QIIF.F.N ALEXANDRA'S HOUSE ASSOCIATION (A Regislered Charity and Compgny LAmit¢d by GugraDt¢e) REPOR'I'OTr-"I'IIL C.OUiYCIL AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER2020 Company Registered No.. OW42575 Charity Regis¢ere(l No.. 3128?4 QUEEN ALEXANDRA'S HOUSE ASSOCIATiof¥ RF.PORTOFTHE COIINCII. YEAR ENDED 31 DECEMBER 2020 The Council present their annual ￿pOrt and financial siaiemenis for Ihc year ended 31 December ?020 which are also P￿parcd to meet thc rcquirements for a dire￿orS. repons and accounts for CoM￿nieS Act PllTposes. The financial ststements comply with the Charities Act 2011. the Cotnjmnies Act 2006, Ihe Memorarmlum aryl Ani¢les of Association. and the Statement of Recommended Practice for Charities ISORP 20151 (Second Edition, eftcctive l January 20191. REFERENCE AND ADMIYISTRATIVE DETAILS Principal Addrts5 Registered Office Bremner Road Kensington Gore London SW7 ? Prtsident H.R.11. PRINCES8 ALEXANDRA. THE IION. LADY OGILVY. K.G.. G.C.V.O. Member5 of the Countil The member5 of the Council are the Charity Tru51ee5 of A5so¢iation and are listed ￿lOw. The numbers after each Member 518nify their representative trrf)dies as shown on rA8e 2. Membcrs of the Finance & Managemcni Committee during the year a indicated with 'F' after their name A Harv¢y Esq Ichairnianl -111 F A Rose Esq-141 F Mrs A M Gillon OBE-141 F MrsHMHan-141 S Corbyn Esq -121 MTS Z Serngeldin- I I I lappoinied 17 Match 20201 MrsN Martyn-111 Ms P Li5boa-12) J Blake E5q-121 Ms A Berharnovic-131 I'he Hon. R C Lyttelton-131 Members of the Council are appK)inted every fillh year on behalf of repTesentaiive bodies. House C.ornmittee. Principal gnd Profe&8iong1 Advisers Hollse Committee Mrs Fl M Flart IC.hairnanl Ms Z S¢rageldin Mrs J Strangeway5 Mrs P McConn¢ll Arthitetts Me5sr5 Ansell & Bailey London Prlnclp814nd Comp4ny Seeret8ry Ms S Brown Auditors Hay5rnacintyre LLP I O Queen Strcct Place London EC4R IAG Bankers Natwest pl¢ 55 Kensington High Street London W8 SEQ Company Registraiion Number: 0004?575 Charity Regi5tratioD Number: 312824 QUEEN ALEXANDRA'S IIOUSE ASSOCIATION REPORT OF THE COUNCIL IContinu¢d) YEAR ENDED 31 DECEMBER21120 STRUCTURE.GOVERP4ANCE AND MANAGEMENT Status and #drnini5trgtion The organisation is a Charitsblc compary limited by guarantee, number O(JM2575. The charitable company is governed by its MemOrnnd￿n and Article5 of A550ciation, dat¢d 26 November 1894. R¢cruitm¢nt, inductlon and ITaining Of Members of the Council The directors of the Company are also the chArity tnjstees for the PUTfAises of ¢hariiy law. and under the Company's arti¢les are known as Members of the Council. IH accordgmce with the Memorandum and Articles of Association the members of Council are appointed by HRH Princess Alexandra (11, the Commissioners for ihe Exhibition 011851 {21 the Roya] College of Music (31 and the Department for Education {4J and 5er¥e for five years and May be re-aptx)inled every fifth year. All members give iheir titne voluntarily and weive no benefits from t￿ charity. They make the major deci%ions affecting th¢ affairs of the charlty. All new rnembers ar¢ provided with infomiatiun on the responsibility of being a Trustee and. from time to time. are sent details of courses and serninars which may be relevani to their respon5ilM'lities. The charity does not use volunleer5. MemiEr5 of th¢ Council themselves are appointcd with wide experienrE elsewhere whtch t1￿Y bTin8 to the benefit of the charity on a voluntary basis. Owni58tionil 5truttyr¢ Council me¢tlll85 are held three times a y¥dr and are preceded by Finantt and Management Commiuee meetings. The Hous¢ Cornmitte¢ meets three times a year to di5CU55 Wlth the Principal tnatter5 fElatirJg to the running of the House, improvements, catering and residcnt5' welfare. An inviiaiion is seni to all residents to $peak to thc House Committec Chaimian arHI the Principal b¢fgr¢ mwings. Implementation of Council decision5 15 the res￿￿5]bIlity of the Principal and her managemem team. The Principal rep)rts al Council Meetings on operational Tnatter5. The Council sets the reMU￿ratIOn of key tnanaKement personne] IKMP. comprising the Principal, the He￿ of Maintenance. and tlK Housekeeper) annually having Tegard to l(Kal and national pay levE15 and relevant pay indices. OWECTIVES AND ACTIVITIES The principal activity of the Associ*ion is ihe PTOV15ion of accomTRodatiffl for women Students engaged in full time educ￿lOn. A5 a result of the expansion of women's training in the 18705 the￿ wa5 a PT¢ssing need foT tnorr facilitie5 for the accomrnodation of girls. The Ilouse w*s built in 1884 as a ¢ust(m-bvili hostel from money provided by several benefacror% in¢luding Sir Francis Cook, Chaimian of C(M)k's of St Pdul's Churchyard. and Henry Doulion of Doulton & C.¢x the w)ttery and tilemaker. The neficiarie5 of their la￿eSSe were from the very beginning girls in pupillati. priority being given to students ofmusic. Th¢ ms were to provide reasonably priced and secure hostel platts with full board fw gids ond young women coming to London from the pmvinccs or from overseas. If Ihis was a p]a¢tico1 and necessary aim in the 1880$. it is even more important today, when Ihe ¢osi of accorntnodation limits severely the availability of safe and suiiable places where slud￿15 may l(MJge in Lyntral London. An added ftaturE of the l.louse is It5 design to give siud¢nts of the arts a cen1￿ Whe￿ they can praciice. rehearse, and perform. This 1$ a much needed benefit &s there is very little practice and pcrforniance space available in centrdl London. The President at the foundation Wds Princess Alexandra of Denmark. thc Princes5 of Wales and later Queen Alexandra. Queen Mary and ihe Duchess of K¢ni suc¢¢eded to rhe presidency followed by the pre5etit presideni H.R.H Prince55 Alexandra. As the tharity operates in the centrdl London market foi S¢ud¢nl arrotntttodalion. it continuously rnonitOT5 developffl¢nts in that Sect￿ and the potential effects of competition on its slated wcupancy levels. Deposits arc taken in advance for future letting periods a waitlng list is maintsined, and fees are reviewed annually with reference to similar pnividers. Sound blldgeiing and financial plans are in place and are updated at least thr¢¢ times a year io funher enable its aims to be achieved. The charity's Pri￿1paI short-tertn objectives are to provide a safe and happy environm¢ni for over I￿ resident female students. and to Opiimise (tcupancy levels. The longer- temi aim 15 to improve the quality of accommodation by upgrading the property both intemally and externally within the parameters of a 5 year plan and funds pennii. PuNir Benefit We have paid due regard to the guidance on public benefit conlained in the Charity Commission's liter*ure when reviewing our aims and objectives, aNI in P￿nnIng our future activitlC5. Wc have sct a5ith a bursary fund for residents who are in fina￿la1 diffjculty and n￿d assistance wilh accommodation fees. QUEF,N ALEXANDRA'S HOiiSE ASSOCIATIOY REPORT OF TH E COIINCIL IC(bntlnu¢dl YEAR ENDED 31 DECEMBER2112 OWECTIVES AND ACTIVITIES {Contlnued) WhAt Is the ￿tomMOdatiOn in Queen AleA#rtdr#'$ 14ouse. When the house wa% built in 1884 there were r(K)I￿5 for 130 girls., in 1976 a larg¢ pan of the building including most of thc public r￿m5 was leased io ihc English Natii)nal Ballei in order to fijnd extensive upgrdding requirernents. As a result of careful apiation over a number of y¢ars. Ih¢re are 109 rooms with intemet facilities available which fiequenily attain maximum levels of occupancy. From the very foundation of Ihe House there have been many over￿a5 5tud¢nt5 who have come to London to study and have discovered in QAI l a safe place lo reside and to attend thcir COUTses. In the 1960$ thcre were siudcnis fTom many Commonwcalih CoUntr￿S including canad￿ Kcnya and India: to these arBJ to many siudenis from all parts ofihe Ilniied Kingdom there have been added students frotn the Far East including Chifia and ja￿n. li has always been ihe policy of lh¢ House lo make no rac¢, ¢oloui or ¢ligious distinciion. All are welcome and ihis is very much lo the public benefit. I'he Charity's ¢Dnstitution makes provision to "assist female studeths with grdnts of money and ot￿r aid and to found scholarships. exhibiiions and prizes for female students." CHIEVEMENTS AND PERFORMANCE During lh¢ 2019170 *mesters 110 female students stayed at QAH. They were studyin8 at the following institutions. numbering 27 from ihe Royal College of Music, 12 from the English National Ballet School, 40 from Imperiitl c.ollege, 10 from the Royal College of Art. An additional 13 institutions were also represented including the Royal Academy of Musi¥, Ihe Royal A¢thlemy or thnce, the Guildhall School of Music. King's College. LSE, UCL and Queen Mary'5. The Reception is opcrational 24 hours and pastoral ¢aTe piovided ihroughout tk residents, stay at QAH, which is welcomed by lh¢ residents, parent5 and guardians alike. Resident5 have acce5S to many forn)5 of cotnrnunication with the Pri[￿1paI and the senior managemeni team. A suggestion box is provided and an upen-door poliiy adopted. During the year. like many organisaiions. th¢ House was seriously impxted by the Covid-19 pandrmi¢ on both finan¢ial and $D¢ial fronts and Ih¢se were properly and adequately addressed. Mgintengnce of the Hous¢ Queen Alexandra's House 15 a Gradc 11 listed building in free J&obeanlQuetn Anne revival style prominently l(Katrd nexi io the Royal Albert Hall. M￿h efFort And a¢tlYlty is direLtd towards its main¢enawe as a purpos¢-buili hostel and part of London's heritage. The House has no endowment to fund short or I￿g-ierM maintenance. A sum of £346,284 wa5 expcnded on building works during the year to i￿lUde significant improw¢ments to the boiler control sy5tcm& the replacement and the upgrade to siudents. kiichens, decoration of the Ring and music prdc¢ice rwms and TV Room and major repa￿5 to the Br¢mner Road facade. The ¢hariiy has not encountered any signifi¢anl fa¢iors in ?020 that have affected ihe achievetnent of its obj¢¢tiv¢. The ￿aJor ongoing factor that will atTea future plans is Ihe finan¢ial effect of diminishing revcnuc resulting from tIK Covid-19 pandemic. Fif4ANCIAL REVIEW The main source of income is the fees received for student accommodation. Expcnditure consists principally of the c05t5 of mainthining ihe Property and ￿terIng for lh¢ 51ud¢nts. The Slaternenl of Financial Activities dis¢l￿e$ net expenditure of £314.895 1?019.. £114.848 nct incomcl. Thc onset of Covid-19 had a 5i8nificant financial itnpact on the itKome of ihe ¢harity as occupancy levels fell in the Summer and Aulumn ternis. The charity had also ¢omrnitted itself to sub51arfial refurbishment works on the fa[ade of the building as well a5 the replacement of the rnain boiler during the year. The charity does not fundTaise dircct fr., free reseTVCS were £528,820. The iarget is marginally exceeded at approximately 8 months i?019- 8 momhs with a l ? Month target). At 31 Dec¢tnbeT 2020 general funds amouni¢d to £607.477 12019.. £589.1691. Designai¢d funds. being amount5 sei aside lo replace tnajor plani and equiptner (Th¢ Builthng Capital fyndl and to assisi resid¢nts in titiancial diifjculiy with accommodation fee5 IBur5ary Fund) a[nOunt￿ to £523,34012019-. U51.5431. making total funds of £1,125.81712019- £1.440,7121. The Building Capital fund will ulrimately be uscd lo rcpla(Y major plant such as the lift and boilers. ai the end of their useful lives. Thc timing is estimated to be beyond 15 years li.¢. afteT 20301. Under th¢ 5-year plan. the fund is anticipa￿d io reach £393,500 by the end of 2021. The tnjstees have considered the impaet of the Covid-19 pandemic in fomulatin8 the charity's Reserves Policy and in assessing the charity's ability to continue as a going concern. Whilst occurfincy levels fell irt the year, the charity has suffi¢ieni ￿serveS ensur¢ it can meei it5. finarKial obligations for the foreseeable fLrture. QUEEN ALEXAP4DRA'S HOUSE ASSUCIATION REPORTOFTHE COUNCIL Iconilnued) YEAR Ef4DED31 DECF.MBER 2020 R15k M*nigefflertt The CoutKil has reviewed ihe major risks to which the Association is eKposed, in particular those f¢lated io ihe opErdtion and financ¢s and are 5a¢isfied that 5ysleTns in place lo miiigate exposure to these risks. A compliance ￿gIster is kept. The Ihr¢e prin¢ipal risks identified a5 unccrtaintiC5 that rni￿t confront the charity are il a loss of income through a Sudden fall in demand: ill The need for any major unplanned capital spending: and iiil any medium-term social Changes affecting the ￿ntral London a¢cornmodation marke¢. The* main risks are managed 2nd for ihe mtss¢ part rnitigat¢d by il 5hort-trrtn ongoing income review and maintenance of a Wditing listr ill the regular monitoring of a 5 year rolling capital plan: and iiil regular liaison wilh other major providers of London studeni accommodation. the to the COVID-19 Pandernic arKI new cov1￿19 Risk Assessmeni, Policies and Pro¢¢dures has been put irrto pla¢¢ at Queen Alexandra's House to ensure that we are following govemmenl guidelines to mitigaic I minimi5e the risk of an LOVID-19 outbreAk. TheTe will be a consequcntid reduction in Iuup9ncy levels and fee income in the first half of 2021 li is aMi¢ipaicd income will grow steadily itlto 202? Investments Pol The Council have tIK wwer io invest in such assets as tlw see fit. No investments were held. FUTURE PLANS The Association plans to attain maximum levels of WcUr*ar￿y in fijture years. This It intend5 to achicvc by maintaining its Premises in a good stsie of repaif and providing excellent ￿tering and other facilities to ensure the House continues io mttt the expectations of its preseni and futur¢ resid¢nis. In order to achieve the flexibiliiy 10 make progr¢ss possible li is the Council's intention to k¢¢p reserves at the target level. In support of ihese policiei ihe Council has prepared a 'Fi¥e year ¢apital improvement plan" which is reviewed at each meeting. The MembeTS of the Council, stated now and for the foreseeable future is 10 continue the provision of female swdent a¢¢ommodaiion on lis original site and to oversee necessary improvemenL as it has done since opcning in 1884. At present they believe that that perspe¢tive will reTnain a constant in its future diredion. STA'I'EMENTOF MEMBERS OFCOUNC.IL RESPONSIBILITIES The Council of Managefflent Iwho are also the trustees of the charity for the purw>ses of charity law and also directors for the purp05e5 of company lawl are responsible for preparing the Report vf the Council and the financial slaiements in accordanrr with applicable law and United Kingdom Accounting Standards (United Kingdom G¢nerally Accepted Accounting Practice). Company law requires the tnembers of the Coun¢il to p￿[dre finan¢ial yat¢ments for va¢h finarKial year which give a true and fair VIEW of the state of atfairs of the Charl￿ble comrAny and of it5 income and expenditure for that Period. In preparing the5¢ fina￿la1 slaiemeni% ihe members of thE Council are required to.. seleci suittble accounting policies and then apply thetn consistently. tsbserve the methods and principle5 of the Charities 50RP,. make judgements and e5timatC5 that are re&sonable and prudent: state whethcr applicable accounting standards have teen followed, subjcct to any material Ikp8rtures disclo*d and explained in the financial Sta￿Ments., p￿pare the financial ￿al£￿eth5 on the going COiK¢m ￿$1$ unless it is inappropriate t(Tr pr¢5Utne that the company will continue in business. The members of Ihe Council are respoDsiblc for keeping proper accounting record5 that disc105C Wlth reasonable accuracy at any lime Ihe financial position of ihe charitable Company and enable them to ensure that tk financial statements ctsmply with thc Cornpanie5 Act 2006. They are also rcsry>nsible for ￿r£guardIng the assets of the charitabl¢ company and hen¢e for taking reasonable steps foT the prevention and detection (Trffraud and oth¢r irreglllariti¢s. So far as each of members of the Council arE &ware at the time the retxjrt is approved.. there is no re1c￿ni audit inforni￿lon of which the company's auditors are unaware; and the Coun¢il of Managemeni munlyrs have thken all steps Ihai they ought to have taken io make themselves aware of any relevant audit inf0m￿tion and to ¢s¢ablish ihai ihe audiiors are aware of that infonnatl￿. QUEEN ALEXANDRA'S HOUSE ASSOCIATION REPORT OF THE COUNCIL {Continued YEAR ENDED 31 DECEMBER 20211 AUDrroRS A resolution prorA)Sitbg the re-appointment of HAysm*cintyre LLP as auditors to the cOM￿nY will be put to the annual general meetin In preparirbg this rewjrt the Trustees have taken advartage of the small companies exLYnptions provided by Part 15 of the ComrAtties Act 2006. On behalf of the Board 23 m￿Ch 2021 Kensington Gore London SW7 A Harvey Esq IChaim)anl INDIPLNDENT AUDII'OR'S REPOIiI" TO THE MEMBERSOF QUEEN ALLXANDRA'S HOUSE ASSOCIATION Opinion We have audited ihe financial St￿eMentS of Queen Alexandrd's House Association for the year ended 31 De¢emlrr 2020 which comprisc the Statement of Financial Activities. Ba18nce Sheet, Statcmcnt of Cash Flows and notes to the financial stalemenls, including a summary of significant accounting ptslicies. The fInat￿l￿ rew>ning framework that ￿eTh applied in their preparatim is applicable law dnd United King7dum Accounting Standards. including Financial Reponing Standard 102 The Inanrial Repoi'linx S'inndui'cl L7pplicoble ihv liK and RepiiblAC of IrglU•￿ (United Kingdom G¢nerally A¢¢¢pted Accounting Praciicel. In our opinion, the financial statements.. give a true and fair view Df ihe swe of the charitable c(xnpany's affairs as at 31 D￿¢M￿r ?020 of the ¢haritabl¢ cornpany'5 net movement in Funds, includin8 the income and expenditure, for the year then ended: have ken properly pre￿rcd in accordance with United Kingdom Generally Accept￿ Accounting Practice,. and hav¢ t¢en p￿￿ed in accordance wth the requirements of the Companies Act 2(NJ6. Basis for opinion We t(￿dUCted our audit in a¢¢ordance with Internalional Standards on Audiling IUKI IISAS (Ukll and applicable law. Our reswTrnsibililies under th￿e standards are further described in thc Auditor's responsibilities for ihe audit of the financial statallents section of our report. We are independent of the charity in accordance with the ethical requirernents that are relevant io our audit of financial statements in the UK. includiTLg the FRC'S Ethical StarKlar( and we hav¢ fulfilled OUT other eihical Te5POTbsibilities in accordan￿ with these requirements. We bElievE that the audit eviden￿ we have obtain¢d is suifi¢ienl aryi appropriatE to provide a basis for our opinion. Conclusion5 relating to golng coneern In audiiing the financial 5tatemcnts, we have roncluded that the Memkrs of the Council's use of the going con¢em basis of ¢ouniing in ihe prwaratiotb of the financial statemen1$ is appropriak. Based on ihe work we have ￿rfOrme4 we hav¢ noi ideniifi¢d 82)y mAteria] unrcrtaintie5 relating to events or conditions thal individually or ¢olieciively, may cast significanl doubt on the chariiable ¢ompany'$ ability to contjllUE as a going concern for a peri(NJ of at leasttwelve mornhs from when the financial statements are authorised for issuc. Our resp(y)sibilities arld the responsibilities of ihe Members of The Council with r¢stKct to going concern are described in the relevant sertions of ihis report. Other infomiitlon The Membrr5 of the Council are responsible for the oiher irtfomiation. The other information co]nprises the information i￿1￿1 in the Report of ihe Council. Our opinion on financial statements doe5 llot cover the other information and. except to the extent Ott￿rwIse ¢xpli¢itly ststed in our rep(rt we do not express any forni of a$sUra￿t conclusion thereon. In connection with our audit of thc financial 51atement5. our re5ponsibilily is io read th¢ oih¢r infomiaiion and. in doin¥ s consider whether thE dher infomiation is materially inconsi5tenl with the financial statements or our knowledge obtained in the audit or Ott￿r￿ls¢ appears to ￿ m￿eriallY missthied. If we identify Such rnaterial inconsistencies QT apgBrent materiaj missthiemenis we are required io d¢t¢miin¢ whether ihere is a tnaterial tn5551aternent in the fitmncial statements or a ma￿rIal misstatement of the other informaiion. If. trdsed on the work we have performed w¢ ¢on¢lud¢ that ther¢ is a material mis5tatemert of thi5 ot￿r infom1atii￿, we are required to report that fact. We have nothing io report in this regard. Opinion$ on other Matte￿ pre5crlbed by the Companie$ Act 2006 In our opini¢)n, based on the work undertaken in the Course of audii.. the infoNnation glven in the R¢pon of ihe Council (which incorporate5 the dirtttors. reportl for the financi￿ year for which the financial Statements are prepared is consi5tenl with the financial statem¢nt5' and the directors, retK>rt included within the RepDri of (hE Council h&s prepared in accordance with atvlicable legal requirements. INDEPENDF.NT AIIDITOK'S RLPOR'I ro"I"IlL MEMBERS OTr" QUEEN ALEXANDRA'S HOUSE ASSOCIATION Mhtttrs on which w¢ gr¢ r¢quir¢d to report by e¥¢tption n the light of the knowledge and understanding of the charitable company and its environrnent obtained in the course of the audit. we have not identified rnalerial misstatements in the Report of the Council (which incorporates the directors, rcportl. We have noihing to report in respect of the following tnatters in relation to which the Cotnpanies Aci 2006 requires us to report you if. in our opinion.. ad¢quarc accouniing re¢ords have ￿¢ been kept by the chariiable company,. or the Charitable company financial staternents aTC not In 118rccmcnt with thc aecountifig records and returns; or certain disclosurcs of Mcmbers of the Council's remuneration specified by law arc not mad¢: or we have not received all ihe infomiation aThd explanations we reguire for our a￿jIt. or the Iruslees were not eniiilEd tu prepdre ihe linancial statements in a¢¢orddn¢e wilh ihe small cornpanies, regime and take advan¢ag¢ of the stnall companies, exemptions in preparin8 the Irustee5' report and from the rcquirement to prepare strategic report. Re$ptsnslbllltie$ of Members of ihe Counell for the finanei#l statements As explained more fully in the Statemvnt of Members of the Council Resw)n5ibilities set out on page 4, thc MemEers of th¢ Council (who are also ihe directors of Ihe chariiable company for the purposes of company lawl are responsible for the preparation of the financial stsiements and for being satisfied that they give a true and fair view, and for sKh internal control as lh¢ MEmbets ofthe Council deietTnine is necessary to enable the PTeparation of financial ￿ateMentS that are fre¢ fiom maierial misstatement. whether due lo fraud or error. In prepring rhe financi&l statements, the Members of The Courtcil are resportsible for assessing the ¢haritsble company's abilTrty to eonlinue as a going ¢on¢ern. diKlosin¥i as applicable, M￿er5 related 10 goin¥ Concern and llsing ihe going con¢¢rn basis of countin8 unless the Membcrs Of't￿ Council either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor'$ respon$lbllltl¢$ for the audlt of the Ilnanclal $iaiements Our objective5 are to obtain rcasonable assurance about whether the financial statements as a whole are free from material misststemenL whether due to fraud or cryoi, and to issue an audiiof'g rew)rt Ihal in¢lud¢s our opinion. Reasonable assurance is high leve5 of assurance. but is nut a guaratbtee that an audit conducted in accordance with ISAS l UK) will always detect a material misstalemeni vlhen it exist5. Mi551atetnen15 can ari5¢ frotn fraud Dr error and arr con5id¢ffd material if, individually or in the aggregate. they could reasonabty be exp¢¢i¢d io influ¢tKc the econuni¢ decisions of u$eTS taken on the basi5 of these financial statetnents. Irregularilies, including fraud. are in5tance5 of nonsits .774.851 1353,0161 1.4?1.835 QI,'EEN AI.LXANDIi4'S HOIISL A.%.￿)CIATIo NOTES TO THE FIhlANCIAL STATETrIEYTS YEAR EYDED 31 DECEMBER 20211 ACCOUNTING POLICIES The prI￿1pAI accounting policies adopted. judgements and key sources of eslirnation uncertainty in the preparaiion of rinarrial sthtetnents is a5 follows= BASIS ofAcrountinE 'I'he financial %1aternent5 have Eten prepared in accordance with the Stat¢tn¢nt of RECOrntnendrd Practice for Charities ISORP 20151 (Second Edition, effective l January 20191 and the Companies Act 2006. Queen Alexandra's House Assoriaiion meets the definition of a public benefit entity under FRS 10? Asseis and liabilities are iniiially Te¢ognised at historical cost or transaction value unless ￿herWISe staled in the relevant accounting poli¢y noidsl. Pre￿￿￿tion of the 4¢¢ounts on a going toncern ba515 Having considcrcd thiure budgets and cash flow5. the Members of the Council confimi that they have no material uncertainties aFA)ui the eniiiy's ability to Contin￿ as a going concern for the foreseeable f￿￿re. In reaching thi5 ¢0￿clUSion. Members of Council have also given due considerntion ttK impact of thc Covid-19 pandemic on ihe actlvllies of the charity where ihere have b¢en significant reduLtIOlls in IKcupancy level5. Eslimhtion uncertainty In the vi¢w of ihe members of the Council in apptying the accounting wlicies adopied. no J￿agementS were rquired that have a sibynificani etre¢t on the amounls recognised in the finan¢ial statements ngr do any e51im(it¢s or a5SUmPtions made carry a significant risk of material adjustment in the next financial year. FiM¢d a$set$ Expenditure on fixed assets is capitalised where Ihe Cost lor lh¢ valu¢ if donai¢dl is in ¢x¢ess of £5.000,' otherwise it is written off through tlie Siatemenl of Fina￿la[ A¢iivilies. Cosls of ￿plaCe[￿entS of Tnajoi ¢quiptnent and pianos arc charged to designated funds set a5idc for that purpose by appropri*ions from Revenue. Tangible fixed assets are depre¢iaied ￿ raies calculated to write off the cost. less estimated residual value of asset evenly OVeT It5 eKpecled lite, as follow5:_ Long leasehold itnprovements Furniiute, fittings and equipment Plant 20/0 per annum 33 113V• annum IO% annurn Debtor$ Trade and other debior5 are fECO8ni5ed at the settlement amguni du¢ after any trade dis¢ouni otTered. Prepay[t￿ntS are ValL￿d at the amount p￿paid nct of any trade discounts due. Cash #I baDk in hand Cash al bank and in hand includ¢s bank accwnts. ¢a5h and short tertn hi&yhly liquid investments with a shon rnaturity of three months or less from the date of acqui5iiion or O￿ning of Ihe deposit or similar aceouni. Crediior$ #nd provi510DS Credilvr5 and provisions are recognised W￿re the Charity has a present obligation resulting from a past eveni that will prolmbly rcsult in the transfcr of funds io a third party and the atnount due 10 Settle the obligatiun can be measurcd or estimated rcliably. Creditors and provisions are nom)ally recognised at t￿1r settlement atnount after allowing for any trade discounts du¢. VAT The charty is registered for V A T but is unable to reclaitn all of the input tax incurred. Irr￿0VerabLe VA T is ch￿￿ed to the eX￿ndItUre heading for which it was incurred. QI.'EEN ALEXAt*D114'S HOIISE ASSOCIATION No'fbs TOTHE FINAYCIAL S'I'AI'EMLNTS YEAR ENDED 31 DECEMBER2O20 ACCOUNTING POLICIES IConiSnuedl Operatlng Iti$es Renial Charges are Lhargyd on a Straight line ba515 over the life of the lease. frunds Thc different futwl% are defined as follows: Re5triLted funds are those fuThls wtu¢h are 10 be used in a¢¢ordan¢e with sp¢¢ifi¢ instr￿lI0n5 imposed by th¢ donor or itusi deed. Unrestricted funds are those funds available to the charity for its general purtx)ses. Tky include funds designated (Note 71 by ihe membe15 of the Council for particular purwses where their u8e retnains at the di8cretTron of ihe members vf the Council. Arnounls may be Set aside each year on the basis of eXp￿ted requirements for major repairs io premises. replacement of major cquipfflent and p1all￿ for use by rcsithnt students. A Iran5fcr is made fn)m General io Designated FuThJs and the cost of the repairs or replattments are charg&1 against the fund a$ thcy arise. It is the policy of the memFEr5 of the Counckl to r¢iain in unr¢stri¢t¢d fund% amounts whi¢h in iheir judgemenr, can help to ffliligate the short t¢mi effects of income volatility and retsin fund5 to generate sufficient incixne to me currcnt and future 0￿ratIOnal aaivities of the Charity. Incorne This comprises fees receivable frotn the various House activitle5 and investment itKome. All incotne is recognised once the charity eniitlemeni io the income. it is probable thai the income will be received the amour* of income can be measured r¢liably. Incornc from charitable activities is recognised as earned as the related services arc provided. Donations a￿ re¢o¥nised whej) the charity has betn notified in writillg of boih the arnount and seit]emenl dale. In the event that a donation is subje¢l to conditivns that requir¢ a l¢v¢l of perforrnance Lxfore Ihe chatity i5 entiil¢d to tht fund5. thc incorne is deferred and n¢x ffcogniscd until thos¢ Conditions are lully met, or the fuifilment of those conditions is wholly wiihin the ¢onirol of ihe charity and it is probable thai those condiiions will be fulfilled in the reporting ￿riod. Interest on fijnds held on deposil is include when rcccivablc and thc amounis Can be measured reliably by the charity. this is nornially utK>n notification ofthc interesi paid or payable by the bank. Eipendlture Liabilities are ￿cOgnIsed as expendiiure as soon as t￿re is kgal or constructive obligation committing the charity to thar expendiiure. it is probable that selllement will be ￿quIred, and the amounl of oblig*ion Can be mvasured reliably. Expenditure is recogniscd on an accruals ba515 as a liability 15 incurred, inclusive of VAT, which cannot be recovered. CharTtdble activities cotnprise mainly of thc provision of accommodation including welfare and catcring. premises and administrative cosi5. SUp￿rt Costs have allocated to eharitable activitie%. Cjovernance cost5 comprise those costs related to organisaiion an(1 cofflpliance with constitutional and statutory requiretnents. Costs include direct costs of extcmal audit. legal fees and oiher profe55ional advice. TrinAncial instruments The charity only ha5 financial asscts and financial liabilities of a kind that qualify as IM5ic financial instrumenls. Basi¢ financial instrutnet*s are initially reco8nised at Iransaction value and subSeqLKntJy tnvasured at their ttlemcnl value. PensjOIIS Thc charity 0￿r￿eS a &fined toniribuiion ￿nSIOn plan. Contributions are charged 10 the Statement of Financial Activities as they becom¢ payablc. The charity has no liability bcyond making its contributions and paying across the deductions for the employee's contributions. QUEEN ALEXANDIiI'S HOUSE ASSOCIATION NOTLS TO FINANCIAL STATEMENTS ICon¢lnued) YEAR ENDED 31 DECEMBER 2020 FIXED ASSETS Improvements 10 Long i*Asehold Property Furnlture And Fttllngs Pl•nt And EquipmeDt Total C05t At l January 2020 Additions 22,355 8.817 18.081 157.094 61,600 188266 79.681 At 31 December 2020 22.355 26,898 218.694 267.947 Depreclatlon At l January 2020 Charge for the year 22,354 8,816 6.027 157.093 188.263 6.027 At 31 December 2020 22,354 14,843 IS7.093 1942 Net B￿k Value At 31 De¢emb¢r 2¢)20 7.1.()57 At 31 December 2019 DEBTOKS 2020 2019 Trad¢ debtors VAT wov¢rabl¢ PrepaytnentS Other debtor5 3.226 32,509 11,214 28,105 6.762 4,819 7.693 841 75,054 20.115 OTHER CREDITORS 202 2019 Trade Creditors Accruals Other C￿ditorS 76,002 95.574 49,193 18,780 1,204 171,576 69,177 15 QUEEN ALEXANDRA'S HOUSE ASSOCIATION NOTES TO FINANCIAL STATEMENTS (Continued) YEAR ENDED 31 DECEMBER 2020 ANALYSIS OF EXPENDITURE Other Costs Total 21120 Total 2019 Staff Costs DepreeiAtion Ch#rliable Activlty: Provision of &¢commodation'. Welfare and ￿tering P￿miseS costs Support costs Govemallce costs 160.845 48.254 112.592 225.882 396,629 107,754 20,556 386,727 450,910 220,346 20.556 403,923 248.243 208.166 20.292 6,027 321.691 750,821 6,027 1.078,539 880,624 2019 COMPARATIVE Other Costs Totgl 21119 Starr Costs Depretl8ti011 Charitable Activity: Provision of accommodation.. Welfare and catering Premis¢s costs SuptxTrrt costs Governance costs 166,557 49,967 116.5q) 237,366 198,276 91,576 20.292 403,923 248,243 208,166 20.292 333.114 547,510 880.624 2020 2019 Governance costs include.. Audit fees 01]￿r fees ￿Yable to the auditors 11.000 1,963 10.400 2,263 STAFF AND TRUSTEE REMUNERATION AND BENEFITS 2020 2019 StatTcost$ in¢lud¢'. Wages and salari¢s National In5urdnce Pension Agency Staff 258.910 21.165 4.420 37.196 205.160 14.595 3.026 10,333 321.691 333.114 The average nthnber of employees duringthe year was 13 No employee eanxd over £60,￿ iii the year12019- nortl. Totsl employee benefft5 paid to key manag¢m¢nt ￿rsOnnel FA)5t holders arnount¢d to £1 11.23812019- £104.9631. The ￿em￿rS of Council received no emolurn¢nts nor r¢irnbur5¢d exFn5¢s during the year12019: Nill. 16 QUEEN ALEXAND114'S HOUSE ASSOCIATION NOTES TO FINANCIAI. STATEMF.NTS (Continued) YEAR ENDED31 DECEMBER2020 DESIGNATED TrUNDS Bal8nce I Jgnu4ry 2020 Transfer fromllto) Generil Fund B*l4nee 31 Dtcemtxr 2020 Intome Expenditure Building Capital Fund Bu￿ry Fund 831,543 20.0(M) 1266.6031 161,600 503,340 20,000 851,543 1266.60JI 161.6(K>i 523,340 2019 COMPARATIVL B•lan¢e I TrAnsfer froml(to) General Fund Bal#nte 31 DwetDlxr 2019 Income Expenditure 2019 Buildinbj Capital Fund Bursary Fynd 324.0(K) 134.4571 s42.0￿) 20.000 831,543 20.(H)O 324,000 134.4571 562,000 851,543 The purpos¢ of the Building Capilal Fund IBCFI. is io build up a r¢serv¢ for the ultimate replacemeni of major plarrt equipment IlilL boilers. and roof¢overingsl. li was ¢siablish¢d during 2013. Expenditure on major repaii WOTk5 in the year have been charged to this fijnd and the purchase of a new boiler which was capitalised ha$ been charged as a transfer betwecn funds. The Bursary Fund IBFI i¥ for residents who are in fir&4n¢ial diifjculty and need assistance with accLKnmodation f¢¢s. It wa5 established during 2019. ANALYSIS OF NET ASSETS BETWEEiY FUNDS G*rter21 Fynd5 De5ignAttd Fund$ Total Funds 2020 Fixed assets Current assets Curient liabilities 73,657 973,549 1444,7291 73.657 1.496.889 1444,7?91 523,340 602,477 523,340 1,125.817 21119 COMPARATIVES GenerAI Funds Desigthaied Fund$ Totil Fund$ Fixed assets Current assets Current liabilitics 943.4)3 1354.)571 851.543 1,794,966 1354,257} 589.161> 851.543 1.440.712 QUEEN ALEXANDfL4'S HOUSE ASSOCIATION NOTES TO FINANCIAL STATEMENTS ICon¢iny¢d) YEAR ENDED 31 DECLMBER21120 OPERATING LEASES At ihe year end. the charity had future minimum lease payment5 under non-cancellable operatiojg leases a5 follows.. 2020 2019 Within one year Within two io five years 21.257 14.627 2.510 14,627 35.884 IIA TAXATIOiY The Asso¢iation is a registered charity and no taxaiion is payable on its income. COMPARATIVE STATEMEiYT OF FIJ¥ANCIAL ACTIVITIES (20191 Ullrestrttted Funds Gener*1 Deslgnoted Total 2019 IIYCOME FROM: Charitable activities- &commodation Donaiions and lega¢ies Invt5tmeTrts Other In¢ome 975.0(X) 2,078 6.982 11,412 975.0 2,078 6.982 Tot&1 995,472 995.472 EXPEIYDII'URL ON: Charitable activities- provision of accommodation 846.167 34.457 880,624 Net Incomel(exptDdlture) ￿rore trI￿s(er$ 149.305 134.4571 114.848 Transfers between funds 1562,0001 562,0(K) NET MOVEMENT IN Fuf4DS 1412,6951 527.543 14.848 RECOIVCILIA TIONOFFUNDS.. TOTAL FUNDS BROUGFfF FORWARD l.(K)1,864 324.oc 1.325,864 TOTAL FUNDS CAlUtIED FORWARD 589.169 851.543 1.440.712 18