QUAKER HOUSING TRUST (A Company Limited By Guarantee)
(Company No.: 924311) (Charity No.: 254704)
REPORT & FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
MYRUS SMITH Chartered Accountants
Norman House, 8 Burnell Road, Sutton, Surrey. SM1 4BW
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
(Company No.: 924311) (Charity No.: 254704)
REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
CONTENTS
| Legal and administrative details | 1 |
|---|---|
| Report of the Council of Management | 2 - 5 |
| Independent Auditor’s Report | 6 - 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 – 19 |
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
The trustee directors, known as Council of Management, present their annual report and the audited financial statements for the year ended 31 December 2022.
Reference and administrative details, its trustees and advisers
Charity number: 254704 Company number: 00924311 Registered office: Friends House, 173 Euston Road, London NW1 2BJ Clerk: Mark Bitel Treasurer: David Hickok Secretary: Jennifer Allott (from February 2022) Bankers: CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ Solicitors: CMS, 78 Cannon St, London EC4N 6AF
Auditors: Myrus Smith, Norman House, 8 Burnell Road, Sutton, Surrey SM1 4B
Directors and trustees
The directors of the charitable company (the charity) are its trustees for the purposes of charity law and throughout this report are collectively referred to as the Council of Management. The trustees who served as members of the Council of Management during the year and up to the date of this report are as follows:
Martin Appleton Bill Bewley Mark Bitel Robin Fishwick Morayo Fagborun-Bennett Wendy Gerard Beverley Goddard (appointed April 2022) Oli Griffiths (released April 2022) Mary Hammond David Hickok Rici Marshall Cross (appointed April 2022) Peter Ranken Peter Rice
Staff
The work of Quaker Housing Trust is serviced on a part-time basis by a member of Britain Yearly Meeting staff based in Quaker Peace & Social Witness, who acts as secretary and administrator.
1
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
REPORT OF THE COUNCIL OF MANAGEMENT
Structure, Governance and Management
Governing Document
Quaker Housing Trust is a charitable company limited by guarantee, governed by its Memorandum and Articles of Association dated 9 November 1967. It was incorporated on 7 December 1967 under company number 924311. It is registered as a charity with the Charity Commission. Its members are co-terminus with the Council of Management, each of whom agree to contribute £1 in the event of the charity winding up. New Articles of Association were adopted in December 2012: these make no change to the original Objects but update the Articles and formalise the use of the Quaker Business Method by Council of Management.
Appointment of Trustees
Council of Management consists of between seven and twelve members of the Religious Society of Friends (Quakers), appointed by Meeting for Sufferings of Yearly Meeting of the Religious Society of Friends (Quakers) in Britain (Religious Society of Friends).
They are appointed for terms of up to three years by Meeting for Sufferings. Names are submitted by its Central Nominations Committee, to form the Council of Management. Appointments run from the rise of the annual retirement meeting at which terms of membership begin and end. In 2022 this was the Council of Management meeting on Saturday 23[rd] April.
Trustee induction and training
The induction materials for Trustees include, in addition to the Memorandum and Articles of Association, the committee and decision-making processes, and recent financial performance of the charity, details of the history and purpose, priorities, and organisation of QHT and an outline of the responsibility for trustees of any charity and those specifically relating to QHT.
At least every three years one of our meetings includes a training session in the basics of charity trusteeship and elements specific to this body.
Organisation
The Council of Management administers the charity. All decisions about loans and grants to applicant projects, and about policy matters are made by the full Council of Management which meets five times a year.
The Council of Management appoints a clerk, assistant clerk and trustee treasurer from amongst their number, using the Quaker method of nominations.
The secretary/administrator, who is an employee of Britain Yearly Meeting, manages the day-to-day operations of the charity. The cost of this secretarial support has been paid by Britain Yearly Meeting in the year as a reflection of the Yearly Meeting's concern for housing issues in its corporate work.
The Council of Management appoints a freelance consultant as non-trustee assistant treasurer to keep financial records and financial management information, and to prepare the draft annual accounts.
Risk management
Risk assessment is a continual process which we bear in mind throughout the year, as well as reviewing the risks and controls annually. We are satisfied that the major risks to which the work of QHT is exposed, in particular, those related to the operations and finances of the Trust, have been identified and that systems are in place to mitigate QHT's exposure to such risks.
We continue to be a conduit through which Friends’ money and activity can be turned into practical help for social housing projects. These in turn can transform vulnerable peoples’ lives by providing them with a safe place to live.
It is part of the ethos of Quaker Housing Trust that to achieve our objectives we disburse whatever funds are currently available to us at our application meetings. Our pattern of expenditure on loans and grants has continued to be in excess of annual income through donations, which reflects the success at putting Quaker money actively to work.
2
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
REPORT OF THE COUNCIL OF MANAGEMENT
/continued
The activity of the Trust has always been thus, and we have in place a strategy to ensure continuation of the charity.
Council of Management have a risk management strategy which comprises:
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an annual review of the risks the charity may face; and
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the establishment of systems and procedures to mitigate those risks identified in the plan; and
-
the implementation of procedures designed to minimise any potential effect upon the charity should those risks materialise.
We are aware of possible risks to our charitable funds at a time when the projects we help are still facing increasing difficulties in obtaining revenue and capital funds.
Objectives and Activities
Quaker Housing Trust was formed in 1967 in response to Friends' concern about the provision of adequate and appropriate housing. Our work is a practical expression of Friends’ concern about the needs of badly housed, homeless and vulnerable people in Britain. Independent of the Britain Yearly Meeting funds, Quaker Housing Trust is a channel whereby Friends may give (and in the past also lend) money for such provision.
The Trust makes grants and interest free loans to charitable organisations meeting a real housing need. We require them to be providing good quality, appropriate accommodation at a rent which low income occupants can genuinely afford.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the Trust’s aims and objectives, and in planning future activities and setting grant and loan making policy for the future year.
Achievements and Performance
In 2022 we reviewed our grant giving policy, seeking to ensure our limited funds are targeted to projects which reflect our housing concern. Following discernment, we agreed the following paragraph outlining our priorities for award giving.
Quakers have long supported housing justice. Finding a safe, comfortable, and affordable home challenges many people in Britain. Our Quaker testimony of equality means we believe everyone should have access to quality housing. We support charities which provide homes for people who have a specific housing need or are at points of transition in their lives. Examples of this need might be people seeking asylum, recovering from addiction, leaving prison, or moving from domestic abuse. Aligning with our Quaker testimony of sustainability, we expect housing projects which we support to be highly energy efficient to address the climate crisis and reduce fuel poverty. Until the end of 2024, we are particularly interested in projects from areas geographically underrepresented in our previous grant applications (Wales and the East of England) and minoritised communities. Our aim is to use our funding to create homes. We look to fund projects which meet a real housing need and where our funding makes a real difference.
In reviewing our grant giving policy, we also identified a need to support Quaker Meeting which have surplus assets and wish to consider turning these into social housing. We developed a new grant scheme, the Quaker Asset Feasibility Grants which allow Area Meeting to apply for up to £6000 to support work looking at the feasibility of transforming Quaker assets into social housing. During the year, we consulted with Quaker meetings on the design of this grant programme.
The projects offered and given loans and/or grants in 2022 were:
The Amy Temple Charity , which provides almshouses in Kent, was granted £15,000 from the Audrey Deacon legacy for energy efficiency work including the installation of solar panels and batteries on seven almshouses.
St Anne’s Hostel in Birmingham was awarded a grant of £5100 to carry out feasibility work and reports required to gain planning permission for the development of move-on accommodation.
3
QUAKER HOUSING TRUST (A Company Limited By Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT
/continued
Common Ground Against Homelessness in Edinburgh were awarded a grant of £25,000 and a £24,829 interest free loan to support the renovation and refurbishment of a property in Edinburgh to create nine new permanent homes for homeless men with high level support needs.
Open Door North East were awarded a £20,000 grant and a £30,000 loan to support the purchase of a house to accommodate refugees and asylum seekers in Middlesbrough.
Rooted in Homes were awarded a grant of up to £6000 to carry out feasibility work to create a Masterplan for the creation of affordable homes in Bradford.
Street Connect Glasgow were awarded a £10,000 grant and a loan of £15,000 for the purchase of a twobedroom flat for accommodation for individuals affected by drug and alcohol addictions.
Waltham Forest Churches Night Shelter were awarded a grant of £25,000 for the purchase of a property for six self-contained unit for people who have previously experienced homelessness.
Financial Review
Review of grants and loans made
All decisions about loans and grants are made by the full Council of Management which met five times in 2022. Applications are actively encouraged from suitable charities, and during the year we paid grants and/or loans totalling £39,047 to social housing projects as detailed above.
Finances
The main financial transactions during the year consisted of loans and grants.
The major sources of income were gifts and donations of £62,083 and investment income & bank interest £2096.
Quaker Housing Trust's financial position at the balance sheet date is sound. The assets of each of the funds are more than adequate to cover loans and grants already authorised, and further loans and grants will be paid in the following year within the level of available resources.
Investment powers and policy
The company has powers to invest monies not immediately required for its purposes in such investments, securities or property as may be thought fit. We currently have only the Endowment Fund investments, which continue to be held in a Fidelity Fund Network account in the name of Quaker Housing Trust.
Reserves Policy
The spirit and ethos of the founding purposes of Quaker Housing Trust is to make available the maximum funds for the work of the charity. To that end Trustees set aside only sufficient funds for one year’s running costs.
Trustees also hold in the cash reserves sufficient funds for one year’s running costs.
Plans for future periods
Quaker Housing Trust is a practical expression of the long-standing Quaker concern about housing need in Britain. The concern is not just about houses: it is about people and lives, and having a safe, secure and appropriate place to live. It recognises that housing – a home – is a vital element of an inclusive and compassionate society.
Quaker Housing Trust was created in 1967 as Yearly Meeting in Britain’s own housing charity. It is a national channel through which Quakers (Friends) can put money directly into projects creating homes. We turn this Quaker vision, energy and money into help for charitable social housing projects which can transform the lives of people who would otherwise be badly housed or homeless.
4
QUAKER HOUSING TRUST (A Company Limited By Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT
/continued
Our success at putting Quaker money actively to work means that income from the annual repayment of loans and the donations from Friends cannot always keep pace with the applications we receive. This can mean that funds available at any meeting for new loans and grants are sometimes low.
We continue to work with Triodos Bank about ways in which the monies held in its Quaker Social Housing Saver accounts could be used more effectively to help social housing projects.
Trustees' responsibilities statement
The trustees (who are also directors of Quaker Housing Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2015 (FRS 102
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
-
there is no relevant audit information of which the charitable company’s auditor is unaware; and
-
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Approved by the Council of Management on 2023 and signed on their behalf by:
………………………………………………………..
Mark Bitel, clerk Friends House 173 Euston Road London NW1 2BJ
5
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
QUAKER HOUSING TRUST
(A Company Limited By Guarantee)
Opinion
We have audited the financial statements of Quaker Housing Trust (the ‘charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
6
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
Continued….
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our 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 directors’ 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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
7
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
Continued/….
-
Enquiry of management and those charged with governance about actual and potential litigation or claims and the identification of non-compliance with laws and regulations.
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Reviewing minutes of meetings of those charged with governance.
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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Auditing the risk of management override of controls, including testing journal entries and other adjustments for appropriateness.
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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Professional scepticism in course of the audit and with audit sampling in material audit areas.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the 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.
K.C. Fisher (Senior Statutory Auditor) For and on behalf of Myrus Smith Statutory Auditor
Norman House 8 Burnell Road Sutton, Surrey SM1 4BW
Date: 2023
8
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022
| UNRESTRICTED FUNDS | UNRESTRICTED FUNDS | TOTAL | TOTAL | ||||
|---|---|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | ||||
| Notes | Fund | Funds | Funds | Funds | 2022 | 2021 | |
| Income and endowments | £ | £ | £ | £ | £ | £ | |
| from: | |||||||
| Donations and legacies | 3a | 62,083 | - | - | - | 62,083 | 46,645 |
| Charitable activities | 3b | 3,475 | - | - | - | 3,475 | 7,434 |
| Investment income | 3c | 2,096 | - | - | - | 2,096 | 518 |
| ───── | ────── | ────── | ───── | ───── | ───── | ||
| Total income | 67,654 | - | - | - | 67,654 | 54,597 | |
| ───── | ────── | ────── | ───── | ───── | ───── | ||
| Expenditure on: | |||||||
| Raising funds | 4 | 2,591 | - | - | - | 2,591 | 3,315 |
| Charitable activities | 5 | 38,640 | 29,147 | 15,000 | 53 | 82,840 | 70,983 |
| ──── | ────── | ────── | ───── | ───── | ───── | ||
| Total expenditure | 41,231 | 29,147 | 15,000 | 53 | 85,431 | 74,298 | |
| ──── | ────── | ────── | ───── | ───── | ───── | ||
| Net gains/(losses) on Investments | - | - | - | (622) | (622) | 2,983 | |
| ──── | ────── | ────── | ──── | ───── | ───── | ||
| Net income/expenditure and | 26,423 | (29,147) | (15,000) | (675) | (18,399) | (16,718) | |
| net movements in funds | |||||||
| Transfer between funds | 13 | - | - | - | - | - | - |
| ───── | ───── | ────── | ──── | ───── | ───── | ||
| Net movement in funds | 26,423 | (29,147) | (15,000) | (675) | (18,399) | (16,718) | |
| Reconciliation of funds | |||||||
| Total funds brought forward | 14,15,16 | £38,012 | £633,520 | £89,500 | £22,598 | 783,630 | 800,348 |
| ──── | ───── | ──── | ───── | ───── | ───── | ||
| Total funds carried forward | 14,15,16 | £64,435 | £604,373 | £74,500 | £21,923 | £765,231 | £783,630 |
| ════ | ═════ | ════ | ═════ | ═════ | ═════ |
All income and expenditure derives from continuing activities. The Statement of Financial activities include all gains and losses recognised during the year.
The notes on pages 12 to 20 form part of these Financial Statements.
9
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
BALANCE SHEET AS AT 31 DECEMBER 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed Assets | |||||
| Investments | 9 | 21,923 | 22,598 | ||
| Current Assets | |||||
| Debtors | 10 | 434,374 | 479,387 | ||
| Cash at bank and on deposit | 316,496 | 286,957 | |||
| ────── | ────── | ||||
| 750,870 | 766,344 | ||||
| Creditors: Amounts falling | |||||
| due within one year | 12 | 7,562 | 5,312 | ||
| ───── | ──── | ||||
| Net current assets | 743,308 | 761,032 | |||
| ────── | ────── | ||||
| Net assets | 17 | £765,231 | £783,630 | ||
| ═════ | ═════ | ||||
| Unrestricted funds | |||||
| General | 14 | 64,435 | 38,012 | ||
| Designated | 14 | 604,373 | 633,520 | ||
| ────── | ────── | ||||
| 668,808 | 671,532 | ||||
| Restricted funds | |||||
| Audrey Deacon Legacy | 16 | 74,500 | 89,500 | ||
| Endowment funds | 15 | 21,923 | 22,598 | ||
| ────── | ────── | ||||
| TOTAL FUNDS | £765,231 | £783,630 | |||
| ═════ | ═════ |
Approved by the Council on 2023 and signed on its behalf by:
................................................................ Mark Bitel - Clerk Member of Council of Management
The notes on pages 12 to 20 form part of these Financial Statements
10
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES
a) Basis of preparation
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements 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 UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b) Incoming recognition policies
Items of income are recognised and included in the accounts when all of the following criteria are met:
-
The charity has entitlement to the funds;
-
Any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity.
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There is sufficient certainty that receipt of the income is considered probable; and
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The amount can be measured reliably.
c) Expenditure recognition
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probably that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-
Costs of raising funds comprise the costs associated with advertising and marketing to further the charity’s purpose.
-
Expenditure on charitable activities includes the costs undertaken to further the purposes of the Charity and their associated support costs.
d) Allocation of support costs
Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel and governance costs. These costs have been allocated between cost of raising funds and the expenditure on charitable activities.
- e) Investment assets
Investments are initially recognised at their transaction value and subsequently measured at their market value at the Balance Sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses on revaluations and disposals throughout the year.
11
NOTES TO THE FINANCIAL STATEMENTS
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
1. ACCOUNTING POLICIES / contd…
- f) Fund accounting
Unrestricted funds are available to spend on activities that further the objectives of the charity.
Designated funds are unrestricted funds set aside by the trustees for particular purposes.
Restricted funds are those funds which can only be used in accordance with the wishes of the donor or which have been raised for a particular purpose.
Endowment funds are those funds for which the charity is required to hold the capital on a permanent basis.
- g) Debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairments are recognised in expenditure.
Concessionary loans are recognised at the amount received or paid, with the carrying amount adjusted to reflect subsequent repayments. Interest free loans are not discounted to net present value.
- h) Taxation
The charitable company is exempt from corporation tax on its charitable activities.
2. LEGAL STATUS OF THE CHARITY
The Charity is a private company (no. 924311) limited by guarantee, has no share capital and is registered in England and Wales. The registered office is given in the reference and administrative details on page 1.
Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up.
3. INCOME AND ENDOWMENTS
| General | Designated | Restricted | TOTAL | TOTAL | ||
|---|---|---|---|---|---|---|
| Fund | Funds | Fund | 2022 | 2021 | ||
| £ | £ | £ | £ | £ | ||
| a) | Donations and legacies | |||||
| Donation and gifts | 39,393 | - | - | 39,393 | 15,887 | |
| Donated services (note 8) | 22,690 | - | - | 22,690 | 30,758 | |
| ───── | ──── | ──── | ───── | ───── | ||
| £62,083 | £Nil | £Nil | £62,083 | £46,645 | ||
| ═════ | ════ | ════ | ═════ | ═════ |
All of the £46,645 recognised in 2021 related to the unrestricted general fund.
12
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
3. INCOME AND ENDOWMENTS /contd…
| General | Designated | Restricted | TOTAL | TOTAL | ||
|---|---|---|---|---|---|---|
| Fund | Funds | Fund | 2022 | 2021 | ||
| b) | Charitable activities | £ | £ | £ | £ | £ |
| Administration | ||||||
| charge on loans | 3,475 | - | - | 3,475 | 7,434 | |
| ──── | ─── | ─── | ──── | ──── | ||
| £3,475 | £Nil | £Nil | £3,475 | £7,434 | ||
| ════ | ═══ | ═══ | ════ | ════ |
All of the £7,434 recognised in 2021 related to the unrestricted general fund.
| c) | Investment income | £ | £ | £ | £ | £ |
|---|---|---|---|---|---|---|
| Dividends | 790 | - | - | 790 | 505 | |
| Bank interest | 1,306 | - | - | 1,306 | 13 | |
| ──── | ─── | ─── | ──── | ──── | ||
| £2,096 | £Nil | £Nil | £2,096 | £518 | ||
| ════ | ═══ | ═══ | ════ | ════ |
All of the £518 recognised in 2021 related to the unrestricted general fund.
4. RAISING FUNDS
| RAISING FUNDS | |||||
|---|---|---|---|---|---|
| Activities | Grant | ||||
| undertaken | funding of | Support | TOTAL | TOTAL | |
| directly | activities | costs | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| Publicity costs | £2,591 | £Nil | £Nil | £2,591 | £3,315 |
| ════ | ═══ | ═══ | ═══ | ════ |
All of the £3,315 recognised in 2021 related to unrestricted fund.
13
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
| Activities | Grant | ||||
|---|---|---|---|---|---|
| undertaken | funding of | Support | TOTAL | TOTAL | |
| directly | activities | costs | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| Capital grants | - | 39,047 | - | 39,047 | 35,129 |
| Feasibility grants | - | 5,100 | - | 5,100 | - |
| BYM support (note 8) | - | - | 22,690 | 22,690 | 30,758 |
| Legal fees | - | - | 955 | 955 | - |
| Bookkeeping | - | - | 2,289 | 2,289 | 1,266 |
| Secretarial expenses | - | - | 1,030 | 1,030 | 249 |
| Subscriptions / fees | - | - | 407 | 407 | 397 |
| Council of Management | 2,752 | - | - | 2,752 | 458 |
| Governance costs (Note 6) | - | - | 2,250 | 2,250 | 2,250 |
| Sundry expenses | - | - | 153 | 153 | 476 |
| Bad debt | - | - | 6,167 | 6,167 | - |
| ───── | ───── | ───── | ───── | ───── | |
| Total charitable expenditure | £2,752 | £44,147 | £35,941 | £82,840 | £70,983 |
| ═════ | ══════ | ═════ | ══════ | ══════ |
Of the £82,840 (2021: £70,983) expenditure in 2022 £38,640 (2021: £35,802) was charged to unrestricted general funds, £29,147 (2021: £35,129) to designated funds, £15,000 (2021: £NIL) to restricted funds and £53 (2021: £52) to endowment funds.
The above expenditure was all incurred in respect of the sole activity of the charity, which is that of assisting the needs of badly housed, homeless and vulnerable people of Britain by way of grants (to institutions) or loans.
| Analysis of capital grants | Designated | Restricted | Support | TOTAL | TOTAL |
|---|---|---|---|---|---|
| fund | fund | costs | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| Strathglass and Affric Community | |||||
| Group | 10,000 | - | - | 10,000 | - |
| Assist Sheffield | 1,172 | - | - | 1,172 | - |
| BoAZ Trust | 12,875 | - | - | 12,875 | - |
| Amy Temple charity | - | 15,000 | - | 15,000 | - |
| Total 2021 | - | - | - | - | 35,129 |
| ──── | ──── | ── | ───── | ───── | |
| £24,047 | £15,000 | £Nil | £39,047 | £35,129 | |
| ════ | ════ | ══ | ═════ | ═════ | |
| Analysis of feasibility grants | Designated | Restricted | Support | TOTAL | TOTAL |
| fund | fund | costs | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| St Anne’s Hostel | £5,100 | £Nil | £Nil | £5,100 | £Nil |
| ════ | ════ | ══ | ═════ | ═════ |
14
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
6. GOVERNANCE COSTS
| GOVERNANCE COSTS | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Audit fees | £2,250 | £2,250 |
| ════ | ════ |
7. TRUSTEES’ REMUNERATION AND EXPENSES
The payment of emoluments to members of the Council of Management is not permitted by the Company Articles of Association.
Trustees are entitled to recover the costs of travel in carrying out the work of the Trust and these are considered to be part of the charitable expenditure of the Trust.
The costs of the Council of Management includes trustees travel expenses of £950 (2021: £459) and the room hire and accommodation to hold the meetings of £Nil (2021: £Nil). The number of trustees whose expenses were reimbursed or paid on their behalf was 9 (2021 : 4).
8. DONATED SERVICES
The cost of secretarial support provided by Britain Yearly Meeting to the Quaker Housing Trust has been paid by Britain Yearly Meeting in the year as a reflection of the Yearly Meeting’s concern for housing issues in its corporate work. The sum of £22,690 (2021: £30,758) has been included in the Statement of Financial Activities as donated services and as support costs.
9. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Market Value brought forward | 22,598 | 19,667 |
| Disposal in year (proceeds) | (53) | (52) |
| Net unrealised gain / (loss) | (621) | 2,975 |
| Net realised gain / (loss) | (1) | 8 |
| ──── | ───── | |
| Market Value carried forward | £21,923 | £22,598 |
| ════ | ═════ | |
| Investments at market value comprised: | ||
| UK Unit Trusts | £21,923 | £22,598 |
| ════ | ═════ | |
| Historical Cost | £10,854 | £10,879 |
| ════ | ════ | |
| DEBTORS | ||
| 2022 | 2021 | |
| Due within one year: | £ | £ |
| Loans to housing charities (Note 11) | 58,199 | 73,508 |
| Other Debtors | - | 1,347 |
| ───── | ───── | |
| 58,199 | 74,855 | |
| Due after one year: | ||
| Loans to housing charities (Note 11) | 376,175 | 404,532 |
| ───── | ───── | |
| £434,374 | £479,387 | |
| ═════ | ═════ |
10. DEBTORS
15
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
11. LOANS TO HOUSING CHARITIES
Loans for housing activities in 2022 were to the following charities:
| Balance | Balance | |||||
|---|---|---|---|---|---|---|
| 1 Jan | Advanced | Repaid | 31 Dec | Repayable | ||
| Note | 2022 | In Year | In Year | 2022 | By | |
| Designated Funds | £ | £ | £ | £ | ||
| General Loan Fund | ||||||
| AEOB House People | 10,000 | - | 2,000 | 8,000 | 2026 | |
| Big Help Project | 25,000 | - | - | 25,000 | 2030 | |
| Bridgenorth Housing Trust | 10,000 | - | 2,000 | 8,000 | 2026 | |
| Calder Valley Community Land Trust | 3,600 | - | 200 | 3,400 | 2040 | |
| Canopy Housing Project | 8,000 | - | 1,000 | 7,000 | 2029 | |
| Central England AQM | 14,000 | - | 2,333 | 11,667 | 2027 | |
| Coatham House | 31,600 | - | 4,300 | 27,300 | 2032 | |
| East Cleveland Youth Housing Trust | 12,000 | - | 1,500 | 10,500 | 2029 | |
| Emmaus Hastings & Rother | 9,334 | - | 1,333 | 8,001 | 2033 | |
| Gilead Foundations Charity | 6,000 | - | 3,000 | 3,000 | 2023 | |
| Giroscope | 11,673 | - | 1,667 | 10,006 | 2028 | |
| Handcrafted Projects | 28,250 | - | 1,500 | 26,750 | 2038 | |
| Helmsdale & District Development Trust | 12,000 | - | 1,000 | 11,000 | 2033 | |
| Hope into Action: Black Country | 6,333 | - | 6,333 | - | 2027 | |
| Hope Into Action: East of England | 56,000 | - | 4,000 | 52,000 | 2035 | |
| Jericho Foundation | 12,000 | - | 2,000 | 10,000 | 2027 | |
| L.A.T.C.H. | 35,750 | - | 3,250 | 32,500 | 2032 | |
| Mull and Iona Community Trust | 10,500 | - | 2,100 | 8,400 | 2026 | |
| Norfolk and Waveney AM | 2,500 | - | 2,500 | - | ||
| Norman Almhouses Charity | 17,500 | - | 2,500 | 15,000 | 2029 | |
| SAHWR | 9,000 | - | 1,000 | 8,000 | 2031 | |
| St Hilda’s Almshouses Trust | 12,000 | - | 2,000 | 10,000 | 2027 | |
| St Vincent's & St George's Assoc | 1,600 | - | 1,600 | - | 2022 | |
| Stop Gap Supported Housing | 21,000 | - | - | 21,000 | 2032 | |
| Strathglass and Affric Community | - | 20,000 | - | 20,000 | ||
| Street Connect | 14,000 | - | 2,000 | 12,000 | 2029 | |
| Street Connect 2 | 14,000 | - | 1,000 | 13,000 | 2031 | |
| Whitby Area Development Trust | 6,000 | - | 3,000 | 3,000 | 2023 | |
| YMCA Glenrothes | 9,000 | - | 1,500 | 7,500 | 2027 | |
| Restricted Fund | ||||||
| Audrey Deacon Legacy | ||||||
| Calder Valley Community Land Trust | 18,900 | - | 1,050 | 17,850 | 2040 | |
| Glendale Gateway Trust | 45,500 | - | 3,500 | 42,000 | 2024 | |
| Powell and Welch Almshouse Charity | 5,000 | - | 2,500 | 2,500 | 2023 | |
| ───── | ──── | ───── | ───── | |||
| Total Loans | £478,040 | £20,000 | £63,666 | £434,374 | ||
| ═════ | ════ | ═════ | ═════ | |||
| Loans due to be repaid within one year | 11 | 73,508 | 58,199 | |||
| Loans due to repaid after one year | 11 | 404,532 | 376,175 | |||
| ───── | ───── | |||||
| £478,040 | £434,374 | |||||
| ═════ | ═════ |
16
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
11. LOANS TO HOUSING CHARITIES (Continued)
Notes:
- The Triodos Bank runs the Quaker Social Housing Saver (formerly Quaker Social Account) in partnership with QHT. Partnership loans were a form of joint loan arrangement between QHT and Triodos during the early years of the account created to maximise the benefit to projects of funds from both sources. The QHT loan is independently secured against assets held by the project and repaid directly by the project to QHT.
12. CREDITORS – Amounts falling due within one year
| CREDITORS – Amounts falling due within one year | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Loans from Friends – interest free | 2,810 | 2,810 |
| Accruals | 4,752 | 2,502 |
| ──── | ──── | |
| £7,562 | £5,312 | |
| ════ | ════ |
13. TRANSFERS BETWEEN FUNDS
The Trustees have reviewed the balances in the General Fund in line with their policy of only holding sufficient funds for one year’s running costs. Balances above that are transferred to Designated Funds to make available the maximum funds for the work of the charity.
14. UNRESTRICTED FUNDS
| UNRESTRICTED FUNDS | |||
|---|---|---|---|
| Designated | |||
| General | Grant and | Total | |
| Fund | Loan Fund | 2022 | |
| £ | £ | £ | |
| Balance at 1 January 2022 | 38,012 | 633,520 | 671,532 |
| Net income/(expenditure) | 26,423 | (29,147) | (2,724) |
| Transfer between funds | - | - | - |
| ───── | ───── | ───── | |
| Balance at 31 December 2022 | £64,435 | £604,373 | £668,808 |
| ═════ | ═════ | ═════ |
Comparative information for the analysis of unrestricted funds in the previous year is as follows:
| Designated | |||
|---|---|---|---|
| General | Grant and | Total | |
| Fund | Loan Fund | 2021 | |
| £ | £ | £ | |
| Balance at 1 January 2021 | 22,532 | 668,649 | 691,181 |
| Net income/(expenditure) | 15,480 | (35,129) | (19,649) |
| Transfer between funds | - | - | - |
| ────── | ────── | ────── | |
| Balance at 31 December 2021 | £38,012 | £633,520 | £671,532 |
| ══════ | ══════ | ══════ |
Designated funds are funds set aside for making grants and loans to housing charities.
17
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
/contd…
15. ENDOWMENT FUNDS
| ENDOWMENT FUNDS | |||
|---|---|---|---|
| Total | |||
| Revaluation | Endowment | 2022 | |
| £ | £ | £ | |
| Balance at 1 January 2022 | 11,719 | 10,879 | 22,598 |
| Disposal | (28) | (25) | (53) |
| Revaluation during the year | (622) | - | (622) |
| ──── | ──── | ──── | |
| Balance at 31 December 2022 | 11,069 | 10,854 | 21,923 |
| ════ | ════ | ════ |
Comparative information for the analysis of endowment funds in the previous year is as follows:
| Total | |||
|---|---|---|---|
| Revaluation | Endowment | 2021 | |
| £ | £ | £ | |
| Balance at 1 January 2021 | 8,759 | 10,908 | 19,667 |
| Disposal | (23) | (29) | (52) |
| Revaluation during the year | 2,983 | - | 2,983 |
| ───── | ───── | ───── | |
| Balance at 31 December 2021 | £11,719 | £10,879 | £22,598 |
| ═════ | ═════ | ═════ |
The endowment fund represents those assets which must be held permanently by the charity.
The revaluation fund represents the amount by which investments exceed their historical cost.
16. RESTRICTED FUNDS
| RESTRICTED FUNDS | ||
|---|---|---|
| Total | Total | |
| 2022 | 2021 | |
| £ | £ | |
| Balance at 1 January 2022 | 89,500 | 89,500 |
| Expenditure | (15,000) | - |
| ──── | ──── | |
| Balance at 31 December 2022 | 74,500 | 89,500 |
| ════ | ════ |
The Audrey Deacon Legacy Fund is restricted to organisations that provide accommodation to elderly people, particularly those who are physically or mentally infirm.
17. ANALYSIS OF NET ASSETS BY FUNDS
| Other Net | ||||
|---|---|---|---|---|
| 2022 | Investments | Loans | Assets | Total |
| £ | £ | £ | £ | |
| Unrestricted Funds: | ||||
| General Fund | - | - | 64,435 | 64,435 |
| Designated Funds | - | 372,024 | 232,349 | 604,373 |
| Restricted Funds | ||||
| Audrey Deacon Legacy | - | 62,350 | 12,150 | 74,500 |
| Endowment Funds | 21,923 | - | - | 21,923 |
| ──── | ───── | ───── | ───── | |
| At 31 December 2022 | £21,923 | £434,374 | £308,934 | £765,231 |
| ════ | ═════ | ═════ | ═════ |
18
QUAKER HOUSING TRUST (A Company Limited By Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022 /contd…
17. ANALYSIS OF NET ASSETS BY FUNDS (Continued)
Comparative information for the analysis of net assets by funds in the previous year is as follows:
| Other Net | ||||
|---|---|---|---|---|
| 2021 | Investments | Loans | Assets | Total |
| £ | £ | £ | £ | |
| Unrestricted Funds: | ||||
| General Fund | - | - | 38,012 | 38,012 |
| Designated Funds | - | 408,640 | 224,880 | 633,520 |
| Restricted Funds | ||||
| Audrey Deacon Legacy | - | 69,400 | 20,100 | 89,500 |
| Endowment Funds | 22,598 | - | - | 22,598 |
| ──── | ───── | ───── | ───── | |
| At 31 December 2021 | £22,598 | £478,040 | £282,992 | £783,630 |
| ════ | ═════ | ═════ | ═════ |
18. COMMITMENTS
The following loans and grants have been authorised from the combined Grants and Loans Fund by the Council of Management but have not been paid or accrued for in the Financial Statements.
| Loans | Grants | 2022 | 2021 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Arisaig Community Trust | - | 20,000 | 20,000 | 20,000 |
| Assist Sheffield | - | 4,828 | 4,828 | 6,000 |
| BOAZ Trust | - | - | - | 12,875 |
| Common Ground Against Homelessness | - | 25,000 | 25,000 | - |
| Waltham Forest Night Shelter | - | 25,000 | 25,000 | - |
| Open Door (North East) | - | 20,000 | 20,000 | - |
| Street Connect Glasgow | - | 10,000 | 10,000 | - |
| Strathglass and Affric Community Group | - | - | - | 10,000 |
| ── | ───── | ───── | ───── | |
| £Nil | £104,828 | £104,828 | £48,875 | |
| ══ | ═════ | ═════ | ═════ |
19