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2022-03-31-accounts

ABBEYFIELD TIVERTON SOCIETY LIMITED

UNAUDITED FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

Contents Page
Reference and administration details 1
Report of the committee 2-3
Reporting accountants’ report 4
Statement of comprehensive income 5
Statement of financial position 6
Statement of changes in reserves and equity 7
Statement of cash flows 8
Notes to the financial statements 9-12

Company Number 01095865 (England & Wales) Homes and Communities Agency Number H0559 Charity Commission Number 265782

1 ABBEYFIELD TIVERTON SOCIETY LIMITED REFERENCE AND ADMINISTRATION DETAILS

Charity number 265782
Company number 01095865
Homes and Communities
Agency Number H0559
Address Duffield House
2 St Pauls Square
Tiverton
Devon
EX16 5HZ
Committee members Mr David J Halestrap - Chairman
Mr Brian Pocock
Mrs Ann Waterman
Mrs Pat Dalby
Mrs Sian Tucker (resigned July 2021)
Mr Matt Shaw
Mrs Sharon Bradshaw
Mr Mike Shaw - Former Treasurer (resigned April 2022)
Mrs Kathy Beechen - Interim Treasurer (appointed February 2022)
Operations manager Mrs R Delafield (appointed January 2022)
Housekeeper Mrs K Sheppard (resigned January 2022)
Mrs L Jonck (appointed January 2022)
Accountants Aspen Waite South West
Chartered Accountants
21 Bampton Street
Tiverton EX16 6AA
Main bankers Barclays Bank plc
24 Fore Street
Devon EX16 6LE

2 ABBEYFIELD TIVERTON SOCIETY LIMITED REPORT OF THE COMMITTEE

The Society is a Registered Social Housing Provider controlled by the committee members detailed on page 1.

The members of the committee have pleasure in presenting their annual report and financial statements for the year ended 31 March 2022.

OBJECTIVES AND ACTIVITIES

Summary of the objects of the charity set out in its governing document

The relief and support of elderly persons of all classes suffering from the disabilities of old age or otherwise in need.

The spreading of Christian principles to all human relationships and the application of humanitarian aims to promote the relief of the elderly.

To provide further education in the sphere of voluntary work, social work and similar activities so as to inculcate the principles of good citizenship.

Such other purposes recognised by English Law as charitable as the society shall determine from time to time.

The Society has had due regard to guidance published by the Charity Commission on public benefit and certify compliance with the Governance and Financial Viability Standard published by the Home and Communities Agency. The Trustees believe this is achieved via the charity's objectives and activities.

Summary of the main activities in relation to these objectives

The provision of sheltered accommodation for the elderly at its premises situated at numbers 2, 3 and 4 St Paul’s Square together with support and companionship.

Additional details of objectives and activities

The Society is run by a committee of volunteers.

ACHIEVEMENTS AND PERFORMANCE

Summary of the main achievements of the charity during the year

Since the beginning of the Covid 19 pandemic in March 2020, our priority has been the welfare of our staff and residents. During the serious continuing Coronavirus pandemic, restrictions were less than the previous year, however, in spite of continuing advice and measures taken to reduce the risk of infection entering the home, the first case occurred in February, and thereafter all but one resident were affected as well as two key staff members. By May 2022 unrestricted indoor visiting could resume without the need for any personal protective equipment

During the year two residents have moved on and sadly one died. Vacancies inevitably have a negative impact on income, however, we are now pleased to report full occupancy. The Society’s webpage on the Abbeyfield website and virtual tour have proved a good means of advertising.

It has been another difficult year for our staff and they have again coped wonderfully with the necessary restrictions and change. Our housekeeper, Kathy Sheppard, retired in January 2022 and her place has been taken by Lisa Jonck. An operations manager, Rachael Delafeild, was also appointed in January to carry out the day to day administration and management of the house. This will enable the Executive Committee to take a more strategic role.

Adequate provision was made in the budget for maintenance and repairs but this was overspent during 2021-22 due to delayed and unexpected works.

FINANCIAL REVIEW

Brief summary of the charity’s policy on reserves

Abbeyfield Tiverton Society Ltd sets its rents to ensure that 10-15% of its income is added to reserves each year but given the restriction of the pandemic and voids we haven't been able to add to reserves this year, instead we've drawn down on previous years.

Our reserves are invested for funding future developments of Duffield House.

Financial result

After providing for outgoings of a revenue nature there is a net deficit for the year of £17,876 (2021 surplus £7,918). The balance of revenue reserves carried forward to future years amounts to £1,466,798 (2021 £1,465,276). The Society is able to meet all of its obligations.

Property values

The market value of the freehold properties, in the opinion of the committee, is in excess of the value shown in the balance sheet but the expenses of a professional valuation would not be warranted.

PLANS FOR FUTURE PERIODS

To continue to provide sheltered accommodation for the elderly and maintain the premises in a good state of repair.

3

ABBEYFIELD TIVERTON SOCIETY LIMITED

REPORT OF THE COMMITTEE

(CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Type of governing document Memorandum and Articles of Association How the charity is constituted Company limited by guarantee Committee selection method Appointed by existing committee members

Value for Money Statement 2021-22

The Society’s approach to Value for Money is to achieve the objectives of low costs, high productivity and successful outcomes. The primary aim is to provide high quality and comfortable sheltered housing to alleviate loneliness for older people. With Value for Money in mind, the Executive Committee sets rents at affordable levels and approves a budget annually which is monitored regularly. A surplus is built into the budget to provide for expenditure in future years. The unit cost was £1928 (£691 2020-21) and the operating margin was -22% (3% 2020-21) (metrics 5 and 6). Sufficient funds are therefore available from reserves to undertake larger projects and renovations when required. The Society reinvests in the property in order to maintain it to high standards. In 2021-22 investment was 2.15% (0.77% 2020-21) and return on capital -1.39% (0.17% 2020-21) (metrics 1 and 7).

The Society is committed to provide a high quality service to the residents. This means that repairs must be carried out speedily and the property is well maintained. Contracts for services are reviewed and performance monitored. Suppliers are challenged or changed and tenders are sought for works. A local estates management firm carries out this function on behalf of the Society

The target for the Society is to maintain full occupancy but it acknowledges voids are inevitable and it is aware of the impact of vacant rooms both financially and socially. The budget includes provision for a £25,000 loss 2020-21 due to the difficulty in filling vacancies this year. Voids are given priority by the Executive Committee and kept under constant review. They are usually filled from the waiting list and advertising is used when appropriate. Unfortunately due to the outbreak of the Coronavirus pandemic in March 2020, it has not been possible to fill vacancies in the usual way and one room has been kept vacant to facilitate visits to residents. The level of voids in 2021-22 was 20.2% (16.8% in 2020-21). However by 31 January 2022, full occupancy was achieved.

In January 2022, a part time operations manager was appointed to replace the administrator and carry out some of the day to day functions usually carried out voluntarily by trustees. She has a particular remit to keep voids to a minimum.

The Society holds a portfolio of investments which is designed to spread any financial risk whilst providing sufficient returns to enable the objects of the charity to be achieved. There are no outstanding loans (metric 3). The Society has no plans to provide additional units or to amalgamate with another provider (metric 2).

Additional governance issues

The committee members have examined the major risks which the charity faces and confirm that systems have been established to lessen those risks.

Statement of the committee’s responsibilities

The Companies Act 2006, the Charities Act 2011 and registered social housing legislation require the committee to prepare financial statements for each financial year which 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.

In preparing those financial statements, the committee is required to:

The committee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the society and to enable it to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011, the Charity (Accounts Reports) Regulations 2008, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2015. It is also responsible for taking reasonable steps to safeguard the assets of the society and to prevent and detect fraud and other irregularities.

Small company exemptions

This report has been prepared taking advantage of the small companies exemption of Section 415A of the Companies Act 2006.

This report was approved by the Committee on ……………………………………… and signed on their behalf by:

…………………………..

Mr D J Halestrap - Chairman

4

REPORTING ACCOUNTANTS’ REPORT TO THE COMMITTEE MEMBERS OF ABBEYFIELD TIVERTON SOCIETY LIMITED

We report on the accounts for the year ended 31 March 2022 set out on pages 5 to 12.

Respective responsibilities of the Committee and reporting accountants

The Committee of the Registered Social Housing Provider is responsible for the preparation of the accounts, and they consider that the Registered Social Housing Provider is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion.

Basis of opinion

Our procedures consisted of comparing the accounts with the accounting records kept by the Registered Social Housing Provider and making such enquiries of the officers of the Registered Social Housing Provider as we considered necessary for the purpose of this report. These procedures provide the only assurance expressed in our opinion.

Opinion

In our opinion:

Aspen Waite South West Chartered Accountants

21 Bampton Street Tiverton

Devon

EX16 6AA

Date:

5 ABBEYFIELD TIVERTON SOCIETY LIMITED STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2022

Notes
3
Property management costs
4
5
2
Income from fixed asset investments
6
Revaluation of investments
Operating surplus
Total comprehensive income
Surplus for the year on ordinary activities
Taxation on surplus on ordinary activities
Surplus for the year after tax
Interest receivable and other income
Management and administrative expenditure
Turnover
Operating costs		 2022
£
93,219
90,478
23,148
113,626
(20,407)
-
2,531
(17,876)
-
(17,876)
19,398
1,522		 2021
£
95,054
73,476
19,145
92,621
2,433
-
5,485
7,918
-
7,918
18,844
26,762

The financial statements were approved on behalf of the committee on ………….... and signed on their behalf by

………………………….

Mr D J Halestrap (Chairman)

………………………….

Mrs K Beechen (Interim Treasurer)

6 ABBEYFIELD TIVERTON SOCIETY LIMITED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Note
9a
9a
9b
10
11
12
Investment revaluation
Fixed assets
Debtors
Cash at bank, building society and in hand
after more than one year
Reserves
Creditors: Amounts falling due
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due
within one year
Freehold housing properties
Other fixed assets
Investments
Current assets
Revenue		 £
3,874
247,839		 2022
£
895,869
3,274
322,092		 £
3,013
314,053		 2021
£
895,869
4,025
252,694
1,221,235
245,564		 1,152,588
312,689
251,713
6,149		 317,066
4,377
1,466,799
1		 1,465,277
1
1,466,798 1,465,276
38,242
1,428,556		 18,844
1,446,432
1,466,798 1,465,276

For the year ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the committee on……………………… and signed on its behalf by:

………………………… ………………………

Mr D J Halestrap - Chairman Mrs K Beechen (Interim Treasurer)

The notes on pages 9 to 12 form part of these financial statements

Company registration number 01095865

7

ABBEYFIELD TIVERTON SOCIETY LIMITED STATEMENT OF CHANGES IN RESERVES AND EQUITY

At 1 April 2021
Surplus for the year
Revaluation of investments
At 31 March 2022		 Revenue
1,446,432
(17,876)
-		 Investment
revaluation
18,844
19,398
-		 Total
1,465,276
1,522
-
1,428,556 38,242 1,466,798

8

ABBEYFIELD TIVERTON SOCIETY LIMITED STATEMENT OF CASH FLOWS

Surplus for the year
Interest received
Dividends received
Depreciation and impairment of tangible fixed assets
(Gains) / losses on investments
(Increase) / decrease in trade and other debtors
Increase / (decrease) in trade and other creditors
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
Payments to acquire investments
Proceeds from disposal of investments
Interest received
Dividends received
Net cash flow from investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents as at 31 March 2021
Cash and cash equivalents as at 31 March 2022		 2022
£
1,522
(2,311)
-
751
(19,398)
(861)
1,772		 2021
£
26,762
(4,815)
-
853
(18,844)
125
(549)
(18,525)
-
(50,000)
-
2,311
-		 3,532
-
(99,000)
-
4,815
-
(47,689)
(66,214)
314,053		 (94,185)
(90,653)
404,706
247,839 314,053

9

ABBEYFIELD TIVERTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

1. Summary of significant accounting policies

General information and basis of preparation

The Society is incorporated under the Companies Act 2006, the Charities Act 2011 and is a registered Provider of Social Housing in the United Kingdom.

The Society constitutes a public benefit entity as defined by FRS 102.

Basis of accounting

The financial statements have been prepared in accordance with applicable United Kingdom financial reporting 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 for Registered Social Housing Providers 2014, the Accounting Direction for Private Registered Providers of Social Housing in England 2015, the Charities Act 2011 and the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention, with the exception of investments which are included at market value.

The financial statements are prepared in sterling, which is the functional currency of the Society and rounded to the nearest £.

Turnover

Turnover represents rental income receivable in the year, net of losses from voids, and grant income receivable.

Fixed assets and depreciation

Tangible fixed assets are stated at cost, less accumulated depreciation and capital grants. Depreciation is charged over the expected economic useful lives of the assets at the following annual rates:

Fixtures and fittings 15% reducing balance basis Computers 3 years straight line

Housing properties

Housing properties are included at cost.

The Committee has not accounted for depreciation on its housing properties because the life of the property and residual value are such that any depreciation charge and accumulated depreciation are immaterial.

Improvements are works to existing properties which result in an increase in net rental income, including a reduction in maintenance costs or result in a significant extension to the useful economic life of the property.

Housing properties are reviewed for impairment at the end of each reporting period.

Government grants

Government grants were received back in 2001 and 2005 as a contribution towards capital cost. These grants were previously deducted from the cost of the housing properties, however due to the implementation of the SORP the comparatives have been restated. As the housing properties are valued at cost, grants should now be accounted for under the accruals model which means that grant income is recognised on a systematic basis over the expected useful life.

Value added tax

Irrecoverable VAT which can be attributed to a capital item or revenue expenditure is added to the cost of the capital item or expenditure.

Pension Costs

The Society operates a defined contribution scheme for the benefit of its employees with NEST the National Employees savings Trust. The cost of contributions are written off against surpluses in the year they are payable.

Taxation

The Society is currently exempt from taxation.

10

ABBEYFIELD TIVERTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

2.
3.
Rents receivable
Lessrent losses from voids
4.
Property management costs
Wages and salaries
Cleaner's wages
Employer's pension costs
Food
Heating and lighting
Cleaning
Garden expenses
Insurance
General and water rates
Repairs and renewals
5.
Management and administrative expenditure
Printing, postage, stationery and advertising
Telephone
Administrator’s fees
Trustees travel expenses
Accountancy fees
Professional fees
Membership fee
Sundry expenses
Depreciation
Training
Donations
6.
Interest receivable and other income
Donations
Miscellaneous income
Depreciation
Operating surplus
Operating surplus is stated after charging
Interest receivable		 2022
£
751		 2021
£
853
116,832
(23,613)		 114,264
(19,210)
93,219 95,054
2022
£
37,322
2,543
562
9,253
8,815
1,456
601
4,125
6,517
19,284		 2021
£
29,231
2,642
1,098
10,300
10,217
1,626
778
4,147
6,532
6,905
90,478 73,476
2022
£
2,812
405
5,569
-
2,470
-
3,690
451
751
-
7,000		 2021
£
167
464
3,162
34
2,210
1,000
3,514
741
853
-
7,000
23,148 19,145
2022
2,311
-
220		 2021
4,815
450
220
2,531 5,485

7. Directors emoluments

During the year no emoluments were paid to the directors of the society. "Director" includes any members of the Committee of the society.

11

ABBEYFIELD TIVERTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
ABBEYFIELD TIVERTON SOCIETY LIMITED
11
8.
Wages and salaries
Wages and salaries
Social security costs
Pension costs
The average number of employees of the
Society including part time employees was
Costs in respect of these employees were as follows -		 2022
5		 2021
4
39,865
-
562		 31,873
-
1,098
40,427 32,971

The society operates a defined contribution pension scheme. Amounts are charged to the accounts as they accrue.

9.a Fixed assets

Cost
As at 1 April 2021
Disposal
Accumulated depreciation
As at 1 April 2021
Charge for year
Depreciation on disposals
As at 31 March 2022
Net book value
As at 31 March 2022
As at 31 March 2021
Additions		 Freehold
housing
property
£
895,869		 Fixtures
and fittings
£
32,494		 Computers
£
519		 Total
£
928,882
-
-
895,869 32,494 519 928,882
-
-		 28,642
578		 346
173		 28,988
751
- 29,220 519 29,739
895,869 3,274 - 899,143
895,869 3,852 173 899,894

All housing property owned by the society is for letting.

The cost of non-depreciable freehold land included in freehold property at 31 March 2022 was £120,000 (2021 £120,000).

9.b
Investments
Market value of listed investments
(Financial assets measured at fair value through the surplus/(deficit))
At 1 April 2021
Additions
Disposals
Unrealised gain/(loss)
At 31 March 2022
Historical cost
CCLA
IDAD The Callable Deposit Plan
Investec		 2022
£
252,694
50,000
-
19,398		 2021
£
134,850
99,000
-
18,844
322,092 252,694
159,000
77,600
50,000		 159,000
77,600
-
286,600 236,600

12

ABBEYFIELD TIVERTON SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

10. Debtors

Amounts falling due within one year -
Rent arrears
Prepayments
Creditors: Amounts falling due within one year
Rent in advance
Accruals
Other creditors		 2022
£
27
3,847		 2021
£
27
2,986
3,874 3,013
2022
£
2,837
2,250
1,062		 2021
£
1,777
2,600
-
6,149 4,377

11. Creditors: Amounts falling due within one year

The average number of days between receipt and payment of purchase invoices was 6 days (2021: 7 days).

12. Creditors: Amounts falling due after one year

Tenant Services Authority loan
As at 1 April 2021 and 31 March 2022		 2022
£
1		 2021
£
1

13. Maintenance programme

The society's practice is to maintain properties to a high standard through a continuing programme of refurbishment and maintenance and consequently the lives of the properties and the residual values are such that any depreciation charge would be immaterial.

The maintenance of the property is reviewed on a continuing basis and discussed regularly at committee meetings.

All expenditure on maintenance is charged to the income and expenditure account. The charge for the year ended 31 March 2022 being £19,284 (2021: £6,905).

14. Housing stock

Units of supported accommodation for older people in management:
- Let on full time basis
- Let on temporary basis		 2022
10
-		 2021
10
-
10 10

15. Control relationships

The Society is controlled by its management committee as listed in the Reference and Administration Details on page 1.

16. Pension costs

The society operates a defined contribution scheme for its employees with NEST the National Employees savings Trust. Contributions are charged in the income and expenditure accounts as they accrue. The charge for the year was £562 (2021

17. Related party transactions

During the year no committee members received any expenses (2021: 1 committee member received travel expenses of £34).