2023-12-31-accounts - The Hunton Bridge Cottage Trust

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Registered Charity No. 238170 Housing Corporation No. L.2022

THE HUNTON BRIDGE COTTAGE TRUST

REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

THE HUNTON BRIDGE COTTAGE TRUST

C O N T E N T S

	Page
Board report	1 to 2
Independent auditors’ report	3 to 6
Statement of comprehensive income	7
Statement of changes in equity	8
Statement of financial position	9
Statement of cash flows	10
Notes to the financial statement	11 to 14

THE HUNTON BRIDGE COTTAGE TRUST

BOARD REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The board of trustees present their annual report together with the financial statements of the housing association for the year ended 31 December 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the Trust Deed and the Statement of Recommended Practice for Registered Housing Associations (SORP) and comply with the Accounting Directions for Private Registered Providers of Social Housing in England 2012.

Background history

Hunton Bridge Cottage Trust is registered with the Charity Commissioners No. 238170 and constituted by a Trust Deed dated 6th August 1976.

Objects

The charitable object of the association is the provision of accommodation in two houses and eight flats for the poor residents in the Langleybury parish and the neighbourhood thereof at low rents.

Review of activities

In the year, the trustees worked to achieve the main aims which are:

1) To ensure a comfortable safe and friendly home for the residents;
2) To maintain the premises to a high standard by working to an agreed programme of repairs, replacements and re-decoration;
3) To ensure that the welfare of the residents is of a high standard; and
4) To manage the affairs of the properties in an efficient, successful manner.

When reviewing activities and setting a lettings policy, the trustees pay due regard to the Charity Commission general guidance on public benefit.

Financial review

A review of the financial position of the association is given on page 7 of the accounts.

Principal address

The principal address of the Association is 1-6 Brookside Cottages, Hunton Bridge, Kings Langley, Hertfordshire.

Trustees

The following served as trustees and officers during the year:

Mr A. Gunning Mr A. Warman

The board of trustees meet four times a year and when necessary to administer the association. Trustees are elected when a position arises.

Risk management

The trustees are in the process of undertaking a full assessment of the major risks to which the charity is exposed, and are putting in place systems to mitigate exposure to the major risks.

THE HUNTON BRIDGE COTTAGE TRUST

BOARD REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

Designated reserves

The cyclical repairs and maintenance designated reserve was set up to meet the costs of unusual or large repairs and maintenance in excess of the regular programme of repairs.

Reserves policy

During the year the trustees have considered what the charity's reserves requirements are, in line with the Charity Commission guidelines. The trustees set a policy which reflects the need to maintain current operations while providing for future commitments. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained sufficient to meet association’s operating costs for three months. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the association’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Investment powers

The funds of the association shall be invested in the name of the Official Custodian for Charities unless the Charity Commissioners otherwise direct.

Creditor payments

The average number of days between receipt and payment of purchase invoice is 30 days.

Statement of the Trustees’ responsibilities

The board of trustees is responsible for preparing the accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The Housing Association law and law applicable to charities in England and Wales, requires the board to prepare accounts for each financial year which gives a true and fair view of the association’s financial activities during the year and of its financial position at the end of the year. In preparing the accounts the board is required to:

select suitable accounting policies and apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards (and statements of recommended practice) have been followed, subject to any material departures disclosed and explained in the statement of accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to assume that the association will continue its operations.

The board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the association at that time and to enable the board to ensure that any statement of account prepared by them complies with the Housing and Regeneration Act 2008 and the Accounting Direction for Social Housing in England from 2012. They are also responsible for safeguarding the assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

A resolution will be submitted at the forthcoming Annual General Meeting that Myers Clark, Chartered Accountants, be re-appointed as auditors.

By order of the Trustees

Mr A Gunning Date: 9 April 2024

Mr T Warman

Date: 9 April 2024

THE HUNTON BRIDGE COTTAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HUNTON BRIDGE COTTAGE TRUST

Opinion

We have audited the financial statements of The Hunton Bridge Cottage Trust (‘the charity’) for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of changes in reserves, statement of financial position, cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

•give a true and fair view of the state of the charity’s affairs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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 12 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 other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in

the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE HUNTON BRIDGE COTTAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HUNTON BRIDGE COTTAGE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

•the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or

•sufficient accounting records have not been kept; or

•the financial statements are not in agreement with the accounting records; or

•we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

THE HUNTON BRIDGE COTTAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HUNTON BRIDGE COTTAGE TRUST

The extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following;

•The nature of the industry and sector, control environment and performance;

•results of our enquiries of Management about their own identification and assessment of the risks of irregularities;

•any matters we identified having obtained and review the charity’s documentation of their policies and procedures relating to;

identifying, evaluating and complying with laws and regulation and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

•the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty.

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

•performed analytical procedures to identify any unusual or unexpected relationships;
•tested journal entries to identify unusual transactions;

•assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

•investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

•agreeing financial statement disclosures to underlying supporting documentation;
•reading the minutes of meetings of those charged with governance; and
•enquiring of management as to actual and potential litigation and claims

THE HUNTON BRIDGE COTTAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HUNTON BRIDGE COTTAGE TRUST

Audit response to risks identified (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws

and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Myers Clark (Statutory Auditor) Egale 1 80 St Albans Road Watford Herts WD17 1DL

Date: 9 April 2024

THE HUNTON BRIDGE COTTAGE TRUST

STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023

	Notes	2023	2022
		£	£
Social Housing lettings	2.1	37,802	37,629
Operating costs	3	(37,551)	(32,691)
Operating (deficit)/surplus		251	4,938
Bank interest receivable	4	82	23
Movement in fair value of financial
instruments		2,217	(5,027)
Total comprehensive
(expenditure)/income for the year		2,550	(66)

All activities relate to Social Housing Lettings

The Association has not acquired or discontinued any fundamental activities during the above two financial years.

The accounts were approved by the Board of Trustees on 9 April 2024 and signed on their behalf by:

Mr A Gunning TRUSTEE

Mr T Warman TRUSTEE

The notes on pages 11 to 14 form part of these accounts.

THE HUNTON BRIDGE COTTAGE TRUST

STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2023

	Revenue	Property	Cyclical	Investment	Total
			Repairs	Revaluation
	£	£	£	£	£
Balance at 1 January 2023	24,191	75,782	2,772	18,704	121,449
Surplus/(deficit) per Statement of Comprehensive Income	333	-	-	2,217	2,550
Balance at 31 December 2023	24,524	75,782	2,772	20,921	123,999

THE HUNTON BRIDGE COTTAGE TRUST

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

	Notes		2023		2022
		£	£	£	£
Fixed assets
Tangible fixed assets	7		104,781		104,781
Investments	8		30,189		27,972
			134,970		132,753
Current assets
Debtors	9	957		1,239
Cash at bank		20,395		19,622
		21,352		20,861
Creditors: amounts falling due
within one year	10	(3,324)		(3,166)
Net current assets			18,028		17,695
Creditors: amounts falling due
after one year	11		(28,999)		(28,999)
			123,999		121,449
Reserves
Revenue reserve			24,524		24,191
Property reserve	12		75,782		75,782
Cyclical repairs reserve	13		2,772		2,772
Investment revaluation reserve	14		20,921		18,704
			123,799		121,449

The accounts were approved by the Board of Trustees on 9 April 2024 and signed on their behalf by:

Mr A Gunning Mr A Warman TRUSTEE TRUSTEE

The notes on pages 11 to 14 form part of these accounts.

THE HUNTON BRIDGE COTTAGE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

		Notes	2023		2022
			£		£
Net cash inflow/(outflow) from operating
activities		(i)	773		5,055
Increase/(decrease) in cash in the year			773		5,055
Reconciliation of net cash flow to movement in
net funds
			2023		2022
			£		£
Increase/(decrease) in cash in the year /
Net movement in net funds in the year			773		5,055
Net funds at 1 January 2023			19,622		14,567
Net funds at 31 December 2023			20,395		19,622
Notes
(i)	Reconciliation of surplus to net cash
	inflow from operating activities
			2023		2022
			£		£
	Surplus/(deficit) for the year		333		4,961
	(Increase)/decrease in debtors		282		(42)
	(Decrease)/increase in creditors		158		136
	Net cash (outflow)/ inflow from
	operating activities		773		5,055
(ii)	Analysis of change in net funds during the	year
			At 1	Cash	At 31
			January	flow	December
			2023		2023
			£	£	£
	Cash at bank and in hand		19,622	773	20,395

THE HUNTON BRIDGE COTTAGE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Status

Hunton Bridge Cottage Trust is a registered charity and a Registered Social Landlord, qualifying for exemption from income and capital gains tax.

2. Principal accounting policies

The accounts have been prepared in accordance United Kingdom Generally Accepted Accounting Practice: Financial Reporting Standard 102 (FRS 102), the Statement of Recommended Practice for Registered Housing Associations effective 1 January 2019 (Housing SORP) and the Accounting Direction for Private Registered Providers of Social Housing 2012.

A summary of the more important accounting policies is set out in the following paragraphs.

2.1 Turnover

Turnover represents net rents receivable from residents.

Expenditure

2.2 Expenditure Expenditure is recognised in the period in which it is incurred and where there is a constructive obligation to pay. Expenditure includes attributable VAT which cannot be recovered.

2.3 Housing properties

The property, situated in Brookside, Old Mill Road, Hunton Bridge, Kings Langley, Hertfordshire to which the redevelopment scheme pertains was bequeathed to the Trust and the probate value cannot be ascertained and hence no value for the property is included in the accounts. By letter dated 24 June 1981 the property was valued at £240,000 by Messrs. Bowyer, Thurgood & Martin.

The housing property cost relates to refurbishment which is being depreciated to its estimated residual value over its deemed useful economic life. The trustees believe the residual value to be at least the current carrying value in these accounts and therefore any depreciation would be negligible. The directors review the estimated residual value at the end of each accounting period.

2.4 Impairment review – freehold property

The Trustees have performed an impairment review and consider the recoverable amount of the freehold property is greater than the carrying value of the asset.

2.5 Investments

Investments held as fixed assets are valued at mid-point of the quotation in the Stock Exchange Daily Official List.

2.6 Housing Association Grant

Housing Association Grant (HAG) is paid by the Housing Corporation to reduce the cost of development. HAG is repayable under certain circumstances, primarily following the sale of a property but will normally be restricted to net proceeds of sale. HAG is shown as deferred income due after one year.

THE HUNTON BRIDGE COTTAGE TRUST

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

3.	Operating costs
		2023	2022
		£	£
	Water rates payable	3,738	3,456
	Less: paid by residents	(3,738)	(3,456)
		-	-
	Management expenses	8,006	7,216
	Planned maintenance	29,545	25,475
		37,551	32,691
4.	Interest receivable
		2023	2022
		£	£
	Bank deposit interest	82	23

5. Surplus/(deficit) on ordinary activities

This is stated after charging auditors remuneration, including VAT, of £2,300 (2022: £2,220) in their capacity as auditors and £940 (2022: £900) for other services.

6. Trustees’ emoluments and related party transactions

None of the Trustees received any emoluments or were reimbursed expenses during the year.

There were no employees.

Within the year, two properties had tenants which were either trustees of the charity or related to the trustees.

7. Tangible fixed assets

Tangible fixed assets
	2023
Housing properties	£
Cost	104,781
Net book value
At 31 December 2023 and 31 December 2022	104,781

THE HUNTON BRIDGE COTTAGE TRUST

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

8.	Fixed asset investments
			2023	2022
			£	£
	Market value
	Listed on a recognised stock exchange		30,189	27,972
				COIF
	Historical cost of listed investments	Total	Blackrock	Accumulation
				Shares
		£	£	£
	At 1 January 2023 and 31 December 2023	9,269	5,867	3,402
9.	Debtors
			2023	2022
			£	£
	Prepayments & accrued income		957	1,239
			957	1,239
10.	Creditors: amounts falling due within one year
			2023	2022
			£	£
	Accruals		3,324	3,166
			3,324	3,166
11.	Creditors: amounts falling due after one year
			2023	2022
			£	£
	Deferred income: Social Housing Assistance Receivable		28,999	28,999
	Balance at 31 December 2023		28,999	28,999
12.	Property Reserve
			2023	2022
			£	£
	Balance at 1 January 2023		75,782	75,782
	Balance at 31 December 2023		75,782	75,782

This represents the cost of refurbishment less housing association grant received.

THE HUNTON BRIDGE COTTAGE TRUST

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

13. Cyclical repairs and maintenance reserve

								2023	2022
								£	£
Balance at	1	January	2023	and	31	December	2023	2,772	2,772

This reserve represents amounts set aside to meet any one-off or large maintenance costs that cannot be covered by income in the year.

14. Investment revaluation reserve

Investment revaluation reserve
	2023	2022
	£	£
Balance at 1 January 2023	18,704	23,731
Increase/(Decrease) in market value of investments	2,217	(5,027)
Balance at 31 December 2023	20,921	18,704

15. Registered charity

By Deed, sealed on 6 August 1976, the established properties 1 – 6 Brookside Cottages and 40 – 46 Gallows Hill, were vested in the Official Custodian for Charities under reference 49538. Subject to the conditions set out in the Deed the management of the properties is in the hand of the Trustees of the Hunton Bridge Cottage Trust.

16. Recoupment account

The sale of 40-46 Gallows Hill was completed on 26 February 1981 for £62,995. This amount was the subject of a recoupment order by the Charity Commission and commenced to be repaid by annual instalments of £567 from September 1988.

17. Accommodation in management

Accommodation in management
	2023	2022
	No.	No.
Supported Housing for older people	10	10