QUEEN ALEXANDRA￿ HOUSE ASSOCIATION (A Registered Charity and a iompany Limited by tsuarantee) REPORT OF THE COUNCIL AND IfINANCL4L STATEMENTS YEAR El￿ED 31 DECEMBER 1022 Company Regist¢r¢dNo: 00042575 Cbariry Registered No: 3R2¥24 QUEEII ALEXANDRA'S HOUSE ASSOCIATIO REPORT OF THE COUNCIL YEAR ENDED 31 DECEMBER 2022 rhe Council present theii annual rq>Drt alld financial ststements for the year ended 31 December 2022 which are also prepared to ll￿t tlLe reqiiireme.DtA frsr 2 direr.tnrA' re￿rLS and accnunL4 for Companies Actpurposes. The financial statem6nts cojnply with the Charities A¢t 2011, the Companies Act 2006. the Memorandum and Articles (If Association, and the Statement of Recommended Praetiee for Charities (SORF 2015) (Second Editiou. effe¢tive l January 2019). REFERENCE AND ADMINISTRATIVE DETAtLS PriDclpal Address and Registered Offi¢¢ Drcmnrr Road lQensJnglon iiore London SW7 2QT Pre$lrtènt H.R.H. PR￿C￿.Ss ALEXANDRA. TItE IION. LADY OGILVY, K.G., G.C.V.O. Members of tbe Councll The members of th¢ Council are the Charlry Trustees of the Assoclaiion and are Ilsred below. The numb¢rs after ¢ach Member signify their representative bodies as shown on page 2. Members of the Finonce & Management Committee during the yw are indicat¢d with 'F' after their names: A HarY¢y E4 {Choirmatt)- (l) F A K08e b8q- (4) A M Gillon OBE- {4) F S Corbyn Eyq - {2) M HAaisAnd F.sq-13) M$ Z S¢rag¢lditt {11 Mr6NMurtyn- (l) Ms P Lisboa- (2) J Blake Esq- {2) Ms A Berbamovic- (3) 11)e Hnn. R V. l.ytteltnn- (l) F Li G BGII E'6q- {4) (appoittt¢d 29 March 2022) r Member8 of th¢ Council are appointed every f]fth year on behalf of representative bodies. Hou8e Committe4 PrillcipAI And Prof¢55ioDal Advisers House Commltte¢ Mrs H M Hart {awirnwi) MrB S Dawson MS P Lisboa Mr.8 N Martyn Ms Z S¢rngoldin MTS J Strallgeways Ar¢hite¢ts Me8sr8 Ansell & Bailey London Prlnclpal and Company Secretary M$ S Brown Audltors IIaysmts¢intyrG LLP 10 Queen Street Plac¢ London EC4R IAG Banke Natwest pk 55 Kensington High Street London W8 SEQ Company Roglstratlon Number: 00042575 ChArlty Reglstr*¢ion Nulllber: 3 12824 QEEEI Ei N ALEXANDIL4'S HOUSE ASSOCL4TION REPORT OF THE COUTr4CIL (Colltinlled) VEAR ENDED 31 DECEMBER 2022 STRUCttlRE, GOVERNAI¥CE AND MAn4AGEIVIEf4T Status and administration The orgaDisation is a charitable c(llnpany limited by guaralltee, number 00042575. The thritsble cowy is governed by its Memorandum and Articl&s of A&qo¢iatioJL dated 26 Nov¢n￿er 1894. Th¢ Trustees are cumtly conduclillg a governance review. Re¢ruitmellL induction and training of Members of the Council The directors of the Gollyany aTe al80 the eharity trustees for the purposes of charity law. and ulld¢r the conwally's 8rticles aTe knowi as me￿berS of the Council. In a￿Orda￿et with the Memoran(lum and Articles of As$CKi￿l0￿ tbe members of Council aTe APPOiDted by HRH Princess Alexttttdra (l), thc Cotwui58ioners for thc EKhibAtioll uf 18il (2), Royal College of Muslc (3) and thc DeparnneaT for Education (4) alld serv¢ for five yean and may be ￿appointed every fthh year. All members give their time voluntarily and receive no benefits from the ¢han"ty. They make the D￿JOr decisions affecting the affairs of the charity. All new mellLb¢rs are provided with ijjforniatioll oll the r¢sponsibility of being a Trust¢¢ an￿ fro]ll tim¢ to time, are Sent detsils of courses alld Sernina￿ wbich may be relev3nS th the.Ir regponsibilities. The elwity does not U8e VLilw]teers. M¢mb¢￿ of tkn CounGit th￿1]F￿1v￿g Ar¢ uppoitited with wide exp￿1¢￿r¢ ¢ls¢wb¢ir wbib'll llL¥y btiug to tbe benefii of the chariry on a voluntary bas￿. Organi5ational structure CoulltrAI utr h¥ld (brcc times a year and are pr¢ceded ty trinallce and Management Cojnmxttee meetings. The Committe¢ meets three times a year to discu&s with the Principal rnatt￿5 relating b the running of the House, improvemejjts, ¢aterillg and residents, welfare. An itLYitation 18 sent to all resÉdents to speak to the House CozDmittee Chairman and the Pr￿CIpal before the rne¢tings. Itnplementation of Council decisions is the responsibility of the Prillcipal and her maTtage]nent teartt. The Priacipal reports at Council hleetings on operntional Jnatt¢ES. Thc Cou]LciI th¢ it￿U￿rIall￿n uf ]]wemeni personnel (E%MP, buttLPtising the PrinclpaL ttLe Head of Maintenan¢¢, and the Housekeepcr} allnuaily having reg￿ kn Ioc21 and national pay levels and relevant pay indices. OBJECTTVES AND AcmTriLI S The prillcipal activity of the Association is tbe provision of ac¢oD]modation forwomen sttthnts engaged in fAth time educati¢)ll. A5 a r¢sult of the expallsion of women's training in the 1870s there was a pressing n¢¢d for more facilitics for the ac¢ommodation of girls. TheHouse wagbuiltin 1884 &8 A cuqti)M_￿]Ilth￿.*te.l frotnmoneyprovidedby several benefaetors, includitig SJrFroncxs Coo a￿lm)all of Cook's of St Paul's Chur¢hyrf and Henry Doulton of DouitOD & Co, the potty and tilemaker. The beneficiaries of thesr largesse were from the very bEgin￿illg girls in statu pupillaTi, priority beittg given to students of music. The were to providereasonabEy priced and secure hostel places ￿11 board for girls and young womcn coming to tA)udon from (be proiinces OL fiuLu vvrtbrats. If this was a PrnCTlcal and necessary aim ￿ the IIS¥Us. it ￿ evell more important today, when the ca8t nf accon)modation limits severely the availability of safe and suitable places where shdents llydy lodge ia centrd tATrndon. An added f¢aiure of the House is its design ¢0 give s￿dellts of the arts a centre where they carA practice, reb¢arse, and perforni. This is a ￿Uch needed ben¢fit as there is very little pt3ctice alld perfonnance spac¢ available in central London. The Presidellt at the foundatiou was Priti¢eÉ8 Al&vndxa of DeDmorK thc PriryGr46 of Wales aud lat¢A" Querll AJrxall(Jrd. Quccll Mary and the D￿CheSS of Kellt succeeded ￿ the presidency followed by the present presidcllt H.ILH Princess Alexaudra. As tbe charity operates in the central LondoEL ELwket for S￿dellt accon)n)odatioll, it contiJJuously monitors developments in that sector and the potential effects of Gompetitioo on its stated occupancy levels. Deposits are taken in advance for futtwe lettiug p￿il￿1s. a waiting list is maintaineiL fees are reviewed annually ￿7th reference to qimilar prnvide.rA 8oiind biidgeting 4nd fIt￿cial plans are iti pla¢e ald are *tcd ot leagt tbtee titiLes a y&2r to firtbcr cAwblc its aims to bc The clwiLy'b PIillUiPdl shott_tenn objectives are ￿ proiide a saf¢ and happy envErollJneot for over 100 resident femal¢ stthts, aTLd io optimise oecupaaey levels. The longer-terni aim is to improve the quality of aGwmmodatiOll by up-grading the propety both illternally aod externally witl)in the parameters of a 5 year plam alld a8 fimds perniit. QUEEN ALEXANDRA'S HOUSE ASSOCIATION REPORT OF THE COUNCIL (Cothtinued) YEAR ￿p￿DED 31 DECETrJBER 2022 OKFECTIVES AND ACT￿rrIEs (Contlnued) Publie Benefit W¥ have paid due reg&)￿ to the gllidance on publtc bcn¢fit ¢tsntain¢d in thc Charity Commission's literature when r¢viewing our in)s and objt¢tive8. and in planning our future activitie6. We have 8¢t aside a bursary fund for resident8 who are in Fu￿ncLaI th.￿l￿1ty attd tleed assistance with accommodation fees. What is the accommodation in (2ueen Alexandra's House'l When the bouse was built in 1884 there were rooms for 130 girls. in 1976 a large part of the building including most of the public rooms was leased to the English National Ballet (ENB) in order to fi]nd ext¢DSiV¢ upgrading requim¢nts, and that lease was 48signed to the Royal College of Mugie in 2021. As a resiilt of c.are.fiil gdxptAtinn nve.r A niimhe.r nf ye.RT.%, there ￿re Illg rn()m.q with good illi¢Tn¢i fukniliLi¥s &ivailablr wliAbli fir4uriiLly dttrdlli SI￿￿111]uJ￿ I￿¢15 of oGGupaJ]Gy. r.roin tlir vrry foundation of the IIou6G there have been many overseas S￿dentS who have come to London to skndy and have discovered in QAH a saf¢ plac¢ to ￿Side and to attend tbeir coutses. In the 19608 there were students from many Commonw¢alth countries includiRg Cal￿d￿, Kenya and India. to these and to many slud¢nt8 from all part8 of the United Kingdom there have been added students from the Far East Including China and Japan. The 2022 regidentg represented 19 different nationalitie$. It always been the policy of the. Hoiise. to mgke. no Tac¢. Golvut Ur￿li¥1￿U¥ di¥Liu¥iivii. All we WtIbv￿ts alld this v¢A"y AIlUGli to thc publLG bNicfit. Tlit Cl￿rIty'S ronstitution x]thkes prt>vision to"a56ibt £cmalG $tud¢nts with gr$￿ts of moncy and othcr aid ond to found wholurship$. exhibitions and prizes tor tcmale students." ACHIEVEMENTS AND PLRFORMANCE During the 20•1122 8eJne8ter8 S7 female students stayed at QAH. They were gtudytng At the £ollowin8 institutions, numbering 18 from the Royal College of Music, 4 from th¢ Royal College of Art, 41 from Imperial College, 16 froTn the English Ntttional Ball¢L l from the Royal Academy of Musi¢, 2 from the Central School of Ballet, I from Kings. I from Ashbourne. I froni the Guildhall School of Music and 2 from MPW. During thr Surnm¢r Terni of 2022 QAH was approach¢d by English National Ballet to Scc if we would be able to help house 2 Ukrainian retiigees ulltil tbcy could tind a suitablc tull-tcrnl Dlacemenl. The Reception is opeTational 24 hours alld pastoral care provided throughout the residents. stay at QAH, which is welcomed by the residents. parents and guardians alike. Residellts have acc¢55 to rnany fornis of ¢ommuni¢a¢ton with the Principal and the 8enior g¥m¥nl A bU￿r￿Liv￿ buA yivviard (Ui vyrii-duui yulLkny (iduyLrd. DLuili￿ yrtll, likr lliiwiy Viga￿￿ball￿1lI5 t]L¢ House was again impacted by the Covid_19 pandemic Oll both fInanci￿ and social fronts and these were pioperly and adequately addressed. Mailltenanee of the House Queen Al¢xandra's House is a Grade II listed building in free JacobeanlQueen Anne revival style prominently located nexr to the Royal Albert Hall. Much effort and activity is diwt¢d towards its maintenanc¢ as a Pu￿serb￿lIt hostel and part of London's heritage. The Housc has no ￿dOWm¢n1 to fund short or long-tcrm maint¢nan¢c. A bum of £66,475 was cKpcndcd on building wojks durinE the yearto include the replacementand the upkradeto gtudents, kitchens. and the mwor repairs to the MarkovaHouse fa¢ade. The e]wity has not encountered any significant fa¢tors in 2022 that have aff¢¢ted the achievement of its obje¢tive. FINANCIAL REVIEW The main Sou￿¢ of in¢ome is th¢ f¢es r¢￿1V¢d for S￿dent a¢¢ommodation. Expenditure consists principally of the ctssts of aintaining the propety and cateiing for the students. The Statement of Financial Activities discloses net income of £53J69 {2021: £228,68Q net expenditure). The negative fllwi¢ial impwt of the Covi&19 patsdemic begao to tLrn around in 2022 with the lifting vfcuviU-19 rr?itrib1ivJ￿. Owwiby Irvrl¥ ¥i¥llifiu(iuI uplift in Lh¥ Surntncr Auiull]n i¢tm¥ with ocrupancy Icvcl¥ alJno¥i at capacity in the Autumn tem). The charity continued with its commitment to completing substgntial refurtiishment work8 which in the year included works on the faFade of Markova House and rollitig maintenance works. The charity does not fundraise direct from members of the public. QUEI EN ALEX4NDRA'S HOUSE ASS0CL4￿0￿ REPORT OF THE COUNCIL (Colltinued) YEAR ENDED 31 DECEMBER 1022 FINANCIAL RE￿w (CoDthiued) Reservey Policy The Coullcll's Cutrent poJi¢y is to maintAin 'free resetves. IUllrestri¢ted general l¢ss nei book value of fixed ￿ets) at apprOXi￿atelY the level of six months, recutting expcndittwe w]ll"ch amounted to atound £550,000,. free te8¢rves were £499,902 at 31 Dcccmber 2022. The Targetis achieved ai approxirnatly ).) molltbs12U21-4.4 llLonths with a12-month target). Atl l De￿eMhpr 2022 general fimds amounted to £549,185 (2021: £429,341). Designated fimds, being amounts set aside to replace major plant alld equipment (Thc Buildtng Capitsl fimd) aad to assist residents itt fmancial d3fficulty accoDwiodation fees (Bursary Fund) amOUDt￿ to £401.312 (2021: £467.787), jnakillg totsl funds of £950,497 (2021- £897,128). Thc Building Capitsi fiLttd will ultillMt¢ly br uwl ￿ rrplaL¢ ￿￿]oTPlan[ such &8 the llft and boilers, at the end of uselul lives. Th¢ is esttmated to bebeYc>I￿ 15 yeaTS (i.e. after 2030). Under tbe 5-year rollthg plaTr, the fi￿dbalallee was £381312 by th¢ elld of 2022. The trustees did consider the ijnpa¢t of the cO￿d-]9 pandemic in ftsrniulating the clwity's Reserves Policy and in assessing the charity's abitity to coutinue as a goin£ ¢Ollcern. Wbilst occllpancy levels remained below the maxymllm in the. e&rly part of the yeAr, thp. r.hority has ￿l£fIcIent reserves to eDÈure it meet its fjthgncial ob]igationa for thc fo￿$¢Cable filb￿. Risk Management The Council h#$ rwiewed the D￿J￿r ri8k8 its which th¢ A￿0¢￿tio￿ 15 iu VI￿lI￿Ul￿T th05c rclated TO the operaTion and f]nall￿, and ore saiisfied tbat SYSt¢n￿ are m place to nllts.gatc CXPOSUTe to these risks. A compliance regi8ter is kept. The t￿e¢ prsncipal risks identified as uncertainties that might Confront the charity are i) a loss of income through a sudden fall in dentsud. ii) the need for any major unplanlled c3Pital spenditig; and til) any medium-lenn social changes affecting the central London accoJDmodation nwket. These maiti risks ate managed and forthe 2nostp8rt mitigated by i) sbort-lem) ongoing tD¢ome review and maintenanee of & waitimg lisL' ii) the regutar monitoritig of a 5-year rolling capital pl￿ and iii) ￿gUlar liaisoll with otber major proNuders of Lolldon student accon)modation. Due to the Covid-19 Panden)ic al￿ a new Covid-19 Ilisk A55e58menl poli¢xes and procedures were put in place that 8ov¢rnment guidelio¢s were followed to mitigate I Milli￿Se the risk of Covid-19 outbreak5. There was a reduciioo in occupancy leve]s and fee illcome early in 2022, but non¢theless, it is aoticipated tbat iuwme will ww Stradily in 2023. Investments Policy The Council have the power to invest in such ass¢ts as they see fiL No ijjvestsnents were hel FUTURE PLANS The Associ8tionplans to attain ￿￿ximuM levels of occupancy in fiTbJreyears. Thts it intends to achieve by rnaintaining its prellktse8 in a good state of repair and ￿￿0VIdIng excellent caterillg and other facilities to ensure tbe Hous¢ continues to meet the expectations of its present and re4idents. In nrtqtrr tn Ar.hieve the Aexibility to progres8 PO88ible, It 16 the CouncAI's int¢ntion to kccp restTh¢s at thc targci l¢vrl. In support of thc6¢ policics, Cvullbil ILdS' pf¥pdred a"Five-yw capittl impmvemeniplan" wlll"¢h Js reviewed at each neeting. Th¢ Members of the Council's stated aim now and for the foreseeable futhre 18 to ¢ontinut the provision of female student ac¢ommodation on its origitLal site and to ovettce necessary i]nprovements, as it bas done Sin￿ openillg in 1884. They believc that this view will continue ro remain a coJJstanL QUEEN ALEXANDRA'S HOUSE ASSOCIATION REPORT OF THE COUNCIL (ContSnued) Y￿￿1 ENDED 31 DECEMBER 2022 STATELIIENT OF MEMBERS OF THE COUNCIL'S RESPONSIBILITIES The Mcmb¢r5 of the Council (who are also the ttust¢es of the charity for the purposes of charity law and also directors for the putwses ot ¢ompany lawl arc responsible for preparing th¢ Report of the CourLoiI and the fthan¢ial statements in accordance with applicable law and Ullited Kingdom Accounting StaI￿ards Iurrited Kingdom Generally Accepted Accounting Practice). CompaJLy law requires the members of the Council to prepare f]n8ncial statements for ea¢h finÉwcial year which give a tNe and fair view of the slate of atrairs of the charitable ¢ompany and of its iTh¢om¢ and expenditure for that p¢riod. In preparing th¢s¢ financial statements, the men)bers of the Council are required to.. select suitable a¢collntJng policies and thell apply them consi8tenlly,' observe tbe methods and principles of the Charities SORP. ]nake judgements and ¢8timat¢¥ that are reabonable and pn￿ent. tats TrYh¢th¢r applicoblc UG¢ounting 6tondord8 hav¢ b¢en followel subject to Ally material departures di6clo$ed and ¢xplained in the t]nancial statements,. prepare the financial statements on the going etsncernbasis unless it is inappropriate to ptEsume that the company will continue in business. Tli¢ tn¢tnbers of thc Council ￿sponsIble for keeping proper accounting record8 that disclose wÉth reasonable a¢¢uracy at ony time the financial position of the oharitable company and enable them to ensure that the fin8ncial statements comply with th¢ Companies Act 2006. Thcy arc also rcsponsibl¢ for safeguarding the asset8 of the charitable company and hence for taking reasonable 8teps for the pr¢vention and detection of fraud and other irregularities. So far as each of thc mernbe￿ of the Council aye aware at the time the report 18 approved.. Lur i¥ uv irI¥v￿lL audit I￿vill￿tio￿l ofwhi¥li the collipaiiy's auditoto arc UllaW￿￿. alid the members of the Council have taken all steps that they ought lo have tglien lo make themselves aware of any relevant audit ]Dfoll[￿i0￿ and to establish that the authtors are aware of that inf0m￿tiOn. AUDITORS A resolution proposing the re-appointment of Hay8macintyre LLP as auditor8 to the company will be pui to the onnual g¢ner81 meetinE. In preparin¥ this re￿rt the Trustees have taken advanthge of the small companiey exemptionyprovidedby Part 15 of the Companies Act 2006. On bell￿£ Of the Board 28 March 2023 kri￿lI1¥lU￿ Ouir London SW7 A Harvey Esq (Chairnian) 4DEPENDENT AiIDITOR'S REPORT TO THE MEMBERS OF QUEEN ALEx￿DRA's HOUSE ASSOCIATION Opinio We have audited the fman¢￿1 ststemcnts of Queen Alexalldra's House Association for tbe year ended 31 December 2022 which ¢ottxprits¢ thc StatGm¢nt of r.iiiatiGial Afjtiviti￿, Bal£wkn¥ Shrr4 f)f Cash Flows and noies its the fjnancial statements, illcludJJg a sumJnaryot signtticantaccounting policies. The fJnaDcial rq)offing framework thktbgs been applied in theirpreparatio is applicable law and United Kingdom Accounting Standards, includiELg Finall¢i81 Reporting Standard 102 The Flpkanc￿1ReYort￿g Sthndardappltcable in the UKandRepublK oflreland UJrrited KJThgdom Genern]ly Accwtsd knouTLting Pftactiee). Ill our opin1c￿, th¢ fuwiknial 6tatellL¢lllb. giv¢ a true and fair view of the state of tbe c]witable comparly's affairs as at 31 December 2022 of the charitabl¢ company's net movement in ill¢Euding the incolne and expendits￿( for the year then ended; have been properly prepared in a¢cordallce witb United K]llgdom Geuerally Accepted Accollnting PrAr.titr.p.: xnd have beerA prepared Jn aceordsnce Rryth the rtrquwements of the Compotit¢s Art ￿006. B#$is for opinion We collducted our auth"1 I￿ ￿CordanC¢ with International Standards on AllditiDg (trK} (ISAS (UK)) and applicable law. Our responsibi￿.tseS wider those standards arc fifftber described in the Auditor'8 respnnqyl)ilitie.< fnr the aiidit of the fu￿1¢1￿1 gt2tÈmerAts 8eetion of our rewrL We are itidependent of the charity in accordonc¢ with th¢ ¢thxral requir￿c￿ts tILat ￿"¢ irlevPI￿A￿lI. Conclusions reladllg to going eoneern Iu auditing the fAn8ll¢ial statemellts, we hav¢ ¢on¢luded that the Members of the Council's Use of the gning tnne.prn hasis of accnuntimg in the. preparatiots of the fmanei21 gtstements 18 approptiate. B&8ed on the work we have perfornied, we have not identified any material uncerlaintieg relating to evellts or conditions tba( itidivi(knally or collectiv¢ly? may cast sigDificallt doubt on tb¢ charitable compally's abi]ity (o continu¢ as a going con¢ern for a period olat least twelve months trom whcn the finan¢xal stateD]ents are iuthnriqeAI fnr i￿?17p. Ourryonsibilitie5 aadth¢responsibilÉtie$ of theMembeTr ofthe Council with respect to goitig cO￿e￿n are described in there1￿an1 seetions of this report. Vther illtormation The Members of the Council are responsible for tILe ottLer inforniation. The otI￿r iJ)formatioL ¢ompr%ses the iDfolll￿ti0o iA¢hthd ill the Repon of ttL¢ Coullcit. Ollr opinion oll tILe f]n&ucial st￿1￿cnts do¢s not covei the other inforn￿tiOll aod, except Éo tbe extent otherwi.se. pxplie.Itly 8tatp.d in thirT@po¢ we do not expresg 4ny form of assurance ¢on¢lusioo th¢r¢on. In comie¢tion v/ith ouraudit of the fthancial statcments, ourrcsponsibitity is to rtad the other infonllation an& in doitig w, consider whether the other inforniation is materially inconsistellt witb the financial statements or our kTowledge obtained in the auth"t or otherwise appears to be tnaterially misstated. If we identify su¢h makniai ilLCO￿$L4ttnc]e8 nr appxtrpnt rnaterial tillsststeuxeots, we gre required to detertijine whether there is a material mithtatemcnt in thc fJxxallGial stat¢m¢llts oi a J]]atei"idl lu1bbiaLr￿rlll ulth¢ OLbcr infor￿atIOn. If, based on the work we have perforniryl we collclude that there is a ma￿la1 misstatement of tbis other infornjation, we are required to report that fa¢L We have no¢bmg to report in this regar Opimons other matters prescribed by the Companies Aet 2006 In our Opinio￿ based ox) the work undertaken ia the cours¢ of thc audit: the iDformationgiven inthe Reportof rhe Council (wlll"ch incorporntesthe directors, rq)ort) forthe fmaocial yearforwhi¢h the fitwi¢ial statements are prepared is consistrnt with tbe financial $tatcments' i¥ dir¢LIOfo' rcporc included within the l(eport of the Louncll Ikas been prepa￿1 in a￿Or0allee with applicahle leg21 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF QUEEN ALEXANDRA'S HOUSE ASSOCIATION Matt¢r5 OD which we are required to report by exceptlon Jn the ILght of the knowlcdge and understanding of the charitable CoMp￿Y and its environment obtsintd in the course of the audit. wc IiavG not idmtified Material mi33talGmonts in thc Rcport o£th¢ Council (which inwrporat¢$ the dire¢tors' report). We have Dothing to report ill respect of the following ynatter8 iTh ￿latsOrt to which the Companies Act 2006 requires us to report io you if. in ovi. opinion.. adeqiiate aCeAXillting recnrds have. nnt hpp.n kept hy the chAritshle. cnmpany. ar bIMri￿bl￿ wjijywiy fujdiibidl &iateiJicllts akc llot lli a8Lerni¢iit witii thc aGiounting Iwor(Ls and r¢turn¥- or c¢rtain disclosuies of Members of the Coun¢il'8 remunuation specified by law are not made., or w¢ have not received all the ￿￿ornIatiOn and explanations we require for our audit. or thc trustees were not entitled to prepare the fjnancial statements in accordance with the small companie5. regime and take advantase of tho sm411 eotnpanie8' exemptions in preparins Report ofthe Council and frorn the requirement to prepare a strdtegic r￿ort. Re5poDsibi]lties of Members of the Councll for the flnancial statements As explained more fully in the Statement of Member8 of the Coun¢il Responsibilities set out on page 4. the Mcmbcrs ot'thc Coun¢i] (who or¢ also the tN6tees ofthe charitablp Gompany for th¢ purposes of charity law director8 of the charAtable company for the pun)oses of Compally law) are responsible for the preparation ofthe tinancial sthiemenrs and for being saii8ficd that they give a true and fair view, for gueh internal control as the Members of the Council detennine is necessary to enable the prepgrgtion of tlnancial siarernents thai arc f￿¢ frvm rn¢tt¢rhil ￿1￿Id(￿￿￿￿1, whtrLb¥r du¥ Lu rtiiud ur ¥trur. ]n preparing the financial stat¢ments, th¢ Mernbers of the Council are resptsnsible for assessing the Charitable company's ability to contir]u¢ as a going concern. disclosinx. as applicable, matters related to concem and usinx the £oin% conc¢m basis of accounting un1¢$6 th¢ M¢mber8 of the Council exther intend to liquidate the charitable company or to cea8e operation8, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial State￿entS Our obje¢tives are to obtain reasonable assurance about whcther the t]nallcial statements as a whole are Iree ttom material rnisstatement, whether due to fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable a&qurance is a high level of a￿UranCe, but Is not a guarantee that an audit Gondu¢ted in a¢¢ordanG¢ with ISA5 (UK) will always detect a material mi5gtattsment when it exist8. Misststements can arise frorn fraud or em)r and are Considered material if, inth"vidually or in the a¥gr¢¥ai¢, thry ouuld ￿0¥undblY ¥Xp¥Ll￿ lu ]￿lu￿￿￿￿ WVnUrniL d¥Ll¥iV￿ of tsk¢n un th¢ ba6.ib uf th¥b¥ finilllknidl statements. Irregularities. including fraud. are instances of non-compliance with laws and r¢gulation¥. W¢ d¢$itsFn pro¢¢dur¢s in line with our re8P0118ibi]itie8, Outlined above, to detect material mi88tatetnentE in re8peet of irregulariti¢8, iA¢luding fraud. Th¥ ¢xt¢At to wbieh our pro¢¢duies ar¢ ¢apable of det¢ctlng irregularltles. In¢ludlng fraud Is deialled below: Based on our ullderstanditig of the charitable company al￿ the environment in which it operates, we identifjed that the principal risks ot non-compliallcc with laws and rcgulations relat￿1 to compliance with employment law. health and safely regulation8 and charity law, and we considered the ext¢nt to whi¢h non Compliance might have & Material effeot on the f￿￿￿01￿1 $totements. W¢ also considered tbose laws and regulations that have a direct itnpact on the preparauon of the flnancial staiements such as the Companies Act 2006 and the Charities Act 2011. We evaluated man82em¢nt'8 ￿centIVe¥ and opportunities tor traudulentmanipulation of the financial slatemellls (including the risk of override of controls), and detennined that theprincipal risks were related to recognitionof income andmAna8¢m¢ntbias in certain a¢¢ounting estimates. Audit procedures perfortned by the engagement team included.. IJisp¢GtUlS JlllllUt¢s of Couii¥il iii¢trtiii¥s' Inspecting corre8pond¢nce with regulators and tax authorities. Di5ciissions with management in¢luding consideration of known or suspected instsn¢es of non-¢ompliaTLce with taws and regulations and fraud. Evaluatlng management's eontrols desi8ned to prevent ond detect irregularitieÈ,' IdrIiLifyiii¥ oiJLI 1¥siill¥ juutll(11s. in panicular Journ￿ entries posted ai the year-¢nd and with unusual descriptions. and Challenging assumptions and judgements made by management in their critical accounting estimates. INDEPENDENT AUDrroRS REI PORT TO THE I￿EL¥IDERs OF QUEEf4 ALEXANDRA'S HOUSE ASSOCIATION RÉY.AtLV. of the. iTtherettt ]xJnitatioDs of an audi( there xg a rigk that we wAll not dttsct all irre8ulatitit$, in¢ludxn8 tho$G I￿ainS to aterial ￿1$S￿(e01ttst ia th6 financial stat£m¢nts or nonr similar a¢ctsuThL Creditors alld provisions Creditors andprovi$ions are ￿Ognised Whe￿the c]wityh&s a present obligati0nres￿ting from apastevent tbat will probably result in tbe trdnsfer of to a third paty and the amount due to settle the obligation can be measured or estimated reliably. Creditors and pmvi*inns Are. nnrnLally recognised At their 8ettlemeJLt&TllQWIt aftor allowing for &lly trade dAseounts due. VAT Thr Lhdrity is registered for VAT bui is Ullable to r¢cla]m all ot.the inDUt t&x inauTe& Irrecoverable VAT Y8 rhArEpd to the expeTrditt￿¢ head7Dg for which it was illcurre Operating leases Reatsl charges &re charged oo o strax8bt linc b8ai8 ov¢r the ]if¢ of thc leasc. 12 qJUbblY ALLL4LYIPIIA'S HOUSE A55OCIATIOI NOTES TO THE FINANCIAL STATEMENTS Yfi Ali 31 DE4 CEMBER 2022 ACCUUL¥'ItNG POLICIES (Continued) Funds The diff¢rent fu]Lds' are deftned as follows.. R￿trIcted funds are those funds which are to be used in accordance with specitic instructs"on8 unxx)sed by the donor or tTUYt deed. Unre8tri¢ted fi￿d8 are those funds available to the charity for its general PUTPQS¢S. Th¢y tnclude funds designated (No(e 71 by thc mcmb¢T¥ vf th¥ CuunLiI fuI P(￿(]￿Ul{l[ puwus¥5 wlirir thrit Ubr irii1aii￿ UL Ilir dio¥irliuIi ul the members of the Council. Amounts may be set aside each year on the b&8is of expected requirements formajor repai to premises, replacement of tnajor equipmellt and pianos foruse by resident students. A transfer Is mad¢ frorn General to D¢signated Funds and the cost of the repairs or replacements are charged against th¢ fund as they arise. AmOL￿ts n]ay 8180 be get a2ide for the proviEion of bur8arieE to s￿dents who through h2rd¥htPy would othèrwise be unable to afford ac¢ommodaTlon at the House. TransfeJs are made inw this fund as required. It is the policy of the members of the Council to retain in unrestricted funds, amounts which tn their judg¢m¢nl. ¢an help to mitigate Ibe short lerni efTects of income volatility and retsin funds to generate sutticient income lo meet cuttent and future operational a¢tiviti¢s of the charity. Incorne Thi¥ ¢01npri¥¢s t￿￿1vabl¥ fr￿￿ Ihv V&1EiUUS Huus¥ abiiviiirb iIiv¥btsiirllL illLuui¥. All illbuillr i¥ Ewu¥iii¥rd once Ibe charity has entitlement lo the income, it is probable that the income will be received and the arnount of in¢om¢ can b¢ measured teliably. In¢omo from ¢h￿ltsbIe aetivitie8 18 recogni8ed as earned as the related service8 are provided. DoTYations are recognised when the ¢harity has b¢¢t) notified in writing of both the arnount ond s¢ttiement dat¢. In the eveni that a donation is 8ubje¢t to conditions tbat require a level of perfornL2nce before the charity is entitled to the nd8. the income is deferred and not recognised until those ¢onditions are fully met. or the fu]filment of tbose oondition$ io wholly iyithin tbe ¢otttrol of the oknrity L￿d it probable tbot thots¢ ¢ondition$ will be fulfilled in the reporting period. Interest on fimds held on deposit is include when receivable and the amounis can be measured reliably by the charity. this is normally upon notification of the interest paid orpayable by the bank. Kxpenditure Liabilities are recognised as expenditure as soon as there is legal or con8trnctive obligation committitig the charity to Ihatexpendi(ure, it is probable thaisetdementwill berequlTed, and the amouni of obllgailon can be measured rell&bly. Expenditure 18 recogni8ed on an accrnals basis as a liability is incu]Ted, inclusive of VAT, which cannot be recovered. Charitable a¢tivilies ¢omprise mainly of the provibion of aicolllmodation ]ncIL￿1￿8 welfare aTMI catering, premise and administrativ¢ ¢os18. Suppon c0818 have been alloCa￿d to charlrable activlil¢s. fjovernance co$￿ Comprise those costs relaEed to organtsation and compliance with constitutional and 8tstutory requirements. Costs include direct costs of external audit, legal fee8 and other profwional advA¢e. Vin#ttLiHI in5trutnents The Gharity only ha5 flnancial a8S¢t8 and financial liabilities of a kind that qualify as basie financial in$trnrn¢nt$. Basic financial instruments are initially recognised at transaction value and subsequtlltly measL￿ed ai their setilem¢ntvalu Pension5 The charity operate5 a def]ned contrtbution pension plan. Contributions are charged to the Statement of Fin8n¢ial ActivitiG8 a8 they be¢ome payablr. The Gharity has no liabilily b¢yond making its colltributions and paying across th¢ deductiolls for the ernployee's contributions. 13 QUEE4 N AL£1 XANDIiA'S llOUSE ASSOCIATION NOTES TO FThANCIAL STATEL￿ENTs (Continued) EP4DED 31 DECEMBER 2022 ANALYSIS OF EXPEf4DITtYRE Other Costs Totxl 2022 Total 2(121 Staff Costs Depreciatfioll ChAritable Actlllty: Fro￿s1On of accOmmo￿lOn.. We]faTe and catering Premises costs Support costs Gov¢m8n¢e costs 202.338 60,701 141.637 316,158 243,231 78,142 30,755 518.496 316,119 219,779 30,755 459,034 300,389 201,225 19,604 12,187 404,676 668286 12,187 1,085,R49 980.252 2021 COMPARATIVE Toral 2021 StatT Costs Costs Depreciation ch￿￿table ALÉivily- Provision of accomjnodation.. Welfare and catenng Premises costs Support costs bosts 186,131 55,839 130293 272,903 232,363 70,932 IY,OU4 459,034 300,389 201,225 19,604 12,187 372.263 595,802 12,187 980,252 2022 21121 Governance costs in¢ludc.' Audit fees Other fees payable to th¢ audittsrs 13,850 3,938 11,750 1,200 STAFF AND TRUSTEE RE1￿IV￿ERAT10N AISD BEIIEYITS 2022 2021 Staff ¢osts include.. Wdg¥b and salaries National Insurallce Pension ARency staff 323,939 24,899 6,839 48,999 313,029 27,547 7,079 404,676 372,263 'I'he av¢ra£e number of en]ployee$ during the yeAr 14 No ¢mployee earncd over £60,000 in th¢ year (2021- none). Total ¢Jllplvyrr IKllrfiiJ paid to key maoagemeni persoJ￿¢1 post hold¢rs amounted to £l25.78312021- £132.047). The Tre&8Uter Robiti Bell reeeivd an honorarium of £6,OOQ for providiug professional financial support and advssory s¢rvices, wior to b¢coming a Trnst¢e of the charÉty in March 2022. No otber mernbe￿ of the MembeTS of Council received atty emoluments ttor were Trimbursed expèjW￿ during the y¢ur (2021.. Nil). 14 QUEEtY ALEXAP4DRA'S HOUSE ASSOCIATIO NOTES TO FINANCIAL STATEMENTS (CoDtiDued) YEI AR ￿lYDED 31 DECEMBER 2022 UXED ASSETS Improvemellts to Long Legsehold Properly Furniture And Fittings Plant Eguipment Total C•st At l January 2022 Additions 22255 26,898 218,694 267.947 AL 31 D¥briiJb¥i 2022 22,355 26,898 218,094 267,947 Depreclatlo At l January 2022 Charge for the year 22,J54 20.870 6.027 163,253 6,160 206,477 12,187 At 31 December 2022 22,354 26,897 169,413 218,604 Iyet Book Value At 31 December 2022 49,281 49.283 At 31 De¢¢mb¢r 2021 6,028 55,441 61,470 DEBTORS 2022 2021 Trdd¥ d¥bLur VAT recoverable Prepayments 5,741 6.781 1,960 9,257 39,402 5J27 14,482 53,986 OTHER CREDITORS 2t122 2021 Trade creditors Accruals ol]L¢￿ taA¢s alid SOGAal s¢Gui"Aty 77.544 24,391 7,080 26,086 23,016 18,184 109,021 67,286 15 oirEEN ALKXANDIi&IS UOUSE ASSOCLiTION F40TES TO FINANCIAL sTATE1¥￿NTs (CDDtinued) YLAK blYDbD 31 DECEMBER 2022 DESIGNATED FUNDS Balance I January 2022 Tr4nsfer froml(to) Expenditure Gelleral Futtd BslaDee 31 Deeember 2022 Ineome Building Capitsi Trulld Bursary Fund 447.787 20,0(K) (66,475) 381,312 20,0(X) 467,787 {66,475) 401,312 2021 COMPARATIVE Balsttee I Jalluary 2021 Balance 31 December 2021 fronV(to) Expenditure Gener￿ Fund Incojlle Building Capitat Fund Bursary Fw 503.340 20,000 (55.553) 447,787 20,000 523?40 (55,))J) 467.787 The purpose of the Builditig Capital Fund (BCF) is to build up a reseThTe for the ultimAte. replaeement of tn&jor plattt alld equipment (lift, hnilprg. alth roof cOv￿lL88). Et was est#bli6hed durims 2013. Exp¢lldituK¢ ou llv4juI rrpdir worL8 in the year have been ¢harged to this fi￿¢1 The Bursary Fund (BF) is for residents who are in fllwtciai difficulty and need assistance with accon)modation f￿. It w&s Cbiablished ill 2019. AIYALYSIS OF f+lET A&SETS BETWIEN FiJf4DS Central Funds 2022 Designated 'unds Total Funds Fixed assets Current assets Currnt li&biliti¢s 49.283 1,062,426 [5ti2,524) 49283 1,463,738 (562,524) 401,312 549,185 401,312 950,497 21121 COMPARATIVES General Funds Designated Futtds Total Funds Fixed 8$8ets Curreut assets c￿￿ellt liabilities 61,470 837,362 (469,491) 61,470 1,305.149 (469,491) 467,787 429.341 467,787 897,128 16 QUMLIY ALLXANJPXA'S Holls￿ ASSOCIATIorq NOTES TO FINALYCIAL STATEMENTS (Colltlllued) YEAR ENDED 31 DllCEMBCI R 2022 OPERATING LEASES At the year end, tlLe cltsrity l￿d minirnum lease P￿YMentS uud¢T non-cancellable operating leases as follows.. 2022 2021 Within one year Within two to five years 17,878 47,498 18.890 65.376 65,376 84,266 10. RELATED PARTIES There were no rela￿1 parry transacdons in elther the current or WIOT yw. 11. TAXATION The Assooi&tion is k) registered charity and tto taxation is payable on its in¢om¢. 12. COMPAItATIVK STATEfYIENT OF FINANCIAL ACTIVITIES (2021) Unrestricted Funds Deslgnated Tot*1 21121 llNCOME FROTrq: Charitabl¢ a¢tivities- accommodati¢)n 740,984 740,984 Ik)natson3 tsttd I¢sa¢ic4 1,400 1,400 Investments 707 707 f)ther i￿enMe 8.472 8.472 Total 751,563 751,563 EXPENDITURK ON: Charitable activity- provi8ion of accommodation 924,699 55,553 Q80,252 NET MOVEMENT FUNDS (173,136) {55,553) (228,689) RECONCILJA TJON OF FUNDS.. TOTAL FUNDS BROUGHT FORWARD 602,477 523,340 1,125,817 TOTAL FUNDS CARRIED FORWARD 429,341 467,787 897,128 17