FORWARD HOUSING SW (A charitable company limited by guarantee) Registered No: Charity No: TRUSTEES REPORT AND FINANCIAL STATEMENTS

Transcription

1 Registered No: Charity No: TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013

2 CONTENTS Page Introduction 1 Report of the Directors and Trustees 2-16 Report of the Independent Auditors Summary of Money 23 Statement of Financial Activities 24 Balance Sheet 25 Notes to the Financial Statements Widgit Literacy Symbols copyright Widgit Software 2013 Tel:

3 INTRODUCTION These papers tell readers what the charitable company has been doing between April 2012 and March The directors have written about what has gone well and what needs development. You can see how the charitable company has managed its money. The accounts have been checked by our Auditors Clement Keys LLP. Some of these papers must be written in legal language. We have introduced each section with an Easy Read text box. Page 1

4 REPORT OF THE DIRECTORS AND TRUSTEES year ended 31 March 2013 The directors are pleased to present their report and financial statements for the year ended 31 March Reference and Administrative Information Charity Name Forward Housing SW Charity Registration Number Company Registration Number Registered Office and Principal Address 134 Edmund Street Birmingham B3 2ES Company Secretary Simon Conway Page 2

5 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Auditors Clement Keys LLP Chartered Accountants Statutory Auditors No. 8 Calthorpe Road Edgbaston Birmingham B15 1QT Solicitors Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bankers Lloyds TSB Bank plc 1 Vaughan Parade Torquay Devon TQ2 5EE Barclays Bank PLC 43 High Street Sutton Surrey SM1 1DR Page 3

6 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Board of Directors Members of the Board of Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out below: Karen Boyce-Dawson Simon Conway Peter Dunning Christine Mackness Alan Partridge Peter Sanders Page 4

7 This section explains that directors are responsible for putting together accounts which must show a true and fair view. This is the law. FORWARD HOUSING SW REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Responsibilities of the Board of Trustee Directors The directors (who are also the trustees of Forward Housing SW for the purposes of charity law) are responsible for preparing the Report of the Directors and Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Board of Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the charitable company s incoming resources and application of resources, including the income and expenditure, for the financial year. In preparing these financial statements, the Board of Directors are required to: Page 5

8 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue in business. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act The Board is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. Page 6

9 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 What is important for Thera 1. Forward Housing is part of the Thera Group of companies. 2. Thera has always said that the people it supports must be involved in how the organization does its job. Thera s Vision sets out clearly Thera s philosophy of control and involvement by the people it supports: Thera will show that people with a learning disability can be leaders in society. Thera will be controlled by people with a learning disability. People supported by Thera can say how their Thera Company is directed and managed. People with a learning disability will design the support they want from Thera. Thera will respect the rights and wishes of people at work, at home and in the community. People with a learning disability will check the quality of support from their Thera company. Thera Group will be led by a Charity. Page 7

10 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Helping more people 3. Since the last report, Forward Housing SW has continued to work in partnership with Progress Care Housing Association (PCHA) to improve its properties. 4. In addition, the Trustees have taken some important decisions which will affect the future activities of Forward Housing SW: To expand the activities beyond the South West of England by considering opportunities to provide accommodation in all parts of the United Kingdom; To register Forward Housing SW with the Scottish Charity Regulator; To appoint a Managing Director to help implement the new strategy. 5. Forward Housing SW is part of the Thera Group of companies and this strategy will support the organisation in furthering its plans. 6. As part of the Thera Group, Forward Housing SW is keen to apply Thera's vision to the work that it does. Page 8

11 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Forward Housing SW is a charity 7. Forward Housing SW was incorporated on 9 August 1999 as a not-forprofit company limited by guarantee and having no share capital. Forward Housing SW was registered as a charity on 29 November The company was established under a Memorandum of Association, which established its objects and powers, and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding 100. Forward Housing SW provides accommodation for people with a learning disability 9. Forward Housing SW owns 11 properties in Devon and Torbay. It leases a further property from Thera Trust. The properties are leased to PCHA who have granted assured tenancies to the people living in the properties 10. At the end of the year, there were 42 ( : 53) people living in Forward Housing SW s properties. Page 9

12 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March In addition to the needs of people supported and commercial considerations, trustees have had regard to the Charity Commission s guidance on public benefit and believe that the objectives and activities of Forward Housing SW fulfill the Commission s requirements. The content of this report sets out how the charitable company has achieved its objectives during the year. What happened in The principal objective during the year ended 31 March 2013 was to continue the programme of refurbishing its properties with a view to improving the quality of the accommodation. 13. This programme is in line with the grant arrangements agreed with the NHS and is being carried out in partnership with PCHA. The programme includes the provision of new accommodation to be bought by PCHA which will be occupied by some of the people living in the properties owned by Forward Housing SW. 14. There has continued to be extensive consultation with the tenants and their families with a view to ensuring that the changes to the properties will, so far as possible, reflect their wishes. The consultation also gives the tenants the opportunity to say where they would like to live and who they would like to live with. Page 10

13 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March There has continued to be extensive consultation with the tenants and their families with a view to ensuring that the changes to the properties will, so far as possible, reflect their wishes. The consultation also gives the tenants the opportunity to say where they would like to live and who they would like to live with. 16. During the year, 7 people have moved out of properties owned by Forward Housing SW into properties bought by PCHA which have been adapted to meet their needs. Sadly, also during this year, 4 tenants passed away. 17. The refurbishment of 3 properties owned by Forward Housing SW was completed during the year. 18. Two of the properties owned by Forward Housing SW are providing temporary accommodation for tenants as each of the occupied properties has improvement work carried out. 19. In October 2012, the Trustees reviewed the strategy of Forward Housing SW and decided to broaden its activities so that the charity could consider opportunities to provide accommodation for people with a learning disability in all parts of the United Kingdom primarily to help people supported by other Thera companies.. Page 11

14 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March In March 2013, Forward Housing SW negotiated to purchase a property in Norfolk to be used by Thera East Anglia to provide short-term support for people with a learning disability. The purchase was completed in July Forward Housing SW s money 21. Forward Housing SW s accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with Forward Housing SW s Articles of Association, applicable company and charity law and the requirements of the Accounting and Reporting by Charities, Statement of Recommended Practice issued in March Total incoming resources in were 168k ( : 160k). 23. Forward Housing SW s reserves at the end of the year were 3.3m ( : 3.6m), including cash balances of 12k ( : 5k). Page 12

15 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Reserves policy 24. The directors have previously decided that they wish to increase Forward Housing SW s unrestricted reserves in order to sustain and develop the activities of the organisation in the future. 25. Consequent upon its future plans which are described above, the directors intend, during , to review this policy. 26. Restricted reserves are grants that have been received to acquire and improve the properties of Forward Housing SW. Managing Forward Housing SW s risks 27. The directors have assessed the major risks to which Forward Housing SW may be exposed and are satisfied that arrangements and systems are in place to minimise the incidence and impact of these risks. Forward Housing SW s Directors (Trustees) 28. Members of the Board of Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report, are shown in the company information at the start of this report and accounts. Page 13

16 REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Management of Forward Housing SW s activities 29. Thera Trust is responsible for providing management services to Forward Housing SW. During the year ended 31 March 2013, Thera Trust was responsible for providing management services to Forward Housing SW. After the end of the year, on 1 September 2013, Forward Housing SW appointed Gareth Jackson as Managing Director and he will now be managing the activities of Forward Housing SW. The Managing Director is not a member of the board and is not a trustee. Forward Housing SW makes sure that it has good Directors (Recruitment, Induction and Training of Trustees) 30. As Forward Housing SW is part of the Thera Group and in accordance with its articles, Thera Trust now appoints the majority of directors. 31. All directors in the Thera Group follow a formal induction process to ensure they know the organisation and its aims and are aware of their responsibilities. 32. All directors are subject to references and enhanced CRB check. There were other changes to Thera Group s governance; Relationships with other organisations. Page 14

17 This section explains that the directors have told the Auditors everything they should and that they have worked within the law. FORWARD HOUSING SW REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Provision of information to auditors In so far as the Board of Directors is aware: there is no relevant audit information of which the charitable company s auditors are unaware; and the Board of Directors has taken all the steps that it ought to have taken in order to make itself aware of any relevant audit information and to establish that the charitable company s auditors are aware of that information. Page 15

18 This section asks Charitable Company Members to agree that the Auditors, Clement Keys LLP, be chosen again as the company s Auditors FORWARD HOUSING SW REPORT OF THE DIRECTORS AND TRUSTEES (continued) year ended 31 March 2013 Following the cessation of the audit registration for the partnership known as Clement Keys, Clement Keys LLP was appointed as successor auditor with effect from 1 January Clement Keys LLP will be proposed for reappointment in accordance with section 485 of the Companies Act This report was approved by the board on 24 December 2013 and signed on its behalf. Simon Conway Director Page 16

19 This section explains that the Auditors have audited (checked) the accounts and that they are reporting to charitable company members. FORWARD HOUSING SW INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW We have audited the charitable company s financial statements of Forward Housing SW for the year ended 31 March 2013 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act Our audit work has been undertaken so that we might state to the charitable company s members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company s members as a body, for our audit work, for this report, or for the opinions we have formed. Page 17

20 Director s responsibilities are explained on page 5. This page explains that it is the Auditors responsibility to audit (check) the accounts as the law says they should. FORWARD HOUSING SW INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW Respective responsibilities of directors and auditors As explained more fully in the Statement of Directors Responsibilities the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that the financial statements give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Page 18

21 This page explains how the Auditors check the accounts. FORWARD HOUSING SW INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatement or inconsistencies we consider the implications for our report. Page 19

22 This page explains that the Auditors are reporting that the accounts give a true and fair view of the charitable company and that they are put together as the law says they should be put together. FORWARD HOUSING SW INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW Opinion on the financial statements In our opinion the financial statements: give a true and fair view of the state of the charitable company s affairs as at 31 March 2013 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act Opinion on other matter prescribed by Companies Act 2006 In our opinion the information given in the Report of the Directors and Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements. Page 20

23 This section explains that the Auditors must tell us if they are unhappy with how the directors managed the charitable company. The Audit report says that there is nothing bad the Auditors wish to report to charitable company members. FORWARD HOUSING SW INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Page 21

24 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF FORWARD HOUSING SW Joseph Bates FCA DChA (Senior Statutory Auditor) for and on behalf or CLEMENT KEYS LLP Chartered Accountants Statutory Auditors No. 8 Calthorpe Road Edgbaston Birmingham B15 1TS Date: 24 December 2013 You will see that this report and accounts also includes accessible information so that the directors of Forward Housing SW are ensuring that all charitable company members, including those with a learning disability, are able to fulfil their duties in law including to receive the accounts and to appoint the directors and Auditors. The law does not say we must provide this information, but Clement Keys LLP says it is in line with the statutory report and accounts. Page 22

25 SUMMARY OF MONEY For the year ended 31 March 2013 What we have earned and what we have spent Money in 167,692 What we spent on staff (14,032) Other money spent (74,877) Revaluation of houses (383,564) Money spent greater than money in (304,781) What Forward Housing SW has at 31 March 2013 Houses 3,742,000 How much cash we have in the bank 12,362 What we are owed by others 100,194 What we owe to Thera Trust companies (367,925) What we owe to others (229,210) Net amount the company has at 31 March ,257,421 Page 23

26 STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure Account) for the year ended 31 March 2013 Unrestricted Restricted Funds Funds Total Total Note Incoming resources Incoming resources from charitable activities Accommodation and related income 2 167, , ,350 Total incoming resources 167, , ,350 Resources expended Costs of generating funds Charitable activities Costs in support of tenants 4 85,140-85,140 93,062 Governance costs Governance costs Interest Payable Interest payable 2,822-2,822 - Total resources expended 88,909-88,909 93,309 Net movement in funds (being net income for the year) Unrecognised losses on investment properties Net movement in funds before transfers Reconciliation of funds Fund balances brought forward 78,783-78,783 67,041 6 (383,564) - (383,564) - (304,781) - (304,781) 67, ,742 3,414,460 3,562,202 3,495,161 Fund balances carried forward (157,039) 3,414,460 3,257,421 3,562,202 Incoming resources and resources expended derive from continuing operations. The statement of financial activity includes all gains and losses recognised in the year. The notes on pages 26 to 32 form part of these financial statements. Page 24

27 COMPANY REGISTRATION NUMBER BALANCE SHEET 31 March 2013 Notes Fixed assets Investment properties 6 3,742,000 3,509,539 Current assets Debtors 7 100, ,722 Cash at bank and in hand 12,362 5, , ,814 Creditors: amounts falling due within one year 8 (229,210) (127,151) Net current (liabilities) / assets (116,654) 52,663 Total assets less current liabilities 3,625,346 3,562,202 Creditors: amounts falling due after more than one year 9 (367,925) - Net assets 3,257,421 3,562,202 Represented by: Unrestricted funds 10 (157,039) 147,742 Restricted funds 10 3,414,460 3,414,460 Total funds 3,257,421 3,562,202 The notes on pages 26 to 32 form part of these financial statements. The financial statements on pages 24 to 32 were approved by the Board of Trustees on 24 December Simon Conway Trustee Karen Boyce-Dawson Trustee Page 25

28 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March ACCOUNTING POLICIES 1.1 Basis of accounting The financial statements have been prepared under the historical cost convention with the exception of investment properties which are held at valuation. The financial statements have been prepared in accordance with the provisions of the Companies Act 2006, applicable accounting standards and in compliance with the revised Statement of Recommended Practice - Accounting and Reporting by Charities issued in March 2005 ( SORP ). 1.2 Incoming resources Charitable activities Incoming resources from charitable activities represent fees for the accommodation of tenants. These fees comprise charges payable by Progress Care Housing Association. This organisation then sub-lets the properties to the tenants. Any rentals receivable under operating leases are credited to the statement of financial activities on a straight line basis over the term of the lease. Grants Grants receivable are accounted for in the period in which the grant is received or the conditions of the grant are met, if later, unless there is an agreement to make such grants and they are received prior to the date the financial statements are issued. In this case the appropriate debtor is included. 1.3 Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Charitable expenditure comprises those costs incurred by the charity in the delivery of activities and services for its beneficiaries. Governance costs include those costs associated with meeting constitutional and statutory requirements and include audit fees and costs linked to the strategic management of the charity. All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Operating leases Rentals under operating leases are charged to the statement of financial activities on straight line basis over the term of the lease. Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Taxation The charity is exempt from income tax and capital gains tax under Section 505 ICTA1988. Page 26

29 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March ACCOUNTING POLICIES (continued) 1.5 Fund accounting These are funds which can be used in accordance with the charitable objects at the discretion of the trustees. Unrestricted funds and designated funds Unrestricted funds represent funds that are expendable at the discretion of the trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. Restricted funds Restricted funds represent grants received which are allocated by the donor for specific purposes. 1.6 Tangible fixed assets Tangible fixed assets and depreciation The following classifications of expenditure are treated as purchases of tangible assets: I. Freehold land and buildings II. Improvements to freehold buildings other than those which are incidental to the repairs or maintenance of the buildings III. Individual items of furnishings and equipment costing in excess of 150 Tangible fixed assets are stated at cost less depreciation. The cost less the estimated residual value of tangible fixed assets is depreciated over their estimated useful lives as follows: Freehold land is not depreciated Freehold buildings Furniture and fittings 2% straight line (see note below) % straight line Improvements to freehold buildings are depreciated over the remaining life of the property. 1.7 Investment properties Investment properties are included at market value. Any gain or loss on sale or revaluation is taken to the Statement of Financial Activities. Realised gains and losses are calculated as the difference between sales proceeds and original cost. Unrealised gains and losses of the year are calculated as the difference between the market value at the year end and the opening market value or purchase date if later. No depreciation is charged on investment properties in accordance with the Charities SORP. Page 27

30 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March INCOMING RESOURCES Incoming resources from charitable activities Unrestricted Restricted Rent for accommodation of tenants 163, , ,350 Recharges of property costs 4,000-4, , , ,350 Included in incoming resources from charitable activities are aggregate rentals receivable in relation to operating leases totalling 117,408 (2012: 114,066) 3 CHARITABLE EXPENDITURE Charitable expenditure is stated after charging: Operating leases land and buildings 5,150 5,150 Auditors remuneration is reflected in total for the group in the parent charitable company. 4 TOTAL RESOURCES EXPENDED The charitable company undertakes direct charitable activities only. Direct costs of Unrestricted Restricted supporting tenants Property costs 61,309-61,309 79,154 Support costs 23,831-23,831 13,908 85,140-85,140 93,062 Unrestricted Restricted Governance Legal and professional Other Page 28

31 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March EMPLOYEE NUMBERS AND COSTS The average monthly number of employees No No during the year was: Direct and relief support work - - Management and administration Employment costs Wages and salaries 12,882 8,362 Social security costs 1, ,032 9,108 No employee received total salary and benefits of more than 60,000 in either year. Directors and Trustees The Trustees have not received any remuneration from the charity. Three trustees (2012: four trustees) received a total of 3,310 (2012: 689) in relation to the reimbursement of travel and subsistence expenses. 6 INVESTMENT PROPERTIES At 1 April ,509,539 3,414,460 Additions to investment properties at cost 616,025 95,079 Revaluation during the year (383,564) - Market value as at 31 March ,742,000 3,509,539 The Charity s investment properties were last formerly valued by Paul M Scammell (MRICS) of the DVS. The valuation was carried out as at 31 January 2011 however, the valuation was deemed valid as at 31 March The basis of the valuation was market value of the freehold interest with vacant possession. The total valuation of all 11 properties within the portfolio was 3,380,000. As at 31 March 2013, the trustees have considered the value attributed to the investment properties and are of the opinion that the valuation should be reduced to 3,742,000. The basis of the valuation is on discounted cash flows. The trustees have also considered the need for an impairment review and have concluded that no signs of impairment have occurred. All of the investment properties are located within the United Kingdom. All of the above properties are held for use in operating leases. Page 29

32 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March DEBTORS Rental debtors 93,235 95,530 Amounts owed by group undertakings - 75,845 Other debtors 6,959 3, , ,722 8 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors 58,774 59,540 Accruals and deferred income 170,436 67, , ,151 9 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Amounts owed to group undertakings 367, , ANALYSIS OF CHARITABLE FUNDS Balance at Outgoing Balance at 1 April Incoming resources 31 March 2012 resources and transfers 2013 Unrestricted fund movements General fund 147, ,692 (472,473) (157,039) Restricted fund movements Property improvement fund 297, ,493 Property acquisition fund 3,116, ,116,967 Total restricted funds 3,414, ,414,460 Total of all charitable funds 3,562, ,692 (472,473) 3,257,421 Page 30

33 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March ANALYSIS OF CHARITABLE FUNDS (continued) Set out below is the description, nature and purpose of each of the above named funds: Unrestricted funds General funds Represents the amounts which are free of any restrictions or limitations. Restricted funds Property improvement fund These derive from grants received towards the cost of specific property improvements. These are detailed further in note 11 below. Separate improvements carried out at each property have been combined to show the total for each property. The restrictions are applicable until such time as the property may be disposed of. Property acquisition fund These derive from the grant made by the former South and West Devon Health Authority to meet the total cost of eleven properties acquired from the Secretary of State for Health. In the past, the balance in the fund as at the balance sheet dates equalled the value of the properties included within Investment Properties less any improvements carried out as per Note 11 below. However, any current additions are unrestricted and do not increase the value of this fund. 11 ANALYSIS OF PROPERTY IMPROVEMENT FUNDS (CAPITAL) The funds below represent work carried out at the properties of a capital nature where the cost of the work is included within the value of the properties included within Investment Properties. Leigh Lindisfarne Eastcombe Ashlea House Hollies Brioc Total Balance at 1 April 2012 and 31 March ,933 84, ,197 22,634 8,626 16, , ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted funds Funds Total Tangible fixed assets 327,540 3,414,460 3,742,000 Net current liabilities (116,654) - (116,654) Creditors due after more than one year (367,925) - (367,925) At 31 March 2013 (157,039) 3,414,460 3,257,421 Page 31

34 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March COMMITMENTS UNDER OPERATING LEASES At 31 March 2012 the charitable company had annual commitments under non-cancellable operating lease as follows: Land and buildings Expiry date Between two and five years 5,100 5, CAPITAL COMMITMENT At the balance sheet date, Forward Housing SW had contracted for works to be carried out at one of the properties amounting to 71,236 (2012: 99,614). 15 CONTINGENT LIABILITY The grant received from Torbay Care Trust is repayable if Forward Housing SW breaches terms attaching to the grant, including: (a) Ceasing to use the property for special needs housing; (b) Disposing of the property. In these circumstances, the amount repayable is the open market value of the property as defined in the Grant Agreement, but excluding the value of any improvements which Forward Housing SW has paid for using its own resources. 16 LEGAL STATUS OF THE CHARITY The charitable company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding 100 towards the assets of the charitable company in the event of liquidation. 17 RELATED PARTY TRANSACTIONS In line with the exemption conferred by FRS 8, Forward Housing SW has chosen not to disclose related party transactions between group companies on the grounds that Thera Trust has full control of the board and that Forward Housing SW is included in Thera Trust s consolidated financial statements. 18 ULTIMATE HOLDING COMPANY Forward Housing SW s ultimate parent company is Thera Trust, a charitable company limited by guarantee and registered in England and Wales. Thera Trust prepares consolidated financial statements in which Forward Housing SW is included. Copies of these accounts can be obtained from The West House, Alpha Court, Swingbridge Road, Grantham, Lincolnshire NG31 7XT. Page 32