Charity Registration No. 1162066
Company Registration No. 08867218 (England and Wales)
BOURNEMOUTH WAR MEMORIAL HOMES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10 Bridge Street
Christchurch
Dorset
BH23 1EF
BOURNEMOUTH WAR MEMORIAL HOMES
CONTENTS
Page
Company information
1
Trustees' report
2 - 5
Statement of Trustees' responsibilities
6
Independent auditor's report
7 - 10
Statement of financial activities
11
Balance sheet
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
BOURNEMOUTH WAR MEMORIAL HOMES
COMPANY INFORMATION
- 1 -
Trustees
Air Commodore R Cobelli OBE RAF(Ret'd)
Mr. G Long
Mrs. S Round
Mr. M Powell
Mr. P Matthews
Ms. N J Burman
(Appointed 20 June 2024)
Charity number
1162066
Company number
08867218
Registered office
12a Woodsford Green
Castle Lane West
Bournemouth
Dorset
BH8 9TP
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
BOURNEMOUTH WAR MEMORIAL HOMES
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The Trustees present their report and accounts for the year ended 30 September 2024.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Objectives and activities

The Bournemouth War Memorial Homes charity was founded soon after the 1939 - 1945 war, through the creation of a Trust Deed, which governed the running of the homes. On 29 January 2014 a new limited company (Company No 08867218) was incorporated to take over the old unincorporated charitable trust. The new company was formally registered with the Charity Commission on 9th June 2015 (Registered No 1162066) and all of the assets were transferred across on 1st October 2015.

 

The Homes comprise fifty-three individual properties in Castle Lane West and Jewell Road, one home in Ibbertson Road and five purpose-built properties in Poppy Lane - a total of 59 properties, all in Bournemouth. These are provided at a subsidised differential rent, dependent on the property type, to former service personnel of the Armed Forces of the Crown and former members of the Merchant Navy and their dependents who are in need or vulnerable by reason of their physical or mental health, social or economic circumstances with preference given to those who reside or have resided in the Borough of Bournemouth.

 

The Trustees' objective is to run the Homes in an efficient way and to maintain the high standards of accommodation for the benefit of its residents. At the same time, the Trustees are very conscious of the estate's management and maintenance expenditure and seek to keep these costs well under control.

 

The estate manager (Tracy Poole) is responsible to the Trustees for the management of the Homes. Tracy and her team oversee the estate on a day-to-day basis and have regular meetings with the Trustees and residents to deal with any matters arising. Services provided to the residents include the:

- provision of a call alarm system

- inspection and maintenance of central heating

- cleaning of communal areas

- maintenance of communal grounds

- maintenance of all properties

 

In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and confirm they have complied with the duty in Section 4 of the Charity Act 2006.

 

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

 

Achievements and performance

Rents are reviewed annually & are linked to the estimated commercial rents for similar properties in the vicinity before applying a discount. All rents are discounted by at least 30% with a higher level of discount for elderly residents. In addition, the Trustees make grants in cases of hardship.

BOURNEMOUTH WAR MEMORIAL HOMES
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

In this financial year, a significant number of our older properties have been refurbished, as they became vacant. These required a complete updating of the electrical and heating/hot water systems, along with replacement kitchens & bathrooms, redecoration, and replacement of carpets.

 

General improvements to the Homes have continued with kitchens, bathrooms and old and inefficient boilers being replaced, as necessary. When a property becomes vacant, it is refurbished and redecorated prior to the arrival of the new tenant.

The Trustees are looking for other opportunities to expand the number of properties available to help alleviate our waiting list.

 

Plans for the future

As mentioned last year, planning permission has been granted for the redevelopment of redundant garages into purpose-built accommodation. Our architects and project managers have prepared detailed costings and specifications, and the Trustees expect to appoint builders shortly. The building work will commence later this year. This is a substantial project, and we are delighted to say that our application to The Armed Forces Covenant Fund Trust, to assist with the funding, was approved and they have agreed to contribute £500,000 to this project. We are extremely grateful for their help with this project. More on this can be found on https://bwmh.org.uk/news/.

 

We have also made applications to other organisations to assist with the funding of this project and are currently waiting to hear if our requests have been successful.

 

If the opportunity to acquire or construct new properties becomes available, then such projects will be robustly assessed and undertaken if they fit with the overall objectives of the charity.

 

Financial review

The trustees endeavour to retain sufficient reserves to meet future repair and other expenditure as required. Funds are also retained for the acquisition or construction of additional properties.

 

Surplus funds are invested or held on deposit. Brooks Macdonald manage our investments alongside CCLA Investment Management Limited. At the year end, the investments were valued at £794,300 (Note 15).

 

Following the appointment of Brooks Macdonald, the Trustees have agreed an Investment Policy.  Our investment objectives are to produce the best financial returns within an acceptable level of risk.  Income from our investments is not crucial to our activities and on this basis we are looking to maximise capital growth.  Investments that conflict with our objectives will be excluded.

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

At the end of the year unrestricted reserves amounted to £5,257,869 (2023 - £4,993,626) and restricted reserves amounted to £5,919 (2023 - £3,179). Included in the unrestricted reserves at the year end is a fair value reserve of £129,521 (2023 - £51,078). This fair value reserve represents the unrealised profits held in the investment portfolio.

 

The board is committed to maintaining a reserve holding of £300,000 at all times with any surplus being available for project and enhancement works. The current reserves are considered to be sufficient.

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

BOURNEMOUTH WAR MEMORIAL HOMES
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Structure, governance and management

The charity is a company limited by guarantee and registered with the Charity Commission in June 2015 and is therefore subject to the provisions of the Charities Acts.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

 

Air Commodore R Cobelli OBE RAF(Ret'd)
Mr. G Long
Mrs. S Round
Mr. M Powell
Mr. P Matthews
Ms. N J Burman
(Appointed 20 June 2024)

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The charity’s governing document is its Articles of Association, which was approved by Special Resolution dated 30 April 2015.

 

There must be at least three trustees. Trustees, who are also the directors for the purpose of company law, are appointed by ordinary resolution of the trustees and one-third of the trustees must retire at each annual general meeting. In selecting individuals for appointment as trustees, the trustees are mindful of the skills, knowledge and experience needed for the effective administration of the charity. When the Trustees consider there is a shortfall in the skills, knowledge and experience of existing trustees, they endeavour to recruit new trustees who can fill those gaps. Details of vacancies will be circulated to groups with connections to the Homes. Potential new trustees will be interviewed by the existing Trustees and Estate Manager. On acceptance of their appointment, new trustees will be required to undertake a period of induction with the existing trustees and estate manager, to fully understand the objectives and workings of the Charity.

 

Decisions are made by the trustees, and the day-to-day administration is delegated to the estate manager.

 

We are members of the Confederation of Service Charities (Cobseo). Cobseo represents the whole Serving and Veterans Community and adherence to their regulations is a condition of membership.

BOURNEMOUTH WAR MEMORIAL HOMES
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Auditor

In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor are aware of such information.

The Trustees' report was approved by the Board of Trustees.

Air Commodore R Cobelli OBE RAF(Ret'd)
Trustee
Dated: 27 March 2025
BOURNEMOUTH WAR MEMORIAL HOMES
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -

The Trustees, who are also the directors of Bournemouth War Memorial Homes for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the Trustees are required to:

 

- 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 UK 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 presume that the charity will continue in operation.

 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BOURNEMOUTH WAR MEMORIAL HOMES
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF BOURNEMOUTH WAR MEMORIAL HOMES
- 7 -

Opinion

We have audited the financial statements of Bournemouth War Memorial Homes (the ‘charity’) for the year ended 30 September 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 30 September 2024 and of its incoming resources and application of resources, 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 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

-

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

-

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

BOURNEMOUTH WAR MEMORIAL HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF BOURNEMOUTH WAR MEMORIAL HOMES
- 8 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BOURNEMOUTH WAR MEMORIAL HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF BOURNEMOUTH WAR MEMORIAL HOMES
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements

reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the legal and regulatory principles in the Charity SORP

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. These include Health and Safety, employment law, building insurance, public liability insurance and licencing. The Trustees use an external firm for Health and Safety and employment law, as they believe this will ensure up to date knowledge and systems are used.

- We considered and reviewed the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. These include the review of authorisation limits for bank transactions, authorisation for BACS payment and the review of the computerised booking system.

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. These include Health and Safety, Employment Law and Licencing. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

BOURNEMOUTH WAR MEMORIAL HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF BOURNEMOUTH WAR MEMORIAL HOMES
- 10 -

Use of our report

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 2006. 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's members as a body, for our audit work, for this report, or for the opinions we have formed.

Dean Pullen FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
Statutory Auditor
Office: Christchurch
7 April 2025
TC Group is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006
BOURNEMOUTH WAR MEMORIAL HOMES
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
2,419
35,000
37,419
2,035
21,000
23,035
Charitable activities
4
462,753
-
462,753
424,005
-
424,005
Investments
5
24,177
-
24,177
18,767
-
18,767
Other income
8
1,436
-
1,436
81
-
81
Total income
490,785
35,000
525,785
444,888
21,000
465,888
Expenditure on:
7
Charitable activities
337,245
-
337,245
331,046
17,821
348,867
Total expenditure
337,245
-
337,245
331,046
17,821
348,867
Net gains/(losses) on investments
12
78,443
-
78,443
32,089
-
32,089
Net income
231,983
35,000
266,983
145,931
3,179
149,110
Transfers between funds
32,260
(32,260)
-
-
-
-
Net movement in funds
10
264,243
2,740
266,983
145,931
3,179
149,110
Reconciliation of funds:
Fund balances at 1 October 2023
4,993,626
3,179
4,996,805
4,847,695
-
4,847,695
Fund balances at 30 September 2024
5,257,869
5,919
5,263,788
4,993,626
3,179
4,996,805

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

BOURNEMOUTH WAR MEMORIAL HOMES
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
16
4,229,263
4,197,920
Investments
15
794,300
708,285
5,023,563
4,906,205
Current assets
Debtors
17
32,298
22,355
Cash at bank and in hand
221,165
91,728
253,463
114,083
Creditors: amounts falling due within one year
18
(13,238)
(23,483)
Net current assets
240,225
90,600
Total assets less current liabilities
5,263,788
4,996,805
The funds of the charity
Restricted funds
19
5,919
3,179
Unrestricted funds
5,128,348
4,942,548
Unrestricted - fair value reserve
129,521
51,078
5,263,788
4,996,805

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2024, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The financial statements were approved by the Trustees on 27 March 2025
Air Commodore R Cobelli OBE RAF(Ret'd)
Trustee
Company registration number 08867218 (England and Wales)
BOURNEMOUTH WAR MEMORIAL HOMES
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
145,091
111,235
Investing activities
Purchase of tangible fixed assets
(32,260)
(20,550)
Purchase of investments
(7,571)
(81,298)
Investment income received
24,177
18,767
Net cash used in investing activities
(15,654)
(83,081)
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
129,437
28,154
Cash and cash equivalents at beginning of year
91,728
63,574
Cash and cash equivalents at end of year
221,165
91,728
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Charity information

Bournemouth War Memorial Homes is a private company limited by guarantee incorporated in England and Wales. The registered office is 12a Woodsford Green, Castle Lane West, Bournemouth, Dorset, BH8 9TP.

1.1
Accounting convention

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

The accounts have been prepared under the historical cost convention modified to include the revaluation of certain financial instruments.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Where the charity purchases an asset utilising restricted funds but the asset is held for a general purpose, a transfer will be used to release the cost from restricted funds to unrestricted funds upon purchase as the restriction is deemed to be fulfilled.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

The fair value reserve represents the total unrealised gains at the balance sheet date from the charities investment portfolio.

1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

 

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

 

Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.

 

Income from investments is included in the year in which it is receivable.

1.5
Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

 

Support costs are those costs incurred direct in support of expenditure on the objects of the charity and included project management.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are initially measured at cost, or valuation (deemed cost) in the case of tangible fixed assets gifted to the charity, and are subsequently stated net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful economic lives. In respect of the freehold property, it is the charity's practice to maintain the property in a continual state of sound repair and to make improvements from time to time. Accordingly, the trustees consider that the useful economic life of the freehold property is so long, and the residual value so high, that depreciation is insignificant to the financial statements.

Land and buildings
Not depreciated
Fixtures, fittings & equipment
20% Straight Line
Computers
20% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Fixed asset investments

Investments held within fixed assets represent the charity's portfolio of managed investment funds. They are stated at fair value within the financial statements, calculated with reference to the mid-market value of the investment at the balance sheet date. All gains and losses are taken to the Statement of Financial Activities.

1.8
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13

Limited by guarantee

 

The charity in limited by guarantee and therefore has no share capital.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The key assumptions and other sources of estimation uncertainty that have significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are as follows:

 

The annual depreciation charge is considered with reference to the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually.

 

Welfare grants are assessed on a case by case basis and authorised by Trustees, see note 4.

 

There were no other key sources of estimation uncertainty.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
3
Donations and legacies
Unrestricted
Restricted
Total
Total
funds
funds
2024
2024
2024
2023
£
£
£
£
Donations and gifts
2,419
35,000
37,419
23,035
4
Charitable activities - unrestricted
2024
2023
£
£
Rents due from tenants and garages
505,187
459,129
Grants awarded to tenants
(42,434)
(35,124)
462,753
424,005
Income of rents from tenants and garages as shown above is wholly attributable to unrestricted funds.

Rents are reviewed annually and are linked to the estimated commercial rents for similar properties in the vicinity before applying a discount. All rents are discounted by at least 30% with a higher level of discount for elderly residents. These discounts are included in the £505,187 income shown above. Total rental income excluding discounts is £738,680.

 

Grants awarded to tenants, are further discounts of rent and are provided to certain tenants who are in need of additional financial support, typically on a short-term basis. The grants awarded to tenants are approved by the trustees and the conditions of each award are regularly reviewed. The discount is recognised in the financial statements as a deduction from the related rental income, in the period the trustees approve the grant.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
5

Investments

Unrestricted
Total
funds
2024
2023
£
£
Investment interest and dividends
24,177
18,767

Investment income as shown above is wholly attributable to unrestricted funds.

 

6
Costs of charitable activities - by activity
Activities
undertaken directly
Support     costs
Total            2024
Total          2023
£
£
£
£
Letting of homes to service veterans in need
241,468
95,777
337,245
348,867
Included in activities undertaken directly are £nil (2023 - £17,821) of costs attributable to restricted funds.
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
7
Activites undertaken directly
2024
2023
£
£
Council tax and water rates
828
2,208
Light and heat
(158)
9,395
Repairs and maintenance
198,380
204,661
Maintenance of grounds
18,730
11,270
Insurance
6,623
5,691
Cleaner's salary
5,521
5,033
Cleaning materials
737
2,070
Legal and professional
5,741
2,262
Telephone
295
201
Warden call system
4,814
5,606
Resident support costs
96
1,044
Bad debts
(940)
4,797
Special projects - windows
-
3,466
Special projects - pavements, roads and grounds
-
-
Special projects - new communal area and office
-
-
Special projects - 15 Memorial Homes flat conversion
801
-
241,468
257,704
Included in activities undertaken directly are £nil (2023 - £17,821) of costs attributable to restricted funds.
8
Other income
Unrestricted
Total
funds
2024
2023
£
£
Sundry income
1,436
81
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
9
Support costs
2024
2023
£
£
Estate manager's salary
51,612
48,300
Wages and salaries
15,425
14,436
Employer's NI contributions
1,561
1,038
Staff pension costs
2,210
2,004
Printing, postage and stationery
1,376
1,408
Telephone and internet for office
1,001
587
General expenses
2,062
4,927
Trustee indemnity insurance
1,880
1,711
Accountancy
5,380
4,691
Depreciation
916
896
Audit
3,600
3,600
Investment management charges
8,754
7,565
95,777
91,163
All support costs as shown above are wholly attributable to unrestricted funds.
10
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
916
896
11
Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year.

 

No expenses have been reimbursed to the directors during the year.

 

12
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2024
2023
Gains/(losses) arising on:
£
£
Revaluation of investments
78,443
32,089
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
13
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Estate manager
1
1
Resident manager
1
1
Cleaner
1
1
3
3
Employment costs
2024
2023
£
£
Wages and salaries
72,558
67,769
Social security costs
1,561
1,038
Staff pension costs
2,210
2,004
76,329
70,811

No employee received remuneration of greater than £60,000 in the current or previous year.

 

Total remuneration of key management personnel during the year was £58,353 (2023: £54,490) and employers pensions £2,210 (2023: £2,004 ). Pension contributions were paid to 1 (2023: 1) staff under a defined contribution scheme.

14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
15
Fixed asset investments
Unlisted investments
£
Cost or valuation
At 1 October 2023
708,285
Additions
7,572
Valuation changes
78,443
At 30 September 2024
794,300
Carrying amount
At 30 September 2024
794,300
At 30 September 2023
708,285

At the 30 September 2024 the charity held an investment portfolio comprising of £516,483 (2023 - £456,274) in equity securities, £60,805 (2023 - £36,273) in structured return investments, £124,903 (2023 - £118,160 ) in fixed interest investments, £55,331 (2023 - £51,770) in hedge funds, £16,497 in property investments (2023 - £12,401) and £20,282 (2023 - £33,407 ) in cash deposits.

 

All fixed asset investments are held within the United Kingdom.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
16
Tangible fixed assets
Land and buildings
Fixtures, fittings & equipment
Computers
Total
£
£
£
£
Cost
At 1 October 2023
4,194,732
2,181
2,398
4,199,311
Additions
32,260
-
-
32,260
At 30 September 2024
4,226,992
2,181
2,398
4,231,571
Depreciation and impairment
At 1 October 2023
-
872
520
1,392
Depreciation charged in the year
-
436
480
916
At 30 September 2024
-
1,308
1,000
2,308
Carrying amount
At 30 September 2024
4,226,992
873
1,398
4,229,263
At 30 September 2023
4,194,732
1,309
1,879
4,197,920
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts due from residents
32,298
22,355
18
Creditors: amounts falling due within one year
2024
2023
£
£
Other taxation and social security
1,014
3,188
Trade creditors
5,032
13,215
Other creditors
467
355
Accruals and deferred income
6,725
6,725
13,238
23,483
BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
19
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 October 2023
Incoming resources
Resources expended
Transfers
At 30 September 2024
£
£
£
£
£
Queen Mary's Roehampton Trust fund - boilers
3,179
-
-
-
3,179
Queen Mary's Roehampton Trust fund - Poppy Lane 2
-
35,000
-
(32,260)
2,740
3,179
35,000
-
(32,260)
5,919
Previous year:
At 1 October 2022
Incoming resources
Resources expended
Transfers
At 30 September 2023
£
£
£
£
£
Queen Mary's Roehampton Trust fund
-
21,000
(17,821)
-
3,179

Queen Mary's Roehampton Trust fund - boilers

During the year ending 30 September 2023, grant income of £21,000 was recognised from the QMRT (Queen Mary's Roehampton Trust). The grant documentation states that these funds must be spent exclusively on the purpose of grant, which is to replace boilers in 8 of the properties, that are in excess of 25 years old.

 

Queen Mary's Roehampton Trust Fund - Poppy Lane 2 development

During the year ending 30 September 2024, grant income of £35,000 was recognised from the QMRT (Queen Mary's Roehampton Trust). The grant documentation states that these funds must be spent exclusively on the purpose of grant, which is to contribute toward the building of four new bungalows on the Estate.

 

The Armed Forces Covenant Fund Trust - Poppy Lane 2 development

During the year ending 30 September 2024, grant income of £500,000 has been awarded from The Armed Forces Covenant Fund Trust. The grant documentation states that these funds must be spent exclusively on the purpose of grant, which is to contribute toward the building of four new bungalows on the Estate. No grant money has been recognised during the year ending 30 September 2024 which falls in line with the terms and conditions of the grant.

BOURNEMOUTH WAR MEMORIAL HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
20
Analysis of net assets between funds
Unrestricted
Restricted
Total
Total
2024
2024
2024
2023
£
£
£
£
Fund balances at 30 September 2024 are represented by:
Tangible assets
4,229,263
-
4,229,263
4,197,920
Investments
794,300
-
794,300
708,285
Current assets/(liabilities)
234,306
5,919
240,225
90,600
5,257,869
5,919
5,263,788
4,996,805
21
Related party transactions

During the year legal services were provided by Genesis Solicitors, of which Natalie Burnman is a director. Since being appointed as Trustee, the cost of these services totaled £672. These costs are deemed to be at normal market rate.

22
Cash generated from operations
2024
2023
£
£
Surplus for the year
266,983
149,110
Adjustments for:
Investment income recognised in statement of financial activities
(24,177)
(18,767)
Fair value gains and losses on investments
(78,443)
(32,089)
Depreciation and impairment of tangible fixed assets
916
896
Movements in working capital:
(Increase)/decrease in debtors
(9,943)
2,704
(Decrease)/increase in creditors
(10,245)
9,381
Cash generated from operations
145,091
111,235
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