## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited Financial Statements**
## **Year Ended 31 March 2022**
Regulator for Social Housing registration number: H1167
Company registration number: 955757 (England & Wales)
Charity registration number: 262424
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Financial Statements**
## **Year Ended 31 March 2022**
|**Contents**||
|---|---|
||**Page**|
|Registered Social Housing Provider Information|1|
|Board Report|3|
|Independent Auditor’s Report|6|
|Statement of Comprehensive Income|9|
|Statement of Financial Position|10|
|Statement of Changes in Reserves|11|
|Statement of Cash Flows|12|
|Notes to the Financial Statements|13|
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Registered Social Housing Provider Information**
## **Year Ended 31 March 2022**
|**Members of the board**|Ms KJ Sheldon (Chairman)|
|---|---|
|**at 31 March 2022**|Mrs CJ Hopcraft|
||Mrs J Ridgway|
||Ms S Eaves (appointed 19 April 2021, resigned|
||9 November 2022)|
||Mr A Shailer-Smith (appointed 4 January 2022)|
||Mr L Hickman (appointed 9 February 2022)|
||Mr M Burns (appointed 8 April 2021, resigned 23|
||June 2021)|
||Mr J Everham (appointed 20 October 2022)|
||Ms L Hoteit (appointed 7 November 2022)|
||Mr D Chabbra (appointed 14 August 2021,|
||resigned 18 August 2022)|
||Mr C Lawn (appointed 13 January 2021,|
||resigned 18 July 2022)|
||Mr I Odegbami (appointed 1 May 2021, resigned|
||16 July 2022)|
|**Secretary**|Mr Lee Hickman|
|**Registered office**|Annett House|
||Common Gardens|
||Potten End|
||Hertfordshire|
||HP4 2RH|
|**Auditor**|Hillier Hopkins LLP|
||Radius House|
||51 Clarendon Road|
||Watford|
||Hertfordshire|
||WD17 1HP|
|**Solicitors**|Austins Penny & Thorne|
||175 High Street|
||Berkhamsted|
||Hertfordshire|
||HP4 3HG|
|**Bankers**|Barclays Bank PLC|
||Lloyds Bank PLC|
|**Regulator for Social Housing**|H1167|
|**registration number**||
1
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
**Registered Social Housing Provider Information**
**Year Ended 31 March 2022**
**Company registration number** 955757 (England & Wales) **Charity registration number** 262424
2
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Board Report (continued)**
## **Year Ended 31 March 2022**
The board of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited present their report and the audited financial statements of the Society for the year ended 31 March 2022.
## **Members of the board**
The members of the board who have served during the year are as follows:
Mrs CJ Hopcraft (Chairman) Mrs J Ridgway Ms KJ Sheldon Ms S Eaves (appointed 19 April 2021, resigned 9 November 2022) Mr A Shailer-Smith (appointed 4 January 2022) Mr L Hickman (appointed 9 February 2022) Mr M Burns (appointed 8 April 2021, resigned 23 June 2021) Mr J Everham (appointed 20 October 2022) Ms L Hoteit (appointed 7 November 2022) Mr D Chabbra (appointed 14 August 2021, resigned 18 August 2022) Mr C Lawn (appointed 13 January 2021, resigned 18 July 2022) Mr I Odegbami (appointed 1 May 2021, resigned 16 July 2022)
## **Review of activities**
The principal activity of the Society is to provide supported sheltered housing accommodation for lonely and elderly people in accordance with the aims and principles of the national Abbeyfield Society. Each year the Directors review the Society’s objectives and activities to ensure that they continue to reflect its aims; in carrying out this review the Directors, who are also charitable trustees, have considered the Charity Commission’s guidance on public benefit. The Society aims to offer equal and fair access to all eligible older people and the Society aims to be affordable to all. Financial assessments do not play a part in the selection process but the Society will discuss with applicants the charges and how they plan to meet them; where appropriate the Society will facilitate access to advice about claiming benefits and provide any information in support of a resident’s claim.
As was the case for all businesses, the year was dominated by the coronavirus pandemic. The Directors are extremely pleased to be able to report that no resident contracted the virus. We are very grateful to our residents who gave up their day-to-day freedoms, and continue to do so, to ensure the success of our arrangements to keep the houses free of infection. Our staff have protected the residents throughout and we wish to record our appreciation of their hard work and their commitment to keeping the houses safe. Thanks are due also to the residents’ sponsors who have supported our arrangements and helped to keep their relatives safe.
## **Results for the year and reserves policy**
The Society reports a surplus of £126,102 for the year under review (2021: £52,645). We have experienced times of reduced income within the houses due to short term voids (5% in 2022, 13% in 2021). which have occurred due to residents moving on. The reopening of the houses after the COVID-19 restrictions have allowed the society to focus on completing the outstanding repairs and maintenance that was placed on hold as a result there has been an increase compared to the previous year.
The Society's reserves stand at £1,344,003 of which £540,761 is held in cash. In the first instance, this would be required to cover at least six months’ cash operating costs in the event of an emergency and is therefore considered adequate. It is the policy of the Directors to utilise any further surpluses which arise to maintain and improve the physical condition of the Society’s houses.
3
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Board Report (continued)**
## **Year Ended 31 March 2022**
## **Future developments**
The Society wishes to ensure a safe and happy environment in its houses but the Directors will not take any action which could threaten the safety of the residents and will continue to follow the guidance and advice issued by the government and by health and regulatory bodies as far as imposing and lifting restrictions on access to the houses is concerned. The Directors are confident that reserves are adequate to protect the Society’s financial position in the present circumstances.
The Society will aim to continue to invest in refurbishing and modernising the accommodation of the three supported sheltered houses which it owns and the Directors will continue to use all generated operating surpluses to improve the quality of the houses as well as maintain an appropriate level of cash reserves to fund the operations of the Society.
The Board, which is wholly comprised of volunteers, will continue to seek new members who can contribute to the work of the Society and take it forward in planning for the future. The roles of paid staff are being developed to the extent permitted by available funding to ensure that the houses are run professionally and are not adversely affected by the absence of volunteers.
## **Governance**
The Society is bound by the Governance and Financial Viability Standard issued by the Regulator of Social Housing and by the Charity Commission’s Code of Governance. The Directors are of the view that compliance with these codes is best achieved by continuous adherence to the Core Standard set by the national Abbeyfield Society with which the Society has in the past achieved full compliance. The Core Standard will shortly be replaced by the Quality Standard with which the Society will comply.
The Directors keep under regular review the risks to which the Society may be exposed, and the means of mitigating such risks, and they acknowledge their ultimate responsibility for ensuring that the Society has in place a system of controls that is appropriate to the business environment in which the Society operates.
The Directors find that after making enquiries they have a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts.
4
The Abbeyfield {Berkhamsted and Hwnol Hempstead) Socloty Umlted
Board Report (¢ontlnued)
Year Ended 31 March 2022
Dirèclors, rwbonsibMltte5
Tho Board is resFonsibl8 for prepariry the annual repyi •KI the ffinaal statements ae(xNdance with
appllc8bie law and regulation.
Company law ond social housing legkstatic requires the Board to prepare finandal stataments fDr e8ch
financial year in aCcnCe wilh Unit1 lfjngdom Pmptwj Acc¢xJnting Practtce {UnTted Kingdom
Accounting Standards and awficable Undw Company taw the Board mt not approve the financial
ststements unless they are satisfied that ttw give a true andlairview ofthe state ofaffair5 ofthe Sodety and
of the surplus or deit ofthe Socaety fcff that WKMI.
make1udgents and accNtIng estimatss that are rea%able and wden¢
stste wthether appficable UK Alxounting StsThJards and Ihe Ststement of RecoMMeIed Pra¢tKe
"Awountiru by Registered S([ ProvNJers 2018" and FRS102 have been follow811, subjort
to any material departtires dck68d and in the firwK431 statements., and
epare the financ481 statenwts on a (xKKem trAsi8 unless it is rwr0FatO to presume that
th8 Society 11 in IwsW5
Board membors arg responsIe ts keeping adequate aLY))unknig rgc¥Nds thal ar8 SLfftient to show and
gxplain the So(je$ transacti($ and disclose with reascffiable at any time the financial posilion of
the Society and enabte them to ensurg that the financaal Staternts u)mF4y wrth the COmpanS Act 2006. the
Housing Regenerdtion Act 2CK18 and the Direction for RegIsterj PYov*Jers of Social Housing
2019. They are also reSpOn1e for safeguar(Iw)g the assets of the s( and for taking reasonable staps
for the prevention aj detecti of trdud arKI other irregularitie
Board mwnbeTS respons for rnrirvJ that thé ReFKJt of the Bowd i8 in a¢x0rd8r wlh the
Stalement of RecommerKled PractK* -AcoyJnting by Registered *ial Housing Prern 2018" and FRS
102. The Board r8$[nsIble for 8nsuriThJ that the a55ets of the SOcty are Fwopety applie(l under charity
Dlsc105uYe of Informatlon to the auditors
We. the dIreCtS ofthe cAxnp8ny held offitx * the date ofapwvnl oflhese FInaa8[ Statements as set
out above each confirm. far as we are a%Ydre. Ihat
there Is rn relevant audit informth ofwhlch tha cA)MF$ are unawarè.
we have tsken all the steps thatWegmto have laken &s direc15 in orderto make trselveS aware
of any relerdnl informthn and to estat4ish Ihal th8 compan5 auditors are ww8re of Ihat
infomiatio
y ordèrof tho Board
Ms Karen Shdd
Chalrman
Dats:
J<. 11 JI
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Opinion**
We have audited the financial statements of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited (the ‘association’) for the year ended 31 March 2022 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 association’s affairs as at 31 March 2022, and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act 2014, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2015.
## **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 association 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 board's 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 association'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 board 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, other than the financial statements and our auditor’s report thereon. The board are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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.
6
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited (continued)**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion:
- the association has not kept proper books of account, and not maintained a satisfactory system of control over its transactions, in accordance with the requirements of the legislation; or
- the revenue account, any other accounts to which our report relates, and the balance sheet are not in agreement with the association’s books of account; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the board**
As explained more fully in the board's responsibilities statement set out on page 4, the board 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 it determines 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 board are responsible for assessing the association’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 board either intends to liquidate the association or to cease operations, or has 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:
- the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
- the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management, about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the association’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
7
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited (continued)**
## **Auditor’s responsibilities for the audit of the financial statements (continued)**
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the association operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to the Co-operative and Community Benefit Societies Act 2014, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2015.
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx
This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the association’s members, as a body, in accordance with Section 87 of the Cooperative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the association’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 association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Alex Bottom ACA (Senior Statutory Auditor)
For and on behalf of **Hillier Hopkins LLP**
Chartered Accountants Statutory Auditor
Radius House 51 Clarendon Road Watford Hertfordshire WD17 1HP
Date
8
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Comprehensive Income (Including Income and Expenditure Account)**
## **Year Ended 31 March 2022**
|Note
**Turnover**
2
Operating costs
2,3
**Operating surplus**
Interest receivable and similar income
5
**Surplus for the year before and**
**after tax**
**Total comprehensive income for**
**the year**|**Year ended**
**31 March**
**2022**
**£**
656,072
(530,865)
125,207
895
126,102
126,102|**Year ended**
**31 March**
**2021**
**£**
583,928
(533,852)|
|---|---|---|
|||50,076
2,569|
|||52,645|
|||52,645|
All of the above amounts relate to continuing operations.
There were no recognised gains or losses other than the surplus for the year stated above.
The notes on pages 133 to 21 form part of these financial statements
9
The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Umlted
Statement of Financial Posltlon
Year Ended 31 March 2022
2021
Flxed assets
Tangible fixed assels
1113
972.
991.911
972.556
991.911
Current assots
Stocks
Debtors
Cash at bank and in hand
5(h)
10.289
400,652
15
6.916
540.761
547.677
411.441
Crgdltor5: amounts falllng due within one year
16
(26.1061
(30,879)
Net current assets
521.571
Tolal assets less current Ilabllities
1.494.127
1.372.473
Craditors: amounts falling due after more than on• ye•r
17
1150,124)
(154,572)
Total ngt assots
1.344.3
1217,901
Income and.expeftdliure reserve
19
1.344,003
1217,901
The financial statements were approved and authrmised issue by the Board on
Signed on behalf of the Board
Ms K Sheldon
DlreGtor
Mr A Shaller4mlth
Dlrnctor
l41 kil2
The notes on pages 133 to 211 fcffii part ofthese a¢(nts.
10
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Changes in Reserves**
## **Year Ended 31 March 2022**
**Income and Expenditure Reserve £ At 1 April 2021** 1,217,901 Surplus for the year 126,102 **At 31 March 2022** 1,344,003
11
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Cash Flows**
## **Year Ended 31 March 2022**
|Note
**Cash flow from operating activities**
**Surplus for the year**
2
Adjustments for:
Depreciation of fixed assets: housing properties
12
Depreciation of fixed assets: fixtures, fittings and equipment
13
Purchase of fixed assets
12/13
Amortisation of capital grant
18
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
**Net cash inflow from operating activities**
**Cash flow from investing activities**
Interest received
**Net cash inflow/(outflow) from investing activities**
**Net increase in cash and cash equivalents**
**Cash and cash equivalents at 31 March 2021**
**Cash and cash equivalents at 31 March 2022**
**Cash and cash equivalents consists of:**
Cash at bank and in hand
**Cash and cash equivalents at 31 March 2022**
**Analysis of Net Debt**
**At 1 April**
**2021**
**£**
Cash at bank and in hand
400,652|**Year ended**
**31 March**
**2022**
**Year ended**
**31 March**
**2021**
**£**
**£**
125,207
50,076
34,031
34,456
17,936
15,677
(32,611)
-
(4,447)
(4,416)
3,373
1,487
(4,275)
8,057
139,214
105,337
895
4,181
895
4,181
140,109
109,518
400,652
291,134
540,761
400,652
540,761
400,652
**540,761**
**400,652**
**Cash flows**
**At 31 March**
**2022**
**£**
**£**
140,109
540,761|
|---|---|
12
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements**
## **Year Ended 31 March 2022**
## **1 Summary of significant accounting policies**
## **(a) General information and basis of preparation**
The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited is a company limited by guarantee not having a share capital, a registered charity and a private registered provider of social housing in the United Kingdom. The address of the registered office is given in the information on page 1 of these financial statements. The nature of the Society’s operations and principal activities are the provision of supported sheltered accommodation for the elderly.
The Society constitutes a public benefit entity as defined by FRS 102.
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 _The Financial Reporting Standard Applicable in the UK and Republic of Ireland_ (FRS 102), the Statement of Recommended Practice (SORP) for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the Society.
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) Going concern**
As at the year end, the company had net current assets of £521,571 and generated a surplus of £126,102 before other comprehensive gains/losses. Like most of the world’s businesses it faced significant challenges in operating normally with the onset of the Covid-19 crisis. Turnover available to the company may continue to be threatened if renewed restrictions prevent access to properties for the purpose of viewing vacant accommodation. The members of the board have taken steps to manage the cash flow during the year in review and continue to monitor budgets for the next 12 months accordingly. Having due regard to these matters and after making appropriate enquiries, the board members have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the board members continue to adopt the going concern basis in preparing these Financial Statements.
## **(c) Tangible fixed assets**
Tangible fixed assets (including social housing properties) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or results in a significant extension of the useful economic life of the property.
13
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
## **(c) Tangible fixed assets (continued)**
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Housing properties Over 50 years Improvements and refurbishments to housing properties Over 20 years Fixture, fittings and equipment Over 10-15 years
Housing properties under construction are not depreciated until they are in use.
Major components of housing properties, such as lifts, heating and warden alarm systems, have been accounted for and depreciated separately from the connected housing property, over their expected useful economic lives and are included in fixtures, fittings and equipment.
The useful economic lives of all tangible fixed assets are reviewed annually.
## **(d) Stock**
Stock is represented by provisions in store, the replacement cost of which is not significantly different from the historical cost at which it is stated in the financial statements.
## **(e) Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.
## **(f) Impairment**
The Society’s housing properties are assessed for indicators of impairment at each balance sheet date. If such indication exists, the recoverable amount is estimated and compared to the carrying amount. Where the carrying amount exceeds the recoverable amount, an impairment loss is recognised in expenditure through the statement of comprehensive income.
## **(g) Tax**
The Society has charitable status and is not in general subject to Corporation Tax.
The Society is not registered for VAT.
## **(h) Turnover and other income**
Turnover is measured at the fair value of the consideration received or receivable net of trade discounts. It represents rental and service charges income receivable in the year, net of rent and service charge losses from voids.
## _Interest receivable_
Interest income is recognised using the effective interest method.
14
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
## **(h) Turnover and other income (continued)**
_Revenue grants_
Revenue grants receivable that are not subject to performance-related conditions are included within income from legacies and donations.
## **(i) Employee benefits**
_Pension costs_
The Society operates a defined contribution pension plan for the benefit of its employees. Contributions are expensed as they become payable.
_Holiday pay accrual_
A liability is recognised for the salary cost of any unused holiday pay entitlement which has accrued at the balance sheet date and has been carried forward to future periods.
## **(j) Restricted and endowment reserves**
Restricted and endowment reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body. Restricted reserves include funds raised in response to a specific appeal. Endowment funds represent those assets which must be held permanently, principally insert detail. Revenue and expenditure cannot be directly set against restricted and endowment reserves but is taken through the statement of comprehensive income and then a transfer to restricted and endowment reserves is made as appropriate.
## **(k) Judgements and key sources of estimation uncertainty**
In preparing these financial statements the key judgement that has been made is in respect of whether there are indicators of impairment of the Society’s housing properties.
The key source of estimation uncertainty lies in the assessment of the useful lives of the Society’s housing properties and other tangible fixed assets, which determines the charge for depreciation made in the Comprehensive Income and Expenditure Statement.
In common with other similar entities the Society has at times been unable to fill vacancies due to the restrictions on access caused by the coronavirus pandemic. The Directors are confident that the Society’s financial position is adequately protected by its reserves.
15
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
## **2 Turnover, operating costs and operating surplus**
|**Year ended 31 March 2022**
**Turnover**
**Operating**
**Costs**
**£**
**£**
Social housing lettings (note 3)
654,055
(530,865)
Legacies and donations
2,017
-
**Total**
656,072
(530,865)
**Year ended 31 March 2021**
**Turnover**
**Operating**
**Costs**
**£**
**£**
Social housing lettings (note 3)
578,418
(533,852)
Legacies and donations
5,510
-
**Total**
583,928
(533,852)
**3**
**Particulars of turnover and operating costs from social housing**
**Year ended**
**31 March**
**2022**
£
**Turnover**
Rent receivable net of void losses
649,608
Capital grants released to income
4,447
**Turnover from social housing**
**lettings**
654,055
**Operating costs**
Management and administration
56,900
Service costs
385,696
Routine repairs and maintenance
30,040
Major repairs expenditure
6,261
Depreciation of housing properties
34,031
Other costs
17,936
**Operating costs on social**
**housing lettings**
350,865
**Operating surplus on social**
**housing lettings**
123,190
**Void losses**
32,577|**Operating**
**Costs**
**£**
(530,865)
-|**Operating**
**surplus**
**£**
123,190
2,017
125,207
**Operating**
**surplus**
**£**
44,566
5,510
50,076
**Year ended**
**31 March**
**2021**
£
574,002
4,416
578,418
67,652
382,278
26,608
7,181
34,456
15,677
533,852
44,566
84,213|
|---|---|---|
||(530,865)||
||**Operating**
**Costs**
**£**
(533,852)
-||
||(533,852)||
16
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
|**4**
**Accommodation owned and in management**
Completed units:
Supported housing for the elderly
**5**
**Interest and other finance income and charges**
Bank interest receivable
**6**
**Surplus on ordinary activities**|**Number of**
**units** **at**
**31 March**
**2022**
34
**Year ended**
**31 March**
**2022**
**£**
895||**Number of**
**units** **at**
**31 March**
**2021**
34|
|---|---|---|---|
||||**Year ended**
**31 March**
**2021**
**£**
2,569|
|||||
Surplus on ordinary activities is stated after charging:
|urplus on ordinary activities is stated after charging:|||
|---|---|---|
||**Year ended**|**Year ended**|
||**31 March**|**31 March**|
||**2022**|**2021**|
||**£**|**£**|
|Auditors’ remuneration|9,652|7,020|
|Depreciation of housing properties|39,939|34,456|
|Depreciation of other tangible fixed assets|12,029|15,677|
## **7 Staff costs**
The average monthly number of employees, calculated on a full time equivalent basis, during the year was 11.6 (2021:9.7). The aggregate remuneration of such employees was as follows:
|Wages and salaries
Social security
Pension fund contributions|**Year ended**
**31 March**
**2022**
**£**
267,207
10,969
5,149
283,325|**Year ended**
**31 March**
**2021**
**£**
291,137
13,028
4,921|
|---|---|---|
|||309,086|
17
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
## **7 Staff costs (continued)**
No employees received more than £60,000 as their employee package.
## **8 Related party disclosures**
During the year, four trustees, who are also directors, received reimbursement of £2,022 in respect of goods, services and consumables purchased on behalf of the company (2021: four trustees received reimbursement of £3,599).
One further related parties made supplies to the Society totalling £4,892 (2021: £7,875, £2,548 and £63 respectively).
## **9 Pensions and other post-retirement benefits**
The Society operates a defined contribution pension plan for its employees. The amount recognised as an expense in the year is disclosed at note 7 above.
## **10 Tax**
The Society has charitable status and is not in general subject to Corporation Tax.
## **11 Value for Money metrics**
The Regulator of Social Housing requires registered providers to articulate and deliver a comprehensive and strategic approach to achieving value for money in meeting their organisation’s objectives. As part of that process, providers are required to publish evidence which enables stakeholders to understand their performance. This evidence includes certain metrics set out below. Other metrics required by the Regulator are not applicable to the Society which has not developed housing for some time and is debt free.
|
ousing for some time and is debt free.|||
|---|---|---|
||**Year ended**|**Year ended**|
||**31 March**|**31 March**|
||**2022**|**2021**|
||**£**|**£**|
|Reinvestment in housing stock by reference to cost of stock|0.8%|0.4%|
|Social housing cost per unit|14,310|14,227|
|Operating margin by reference to turnover|||
|- Social housing only|18.8%|7.7%|
|- All activities|19.1%|8.6%|
18
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
|**Year Ended 31 March 2022**||
|---|---|
|**12**
**Tangible fixed assets: housing properties**
**Cost:**
At 1 April 2021
Additions
**At 31 March 2022**
**Depreciation:**
At 1 April 2021
Charge for the year
**At 31 March 2022**
**Net book value:**
**At 31 March 2022**
At 1 April 2021
All housing properties are held freehold.
**13**
**Tangible fixed assets: fixtures, fittings and equipment**
**Cost:**
At 1 April 2021
Additions
**At 31 March 2022**
**Depreciation:**
At 1 April 2021
Charge for the year
**At 31 March 2021**
**Net book value:**
**At 31 March 2022**
At 1 April 2021|**£**
1,807,815
7,657|
||**1,815,472**
904,545
34,031|
||**938,573**|
||**876,892**|
||903,270|
||**£**
206,519
24,954|
||**231,473**
117,878
17,936|
||**135,815**|
||**95,658**|
||88,641|
## **14 Capital commitments**
No capital expenditure had been authorised by the board or contracted for at 31 March 2022 (2021: £nil).
19
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
|**Year Ended 31 March 2022**|||
|---|---|---|
|**15**
**Debtors**
Rent and service charge arrears
Prepayments and accrued income
Other debtors
**16**
**Creditors: amounts falling due within one year**
Trade creditors
Rents paid in advance
Tax and social security
Deferred capital grants (note 18)
Other creditors
**17**
**Creditors: amounts falling due after more than one year**
Deferred capital grants (note 18)
**18**
**Deferred capital grants**
At 1 April 2021
Released to income during the year
**At 31 March 2022**|**2022**
**£**
-
6,916
-
6,916
**2022**
**£**
14,955
858
4,881
4,416
996
26,106
**2022**
**£**
150,124
150,124
**2022**
**£**
158,988
(4,416)
154,572|**2021**
**£**
18
8,019
2,252|
|||10,289|
|||**2021**
**£**
14,735
1,513
7,314
4,416
2,901|
|||30,879|
|||**2021**
**£**
154,572|
|||154,572|
|||**2021**
**£**
163,404
(4,416)|
|||158,988|
20
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2022**
## **18 Deferred capital grants (continued)**
|**eferred capital grants (continued)**|||
|---|---|---|
|Included in amounts falling due within one year
Included in amounts falling due after more than one year
**At 31 March 2022**|**2022**
**£**
4,416
150,124
154,540|**2021**
**£**
4,416
154,572|
|||158,988|
Deferred capital grants represent the unamortised portions of historic capital grants (Social Housing Grants) given for the acquisition of land and development of buildings completed in prior years. In accordance with FRS 102 these are disclosed within creditors.
.
## **19 Reserves**
Income and expenditure reserve
The income and expenditure reserve represents cumulative surplus and deficits net of other adjustments.
|At 1 April 2021
Surplus for the year
**At 31 March 2022**|**2022**
**£**
1,217,901
126,102
1,344,003|**2021**
**£**
1,165,256
52,645|
|---|---|---|
|||1,217,901|
## **20 Company limited by guarantee**
The Society is a company limited by guarantee, not having a share capital.
There are seven members (2021: seven), each of whom has agreed to contribute to the assets of the company such a sum as may be required on winding up but not exceeding £1 per member.
21
**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Detailed Income and Expenditure Account**
## **Year Ended 31 March 2022**
|**INCOME**
Residential Charges Receivable
Losses arising from Vacancies & Absences
Capital grants released to income
**Turnover from Social Housing Lettings**
Donations and Fund Raising
Bank Deposit Interest
**TOTAL INCOME**
**EXPENDITURE**
**Management & Administration**
Insurance
Membership - The Abbeyfield Society
and other regulators
Subscriptions and marketing
Auditors Remuneration
Legal and Professional Fees
Loss on disposal of fixed assets
Bank Charges
Administration salary costs
Administrative Expenses
**Service Costs**
Employee Costs
Staff Training and Advertising
Food
Heating and Lighting
Garden and Other Household costs
Water rates
Council Tax
Alarm System
Printing, Stationery and Postage
Telephone
Computer expenses
Social Activities
Miscellaneous
Window cleaning
Equipment replacement
**Routine Repairs & Maintenance**
**Major Repairs Expenditure**
**Depreciation of housing properties**
**Other depreciation**
**TOTAL EXPENDITURE**
**TOTAL SURPLUS FOR THE YEAR**|8,491
11,144
5,895
9,652
2,793
-
506
16,433
1,986|**Year ended**
**31 March**
**2022**
**£**
682,185
(32,577)
4,447
654,055
2,017
895
656,967
56,900
385,697
30,040
6,261
34,031
17,936
530,865
**126,102 **|7,567
11,003
307
7,020
2,248
-
687
36,856
1,964|**Year ended**
**31 March**
**2021**
**£**
658,215
(84,213)
4,416|
|---|---|---|---|---|
|||||578,418
5,510
2,569|
|||||586,497
67,652
382,278
26,608
7,181
34,456
15,677
533,852|
||266,892
735
42,379
31,318
13,240
4,202
7,186
2,561
647
5,461
630
796
4,073
957
4,620||272,230
3,169
41,824
25,717
13,833
3,885
6,896
2,309
1,495
4,977
2,784
1,067
2,092||
||||||
|||||**52,645**|
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