REGISTERED COMPANY NUMBER: 01084439 (England and Wales) REGISTERED CHARITY NUMBER: 265137
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 30 September 2020
for
The Abbeyfield West Herts Society Limited
Haines Watts Chartered Accountants 4 Claridge Court Lower Kings Road Berkhamsted Hertfordshire HP4 2AF
The Abbeyfield West Herts Society Limited
Contents of the Financial Statements for the Year Ended 30 September 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 to 6 |
| Notes to the Financial Statements | 7 to 11 |
| Detailed Statement of Financial Activities | 12 |
The Abbeyfield West Herts Society Limited
Report of the Trustees for the Year Ended 30 September 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Society exists to provide a happy environment within the community of Abbots Langley for supported living accommodation for up to 12 elderly residents. The Society owns a property 'Tannerswood' at 11 Greenways in Abbots Langley which it maintains and runs for this purpose.
KPIs
| KPIs | ||
|---|---|---|
| Metric | 2020 | 2019 |
| Reinvestment | Nil | Nil |
| New Supply Delivered | Nil | Nil |
| Gearing % | 2.62% | 9.74% |
| EBITDA | £31,868 | (£11,115) |
| Headline Social Housing costs per unit | Nil | Nil |
| Operating Margin (letting only) | 4.4% | (7.5%) |
| Operating Margin (overall) | 15.8% | (2.8%) |
| ROCE | 16.4% | (0.1%) |
FINANCIAL REVIEW
Financial position
The year ended 30 September 2020 has seen a significant increase in rental income (+34%) due to improved occupancy of the property. In addition we received an extremely generous donation as a result of a legacy from a former resident as well as other donations.
Despite the increased occupancy of the house, total expenditure increased by only 6%, resulting in a significant improvement in operating margins. This enabled generation of a substantial surplus for the year which has compensated for the previous year's deficit following the aborted merger with Garrad House and the replacement of the previous Trustee Board (which had proposed closure of the house) with the current Board.
Covid-19 Pandemic
We are particularly pleased that the improved financial position and increased occupancy levels were achieved against a background in the second half of the year of the Covid-19 pandemic. Preemptive action was taken, in advance of national government lockdown in March 2020, to limit visits to the property and limit movement of residents outside the property; and to implement additional cleaning measures and personal protective equipment for staff. Government guidelines have been followed at all times (in so far as applicable to supported living accommodation) as they have been frequently updated and amended. No cases of Covid were recorded at the property during the year in question, although very sadly one resident has contracted the disease and died early in 2021 following a short trip outside the property for a medical appointment. All other residents have been tested several times and no further cases have been identified in any residents. All residents bar one have now received their first vaccine and we sincerely hope that we may have avoided any further impact of the pandemic.
Financial outlook
The Trustees are now confident that the house is sustainable on current basis and significant redecoration and refurbishment is planned for the coming year in order to ensure the house remains an attractive and welcoming home for residents.The major loan taken out historically for installation of the lift and other works will be fully paid off during the coming year which will reduce monthly outgoings thereby giving greater flexibility in case of temporary reduction in rental income due to vacancies and freeing up further resources for reinvestment into the property.
Page 1
The Abbeyfield West Herts Society Limited
Report of the Trustees for the Year Ended 30 September 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
01084439 (England and Wales)
Registered Charity number
265137
Registered office
Tannerswood 11 Greenways Abbots Langley Watford Hertfordshire WD5 0EU
Trustees
Mr M G Coultrup Retired Mr M T Bedford Ms R Gabriel Retired Mr J King Retired Mr S R Moore Retired Mrs E A Moore Retired Ms C H Quinton Retired
Company Secretary
Mr M G Coultrup
Independent Examiner Haines Watts Chartered Accountants 4 Claridge Court Lower Kings Road Berkhamsted Hertfordshire HP4 2AF Approved by order of the board of trustees on ............................................. and signed on its behalf by:
.............................................................. Mr M T Bedford - Trustee
Page 2
Independent Examiner's Report to the Trustees of The Abbeyfield West Herts Society Limited
Independent examiner's report to the trustees of The Abbeyfield West Herts Society Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Shaun Brownsmith FCA ICAEW Haines Watts Chartered Accountants 4 Claridge Court Lower Kings Road Berkhamsted Hertfordshire HP4 2AF
Date: .............................................
Page 3
The Abbeyfield West Herts Society Limited
Statement of Financial Activities for the Year Ended 30 September 2020
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 20,920 Investment income 2 154,563 Total 175,483 EXPENDITURE ON Raising funds 492 Other 147,271 Total 147,763 NET INCOME/(EXPENDITURE) 27,720 RECONCILIATION OF FUNDS Total funds brought forward 141,673 TOTAL FUNDS CARRIED FORWARD 169,393 |
Restricted fund £ - - - - - - - - - |
30.9.20 Total funds £ 20,920 154,563 175,483 492 147,271 147,763 27,720 141,673 169,393 |
30.9.19 Total funds £ 5,593 115,299 120,892 - 138,877 138,877 (17,985) 159,658 141,673 |
|---|---|---|---|
The notes form part of these financial statements
Page 4
The Abbeyfield West Herts Society Limited
Balance Sheet 30 September 2020
| Unrestricted fund Notes £ FIXED ASSETS Tangible assets 7 384,653 Social investments 8 (279,924) 104,729 CURRENT ASSETS Cash at bank and in hand 69,105 CREDITORS Amounts falling due within one year 9 (4,085) NET CURRENT ASSETS 65,020 TOTAL ASSETS LESS CURRENT LIABILITIES 169,749 CREDITORS Amounts falling due after more than one year 10 (356) NET ASSETS 169,393 FUNDS 12 Unrestricted funds TOTAL FUNDS |
Restricted fund £ - - - - - - - - - |
30.9.20 Total funds £ 384,653 (279,924) 104,729 69,105 (4,085) 65,020 169,749 (356) 169,393 169,393 169,393 |
30.9.19 Total funds £ 388,801 (279,924) 108,877 46,597 (9,852) 36,745 145,622 (3,949) 141,673 141,673 141,673 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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continued...
The Abbeyfield West Herts Society Limited
Balance Sheet - continued 30 September 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. Mr M T Bedford - Trustee
The notes form part of these financial statements
Page 6
The Abbeyfield West Herts Society Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
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continued...
The Abbeyfield West Herts Society Limited
Notes to the Financial Statements - continued for the Year Ended 30 September 2020
2. INVESTMENT INCOME
| Rents received Deposit account interest |
30.9.20 £ 154,532 31 154,563 |
30.9.19 £ 115,250 49 |
|---|---|---|
| 115,299 |
3. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 30.9.20 | 30.9.19 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 4,148 | 5,922 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2020 nor for the year ended 30 September 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 September 2020 nor for the year ended 30 September 2019.
5. STAFF COSTS
The average monthly number of employees during the year was as follows:
| Staff No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 5,593 Investment income 115,299 Total 120,892 EXPENDITURE ON Other 138,877 NET INCOME/(EXPENDITURE) (17,985) |
30.9.20 12 Restricted fund £ - - - - - |
30.9.19 10 Total funds £ 5,593 115,299 120,892 138,877 (17,985) |
|---|---|---|
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
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continued...
The Abbeyfield West Herts Society Limited
Notes to the Financial Statements - continued for the Year Ended 30 September 2020
| 6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 7. TANGIBLE FIXED ASSETS COST At 1 October 2019 and 30 September 2020 DEPRECIATION At 1 October 2019 Charge for year At 30 September 2020 NET BOOK VALUE At 30 September 2020 At 30 September 2019 8. SOCIAL INVESTMENTS MARKET VALUE At 1 October 2019 and 30 September 2020 NET BOOK VALUE At 30 September 2020 At 30 September 2019 |
ACTIVITIES - Unrestricted fund £ 159,658 141,673 Freehold property £ 487,340 98,539 4,148 102,687 384,653 388,801 |
continued Restricted Total fund funds £ £ - 159,658 - 141,673 Fixtures and fittings Totals £ £ 48,023 535,363 48,023 146,562 - 4,148 48,023 150,710 - 384,653 - 388,801 Other investments £ (279,924) (279,924) (279,924) |
|---|---|---|
This is a grant received to pay for the property which is due back to the government if the charity was to ever sell the property.
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continued...
The Abbeyfield West Herts Society Limited
Notes to the Financial Statements - continued for the Year Ended 30 September 2020
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN | ONE YEAR | ONE YEAR | |||
|---|---|---|---|---|---|---|
| 30.9.20 | 30.9.19 | |||||
| £ | £ | |||||
| Bank loans and overdrafts (see note 11) | 4,085 | 9,852 | ||||
| 10. | CREDITORS: AMOUNTS FALLING DUE AFTER | MORE THAN ONE | YEAR | |||
| 30.9.20 | 30.9.19 | |||||
| £ | £ | |||||
| Bank loans (see note 11) | 356 | 3,949 | ||||
| 11. | LOANS | |||||
| An analysis of the maturity of loans is given below: | ||||||
| 30.9.20 | 30.9.19 | |||||
| £ | £ | |||||
| Amounts falling due within one year on demand: | ||||||
| Bank loans | 4,085 | 9,852 | ||||
| Amounts falling between one and two years: | ||||||
| Bank loans - 1-2 years | 185 | 3,601 | ||||
| Amounts falling due between two and five years: | ||||||
| Bank loans - 2-5 years | 171 | 348 | ||||
| 12. | MOVEMENT IN FUNDS | |||||
| Net | ||||||
| At | movement | At | ||||
| 1.10.19 | in funds | 30.9.20 | ||||
| £ | £ | £ | ||||
| Unrestricted funds | ||||||
| General fund | 141,673 | 27,720 | 169,393 | |||
| TOTAL FUNDS | 141,673 | 27,720 | 169,393 | |||
| Net movement in funds, included in the above are as follows: | ||||||
| Incoming | Resources | Movement | ||||
| resources | expended | in funds | ||||
| £ | £ | £ | ||||
| Unrestricted funds | ||||||
| General fund | 175,483 | (147,763) | 27,720 | |||
| TOTAL FUNDS | 175,483 | (147,763) | 27,720 |
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continued...
The Abbeyfield West Herts Society Limited
Notes to the Financial Statements - continued for the Year Ended 30 September 2020
12. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS Comparative net movement in funds, included in the above Unrestricted funds General fund TOTAL FUNDS |
At 1.10.18 £ 159,658 159,658 are as follows: Incoming resources £ 120,892 120,892 |
Net movement At in funds 30.9.19 £ £ (17,985) 141,673 (17,985) 141,673 Resources Movement expended in funds £ £ (138,877) (17,985) (138,877) (17,985) |
|---|---|---|
13. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 September 2020.
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The Abbeyfield West Herts Society Limited
Detailed Statement of Financial Activities for the Year Ended 30 September 2020
| INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Rents received Deposit account interest Total incoming resources EXPENDITURE Other trading activities Bank loan interest Support costs Finance Bank charges Freehold property Fixtures and fittings Information technology Wages Pensions Rates and water Repairs and renewals General Administration Housekeeping Total resources expended Net income/(expenditure) |
30.9.20 30.9.19 £ £ 20,920 5,593 154,532 115,250 31 49 154,563 115,299 175,483 120,892 492 - - 996 4,148 4,148 - 1,774 4,148 6,918 77,970 72,942 2,788 1,501 11,237 9,730 16,397 24,922 15,000 8,648 19,731 14,216 143,123 131,959 147,763 138,877 27,720 (17,985) |
|---|---|
This page does not form part of the statutory financial statements
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