ii» ' AGED MERCHANT SEAMEN'S HOMES CHARITY COMMISSION NUMBER - 230292 FINANCIAL STATEMENTS 31 DECEMBER 2012! ii
Financial Statements For the Year Ended 31 December 2012 CONTENTS Pages Association Details 3 Report of the Trustees 4-5 Report of the Auditors 6-7 Income and Expenditure Account 8 Balance Sheet 9 Accounting Policies 10-11 Notes to the Financial Statements 12-17 2
ASSOCIATION DETAILS REGISTERED OFFICE 27 Trafalgar Square Sunderland SR1 2BW AUDITOR Westwaters 34 Frederick Street Sunderland SR1 1LP SOLICITORS McKenzie Bell 19 John Street Sunderland SR1 1JG MANAGING AGENT Tyne Housing Association Ltd St Silas Church Building Clifford Street Newcastle upon Tyne NE61PG BANKERS Barclays Bank Pic 53 Fawcett Street Sunderland SR11RS REGISTRATION Charity Commission (230292) 3
REPORT OF THE TRUSTEES The Trustees present their annual report and the audited financial statements for the year ended 31 December 2012. PRINCIPAL ACTIVITY The principal activity of the Association continues to be the provision of affordable housing for people in necessitous circumstances. TRUSTEES The Trustees during the year ended 31 December 2012 were: - Capt. P Mitchell (Chairman) Capt I Grant Cllr T Martin Cllr K O'Connor Capt S Healy David Kay Capt P Johnson Capt. P Wynn (Secretary) Capt. J Dibble Capt. J W Murray Capt. K Allison Mrs J Smart Mr J Cooper Mr J L Kay The following ceased to be Trustees during the year ended 31 December 2012:- Capt L J P Coutts Capt J H Wallace Mr D W Gibbins Mr H Milne REGISTRATION OF THE ASSOCIATION The Aged Merchant Seamen's Homes are registered as a charity with the Charity Commission and with the Tenant Services Authority as a Registered Social Landlord. ADMINISTRATION AND MANAGEMENT The administration and management of The Aged Merchant Seamen's Homes is partially exercised by Tyne Housing Association Ltd whose registered office is St Silas Church Building, Clifford Street, Byker, Newcastle upon Tyne. FINANCIAL STATEMENTS AND STATE OF THE TRUST'S AFFAIRS The results for the year are shown in the Income and Expenditure Account on page 8. Movements in the Fixed Assets ofthe Association are set out in note 8 on page 14. REVIEW OF THE YEAR In an effort to keep the Weekly Maintenance Charge at an affordable level but also to cover the costs of overheads, an increase in the Weekly Maintenance Charge of 9.37 per week for 28 properties and 9.56 per week for 3 properties was levied from April 2012.
REPORT OF THE TRUSTEES GOVERNANCE The Trustees have considered the Code of Governance produced by the National Housing Federation. The Trustees strive to comply with the spirit of the recommendations made in the Code. STATEMENT OF TRUSTEES RESPONSIBILITIES The Tenant Services Authority, Charity Commission Accounting Requirements and registered social housing legislation require the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Association and of the income and expenditure of the Association for that period. In preparing those financial statements, the Trustees are required to: - select appropriate accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Accounting Requirements for Registered Social Landlords General Determination 2006 as amended and the Housing Act 1996. The Trustees recognise their responsibility for instituting adequate systems of internal control, safeguarding the assets and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Circular R2-18/96, relating to Internal Financial Control and Financial Reporting, issued by the Tenant Services Authority, has been considered by the Trustees but, in view of the size of the Association, the Trustees are not required to make a full statement of the procedures, which are in place. The financial statements on pages 8 to 17 were approved by the Trustees on.^.^^tf^.^/j?. and signed on its behalf by: - Capt. P Mitchell (Chairman) 5
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF AGED MERCHANT SEAMEN'S HOMES We have audited the financial statements of Aged Merchant Seamen's Homes for the year ended 31 December 2012, set out on pages 8 to 17. These financial statements have been prepared under the historical cost convention and on the basis of the accounting policies set out on pages 10 and 11. This report is made solely to the Trustees, as a body, in accordance with the Industrial & Provident Societies Acts 1965 to 2002 and Schedule 1 to the Housing Act 1996. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an auditor's 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 Trustees as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF THE TRUSTEES AND AUDITORS The Trustees are responsible for the preparation of financial statements in accordance with applicable law and United Kingdom Accounting Standards, as set out on page 5. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Industrial & Provident Societies Acts 1965 to 2002, the Friendly & Industrial & Provident Societies Act 1968, the Accounting Requirements for Registered Social Landlords General Determination 2006 as amended and the Housing Act 1996. We also report to you if, in our opinion, a satisfactory system of internal control over transactions has not been maintained, if the Trustees' Report is not consistent with the financial statements, if the Trustees have not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding Trustees' remuneration and transactions with the Trust is not disclosed. We read other information contained in the Trustees' Report and consider whether it is consistent with the financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF AGED MERCHANT SEAMEN'S HOMES (Continued) BASIS OF AUDIT OPINION We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Aged Merchant Seamen's Homes circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. OPINION In our opinion the financial statements give a true and fair view of the state of the Aged Merchant Seamen's Homes affairs at 31 December 2012, and of its income and expenditure for the year then ended and have been properly prepared in accordance with the Industrial and Provident Societies Acts 1965 to 2002, Accounting Requirements for Registered Social Landlords General Determination 2006 and Schedule 1 to the Housing Act 1996. Registered Auditor 34 Frederick Street SUNDERLAND SR11LP 7
INCOME AND EXPENDITURE ACCOUNT Notes 2012 2011 Turnover (2) 81,627 80,847 Operating Costs (2) (113,876) (94,007) Other Operating Income (2) 100 - Operating (Deficit) (32,149) (13,160) Interest Receivable (5) 10.318 9.615 (Deficit) For the Year (21,831) (3,545) Transfer from Designated Reserves (13) 3.539 (1,984) (18,292) (5,529) Revenue Reserve Brought Forward 370.468 375.997 Revenue Reserve Carried Forward (13) 352.176 370.468 There were no recognised gains or losses other than those included in the income and expenditure account. Historical cost surpluses and deficits are identical to those shown in the financial statements. The results for the period relate wholly to continuing operations. The notes on pages 10 to 17 form an integral part of these financial statements. 8
BALANCE SHEET AS AT 31 DECEMBER 2012 Notes 2012 2011 Fixed Assets Housing Properties (depreciated cost) (8) 962,838 967,077 Less: Social Housing Grant (8) (791.955) 170,883 (791.955) 175,122 Equipment (8) Investments (at Valuation) (9) 47.428 43.848 218,311 218,970 Current Assets Debtors (10) 28,269 17,465 Investments (at Valuation) (11) 1,222,802 1,094,894 Cash at Bank & In Hand 48.575 79.633 1,299,646 1,191,992 Creditors: Amounts Falling due within one year (12) (18.310) (9.220) Net Current Assets 1.281.336 1.182.772 Total Assets less Current Liabilities 1.499.647 1.401.742 Capital & Reserves Capital Fund 108,297 108,297 Income & Expenditure (13) 352,176 370,468 Designated Reserves (13) 348,365 351,904 Revaluation Reserve (14) 690.809 571.073 1.499.647 1.401.742 The financial statements for the ywr ended 31 December 2012, set out on pages 8 to 17, were approved by the Trustees on^^zr.^qft.. and signed by: - apt. P Mitchell (Chairman) Capt. P Wynn (Secretary) Capt. I Grant (Trustee) 9
NOTES TO THE FINANCIAL STATEMENTS 1. Principal Accounting Policies The Financial Statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom. A summary of the more important accounting policies is set out below: - Basis of Accounting The Financial Statements are prepared on the historical cost basis. Turnover Turnover represents income receivable from residents plus grants from the Tenant Services Authority and donations. Housing Properties & Depreciation Housing properties are stated at historical cost, this being their purchase price together with incidental costs of acquisition, administration costs and interest payable up to the date of completion. The Trustees have adopted FRS 15 depreciation of Tangible Fixed Assets. Depreciation is charged on housing properties net of Social Housing Grant and Land on a straight-line basis over 50 years. Social Housing Grant (formerly Housing Association Grant) Where developments have been financed wholly or partly by Social Housing Grant, the cost of those developments has been reduced by the amount of grant received, in accordance with the SORP. Social Housing Grant in respect of housing properties in the course of construction is shown as a current liability. Social Housing Grant is repayable under some circumstances, primarily following the sale of property, but the amount due is restricted to the net proceeds of sale where appropriate. Where Social Housing Grant becomes repayable, it is included as a current liability until it is repaid. 10
NOTES TO THE FINANCIAL STATEMENTS Capitalisation of Interest Interest incurred on financing a development is capitalised up to the date of practical completion of the scheme. Designated Reserves The Trust has the following designated reserves: - i. Extraordinary Repair Fund This designated reserve has been established to provide for future major repair expenditure to the properties at Trafalgar Square, Sunderland. Annual contributions to this fund are made in accordance with the minimum levels recommended by the National Association of Almshouses. ii. Refurbishment Fund This designated reserve has been established from grants and donations received as a contribution towards the costs incurred in refurbishing the properties at Trafalgar Square, Sunderland during 1992/93. iii. Cyclical Maintenance Fund This designated reserve has been established to provide for future cyclical expenditure to the properties at Trafalgar Square, Sunderland. Annual contributions to this fund are made in accordance with the minimum levels recommended by the National Association of Almshouses. Revaluation Reserve In accordance with the SORP Investments are shown at Valuation. The investment revaluation reserve is set up to reflect the difference between cost and valuation ofthe M&G Securities - National Association of Almshouses Common Investment Fund (N.A.A.C.I.F.) Income and Accumulation Shares. n
NOTES TO THE FINANCIAL STATEMENTS 2. Turnover. Operating Costs & Operating Deficit For the Year 2012 Turnover Operating Operating Costs Deficit Turnover 2011 Operating Costs Operating Deficit Income & Expenditure from Social Housing Lettinqs General Needs Housing Accommodation (32 units) 81.627 (113.876) (32.249) 80.847 (94.007) (13.160) Income from Social Housing Lettings Weekly Maintenance Charge Less: W.M.C. losses from Voids Revenue Grants from the Tenant Services Authority Expenditure on Social Housing Lettings & Activities Services Management Routine Maintenance Cyclical Maintenance Major Repairs Depreciation Other Costs Total Expenditure from Social Housing Lettings Operating (Deficit) / Surplus from Social Housing Lettings 97,319 85,059 (15,692) (4.212) 81,627 80,847 81.627 80.847 15,447 13,907 28,692 17,374 24,696 24,780 5,138 7,331 29,601 21,885 4,239 4,239 6.063 4.491 113.876 94.007 (32.249) (13.160) Other Income Donations 100 12
NOTES TO THE FINANCIAL STATEMENTS 3. Directors Emoluments The Directors are defined as the Trustees. emoluments during 2012. None of the Trustees received any The Trust had no paid executive officers during 2012 or 2011. 2012 2011 Total expenses reimbursed to the Trustees not chargeable for UK income tax 5.696 5.116 4. Employee Information The Trust had no paid employees during 2012 or 2011. Interest Receivable 2012 2011 Interest Receivable from Unlisted Investments Less: Interest transferred to Distressed Mariners Fund 11,867 (1,549) 10.318 11,144 (1.529) 9.615 Deficit on Ordinary Activities Deficit for the year on ordinary activities is stated after charging:- Depreciation Auditors Remuneration 2012 4,239 1.194 2011 4,239 1.152 7. Taxation No liability to taxation arises from the surplus on the Income and Expenditure Account as a result of the charitable status of the Trust. 13
NOTES TO THE FINANCIAL STATEMENTS 8. Tangible Fixed Assets Housing Properties Gross Cost As at 1 January 2012 Additions As at 31 December 2012 Depreciation As at 1 January 2012 Charge As at 31 December 2012 Depreciated Cost Social Housing Grant As at 1 January and 31 December 2012 Net Book Value at 31 December 2012 Net Book Value at 1 January 2012 Equipment Gross Cost As at 1 January 2012 Additions As at 31 December 2012 Depreciation As at 1 January 2012 Charge As at 31 December 2012 Net Book Value at 31 December 2012 Net Book Value at 1 January 2012 2012 1,017,947 1,017.947 50,870 4.239 55.109 962.838 791.955 170.883 175.122 13,802 13.802 13,802 13.802 2011 1,017,947 1,017.947 46,631 4.239 50.870 967.077 791.955 175.122 179.361 13,802 13.802 13,802 13.802 14
NOTES TO THE FINANCIAL STATEMENTS 9. Fixed Asset Investment 2012 2011 Unlisted Investment at Valuation 71,589 NAACIF Income Shares (Cost 25,423) 47.428 43.848 10. Debtors 2012 2011 Amounts falling due within one year: - W.M.C. Arrears 2,926 7,814 Less Bad Debt Provision : : 2,926 7,814 Distressed Mariners Fund 156 144 Prepayments and Accrued Income 25.187 9,507 28.269 17.465 11. Current Asset Investments 2012 2011 Unlisted Investments at Valuation National Savings Bank 114,441 113,785 225,429 NAACIF Income Shares 149,347 138,075 (Cost 96,376) 16,728 NAACIF Accumulation Shares 867,723 762,839 (Cost 251,890) Barclays Bank Fixed Term Deposit Barclays Bank Business Reserve Account 91.291 80.195 1.222.802 1.094.894 12. Creditors: Amounts Falling Due Within One Year 2012 2011 Accruals & Deferred Income 3,818 3,160 Distressed Mariners Fund 4,454 3,199 HGL Management Fee & Expenditure 5,047 2,750 W.M.C. in Advance 4.991 111 18.310 9.220 15
NOTES TO THE FINANCIAL STATEMENTS Reserves Income & 2012 Income & 2011 Expenditure Designated Expenditure Designated Account Reserves Total Account Reserves Total At beginning of year 370,468 351,904 722,372 375,997 349,920 725,917 Surplus - - - - - - (Deficit) (21,831) - (21,831) (3,545) - (3,545) Transfer to reserves (31,200) 31,200 - (31,200) 31,200 - Transfer from reserves 34.739 (34.739) - 29.216 (29.216) - At 31 December 352.176 348.365 700.541 370.468 351.904 722.372 The designated reserves include 3,973 (2011: 21,734) specifically designated to fund future major repairs expenditure, 201,908 (2011: 187,686) specifically designated to fund future cyclical works and 142,484 (2011: 142,484) in respect of grants/donations received towards the costs of the refurbishment of the properties at Trafalgar Square, Sunderland carried out during 1992/93. 14. Investment Revaluation Reserve 2012 2011 At beginning of year 571,073 562,293 Increase / (Decrease) in Value 119.736 8.780 At 31 December 690.809 571.073 In accordance with the SORP Investments are shown at Valuation. The investment revaluation reserve is set up to reflect the difference between cost and valuation of M & G Securities - National Association of Almshouses Common Investment Fund (NAACIF) Income and Accumulation Shares. 16
NOTES TO THE FINANCIAL STATEMENTS 15. Capital Commitments There are no Capital Commitments at 31 December 2012. 16. Contingent Liabilities There are no Contingent Liabilities at 31 December 2012. 17. Legislative Provisions The Association is registered with the Charity Commission (registration number 230292). 17