

The accounts have been prepared in accordance with the Charity's trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes and are maintained at a level sufficient to enable the Charity to operate efficiently and without risk.

Endowed funds represent those assets which must be held permanently by the Charity, principally property and investments.

1.4 Incoming resources

Income from investments and property is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Resources expended

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 are allocated on the portion of the asset’s use.

Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Governance costs are the costs associated with the general running of the Charity.

1.6 Tangible fixed assets

The trustees have adopted a policy of revaluation with regards the land and buildings and this is based on a valuation supplied by ARC Chartered Surveyors Limited at 31 December 2018. This valuation is a full valuation reviewed as necessary.

The Statement of Recommended Practice (FRS 102) requires that a provision be made for depreciation of tangible fixed assets having a finite use of life. However, the Trustees are of the opinion that the residual value at the end of the estimated useful life of the property is not likely materially to differ from its cost, or re-valued amount (reviewed annually). Therefore, any element of depreciation is considered to be immaterial and no provision is made, movements in valuation are taken to the Statement of Financial Activities as determined.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.10 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Charitable activities

Charitable activities
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Received from residents 126,374 123,521

4 Investments

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Income from listed investments 3,925 2,399
Interest receivable 8 53
3,933 2,452

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Other income

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Other income 930 1,127
6 Charitable activities
2021 2020
£ £
Property expenditure
Pension costs 188 182
Rates 3,965 3,650
Insurance 7,848 7,482
Property expenditure 43,545 19,168
Chaplain's salary 1,160 1,540
Warden 12,500 12,275
Gardener 1,826 1,475
Electricity 7,800 11,084
Gas 6,759 7,567
Telephone 259 258
Call aid rental 3,676 3,598
Sundry 592 305
Cleaning 4,025 2,807
94,143 71,391
Share of support costs (see note 7) 28,901 28,062
Share of governance costs (see note 7) 550 550
123,594 100,003
Analysis by fund
Unrestricted funds - general 98,886
Unrestricted funds - designated 24,708
123,594
For the year ended 31 December 2020
Unrestricted funds - general 100,003
100,003

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Support costs

Support
costs
Governance
costs
£
£
Agent's management
fees
17,429
-
Clerk's fees
4,508
-
Charity office expenses
4,058
-
Subscriptions
276
-
Accountancy
1,550
-
Accountancy - agents
1,080
-
Independent examiners
fees
-
550
28,901
550
Analysed between
Charitable activities
28,901
550		 2021
£
17,429
4,508
4,058
276
1,550
1,080
550
29,451
29,451		 2020 Basis of allocation
£
16,301
To principal charitable
activity
4,228
" "
4,646
" "
240
" "
1,550
" "
1,097
" "
550
Governance
28,612
28,612

Within Clerks fees as shown above are staff costs of £4,508 (2020 - £4,228).

Governance costs include payment to the independent examiners of £550 (2020 - £550) for examination fees.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or expenses during the year.

During the year the Charity took out insurance for the Trustees' and individual liability, employment practices liability and professional and legal liability in each instance to a limit of £1 million.

9 Employees

Number of employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Clerk and warden 2 2
Employment costs 2021 2020
£ £
Wages and salaries 17,008 16,503
Other pension costs 188 182

There were no employees whose annual remuneration was £60,000 or more.

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Net (losses)/gains on investments

**Endowment ** Endowment
funds funds
2021 2020
£ £
Revaluation of investments 40,960 24,053
(Loss)/gain on sale of investments - 19
40,960 24,072

11 Tangible fixed assets

Tangible fixed assets
Freehold land and buildings
£
Cost or valuation
At 1 January 2021 2,420,000
Revaluation 85,000
At 31 December 2021 2,505,000
Carrying amount
At 31 December 2021 2,505,000
At 31 December 2020 2,420,000

Land and buildings with a carrying amount of £2,505,000 were revalued at 31 December 2021 by ARC Chartered Surveyors, independent valuers, on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The property consists of 16 flats, a Chaplain's House, Board Room and Chapel, all situated at Laslett's Almshouses, Union Street, Worcester and 10 Union Street, Worcester.

12 Fixed asset investments

Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 January 2021 294,837
Valuation changes 40,960
At 31 December 2021 335,797
Carrying amount
At 31 December 2021 335,797
At 31 December 2020 294,837

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Debtors: amounts falling due within one year
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
15
Other creditors
Accruals
15
Deferred income
Arising from Rents received in advance		 2021
£
6,670
3,051
9,721
2021
£
-
2,611
3,210
5,639
11,460
2021
£
2,611		 2020
£
4,606
2,870
7,476
2020
£
175
2,435
3,918
4,922
11,450
2020
£
2,435

All rents in advance are in respect of the following accounting period and are fully released.

16 Endowment funds

The endowment funds represent those assets which must be held permanently by the Charity, principally investments and property.

Balance at
1 January 2020
£
Permanent endowments
Endowment Fund
2,697,080
2,697,080		 Gains and
losses
Balance at
1 January 2021
£
£
34,072
2,731,152
34,072
2,731,152		 Gains and
losses
Balance at
31 December
2021
£
£
125,960
2,857,112
125,960
2,857,112		 Gains and
losses
Balance at
31 December
2021
£
£
125,960
2,857,112
125,960
2,857,112
2,857,112

Income arising on the endowment fund can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the investment form part of the fund.

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for essential future repairs to properties.

Balance at Transfers Balance at Resources Transfers Balance at
1 January 2020 1 January 2021 expended 31 December
2021
£ £ £ £ £ £
Refurbishment fund 56,500 31,500 88,000 (24,708) 31,499 94,791
56,500 31,500 88,000 (24,708) 31,499 94,791

The purpose of the Refurbishment fund is to finance essential expenditure on property owned by the Charity.

Analysis of net assets between funds Unrestricted
Designated
Endowment
Total
Unrestricted
Designated
Endowment
Total		 Funds
funds
Funds
Funds
funds
Funds		 2021
2021
2021
2021
2020
2020
2020
2020		 £
£
£
£
£
£
£
£		 Fund balances at 31 December 2021 are represented by: Tangible assets
-
-
2,505,000
2,505,000
-
-
2,420,000
2,420,000		 Investments
-
-
335,797
335,797
-
-
294,837
294,837		 Current assets/(liabilities)
12,501
94,791
16,315
123,607
11,649
88,000
16,315
115,964		 12,501
94,791
2,857,112
2,964,404
11,649
88,000
2,731,152
2,830,801		 Included in endowment funds are unrealised gains on investments for the year of £40,960 (2020 - £24,053) and unrealised gains on tangible fixed assets for the year of £85,000 (2020 - £10,000). £85,000 (2020 - £10,000).
18

LASLETT'S (ALMSHOUSE) CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Related party transactions

Transactions with related parties

During the year the Charity entered into the following transactions with related parties:

£4,515 (2020 - £4,228) of Clerks fees were recharged to Laslett's (Hinton) Charity, which has 11 trustees in common with the Charity. A balance of £nil (2020 - £nil) was owed to the Charity at the year end.

20 Analysis of changes in net funds

The Charity had no debt during the year.

21
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in profit or loss
Fair value gains and losses on tangible fixed assets
Gain on disposal of investments
Fair value gains and losses on investments
Movements in working capital:
(Increase) in debtors
(Decrease) in creditors
Increase/(decrease) in deferred income
Cash generated from operations		 2021
£
133,603
(3,933)
(85,000)
-
(40,960)
(2,245)
(166)
176
1,475		 2020
£
61,169
(2,452)
(10,000)
(19)
(24,053)
(933)
(2,658)
(61)
20,993