“Our Charity was founded in the 17th Century as four almshouses for poor widows and initially there was also an apprenticeship grant, although this no longer exists. The current almshouses were built in the 1960s and have since been updated with central heating, double glazing and an extra fire exit. In latter years the board has comprised 4-6 trustees, and a clerk. In 2018 the charity lost trustees due to retirement and death, and one of four almshouses became empty due to the death of a resident. Two new trustees had been appointed, the clerk to the trustees was looking to retire and remaining trustees were aware that governance needed to change – but where to start?

Having recently given up work and been invited to consider becoming clerk, I accepted the role in February 2019. The role was ‘not too onerous’ I was briefed. (Attendance at one meeting a year, write the minutes, collect the WMC or weekly maintenance contribution, sort out the occasional repair or maintenance, liaise with residents and hold the keys for the empty unit.) Fortunately I was encouraged, along with the new chairperson, to attend the Induction for Trustees and Clerks course at the beginning of March. It was a great forum in which to ask questions and to inform ourselves by talking to members as well as listening to the presenters. (It must also be said that it became obvious that many other almshouse charities were making similar mistakes and omissions to those that we were, from conversations that we had during that day.)

The most valuable of resources, The Standards of Almshouse Management and the Support and Care manual were also available and are easily accessed online. These are very enlightening documents, and are  encyclopaedias of best practice for running the charity, performing  the roles of clerk and trustee and ensuring good governance.

We were also encouraged to use the support of The Almshouse Association. On attending the next trustee meeting and feeding back some of the information in relation to where the charity stood and where it should be, one of the trustees felt that they no longer had the personal or IT skills to continue, given the pace and nature of change required and that was when my journey into charity clerking began in earnest.

What were we doing poorly and how has the charity addressed it?

  • The bank account was being signed by the clerk only, and now two signatories are required for that and the investment accounts.
  • We did not understand the accounts fully or the nature of the investment funds. The trustees met with the investment fund manager and have been able to make decisions in relation to these, and similarly for the accounts.
  • Whilst there was a healthy account balance, the WMC did not meet the outgoings of the charity, no quinquennial inspections had been carried out, and properties had not had safety inspections and maintenance undertaken except some minor work for some years. It was very likely that funds would diminish significantly, particularly when the obligations of the charity for safety and good management were met.
  • WMC was being paid by residents in cash. One resident was on housing benefit and it was impossible to determine how the minimal level that the council paid for her had been arrived at. She also made a payment to the charity 4 weekly but there was no reference as to what this was for. (Some major work had to be undertaken to find out that there was a legacy system that the council had which nobody could explain, and the resident made utility payments.) Currently a VOA assessment for Equivalent Fair Rent (EFR) has been received and we have been able to increase the WMC 230% in stages to date and have ensured that our residents who are eligible now receive Housing Benefit. All payments are now made directly into the bank.
  • A simple ‘on the ground’ risk assessment was undertaken by the clerk and the subsequent immediate urgent work meant that more was spent in the first two months than in the whole of the previous year. The absence of a quinquennial inspection was remedied in August 2019, incurring more expenditure, and highlighting the need for more expenditure for safety and standards to be met. The recommendations informed the need for remodelling and refurbishment.
  • Residents had been allowed to undertake work on their properties and two of them had changed their residence from bedsit to single bedroom. The trustees were made aware that this could not continue. A meeting was held with residents (and family members, if they chose to attend.) All  issues were addressed and a step increase in WMC made. It was a huge weight off the minds of trustees when this passed uneventfully. There has since been another increase to the level of EFR for a bedsit.
  • The clerk did not hold keys for the residences, which could cause problems in an emergency. This has now been remedied. Residents know that the charity would not require access except in case of emergency or urgent work and, whilst they have reservations, they also have the option of giving a key to a neighbour or family member instead of the charity if they are unable to be present.
  • There was no day to day way of determining accounts except the use of bank statements. A basic spreadsheet has been implemented, reducing accountancy costs.

What the future holds

  • Refurbishment and remodelling is currently underway, not having been helped by COVID 19 delays. (Our residents and trustees have so far been safe.) Grants have been applied for, and we await the outcome. The charity applied for, and was granted, an interest free loan from the Almshouse Association to help with spreading the cost as we take on board the impact of more than ÂŁ120,000 of expenditure whilst still undertaking future planning and implementation of responsibilities of the board of trustees.
  • The charity will have a further EFR evaluation when the work is completed to make all residences single bedroom.
  • Policies and procedures will continue to be added/ updated and the clerk and board members to take advantage of the Almshouse Association online training.
  • The charity will consider applying for Charitable Incorporated Status.

It should be said that none of this could have happened so far without the consent, co-operation and enthusiasm of the trustees, since it was a very daunting challenge at the start and will continue for some time still. The advice and support of The Almshouse Association has been invaluable and the dedicated guidance and encouragement of Susan Van Leest has been most welcome,  and for that we are immensely grateful.”

Posted April 21