Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Financial Statements**
## **Year Ended 31 March 2025**
Regulator for Social Housing registration number: H1167
Company registration number: 955757 (England & Wales)
Charity registration number: 262424
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Financial Statements**
## **Year Ended 31 March 2025**
|**Contents**||
|---|---|
||**Page**|
|Registered Social Housing Provider Information|1|
|Board Report|2|
|Independent Auditor’s Report|5|
|Statement of Comprehensive Income|8|
|Statement of Financial Position|9|
|Statement of Changes in Reserves|10|
|Statement of Cash Flows|11|
|Notes to the Financial Statements|12|
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Registered Social Housing Provider Information**
## **Year Ended 31 March 2025**
|**Members of the board**|Mr P P Ashbrook (Chairman)(appointed 24 June|
|---|---|
|**at 31 March 2025**|2024)|
||Ms K J Sheldon|
||Ms M Brady|
||Ms C J Hopcraft|
||Ms L Hotiet|
||Ms R Stonestreet|
||Mr I C Smith|
||Mr G Wrzosek|
||Mr J D Eversham|
||Mr G B Adeleke|
||Ms D G Marsh (resigned 10 July 2024)|
|**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**||
|**Company registration number**|00955757 (England & Wales)|
|**Charity registration number**|262424|
1
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
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 2025.
## **Members of the board**
The members of the board who have served during the year are as follows:
Mr P P Ashbrook (Chairman) Ms K J Sheldon Ms M Brady Ms C J Hopcraft Ms L Hotiet Ms R Stonestreet Mr I C Smith Mr G Wrzosek Mr J D Eversham Mr G B Adeleke Ms D G Marsh (resigned 10 July 2024)
## **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.
A review of the current level of staff coverage within the houses took place and a more robust staff structure was established, and recruitment of staff began. The Society has focused on increasing the level of cover with the Society to ensure that the residents and sponsors have increased visibility of management and have an improved service provided by skilled staff.
## **Results for the year and reserves policy**
The Society reports a surplus of £53,429 for the year under review (2024: £57,310). We have experienced times of reduced income within the houses due to short term voids (4% in 2025, 8% in 2024) which have occurred due to residents moving on. The society has continued to focus on completing the outstanding repairs and maintenance that was placed on hold due to the previous COVID -19 restrictions as a result there has been an increase compared to the previous year.
The Society's reserves stand at £1,575,648 of which £599,709 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.
2
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **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.
## **Directors’ responsibilities**
The Board is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulation.
Company law and social housing legislation requires the Board to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Board 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 Society and of the surplus or deficit of the Society for that period.
3
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Independent Auditor’s Report to the Members of The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
In preparing these financial statements, the Board members are required to:
- select suitable accounting policies and apply them consistently.
- make judgements and accounting estimates that are reasonable and prudent.
- state whether applicable UK Accounting Standards and the Statement of Recommended Practice “Accounting by Registered Social Housing Providers 2018” and FRS102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Society will continue in business.
Board members are responsible for keeping adequate accounting records that are sufficient to show and explain the Society’s transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Registered Providers of Social Housing 2019. They are also responsible for safeguarding the assets of the Society and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Board members are responsible for ensuring that the Report of the Board is prepared in accordance with the Statement of Recommended Practice “Accounting by Registered Social Housing Providers 2018” and FRS 102. The Board is responsible for ensuring that the assets of the Society are properly applied under charity law.
## **Disclosure of information to the auditors**
We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:
- there is no relevant audit information of which the company’s auditors are unaware; and
- we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
## **By order of the Board**
**Mr Philip Ashbrook**
## **Chairman**
**Date** 12-08-2025 | 13:22 BST
4
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **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 2025 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 2025, 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.
5
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **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.
6
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **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.
Alexander 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 12-08-2025 | 15:42 BST
7
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Comprehensive Income (Including Income and Expenditure Account)**
## **Year Ended 31 March 2025**
|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 2025**
**£**
730,471
(682,781)
**47,690**
5,739
**53,429**
**53,429**|**Year ended**
**31 March 2024**
**£**
676,894
(627,934)|
|---|---|---|
|||**48,960**
8,350|
|||**57,310**|
|||**57,310**|
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 12 to 20 form part of these financial statements
8
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Financial Position**
## **Year Ended 31 March 2025**
|Note
**Fixed assets**
Tangible fixed assets
12,13
**Current assets**
Debtors
15
Cash at bank and in hand
**Creditors: amounts falling due within one year**
16
**Net current assets**
**Total assets less current liabilities**
**Creditors: amounts falling due after more than one year**
17
**Total net assets**
**Reserves**
Income and expenditure reserve
19|**2025**
**£**
1,126,354
**1,126,354**
6,878
599,709
**606,587**
(20,510)
**586,077**
**1,712,431**
(136,783)
**1,575,648**
**1,575,648**|**2024**
**£**
1,042,823|
|---|---|---|
|||**1,042,823**
5,600
639,295|
|||**644,895**
(24,269)|
|||**620,626**|
|||**1,663,449**
(141,230)|
|||**1,522,219**|
|||**1,522,219**|
The financial statements were approved and authorised for issue by the Board.
## **Signed on behalf of the Board:**
**Mr P Ashbrook Director Date:** 12-08-2025 | 13:22 BST
**Ms K Sheldon Director Date:** 12-08-2025 | 12:25 BST
The notes on pages 12 to 20 form part of these accounts.
9
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Changes in Reserves**
**Year Ended 31 March 2025**
|**Income and Expenditure Reserve**
**At 1 April 2024**
Surplus for the year
**At 31 March 2025**|**£**
1,522,219
53,429|
|---|---|
||**1,575,648**|
10
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Statement of Cash Flows**
## **Year Ended 31 March 2025**
|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**
**Opening Cash and cash equivalents at 1 April**
**Closing Cash and cash equivalents at 31 March**
**Cash and cash equivalents consists of:**
Cash at bank and in hand
**Closing Cash and cash equivalents at 31 March**
**Analysis of Net Debt**
**At 1 April**
**2024**
**£**
Cash at bank and in hand
639,295|**Year ended**
**31 March**
**2025**
**Year ended**
**31 March**
**2024**
**£**
**£**
47,690
48,960
44,490
37,039
39,759
28,770
(167,780)
(116,030)
(4,447)
(4,447)
(1,278)
5,689
(3,759)
(2,443)
**(45,325)**
**(2,462)**
5,739
8,350
**5,739**
**8,350**
**(39,586)**
**5,888**
**639,295**
**633,407**
**599,709**
**639,295**
599,709
639,295
**599,709**
**639,295**
**Cash flows**
**At 31 March**
**2025**
**£**
**£**
(39,586)
599,709|
|---|---|
|||
11
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements**
## **Year Ended 31 March 2025**
## **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 £586,077 and generated a surplus of £53,429 before other comprehensive gains/losses. 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.
12
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
## **(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) 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.
## **(e) 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.
## **(f) Tax**
The Society has charitable status and is not in general subject to Corporation Tax.
The Society is not registered for VAT.
## **(g) 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.
13
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
## **(g) 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.
## **(h) 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.
## **(i) 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.
## **(j) 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.
14
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
## **2 Turnover, operating costs and operating surplus**
|**rnover, operating costs and operating surplus**|||
|---|---|---|
|**Year ended 31 March 2025**
**Turnover**
**Operating**
**Costs**
**£**
**£**
Social housing lettings (note 3)
728,363
(682,781)
Legacies and donations
2,108
-
**Total**
**730,471**
**(682,781)**
**Year ended 31 March 2024**
**Turnover**
**Operating**
**Costs**
**£**
**£**
Social housing lettings (note 3)
676,099
(627,934)
Legacies and donations
795
-
**Total**
**676,894**
**(627,934)**
**rticulars of turnover and operating costs from social housing**
**Year ended**
**31 March**
**2025**
£
**Turnover**
Rent receivable net of void losses
723,916
Capital grants released to income
4,447
**Turnover from social housing**
**lettings**
**728,363**
**Operating costs**
Management and administration
143,452
Service costs
412,586
Routine repairs and maintenance
42,494
Major repairs expenditure
-
Depreciation of housing properties
44,490
Other costs
39,759
**Operating costs on social**
**housing lettings**
**682,781**
**Operating surplus on social**
**housing lettings**
**45,582**
**Void losses**
**26,098**|
|**Operating**
**surplus**
**£**
45,582
2,108
**47,690**
**Operating**
**surplus**
**£**
48,165
795
**48,960**
**Year ended**
**31 March**
**2024**
£
671,652
4,447|
|||**676,099**
118,598
386,221
50,384
6,922
37,039
28,770|
|||**627,934**|
|||**48,165**|
|||**62,374**|
## **3 Particulars of turnover and operating costs from social housing**
15
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
|**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**
**2025**
35
**Year ended**
**31 March**
**2025**
**£**
5,739|**Number of**
**units** **at**
**31 March**
**2024**
34|
|---|---|---|
|||**Year ended**
**31 March**
**2024**
**£**
8,350|
||||
Surplus on ordinary activities is stated after charging:
|urplus on ordinary activities is stated after charging:|||
|---|---|---|
||**Year ended**|**Year ended**|
||**31 March**|**31 March**|
||**2025**|**2024**|
||**£**|**£**|
|Auditors’ remuneration|12,540|11,859|
|Depreciation of housing properties|44,490|37,039|
|Depreciation of other tangible fixed assets|39,759|28,770|
## **7 Staff costs**
The average monthly number of employees, calculated on a full-time equivalent basis, during the year was 11.18 (2024: 10.9). The aggregate remuneration of such employees was as follows:
|Wages and salaries
Social security
Pension fund contributions|**Year ended**
**31 March**
**2025**
**£**
312,438
17,379
6,137
**335,954**|**Year ended**
**31 March**
**2024**
**£**
299,452
9,024
5,018|
|---|---|---|
|||**313,494**|
16
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
## **7 Staff costs (continued)**
No employees received more than £60,000 as their employee package.
## **8 Related party disclosures**
During the year, three trustees, who are also directors, received reimbursement of £992 in respect of goods, services and consumables purchased on behalf of the company (2024: three trustees received reimbursement of £1,453).
One further related parties made supplies to the Society totalling £502 (2024: £3,598).
## **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.
||**Year ended**|**Year ended**|
|---|---|---|
||**31 March**|**31 March**|
||**2025**|**2024**|
||**£**|**£**|
|Reinvestment in housing stock by reference to cost of stock|7.1%|3.0%|
|Social housing cost per unit|16,320|17,437|
|Operating margin by reference to turnover|||
|- Social housing only|6.3%|7.7%|
|- All activities|6.5%|7.8%|
17
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
|**Notes to the Financial Statements (continued)**||
|---|---|
|**Year Ended 31 March 2025**
**12**
**Tangible fixed assets: housing properties**
**Cost:**
At 1 April 2024
Additions
**At 31 March 2025**
**Depreciation:**
At 1 April 2024
Charge for the year
**At 31 March 2025**
**Net book value:**
**At 31 March 2025**
At 1 April 2024
All housing properties are held freehold.
**13**
**Tangible fixed assets: fixtures, fittings and equipment**
**Cost:**
At 1 April 2024
Additions
**At 31 March 2025**
**Depreciation:**
At 1 April 2024
Charge for the year
**At 31 March 2025**
**Net book value:**
**At 31 March 2025**
At 1 April 2024|**£**
1,893,738
145,035|
||**2,038,773**
1,010,927
44,490|
||**1,055,417**|
||**983,356**|
||882,811|
||**£**
346,349
22,745|
||**369,094**
186,337
39,759|
||**226,096**|
||**142,998**|
||160,012|
## **14 Capital commitments**
No capital expenditure had been authorised by the board or contracted for at 31 March 2025 (2024: £nil).
18
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
## **Year Ended 31 March 2025**
|**Year Ended 31 March 2025**|||
|---|---|---|
|**15**
**Debtors**
Prepayments and accrued income
Other debtors
**16**
**Creditors: amounts falling due within one year**
Trade creditors
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 2024
Released to income during the year
**At 31 March 2025**|**2025**
**£**
6,878
-
**6,878**
**2025**
**£**
9,765
4,952
4,416
1,377
**20,510**
**2025**
**£**
136,783
**136,783**
**2025**
**£**
145,646
(4,447)
**141,199**|**2024**
**£**
5,448
152|
|||**5,600**|
|||**2024**
**£**
13,110
5,146
4,416
1,597|
|||**24,269**|
|||**2024**
**£**
141,230|
|||**141,230**|
|||**2024**
**£**
150,062
(4,416)|
|||**145,646**|
19
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Notes to the Financial Statements (continued)**
**Year Ended 31 March 2025**
## **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 2025**|**2025**
**£**
4,416
136,783
**141,199**|**2024**
**£**
4,416
141,230|
|||**145,646**|
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 2024
Surplus for the year
**At 31 March 2025**|**2025**
**£**
1,522,219
53,429
**1,575,648**|**2024**
**£**
1,464,909
57,310|
|---|---|---|
|||**1,522,219**|
## **20 Company limited by guarantee**
The Society is a company limited by guarantee, not having a share capital.
There are eight members (2024: 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.
20
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited**
## **Detailed Income and Expenditure Account**
## **Year Ended 31 March 2025**
|**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
5,195
Membership - The Abbeyfield Society
and other regulators
12,293
Subscriptions and marketing
792
Auditors Remuneration
12,540
Legal and Professional Fees
4,591
Bank Charges
638
Administration salary costs
93,078
Administrative Expenses
14,325
**Service Costs**
Employee Costs
242,876
Staff Training and Advertising
12,152
Travel and Subsistence
1,908
Food
53,218
Heating and Lighting
49,675
Garden and Other Household costs
14,459
Water rates
4,552
Council Tax
8,216
Alarm System
5,958
Printing, Stationery and Postage
1,239
Telephone
7,045
Gifts and Donations
(1,055)
Computer expenses
692
Social Activities
3,354
Miscellaneous
Window cleaning
Equipment replacement
803
2,185
5,309
Routine Repairs & Maintenance
Major Repairs Expenditure
Depreciation of housing properties
Other depreciation
**TOTAL EXPENDITURE**
**TOTAL SURPLUS FOR THE YEAR**|**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
5,195
Membership - The Abbeyfield Society
and other regulators
12,293
Subscriptions and marketing
792
Auditors Remuneration
12,540
Legal and Professional Fees
4,591
Bank Charges
638
Administration salary costs
93,078
Administrative Expenses
14,325
**Service Costs**
Employee Costs
242,876
Staff Training and Advertising
12,152
Travel and Subsistence
1,908
Food
53,218
Heating and Lighting
49,675
Garden and Other Household costs
14,459
Water rates
4,552
Council Tax
8,216
Alarm System
5,958
Printing, Stationery and Postage
1,239
Telephone
7,045
Gifts and Donations
(1,055)
Computer expenses
692
Social Activities
3,354
Miscellaneous
Window cleaning
Equipment replacement
803
2,185
5,309
Routine Repairs & Maintenance
Major Repairs Expenditure
Depreciation of housing properties
Other depreciation
**TOTAL EXPENDITURE**
**TOTAL SURPLUS FOR THE YEAR**|**Year ended**
**31 March**
**2025**
**£**
750,014
(26,098)
4,447
**728,363**
2,108
5,739
**736,210**
143,452
412,586
42,494
-
44,490
39,759
**682,781**
**53,429**|9,256
8,589
696
11,859
2,960
669
80,499
4,070|**Year ended**
**31 March**
**2024**
**£**
734,026
(62,374)
4,447|
|---|---|---|---|---|
|||||**676,099**
795
8,350|
|||||**685,244**
118,598
386,221
50,384
6,922
37,039
28,770
**627,934**|
||242,876
12,152
1,908
53,218
49,675
14,459
4,552
8,216
5,958
1,239
7,045
(1,055)
692
3,354
803
2,185
5,309||232,995
733
1,834
49,342
55,622
12,065
3,301
7,836
2,489
970
7,557
(325)
199
3,812
1,086
1,874
4,831||
||||||
|||||**57,310**|
This page does not form part of the audited financial statements
21
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
**Hillier Hopkins LLP Chartered Accountants And Tax Advisers**
**Audit Findings Document**
for Abbeyfield (Berkhamsted an Hemel Hempstead) Society Limited 31 March 2025
1
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
Annett House Common Gardens Potten End Berkhamsted Hertfordshire HP4 2RH
Hillier Hopkins LLP Radius House 51 Clarendon Road Watford Hertfordshire WD17 1HP
www.hillierhopkins.co.uk
Dear Trustees
## **Audit Findings Document for The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited for the year ended 31 March 2025**
This Audit Findings Document presents the observations and matters which came to our attention during the conduct of our normal audit procedures which are considered to be significant, as required by International Standard on Auditing (UK) 260.
The audit of the financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. We would be grateful if you could provide comments against each point where appropriate within the report and return it to us in due course.
We would like to take this opportunity to thank the finance team and other staff for their assistance provided during the course of our audit.
Yours faithfully
## _Alex Bottom_
Responsible Individual For and on behalf of Hillier Hopkins LLP
_This report has been prepared solely for your benefit and should not be quoted or copied in whole or in part without our prior written consent. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting, on the basis of the content of this report. The content of this report is not a comprehensive record of all the relevant matters, and may be subject to change._
2
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Contents**
## **Section**
## **Appendices**
**1. Audit approach and status**
- **A. Adjusted audit differences**
**2. Key audit matters**
- **B. Unadjusted audit differences**
**3. Internal control deficiencies**
- **C. Charity Governance Code**
**4. Update on prior year findings**
- **D. Technical developments**
**5. Other communication requirements**
**6. Independence and non-audit services**
- **E. Tax rates and allowances F. Hillier Hopkins at a glance**
**7. Communication with those charged with governance G. Our Core Values and accreditation**
- **H. Other Services**
3
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Audit approach and status**
The audit approach, as detailed in our Audit Planning Document, was determined by our assessment of the audit risk, both in terms of the potential misstatement in the financial statements and of the control environment in which the charity operates.
In summary, our approach has been to:
- update our understanding of the organisation and its environment;
- review the design and implementation of key internal financial control systems; and
- plan and perform an audit with professional scepticism recognising that circumstances may exist that cause the financial statements to be materially misstated. This includes the risk of material misstatements due to non-compliance with laws and regulations and fraud.
## **Opinion**
Our work is complete and our audit report opinion (in accordance with ISAs (UK) 700/705/706) will be: **Unmodified**
## **Status**
> Likely to result in material adjustment or significant change to disclosures Potential to result in material adjustment or significant change to disclosures
- Not considered likely to result in material adjustment or change to disclosures
Hillier Hopkins LLP
4
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Key audit matters**
This section provides commentary on the risks identified in our Audit Planning Document along with a summary of the testing performed and any key issues identified:
|Risks identified at planning
Commentary
1
**Misstatement of income**
Under ISA (UK) 240 there is a rebuttable
presumed risk that revenue recognition
may be materially misstated due to fraud.
To address this risk, we have performed the following key audit procedures:
•
Review and testing of revenue recognition policies
•
Detailed substantive testing of revenue on a sample basis
•
Analytical review to identify and corroborate unusual movements
•
Reviewed sales journals at the period end for unusual transactions
We have not identified any material audit issues in relation to our audit work.
2
**Management override and bias**
Under ISA (UK) 240 there is a non-
rebuttable presumed risk that the risk of
management override of controls is
present in all entities.
To address this risk, we have performed the following key audit procedures:
•
Review of accounting estimate, judgments and decisions including those noted in the critical
accounting estimates and areas of judgement section of the financial statements
•
Testing of journal entries
•
Review of unusual significant transactions
We have not identified any material audit issues in relation to our audit work.|Risks identified at planning
Commentary
1
**Misstatement of income**
Under ISA (UK) 240 there is a rebuttable
presumed risk that revenue recognition
may be materially misstated due to fraud.
To address this risk, we have performed the following key audit procedures:
•
Review and testing of revenue recognition policies
•
Detailed substantive testing of revenue on a sample basis
•
Analytical review to identify and corroborate unusual movements
•
Reviewed sales journals at the period end for unusual transactions
We have not identified any material audit issues in relation to our audit work.
2
**Management override and bias**
Under ISA (UK) 240 there is a non-
rebuttable presumed risk that the risk of
management override of controls is
present in all entities.
To address this risk, we have performed the following key audit procedures:
•
Review of accounting estimate, judgments and decisions including those noted in the critical
accounting estimates and areas of judgement section of the financial statements
•
Testing of journal entries
•
Review of unusual significant transactions
We have not identified any material audit issues in relation to our audit work.|Risks identified at planning
Commentary
1
**Misstatement of income**
Under ISA (UK) 240 there is a rebuttable
presumed risk that revenue recognition
may be materially misstated due to fraud.
To address this risk, we have performed the following key audit procedures:
•
Review and testing of revenue recognition policies
•
Detailed substantive testing of revenue on a sample basis
•
Analytical review to identify and corroborate unusual movements
•
Reviewed sales journals at the period end for unusual transactions
We have not identified any material audit issues in relation to our audit work.
2
**Management override and bias**
Under ISA (UK) 240 there is a non-
rebuttable presumed risk that the risk of
management override of controls is
present in all entities.
To address this risk, we have performed the following key audit procedures:
•
Review of accounting estimate, judgments and decisions including those noted in the critical
accounting estimates and areas of judgement section of the financial statements
•
Testing of journal entries
•
Review of unusual significant transactions
We have not identified any material audit issues in relation to our audit work.|
|---|---|---|
||Risks identified at planning|Commentary|
|1|**Misstatement of income**
Under ISA (UK) 240 there is a rebuttable
presumed risk that revenue recognition
may be materially misstated due to fraud.|To address this risk, we have performed the following key audit procedures:
•
Review and testing of revenue recognition policies
•
Detailed substantive testing of revenue on a sample basis
•
Analytical review to identify and corroborate unusual movements
•
Reviewed sales journals at the period end for unusual transactions
We have not identified any material audit issues in relation to our audit work.|
|2|**Management override and bias**
Under ISA (UK) 240 there is a non-
rebuttable presumed risk that the risk of
management override of controls is
present in all entities.|To address this risk, we have performed the following key audit procedures:
•
Review of accounting estimate, judgments and decisions including those noted in the critical
accounting estimates and areas of judgement section of the financial statements
•
Testing of journal entries
•
Review of unusual significant transactions
We have not identified any material audit issues in relation to our audit work.|
(ISA (UK) 315) "Significant risks often relate to significant non-routine transactions and judgmental matters. Non-routine
Hillier Hopkins LLP
5
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Internal control deficiencies**
This section provides commentary on any weaknesses identified during our testing of the design and implementation of the internal control environment appropriate in accordance with ISA 265. An audit is not designed to test all internal controls or identify all areas of control weakness, it is directed towards forming and expressing an opinion on the financial statements. In consequence, our work cannot be relied upon to disclose any or all issues, or to include all possible improvements in internal control that may exist.
|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
1
**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year
We recommend once the accounting period
has closed, not to back date any accounting
entries.
2
**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.
We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
1
**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year
We recommend once the accounting period
has closed, not to back date any accounting
entries.
2
**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.
We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
1
**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year
We recommend once the accounting period
has closed, not to back date any accounting
entries.
2
**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.
We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
1
**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year
We recommend once the accounting period
has closed, not to back date any accounting
entries.
2
**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.
We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
1
**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year
We recommend once the accounting period
has closed, not to back date any accounting
entries.
2
**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.
We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.|
|---|---|---|---|---|
||Significance|Weakness and potential consequences|Recommendation|Management’s response /
timescale for implementation|
|1||**Creditors**
We noted during testing that some trade
creditors were cleared post audit but back
dated into the previous period. This meant
that the aged creditors schedule did not
agree to the brought balances per the prior
year signed accounts.
Prior year issue noted in current year|We recommend once the accounting period
has closed, not to back date any accounting
entries.||
|2||**Bank**
It was noted that interest was not moved
out of the society deposit account into
income upon maturity. This results in an
understatement of income and
misstatement of balances in the financial
statements.|We recommended that interest should be
transferred from the society deposit account
into income once the deposit matures to
ensure accurate income recognition and
correct presentation of account balances.||
> Significant – risk of significant misstatement
- Deficiency – risk of minor misstatement
**Assessment**
6
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Internal control deficiencies (continued)**
This section provides commentary on any weaknesses identified during our testing of the design and implementation of the internal control environment appropriate in accordance with ISA 265. An audit is not designed to test all internal controls or identify all areas of control weakness, it is directed towards forming and expressing an opinion on the financial statements. In consequence, our work cannot be relied upon to disclose any or all issues, or to include all possible improvements in internal control that may exist.
|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
3
**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.
We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.
4
**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.
We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.
5
**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.
We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
3
**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.
We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.
4
**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.
We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.
5
**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.
We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
3
**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.
We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.
4
**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.
We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.
5
**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.
We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
3
**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.
We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.
4
**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.
We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.
5
**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.
We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
3
**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.
We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.
4
**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.
We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.
5
**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.
We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.|
|---|---|---|---|---|
||Significance|Weakness and potential consequences|Recommendation|Management’s response /
timescale for implementation|
|3||**Creditors**
It was noted that a refund relating to an
invoice was recorded within creditors, when
it should have been credited to the profit
and loss account. This misclassifies income
and overstates liabilities.|We recommend that refunds should be
reviewed to ensure they are correctly
classified in the profit and loss account, not
within creditors, to ensure accurate
reporting of income and liabilities.||
|4||**Creditors**
It was noted that no accruals were recorded
at year-end for audit fees and energy/gas
expenses. This results in an
understatement of liabilities and expenses.|We recommend a robust year-end accruals
process should be implemented to ensure
all known liabilities are accrued, providing a
true and fair view of the financial position.||
|5||**Repairs & Maintenance**
It was noted that assets were recognised
within repairs and maintenance instead of
being capitalised per the capitalisation
policy. This leads to an understatement of
assets and overstatement of expenses.|We recommend assets should be
capitalised in line with the capitalisation
policy. Journals should be processed on the
invoice date or monthly basis to move
assets into additions. Internal controls
should be reviewed accordingly.||
**Assessment**
- Significant – risk of significant misstatement
- Deficiency – risk of minor misstatement
Hillier Hopkins LLP
7
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Internal control deficiencies (continued)**
This section provides commentary on any weaknesses identified during our testing of the design and implementation of the internal control environment appropriate in accordance with ISA 265. An audit is not designed to test all internal controls or identify all areas of control weakness, it is directed towards forming and expressing an opinion on the financial statements. In consequence, our work cannot be relied upon to disclose any or all issues, or to include all possible improvements in internal control that may exist.
|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
6
**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.
We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.
7
**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.
We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
6
**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.
We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.
7
**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.
We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
6
**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.
We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.
7
**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.
We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
6
**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.
We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.
7
**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.
We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.|Significance
Weakness and potential consequences
Recommendation
Management’s response /
timescale for implementation
6
**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.
We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.
7
**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.
We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.|
|---|---|---|---|---|
||Significance|Weakness and potential consequences|Recommendation|Management’s response /
timescale for implementation|
|6||**Assets**
It was noted that the fixed asset register
does not show the exact date of asset
purchase. This affects the accuracy of
depreciation calculations and asset
tracking.|We recommend the fixed asset register
should include the specific purchase date
for each asset to support accurate
depreciation and improve asset
management.||
|7||**Assets**
It was noted that depreciation is applied on
a yearly basis rather than monthly. This
approach can lead to a material
misstatement in the profit and loss account,
particularly where high-value assets are
involved or where assets are acquired
throughout the year. It also results in a
timing mismatch between the use of the
asset and the recognition of the related
expense.|We recommend the depreciation policy
should be reviewed and updated to apply
depreciation on a monthly basis. This will
ensure expenses are matched more
accurately to the periods in which the assets
are used, improving the reliability of the
financial statements and reducing the risk of
material misstatement.||
> **Assessment**
> Significant – risk of significant misstatement
> Deficiency – risk of minor misstatement
8
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Internal control deficiencies (continued)**
This section provides commentary on any weaknesses identified during our testing of the design and implementation of the internal control environment appropriate in accordance with ISA 265. An audit is not designed to test all internal controls or identify all areas of control weakness, it is directed towards forming and expressing an opinion on the financial statements. In consequence, our work cannot be relied upon to disclose any or all issues, or to include all possible improvements in internal control that may exist.
||Significance|Weakness and potential consequences|Recommendation|Management’s response /
timescale for implementation|
|---|---|---|---|---|
|8||**Assets**
It was noted that assets with different
invoice dates were grouped together in the
fixed asset register. This can distort
depreciation and asset lifecycle tracking.|We recommend assets should be recorded
individually in the fixed asset register with
reference to their respective invoice dates to
improve tracking and depreciation accuracy.||
> **Assessment** Significant – risk of significant misstatement Deficiency – risk of minor misstatement
9
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Update on audit findings of prior years**
This section provides an update on the audit findings raised in prior years, and the progress made by Management in remediating the issues identified:
||Significance|Weakness and potential consequences|Recommendation|Management’s response /
timescale for implementation|
|---|---|---|---|---|
|1||**Creditors**
We noted during testing that some trade creditors were cleared
post audit but back dated into the previous period. This meant
that the aged creditors schedule did not agree to the brought
balances per the prior year signed accounts.
We recommended once the accounting period has closed, not to
back date any accounting entries.
Similar issue in current year, see internal control deficiencies tab|||
|2||**Wages**
We noted during testing that the total NI and pension expense
per the accounts did not agree to the payroll reports. This could
lead to wages being materially misstated.
We recommend reconciling the total expense per the payroll
reports to the expense posted in QuickBooks.
No issues noted in current year.|||
> Significant – risk of significant misstatement
Deficiency – risk of minor misstatement
**Assessment**
10
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Other communication requirements:**
This section documents a number of other communication requirements, prescribed by the ISAs which are summarised below:
|ISA|Matter|Auditor findings|
|---|---|---|
|240|Fraud|We have not been made aware of any incidents by yourselves or identified during the course
of our audit any instances of fraud.|
|250|Laws and regulations|We are not aware of any significant incidences of non-compliance.|
|260|Significant qualitative matters:
•
Accounting policies
•
Estimates
•
Judgements|We have reviewed the presentation and accounting of all material qualitative matters in the
financial statements and have nothing to report beyond any other matter detailed in this report.|
|260|Significant difficulties
encountered during the audit|We are pleased to report that we did not encounter any significant difficulties during the course
of our audit.|
|260|Written representations|Representations will be requested from management with regard to specific matters
concerning judgement, estimation and other matters.|
|550|Related parties|We are not aware of any related party transactions which have not been disclosed in the
financial statements.|
11
Hillier Hopkins LLP
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## **Independence and non-audit services**
The primary objective of an audit is for us to provide independent assurance to members that the trustees have prepared the financial statements properly. The credibility of this depends on beliefs concerning the integrity, objectivity and independence of the firm or covered persons and the work that they perform. Therefore all our audits are conducted with integrity, objectivity and independence, as these are the overarching ethical principles. The Financial Reporting Council’s (FRC) Ethical Standard and ISA (UK) 260 require us to give you timely disclosure of matters relating to our independence. We disclose the following to you:
- We confirm that there are no significant facts or matters that impact on our independence as auditors that we are required or wish to draw to your attention.
|Non-audit service|Fees|Threat?|Safeguard(s) in place|
|---|---|---|---|
|Accounts preparation|£2,700|Self-review / management|Informed management – Karen Sheldon
Other non-audit services performed by non-audit staff|
|Payroll Services|£2,202|Self-review / management||
|P11Ds|£203|Self-review / management||
|**Total non-audit services**|**£5,105**|||
12
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Communication with those charged with governance**
International Standard on Auditing (UK) 260 establishes specific reporting obligations on us, as your auditor, to communicate certain matters along with other ISA(UK’s) to those charged with governance. Our Audit Planning and Findings Report form part of this communication.
**----- Start of picture text -----**
Responsibilities Ethics
Overview of audit matters ISA (UK) 260: Scope/timing
ISA (UK) 260:
ISA (UK) 260: Respective ISA (UK) 260:
Compliance with the Ethical
Views about the qualitative responsibilities of auditor Standard with regard to Overview of the planned
aspects of the entity’s and management/those independence and objectivity. scope and timing of the
accounting and financial charged with audit (form, timing and
reporting practices, governance. expected content).
significant matters and
issue arising during the
audit and representations
sought.
Laws & Regulations
ISA (UK) 250:
Communication Non-compliance with laws
and regulations.
Fraud with those
ISA (UK) 240: charged with
Identification or governance
suspicion of fraud Going concern
involving management ISA (UK) 260
and impact on the ISA (UK) 570:
financial statements. Significant matters in
relation to going concern.
Internal controls
Audit report
ISA (UK) 260: Misstatements Related parties
ISA (UK) 705:
Material weaknesses in ISA (UK) 450: ISA (UK) 550:
internal control identified Unadjusted misstatements Significant matters arising in Expected modifications to
during the audit. and material disclosure connection with related the auditor's report, or
emphasis of matter.
omissions. parties.
**----- End of picture text -----**
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Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
**Hillier Hopkins LLP Chartered Accountants And Tax Advisers**
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Adjusted audit differences**
In forming our opinion, we note the following adjusted misstatements identified during the course of our audit:
15
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Adjusted audit differences (continued)**
In forming our opinion, we note the following adjusted misstatements identified during the course of our audit:
16
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Adjusted audit differences (continued)**
In forming our opinion, we note the following adjusted misstatements identified during the course of our audit:
17
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Adjusted audit differences (continued)**
In forming our opinion, we note the following adjusted misstatements identified during the course of our audit:
**----- Start of picture text -----**
12-08-2025 | 13:22 BST
**----- End of picture text -----**
**----- Start of picture text -----**
12-08-2025 | 12:25 BST
**----- End of picture text -----**
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## **Unadjusted audit differences**
In forming our opinion, we note the following unadjusted misstatements (factual, judgemental, projected or arising from a prior period) identified during the course of our audit:
None noted
19
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Technical developments**
## _**Comment:**_
_These changes may have significant effects for some businesses, so it is important to start preparing early so that you are ready for the 1 January 2026._
## **FRS102 – 2nd triennial review published**
Following the consultation period, the Financial Reporting Council (FRC) has now published the ‘Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review 2024’ (“the Amendments”).
The aim of this second periodic review was to produce amendments to FRS 102 to better align the Standard to IFRS, incorporating the IASB’s latest proposed changes to the international financial reporting requirements. Indeed, for those who already prepare their financial statements under IFRS, the above changes will already be familiar to them.
The effective date of the amendments is for accounting periods beginning on or after 1 January 2026, with early application permitted provided all amendments are applied at the same time.
## What are the key changes?
- A new model of revenue recognition (for FRS 102 and FRS 105).
- A new model of lease accounting (for FRS 102 only).
- Various other incremental improvements and clarifications.
_If you’re not sure how the changes affect your business, please contact one of our experts who can help you understand the implications and prepare your accounts in plenty of time._
## Looking at the detail:
- Revenue recognition - a new FRS 102 Section 23 Revenue, setting out a five-step model aligned to IFRS 15. 1. Identify a contract with a customer, 2. Identify promises within the contract 3. Determine the transaction price 4. Allocate the transaction price to the promises 5. Recognise revenue when or as the entity satisfies the promise.
- Leases - a new FRS 102 Section 20 Leases, which will require almost all leases to be brought on the balance sheet if you’re a lessee. Accounting for lessors will remain largely unchanged. These new requirements mean recognising a right-of-use (ROU) asset in respect of the lease contract, and a corresponding lease liability, being the present value of remaining payments under the lease.
Full text: https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/uk-accounting-standards/frs-102/
20
Hillier Hopkins LLP
Docusign Envelope ID: F97AFCC9-D97C-4216-9599-A4DC483F5051
## **Technical developments – FRS 102 (update) Revenue**
On 27 March 2024, the FRC issued amendments to FRS 102 and other FRSs following the conclusion of its second periodic review of the standards. These amendments effectively align FRS 102 with IFRS for accounting revenue and lease transactions (though some differences remain). The amendments are effective for accounting periods beginning on or after **1 January 2026** , with early application permitted.
|Revenue recognition impact|Details|
|---|---|
|**In terms of revenue recognition, businesses most likely**
**to be impacted by these changes will be businesses**
**that have long-term contracts or provide services, such**
**as software companies, professional services and**
**construction companies – rather than ship and bill**
**businesses.**
Contract terms will direct the accounting conclusion on
whether revenue can be recognised over time, or at a point
in time.
It is anticipated that entities that offer ‘bundled contracts’,
‘warranties’, offer variable consideration or have significant
financing components will be the most directly affected.
This may lead to significant changes to the way revenue
was previously recognised. Current FRS 102 guidance
focuses more on when risks and rewards are transferred to
the customer, rather than when promises under the contract
are fulfilled.|The five-step model works as follows:
•
Step 1: Identify the contract(s) with a customer;
•
Step 2: Identify the performance obligations in the contract;
•
Step 3: Determine the transaction price;
•
Step 4: Allocate the transaction price to the performance obligations in the
contract; and
•
Step 5: Recognise revenue when (or as) the entity satisfies a performance
obligation.
Management will need to review their contracts in detail to apply the guidance
and this may not be as simple as it appears at first glance.
On transition, there is the option to either restate the prior year results or adjust
the opening reserves as if the standard had always applied.
Performing an initial impact assessment is advised to understand the likely areas
of impact for your financial statements. These amendments may require changes
to systems and processes to be in place for 1 January 2026. This may involve
updating charts of accounts, assessing system capabilities, and designing
revised processes to ensure compliance.|
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## **Technical developments – FRS 102 (update) Leases**
|Leases impact|Details|
|---|---|
|**There is no longer a distinction made between**
**operating and finance leases.**
**Any business with operating leases, as a lessee will see**
**substantial changes to their EBITDA figures and**
**balance sheet presentation because of the**
**amendments.**
**So for instance, entities with lease portfolios of retail**
**spaces, vehicle fleets will be significantly impacted.**
**On the balance sheet, both gross liabilities and assets**
**will increase as a result of bringing the lease liability**
**and the right of use (RoU) asset on to the balance**
**sheet.**
**Operating profit will be impacted (most likely increase),**
**as the rent/ lease expense will now be accounted for as**
**depreciation (above operating expenses) and lease**
**interest (below operating expenses).**
There will be exemptions available for short term leases and
low value assets.
Accounting by lessors has not been significantly changed.|If amounts have previously been calculated in accordance with IFRS 16 for group
reporting purposes, the use of these amounts on transition is permitted.
Otherwise, the RoU asset recognised is equal to the liability on transition,
adjusted by the amount of any prepaid or accrued lease payments on the balance
sheet before application of the amendments.
Any cumulative effect of initially applying the standard is recorded as an
adjustment to opening retained earnings.
On transition, restatement of comparatives is not permitted.
Entities will need to collect data, make and document significant estimates and
judgements, and again have systems in place ahead of 1 January 2026. Simple
questions to get started include:
•
What types of leases do you have?
•
Do you have copies of all your lease agreements and are they available for
review in order to identify and reflect key terms in the financial statement
amounts?
•
Does the finance team have the required knowledge on the new lease
accounting requirements or is further training required?|
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## **Technical developments**
## **Artificial intelligence (AI) in the accountancy sector**
The ICAEW has published a series of articles on the topic. Their site contains a wealth of resource for those looking to leverage the current opportunities, and gain some insight into ‘what next’ in accounting.
https://www.icaew.com/technical/technology/artificial-intelligence/generative-ai-guide#
Machine learning and other AI techniques are not new, but they are rapidly evolving and transforming various domains. Business and accounting are among the fields that can benefit from AI, but they have not yet fully embraced its potential. To create a positive vision of the future, we need to understand how AI can address the challenges and opportunities in accounting and business, as well as the skills and competencies that accountants need to collaborate with intelligent systems.
The ICAEW highlight the AI tools that look to improve efficiency, insight and value including:
- Document generation: drafting documents such as proposals and reports, or producing ideas for presentations;
- Client communication: supporting client engagement, communication and correspondence tasks such as drafting letters, emails and tailored reminders;
- Document translation and summarisation: reading long documents such as contracts and providing a summary with key insights, or translating a document to another language;
- Assisting in the automation of repetitive, low-level judgement tasks, such as account categorisation;
- Software development: writing code and scripts to help with tasks, such as account reconciliations, fraud detection and complex data manipulation and analysis;
- Collating of information (for example producing a comparative list of target clients).
## _**Comment:**_
_Artificial intelligence (AI) systems are improving quickly and can be very powerful. They provide outputs that can be extremely accurate thus replacing and, in some cases, far superseding human efforts. IT systems and controls within your organisation are now, more than ever an important pillar of a successful enterprise._
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## **Technical developments**
## **Going Concern – in an uncertain world**
For those responsible for the preparation and/or approval of financial reports, there remains an ongoing challenge in ensuring financial statements contain the correct ‘basis’ and disclosures with regard to their ‘Going Concern’ state. With a backdrop of an uncertain macroeconomic environment caused by pandemic, war, supply-side challenges and corporate failures on the high street, the FRC has (re)issued its guidance on the topic:
https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/annual-corporatereporting/guidance-on-going-concern-basis/
The following key questions must be considered:
- Has management undertaken an adequate going concern assessment?
- Have the financial statements been prepared on the correct basis (going concern, or basis other than)?
## _**Comment:**_
_The assessment of going concern is very much an accounting issue and not just an audit one._
_If you are not sure on how to assess going concern a your next period end report, please contact one of our experts who can help understand the implications and help you prepare the accounts accordingly._
- Are the disclosures (material uncertainties) in the financial statements sufficient to ensure that a true and fair view is presented?
The assessment should match the entity’s nature and size. For organisations where there is clearly some doubt as to their going concern status, the assessment would be expected to cover some or all of the following issues:
- The implications of a pandemic, war, inflation, or other ‘economic shock’ on income, supplies and staff.
- The expected future cash flows of the organisation for at least the period that should be covered by the review, i.e. twelve months from the date of the approval of the financial statements. Sensitize the key assumptions.
- The availability of additional sources of finance (and enforceability of) should it be required.
- Consideration of dependency on any key suppliers and staff and the implications if difficulties arise.
- If entity is part of a group, consideration of how going concern issues may be affecting the wider group and the implications for the entity.
- Consideration of any other known contingent liabilities and the potential impact on cash flow.
Management must form a conclusion based upon the issues on whether the entity is a going concern or not, and the implications for the basis of preparing the financial statements.
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## **Technical developments**
## **Companies House Reform**
The Government’s Economic Crime and Corporate Transparency Bill achieved royal assent on the 26 October 2023. The Bill includes a series of significant reforms designed to improve the quality and value of financial information on the UK companies register, combat economic crime, whilst supporting growth in the UK.
The Bill (and Whitepaper preceding it) includes the following:
- All new and existing company directors, (and equivalents for other registrable entities), Persons with Significant Control (PSC) and anyone else submitting filings will need a verified account at Companies House.
- All companies will be required to file accounts digitally, with full tagging.
- Small companies will no longer have the option to prepare and file abridged accounts and will be required to file both their profit and loss account and directors’ report (ie, the option to file "filleted" accounts will be removed).
- Micro-entities will also be required to file their profit and loss account but will continue to have the option to not prepare or file a directors’ report.
- Increased powers granted to the Registrar to enable more investigations and challenges of filings.
## _**Comment:**_
_Like others in the profession, we support the Government’s Bill to improve the quality of records held at Companies House but remain cautious regarding the challenges ahead._
- Limiting the number of times a company can shorten its accounting reference period (ARP) to align with the restrictions around extending its ARP.
- Options to enable companies to file financial information once a year with Government will be explored although there are no firm plans in this regard at this time.
- Time periods allowed for filing accounts will not be reduced at this time.
- Companies House fees are expected to rise following powers granted to cover its own expanded powers/costs.
Details: https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-bill-2022-factsheets
**When?** The timeline for implementing the key provisions is expected to be phased over the coming years, with the majority expected in 2025.
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## **Technical developments**
## **Charity Governance Code**
A series of scandals involving some of our most respected charities has damaged public perceptions and trust in the sector. Developed by charities and backed by the Charity Commission, the Charity Governance Code was launched to help restore public trust. It focusses attention around 7 principles of good governance and makes some key recommendations. Since its launch, the code has gained wide support from across the sector and early adopters have praised its clarity and accessibility, one charity describing it as a “no-brainer”. So what are the principles and how do you adopt it?
The code recommends taking each of the 7 principles and “apply or explain”. The seven principles are:
- **Organisation purpose**
- **Leadership**
- **Integrity**
- **Decision making, risk and control**
- **Board effectiveness**
- **Diversity**
- **Openness and accountability**
The code also recommends that there should be between 5 and 12 trustees and that they should each not serve on the board longer than 9 years.
The code has its own website https://www.charitygovernancecode.org/en/front-page where you will find an explanation of the principles and resources to help you understand and adopt them. There are two versions of the code depending on whether you are a small or a large charity and the website also provides a useful diagnostic tool to help you assess your current position and identify improvements. This is a fantastic starting point and we would recommend all our charity and academy school clients download this tool if they haven’t already.
How you adopt the code is entirely up to you, but using a process that works for you and your own organisation is important. Some charities have set up working groups or a cross-sectional task force to implement the code, others have built it into the trustee meeting agenda so that it is addressed and reviewed on a regular basis. We are also encouraging clients to include the code in their annual trustee reports to help your stakeholders understand how you are continuing to make improvements. To find out more or to make a start, download the diagnostic tool from https://www.charitygovernancecode.org/en/pdf **.**
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## **Technical developments**
## **Fraud**
Cyber fraud is increasing in volume and scale and unfortunately organisations of all sizes are being targeted. A common fraud occurs when a fraudster contacts a member of staff with responsibility for authorising financial transfers and requests a one off, typically urgent, bank transfer. Contact is by email and from a similar email address to the one a trustee or member of the senior leadership team would use. These small differences are often hard to spot and, if the request is actioned, can result in substantial financial losses for the organisation.
There are things that can be done to protect against cyber fraud:
- Any urgent payment requests from the trustee should be confirmed verbally. Often a fraudster will target when they know the trustee is unavailable, such as on holiday, and where this is the case payment should not be made.
- Emails (and letters) from a supplier requesting a change of bank details should be confirmed verbally with your usual contact using your usual telephone number. Do not use the telephone number on the change of details request.
- Do not open attachments or click on links from unknown sources. For a link, hover your mouse pointer over the link to reveal its true destination. Beware if this is different from the email text.
- Ensure your anti-virus software is up to date. Malware can be used to remotely access accounts packages and edit existing beneficiaries. The payment file created by the accounts package will then use the fraudster’s amended accounts details, rather than the genuine supplier or staff details.
- Ransomware is becoming more common. One way to protect yourself from such an attack is to take regular backups stored remotely from your computer or network.
## _**Comment**_
_We recommend that clients carry out a fraud risk assessment to determine their level of fraud exposure. Training should be given to all staff to ensure that they are aware of the risks, which will minimise the opportunity for frauds to be successful. More advice and information can be found at the National Cyber Security Centre's website: https://www.cyberessentials.ncsc.gov.uk/_
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## **Tax rates and allowances 2024/2025**
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## **Tax rates and allowances 2024/2025**
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## **Our core values and accreditation**
## **Our Core Values**
Our firm’s philosophy of “ _friendly expertise_ ” is built on a commitment to our Core Values. You will find our team knowledgeable, friendly and cooperative. They will spend time with you to really understand the business, actively engaging and collaborating with you to help you meet your challenges and achieve your goals. Our Core Values were developed collaboratively by our staff and principals. They underpin our training and review process and our appraisal and personal development programme.
- Our Core Values are: Do the right thing, Expertise, Ownership, Positive collaboration and Making time.
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## **Quality assurance**
Hillier Hopkins LLP undergoes a number of quality assurance measures including the following:
- Chartered Accountants: We are fully subscribed to the training and technical requirements as set down by the Institute of Chartered Accountants in England and Wales (ICAEW) and subject to their periodic QAD quality checks.
- Internal file reviews: Performed throughout the year by managers from across the firm.
- External audit file reviews: Performed by Mercia (Professional Training and Support Services) and other ICAEW accredited bodies.
## **Investors in People**
Hillier Hopkins LLP invests heavily in staff training and has held the "Investor in People" (IIP) accreditation since 1996. We were one of the first accountancy firms in Hertfordshire to be awarded the IIP accreditation.
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## **Sustainability**
The staff and Principals at Hillier Hopkins are committed to having a positive impact on the world. As independent members of TGS, a global network of professionals, we are also signatories to the UNs Global Compact on Sustainable Development Goals (SDGs).
## **Highlights from our Sustainability Impact Report**
## **Next steps**
Employee engagement and building partnerships with other organisations and groups have been key to our successes so far. Regular staff surveys help to understand sentiment and set priorities for our sustainability programme.
Where do we go from here? Sustainability reports are not just about looking back, but also looking forward. Here we highlight three of our highest priorities to tackle next.
## **Community action**
In 2023, litter picks have collected 270 bags of refuse and recycling from our community spaces.
## **Procurement and waste**
In 2023, our soft plastics collection has removed 63 bags of rubbish from landfill.
## **Education**
Design a programme of basic business finance for beginners and offer to users of local organisations and charities. To inspire entrepreneurship and provide opportunities to prosper.
## **We're reducing our carbon emissions**
Our energy supply (where we are able to independently select energy suppliers for our offices) is 100% renewable
## **Carbon reduction**
Develop a carbon reduction plan with ambitious targets for reducing carbon emissions throughout our offices.
## **Equality**
Develop a mentoring programme to provide encouragement and inspiration all employees to progress and excel.
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## **Other Services**
_**Our experts - here to help you** Hillier Hopkins has a variety of experts within the firm who are available to work with you (*)._
_They are on hand to provide both long term, proactive advice and practical solutions to any business challenges and opportunities that arise._
_For further information, please speak to your regular contact, or visit our website:_
_https://hillierhopkins.co.uk/services_
_Compliance and advisory on: A reliable and efficient tax raising finance & EIS share_ **Business Personal tax** _compliant service ownership & EMI, R&D &_ **finance and tax compliance and tax** _Tax planning such as Capital Patent Box, property,_ **advisory** _Gains Tax and estate planning_ **planning** _taxation - SDLT, ATED & International tax Capital Allowances_
_Free up internal resources with our reliable and accurate outsourced services such as bookkeeping, management accounts, payroll and company secretary_
_Cross border VAT_ **VAT and Business** _Making Tax Digital and bridging_ **Indirect Taxes** _software_ **compliance support and payroll** _Brexit advisory_ **and advisory**
_Delivered by SATIS Wealth, part of the Hillier Hopkins family Highly experienced team with Big4 and mid-tier backgrounds Retirement Planning and investment structuring_
_Strategy and planning facilitation and support for non-exec directors such as: exit and_ **Board advisory Wealth and support management** _succession planning, mergers & acquisitions, selling the business_
* Non-audit services are subject to certain Ethical Standard safeguards, or in some cases are prohibited.
_Experienced team to handle any Recommended tax efficient employee benefits_ **Efficient and Tax** _investigations by, or disputes_ **accurate P11d investigation** _with HMRC Take care of time consuming_ **service and disputes** _Negotiating on your behalf P11d forms and annual Fee protection service available submission to HMRC to clients_
Hillier Hopkins LLP
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Independent member of
## **hillierhopkins.co.uk**
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**The Abbeyfield (Berkhamsted and Hemel Hempstead) Society Limited Annett House Common Gardens Potten End Berkhamsted Hertfordshire England HP4 2RH**
Hillier Hopkins LLP 51 Clarendon Road Watford Hertfordshire QD17 1HP
Dear Sirs
The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the association’s financial statements for the year ended 31 March 2025. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.
## **General**
- 1 We have fulfilled our responsibilities as directors / trustees as set out in the terms of your engagement letter, under the Companies Act 2006 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you.
- 2 All the transactions undertaken by the association have been properly reflected and recorded in the accounting records.
- 3 All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the association, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission.
- 4 The financial statements are free of material misstatements, including omissions.
- 5 The effects of uncorrected misstatements (as set out in the Audit Findings Document) are immaterial both individually and in total.
## **Internal control and fraud**
- 6 We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud.
- 7 We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements.
- 8 We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others.
## **Assets and liabilities**
- 9 The association has satisfactory title to all assets and there are no liens or encumbrances on the association’s assets, except for those that are disclosed in the notes to the financial statements.
- 10 All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate.
- 11 We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.
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## **Accounting estimates**
- 12 Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
## **Legal claims**
- 13 We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for, and disclosed in, the financial statements.
## **Laws and regulations**
- 14 We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
## **Related parties**
- 15 Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements.
## **Subsequent events**
- 16 All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed.
## **Going concern**
- 17 We believe that the association’s financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the association’s needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the association’s ability to continue as a going concern need to be made in the financial statements.
## **Grants and donations**
- 18 All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income.
Each director has taken all the steps that he ought to have taken as a director in order to make themself aware of any relevant audit information and to establish that you are aware of that information.
Yours faithfully
**Printed name:** Philip Ashbrook
**Signed:**
..................................................................................... Signed on behalf of the board
Date: 12-08-2025 | 13:22 BST