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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 236140

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

MUNICIPAL CHARITIES OF DOVER

MUNICIPAL CHARITIES OF DOVER

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 to 20
Detailed Statement of Financial Activities 21

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are the relief of those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage. The charity aims to do this via the provision of almshouse accommodation.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Planning permission was granted for the building of a garden on the Cowgate Hill site with work to begin in 2023. The garden will called be the Queen Elizabeth Memorial Garden and David Gullick, architect, was commissioned to design the garden.

The refurbishment of the Communal areas in the Battle of Britain Flats was completed, several flats had new bathrooms completed and the programme of replacement of hot water tanks and stop cocks continued.

Mogul House rear wall suffered a partial collapse. After investigation it was not considered to be covered by insurance and the wall was propped with a buttress scaffold which will stay in place for several years while the future of the building is considered.

Permission was granted for a change of use for two of the bedsits in Battle of Britain to be converted in to the charity's offices. This is part of the long term strategy for Mogul House.

A street party was held with the residents to celebrate the Queen's Jubilee which was well attended with food and dancing.

The Trustees will look to support residents who may be struggling with the cost-of-living crisis over the winter months.

The residents were gifted a Christmas lunch in the form of shopping vouchers by the Charity.

The Grigg boot gift was awarded in December.

The Scheme Manager and Deputy Scheme Manager remain the main point of contact between the Charity and the beneficiaries. The Executive Officer has been in contact with residents by phone and at outdoor meetings.

The occupancy levels of the almshouses as at 31 December 2022 were:

Albany House 36 out of 37
Battle of Britain Homes 27 out of 27
Gorely House 22 out of 22

All almshouse residents pay maintenance contributions by monthly standing order. The amount of the residents' contribution is set taking into consideration the local housing allowance paid to benefits claimants, so that almshouse accommodation is available to poor people and therefore meets the requirement for demonstrating public benefit.

During the year, a waiting list for accommodation developed and trustees visited as many applicants as was practicable so that voids could be avoided in the case of almshouses becoming vacant. Two internal transfers took place. Eight new applicants were appointed as almshouse beneficiaries according to the established criteria for eligibility.

Page 1

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Financial position

The accountants provide a monthly statement of income and expenditure and a rolling cashflow forecast and, from time-to-time, financial forecasts for the following year and for a 5-year period. The reports and forecasts are an increasingly useful tool, appreciated by the Trustees and management.

The Charity's unrestricted fund ran at a deficit with the programme of refurbishment and modernisation of the almshouses being partially funded out of permanent endowment with the approval of the Charity Commission.

The Charity's objects mean that periodically major capital projects are undertaken. These can be in the form of new buildings, large extensions or extensive renovations to existing freehold property. In order to fund the maintenance and repair of the almshouse properties from its own resources, the Municipal Charities holds cash, cash investments and an investment property to generate revenue income and capital for planned projects. Opportunities for grants, including grants in kind and loans, from statutory authorities and other funders are investigated in order to ensure that the Charities' reserves are used to best possible advantage.

The guideline formulae figures provided by the Almshouse Association for general maintenance, cyclical maintenance and extraordinary repairs were used to develop planned programmes of works to almshouse buildings, using quinquennial condition surveys. This amount is uplifted by 25% to allow for routine maintenance contracts.

Grigg Christmas Boot Gift : the Trustees will decide year-by-year on the amount of funds to be distributed, topped up from general charitable income.

Investment policy and performance

The investment policy of the Charity is to maintain a substantial investment in the Charities Official Investment Fund.

When managed efficiently the maintenance contributions generated from the charity's almshouse beneficiaries provide a modest surplus over the normal running costs of the almshouses. Good financial planning and budget controls have meant that this surplus is a normal occurrence.

The performance of the Charities Official Investment Fund units has been satisfactory after taking into account current market conditions.

Reserves policy

Income reserves at 31 December 2022 amounted to £2,371,417 (2021 - £2,623,533). In addition to this there is a permanent endowment fund of £7,544,220 (2021 - £7,839,920) of which £1,007,236 (2021 - £1,088,030) is available for expenditure following the approval of a special resolution by the Charity Commission. Sufficient income reserves are held.

FUTURE PLANS

The Trustees will review the Charity's vision, mission statement and strategic plan annually. The Summary Information Return of Aims, Objectives and Achievements will be updated with the intention of seeking assurance of compliance with the Charities Act 2011 and associated secondary legislation. Trustees will continue to add to the rolling strategic plan and will review the internal controls and finance risk assessments to make sure they are fit for purpose. Risk management will continue to be addressed.

There is the intention to continue with the improvement of the almshouses through a phased refurbishment over the next few years. The construction of a garden on Cowgate Hill will also commence in the coming year funded by permanent endowment funds available for expenditure as referred to above.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by Schemes dated 22 October 1984 and 10 February 1997.

Page 2

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational and decision making structure

The Municipal Charities of Dover is a charity registered in England, number 236140, whose principal objects are to support the poor in Dover by means of the provision of almshouse accommodation.

The Board comprises six Trustees who are co-opted and five who are nominated by the local authority. On 16 December 2010 the board of trustees was incorporated under the name of "The Incorporated Trustees of the Municipal Charities of Dover". The Trustees do not draw any remuneration from the Charity but are entitled to be reimbursed for expenses incurred.

As at 31 December 2022 there were four vacancies for Trustees. Several long term trustees resigned from the board, due to age and ill health, during the year. The Clerk also resigned and it was decided not to continue the paid post of Clerk to the Trustees.

A skills audit had previously identified shortages of knowledge and experience of Human Resources, Estate Management and Health and Safety amongst the Trustees and these shortfalls are taken into consideration when co-opting a new trustee. Trustees have also sought knowledge with the appointment of professionals in these fields to advise the board when appropriate. Induction programmes and documents for new trustees are prepared by the Executive Officer. Away days incorporating training and strategic planning are available to trustees annually as a minimum. A Code of Conduct for trustees has been adopted.

The Board of Trustees has overall responsibility for achieving the aims and objectives of the organisation. The Trustees meet quarterly, with the Clerk, the Executive Officer and the Accountants being in attendance, to review the strategy and performance of the charity and to set objectives, operating plans and budgets. Three Trustee committees: Audit and Finance, Human Resources, and Almshouse, exist to provide specific support and guidance. Each committee provides a report to the Board of Trustees at its next quarterly meeting. The frequency of committee meetings and the topics discussed depend on the needs of the organisation.

The Officers, comprising the Clerk, the Executive Officer and the Scheme Manager, are paid employees of the Charity and have four main delegated functions:

1 to implement the policies adopted by the Trustees for the fulfilment of the Charity's objects 2 to advise the Trustees in matters relevant to their expertise

3 to manage the Charity's activities in accordance with the Trustees' wishes

4 to ensure compliance with statutory requirements and best practice

The strategic and operational management of the Charity's business is delegated to the Executive Officer. The operational management of the almshouses and their residents is assumed by the Scheme Manager. The Scheme Manager attends meetings of the Board of Trustees and its committees by invitation.

Relationships with other bodies

The Municipal Charities of Dover has a contract with Kyndi Ltd for the provision of an out-of-hours emergency call response system. The Scheme Manager has contact, as required, with Social Services, Age UK and care agencies.

The Municipal Charities of Dover have, occasionally, held discussions with Dover District Council on new developments. The Executive Officer attends meetings with other almshouse charities across Kent for the benefit of sharing knowledge. The Municipal Charities is a member of the Almshouse Association and the Larger Almshouse group.

The Scheme Manager is invited, from time-to-time, to participate in consultations with health and social services about care of the elderly in the community, in particular those suffering from dementia.

Risk management

The Trustees routinely assess the risks facing the Charity with the assistance of the Officers. These risks are both financial and operational. The operational risks are mitigated by a careful staff selection and monitoring policy, while the constant review of the investment portfolios will protect against the risk that the Charity would not generate enough income to provide accommodation.

Page 3

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 236140

Principal address

2-3 Battle of Britain Chapel Place DOVER Kent CT17 9AR

Trustees

Mrs B M Scott (resigned 24.2.22) Mrs S R Nicholas (resigned 26.5.22) R S Walkden Mrs M C Cox (resigned 9.11.22) Mrs P M Brivio Mrs P M Beresford Mrs M L Gordon J M Smith (resigned 4.10.22) Mrs A Jenner E Biggs J Bird (appointed 9.11.22) M Wood (appointed 25.5.23) M Raven (appointed 23.2.23)

The board of trustees is incorporated under the name of "The Incorporated Trustees of the Municipal Charities of Dover".

Auditors

Batchelor Coop Limited Statutory Auditor The New Barn Mill Lane Eastry SANDWICH Kent CT13 0JW

Bankers

National Westminster Bank plc 25 Market Square DOVER Kent CT16 1ND

Page 4

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS Bankers

CAF Bank Limited 25 Kings Hill Avenue Kings Hill WEST MALLING Kent ME19 4JQ

Solicitors

Excello Law 5 Chancery Lane London WC2A 1LG

Accountants

McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL

Investment Managers

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET

Officers

Officers
Executive officer S Manning, Mogul House, Chapel Place, Dover. CT17 9AS
Clerk M Diomede, 5 Chancery Lane, London, WC2A 1LG (resigned 28 February 2022)
Scheme manager C J Bentley, Mogul House, Chapel Place, Dover. CT17 9AS

CUSTODIAN TRUSTEE

The Municipal Charities of Dover are the custodians of the Grigg Christmas Boot Gift which provides footwear for school age children.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

Page 5

MUNICIPAL CHARITIES OF DOVER

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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.

Approved by order of the board of trustees on 9 October 2023 and signed on its behalf by:

E Biggs - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUNICIPAL CHARITIES OF DOVER

Opinion

We have audited the financial statements of Municipal Charities of Dover (the 'charity') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUNICIPAL CHARITIES OF DOVER

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the Charity's financial statements to material misstatement including how fraud might occur.

We identified important laws and regulations which are significant in the context of the Charity including those covering taxation, theft, social landlords, health and safety and employment legislation and Covid-19 support scheme terms and conditions.

We developed and maintained our understanding of these laws and regulations through mandatory professional education.

We reviewed the Charity's procedures not only for ensuring it remains within the law, but also how it seeks to prevent becoming a victim of internal and external irregularities including fraud.

We believe our audit team, through training and experience, to be competent and capable of identifying and recognising non-compliance and we ensure they have access to professional specialists at all times to assist them in their judgement.

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 Report of the Independent Auditors.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUNICIPAL CHARITIES OF DOVER

Use of our report

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

Batchelor Coop Limited Statutory Auditor The New Barn Mill Lane Eastry SANDWICH Kent CT13 0JW

Date: .............................................

Page 9

MUNICIPAL CHARITIES OF DOVER

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
funds
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
250
Charitable activities
Relating to almshouses
359,333
Investment income
3
12,721
Total
372,304
EXPENDITURE ON
Raising funds
4
1,487
Charitable activities
5
Relating to almshouses
430,649
Miscellaneous charities
1,596
Other
13,230
Total
446,962
Net gains/(losses) on
investments
(181,199)
NET
INCOME/(EXPENDITURE)
(255,857)
Other recognised gains/(losses)
Gains on revaluation of fixed
assets
-
Net movement in funds
(255,857)
RECONCILIATION OF
FUNDS
Total funds brought forward
2,648,474
TOTAL FUNDS CARRIED
FORWARD
2,392,617		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
-
-
-
-
-
83,273
-
-
83,273
(212,427)
(295,700)
-
(295,700)
7,839,920
7,544,220		 2022
Total
funds
£
250
359,333
12,721
372,304
1,487
513,922
1,596
13,230
530,235
(393,626)
(551,557)
-
(551,557)
10,488,394
9,936,837		 2021
Total
funds
£
-
368,717
6,458
375,175
2,343
379,485
733
17,007
399,568
686,753
662,360
833,397
1,495,757
8,992,637
10,488,394

The notes form part of these financial statements

Page 10

MUNICIPAL CHARITIES OF DOVER

BALANCE SHEET 31 DECEMBER 2022

Notes
FIXED ASSETS
Tangible assets
10
Investments
Investments
11
Investment property
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
NET ASSETS
FUNDS
16
Unrestricted funds
Endowment funds
TOTAL FUNDS		 2022
£
4,538,245
4,230,313
170,000
8,938,558
8,788
1,010,953
1,019,741
(21,462)
998,279
9,936,837
9,936,837
2,392,617
7,544,220
9,936,837		 2021
£
4,544,465
4,648,939
145,000
9,338,404
7,596
1,154,822
1,162,418
(12,428)
1,149,990
10,488,394
10,488,394
2,648,474
7,839,920
10,488,394

The financial statements were approved by the Board of Trustees and authorised for issue on 9 October 2023 and were signed on its behalf by:

E Biggs - Trustee

The notes form part of these financial statements

Page 11

MUNICIPAL CHARITIES OF DOVER

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

1. STATUTORY INFORMATION

The Municipal Charities of Dover is an unincorporated charity registered in England. The charity's registered number, principal address and nature of operations can be found in the Report of the Trustees.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements and assessment of going concern

The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

These financial statements combine the accounts of all funds which are governed by the terms of the trust deeds dated 22 October 1984 and 10 February 1997 including all charities using the name of Municipal Charities of Dover. They are all separately constituted and the financial statements have been presented in this form in order to give financial information about the activities which have been carried on in the name of Municipal Charities of Dover.

The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Government grants for the purpose of giving immediate financial support with no related future costs are recognised as income when receivable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

The freehold properties, comprising the almshouses, are included at an existing use value. Adjustments to freehold properties in between valuations are included at cost. Details of the original costs of many of the properties has been lost and due to the length of time the Charity has held the properties the original costs would be meaningless.

Furniture and equipment has been included in the accounts at a brought forward cost based on an insurance valuation established in 1989. From 1993 the additional costs have been capitalised and the balance will be written off over its expected useful life at 15% on a reducing balance basis.

Depreciation is charged to the Fund in which the assets are held.

continued...

Page 12

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

Impaired assets are written down to their recoverable amount being the higher of the net realisable value and the value in use. Impairment losses are treated as additional depreciation and included in the Statement of Financial Activities. The revised carrying amount of the asset is depreciated over its remaining useful economic life.

Investment property

The freehold investment properties are included at an open market value. They are subject to an external professional valuation every five years. In the intervening years internal consideration is given as to whether there have been material movements in the values.

Other investments are included at their mid market value as at the year end. Gains and losses arising on revaluation are recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

The Charity's unrestricted general fund can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Transfers are made from general funds to designated and restricted funds when appropriate and available in order to achieve the objects of the Charity. Transfers are made from the Permanent Endowment "Almshouse" Fund only to appropriate Almshouse replacement funds.

Pensions

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund.

3. INVESTMENT INCOME

Rents receivable
Deposit account interest		 2022
£
2,597
10,124
12,721		 2021
£
6,085
373
6,458

continued...

Page 13

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

4. RAISING FUNDS

Investment management costs

Investment management costs
Rates and insurance
Bank charges and other fees
Repairs (net of contributions)
Managing agent's fees
5.
CHARITABLE ACTIVITIES COSTS
Relating to almshouses
Miscellaneous charities
6.
SUPPORT COSTS		 Direct
Costs
£
513,022
1,596
514,618		 2022
£
515
635
72
265
1,487
Support
costs (see
note 6)
£
900
-
900		 2021
£
400
651
806
486
2,343
Totals
£
513,922
1,596
515,518
SUPPORT COSTS
Governance
costs
£
Other resources expended 13,230
Relating to almshouses 900
14,130

Support costs, included in the above, are as follows:

Support costs, included in the above, are as follows:
2022 2021
Other Relating
resources to Total Total
expended almshouses activities activities
£ £ £ £
Auditors' remuneration 2,370 - 2,370 2,280
Clerk's salary 1,164 - 1,164 5,775
Accountancy 9,696 - 9,696 8,952
Legal and other professional fees - 900 900 -
13,230 900 14,130 17,007

continued...

Page 14

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

8. STAFF COSTS

Remuneration was paid as follows:

2022 2021
£ £
Wages 111,231 111,749
Social security costs 4,467 4,579
Pension costs 3,127 3,382
118,825 119,710
No employee received more than £60,000 in either year.
The average number of employees in the year was:

Management and administration		 2 3
Wardens 2 2
Maintenance and cleaning 1 1

9.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Charitable activities
Relating to almshouses
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Relating to almshouses
Miscellaneous charities
Other
Total
Net gains on investments
NET INCOME
Other recognised gains/(losses)		 Unrestricted
funds
£
368,717
6,458
375,175
2,343
349,666
733
17,007
369,749
295,969
301,395		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
-
-
-
-
29,819
-
-
29,819
390,784
360,965		 Total
funds
£
368,717
6,458
375,175
2,343
379,485
733
17,007
399,568
686,753
662,360

Page 15

continued...

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Gains on revaluation of fixed assets
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
10.
TANGIBLE FIXED ASSETS
COST
At 1 January 2022 and 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Unrestricted
funds
£
-
301,395
2,347,079
2,648,474		 Restricted
funds
£
-
-
-
-
Freehold
property
£
4,503,000
-
-
-
4,503,000
4,503,000		 Endowment
funds
£
833,397
1,194,362
6,645,558
7,839,920
Furniture
and
equipment
£
209,984
168,519
6,220
174,739
35,245
41,465		 Total
funds
£
833,397
1,495,757
8,992,637
10,488,394
Totals
£
4,712,984
168,519
6,220
174,739
4,538,245
4,544,465

The freehold properties were valued by D Hammond MRICS of Smith Woolley in June 2022 on the basis of current use and occupation, taking into account the income stream generated at the time of valuation. The Trustees consider this valuation to be indicative of the fair value of the properties at 31 December 2022 given the planning constraints attached to the site.

11. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2022
Unrealised gains and losses
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 COIF
charity
funds
£
4,648,939
(418,626)
4,230,313
4,230,313
4,648,939

There were no investment assets outside the UK.

Page 16

continued...

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

11. FIXED ASSET INVESTMENTS - continued

The majority of the investment portfolio is held in Charities Official Investment Fund accumulation units with the remainder being Charities Official Investment Fund fixed interest income units.

12. INVESTMENT PROPERTY

INVESTMENT PROPERTY
FAIR VALUE
At 1 January 2022
Revaluation
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 £
145,000
25,000
170,000
170,000
145,000

The Trustees consideration of the fair value of the investment properties at 31 December 2022 is based on surveyors reports dated February 2015 and April 2023.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Rents due
Due from residents
Other debtors
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Owed to suppliers
Other creditors and accruals
Resident contributions received in advance		 2022
£
-
3,544
5,244
8,788
2022
£
12,988
8,162
312
21,462		 2021
£
477
6,629
490
7,596
2021
£
5,207
7,221
-
12,428

continued...

Page 17

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
funds
£
Fixed assets
21,200
Investments
1,829,222
Current assets
563,657
Current liabilities
(21,462)
2,392,617
16.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Extraordinary Repair Fund
Grigg shoe
Endowment funds
Almshouses fund (permanent)
Almshouses fund (available for expenditure
per resolution)
TOTAL FUNDS		 Restricted
funds
£
-
-
-
-
-
At 1.1.22
£
2,245,311
394,965
8,198
2,648,474
6,751,890
1,088,030
7,839,920
10,488,394		 Endowment
funds
£
4,517,045
2,571,091
456,084
-
7,544,220
Net
movement
in funds
£
(219,111)
(35,541)
(1,205)
(255,857)
(214,906)
(80,794)
(295,700)
(551,557)		 2022
Total
funds
£
4,538,245
4,400,313
1,019,741
(21,462)
9,936,837
Transfers
between
funds
£
(178)
-
178
-
-
-
-
-		 2021
Total
funds
£
4,544,465
4,793,939
1,162,418
(12,428)
10,488,394
At
31.12.22
£
2,026,022
359,424
7,171
2,392,617
6,536,984
1,007,236
7,544,220
9,936,837

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Extraordinary Repair Fund
Grigg shoe
Endowment funds
Almshouses fund (permanent)
Almshouses fund (available for expenditure
per resolution)
TOTAL FUNDS		 Incoming
resources
£
372,096
-
208
372,304
-
-
-
372,304		 Resources
expended
£
(446,576)
-
(386)
(446,962)
(2,479)
(80,794)
(83,273)
(530,235)		 Gains and
Movement
losses
in funds
£
£
(144,631)
(219,111)
(35,541)
(35,541)
(1,027)
(1,205)
(181,199)
(255,857)
(212,427)
(214,906)
-
(80,794)
(212,427)
(295,700)
(393,626)
(551,557)

continued...

Page 18

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.1.21
in funds
£
£
Unrestricted funds
General fund
2,001,837
243,972
Extraordinary Repair Fund
336,467
58,498
Grigg shoe
8,775
(1,075)
2,347,079
301,395
Endowment funds
Almshouses fund (permanent)
5,530,626
1,221,264
Almshouses fund (available for expenditure
per resolution)
1,114,932
(26,902)
6,645,558
1,194,362
TOTAL FUNDS
8,992,637
1,495,757
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
374,940
(369,016)
Extraordinary Repair Fund
-
-
Grigg shoe
235
(733)
375,175
(369,749)
Endowment funds
Almshouses fund (permanent)
-
(2,917)
Almshouses fund (available for expenditure
per resolution)
-
(26,902)
-
(29,819)
TOTAL FUNDS
375,175
(399,568)		 Transfers
between
funds
£
(498)
-
498
-
-
-
-
-
Gains and
losses
£
238,048
58,498
(577)
295,969
1,224,181
-
1,224,181
1,520,150		 At
31.12.21
£
2,245,311
394,965
8,198
2,648,474
6,751,890
1,088,030
7,839,920
10,488,394
Movement
in funds
£
243,972
58,498
(1,075)
301,395
1,221,264
(26,902)
1,194,362
1,495,757

Unrestricted funds comprise those funds that the trustees are free to use in accordance with the Charity's objects.

The Extraordinary Repair Fund represents funds set aside by the trustees for the purpose of extending the provision of and modernising the existing provision of almshouses.

The Grigg Shoe Fund provides free footwear to selected primary schools in the Dover area for children in need. Any deficit of income over expenditure in the year is funded by a transfer from the general fund.

continued...

Page 19

MUNICIPAL CHARITIES OF DOVER

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

16. MOVEMENT IN FUNDS - continued

The Permanent Endowment Fund relates to the original legacies given to the Charity as revalued and are not available for distribution by the trustees.This was set up to protect income from original bequests and allow expansion of the provision of almshouse accommodation to more people rather than subsidising the rents of a fortunate minority of existing almspeople. During a prior year the Trustees passed a resolution, which was subsequently approved by the Charity Commission, to spend up to the sum of £1,965,000 of the permanent endowment towards and in connection with any remedial works or works of improvement to the Charity's existing almshouses or the construction of new almshouses.

17. OTHER FINANCIAL COMMITMENTS

At the year end the charity had financial commitments of £51,000 which had been contracted for but which are not provided for in these financial statements.

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

19. PENSION CONTRIBUTIONS

The pension cost in the year amounted to £5,992 (2021 - £8,190) inclusive of employee contributions. Five (2021 - five) members of staff are accruing benefits under this scheme.

Page 20

MUNICIPAL CHARITIES OF DOVER

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

INCOME AND ENDOWMENTS
Donations and legacies
Grants
Investment income
Rents receivable
Deposit account interest
Charitable activities
Residents contributions
Total incoming resources
EXPENDITURE
Investment management costs
Rates and insurance
Bank charges and other fees
Repairs (net of contributions)
Managing agent's fees
Charitable activities
Salaries, etc
Repairs and maintenance
Rates and insurance
Light and heat
Office costs
TV rentals, licenses, etc
Payments to beneficiaries
Training and subscriptions
Bad debts
Depreciation of tangible fixed assets
Support costs
Governance costs
Auditors' remuneration
Clerk's salary
Accountancy
Legal and other professional fees
Total resources expended
Net expenditure		 2022
£
250
2,597
10,124
12,721
359,333
372,304
515
635
72
265
1,487
127,125
321,993
23,463
12,310
17,831
174
4,276
1,226
-
6,220
514,618
2,370
1,164
9,696
900
14,130
530,235
(157,931)		 2021
£
-
6,085
373
6,458
368,717
375,175
400
651
806
486
2,343
122,580
188,007
22,245
14,796
18,237
200
4,898
816
1,121
7,318
380,218
2,280
5,775
8,952
-
17,007
399,568
(24,393)

This page does not form part of the statutory financial statements

Page 21