Valentine Charitable Trust Financial Statements 305eptember 2020
Valentlne Charltable Trust Contents Page Legal and admlnistratlve informatlon Trustees, report Independent auditors, report to the trustees Statement of flnanclal activitles 12 Balance sheet 13 Cash flow statement 14 Notes to the fSnancial statements 15
Valentine Charltable T¥ust Legal and Admlnlstratlve Information Trustees The trustee5 who Served during the year were.. Mr D J E Neville~Jones Mrs S C K Palterson Mr RAGregory Mrs D Tory Mr P Leatherdale Wing Commander DAJack Mrs S J Ridley Ms F Normington-smith Principal Address Hintorb House Hinton Road Bournemouth BHI 2EN Auditors Saffery Champness LLP Midland House 2 Poole Road Bournemouth BH25QY Bankers Lloyds Bank PIC 45-47 Old Christchurch Road Bournemottth BHI IEO Sollcitors Preston Redman Hinton House Hinton Road Bournemouth BHI 2EN Investment Managèrs Charles Stanley & Co. Limlted 2 Westover Road Bournemouth Dorset BHI 2BY Investec Wealth & Investment Llmited Midland House 2 Poole Road BouTnemouth BH2 5QY Page I
Valentlne Charltable Trust Trustee5' report For the year ending 30 September 2020 The Trustee5 are pleased to present their report together wlth the flnanclal statements of the Trust for the vear endlng 30 September 2020. The financial statements have been prepared in accordance wlth the accounting policies set out in note I to the account5 and comply with the Charitie5 Trust Deed (Ind the Charitie5 Att 2011 and the Statement of Recommended Practice- Accounting and Reporting by Charities 2005. REFERENCE ANDADMINISTRATIVE DETAILS The Valentine Charltable Trust Is a reglgtered charSty Ino 10017821. STRUCTURE, GOVERNANCE. MANAGEMENT The Trust was started by the late Mlss Ann Cotton and is governed by its Trust deed dated 10 December 1990, last updated l November 1995. Deci51ons are made by the board of Trustees, present and voting at duly constltuted meetings. The Trijstees meet once a quarter. The day to day administration of the charity is delegated to Preston Redman Sollcitors under terms of reference Issued by the Bvard of Trustees. A full115t of Trustees can be found on page l. All Trustees served throughout the year and to the date of this report. Policy and procedures for recrultlng. Inductlon and tralnlng of Trustees The Trustees have the power to appolnt new trustees. The Trustees have identified the need to be aware of the fact that the present Trustees will not romtin in place indefinitely and that they should consider the recruitment of replacement or additional Trustees from time to tlme to ensure future contlnuity. They will endeavourto identify likely candldates and try to re¢oEnlsÈ the qualitles in them, which might benefit the futvre adminislratlon of the Trust. If suitable people are suggested and agreed by the Trustee5 they will be approached to ask whether they arè willing and able to be considered for tiusteeship. When a nÈw TrustÈe is appointed the existing Trustees will do their best to provide them with all background information on the Trust. They will a150 as51St with any nè¢Èssary guldelines and other education as required, on the duties, Yesponsibilities and requirements which must be taken on by trustees. A review after 6 months will be conducted to establish whethèr additlonal information, help or advice is required by a new Trustee. New Trustees, when appointed, wlll be asked to slgn a self-de¢laratlon of wlllingness and eliglblllty to act and a list of appointments and positions which may give rise to conflicts of interest. Risk assessment The Trustees have examined the majo¥ strategic, business and operational rlsks which the Trust faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. Page 2
Valentine Charitable Trust Trustees. report For the year ending 30 September 2020 Icontlnuedl OBJECTIVES AND ACTIVITIES The charity's objectives as laid down irk the charity'5 trust deed are to apply income and capital toward5 such charitable purposes as the Trijstees may in their absolute discretion think fit. In particular, Ibut without limltatlonl,111 the provislon of such anjenllies and facllitles for the beneflt of the publlc as are not provided from public funds and lill the protection and safeguarding of the countryside and wildlife and the control and reduction of PDllution. The maln objective for the year was to malntaSn the real vallte of the investment and obtaln Sncome of greater than £750,000. Stock market volatility adversely impacted value which wa5 not maintained, however. despite a f811 in dividend income. the Trust's income objective was a¢hleved. The Trustees tonfirm that they have referred to the guidance Contèined in the Cl)arity Commission's general guidance on public benefit when reviewing the Trusvs aims and objectives and in planning future activities. GRANT MAKING POLICY The Trustees, donation policy Is that they will aim to distribute the majority of the income each year to charitable organisations of their choice with a view to helping and supporting favoured charities on a regular basis whilst also making one-off donations for specific appeals, subject to the availability of funds and charitable requirements. The Trustees have over recent years operated a Policy of not considering applicatlons unless they have what they consider to be an established relatior)ship with the applicant. Despite that theie have been occasions when the Trustees have been able to make Erants outside that pollcy, particularly in the case of local applicants. The Ilkely income of the Trust after expenses Is estlmated to be in excess of £700,000 a year. That flgure will vary from year to year but the Trustees aim to make distributions on a quarterly basis. The income cash flow may not be unlform over the year but capital cash can be used to iron out fluduatlons. The Trustees have Identified the following general aims.. The Trustees have been entrusted with the Charity's substantial assets and they propose to try and manage those to produce as large an income as reasonably possible commensurate with preserving the real value of the Charlty's capltal assets. They then propose to distribut@ the resulting income of the Charity after expenses by way of grants to other charitie5 or organisations of an equivalent status. The Trustees have concluded that to achieve the vision of the Charity they should adopt the following criteria when maklng grants. In settlng out these crlleria the T¥ustees are demonstiatln8 how they propose lo apply the vision of the Charity a5 Its mission. Page 3
Valentlne Charitable Trust Trustees, report For the year endlng 30 September 2020 lcontlnuedl Grants to local charltie5 Miss Cotton lived most of her life in Dorsel, first at Broadstone and latterly at Canford Cliffs in Poole. Involveinent in local projects appealed to her as she demonstrated while she was a Trustee of the Charity. The Trustees do not propose to set a physirdl limit on what they consider to be local but when dealing with charltles with limlted areas of Inte5t, they wlll be likely to give preference to those whlch operate in Dorset. The Trustees will also consider making grants to charities which, while not based in the local area. operate there. 6rnnts to charltles which have traditlonolly recelvedsmull grants Over the years Ithe Charity was formed in 19911 the Charity has been in the habit of making relatively small 8rantS to d number of charities on a reBular basis. Many of these ori8inated in Mlss Cotton's time or are a dlrect reflecilon of her thoughts. The Trustees propose to contlnue these subject to appropriate review at the lime each is considered to be repeated. The Trustees do however appreciate that circumstances change so the mere fact that a charity has recelved giants on a regular basls In the past does not mean there Is an automatic decisron to continue to do so. Grattts to support objective5 in otherpt¥rts of the world The Charity has supported a number of small initiatives in the third and undeveloped world. The Trustee5 particularly1Ske to look for projects whlch offer sustalnability to local communities. Grants fo one off uppeuls There are regularly one off appeals to provide fundlng for specific projects and the Trustee5 have regularly made dor)atlons to such appeals wliere they are for local facilities. However the Trustees are noi keen on village halls or thè fabric of church buildings. Grantsfor medlcal reseur¢h ond hospltuls The Charlty has made regular donations In these areas but, as a matter of pollty, the Trustees look for guarantee5 that any donations the Charity makes to bodies or objects related to the National Health Se1 arè for projects or equipment which have no likelihood of being provided Dut of central fun(ls in the foreseeable futLFre. Grantsfor corefundlrtg One of the recurrent themes of comments made to the Trustees by applicants concerns the problems of obtalnlng ¢orè fundSng. Apparently many #rant making trusts have a policy of not provSdlng ¢ore fundlng. The Trustee5 have decided that they are prepared to make donations toward5 the core funding of charities and make such grants on a repeat basis. However any repeat donations require a report from the applicant charity and a new application so that the Trustee5 can revlew the posillon. They take the view that If It has been right to support a particular charily once then, unless something changes, that motive can be followed again. albeit charitlès are encouraged to become self-rellant and/or seek funding from other sourcès so that they do not become solely dependent on the Valentine Charitable Erust for their core f(Jnding in the long term Iwutchedlunding and pledges The Trustees regularly use the device of offering funding to a project conditional upon the applicant raising other funds before the donation will be forthcoming. Similarly offer5 of donations are sometimes made on the basis that they will only be made once the project actually proceeds. All such offers are subject to review up until the tlme they are actually made. Page 4
Valentlne Charitable Trust Trustees, report For the year endlng 30 September 2020 Icontlnuedl Social Investmentfunding Following Mis5 Cotton's death the Charity's assets were invested in a very narrow ¥an8e of investments. To 35SlSt with diversification the Trustees developed what they teTm social investment funding. This involves either the purchase of prem15e5 which are then leased to an operatln8 charity for its Use- the lease is usually at a modest or nomlnal rent and for a relatively limited term, or the provision of a loan wlth an interest rate of between 0% and base rate to an operatine charily to allow it to acquire property. Admlnlstrotlon All appllcatlons will be ackiiowledged with standard lettefs, even those that are not app¥opriate for receiving a grant. This responsibility is delegated to the Trust's administrato¥ who then provides a report to the next trustees, meeting. The following general comments summarlse some of the ton51derations the Trustèes seek to apply when considering applications for funding. The Trustees look for value for money. While this concept 15 difficult to apply in a voluntary sector it can certainly be used on a comparative basis and subjectively. If the Trustees have competing applications theywill usually decide to support just one of them a5 they believe that to concentrate the Charity's donations is more beneficial than to dilute them. Regular contact with the charities to which donations are made is COFbsidered essential. Reports and accounts are also ieque5ted from charities which are supported and the Trustee5 consider those at thelr meetings. The Trustees take great comfort from the fact that they employ the poll¢y of only maklng donatlons to other charitie5 or similar bodies. However they are not complacent about the need to review all donatiorbs made and the Dbjects to which those have been given. The Trustees are conscious that, particularty with the smaller and local charities, the community of those workii)g for and with the charity is an important consideration. The Trustees regularly review the classifications to which donations have been made so that they can obtain an overview Df the Charity's donations and assess whether their policies are being impleinented in practice. They aTe consClOUS that whon dealing with individual donations It is easy to lose sight of the overall picture. Charities are asked to formally acknowledge receipt of their grants and any cheques that are not presented in a timely fashion are discussed at a future quarterly meeting. ACHIEVEMENTS AND PERFORMANCE Financlal review The attached ac¢ountS Show total incomlng Income resources for the yearof £909,44812019: £1.227,2521 and resources expended of £1,283,16912019'. £1,240,092) resulting in a deficit for the year, before considering movements in invèstments, of £373,72112019: £12,840). The investment portfolio had realised losses of £715,93812019: £51,369 Igainll and unrealised losses arising in the year of £2,054,50512019- £515,485 Igainsll. This contributed to the decrease in the value of the overall trust fund from £36,991,612 to £33,847,448. Page 5
Valentlne Charltablè Trust Trustees, report For the year ending 30 September 2020 Icontinuedl Activitie5 in furtherance of charitable objects. During the year the charity made grants totalling £1,125,000 to 135 charitie$12019.' £1.068,500 to 137 charitiesl. These are detailed in note 4. The value of market rent not charged on the properties rented Is approximately £60.000, which, although not a direct EranE of cash, released funds to these charities for their core objectives. Investments The coronavirus pandeinic has presented some particularly difficult condltiofts both forthe Trust's investment managers and for many of the orEanisations which the Trust supports. This has resulted In a redLlCtÉon of the capital value of the Trust's Investment portfollos from £33,632,768 to £31,471,891, ar)d its income. The Trustees declded that desplte those reductions they would conllnue to support many of those applying for grants even though that meant making grants in excess of the Trust's income. INVESTMENT POLICY Under the terms of the trust deed the Trustees have wide powers of investment over the assets of the Trust. The Truslees have delegated the investment management to Charles Stanley and Company Llmlted and Invèstec Wealtl) and Management Limitod who arè rèquirèd to sÈlÈtl Invèstments whlch wlll give equal consideration to the production of an annual income and a level of capital growth to maintain the real value of the trust fund for the future. This strategy should produce a total return that allows the Trust to pursue its tharltable objectlv@% as fully as possible. The investment strategy should be one of medlum rlsk. The Trustees also reserve the right to invest capital monies in property or other investments. The Trustees have agreed an ethical investment policy and instructed the Charity's brokers to follow that. Page 6
Valentine Charitable Trust Trustees, report For the year endlng 30 September 2020 Icontlnuedl RESERVES POLICY The Trustecs, policy is to review reserve levels on a regular basis and to maintain a level of resee5 which will provide a stable base for the Trust's continuing activities whilè at the same time ensuring excessive funds are not accumulated. There 15 generally, in the normal course of administration, a substantial cash balance of income in bar)k accounts which can be utilised to facilitate lar8e donations for charitable purposes should the need arise. Thè Trustees meet quarterly and aim to maintain a cash balance of approximately £150,000 In the income fund to meet the commitments falling due in each forthcomin8 quarter. The income reserves at 30 September 2020 show a deflclt of £38,385 12019.. £281,992 Isurplusll. This is exceptional and Is a reflection of the extreme Circumstances created by ihe pandemic and the Trustees, ijecision to continue to make 8rants despite the impact on the Trust's cash posltion. This will be kept under review. PLANS FOR FUTURE PERIODS To malntaln the real value of the investment portfolio and of the income from it in the long term, with a current target income of £750,000. To continue to meet its primary obje¢tSves as stated on pagÈ 3. TRUSTEES, RESPONSIBILITY AND INTERNAL CONTROL Law applicable to charities requires the trustees to prepare financial statements, which give a true and fair view of the state of affairs of the Trust at ihe end of the financial year and of its incoming resources and application of resour5 for the year then ended. In doing so, the trustees are required to.. Select sultable accountlng policies and then apply them conslstently Make judgements and estimates that are reasonable and prudent Prepare the financial statements on a going concern basls unless It becomes Inapproprlate to presume that the Trust will continue in the foreseeable future State whether appllcable accountlng standards have been followed, subject to any matellal departures disclosed and explained in the financial slatements The Trustees have over311 responsibility for ensuring that the Trust has appropriate systems of inteTnal controls, financial and otherwise. They ère also responsible for keeping proper ac¢ountinB records, whlch dlsclnse wlth reasonable 8c¢.uracy at any tlme the flnancial positlon of the Trust, and enable them to ensure that the financial stètements comply with the Charities Act 2011. They 8re also responsible for safeguardin8 the assets of the Trust and hence for taking reasonable steps for the prevention and detectlon of fraud and other irre8ularities and to provide reasonable a55urance that.. The Trust is operatlng efflciently and effectivelyi Its assets are safe8uarded a8ainst unauthorised use or disposltion,. Proper records are maintained and the financial iiiformation used withln the Trnst is rellable; and The Trust complies with relevant laws and regulations. Page 7
Valentine Charitable Trust Trustees, report For the year ending 30 September 2020 Icontinuedl AUDITORS A resolution to re-appoint Saffery Champness will be submitted to the Annual General Meetlng. By order of the trustee Ms F Normlngton-smlth Date 24 June 2021 Page 8
Valentine Charitable Trust Independent auditors, report to the Trustees For the year ended 30 September 2020 Oplnion We have audited the financial statements of the Valentlne Charltable Trust for the year ended 30 September 2020 which comprise the statement of financial activities, balance sheet, cash flow Statement and notes to the financial statements, includlng a summary of significant accounting policies. The financial reporting framework that has been applied in theSr preparation is applicable law and United Kingdom Accounting Standard5, Including Finantial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republlc of Ireland (Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a tiue and fair view of the state of the ¢harlty's affalrs as at 30 September 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 requlrements of the Charities Act 2011. Ba515 for opinion We conducted ouraudit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities unde¥ those standards are further described in the Auditors, responsibilities for the audit of the finan£ial 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 iIK, including the FRtrs Ethlcal Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtalned Is sufflcient and appropriate to provlde a basls for our opinlon. Concluslons relatlng to going contern We have nothing to report in respect of the following matters in relatlon to which the ISAS IUKI require u5 to report to you where.. the trustees, tsse 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 uncertaintles that may cast SlEnificant 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 re5pon5ible for the other information. The other informètlon comprlses the Information included in the annual report, other than the financial statements and our audltors, report thereon. Our opinion on the finaiicial statemeiits does not cover the other Informatlon and, except to the exlent otherwise explicitly stated in our report, we do not express any form of assurance concluslon thereon. Page 9
Valentine Charitable Trust Independent audltor< report to the Trustees For the year ended 30 September 2020 In connection with our audit of the financial statements, our responsiblllty Is to read the other Information and, in doing 50, consider whether the other information is materially inconsistent with the finaiicial statements or our knowledge obtained in the audit or otherwise appears to be materially mSsstated. If we identify Such material incon51Stencie5 or apparent material misstatement5, we ale 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 therels a material misstatement of thi5 Other info¥mation,' we are required to report that fact. We have nothing to report in this regard. Matteys on whl¢h we are requlred to report by exGeptlon We have nothing to report in respect of the following matters in relation to which the Charlties IAccounts and Report51 Regulations 2008 require us to report to you if, in our opii)ion- the Information glven In the Trustees, Annual Report Is Inconslstent In any material respect with the financial statements: or the charSty has not kept sufflclent accounting records,. or the financial statements are not in agreement with the accounting records and returns,. or we have not received all ihe Informatlon and explanatlons we requlre for our audlt. Responsibilities of trustee5 As explained more fully in the Trustee5' Responsibilities Statement set out on page 7, the trustees are responsible for the preparation of the financial statements and this has been delegated to Saffery Champness and for belnE satisfled that they glve a true and falr view, and for such Internal control as the trustee5 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparlngthe financial statements. the trustees are responsible for assessing the charitws abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and using thè golng concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditoys, responsibilities for the audit of the financial statements We have been appointed as audltors under the Charities Act 2011 and report in accordance with regulations made under that Att. Our objectivès are lo obtain rèasonablè aUranCe about whetherthe flnanclal statements as a whole are free from matefial mlsstatement, whether due to fraud or error, and to issue an auditors, report that include5 our opinion. Reasonable assurance is a high level of assurance, bLIt is not a guarantee that an audit conducted in accordance wlth ISAS IUKI wlll always detect a materlal mlsstatement when St exlsts. Mlsstatements can arise from fraud or error and are consldered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decislons of users taken on the basis of these flnanclal statements. Page 10
Valentlne Charltable Trust Independent auditors, report to the Trustees For the year ended 30 September 2020 A further description of our responsibilities forthe audit of the financlal statements is located on the Financial Reporllng Councll's website at- www.fic.or audilorsres onsibilities. This description forms part of our auditors, report. Use of our report This report is made solely to the charity's trustee5, as a body, in accordance with part Al of the Charities (Accovnts and Reports) Regulatlons 2008. Our audit work has beer) undertaken so that we mighi 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 charlty and the trustees as a bodyi for our audit work, for thls report, or for the opinions we have lormed. Saffèry Champness LLP Chartered Accountants Slatutory Auditors Midland House 2 Poole Road Bournemouth Dorset BH2 5QY Date: 28 June 2021 Saffery Champness LLP is eli8ible to act as an audltor In terms of sectlon 1212 of the Companles Act 2006 Page 11
Valentlne Charltable Trust Statement of financlal activities For the year ended 30 Sèptèmbèr 2020 Unrestricted capltal fund 2020 Unrestricted income fund 2020 Unrestricted Unrestrlcted funds fund5 total total 2020 2019 Notè INCOME Investment income 909,448 909,448 1.103,311 othe¥ Income 123,941 Total Sncome 909,448 909,448 1,227,252 EXPENDITURE Charltable activities Grants awarded Sn the year Support costs 1,125,000 51,481 1,125,000 51,481 1,068,500 63,950 Cost of raising funds Investment managemenl fees (excluding commisslonsl Total expendlture 53,344 53,344 106,688 107,642 53,344 1,229,825 1,283,169 1,240,092 Realised Ilossllgaln on Investment assets Unrealised Ilossllgain on investmerbt assets 1715,938) 1715,9381 51.369 12,054.5051 12,823,787) 12,054,505) 13,144,164) 515,485 Net MovÈmÈnt In funds 1320,3771 554,014 Total funds brought fonmard 12 36,709,620 281,992 36,991,612 36,437,598 Total funds carried forward 12 33,885,833 138,385} 33,847,448 36,991,612 The statement of financial activities includes all gains and1055es retognised In the year. All income and expenditure derive from continuing activities. The notes on pages IS to 26 form part of these flnancial statements. Page 12
Valentine Charitable Tyust Balance sheet As at 30 September 2020 Note 2020 2019 Fixed assets Tangible fixed assets Investments 1,059,058 31,471,891 1,059,058 33,632,768 32,530,949 34,691,826 Current assets Other debtors and prepayments Cash at bank io 457,698 902,915 447,324 1,896,115 1,360,613 2,343,439 Creditors: amounts falling due within one year other creditor5 and accruals li 144,1141 143,6531 Net current assets 1,316,499 2,299,786 Net a55ets 33,847,448 36,991,612 Funds Unrestricted capital fund Unrestricted income fund 12 12 33,885,833 138,3851 36,709,620 281,992 33,847,448 36,991,612 The notes on pages 15 to 26 form part of these financial statements Approved by the Board on 24 June 2021 and signed on it5 behalf by.. Trustee .f L)IQL Page 13
Valentine Charitablè Trust Statement of cash flows For the year ended 30 September 2020 2020 2019 Net cash absorbed by operatlng actlvltles Isee note) 1383,6341 1115,3951 Cash flows from investlng activltles Purcliase of investment5 Dlsposal proceeds of Investments Purchase of property Disposal of property Net Cash (usèd Inllprovided by Investing activities 17,221,055) 6,611,489 14,748,803) 5,542,802 1415,0001 450,000 828,999 1609,5661 Chan8e in cash and cash equivalent5 in the year 1993,2001 713,604 Cash and cash equivalents at l October 2019 Cash and cash equivalents at 30 September 2020 1.896,115 902,915 1,182.511 1,896,115 NOTE Recon¢115atlon of net In¢gme to net ¢ash flow from operating activitie5 Net Ideficlt}/ Intome for the reporting period as pey the statement of financial activities 13,144,164) 554,014 Adlustments for Ilncreasell decrease in debtors Increase creditors Realised losse51 Igainsl on investment assets G8in on disposal of tangible flxed a5set5 Unrealised lossesl Igalnsl or) investment asseis 110,3741 461 715,938 11,660 9,726 151,3691 1123,9411 1515,4851 2,054,505 Net cash absorbed by operatlng actlvltles 1383,6341 1115.3951 Cash and cash equlvalents Cash at bank and on instant access deposit accounts 902,915 1,896,115 Page 14
V4lentlne Charltable Trust Notes to the financial statements For the year Ènded 30 September 2020 l Accounting Policies al Basis of preparation The account5 Ifinancial statements) have been prepared In accordance wlth the Statement of Recommended Practice.. Accounting and Reporting by Charitie5 preparing their accounts in accordance with the Financlal Reporting Standard applicable in the UK and Republic of IrelandlFRS 1021 i$5ued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charitles Act 2011 and UK Generally Accepted Practice as It applles from l January 2015. The Charlty constitutes a public benefit entity as deflned by FRSIO2. The financial statements are prepared in sterlingi which is the functional currency of the CharSty. Monetary amounts in these financlal statements are rounded to the nearest £. The financial statements have been under the h15torital c05t convention, with the exception of the Investments which are held at market value. bl Going concern At the time of approving the financial statement5, the trustees have a reasonable expectation that the Charity ha5 adequate resources to continue in operatlonal existence for the foreseeable future. Thu5 the governors Continue to adopt the goin8 concern basis of accounting in preparing the financial statements. c} Fund accounting All funds are unrestritted. Unrestricted funds are avallable for the Trustees to use in accordance with the charitable objectlves. dl Income All incoming resources are included in the statement of financlal actlvltles when the charlty is legally entitled to the Income and the amount can be quantified with reasonable accuracy. el Expenditure Resources expended are included In the statement of flnanclal actlvities on an accruals basis, inclusive of anv VAT, which cannot be recovered. Grants payable are accounted forwhen a legal orconstructive obligatlon ari5e5. A constructive obligation arises when the other party has a reasonable expectation of receipt. f) Condltlonal grants Where payment of a grant is subject to a condition which is under the control of the Trust no commitment Is recognised until the condition has been fulfilled. Where a grant is payable subject to a condStlon which is w>ot under the Trust's control, a Ilabllity15 recognised for the payment of the grant as soon as the Trust informs the recipient that the grant has been approved subject to condition. Such commitments are only reversed if and when it becomes clear that the condition will not be fulfilled. Page 15
Valentine Charitahle Trust Note5 to the financial statements For the year ended 30 September 2020 lcontlnuedl gl Tangible flxed assets and depreclatlon Tangible fixed assets comprise of freehold land and buildings and are stated at cost. h) Investments Investments ale Included at market value, a5 al the balance sheet date. Any investments where there has been a permanent diminution In value slnce the balance sheet date are included at the impaired value. Realised galns are calculated as the difference belween market value at the date of disposal ar)d market value at the prevlous balance Sheet date lor datÈ of acquisition if later). Unreallsed gains are calculated as the difference between the m¢irket value at the balance sheet date and the market value at the previous balance sheet date lor date of acquisltlon If afterl. 11 Allocation of support Costs Support costs are allocated on the basis of tlme Spent on particular actlvltles. 11 Sotlal Investments Social investments are included at C05t. kl Financial instruments The charity has financial assets and Ilabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised initially in the accounts at transaction price, Including any transaction costs. At the end of eacli accounting period, basic financial instruments are recognlsed at amortSsed cost. For debt In5trument5 this is calculated u51ng the vffeLtive Interest rale method. 11 Crltlc41 estlmate and Sudgements and key sources of estimation uncertainty In the application of the Charity's accounting policies, tlie trustees are required to make judgements, estimates and assumptions about tlie carrying amount of asseis and liabilltles that are not readily apparent from other 50urce5. The e5tSmates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the perlod of the Yevislon and future periods where the revlsSon effects both current and future perlods. Page 16
Valentine Charltable Trust Notes to the financial statements For the year ended 30 September 2020 (continued} Investment Income 2020 2019 Dividends Interest on cash deposits Other income Rental intome 802,183 84,079 16,085 7,101 1.021,166 61,220 12,952 7,973 909.448 1,103,311 3 Other Income 2020 2019 Gain on disposal of tangible fixed asset 123,941 123,941 Charitable activitie5 Grants awarded In the year 2020 2019 10 Cliristchurch Imudefordl Scout Group 1851 Marine Trust Acce55 Dorset Age Concern North Dorset AIM Communitv Alabare Homes for Veterans Dorset Alcohol Education Trust Allvel AMECA Trust IThel Andrew Simpson Sailing Foundation The Ark Child okefoTd Arts Development Company (The) Art5reach Asthma Relief Bag Book5 BCP Homelessness Aclion Collaborative Beaufort Community Association Bipolar UK Blandford Food Bank Blandford Opportunity Group Bournemouth Christians Alongside RoL*gh Sleepers Bournemouth Community Church 5,000 7,500 7,000 4,OOD 15,000 10,OOD 5,000 5,000 5,000 7,000 6,000 5,000 4,000 10,000 5,000 10,000 5,000 5,000 10,000 3,000 5,000 10.000 5,OOD 7,OOD 10,OOD 5,000 5,000 10,000 Carrlèd Forward i(x),000 90,500 Page 17
Valentine Charitable Trust Note5 to the financlal statements For the year ended 30 September 2020 Icontinuedl Grants awarded In the year Icontinuedl 2020 2019 Brought forward Bournemouth Hospital Charity 8ournemouth Nlghtclub Outreach Work Bournemouth Parks Foundation 8ournemouth Symphony Orchestra Bournemouth Town Centre Detached Youth Work Project Bourneinouth University Bourne Academy B-side Communily Inlerest Companv Bowel Cancer UK Brainwave Centre (Thel Breadllne Africa Breast Cancer Haven Bridport & District Citizens, Advice Bureau British Forces Foundation British Red Cross (Belrutl Burnbake I'rust Burngate Stone Craving Centre 81h Christchurch (Burlonl Scout Group Bus Stop Club Butterfly Con5eYvation ChanÉinE Tunes Chase Africa Chernobyl Children in Need Chesil Sailabilitv Chesll Saillng Trust Child of Hope Chrlstchurch Actlvltles for Young People Christchurch Community Partnership Limited Cltizens Advlce BCP Citizens Advice Bureau East Dorset Cltizens Advlce Bureau Purbeck Clt12èns Advlcè Cèntral Dorset Compass Learnin8 Centre Creative Klds Criminon UK Crumbs DEED DEMAND Dentai(I Divelse Abilities Plus Dorchester Arts Dorset 81ind A5s0ciatlon Dorset Childrens Foundation loo,000 io,(K)o 90,500 10,000 10,000 5,000 5,000 20,000 6,000 5,000 6,000 5,ODO 10,000 5,OOD 10,000 5,000 5,000 5,ODO 6,000 7,000 5,000 10,000 5,000 10,000 5,000 io,ooo 5,00 10,ODO 1,000 10,000 10,ODO 5,000 3,000 10,000 10,OOD 5,000 4,OOD 5,000 4,000 7,000 7,000 5,000 7,500 10,000 25,000 2,000 5,000 10,000 5,000 10,000 1,500 10,000 10,ooc> 15,OOC) 7,500 10,000 10,000 20.000 15,000 5,000 15.000 10,000 5,000 Carried Forward 368,000 312,000 Page 18
Valentlne Charltable Trust Notes to the financial st4tements For the year ended 30 September 2020 (continued Grants awarded in the year (continued 2020 2019 Brought forward Dorset Mind Dorset Natural History Museum Dorset Opera Dorset Parent & Infant Partnersliip Dorset Reading Partners Dorset Youth Associalion East Dorset Citizen's Advice Bureaux Ellen MacArthur Canr Trust Faithworks Wessex Families for Children Fearnheath Play Association Fernheath Community Sports Associatlon Fine Cell Work Footprints Project Frlends of Guys Marsh Frontier Youth Trust Game & Wildllfe Conservatlon Trust Gateway Church Poole GillinÈham CommunSty Church Goedaedacht Trust IThel IGrow Peace) Grow Peace Happy Days Children's Charity Health and Loan Food for Families The Health Bu5 Trust Home-start North Dorset Home-start West Dorset Home-start South East Dorset Honeypot Chlldren's Charity Hope Housing Training & Support Ltd Hope In the Communlty Horatio's Garden Horsecourse (The) Huntington's Disease Assoclatlon Hurting 2 Healing Immanuel United Reformed Church Independent Arts Inspire Foundation International Care Network Island Community Action Jubilee Sailing Trust The Keep Military Museum Koesiler Triisl Lewls-manning Hospi 368,000 5,000 312.000 10,000 25,000 10,000 5,000 3.ODO 10,000 10,000 10,000 10,000 10,000 12,000 20,000 5,000 20,000 5,000 10,000 5,000 3,000 10,000 5,000 20.000 10,000 15,000 5,000 10,000 15,000 5,000 5,000 5,000 5,000 4,000 5,000 5,000 15,000 10,000 5,000 10,000 5,000 10,000 10.000 5,OOD 5,000 10,OOD 5,000 10,000 5,000 8,000 4,000 5,000 15,000 15,000 10,000 5,000 10,OOD 15,OOL) 3,OOD 5,000 5,OOt) io,ooc) 30,OOQ) 20,000 Carried forward 618,000 639,000 Page 19
Valentine Charitable Trust Note5 to the financlal statements For the year ended ao September 2020 Icontinuedl Grant5 awarded In the year (¢ontlnuedl 2020 2019 Brought forward Life Education Wessex Listening Book5 Link Visiting Swanage Livability Llving Palntlngs Lyme Regis Development Trust Lyme Reg15 Philpot Museum Trust MacDougall Trust MatmSllan Cancer Support Magdalen Environmental Trust Marine Conservation Sociely MARS Trust (The) Mediation Dorset Medical Aid for Palestlnlans Michae15 l.imited Mont$ Community Hub MOSAIC MyTime Naoml House New Forest Bike Project New Opportunities for Community & Support Ombetja Yehinga Organlsation Trust Opporlunities R UnLimited Orbis Pathways for All People People First Forum Thè Phoènlx Project IIOWI Poole Communities Trust Poole Forum Poole Museum Foundation Poole Town Pastors Prama Care PramaLIFE Prisoners Abroad Purbeck Art Weeks Festival Purbeck Citizens Advice Bureau Purbeck Strings Purbeck Youth & Community Foundation Rainbow Centre React Read Easy Recoop Recovery Two 618,000 5.000 5,000 639,000 6,000 3,000 io,oao 5,000 5,000 10,000 20,000 6,000 8,1)00 5,QOO 10,000 5,000 5,000 20,000 6,000 10,000 10,000 3,000 10,000 30,000 10,000 15,000 io,aoo 5,000 15,000 io,(x)o 15,000 10,000 5,000 6,000 10,000 5,000 10,000 5,000 10,000 io,o¢)o 10,000 5,000 25,000 5,000 10,000 500 10,000 1,500 5,000 15,000 5,000 10,000 5,000 2,000 10,000 500 5,000 10,000 3,500 ID,000 5,000 5,000 500 5,000 3,500 5,000 5,000 Carried forward 877,500 904,500 Page 20
Valentine Charltable Trust Notes to the financlal statements For the year ended 30 September 2020 Icontlnuedl Grants awarded in the year Icontinuedl 2020 2019 Brought forward Revltalise Ifomierly Vitalisel RNLI Roald Dahls MeNellous Children's Charity Rotjtes to Roots SA-Yes Safe Partnership Limited Safewise Salisbury Cathedral Salisbury Hospice Charity Schoolreaders Second Chance Sedcat Shelling Special Education Trust IThel Shine Project SMILE Connecl Somerford Alliance Resource Centre Species Recovery Trust Springhead Trust St John of Jerusalem Eye Hospital Stable Famlly Home Trust Stormbreak CIO Swanage & Purbeck Development Trust swop Tall Ships Youth Trust Tax Help for Older People Tolpuddle Old Chapel Trust Tralning & Learning Company IThel Turn2us UK Salling Academy Waterfall Trust Wess@x Cancer Trust The Wheelyboat Trust Whee15 for Freedom Whlti-Kidi World Medical Fund for Children WOTS Project (Coach in Community) Yeovil H05Pltal Charity YMCA IBoLtrnemouthl Young Dorset Youth Action Group 877,500 10,000 5,000 5,000 904,500 10,000 5,000 10,000 5,000 5,000 15,000 5,000 1,000 5,000 5.000 5,000 20,000 5,000 4.000 3,000 10,000 6.000 5,000 5,OOD 5,OOD 5,000 15,000 10,000 10,000 I,ODO 20,000 10,000 3,000 10,000 5,000 10,000 10,000 4,000 5,000 10,ODO 5,000 5,000 8,000 10,000 4,000 10,000 5,000 7,500 4,0(K) S,0(K) the iO,O(K) 15,0(N) io,o(K) 6,OCM) 5,ODO Cayrled forward 1,115,000 1,058,500 Page 21
Valentine CharitableTrust Notes to the financSal statements For the year ended 30 SÈptember 2020 Icontlnuedl Grants awarded in the year Icontlnued) 2020 2019 Brought forward Youth Resources Servlces (Rendezvous Sherbornel 1,115,OOD 10,000 1,058,500 10,000 1,125,000 1,068,500 Support Costs Note 2020 2019 Administrative costs Bank audlt fee letter Professlonal fees Governance costs 41,744 30 53,823 30 450 9,fA7 9,707 51,481 63,950 Governance costs 2020 2019 Audit and advisoyy teès Truslees, indemnity insurance 8,4(K) 1,307 8,340 1,307 9,707 9,647 Staff costs Expenses of £nil were paid to the trustee5 during the year12019.' £nill. No trustees received any remuneration durlng the yèar for thelr servi5 as trusteÈ$12019: £nlll. There worè no empltsyèes In the year12019.' nlll- Tanglble flxed assets Freehold land and bulldlngs Cost: As al l October 2019 Disposals Additions 1,059,058 As at 30 September 2020 1,059,058 In the trustee's opinion the net book value of the fun¢tlon31 freehold13nd and bulldlngs is not Impaired. All the functional freehold land and buildings are used for charitable purposes. TheTrustees considerd whether it would be appropriate to Instruct a formal revaluation of thè property portfolio but did not deem it necessary at that point, but this will be kept under review, with due consideration given to material changes to market cor)ditons. Page 22
Valentine Charitable Trust Note5 to the financial statements For the year ended 30 September 2020 Icontinuedl Investments 2020 2019 Listed share porifolio Market valLFe as at l October 2019 Additions Disposal proceeds Realised Ilossesll gains on disposal Unrealised IIDssÈ%l/ galns on revaluatlon Market value as at 30 September 2020 33,632,768 7,221,055 16,611,489) 1715,9381 12,054,505) 33,859,913 4,748,803 15.542,8021 51,369 515,485 31,471,891 33,632,768 The share portfolio was valued by Charle5 Stanley and Company Limited and Investec Wealih & Investment Limited based on the mid-market price at 30 September 2020. 2020 2019 Original cost 45 at 30 September 2020 26,882,033 25,668,297 Analysls of115ted Investments 2020 2019 Fixed interest securities Unit trusts Equity shares other 5,363,315 6,607.137 16,471,464 3,029,975 5.068,475 5,989,214 19,684,415 2,890.664 31,471,891 33,632,768 Included in the listed investments above are the following individual holdin85 at 30 September 2020, whlch are considered to be material. 2020 Market ValLEe 2019 Market Value Treasury Stock 2.5% Index Linked 2024 270,773 282.045 L&G Global Inflation linked Bond Indèx C ACC 610,200 576,300 Unlisted Investments The TFU5t holds £25 ordinary £15hares in The Dorset Golf Club Broadstone Limited. These share5 were gifted to the Trust and have no cost value. Page 23
Valentine Charitable Trust Notes to the financial statement5 For the year ended 30 September 2020 Icontinuedl io Debtors 2020 2019 Social ir)vestment funding Prepayments and acciued income 412,51JO 45,198 412,500 34,824 457,698 447,324 An amount of £412,50012019'. £412,5001 included in debtors 15 due for repayment In more than one year. li Creditors 2020 2019 Amounts falling due within one yèar.. Accruals 44,114 44,114 43,653 12 Unrestricted funds Balantes l October 2019 Balances 30 September 2020 Incoming resource5 REsour¢e5 expended Loss on inve5tment5 Capllal fund Income fund 36,709,620 281,992 153,3441 11,229,825) 12,770,443 33,885,813 138,3851 909,448 36,991,612 909,448 11,283,169) 2,770,443) 33,847,448 13 Related partle5 D J E Neville-jones, a trustee, is a consultant in Preston Redman solicitors. During the year Preston Redman provided administrative seiceS amounting to £41,23812019: £53.1641 Inclusive of VAT. R A Gregory, a trustee, is also a trustee of the MacDougall Trust. Durlng the year the MacDougall Trust received a grant of £20,00012019'. £20,000) from the Valentine Charitable Trust. Page 24
Valentine Charitable Trust Note5 to the flnancial statements For the year ended 30 September 2020 IcontlnuÈdl 14 Commitmènts In addltion the Trustees have approved annual grants which are Subject and conditional to a final review before the grant5 will be paid. These Èrants are reviewed at each meetln8 and an annual update is sought on progress where appropriate. Additionally, the oveiall level of pledges is c105ely monitored each quarter to ensure sufficient funds remain available to sijpport these on-going commitments These giants have not been provided In the accounts and the aggregate value of these grants is as follows'.- 2020 2019 One off pled8es 65,000 66,000 Page 25
ValentlnÈ Charltable Trust Ntstes to the financial statements For the year ended 30 September 2020 l¢ontlnuèdl 16 statement of flnantlal actlvitles comparative information for 2019 Unrestricted capital fund 2019 Unrestricted Income fund 2019 Unrestricted funds total 2019 INCOME Investment income 1,103,311 1,103,311 other income 123,941 123,941 Total Income 123,941 1,103,311 1,227,252 EXPENDITURE Charitable activitie5 Grants awarded in the year Support costs 1,068,500 63,950 1,068,500 63,950 Cost of ralslng funds Investrnent management fees (excluding commi551onsl 53,821 53,821 107,642 Total expenditure 53,821 1,186,271 1,240,092 Realised gain on investment assets 51,369 51,369 Unreallsed galns on Investment assets 515.485 515,485 Net movement in funds 636,974 182,960 554,014 Fund balances brought forward 36,072,646 364,952 36,437,598 Fund balances carried forward 36,709,620 281,992 36,991,612 This page does not form part of the accounts on which the auditors have reported. Page 26