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2020-12-31-accounts

Supporting almshouse charitiesSupporting almshouse charities providing affordable community homes

Annual Report 2020

THE ALMSHOUSE ASSOCIATION

Billingbear Lodge, Maidenhead Road, Wokingham, Berkshire RG40 5RU telephone: 01344 452922 email: AlmshouseSupport@almshouses.org website: www.almshouses.org Registered Charity No. 245668 Registered Company No. 04678214

Royal Patrons

HRH The Prince of Wales KG KT GCB HRH The Duke of Gloucester KG GCVO

Ambassadors

The Archbishop of Canterbury Patrick Vernon OBE Dan Cruickshank The Baroness Paisley of St. George’s The Lord Mackay of Clashfern KT PC QC FRSE Peter Wyman CBE DL Peter Barton Esq DL Robert Durie OBE FRICS Sir Simon Day KB The Duke and Duchess of Northumberland Tony Collinson OBE Sir James Tidmarsh KCVO MBE The Baroness Bakewell DBE Sir Christopher Benson Dr Kate Tiller OBE DL FSA FRHist Kevin Crossley-Holland FRSL Judith Donovan CBE The Lord Teverson Andrew Grant DL Margaret Casely-Hayford CBE Simon Smith Sir Stanley Wells CBE Sir Michael McWilliam KCMG MA BLitt Revd Tim Hastie-Smith The Bishop of Coventry The Bishop of Wakefield The Lord Beith PC The Right Revd Peter Price The Lord Shipley OBE

Advisory Body

Ray Kenney Francesca Quint Professor Cameron Swift

Chief Executive Nick Phillips

Honorary Treasurer Simon Ling FCA Head of Member Services Rosie Sweeney

Head of Fundraising & Charity Support Sue van Leest

Head of Policy and Engagement Chris Targowski Head of Finance Michael Drake

Auditor: Buzzacott LLP 130 Wood Street, London EC2V 6DL Bankers: Coutts & Co St Martin’s Office 440 Strand, London WC2R 0QS

The Board of Trustees - 2020

Elizabeth Fathi (Chair) * Meryl Aldridge Andrew Barnes * John Broughton JP Clive Cook Rob Douglas CBE DL * # Quentin Elston Willie Hartley Russell MVO DL * David Healey Jim Kennedy * Richard Knipe * # Paul Mullis # Tricia Scouller * # Adam Sedgwick Margaret Stewart * Richard Waite Ed Christianson ~

(*Finance and General Purposes Sub Committee)

(#Leonard Hackett Memorial Trust) (~ F&GP only)

WHO WE ARE AND WHAT WE DO

The Almshouse Association is a support charity representing over 1,600 independent almshouse charities across the UK. Established in 1946 (and celebrating its 75th anniversary in 2021), the purpose of The Almshouse Association is to:

Almshouses are a charitable form of self-sufficient, low cost community housing held in trust for local people in housing need. They are managed and run by almshouse charities led by local volunteer trustees.

The oldest form of social housing, almshouses can trace their history back over a thousand years. Today, 36,000 people are living full and independent lives in almshouses, finding friendships, wellbeing and security inside their walls and within their communities. The Almshouse Association guides on all aspects of almshouse management, supports member charities with the provision of up-to-date policies and governance advice, organises seminars and develops training, as well as offering a single point of contact help line.

Through raising awareness, representation, fundraising, donations and legacies, The Almshouse Association is working hard with almshouse charities, local authorities and government alike, to make it possible for many more almshouses to be built to secure affordable housing for people in need today and for future generations.

The Almshouse Association 2020 Annual Report has been kindly sponsored by M & G Investments front cover: photo courtesy of Winnocks and Kendalls Almshouse Charity

CHAIR’S REVIEW Welcome to our 2020 Annual Report

(not housing providers who happen to be charities) and trustees hold a duty of care. A duty that has come to the fore especially during this last year.

Resilience is a word long associated with almshouses.

As a mature charitable model providing distinctive local housing for local people run by local people, almshouses have witnessed and survived one thousand years of political and economic turmoil, not to mention public health emergencies from the Black Death to our current pandemic. This has been a year that none of us would have wished to experience. It has been a bleak and desperate time. Almshouse trustees across the country have been impressively resolute in their duty to protect their charities and residents and The Almshouse Association has been proud to support them through member services and representation.

The pandemic has in many ways brought into focus the distinctive characteristics of almshouses and the added value that they give. If isolation was a recognised problem before, it is now considered to be one of our society’s greatest challenges, but for almshouse residents whose neighbours are often fellow locals

Despite the uncertainties, the financial statements that follow show a strong and healthy balance sheet capable of supporting essential member services such as loans and grants. Fundraising to sustain these services in the long term is a priority as income has reduced significantly due to the pandemic. Unpredictable money markets have impacted yields and capital values throughout the last few months, but I am pleased to report that towards the end of 2020 they recovered well and we are in as strong a position as when we began the year. We remain

Almshouse Association Chair and CEO Nick Phillips welcomed HRH The Prince of Wales to member charity Nicholas Chamberlaine Almshouses in Warwickshire on 18 February 2020.

drawn from the same eligibility group, the sense of belonging and companionship has been shown to improve wellbeing and longevity.

The Association celebrates its 75th anniversary in 2021. Our founder, Leonard Hackett, a businessman, stock exchange “Blue Jacket” and member of the RAF elite 600 Royal Auxiliary Squadron, was known for being diplomatic and compassionate, characteristics that resonate through the Association and its members. These qualities have helped the movement navigate through the challenging year we have all endured. It is with hope that we plan our 2021 celebrations and I am very much looking forward to meeting up with you all again.

Amersham United Charities, Buckinghamshire resident Mary (right) greeted guests with hand sanitiser when celebrating her 90th birthday with an exclusive garden party for six on a sunny day last summer.

I would like to thank all our members, supporters, ambassadors, champions, staff and my colleagues on the Board for their care, compassion, friendship, resilience and hard work. Nick Phillips and the team at Billingbear have worked tirelessly through all the challenges that have been thrown at them in this turbulent year. We are fortunate indeed. The regular and attentive support from our Patron HRH The Prince of Wales and Vice Patron, HRH The Duke of Gloucester deserves a special mention and deep gratitude.

vigilant, nevertheless. Costs have been kept within budget and expenditure on our ambitious five-year strategy has been taken, as planned, from a designated fund.

One of the most notable achievements this year has been the Charity Commission’s approval of a legal definition for almshouses; a milestone that will stand the movement in good stead for many decades to come. Clarity around what makes almshouses different from other housing providers is essential for communicating with those who may not appreciate that almshouses are, first and foremost, charities which provide housing

Elizabeth Fathi, Chair of The Almshouse Association

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 1

CHIEF EXECUTIVE’S REPORT

It seems the need for affordable community homes has never been greater. This year has shown how important the ‘community’ aspect of almshouses has been. Our member charities have been inspirational in their calm dedication to their residents throughout the pandemic. We now all look forward to positive years ahead of new almshouses, new charities established and new partnerships.

I believe that the CEO comment in the annual report is not just a review of the last year but traditionally a reflection of the successful year elapsed. I am loath to celebrate anything much in 2020 as we all know it has been brutal for many and deeply unsettling for others. No one has been untouched by the COVID-19 pandemic and our greatest thoughts are with the volunteer trustees and staff working tirelessly to support their residents and keep their almshouse charities resilient.

However, I would be doing a disservice to our staff, Board and members if I did not celebrate the success of all the almshouse movement in the face of the pandemic. The team at the Association acted with calm dedication and commitment, remaining focused throughout 2020 on their duty to support members. They quickly and efficiently changed their entire ways of working to enable continuance of service.

It is certainly of note that from the start of the pandemic members responded as expected, putting the wellbeing of residents at the forefront of their

developed a proactive system to capture and disseminate information from trusted sources that would be essential to our members. This information was reviewed, posted and emailed, often updating twice or more during the working day and weekends. The

“In between lockdowns, I was able to squeeze in a small socially distanced visit to Peter Hill, the new Chair of Trustees of Mary Dains Almshouses, Trimley in Suffolk, where he talked about how gardens had become even more important to residents during lockdown.”

number of members using the site increased by over 30% during the pandemic with many visiting more than once a day.

Our strategic development did not stop during the pandemic and we continued to make advances with our guidance manual, training, PR and marketing as well as dealing with a deluge of enquiries.

planning. When many of our charities are run and managed by volunteer trustees this brought a new level of responsibility to the role not seen since wartime. The Almshouse Association Board of Trustees responded with offers of support and advice despite often having many other roles that required their attention.

The annual members’ survey showed us that although not much has changed in the ambitions of our members, the need to support trustees and to help with succession planning was a real concern. The pandemic has heightened that concern and we are aware of the great need to support member trustees as many have said they will be retiring at the end of their current term. This concern is further heightened when we consider the modelling of the characteristics of the very few charities that fall into crisis. Often this includes a mixture of low financial reserves and struggling trustees.

The pandemic has highlighted funding issues and this year The Almshouse Association has used its funds to support over £1.3m of grants and loans, often helping develop resilience in those charities that are facing a critical financial challenge or expansion. As identified within our strategy, funds are accompanied by direct support and guidance for the trustees, and our team has successfully worked with member trustees and clerks to transform charities through guidance, training and active support as well as the award of grants. It is likely that 2021 will require equal support for many small charities, and fundraising to fill that gap becomes ever more critical.

Residents of almshouses in Eltham celebrate receiving their Almshouse Association Christmas vouchers - given to all residents over 90 years old, from a legacy fund set up in 1958.

As a team we were able to quickly upgrade our IT system and implement communication procedures to enable all to work from home. In 2020 we introduced a customer management system that has been essential in maintaining records and sharing information when supporting members. The website became an instant lifeline to members for updated information. The team

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2020 saw significant engagement with national and local government and we were delighted to find almshouses recognised in the House of Lords (who debated and challenged the Government about how almshouses should be supported) and the House of Commons where supportive MPs raise key issues in support of almshouses. The main challenge for the almshouse movement remains recognition for almshouses as suitable affordable housing partners under the Section 106 guidance.

government publications. It is clear, however, that there is still quite limited understanding of the almshouse movement and the role that almshouses play. Our YouGov* survey showed that whilst 76% of respondents believe that almshouses are an important part of hous-

Member services continue to be at the core of our work. Our team has dealt with 2,254 enquiries and the most common relate to resident issues, finance and coronavirus. Focus on accuracy and clarity of guidance is always at the fore and the team prides itself on offering the highest standards of customer service; this is often confirmed by feedback from members. Members greatly value the interaction with other trustees and staff and our members’ forum is a popular meeting area for exchanging views, ideas and experiences. The

Residents of the Guildhall Feoffment, Bury St Edmunds, celebrating the generosity of their founders and benefactors for over 500 years.

ing, 84% were not aware of any almshouses in their area and overall 65% were not clear on what an almshouse actually is. This issue seems shared amongst local councils and in 2020 we have stepped in to support member charities when local council planning teams did not understand that almshouses are ‘affordable housing’.

We are ambitious and proud of the almshouse model and believe that the scale, the care, compassion and most of all, the enabled companionship that is embodied in the spirit of almshouses is a good model for housing today.

Another great strength and power for change has come from our newly appointed and invigorated Ambassadors. We are delighted and honoured by the skills and generosity of our Ambassadors. I fear naming any as that will exclude others but if anything lifts the spirits, the awareness and the confidence of the ‘almshouse brand’ it is having the support of these wonderful people who all possess unique areas of skill, knowledge, influence and wisdom.

strength of the network, the almshouse family, is often found in the generosity of members who are willing to share experiences. The pandemic tried to thwart our planned events, but the team responded by developing online training and webinars (some events with over 100 attendees) and a virtual AGM.

We think, we are told, and we all believe, that almshouses are good places to live but we are short of evidence. In 2020 we sought to undertake research into the value of almshouses; though stalled at present, this research will form the foundation for future developments in the almshouse movement. We have so many partners, sponsors and members to thank in the emerging field of research: Professor Cameron Swift, Meryl Aldridge and Clive Cook have all given up their time generously to the subcommittee developing research; the Mercers Company, Abbeyfield Research Foundation, Whiteley Village Homes Trust, Cass Business School and Dunhill Foundation; the many members who complete surveys and spend their time responding to research enquiries; they are all to be thanked profusely. We could not develop new research without their generous support.

As we approached the end of 2020 we were encouraged by the increased publicity for almshouses; with appearances on the radio, social media, comments in the press, reports and mentions in

Amongst the Board and membership there are ambitions to expand the provision of almshouses for the next generation as the need for low cost housing is set to increase substantially over the next decade. Almshouses occupy a unique position and have a significant role to play in supporting communities. With this message in mind, we approach our 75th anniversary and during the year of 2021, despite the cloud of the virus, we are excited about raising the profile of the almshouse movement, building stronger relationships with our members, delivering ground breaking research evidencing the unique value of almshouses and delivering a service to our members second to none, of which our founder Leonard Hackett would be eternally proud.

The year ahead will see us drive to support governance, raise the profile of almshouses and support the expansion of new almshouses.

Nick Phillips, Chief Executive of The Almshouse Association

*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2001 adults. Fieldwork was undertaken between 18/19 November 2020. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 3

MEMBERSHIP AND DEVELOPMENT

Membership at 31 December 2020

l Total number of members 1,589 l Total number of sites 2,529 l Members gained/(losses/mergers) in 2020 3/(13)

Membership by country

l Wales 33

Charity type

Registered Providers 287

Members’ Survey 2020

(based on 577 responses)

Top six challenges over the next five years

Almshouse charities by size

----- Start of picture text -----
562 - 35%
445 - 28%
261 - 17%
100 - 6%
221 - 14%
----- End of picture text -----

Member charities

Top five opportunities over the next five years

Almshouses with listed/conservation area status

800

Membership enquiries by type*

l Residents 260

----- Start of picture text -----
700
668
600
500
400
300
200
108
100 73
43
0
Grade I Grade II Grade II Conservation Area
----- End of picture text -----*

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STRUCTURE, GOVERNANCE AND MANAGEMENT

The Almshouse Association Board is responsible for guiding the charity and developing and overseeing the delivery of the strategy. In doing so, the Board employs and manages the Chief Executive Officer, monitors the finances and acts as champion for the Association and the almshouse movement. Crucially, the Board ensures that the vision of the founder 75 years ago is delivered today.

Public Benefit

The Almshouse Association Board of Trustees regularly monitor and review the success of the organisation in meeting its key objectives of supporting its members to run thriving almshouse charities for the residents and raising the awareness of the almshouse movement. Having considered the guidance, the trustees confirm that the work of the charity fully meets the public benefit test and that all the activities of the charity described in this report are undertaken in pursuit of these aims.

Despite the pandemic, Board and Finance and General Purposes meetings continued to be held as scheduled throughout 2020 via video conferencing.

a dedicated region and one third of Board members can now be appointed from outside the almshouse movement in order to encourage diversity and new ideas, bringing new skills and experiences. A Nominations Committee has been established in order to identify and interview potential trustees with the skills required in order that they may be put forward to the wider Board.

The Almshouse Association, a company limited by guarantee not having a share capital (Charity Registered No 245668; Company Registered No 04678214), was incorporated under the Companies Act in February 2003 and operates under its Memorandum and Articles of Association. The Almshouse Association is the representative body for individual almshouse charities throughout the United Kingdom and the Republic of Ireland and on 31 December 2020 the membership comprised 1589* charities.

Newly appointed trustees receive induction briefings and are encouraged to attend one of several trustee training seminars organised by The Almshouse Association throughout the year, however, in 2020 these have been limited to web-based sessions.

The Board, whose names are given on the inside back cover of this report, are the Charity’s Trustees and Directors of the Company. Following a governance review last year, trustees do not provide a representative role within

*A strength of the movement is that many thriving charities merge with local struggling charities - the impact to The Association is that we then have one registered member instead of two!

THE LEONARD HACKETT MEMORIAL TRUST

The Leonard Hackett Memorial Trust (LHMT) operates as an independent charity, whose role is to support the work of the Association. Acting as a “trustee of last resort”, its focus has been assisting charities in crisis, bringing them to good condition before establishing a new independent board to oversee the long-term future of the charity.

The LHMT has turned around several almshouse charities in the past, such as High Ercall in Shropshire, Holy Trinity Heath Town in the West

Midlands and “LHMT remains an important backstop Edmund Sawyer, for charities in crisis and will always Northamptonshire. The LHMT has been Leonard Hackett, the first Chief Executive of have a role working to support successful in finding the Association, working in office at Billingbear The Almshouse Association and its trustees to take over Lodge with Mrs Hobbs. members in most need.” the running of the charities and move them back into the community. Tricia Scouller, Chair of the Leonard The trustees of the Leonard Hackett Memorial Trust, under the Hackett Memorial Trust. chairmanship of Tricia Scouller, have reviewed the role of the Trust and feel that earlier prevention is a more efficient way of dealing with charities needing support, however, the charity remains ready to step in as a charity of last resort. Currently the LHMT is responsible for running Edmund Sawyer Charity, two stone cottages in Kettering. In 2020 the LHMT opened discussions with a local charity who may take over the running of the charity, subject to works being completed.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 5

STRATEGY

The Board, having identified funds for the five year strategy, monitors their delivery at every Board meeting. The strategy progressed in many areas during 2020, most notably the development of the CRM system, introduction of Regional Champions (pilot), Standards of Almshouse Management manual review and improved training and raising awareness. Motivation and momentum continues at pace, however, during the pandemic some projects have been unavoidably delayed. All are, however, still within the strategic timetable.

Delivering the strategy

Delivering the strategy is a key aspect of the work of the Association but the impact of that strategy is also important. We have seen significant renewed interest in the almshouse movement from MPs during the last year and whilst we continue to raise our profile we have been proud to see that supportive MPs have raised questions in Parliament in support of almshouses on twelve occasions. The House of Lords has seen a significant interest with a debate focused on how the Government could support almshouses, with contributions from Lord Kennedy and Baroness Eaton. Furthermore, we have been encouraged to see almshouses noted in reports from Homes England and in white papers such as ‘Planning for the Future’.

Research is a critical area of development for The Almshouse Association. Having established a team to oversee this work, we embarked on both research and data gathering in 2020. We hope the outcome of this research will guide the Association and highlight the areas of greatest impact that almshouses have on residents’ well-being.

those that knew almshouses thought they were a good thing and would like to see more built! It is from this starting point that we are working with our Ambassadors and partners to raise the profile of almshouses as the exemplar form of community housing.

We continue to strive to see almshouse charities properly recognised as affordable housing by local planning officers, county councils and government departments.

Exeter Homes Trust held a low key celebration to mark the completion of the remodelling work at Atwill Palmer Almshouses. Residents joined in via a Facebook page.

Raising the profile of the almshouse movement is a big challenge for the Association. We undertook a YouGov* survey in order to set a benchmark for awareness of almshouses amongst the public. Unsurprisingly, awareness is low with 65% of those questioned not quite knowing what an almshouse is. There was a strong element of hope, however, that nearly 80% of

In 2020 our Chair, Elizabeth Fathi reported the draft of an almshouse definition being agreed by the Charity Commission. It is a significant step to report that this definition has now been officially approved and adopted and can be read on their own website forming part of their Operational Guidance. We hope that this will further assist in the understanding of almshouses and their purpose.

A strategic objective was to see more of our charity money used supporting members and we have done so. Our members required financial support at the two opposing ends of the spectrum: those

charities seeking to expand, to build more and improve their buildings through great remodelling programmes and those that need financial support to keep going.

The vast majority of our members are managing their finances efficiently and effectively maintaining a comfortable reserve and holding funds for long-term building work. A few charities have, however, found themselves in financial difficulties, either from the impact of lockdown or from long-term challenges such

*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2001 adults. Fieldwork was undertaken between 18/19 November 2020. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

6 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Our developing relationships with Members of Parliament came into real focus during the early stages of the pandemic with the Association contacting every MP with an almshouse in their constituency (that is over 90% of MPs).

Members of Parliament speak on behalf of almshouses in the House of Lords.

Many local almshouse charities were then able to receive support for accessing PPE. Later in 2020, MPs raised questions with the Health Minister with regards to almshouse residents and staff housing very elderly residents moving higher on the COVID-19 vaccine priority list.

as keeping up with weekly maintenance contributions. We see our role as supporting these charities to build resilience and continue into the next century through grants and support to the charity boards helping them plan and, in some cases, develop succession planning for board appointments. It is these charities that concern us most and we are aware that, having awarded £1.3m this year, our own funds will be depleted. The importance of securing replacement income from donations and legacies therefore remains high so that we may continue to support charities in most need.

All communication was immediately shared with members to help access support from MPs.

Lifting the standard through partnership

Documents, clippings and photographs from The Almshouse Association Welsh archives.

As noted, almshouses are places of comfort and companionship but, in a very few cases, the buildings are suffering. Our strategy includes working with partners to ease the burden of maintaining historically important buildings. We have begun work with Historic England to develop a guidance manual for both almshouse managers and conservation officers.

In order to provide the best service to our members we extended our engagement to look for where the best support can be offered. Recognising that there was a specific need in our almshouses in Wales, we undertook a detailed examination of the needs in Wales and this enabled us to work with some members on long-term plans for development.

Both Historic England and The Almshouse Association feel that the nation would be worse off if these buildings were found to be too expensive to maintain and sold into private ownership. We will be establishing a fund specifically for the support of historic almshouse buildings.

We also discovered some trustees who were in need of detailed support and plans are underway with these trustees. Over the coming years we intend to develop this practice across the country.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 7

THE ALMSHOUSE ASSOCIATION AMBASSADORS

Historically, we have been well supported by a long-standing and committed group of Vice Patrons, and we were keen to use our past experience to inform our future plans. Following work to contact and establish those Vice Patrons who were willing to continue on the journey with us, along with some new volunteers, we are delighted to have recruited 30 new Ambassadors (see inside front cover of this report), who will work with us to support our members.

Our Ambassadors will work with us to

Justin Welby, The Archbishop of Canterbury is keen to encourage the ex-officio trustees to share and celebrate their commitment to the charities they are sup-

Kevin Crossley-Holland, renowned poet, translator from Anglo-Saxon and author for children. He is the recipient of many literary awards including the Carnegie Medal and his twelfth collection of poems, ‘Gravity for Beginners’, was published in spring 2021. He has kindly agreed to write a celebratory poem for The Almshouse Association’s 75th anniversary celebrations.

porting. We were pleased by the recent Church of England ‘Coming Home’ report which provided the most public support for almshouses in many years.

Baroness Joan Bakewell has represented us at The House of Lords, most recently asking the question regarding the need to review Section 106 planning guidance to extend its benefits to almshouse charities to allow them to increase their housing provision.

“Though many almshouses are housed in heritage buildings they are not a thing of the past: today they offer accommodation to the needy and a way of life that reduces loneliness.”

Dan Cruickshank, British art historian and BBC television presenter with a special interest in the history of architecture, has expressed an interest in making a documentary about the history of almshouses. “The one thousand year history of the almshouse movement is a story of compassion, companionship and community and a demonstration that these admirable qualities can produce a much-loved architecture of enduring quality. Almshouses, the life they engender and the architectural form they take, remain relevant today. Their history is a topic of intense interest that deserves to be shared and celebrated, with its lessons learned and applied.”

8 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

We will be introducing our Ambassadors over the coming months in The Almshouses Gazette and on our website and through social media channels. We are excited that they will be working with us to take The Almshouse Association into the next phase of our development. We have already had significant success in the early stages of the work with our Ambassadors and look forward to sharing future updates with you.

We are so thankful for the amazing support we are already getting from our Ambassadors and we are really looking forward to working with them all over the coming year.

Patrick Vernon, OBE Peter Wyman has is a British social linked us with the commentator and UK Community political activist of Foundation and its Jamaican heritage, network of 46 who works in the regional teams, openvoluntary and ing up opportunities public sectors. across the UK for our He is supporting members. He will be the Association working with us to with advice and support our members consideration for increasing diversity in the movement.

in Somerset. “I am passionate about helping those in need and recognise the vital role almshouses play in providing housing and support for so many people.”

STATEMENT OF RISK

The Board is ultimately responsible for “risk”. Day-to-day responsibility for risk is overseen by the CEO and senior staff but the Board maintains a keen watch on the Risk Register, regularly challenging and reviewing the highest priority risks. The Register is updated and reviewed at every Board and Finance and General Purposes meeting. The Almshouse Association principal risk areas are as follows:

Key Risk Description Mitigation
Operational Efficiency impacted Staff working from home and Regular communication with IT company.
during COVID-19 crisis. utilising inefficient IT. CEO acts as main contact to oversee service.
Staff and member communication Organisational recovery plan and daily comms from CEO.
impacted by loss of contact. Staff
sickness.
Operational Service to members Members unable to attend events Establish team member responsible for help with web
affected by poor and main communication reliant access issues. Maintain website information and guidance.
communications. on telephone, website and email. Use web as key information base for members.
Develop team of regional contacts to act as on the ground
contacts to signpost to TAA over regional issues.
Financial Loss of Income Grants and loans still in high Focus on fundraising high-level dedicated staff to develop
fundraising and demand. Trusts are focused on relationships with corporates, individuals and develop and
investments. awarding grants to COVID-19 deliver the legacy strategy. Regular reports on fundraising
emergency charities. Fewer to Board and F&GP.
opportunities to engage with Case for support with new branding developed and
donors during lockdown. Less being used.
money available post Brexit. Specialised fundraising consultant recruited.
Review at six months and reprioritise if needed.
Policy Policies and govern- Government policy affects members High level engagement with MPs, Executives and House
ment communication and the Association. of Lords.
reviewed in light of Clear key tasks.
pandemic.
Operational Information Systems fail to meet operational External IT support.
technology. need. Failure to innovate or update 365 plan developed with contractor.
systems, loss or corruption of data.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 9

ADVICE AND ASSISTANCE

The lockdown in March 2020 and ongoing COVID-19 restrictions led to significant changes in the way we deliver our member services. Whilst we continued to offer members support and guidance by phone and email, our usual programme of events had to be postponed and many of our usual services were moved online.

Our seminars rapidly made way for webinars of which we held five in 2020. We engaged professional speakers for each session and covered topics such as making changes to your governing document, value for money reporting, incorporating your charity, and trustee

made by the Government. This guidance allowed our members to navigate the myriad of COVID-19 restrictions and apply those that were relevant to their almshouses to keep their residents and staff safe. We also added to our online training offering with five new

Almshouse Association Member Services worked with the London Almshouse Group to set up their inaugural meeting on 6 February 2020 at The Charity of Elizabeth Jane Jones and David Henry Waring. COVID-19 thwarted later meeting plans but the hope is that these can be resumed as soon as restrictions are lifted.

recruitment. We also held an in-depth training course on trustee recruitment over five weeks, attended by 20 member charities. We will continue to offer webinars throughout 2021. The website became a focal point for our COVID-19 guidance with updates being published on a regular basis, often just hours after announcements

courses being offered in 2020. Courses added included infection prevention and control, risk assessment and fire awareness. Members continue to be able to access these courses free of charge and are able to request additional credits from us to ensure all staff and trustees have the knowledge they need. Prior to the

Almshouse Association Services 2019-2020

percentage of members* that had used each service

----- Start of picture text -----
Almshouses Gazette 88%
Almshouse Association website 70%
Received guidance/support via email/phone 63%
Model policies and templates 58%
Standards of Almshouse Management Manual online 47%
Attended a training seminar 26%
Members Forum 22%
Support and Care Manual online 20%
NAACIP (insurance policies) 18%
Panel of Consultants 16%
Attended the 2019 Members Day 14%
Association Grants and Loans 10%
Online training 10%
Had not accessed any services 3%
----- End of picture text -----

*577 members took part in the Members’ Survey based on services used between Mar 19 - Mar 20

10 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

outbreak of the pandemic, we were able to install a new customer relationship management (CRM) system, which has allowed us to better track the number and types of enquiries we receive.

Between the launch of the CRM in January 2020 and the end of the year, we recorded more than 2200 enquiries, over 20% of which were from members of the public looking to move into an almshouse. Being

FUNDRAISING

The Association uses its resources to support member charities. Challenging times, like those we found ourselves in during 2020, inevitably lead to increased requests for funding support from the Association.

The Almshouse Association awarded over £1m in loans and grants to charities in 2020 (see pages 39/40 for full details). These funds have been critical to some charities helping them survive and offer safe, secure, warm accommodation to their residents. Other funds have been used for expanding charities responding to the housing needs of the community. Our grant and loan process is robust and comes not just with funds for members but also offers help around planning, governance and all aspects of running thriving almshouses.

Throughout the charitable sector, concerns have been raised about the impact of COVID-19 on income generation and this looks likely to continue into 2021. COVID-19 support funding provided financial help to those charities working on the frontline of the response to the pandemic. Across the board, charities have seen a significant decrease in income from fundraising. These are challenging times and we are working hard to respond to the changes in the charitable landscape in order to sustain our service to our members. The Almshouse Association engaged Wootton George Consulting in January 2020 to help develop fundraising in the areas of trusts and foundations, corporate partnerships and major gifts. Progress has been made in each area, despite the challenges of the pandemic and impact in the sector as a whole.

We have a new ‘Case for Support’ to support our work and our focus this year has been to build a fund to support our members who are experiencing challenges with sustaining their charities. We have been successful in being awarded grants from a number of trusts and we look forward to reporting our successes back to them. Initial research was conducted into potential corporate partners. Originally it was planned to run a series of events around the country to which companies would be invited. The onset of the pandemic has, however, delayed this.

able to track this information will enable us to better understand our members’ needs and develop our services accordingly. In 2021 we will publish the latest edition of Standards of Almshouse Management, which has undergone a thorough overhaul over the past 12 months. We will also launch a training course for new trustees on the basics of running an almshouse charity. This will be delivered online initially but we hope to be able to offer in person training sessions in due course.

“Almshouses are a vital but largely unrecognised form of social housing. Drawing on long historic traditions of hospitality and support, and managed by local trustees, they are uniquely positioned to support their own communities with affordable homes. Many are housed in the middle of towns or villages in heritage buildings which brings its own

challenges; remodelling and improving these to achieve comfortable and energy efficient homes for modern living is expensive and many almshouses are not well endowed.

The Almshouse Association’s readily available support, specialist advice, and interest free loans are invaluable; Abbots Bromley Hospital has benefitted hugely from all of these during two major remodelling projects. I believe strongly that almshouses are special places and I fully support the Association’s determination to raise the profile nationally of this valuable form of housing, helping to ensure more are built and those we have are the best they can be. I have made provision for a gift of funds to the Association in my will - I only wish it could be more!”

Mithra Tonking, Trustee at Abbots Bromley Hospital.

As part of our new Ambassador initiative, we are building networks across the country to engage with potential partners and funders. We will launch our new Legacy Campaign in 2021 as part of our 75th Anniversary programme and look forward to utilising this aspect of our fundraising as a long term source of support helping our members thrive.

We continue to work hard to support our members with their own fundraising endeavours and have seen success across the country, particularly with local Community Foundations’ funding opportunities. As an example we worked with a grant making trust in the West Midlands, which resulted in both the Peter Harris Trust and Holy Trinity Almshouse Charity receiving a grant to carry out essential works to their properties.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 11

REGIONAL CHAMPIONS

In 2020, we launched our new and exciting regional representation pilot project to help with member engagement across the country – regional representatives to work alongside The Almshouse Association to provide focused member support to almshouse charities in their local area. We were delighted to announce the appointment of seven Regional Champions in the first phase of this project.

The role of the Regional Champion is to support the Association in engaging with members, providing local expertise and identifying those charities that might need a little extra support from The Almshouse Association team. They will also support with fundraising activity. All currently work for, or are trustees of, almshouse charities in their respective

regions and bring with them a wealth of experience in the almshouse sector.

They have been in touch with charities in their regions and will look to organise regional get-togethers in 2021 when COVID-19 restrictions are eased. Eventually we hope to have 20 Regional Champions covering the whole of the United Kingdom.

The newly appointed Regional Champions are:

Richard Knipe, The Spalding Almshouse Charity - Lincolnshire

Richard Knipe (fifth from left) on site in Larkspur Way, Spalding, with Spalding Town Husbands trustees.

Anya Mathewson, Mulberry Property Management - Yorkshire

Paul Mullis, Durham Aged Mineworkers’ Homes Association - Cumbria

----- Start of picture text -----
Anya Mathewson hands out teas at a garden party to
commemorate Wandesford House founder
Mary Wandesford (July 19).
DAMHA Chief Executive, Paul Mullis (far left) said: “We are
very pleased to welcome residents Wyn and Harry to our
newest development in Philadelphia, Tyne & Wear and once again to have helped meet the pressing need for two-bedroom
bungalows in our region”. Also pictured is Mark Binns, Construction Director at Esh Construction.
----- End of picture text -----

----- Start of picture text -----
Anya Mathewson hands out teas at a garden party to
commemorate Wandesford House founder
Mary Wandesford (July 19).
----- End of picture text -----

12 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Joe Waters, Eventide Homes - Dorset, Hampshire and the Isle of Wight

Joe Waters (right), Eventide Homes with Chairman, Ken Mantock (far left).

David Healey, Sir Josiah Mason Trust - Birmingham, West Midlands and Warwickshire David Healey, CEO (right) with the Sir Josiah Mason Trust Deed of Foundation 1868. Susie Coen (left) outside Trinity Hospital, Salisbury.

Susie Coen, Salisbury City Almshouse

& Welfare Charities - Wiltshire

Karen Percival, Okehampton United Charity - Devon and Cornwall

----- Start of picture text -----
Karen Percival (right) outside
the Nook almshouse.
----- End of picture text -----

POLICIES AND GUIDANCE

The Association seeks to provide all the key resources needed by our members to successfully run their almshouse charities. We offer model policies and templates and, as required, these are reviewed by legal firms in order to offer the reassurance that our guidance documents are up-to-date and relevant. As well as these regular reviews, we are constantly monitoring developments which may lead to the

creation of new policies and guidance. This has recently included policies on media handling and social media. We have also developed a template which members can use to contact their local MP, helping to build a relationship with key community stakeholders.

The guidance manual, Standards of Almshouse Management, which has a search function and links to policies and third party official guidance, is regularly updated on our website. Various other resources can be found on the website and we encourage members to use it as much as possible to stay up-to-date. The Standards of Almshouse Management Guidance Manual is being reviewed in 2021.

Important updates and news are regularly posted on our website and members who have consented to updates receive regular email bulletins keeping them aware of developments in the almshouse movement.

A working group of member charities met in early 2020 to discuss the next generation of The Almshouse Association Standards of Almshouse Management manual.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 13

REPRESENTATION

The almshouse movement is not as well known and recognised as it deserves. It has been our mission throughout 2020 to raise the profile of almshouses at a national and local level. The Association seeks to promote almshouse charities to a number of key stakeholders. These include local and national government, MPs, peers and the Charity Commission to name a few. This last year has seen the almshouse movement make large strides forward towards achieving some of our key objectives. Most significant of these achieve-

ments is recognition of the official definition of almshouses. This is a major milestone which provides us with a platform for further success.

We recognise that we have much more to do to engage local government in the value of almshouses in their community and it is with this in mind that we have a research project underway to assess the value for money of almshouses to a community. We are working towards almshouses being recognised as the exemplar form of community housing and recognised by local and national government as such.

We have continued to have regular discussions with MPs, peers and representatives of the Ministry of Housing, Communities and Local

Almshouse residents and trustees toast the first new almshouse for Zeals Almshouses in Warminster in over 150 years.

PERSONNEL

The Chief Executive, together with other senior staff, is responsible for the direction and control, running and operation of the charity on a day-to-day basis. Staff remuneration, terms and conditions are reviewed annually by the Board, following recommendations made by the Finance & General Purposes sub-committee. Any changes take effect from January 1st the following year.

STAFF

Management of the staff is delegated to the Chief Executive. The team was boosted in 2020 by two new posts, Assistant Policy and Engagement Officer, Jack Baldan and Campaign Manager, Gerry Harmon - two individuals who have brought great energy, efficiency and professionalism to complement the very busy team. The team is structured on the needs of the strategy and in order to develop skills in areas most commonly needed by our members.

“The team is hardworking, dedicated and professional - they have driven themselves hard throughout the pandemic to deliver an excellent service to our members. An Almshouse Association team meeting via Zoom. They seek opportunities for improvement and innovation, helping each other at times of pressure and keep focused on the strategic objectives of the charity - a pleasure and a privilege to work with.” Nick Phillips, Chief Executive.

14 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Government regarding our concerns over the recognition of almshouse charities that are not part of the RSH scheme to be recognised as affordable housing worthy of support by Homes England and Section 106. These discussions have proven positive so far and with the Government’s planned overhaul of the planning system underway, we are confident that we can make progress on this issue.

Almshouses have also received a high level of coverage in government legislation in comparison to recent years. This, combined with a discussion within the House of Lords, is a sign that almshouses are slowly becoming part of the wider housing discussion. Plans for 2021 include the relaunch of the APPG on Almshouses in February with a number of supportive MPs and peers who can help us have our movement’s voice heard in the corridors of power.

Recent months have seen us diversify the type of partnerships we are looking to build. This has seen conversations with groups who share our ethos of providing high-quality, genuinely affordable, community housing.

An ornamental tree is planted at the community open day celebrating the building of six independent living bungalows and the successful partnership between Calder Valley Community Land Trust and John Eastwood Homes.

INSURANCE

Members are eligible to join the comprehensive insurance scheme run by two main brokers. Both of the specialist insurance companies that support the Association members have been through changes in 2020. AON moved our member account to Higos, and Grout Insurance Royal Sun Alliance, who serve 1,116 members, has been transferred to Access Insurance - although many of the broker staff that we know remain in place. We have met with both new companies and have been assured of a continuation of very high levels of customer service. During the year, The Almshouse Association received donations of £30,000 from Grout and £30,000 from Royal Sun Alliance and a donation and sponsorship of £18,000 from AON.

ALMSHOUSE CONSORTIUM LTD (ACL)

Almshouse Consortium Limited is an independent organisation that acts as a vehicle through which almshouses can access grant funding from Homes England and the Greater London Authority. It has been in existence for nearly 10 years and has received £45m funding for the remodelling or construction of over 1,600 almshouses. ACL is an independent non-profit making organisation, with ownership in the hands of those almshouses which are currently grant funded. Members expanding or refurbishing almshouses receive valuable support and assistance from The Almshouse Association.

During 2020 The Almshouse Association began exploring ways in which smaller almshouse charities may access support and Homes England Funding. These discussions continue and we hope to help members develop over the coming years at a much greater rate. The added value of The Almshouse Association and ACL is the opportunity to share experiences, help

members access funding and develop a greater understanding of the Regulator for Social Housing.

ACL holds a preliminary meeting

on site at the Matthew Robinson Almshouses in Burneston to discuss the remodelling Homes England funding project.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 15

FINANCIAL REVIEW

Overview

The Statement of Financial Activities shows that the Association’s net expenditure before investment gains for 2020 was £360,787 (2019 £148,228). Net gains on investments amounted to £168,230 (2019: £813,590). Total funds at 31 December 2020 were £11,531,407 (2019: £11,723,964) divided between unrestricted, restricted and endowment funds.

Of that total, £8,164,887 (2019 £8,025,458) is invested in various forms, and £2,869,478 (2019: £2,855,067) had been lent to member charities.

Net expenditure before investment gains was £84,577 in respect of unrestricted funds, £279,531 in respect of restricted funds and there was income of £3,321 in respect of endowment funds.

Total income of £768,397 was down 5.5% primarily as a result of lower dividends receivable from investments. Dividend yields on investments have reduced in 2020 due to the COVID-19 pandemic. Gifts, donations and legacies were 4.7% higher than last year and members’ subscriptions 5.2% higher than last year. Income from other services such as seminar and conference fees was lower since the majority of events were cancelled during the year due to the pandemic.

Total expenditure of £1,129,184 was £167,475 higher than the previous year mainly due to an increase in grants made to members. 2020 has been a difficult year for many members and in response the trustees decided to make additional funds available for grants.

Unrestricted funds

Unrestricted funds are those available for any purpose consistent with the Association’s objectives. Income from all sources amounted to £647,507 (2019: £670,489); 52% was derived from members’ subscriptions, 16% from investment income and the balance raised through donations, services to member charities, sale of publications and fundraising. Bearing in mind that many of

our members only have a small number of homes under management and may therefore find it particularly difficult to meet increased costs, the Association continues to maintain members’ subscriptions at a modest level.

Reserves are held to ensure continuity of service to members and to provide investment income. A designated investment fund which amounted to £1,894,948 on 31 December 2020 is held to generate income to cover the shortfall between members’ subscriptions and the annual cost of running the Association. Members’ subscriptions cover only about half the cost of the Association’s charitable activities.

A designated terminal reserve fund of £370,000, equal to about half the total annual expenditure, is held to cover the cost of any liabilities arising in the event of the termination of activities.

As reported in 2018, the Board approved a five-year strategic plan to improve the support provided to member charities and to develop services. A strategic plan reserve of £708,000 was allocated to fund this plan. During the year £80,541 (previous year 2019: £23,294) of the reserve was utilised, leaving a reserve balance of £604,165 on 31 December 2020.

The remainder of the unrestricted funds after allowing for those invested in tangible fixed assets constitute the Association’s free reserves, which amounted to £470,471 (2019: £484,650) which is less than a full year’s running costs.

Restricted funds

Income from all sources amounted to £117,569 (2019: £140,463); this reduction was primarily due to a reduction in fundraising income due to the impact of the pandemic. We expect to increase this form of income in 2021 as we approach our 75th anniversary.

Restricted funds are held to provide loans and grants to member charities for almshouse improvement or development. As set out in

16 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Note 9 to the financial statements, some of

these funds are for specified almshouses, groups of almshouses and regions, with the remainder available to all members. Endowment funds are held to provide income for specific purposes.

Loans and grants are provided to members when other sources of funding have been fully explored. The policy is that loans are interest free and generally repayable over a 10-year period, and grants of up to £25,000 are reserved for those charities that lack the resources to undertake a loan. A key objective of the Association’s fundraising campaign is to increase the level of restricted funds from which loans and grants are made.

In 2020, £535,120 (2019: £664,101) was advanced in new loans and at the end of the year the total value of loans being provided was £2,869,478. This figure includes an administration fee of 5% which is added to offset some of the Association’s costs. The total grants made in 2020 were £338,005 compared with £143,129 in 2019, an increase of 136%.

Investment policy and performance

During the year Waverton Investment Management Limited managed the investment funds for the charity, as a single amalgamated fund comprising the invested portion of unrestricted, restricted and endowment funds. During the year there were significant movements in the market value of investments due to the pandemic, however overall, there was an investment gain of £168,230 or 2.3% for the year. Details are shown in Note 6.

short term cash deposits to the extent that they are required for loans included in the Association’s forward programme. Of the total unutilised restricted funds of £3,484,886 as at 31 December 2020, approximately 4% was held in the form of cash deposits and the remainder held either in managed funds or in a discretionary managed portfolio.

As a result of the COVID-19 outbreak the financial markets continue to be volatile. We pursue a balanced investment strategy which has helped to mitigate losses in this area. The Association has strategies in place to manage its short-term cash needs and takes a long-term view of its investments, and so does not believe that there is any risk to the sustainability of the organisation arising from current stock market fluctuations.

Plans for future periods

In response to the COVID-19 outbreak, the Association continues to proactively review its activities to ensure continued support to members.

The trustees have reviewed the risks that COVID-19 poses to the charity and concluded that the charity is in a strong financial and operational position and can continue to support almshouses now and for the foreseeable future.

Simon Ling FCA, Honorary Treasurer of The Almshouse Association

Investments also generated £203,823 of dividend and other distributable income, which was £41,393 less than the previous year due to a reduction in dividend yields on investments, mainly due to the pandemic.

Restricted funds not yet allocated to interest free loans for members are held as investments or on

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 17

FINANCIAL STATEMENTS

Statement of Financial Activities (SOFA) for year ended 31 December 2020, incorporating an Income and Expenditure Account.

Notes Unrestricted Restricted Endowment Total Total funds funds funds 2020 2019 £ £ £ £ £ Income and endowments from: 2 Gifts, donations and legacies 139,478 15,500 3,321 158,299 151,229 Charitable activities 405,544 - - 405,544 414,102 Investments 102,485 102,069 - 204,554 248,150 Total 647,507 117,569 3,321 768,397 813,481 Expenditure on: 3 Raising funds 116,956 36,270 - 153,226 152,463 Charitable activities 615,128 360,830 - 975,958 809,246 Total 732,084 397,100 - 1,129,184 961,709 Net (expenditure)/income before investment gains (84,577) (279,531) 3,321 (360,787) (148,228) Net gains on investments 6 1,658 109,013 57,559 168,230 813,590 Net (expenditure)/income and net movement in funds (82,919) (170,518) 60,880 (192,557) 665,362 Reconciliation of funds Total fund balances brought forward at 1 January 3,469,559 6,524,882 1,729,523 11,723,964 11,058,602 Fund balances carried forward at 31 December 10 3,386,640 6,354,364 1,790,403 11,531,407 11,723,964

The comparative Statement of Financial Activities is shown in Note 13 to the accounts.

The total income for Companies Act purposes excludes £3,321 (2019: £2,529) income on endowment funds which is an increase in endowment capital.

The accompanying notes form an integral part of these financial statements. There are no recognised gains and losses other than those stated above.

All the income and expenditure is from continuing operations.

18 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Balance Sheet As at 31 December 2020


Notes
£
Fixed assets
Tangible assets
5
Investments
6
Total fixed assets
Current assets
Loans to member charities -
10
Recoverable within one year
Recoverable after one year
Other debtors
7
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due within one year 8
Net current assets
Total assets less current liabilities
Total net assets
The funds of the charity:
9, 10
Endowment funds
Restricted funds
Total restricted funds
Unrestricted funds
General
Designated:
Investment reserve
Terminal reserve
Strategic plan reserve
Total unrestricted funds
Total charity funds		 2020
2019
£
47,056
36,913
8,164,887
8,025,458
8,211,943
8,062,371
477,227
455,741
2,392,251
2,399,326
334,602
144,312
530,661
761,314
3,734,741
3,760,693
(415,277)
(99,100)
3,319,464
3,661,593
11,531,407
11,723,964
11,531,407
11,723,964
1,790,403
1,729,523
6,354,364
6,524,882
8,144,767
8,254,405
517,527
521,563
1,894,948
1,893,290
370,000
370,000
604,165
684,706
3,386,640
3,469,559
11,531,407
11,723,964

The accompanying notes form an integral part of these financial statements. The financial statements on pages 18 to 33 were approved by the Board on 3 March 2021.

Mrs E Fathi (Chair)

Registered company number 0467821

The Almshouse Association

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 19

FINANCIAL STATEMENTS

Statement of Cash Flows

For the year ended 31 December 2020 2020 2019 £ £ Cash flows from operating activities Net cash used in operating activities (429,203) (715,102) Cash flows from investing activities Dividends and interest from investments 204,554 248,150 Purchase of property, plant and equipment (20,394) (27,286) New loans made (535,120) (664,101) Repayments of loans made 520,709 464,738 Proceeds from sale of investments 1,255,584 5,320,357 Purchase of investments (1,250,156) (5,024,198) Net cash provided by investing activities 175,177 317,660 Analysis of changes in net cash Change in cash and cash equivalents in the reporting period (254,026) (397,442) Cash and cash equivalents at the beginning of the reporting period 865,539 1,262,981 Cash and cash equivalents at the end of the reporting period 611,513 865,539 Reconciliation of net income to net cash flow from operating activities Net (expenditure)/income for the reporting period (as per the statement of financial activities) (192,557) 665,362 Adjustments for: Depreciation charges 10,251 15,543 Gains on investments (168,230) (813,590) Dividends and interest from investments (204,554) (248,150) Increase in debtors (190,290) (21,377) Increase/(decrease) in creditors 316,177 (312,890) Net cash used in operating activities (429,203) (715,102) Analysis of cash and cash equivalents Cash at bank and in hand 530,661 761,314 Cash held for investment 80,852 104,225 Total cash and cash equivalents 611,513 865,539

20 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

ACCOUNTING POLICIES

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2020 under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or in the notes. They have been prepared in accordance with 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates. The full impact of the global coronavirus pandemic on future accounting periods is unknown. It is therefore not currently possible to evaluate all the potential implications for the charity's activities, beneficiaries, funders, suppliers and the wider economy. Estimates used in the accounts, particularly with respect to the value of listed investments and investment properties (see note 6) are subject to a greater degree of uncertainty and volatility. As set out in these accounting policies under 'going concern', the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriative for the charity to continue to prepare its accounts on the going concern basis. The items in the financial statements where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect of a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above. With regard to the next accounting period, the year ending 31 December 2021, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the Investment Policy and the Performance and the Statement of Risk sections of this Annual Report 2020 of The Almshouse Association for more information).

Fund accounting

General unrestricted funds are available for use at the discretion of the Executive Committee in furtherance of the general objectives of the Association.

Designated unrestricted funds relate to amounts set aside by the Board within unrestricted funds for a particular purpose. Details of these designated reserves are set out in the financial statements.

Restricted funds are funds subject to restrictive conditions imposed by donors or by the nature of the appeal. The purpose and use of the restricted funds are set out in the financial statements.

Endowment funds are permanent capital funds where there is no power to convert into income. The income from them is classified as investment income, and as unrestricted or restricted depending upon the terms of the endowment.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income and the amount can be measured reliably and it is probable that the income will be received. Income is deferred

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 21

ACCOUNTING POLICIES (continued)

only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Income comprises donations and legacies, subscriptions, income from seminars, income from the sale of publications, interest and investment income and sundry income.

Expenditure and the basis for apportioning costs

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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 comprises the following:

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Income from other charitable activities, including membership, seminars and publications, is recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be measured reliably. It is measured at the fair value of the consideration received or receivable, excluding any discounts or rebates.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Grants payable are included in full in the statement of financial activities when approved and when the recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are apportioned on the basis of time spent by individual staff members on these activities.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, less depreciation. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of such assets on a straight line basis over their expected useful life, as follows:

22 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Listed investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above, the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Investment properties

The investment property is held for the long-term rental yields and is not occupied by the Association. Investment Properties are initially measured as cost, including related transaction costs and where applicable, borrowing costs. After initial recognition, investment properties are carried at fair value. Fair value, which has been estimated by the Trustees, is based on recent market prices and takes into account rental income and current market conditions. The valuation forms the basis for the carrying amount in the financial statements. Changes in fair values are recorded in the Statement of Financial Activities in the year in which they arise.

Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Association and the rest of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. They have been discounted to the present value of the future cash receipt where such discounting is material, with the exception of loans to member charities. As these loans fall within the exemption from discounting to present value available to public benefit entities, these loans are held at the settlement amount.

Cash at ban k

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year are disclosed as short term deposits.

Creditors

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Value Added Tax

The Association is not registered for VAT purposes and all costs and expenditure incurred are inclusive of VAT, unless otherwise indicated.

Pensions

The Association contributes to defined contribution schemes for most current employees. Contributions are recognised in the statement of financial activities when they fall due.

Stocks

No value is placed on stocks of books and publications held for distribution or resale. The cost is written off in the year of purchase and sales are included in the year of receipt.

Tax

As a charity, the Association is exempt from taxation of income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable purposes. No tax charge has arisen during the year.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 23

NOTES TO THE FINANCIAL STATEMENTS

2 Income and endowments from:

Year ended 31 December 2020 Unrestricted Restricted Endowment Total funds funds funds 2020 Gifts, donations and legacies £ £ £ £ Public fundraising 106,190 15,500 - 121,690 Members' donations 10,965 - - 10,965 Associate members' subscriptions 1,870 - - 1,870 Other voluntary income 20,453 - 3,321 23,774 139,478 15,500 3,321 158,299 Charitable activities Members' subscriptions 327,029 - - 327,029 Panel members' subscriptions 11,967 - - 11,967 Services to member charities 25,482 - - 25,482 Conference and seminar fees 4,100 - - 4,100 Sales of Gazettes and publications 23,274 - - 23,274 Rent receivable 13,692 - - 13,692 405,544 - - 405,544 Investments Dividends and distributions receivable 102,052 101,771 - 203,823 Interest receivable 433 298 - 731 102,485 102,069 - 204,554 Year ended 31 December 2019 Unrestricted Restricted Endowment Total funds funds funds 2019 Gifts, donations and legacies £ £ £ £ Public fundraising 78,770 33,823 - 112,593 Members' donations 8,121 - - 8,121 Associate members' subscriptions 1,511 - - 1,511 Other voluntary income 17,975 8,500 2,529 29,004 106,377 42,323 2,529 151,229 Charitable activities Members' subscriptions 310,896 - - 310,896 Panel members' subscriptions 7,730 - - 7,730 Services to member charities 31,624 - - 31,624 Conference and seminar fees 37,611 - - 37,611 Sales of Gazettes and publications 14,523 - - 14,523 Rent receivable 11,718 - - 11,718 414,102 - - 414,102 Investments Dividends and distributions receivable 148,146 97,070 - 245,216 Interest receivable 1,864 1,070 - 2,934 150,010 98,140 - 248,150

24 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

3 Expenditure on:

Unrestricted Restricted Total Unrestricted Restricted Total funds funds 2020 funds funds 2019 £ £ £ £ £ £ Raising funds Staff costs (Note 11) 31,636 15,487 47,123 26,774 11,474 38,248 Other direct costs 26,271 9,564 35,835 3,069 24,836 27,905 Investment management and custody fees 13,857 11,219 25,076 11,101 14,129 25,230 Support costs (Note 4) 45,192 - 45,192 61,080 - 61,080 116,956 36,270 153,226 102,024 50,439 152,463 Charitable activities Grants made - 338,005 338,005 - 143,129 143,129 Staff costs (Note 11) 230,380 - 230,380 194,121 - 194,121 Other direct costs 51,736 22,825 74,561 51,236 17,079 68,315 Support costs (Note 4) 333,012 - 333,012 403,681 - 403,681 615,128 360,830 975,958 649,038 160,208 809,246 4 Support costs Total support costs and their allocation (see Note 1) were Staff Other Total Staff Other Total costs costs 2020 costs costs 2019 £ £ £ £ £ £ Raising funds 31,290 13,902 45,192 37,162 23,918 61,080 Charitable activities 230,573 102,439 333,012 228,283 175,398 403,681 261,863 116,341 378,204 265,445 199,316 464,761 2020 2019 The above costs include: £ £ Depreciation 10,251 15,543 Legal and professional costs 8,226 7,871 Auditor's remuneration, including expenses and VAT, for auditing the financial statements: Current year 10,500 8,400 Prior year under accrual 4,593 - 5 Tangible fixed assets Freehold Furniture & property equipment Total Cost £ £ £ At 1 January 2020 118,372 109,689 228,061 Additions - 20,394 20,394 At 31 December 202 0 118,372 130,083 248,455 Depreciation At 1 January 2020 107,258 83,890 191,148 Charge for the year 4,311 5,940 10,251 At 31 December 2020 111,569 89,830 201,399 Net book values At 31 December 2019 11,114 25,799 36,913 At 31 December 2020 6,803 40,253 47,056

The Executive Committee have estimated that the freehold property has a current market value of not less than £450,000, taking into account informal professional advice and prevailing local market conditions.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 25

NOTES TO THE FINANCIAL STATEMENTS

6 Investments 2020 2019 £ £ Investments listed on a recognised stock exchange Market value on 1 January 7,321,233 6,803,802 Add: Additions at cost 1,250,156 5,024,198 Less: Disposal proceeds (1,255,584) (5,320,357) Net gain on revaluation 168,230 813,590 Market value at 31 December 7,484,035 7,321,233 Cash and settlements pending held as part of the investment portfolio 80,852 104,225 7,564,887 7,425,458 Investment Property at Valuation 600,000 600,000 Investments held 8,164,887 8,025,458 Listed investments at cost 6,596,299 6,755,833 Listed investments (worldwide) Equities 4,029,115 3,820,290 Alternatives 615,880 569,358 Diversified Investment Funds (M&G Charity Multi Asset Fund) 2,089,785 2,258,476 Fixed Income 749,255 673,109 Cash held by brokers for investment 80,852 104,225 7,564,887 7,425,458

The investment property is a dwelling house, which forms part of the Association's property at Billingbear Lodge and is let on a long-term basis. The open market value for investment purposes has been estimated by the trustees.

At 31 December 2020, the investment portfolio included the following investments which represent a material proportion of the portfolio as a whole:

Market value % of portfolio £ Diversified Investment Funds (M&G Charity Multi Asset Fund) 2,089,785 25.59% Waverton Sterling Bond Fund 'A' Inc 307,950 3.77% Waverton Asia Pacific Fund 'A' 282,127 3.46% Waverton Global Strategic Bond Fund 'A' Inc 245,370 3.01% Waverton European Capital Growth 170,587 2.09%

At 31 December 2020 and 2019, the Association was the beneficial holder of the whole of the issued shared capital (£1) of Billingbear Enterprises Limited, a dormant company.

Given the continuing effects of COVID-19 and unknown impact on the real estate market, the valuation of the investment property will remain under frequent review.

26 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

7 Other Debtors

2020 2019 £ £ Debtors 259,689 18,324 Prepayments and accrued income 74,913 125,988 334,602 144,312 8 Creditors: amounts falling due within one year 2020 2019 £ £ Trade creditors 10,682 21,312 Accruals and deferred income 391,998 70,918 Tax and Social Security 12,596 - Pension Liability - 6,870 415,277 99,100

9 Funds

Year ended 31 December 2020 Balance at Income Expenditure Investment Balance at 1 January gains 31 December 2020 and transfers 2020 £ £ £ £ £ Endowment funds CJ and EJ Melbourne Fund 327,919 3,321 - 10,913 342,153 St John's Housing Association Fund 1,081,791 - - 36,003 1,117,794 The Almshouse Christmas Fund 319,813 - - 10,643 330,456 1,729,523 3,321 - 57,559 1,790,403 Restricted funds Held for almshouse improvement generally: The Almshouse Association 2,793,143 26,016 (347,331) 12,169 2,483,997 The Thomas Groves Trust for Almshouses 373,640 48 (485) - 373,203 3,166,783 26,064 (347,816) 12,169 2,857,200 Held for specified recipients or almshouse groups 117,560 - - - 117,560 The Edward Kemp Almshouse Trust 2,337,347 63,524 (2,920) 75,299 2,473,250 The Jubilee Cottages Trust 92,925 - (300) - 92,625 The Craymer London Trust 333,133 9,354 (10,509) 11,087 343,065 The Alfred Wilson Charity for Almshouses Trust 159,417 - (25,470) - 133,947 The Almshouse Christmas Fund 3,471 9,803 (9,784) - 3,490 The Mary Joan Hawley Fund 314,246 8,823 (300) 10,458 333,227 6,524,882 117,568 (397,099) 109,013 6,354,364 Unrestricted funds General funds 521,563 647,507 (651,543) - 517,527 Designated funds: Investment reserve 1,893,290 - - 1,658 1,894,948 Terminal reserve 370,000 - - - 370,000 Strategic plan reserve 684,706 - (80,541) - 604,165 3,469,559 647,507 (732,084) 1,658 3,386,640 Total funds 11,723,964 768,396 (1,129,183) 168,230 11,531,407

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 27

NOTES TO THE FINANCIAL STATEMENTS

9 Funds (continued)

Year ended 31 December 2019 Balance at Income Expenditure Investment Balance at 1 January gains & 31 December 2019 transfers 2019 £ £ £ £ £ Endowment funds CJ and EJ Melbourne Fund 291,905 2,529 - 33,485 327,919 St John's Housing Association Fund 968,052 - - 113,739 1,081,791 The Almshouse Christmas Fund 286,306 - - 33,507 319,813 1,546,263 2,529 - 180,731 1,729,523 Restricted funds Held for almshouse improvement generally: The Almshouse Association 2,873,486 39,842 (169,766) 49,581 2,793,143 The Thomas Groves Trust for Almshouses 371,931 5,156 (3,447) - 373,640 3,245,417 44,998 (173,213) 49,581 3,166,783 Held for specified recipients or almshouse groups 74,892 43,365 (697) - 117,560 The Edward Kemp Almshouse Trust 2,107,239 29,218 (19,534) 220,424 2,337,347 The Jubilee Cottages Trust 92,499 1,285 (859) - 92,925 The Craymer London Trust 299,838 4,158 (2,780) 31,917 333,133 The Alfred Wilson Charity for Almshouses Trust 158,689 2,196 (1,468) - 159,417 The Almshouse Christmas Fund 1,619 11,337 (9,485) - 3,471 The Mary Joan Hawley Fund 281,482 3,906 (2,611) 31,469 314,246 6,261,675 140,463 (210,647) 333,391 6,524,882 Unrestricted funds General funds 1,550,664 670,489 (727,768) (971,822) 521,563 Designated funds Investment reserve 1,700,000 - - 193,290 1,893,290 Terminal reserve - - - 370,000 370,000 Strategic plan reserve - - (23,294) 708,000 684,706 3,250,664 670,489 (751,062) 299,468 3,469,559 Total funds 11,058,602 813,481 (961,709) 813,590 11,723,964

Endowment funds

The income of the CJ and EJ Melbourne Endowment Fund may be used for any purposes that are “exclusively charitable”, and is therefore classified as unrestricted.

The income of The Almshouse Christmas Fund is to be used to provide gifts at Christmas to residents of the almshouses of member charities, and unspent income is classified as a restricted fund.

The income of the St John's Housing Association Endowment Fund may be used for any purposes that are consistent with the objects of the donor, namely the accommodation and support of older people.

28 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

9 Funds (continued)

Restricted funds

The restricted funds (other than unspent income of the Christmas Fund) comprise funds held for almshouse improvements. Some of these funds are held for specified recipients or almshouse groups specified by the donor, as follows:

The Thomas Groves Trust for Almshouses is held for the benefit of almshouses and their occupants. The Edward Kemp Almshouse Trust is held for the relief of persons in hardship throughout the country with a particular preference for those in Hertford, under the amended Scheme terms agreed by the Charity Commissioners in June 2014.

The Jubilee Cottages Trust is held for the relief of poverty in the County of Suffolk, in particular by building or repairing almshouses, under the terms of a Scheme finalised by the Charity Commissioners in April 2007.

The Craymer London Trust is held for the building or repairing of almshouses in Wiltshire, under the terms of the will of Mary Evelyn London dated 28 August 1992.

The Alfred Wilson Charity for Almshouses Trust is held for the relief of poverty in the counties of Lancashire and West Yorkshire, in particular by building or repairing almshouses, under the terms of a Scheme finalised by the Charity Commissioners in December 2008.

The Mary Joan Hawley Fund is held for the benefit of almshouse charities connected with the Church of England.

Unrestricted funds

Unrestricted funds are available for any purpose appropriate to the Association's charitable objects. The Board has designated a sum of £1,894,948 to be set aside within unrestricted funds for investment to generate dividend income to subsidise member subscriptions, a sum of £370,000 to cover the cost of any liabilities arising in the event of the termination of activities and a sum of £604,165 as a Strategic plan reserve.

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 29

NOTES TO THE FINANCIAL STATEMENTS

10 Analysis of net assets by fund

Year ended 31 December 2020

Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
Tangible fixed assets 47,056 - - - 47,056
Investments 124,117 2,869,113 3,384,574 1,787,083 8,164,887
Cash and deposits 397,496 - 133,165 - 530,661
Loans to member charities (see below) - - 2,869,478 - 2,869,478
Other current assets
(excluding loans), less liabilities (51,142) - (32,853) 3,320 (80,675)
517,527 2,869,113 6,354,364 1,790,403 11,531,407
Unrealised gains included above 22,945 530,399 625,689 330,369 1,509,402
Year ended 31 December 2019
Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
Tangible fixed assets 36,913 - - - 36,913
Investments 72,376 2,947,996 3,275,563 1,729,523 8,025,458
Cash and deposits 374,237 - 387,077 - 761,314
Loans to member charities (see below) - - 2,855,067 - 2,855,067
Other current assets
(excluding loans), less liabilities 38,037 - 7,175 - 45,212
521,563 2,947,996 6,524,882 1,729,523 11,723,964
Unrealised gains included above 10,676 434,865 496,010 268,888 1,210,439
The total unrealised gains as at 31 December 2020
constitute movements on revaluation and are as follows:2020 2019
£ £
Unrealised gains included above:
On investments 968,588 669,625
On investment property 540,814 540,814
Total unrealised gains at 31 December 1,509,402 1,210,439
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 1,210,439 1,572,628
Less: in respect to disposals in the year 130,733(1,175,799)
1,341,172 396,829
Add: net gains arising on revaluation during the year 168,230 813,610
Total unrealised gains at 31 December1,509,402 1,210,439
Unrestricted funds
Unrestricted funds		 Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
47,056 - - - 47,056
124,117 2,869,113 3,384,574 1,787,083 8,164,887
397,496 - 133,165 - 530,661
- - 2,869,478 - 2,869,478
(51,142) - (32,853) 3,320 (80,675)
Unrestricted funds		 Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
47,056 - - - 47,056
124,117 2,869,113 3,384,574 1,787,083 8,164,887
397,496 - 133,165 - 530,661
- - 2,869,478 - 2,869,478
(51,142) - (32,853) 3,320 (80,675)
Unrestricted funds		 Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
47,056 - - - 47,056
124,117 2,869,113 3,384,574 1,787,083 8,164,887
397,496 - 133,165 - 530,661
- - 2,869,478 - 2,869,478
(51,142) - (32,853) 3,320 (80,675)
Unrestricted funds
517,527 2,869,113 6,354,364 1,790,403 11,531,407
22,945 530,399 625,689 330,369 1,509,402
Restricted Endowment Total
General Designated funds funds funds
£ £ £ £ £
36,913 - - - 36,913
72,376 2,947,996 3,275,563 1,729,523 8,025,458
374,237 - 387,077 - 761,314
- - 2,855,067 - 2,855,067
38,037 - 7,175 - 45,212
Unrestricted funds
521,563 2,947,996 6,524,882 1,729,523 11,723,964
10,676 434,865 496,010 268,888 1,210,439
2020 2019
£ £
968,588 669,625
540,814 540,814
1,509,402 1,210,439
1,210,439 1,572,628
130,733(1,175,799)
1,341,172 396,829
168,230 813,610
1,509,402 1,210,439

30 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

10 Analysis of net assets by fund (continued)

Loans to member charities by : The The Thomas The Edward Other Total Almshouse Groves Trust Kemp Funds Association for Almshouses Almshouses Trust £ £ £ £ £ At 1 January 2020 2,551,152 145,951 74,804 83,160 2,855,067 Loans made 510,099 - 9,271 15,750 535,120 Loans repaid (463,114) (31,395) (6,827) (19,373) (520,709) At 31 December 2020 2,598,137 114,556 77,248 79,537 2,869,478 Due within one year 417,481 33,286 8,925 17,535 477,227

Commitments

The Association was, at 31 December 2020, committed to make available to the trustees of member almshouse charities loans of £495,607 (2019: £253,235).

11 Employees and employee costs 2020 2019 £ £ Salaries 455,007 418,760 Social security costs 40,855 40,075 Employer's pension contributions 38,200 38,979 534,062 497,814 Full-time equivalent number of employees 10.2 9.3 Number Employee costs The above costs were allocated to: 2020 2019 2020 2019 £ £ Raising funds 0.9 0.6 47,123 38,248 Costs of charitable activities 4.4 4.2 230,380 194,121 Support costs (Note 4) 4.9 4.5 256,559 265,455 10.2 9.3 534,062 497,814

An average of 13 (2019:12) persons were employed during the year.

One had remuneration in the range £80,000 to £90,000 (2019: One) in the year and the Association contributed £8,843 (2019: £8,670) towards a pension scheme for that employee. The trustees do not receive any remuneration.

The total cost of employing key management in the period amounted to £311,952 (2019: £324,291). Travel expenses for meetings of £141 (2019: £2,844) were reimbursed to two (2019: three) trustees.

Pension fund contributions

All current employees are members of defined contribution schemes and contributions are accounted for when paid.

Pension scheme deficits

Employees of the Association had previously contributed to the Social Housing Pension Scheme (Defined Benefit) and Pension Trusts

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 31

NOTES TO THE FINANCIAL STATEMENTS

12 - Related Parties

During 2020, five (2019: five) trustees of the Association were also trustees of The Leonard Hackett Memorial Trust, which acted as sole trustee of three (2019: three) member almshouse charities.

These have loans and other advances from the Association, as follows:

2020 2019 £ £ Freemen's Almshouses (230212) - 2,525 The Charity of Edmund Sawyer (228798) 3,045 29,194 3,045 31,719

The names of the directors of The Leonard Hackett Memorial Trust, who are all also members of the Executive Committee, are listed on the inside cover of this Annual Report.

During the year, the trusteeship of Freemen's Almshouses ceased to be managed by The Leonard Hackett Memorial Trust. The trusteeship has been transferred to new trustees.

At the end of the year The Leonard Hackett Memorial Trust had an outstanding advance of £18,420 (2019: £3,684).

The Association provided management services to The Leonard Hackett Memorial Trust

and The Charity of Edmund Sawyer. During the year the Association charged £2,850 (2019: £3,682) to these charities towards its administration costs.

Members of the Board of Trustees are connected with member almshouse charities but do not participate in decisions concerning those charities.

During the year, the Association paid £2,147 in respect of Charity Trustee Assurance (2019: £1,952).

Mrs M A Stewart is a trustee of Frances Darlington Charity which has an interest free loan from the Association amounting to £5,250 (2019: £10,500).

Mr A Sedgwick is a trustee of the Lady Anne Windsor Charity which has an interest free loan from the Association amounting to £23,100 (2019: £27,300).

32 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

13 Comparative Statement of Financial Activities (SOFA)

Statement of Financial Activities (SOFA) for year ended 31 December 2019, incorporating an Income and Expenditure Account

Notes Unrestricted Restricted Endowment Total funds funds funds 2019 £ £ £ £ Income and endowments from: 2 Gifts, donations and legacies 106,377 42,323 2,529 151,229 Charitable activities 414,102 - - 414,102 Investments 150,010 98,140 - 248,150 Total 670,489 140,463 2,529 813,481 Expenditure on: 3 Raising funds 102,024 50,439 - 152,463 Charitable activities 649,038 160,208 - 809,246 Total 751,062 210,647 - 961,709 Net (expenditure)/income before investment gains (80,573) (70,184) 2,529 (148,228) Net gains on investments 6 299,468 333,391 180,731 813,590 Net movement in funds 218,895 263,207 183,260 665,362 Reconciliation of funds Total fund balances brought forward at 1 January 3,250,664 6,261,675 1,546,263 11,058,602 Fund balances carried forward at 31 Decembe r 9 3,469,559 6,524,882 1,729,523 11,723,964

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 33

AUDITOR’S REPORT

Independent auditor’s report to the members of The Almshouse Association

Opinion

We have audited the financial statements of The Almshouse Association (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: l give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its income and expenditure for the year then ended; l have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and l have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 charitable company’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 other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report and financial statements. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company 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 Companies Act 2006 requires us to report to you if, in our opinion:

34 | THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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 as follows:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements for charitable companies operating within this sector, through our own experience as well as through discussion with management and those

charged with governance and inspection of regulatory and legal correspondence. We reviewed policies and procedures regarding compliance with laws and regulation and remained alert throughout our audit to any indications of non-compliance, with areas of highest risk communicated to all members of the audit team.

The charitable company is subject to laws and regulations directly affecting the financial statements including financial reporting legislation and taxation legislation which we assessed compliance with as part of our review of related financial statement items. This includes the Charities Act 2011 and Companies Act 2006 as referenced above. Other laws and regulations of which compliance was considered higher risk (as noncompliance could lead to material misstatement of the financial statements) included anti-bribery regulations, employment law, health and safety legislation and data protection regulations.

We considered areas which could be most susceptible to fraud or misstatement, which included the use of journals and suspense accounts, management override of controls and our audit work has been performed to ensure that these areas have been tested on a sample basis, including the use of data analytics to review for unusual transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected a material misstatement within the financial statements while performing our audit in accordance with applicable audit standards. Irregularities may involve a collusion, forgery, intentional omissions, misrepresentations or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities

This description forms part of our auditor’s report. This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Edward Finch (Senior Statutory Auditor)

For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street, London EC2V 6DL

THE ALMSHOUSE ASSOCIATION ANNUAL REPORT 2020 | 35