**Company Registration No. 1000227 (England and Wales)** ## **PHILIP BARKER CHARITY** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 OCTOBER 2020** ## **PHILIP BARKER CHARITY** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Independent auditor's report|4 - 6| |Statement of financial activities|7| |Balance sheet|8| |Notes to the financial statements|9 - 14| ## **PHILIP BARKER CHARITY** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Sir Edmund Burton| |---|---| ||Mr T R A Groves| ||Mrs J P E Groves| |**Charity number**|1000227| |**Principal address**|Bay Tree Cottage| ||Barbary Close| ||South Cheriton| ||Somerset| ||England| ||BA8 0BG| |**Auditor**|Mitten Clarke Audit Limited| ||Chester House| ||LLoyd Drive| ||Ellesmere Port| ||Cheshire| ||United Kingdom| ||CH65 9HQ| |**Investment advisors**|Investec Wealth & Investment Limited| ||The Plaza| ||100 Old Hall Street| ||Liverpool| ||L3 9AB| ## **PHILIP BARKER CHARITY** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ The Trustees present their report and financial statements for the year ended 31 October 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's deed of trust , the Charities Act 2011 and “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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) ## **Structure, governance and management** The Charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. The Philip Barker Charity is a registered charity, number 1000227. The Charity was established by a charitable trust deed on 10 August 1990. The Trustees who served during the year and up to the date of signature of the financial statements were: Sir Edmund Burton Lady Burton (Deceased 25 September 2020) Mr T R A Groves Mrs J P E Groves The objects of the charity are the relief of poverty, advancement of education and the Christian religion, and other charitable purposes for the benefit of the community, through the making of grants to appropriate institutions and organisations. The Trustees give special consideration to the furtherance of the objects in the City of Chester and the County of Cheshire. ## **Organisational structure** The trustees who served during the year and since the year end are set out on page 1. Trustees are appointed by the board of trustees following discussion of recommendations. They serve for a period of five years, after which they may put themselves forward for reappointment. The Trustees meet quarterly to assess grant applications and approve grants. ## **Resources** The Trustees anticipated that the charity would continue to suffer from a reduced income from its investments and during the year ended 31 October 2020 re leased funds from investments in order to supplement grants for the current year. The additional funds required to meet approved grants were drawn from the unrestricted funds of the charity. ## **Risk management** The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established, so that the necessary steps can be taken to lessen these risks. ## **Objectives and aims** In keeping with the objectives of the charity, the Trustees continue to focus on supporting local charities operating in Chester and the North West and, particularly, those related to youth activities that enhance young people's safety, preparing them for future employment and, in so doing, strengthening local communities The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. - 1 - ## **PHILIP BARKER CHARITY** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **Salutation** The Trustees record, with great sadness, the death of Lady Burton and acknowledge the major contribution she had made as Trustee since 1997. Her commitment and innovative contribution to the development of the Charity and its support of pioneering work with a range of partners across Cheshire’s educational and operational spectrum has been truly significant. ## **Grant Making** During the year grants to charities totalled £132,000. The Charity grant-making policy is to concentrate the Charity’s limited resources, making major grants to a small number of charities, where significant and enduring benefits can be delivered. In recent years the charity has supported the Philip Barker Centre for Creative Learning, Cheshire Youth United, and the North West Young People’s Cyber Security Safety Initiative; the latter two under the auspices of the Youth Federation. This policy has delivered significant benefits to innovative and highly effective initiatives, led by inspiring people, working in partnership. ## **Legacy** In 2016 the charity received a major legacy from the estate of the late Mrs Gwen Mather (founder of the Philip Barker Charity). The trustees decided that these funds would be devoted to the establishment and operation of the Philip Barker Centre for Creative Learning, within the education department of the University of Chester, initially, for 5 years. This initial phase will be completed by the grant due in 2020/21. The initiative seeks to stimulate innovative opportunities and the implementation of new and effective approaches to teaching, learning and the use of creativity within a range of contexts. ## **General** The Covid crisis has had a serious impact on all the uniformed youth groups of the Cheshire Youth United (CYU), with all predicting a long-term loss of young people and volunteers. The CYU, with partners, is running a recruiting initiative through schools to maintain and invigorate the services that they offer to young people: this will identify and engage young leaders across the youth groups. The Youth Federation is working with partners, including the Cheshire and Warrington Pledge programme which is, effectively, acting as a bridge between industry and young people and preparing them for employment, with the necessary life skills and leadership. Significantly, the effectiveness of these grants is enhanced by the establishment of enduring partnerships with primary and secondary schools, councils, police, fire and rescue, universities (including teacher training providers) and national experts. These links are being extended to include private sector employers. ## **Major Youth Grants** Major repeat grants were made to the Philip Barker Centre for Creative Learning (£100,000 (referred to above)); to the Youth Federation North West Young People's Cyber Safety initiative (£20,000) and Youth United programmes (£12,000). ## **Community Grants** All the major grants to youth organisations have delivered benefits to local communities, through the well-established links between the youth organisations and their local communities. ## **Reserves policy** The trustees have reviewed the reserves of the charity and concluded that, in order to allow the charity to be managed efficiently and to provide a buffer, the unrestricted funds not invested in investments held by the charity should be maintained at a level of approximately twelve months anticipated expenditure. At the balance sheet date reserves were in excess of that amount. The trustees continue to monitor and review this policy. - 2 - ## **PHILIP BARKER CHARITY** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **Investment policy and objectives** There are no restrictions on the charity's power to invest. The investment strategy is set by the trustees, with the advice of their stockbrokers (Investec), to whom the day-to-day management of investments is delegated. The strategy is to invest in low risk investments, which will generate sufficient income from which to fund the grants payable, whi lst sustaining the value of the portfolio. The results for the year show a deficit of funds of £ 60,439 before the unrealised loss on revaluation of listed investments . The unrestricted funds of the charity amounted to £ 1,779,151 . This can be compared with the figures of past years: £1,995,831 at October 2019 : £2,020,630 at October 2018: £2,183,406 at October 2017; £2,085,912 at October 2016; £1,723,238 at 31 October 2015. During this financial year grants totaled £ 132,000 . The Trustees continued to exercise tight control over management and administrative costs, which totaled £ 1,693 ( 1.2 % of resources expended). ## **Statement of Trustees' responsibilities** The Trustees 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). The law applicable to charities in England and Wales 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 of the Charity 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 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 sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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. The Trustees' r eport was approved by the Board of Trustees. ## **Sir Edmund Burton** Trustee Dated: 19 June 2021 - 3 - ## **PHILIP BARKER CHARITY** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF PHILIP BARKER CHARITY** ## **Opinion** We have audited the financial statements of Philip Barker Charity (the ‘Charity’) for the year ended 31 October 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of 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 charity’s affairs as at 31 October 2020 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 Charities Act 2011. ## **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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. - 4 - ## **PHILIP BARKER CHARITY** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF PHILIP BARKER CHARITY** ## **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' r eport; 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 are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, 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 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 accounts 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 accounts. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **Other matter** Your attention is drawn to the fact that the charity has prepared accounts 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 (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. - 5 - ## **PHILIP BARKER CHARITY** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF PHILIP BARKER CHARITY** |**Mrs Desirie Lea FCA FCCA (Senior Statutory Auditor)**|| |---|---| |**for and on behalf of Mitten Clarke Audit Limited**|20 July 2021| |**Chartered Accountants**|| |**Statutory Auditor**|Chester House| ||LLoyd Drive| ||Ellesmere Port| ||Cheshire| ||United Kingdom| ||CH65 9HQ| Mitten Clarke Audit Limited 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 - 6 - ## **PHILIP BARKER CHARITY** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ |**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Investments
**2**
40,903
**Expenditure on:**
Raising funds
**3**
11,396
Charitable activities
**4**
133,693
**Total resources expended**
145,089
Net gains/(losses) on investments
**9**
43,747
**Net outgoing resources**
(60,439)
**Other recognised gains and losses**
Revaluation of Investments
(156,241)
**Net movement in funds**
(216,680)
Fund balances at 1 November 2019
1,995,831
**Fund balances at 31 October 2020**
1,779,151|Total
2019
**£**
47,013
11,523
163,615
175,138
12,675
(115,450)
90,651
(24,799)
2,020,630
1,995,831| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 7 - ## **PHILIP BARKER CHARITY** ## **BALANCE SHEET** ## _**AS AT 31 OCTOBER 2020**_ |**Notes**
**Fixed assets**
Investments
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2020**
**£**
129,485
38,495
167,980
(1,695)|**£**
1,612,866
166,285
1,779,151
1,779,151
1,779,151|**2019**
**£**
181,656
28,292
209,948
(1,646)|**£**
1,787,529
208,302
1,995,831
1,995,831
1,995,831| |---|---|---|---|---| The financial statements were approved by the Trustees on 19 June 2021 Sir Edmund Burton **Trustee** - 8 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **1 Accounting policies** ## **1.1 Accounting convention** The accounts have been prepared under the historical cost convention. , with the exception of investments which are included at market value, as modified by the revaluation of certain assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). the Charities Act 2011 and the requirements of the Statements of Recommended Practice, Accounting and Reporting by Charities. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **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. ## **1.4 Incoming resources** 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. All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. ## 1.5 **Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. ## **1.6 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. - 9 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **1 Accounting policies** ## **(Continued)** ## 1.7 **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 and bank loans 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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. ## **Derecognition of financial liabilities** Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled. ## 1.8 **Taxation** The charity is exempt from tax on its charitable activities. ## 1.9 **Fund accounting** Unrestricted funds can be used in accordance with the charitable activities at the discretion of the trustees. - 10 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **2 Investment/Income** |**Unrestricted**
**funds**
**2020**
**£**
Income from listed investments
39,311
Interest - UK fixed interest securities
1,486
Interest receivable
106
40,903|Total
2019
£
45,312
1,583
118| |---|---| ||47,013| |**3**
**Raising funds**
**Unrestricted**
**funds**
**2020**
**£**
Investment management
11,396
11,396|Total
2019
£
11,523| |---|---| ||11,523| ## **4 Charitable activities** ||**Grants paid**|**Grants paid**| |---|---|---| ||**2020**|**2019**| ||**£**|**£**| |Grant funding of activities (see note 5)|132,000|162,000| |Share of governance costs (see note 6)|1,693|1,615| ||133,693|163,615| - 11 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **5 Grants payable** ||**Grants paid**|**Grants paid**| |---|---|---| ||**2020**|**2019**| ||**£**|£| |Grants to institutions:||| |Other|132,000|162,000| ## **Youth Grants** The following grants were made to encourage local youth activities. They were: £20,000 to the Youth Federation - towards funding of full-time project manager £12,000 to the Youth Federation - to fund the Youth United activities in Cheshire £100,000 to the University of Chester - to enable the establishment of the Philip Barker Centre for Creative Learning ## **6 Support costs** |**Support costs**
**Governance**
**costs**
**£**
**£**
Audit fees
-
994
Accountancy
-
699
-
1,693
Analysed between
Charitable activities
-
1,693|**2020**
**£**
994
699
1,693
1,693|**2019 Basis of allocation**
**£**
996 Governance
619 Governance
1,615
1,615| |---|---|---| Governance costs includes payments to the auditors of £ 994 ( 2019 - £996 ) for audit fees. ## **7 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year. ## **8 Employees** There were no employees during the year. - 12 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **9 Net gains/(losses) on investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2020**|2019| ||**£**|£| |Gain/(loss) on sale of investments|43,747|12,675| ## **10 Fixed asset investments** |**Cost or valuation**
At 1 November 2019
Additions
Valuation changes
Disposals
At 31 October 2020
**Carrying amount**
At 31 October 2020
At 31 October 2019
**11**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**12**
**Creditors: amounts falling due within one year**
Other creditors|**Listed**
**investments**
**£**
1,787,529
391,547
(156,241)
(409,969)
1,612,866
1,612,866
1,787,529
**2020**
**2019**
**£**
**£**
129,485
181,656
**2020**
**2019**
**£**
**£**
1,695
1,646| |---|---| - 13 - ## **PHILIP BARKER CHARITY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 OCTOBER 2020**_ ## **13 Related party transactions** There were no disclosable related party transactions during the year (2019- none) . - 14 -