The Leathersellers, Barnet Charity Annual Report and Accounts For the year ended 31 December 2023 Charity Registration Number 247986 Contents Reports Legal and administrative information Report of the Trustees Independent examinerfs report Attounts Statement of Financial Activities Balance Sheet Note5 to the accounts 9-19 Tlie Leaiheisellers. Barnel Cliarily Legal and administrative information Trustees: Mr M T Berman Chairman INominativeTru5tee until 15 December 20241 Mr M J Bradly Russell {Nominative Trustee until 9 December 20271 Mr M G Williams {Ex-Officio Trustee (appointed 20 July 20221 Mr RN Tustin8 {Ex-Officio Trustee appointed 19 July 20231 MrRWPeart (Nominative Trustee until 15 December 20241 Mr C J V Williams (Nominative Trustee appointed 13 December 20221 Mrs E J Womersley Iresigned as Trustee on IO, April 20231 Ms C J Lennon (Ex-officio Trustee until 19, July 20231 Address: 7 St. Helen's Place London EC3A 6AB Management Company: Harrison Housin8 46 St James's Gardens London WII 4RQ Independent Examiner: MHA MHA House Chartercourt Swansea Enterprise Park Swansea SA7 9FS Principal Banker: HSBC Bank plc 1-3 Bishopgate London EC2N 3AQ Solititor: Farrer & Co LLP 66 Lincoln's Inn Fields London WC2A 3LH The Leathersellers, Barnet Charity I Report of the Trustees For the year ended 31 December 2023 The Trustees present their annual report and accounts of The Leathersellers. Barnet Charity for the year ended 31 December 2023. The accounts have been prepared in accordance with the accounting policies set out on pages 9 to 11 of the attached accounts and comply with the Charity's trust deed, the Charities Act 2011 and the Statement of Recommended Practice-. Accounting and Reporting applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kin8dom and Republic of Ireland IFRS 102). Structurei governance and rnanagement The Leathersellers, Barnet Charity is a registered Charity. number 247986, 8overned by a Scheme approved by the Charity Commission dated 25 June 2007. The Trustees are appointed by the Court of Assistants. the controlling body of The Leathersellers. Company. The Master and Second Warden of the Leathersellers. Company are Ex Officio Trustees and are elected to serve for one year commencing on or about the 19 July each year. The other Trustees are appointed for an initial period of four years which can be extended as the Leathersellers. Company determines. The Trust Deed was amended on 26, April 2023 to allow for the number of Nominative Trustees to vary. Prior to that date the Trust Deed allowed for 4 nominatbve trustees though the Charity had 5 nominative Trustees as a result of an unintentional mistake for the short period from 13 December 2022 to 6th April 2023. This was corrected by the amendment of the Deed on 26 April 2023 referred to above. The current Trustees of the Charity are shown on page l. Each trustee takes responsibility for monitoring the Charity's activities and consideration is given to the skills mix of the Trustees to ensure that the Board of Trustees has all the necessary expertise required to contribute fully to the Charity's operation5 and development. Periodic briefings and courses are also provided for Trustees. No trustee received any remuneration from the Charity during the year norwere any out of pocket travellin8 expenses reimbursed lo the Trustees. No trustee had any beneficial interest in aiiy conlracl with the Charity in the year. Harrison Housin8 who themselves are an almshouse charity manage the Barnet properties on a day-to-day basis. Risk Management The Trustees have reviewed the Risk Register which seeks to identify the significant risks to which the Charity is exposed. Areas considered include the daily operations of the Charity. its investments and its finances. The Trustees seek to mitigate identified risks by ensuring controls exist over the financial system5 and safe custody of the Charity's assets and investments. The Trustees believe that by monitoring the reserves of the Charity over the long term. the stability of the re5erve5 provides assurance that they have established effective means to mitigate material ri5k5. Purpose. Objectives and activities for the public benefit The Charity's primary purpose. as per its Scheme, is to provide. maintain and manage accommodation for people who are in need and to provide forthe general well-being of the residents. The Trustees confirm that The Leathersellers. Barnet Charity 2 Report of the Trustees For the year ended 31 December2023 they have considered the Charity Cornmi55ion's general guidance on public benefit when planning the activities of the Charity and believe that the Charitvs activities provide a clear public benefit. Achievements during the year The Charity continues to provide almshouse accommodation in Barnet comprising 22 flats, five of which can accommodate couples with ihe other seventeen suitable for single occupancy. The occupancy rate for the year was 97.6%12022:ICrfJ%I. Investment income was comparable with the prior year desplte difficult market conditions and residents contributions increased by almost 6%. The residents at Leathersellers Close appear to be happy and are highly supportive of each other with the Scheme Manager playing a crucial role in providing them with help and support over a range of matters affecting their daily lives. Flnanclal Revlew Total income for 2023 was £240.193 compared to the previous year when income from the same sources totalled £233,141. Two flats were void in the year for a short period. The occupancy rate remained high at 97.6%. Investment income for 2023 was £34.020 showing an decrease of£4.327 over the income for 2022. Some of the decrease resulted from a part disposal of the M&G investments in February 2023. Expenditure increased by 25.5% year on year. There is an element of cost inflation. particularly in regard to utility charge5 and labour-intensive services such as cleaning and grounds maintenance. Cyclical works con515ted of remedial work to parapet walls and associated repairs1£33.8321. The budget was for E81,072, but rewiring works and cyclical decoration have been delayed. £50.0(X) was transferred to the designated fund to pay for these works in the future. An analysis of repairs is shown in note 4 on page 12. The 5urplu5 for the year on General Funds before transfers was £34.83412022= £44.7041- The Trustees approved a transfer of £50,0￿12022= £75.0001 to the Extraordinary Repairs Fund leaving a deficit of £15.116 before an investment gain of £3.39012022: loss of £5.3041. The net movement in General Funds for the year was a deficit of £11.776 (2022- £35,599). The General Fund stood at £179.837 {2022: E191.6131 at the year end. The Extraordinary Repair Fund is held for future major repairs to the fabric of the buildings and expenditure in year from this fund was £33.832 {2022: E2.1071. The value of the fund at the end of the year was £272,630 12022: £258.4191 after including the transfer of £50.(NJO from General Funds. The value ofthe Permanent Endowment Fund started the yearat £534.608 and grew by £19.116 due to the performance of the investments. The year end fund was £553,724. Income from the fund 15 used for the well-being of the residents and the capital of the Permanent Endowment must be held indefinitely by the Charity. The Leathersellers, Barnet Charity 3 Report of the Trustee5 For the year ended 31 Oecember 2023 Reserve5 Policy of the Charity It IS the policy of the Trustees to retain sufficient general reserves to allow lil the unhindered immediate operations of the Charity in respett of it5 principal objects. lill the enhancement of common facilities and liiil the refurbishment of the kitchens and bathrooms in the flats as vacancies permit. The Trustees have examined the requirement for free reserves i.e. those unrestricled funds not invested in tangible fixed assets, designated for specific purposes or othenvise committed. The Trustees consider that, given the nature of the Charity's work. the level of free reserves should be equivalent to at least three Months, expenditure on charitable objects at any one time. The Trustees are of the opinion that this provides Sufficient flexibility to cover temporary shortfalls in incoming resources due to timing differences in income flows, adequate working capital to cover core costs. and will allow the Charity to cope and respond to unforeseen emergencies whilst specific action plans are implemented. The actual level of free reseNes 15 £77.32812022= £86,880} which is in excess of the required reserrfes policy level. Long term reserves to fund major repairs and refurbishment to the premises occupied by the Charity are held in the Extraordinary Repair Fund. This is shown as the Designated Fund on the Balance Sheet. Investment Pollcy There are no restrictions on the Charity's powers to invest. The Trustee5 have set an investment strategy consistent with specific requirements across the Funds held. Quoted Investments totalled £774,06212022: £584.1901 at year end market value, allocated as £553,727 12022: £397,847) in Pemianent Endowment Funds and £220,33912022= É186.3431 in Designated Funds. 55% of funds are invested in M&G Charifund Income units and M&G Charifund Accumulation Linits and the rest in CCLA COIF funds. Statement of Trustee's responsibllities Charity Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that period. In preparing accounts which give a true and fair view, the Trustees are required to: select suitable accounting policies and then apply them consistently- make judgments and estimate5 that are reasonable and prudent.. state whether applicable accounting Standards and statements of ￿¢0mmended practlce have boen followed, subject to any departures disclosed and explained in the accounts: prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue operation. The Trustees are responsible for keeping properactounting recordswhich disclose with reasonable accuracy. at any time, the financial position of the Charity and whith enable them to ensure that the accounts comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees have reviewed and updated their 10-year forecasts and remain satlsfied that the forecasts demonstrate the Charitws ability to continue normal operations for the foreseeable future. The Leathersellers, Barnet Charity 4 Report of the Trustees For the year ended 31 December2023 The Trustees have every reason to be confident that the Charity should continue to operate as a going concern for the foreseeable future. Signed on behalf of the Trustees: Trustee Approved by the Trustees on: 20?LP The Leathersellers. Barnet Charity 5 Independent examinerfs report Independent Examinerfs Report to the Tru5tee5 of The Leathersellerg Bamet Charity I report to ihe charity trustees on my examination of the accounts of the charity for the year ended 31 December 2023 which are set outon pages7 to 18. Responsibilities and basis of report As the charity's trustees you are responsible for the prepaiation of the accounts in accordance with the requirements of the Charities Act 2011 {'the AcYI- I report in respect of my examination of the charl￿$ accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under settion 14515llb) of the Act. Independent exarninerfs statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respect of the charity as required by section 130 of the Act- or the accounts do not accord with those records- or the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2￿8 other than any requirement that the account5 give a 'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Rachel Doyle MHA MHA House Charter Court Swansea Enterprise Park Swansea SA7 9FS MPIA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC3123131- The Leathersellers. Barnet Charity 6 Statement of Financial Activities for the year to 31 December 2023 2023 2022 Unresiricted Oesignated Endowment Total Toial nds funds funds funds funds Note lrttomè and Endowments Investrneni Income 34.020 206.173 34.020 206.173 38,347 194,794 Residents contributions Total In VJ c c £ rLS Notes to the accounts for the year ended 31 December 2023 15 Fund5 Reconciliation {continued) Extraordinary Repair Fund The Trustees maintain an Extraordinary Repair Fund as required under the Trust Deed for the extraordinary repair, cyclical repairs. improvement or rebuilding of the homes and the other property of the Charity. The Trustees keep the size of the fund under review in the light of the demands which may be made upon the fund. During the year ended 31 December 2023 £50,00012022.. £75,Cthl was transferred into this fund in line with future forecast expenditure to 2030. Repairs costing £33,832 12022.. £2,107) carried out durin8 the year were chargeable to the Extraordinary Repair Fund. Unrealised investment losses relating to this fund were E5.38412022= EI.956). The value of the fund at 31 December 2023 was £272,631 {2022- £258,419). Endowment Funds Income from the following permanent endowments are able to be used by the Charity in pursuance of itsgeneral charitable objectives. Unrealised gains or losseson the value of the endowments are retained in the relevant fund. In July 1984 the Charity Commission approved the transfer to the Leathersellers. Barnet Charities of one sixth of the pemianent endowment and accumulated income of the C J Coverley Trust amounting to £1,397. In April 1990 the Commission approved the transfer of £4.713 from the capital and accumulated income of the Charity of James Bunce. Under the same Scheme £1.211 of the capital and accumulated income of the Charity for the benefit of the churchwardens of Otterden was transferred and the related incorne 15 now paid to the Leathersellers Barnet Charitie5. In May 2004 a transfer of investments representing the Endowments and accumulated General Funds of the Leathersellers. Company Benevolent Fund (Charity Registration Number 2479871 at values of £63.016 and £26.789 respectively were made to the Leathersellerg Bamet Charities under the Charity Commission agreement of 25 March 2CK)4. iv. In Oecember 2(KJ6 3 transfer ol investments representing 35% of the endowment5 of the Ann Elliott and Others Trust (Charity Re8lStration Number 2558841 at a value of £471,619 was made Lbnder a Charity Commission Scheme dated 6 November 2(K$6. Llnked Charities The Leathersellers, Barnet Charity has the following linked charities: Anne Elliot Barnet Almshouses Elizabeth Grasvenor Iotherwise Gravenerl James Bunce for Almspeople John Sudbury Nissen Trust The Leathersellers, Barnet Charity 18