REGISTERED CHARITY NUMBER: 236699
Croston United Charities
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 30 June 2021
Croston United Charities
Contents of the Financial Statements
for the year ended 30 June 2021
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | ||
| Notes to the Financial Statements | 8 | to | 13 |
Croston United Charities
Reference and Administrative Details
for the year ended 30 June 2021
TRUSTEES GM Kearton JH Brady (resigned 31/3/2021) K Almond AC Marston S Hazlewood (resigned 15/10/2020) MJ Driver M Woods BRP Paillusson SJ Myers JR Taylor (appointed 15/10/2020) HM Lloyd (appointed 15/10/2020) RJ Foulger (appointed 20/7/2021) PRINCIPAL ADDRESS 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA REGISTERED CHARITY 236699 NUMBER INDEPENDENT EXAMINER McMillan & Co LLP Chartered Accountants 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
Page 1
Croston United Charities
Report of the Trustees
for the year ended 30 June 2021
The trustees present their report with the financial statements of the charity for the year ended 30 June 2021. 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 objects are:
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The provision of housing accommodation for beneficiaries;
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Such charitable purposes for the benefit of the residents as the trustees decide; and
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The relief of persons resident in the area of benefit who are in need, hardship or distress.
The area of benefit is the ancient parish of Croston (Bispham, Bretherton, Croston, Hesketh-with-Beconsall, Mawdesley, Rufford, Tarleton and Ulnes Walton) with a preference for the ancient township of Croston.
To further the objects the Charity has thirteen almshouses, nine of which each have an internal floor area of between 31.2 and 35.3 square metres compared with the minimum recommended for a single person of 34.0 square metres. The Charity has four recently modernised almshouses two with two bedrooms and two with double bedrooms. The almshouses are maintained in good condition for the use of the beneficiaries.
The weekly maintenance contributions received from the almshouse residents are used to cover the cost of insurance and general maintenance as well as to provide funds for periodic upgrades, improvements and refurbishments.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The Charity follows The Almshouse Association's "Standards of Almshouse Management" and has issued a Resident's Handbook, based on their example.
There is a Maintenance Plan including statutory inspections.
In September 2017 the Architects completed a Quinquennial Inspection report on the almshouses including compliance with the Decent Homes Standard and its Housing Health Safety Rating System as well as the Disability Discrimination Act etc. The cost of implementing the recommendations of the report was estimated to be £63,856 over the following five years and work continues to implement this. The next Quinquennial Inspection is due in September 2022.
The trustees are implementing the recommendation from a report from health and safety consultants on the grounds of the almshouses.
There have been a number of initiatives on the second and third objects stated above and this will continue with a modest budget.
During the year £40,000 was invested in M&G Investments Income units, half being Charity Multi Asset Fund and half in Charibond Charities Fixed Interest Fund.
Investment performance
Investment Managers advise on the listed investments.
FINANCIAL REVIEW
Investment policy and Objectives
The investments, including the Emergency Repair Fund, are held with the total return (combined income and capital) being of prime importance.
Page 2
Croston United Charities
Report of the Trustees
for the year ended 30 June 2021
FINANCIAL REVIEW
Reserves policy
The unrestricted funds are to cover general maintenance and periodic upgrades, improvements and refurbishment of the almshouses and other projects and developments which have yet to be approved in detail.
An Emergency Repair Fund for the almshouses is intended to be maintained in Common Investment Funds (as a designated fund) in line with the recommendations of The Almshouse Association; there is no separate Cyclical Maintenance Fund or Routine Maintenance Provision.
FUTURE PLANS
The trustees will refurbish almshouses when they become vacant and the aim is to replenish the investment funds of the charity following the large expenditure on the extensions to the almshouses.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Governing Document is a Charity Commission Scheme sealed on 12 March 2007, the format of which followed the recommendations of The Almshouse Association.
The Charity comprises the following constituent charities:
The Old Almshouses (Croston's Almshouse & Wilson's Charities) The Jubilee Almshouses Mrs Margaret Jackson for Almshouses Mrs Margaret Jackson for the maintenance and repair of Almshouses Poor's Stock (including John Hough & George Norris Charities) William Dandy Thomas Norris
The trustees comprise:
3 Ex officio - the Rector and Church Wardens of St Michael's and All Angels, Croston;
3 Nominated - appointed by Croston Parish Council (the person need not be a member of the Council) for a period of four years; and 4 Co-opted - for a period of five years.
Mr S Hazlewood resigned as a Church Warden on 15 October 2020 when Mrs HM Lloyd and Mrs JR Taylor were appointed.
Mr JH Brady resigned as a co-opted trustee on 31 March 2021 and Mr RJ Foulger was appointed on 20 July 2021.
The term of office as nominated trustee of Mrs K Almond and of co-opted trustee of Mr AC Marston were extended for a further term on 12 March 2021.
Related parties
There are no related parties.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Page 3
Croston United Charities
Report of the Trustees
for the year ended 30 June 2021
Approved by order of the board of trustees on 20 July 2021 and signed on its behalf by:
AC Marston - Trustee
Page 4
Independent Examiner's Report to the Trustees of Croston United Charities
Independent examiner's report to the trustees of Croston United Charities
I report to the charity trustees on my examination of the accounts of Croston United Charities (the Trust) for the year ended 30 June 2021.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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 accounts to be reached.
Mr JFD McMillan FCA McMillan & Co LLP Chartered Accountants
20 July 2021
Page 5
Croston United Charities
Statement of Financial Activities
for the year ended 30 June 2021
| 2021 Unrestricted Endowment Total funds fund funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Charitable activities Almshouses 54,216 - 54,216 Investment income 3 1,283 1,462 2,745 Total 55,499 1,462 56,961 EXPENDITURE ON Charitable activities Almshouses 15,892 - 15,892 Other 480 - 480 Total 16,372 - 16,372 Net gains on investments - 4,061 4,061 NET INCOME 39,127 5,523 44,650 Transfers between funds 10 532 (532) - Net movement in funds 39,659 4,991 44,650 RECONCILIATION OF FUNDS Total funds brought forward 68,759 2,139,845 2,208,604 TOTAL FUNDS CARRIED FORWARD 108,418 2,144,836 2,253,254 |
2020 Total funds £ 55,061 422 |
|---|---|
| 55,483 17,270 480 |
|
| 17,750 25,310 |
|
| 63,043 - |
|
| 63,043 2,145,561 |
|
| 2,208,604 |
The notes form part of these financial statements
Page 6
Croston United Charities
Balance Sheet
30 June 2021
| Unrestricted funds Notes £ FIXED ASSETS Tangible assets 6 - Investments 7 - - CURRENT ASSETS Debtors 8 1,075 Cash at bank 107,823 108,898 CREDITORS Amounts falling due within one year 9 (480) NET CURRENT ASSETS 108,418 TOTAL ASSETS LESS CURRENT LIABILITIES 108,418 NET ASSETS 108,418 FUNDS 10 Unrestricted funds Endowment funds TOTAL FUNDS |
Endowment fund £ 2,080,145 64,691 2,144,836 - - - - - 2,144,836 2,144,836 |
2021 Total funds £ 2,080,145 64,691 2,144,836 1,075 107,823 108,898 (480) 108,418 2,253,254 2,253,254 108,418 2,144,836 2,253,254 |
2020 Total funds £ 2,080,145 20,630 2,100,775 1,047 107,262 108,309 (480) 107,829 2,208,604 2,208,604 68,759 2,139,845 2,208,604 |
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 20 July 2021 and were signed on its behalf by:
MJ Driver - Trustee
The notes form part of these financial statements
Page 7
Croston United Charities
Notes to the Financial Statements
for the year ended 30 June 2021
1. GENERAL INFORMATION
The charity is a registered charity in England and Wales and is unincorporated. The address of the principal office is 28 Eaton Avenue, Matrix Office Park, Buckshaw Village, Chorley, PR7 7NA.
There are no material uncertanties about the charity's ability to continue.
The presentational currency of the financial statements is the Pound Sterling (£).
The amounts in the financial statements have been rounded to the nearest £1.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
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.
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.
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
There is no record of the original purchase cost of the tangible fixed assets and the cost of major expenditure (less grants received) on refurbishing the almshouses since 1 July 1986 has been capitalised. Tangible fixed assets are included at market value on the basis of vacant possession.
No depreciation is provided on the almshouses as it is the Charity's practice to maintain these buildings to a high standard and accordingly the trustees consider that the lives of these assets are so long and residual values are such that their depreciation is insignificant.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds 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.
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continued...
Croston United Charities
Notes to the Financial Statements - continued
for the year ended 30 June 2021
2. ACCOUNTING POLICIES - continued
Financial instruments
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial liabilities, which include creditors, accruals, bank loans and group borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.
Investments
There is no record of the original purchase cost of the listed investments or the agricultural land. The market value of listed investments at 1 July 1991 has been taken as an indication of cost at that date. Investments are included at market value at the year end, for Common Investment Funds being based on the bid price and for agricultural land on the basis of vacant possession.
3. INVESTMENT INCOME
| Investment assets Interest Banking incentive |
2021 £ 1,462 8 1,275 2,745 |
2020 £ 277 145 - |
|---|---|---|
| 422 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 June 2021 nor for the year ended 30 June 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 June 2021 nor for the year ended 30 June 2020.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Charitable activities Almshouses Investment income Total EXPENDITURE ON Charitable activities Almshouses Other Total |
Unrestricted funds £ 55,061 145 55,206 17,270 480 17,750 |
Endowment fund £ - 277 277 - - - |
Total funds £ 55,061 422 |
|---|---|---|---|
| 55,483 17,270 480 |
|||
| 17,750 |
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continued...
Croston United Charities
Notes to the Financial Statements - continued
for the year ended 30 June 2021
| 5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Endowment funds fund £ £ Net gains on investments - 25,310 NET INCOME 37,456 25,587 Transfers between funds 277 (277) Net movement in funds 37,733 25,310 RECONCILIATION OF FUNDS Total funds brought forward 31,026 2,114,535 TOTAL FUNDS CARRIED FORWARD 68,759 2,139,845 6. TANGIBLE FIXED ASSETS COST At 1 July 2020 and 30 June 2021 NET BOOK VALUE At 30 June 2021 At 30 June 2020 |
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Endowment funds fund £ £ Net gains on investments - 25,310 NET INCOME 37,456 25,587 Transfers between funds 277 (277) Net movement in funds 37,733 25,310 RECONCILIATION OF FUNDS Total funds brought forward 31,026 2,114,535 TOTAL FUNDS CARRIED FORWARD 68,759 2,139,845 6. TANGIBLE FIXED ASSETS COST At 1 July 2020 and 30 June 2021 NET BOOK VALUE At 30 June 2021 At 30 June 2020 |
Total funds £ 25,310 |
|---|---|---|
| 63,043 - |
||
| 63,043 2,145,561 |
||
| 2,208,604 | ||
| Freehold property £ 2,080,145 2,080,145 2,080,145 |
||
The almshouses were valued at 30 June 2006 on the basis of vacant possession by Peter E Gilkes & Company, Chartered Surveyors. Subsequent additions are at cost which the Trustees consider to be their market value. The historical cost is £499,247 (2020: £499,247).
7. FIXED ASSET INVESTMENTS
| Shares Agricultural Land |
2021 £ 52,691 12,000 64,691 |
2020 £ 8,630 12,000 |
|---|---|---|
| 20,630 |
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continued...
Croston United Charities
Notes to the Financial Statements - continued
for the year ended 30 June 2021
7. FIXED ASSET INVESTMENTS - continued
Additional information as follows:
| Listed | |
|---|---|
| investments | |
| £ | |
| MARKET VALUE | |
| At 1 July 2020 | 8,630 |
| Additions | 40,000 |
| Revaluations | 4,061 |
| At 30 June 2021 | 52,691 |
| NET BOOK VALUE | |
| At 30 June 2021 | 52,691 |
| At 30 June 2020 | 8,630 |
There were no investment assets outside the UK.
The historical cost of the listed investments is £45,752 (2020: £5,752).
Investments (neither listed nor unlisted) were as follows:
| Agricultural Land Agricultural Land disposal 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Prepayments and accrued income |
2021 £ 12,000 - 12,000 2021 £ 1,075 |
2020 £ 26,000 (14,000) 12,000 2020 £ 1,047 |
|---|---|---|
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Croston United Charities
Notes to the Financial Statements - continued
for the year ended 30 June 2021
| 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 10. MOVEMENT IN FUNDS Net movement At 1/7/20 in funds £ £ Unrestricted funds General fund 68,759 39,127 Endowment funds Permanent endowment 2,139,845 5,523 TOTAL FUNDS 2,208,604 44,650 Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 55,499 (16,372) Endowment funds Permanent endowment 1,462 - TOTAL FUNDS 56,961 (16,372) Comparatives for movement in funds Net movement At 1/7/19 in funds £ £ Unrestricted funds General fund 31,026 37,456 Endowment funds Permanent endowment 2,114,535 25,587 TOTAL FUNDS 2,145,561 63,043 |
2021 £ 480 Transfers between funds £ 532 (532) - Gains and losses £ - 4,061 4,061 Transfers between funds £ 277 (277) - |
2020 £ 480 At 30/6/21 £ 108,418 2,144,836 2,253,254 Movement in funds £ 39,127 5,523 44,650 At 30/6/20 £ 68,759 2,139,845 2,208,604 |
|---|---|---|
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continued...
Croston United Charities
Notes to the Financial Statements - continued
for the year ended 30 June 2021
10. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 55,206 | (17,750) | - | 37,456 |
| Endowment funds | ||||
| Permanent endowment | 277 | - | 25,310 | 25,587 |
| TOTAL FUNDS | 55,483 | (17,750) | 25,310 | 63,043 |
Permanent endowment fund
The permanent endowment fund is the property of the charity (including land, buildings and investments) which the trustees may not spend as if it were income. The permanent endowment fund must be held permanently and produces an income for the charity.
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 June 2021.
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