Charity registration number: 1003592
Francon Trust
Annual Report and Financial Statements for the Year Ended 31 July 2023
LA WESTCOTTS CHARTERED ACCOUNTANTS & BUSINESS ADVISERS
Francon Trust
Contents (continued)
| Trustees’ Report | 1to5 |
|---|---|
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| NotestotheFinancialStatements | 9to15 |
Francon Trust
Trustees’ Report
The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 July 2023.
| Registered charity name | Francon Trust | ||
|---|---|---|---|
| Registered charity number | 1003592 | ||
| Principal Office | 42 Eafield Avenue | ||
| Milnrow | |||
| Rochdale | |||
| OL16 3UN | |||
| TheTrustees | MrTNemko | Managing Trustee&Treasurer | |
| Mr P Allcard | |||
| Prof. J L Herzberg | |||
| Mrs AE Holden | |||
| MrsAM Jefferys | |||
| Company Secretary | Mrs J Taylor-Holmes | ||
| : | |||
| Accountants | Westcotts | ||
| Chartered Accountants | |||
| Timberly | |||
| South Street | |||
| Axminster | |||
| Devon | |||
| EX135AD |
Page 1
Francon Trust
Trustees’ Report (continued)
Structure, Governance and Management
Constitution
The Charity is governed by a trust deed dated 1 July 1991 and is an unincorporated registered charity.
Organisational structure and decision making process
There shall be a minimum of three and a maximum of seven Trustees. Presently, there are five.
The Trustees are selected through their association with the Court of Assistants of the Guild of Freemen of the City of London. No Trustee shall be appointed who is not a Member or Honorary Member of the Court of Assistants of the Guild of Freemen of the City of London.
The Trustees for the time being are responsible for the induction and training of Trustees.
All decisions are taken by the Trustees jointly. The day to day administration is undertaken by the
Company Secretary under the direction of the Managing Trustee; appointed by the Trustees.
The Trustees’ policy is to minimise risks. There are no cash transactions.
In November 2017, online banking was introduced. All transactions during the period were paid through the online banking facility. Payments are made as decided by Trustees. Four of the Trustees and the Company Secretary are registered for online banking. Any two of the following; Trustees registered and the Company Secretary is required to authorise transactions on behalf of the Trust.
Should a cheque payment be made, they are made on the following basis;
The cheque books are held by the Company Secretary and cheques written as decided by the Trustees, and recorded in the Minutes. Two Trustees sign any cheque after which these are despatched by the Company Secretary. A minimum of two Trustees are required to authorise transactions on behalf of the Trust.
The detailed accounting records are provided for the Trustees.
Risk Factors
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.
Page 2
Francon Trust
Trustees’ Report (continued)
Aims and Objectives
. The advancement of public education and vocational training in particular by the provision of grants to students in need.
- — The relief of poverty, sickness and distress amongst students in need.
The objectives are achieved based upon guidelines established during the early years of operation in accordance with the wishes of the original benefactors.
Potential students for first degree courses are selected in accordance with the guidelines, based upon applications and recommendations from head teachers or other referees in support of high achieving students who have limited financial means.
Potential students are identified by contact with head teachers or school representatives and then, after due application, are interviewed (where possible) by the trustees to decide those that should receive support.
Public Benefit
The Trustees have had regard to the Charity Commission guidance on Public Benefit.
The Trustees have the view that the principles of public benefit are clearly met by the Francon Trust in that its principal objective is to provide financial benefits for gifted, but financially challenged, students to achieve good University Degrees. Selection is solely by merit and educational references. Student results to date have been impressive.
Achievements and Performance
The financial base was provided by donations and bequests from the founding Trustees (Frank and Connie Welts). These funds are now invested and the objective is to support as many students as possible year by year whilst maintaining the financial base to enable the Trust to continue in perpetuity.
The Trustees aim to support three or more additional students each year. During 2022/23 nine Students were supported (although one student grant was paused due to work placement), (2021/22:9)
During the year, the charity awarded grants totalling £24,000 (2021/22: £27,000) to give educational, welfare and social support to selected students in London.
Academic results of the students supported so far have been very good. Trustees review students’ progress, academically, extramurally and financially each term.
There are no fundraising activities and none are envisaged.
Page 3
Francon Trust
Trustees’ Report (continued)
Financial Review
Investment Policy
Investment performance is reviewed quarterly; investments have been made progressively, and cautiously, part of the bequest is held in cash at bank and Investments which are managed by a professional investment company. Twice yearly, in person meetings are held with the investment company to receive updates.
Factors outside the Trust's control that are relevant to the Trust's long term objectives are investment income and inflation that determine the amount available for distribution.
Factors within the Trust's control are the selection of students and the financial support levels decided upon, based upon cash flow forecasts that are reviewed by the Trustees regularly.
Reserves Policy
Reserve levels are established with a view to paying out the maximum amount in grants from investment income, after allowing for inflation and the volatility of the investment income. The number of students supported fluctuates depending on the length of course being undertaken by the students.
As at 31 July 2023, the charity held reserves of £1,346,396 which exceeds the actual firm forward commitment for 2023/24 of £33,000.
There are no uncertainties about the charity continuing as a going concern.
Investments continue to be professionally managed, the rate of interest paid on cash deposits is very low. All the income available after making provision to maintain the financial base will be expended in grants, but a cautious approach is being taken.
The only future funding source will be investment income. Expenditure to date has most successfully supported the Trust's aims and objectives.
All funds are unrestricted.
Page 4
Francon Trust
Trustees’ Report (continued)
Plans for the future
The plans for the future are to maintain the investment income, taking account of the need to make allowance for inflation and market movements in interest rates and capital, with a view to making grants equal to the remaining annual income.
Regular meetings are held, and papers are circulated to allow the Trustees to take decisions to achieve the Trust's aims and objectives. The[;trustees’] ,[annual][report][was][approved][on..).J\LJ.4¢°¢3.and] WU) 2028 ana[signed] si[on][behalf][of][the][Board][of] Trugtees by Mrs Jane Taylor-Holmes
Company Secretary
Page 5
Francon Trust
Independent Examiner's Report to the trustees of Francon Trust
| report to the trustees on my examination of the accounts of Francon Trust for the year ended 31 July 2023.
Responsibilities and basis of report
As the charity trustees of Francon Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
| report in respect of my examination of the Francon Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
| have completed my examination. | confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of Francon Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
| have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
a ea
af_--— Stuart Carrington FCA Independent Examiner Westcotts (SW) LLP Timberly South Street Axminster Devon EX13 5AD .
patel eblet, =
Page 6
!
Francon Trust
Statement of Financial Activities for the Year Ended 31 July 2023
| Unrestricted | Total | Total | ||
|---|---|---|---|---|
| funds | 2023 | 2022 | ||
| Note | £ | £ | £ | |
| Income and Endowments from: | ||||
| Investment income | 2 | 31,453 | 31,453 | 30,563 |
| Total income | 31,453 | 31,453 | 30,563 | |
| Expenditure on: | ||||
| Raisingfunds Charitable activities |
3.1 4 |
(12,386) (29,277) |
(12,386) (29,277) |
(13,535) (32,920) |
| Total expenditure Gains/(losses) on investmentassets |
(41,663) (18,462) |
(41,663) (18,462) |
(46,455) (64,362) |
|
| Netexpenditure | (28,672) | (28,672) | (80,254) | |
| Netmovement infunds | (28,672) | (28,672) | (80,254) | |
| Reconciliation offunds | ||||
| Total funds brought forward | 1,375,068 | 1,375,068 | 1,455,322 | |
| Totalfundscarriedforward | 11 | 1,346,396 | 1,346,396 | 1,375,068 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 11.
The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
Francon Trust
(Registration number: 1003592) Balance Sheet as at 31 July 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Current assets | |||
| Investments | 1,327,657 | 1,367,081 | |
| Cash at bank and in hand | 19,912 | 9,047 | |
| 1,347,569 | 1,376,128 | ||
| Creditors: Amounts falling duewithin oneyear | 10 | (1,173) | (1,060) |
| Netassets | 1,346,396 | 1,375,068 | |
| Funds ofthe charity: | |||
| Unrestricted income funds | |||
| Unrestricted funds | 1,346,396 | 1,375,068 | |
| Totalfunds | 11 | 1,346,396 | 1,375,068 |
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on i.1)}.|..@2 and signed on their behalf by: Terry Nemko _ Managing Trustee and Treasarer
The notes on pages 9 to 15 form an integral part of these financial statements. Page 8
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023
1 Accounting policies
General information
The charity is a public benefit entity and a registered charity in England and Wales and js unincorporated. The address of the principal office 42 Eafield Avenue, Minrow, Rochdale, OL16 3UN.
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Francon Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclasure exemptions available under paragraph 1.12 of FRS 102: - No cash flow statement has been presented for the company.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured retiably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Page 9
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Governance costs
These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Current asset investments
Current asset investments are included at the lower of cost and net realisable value / market value.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Page 10
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
Financial instruments Classification Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction casts), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Debt instruments
Debt instruments are subsequently measured at amortised cost.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 11
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
2 Investment income
| Unrestricted Funds |
Total 2023 |
Unrestricted Funds |
Total 2022 |
|
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Incomefrom investments | 31,424 | 31,424 | 30,562 | 30,562 |
| Bank interest receivable | 29 | 29 | 1 | 1 |
| 31,453 | 31,453 | 30,563 | 30,563 |
3 Expenditure on raising funds
a) Investment management costs
| Unrestricted Funds |
Total 2023 |
Unrestricted Funds |
Total 2022 |
|||
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | |||
| Investment | management | fees | 12,386 | 12,386 | 13,535 | 13,535 |
| 12,386 | 12,386 | 13,535 | 13,535 |
Page 12
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
4 Expenditure on charitable activities
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|Unrestricted|Total|Unrestricted|Total|
|Funds|2023|Funds|2022|
|£|£|£|£|
|Grants|to|students|24,000|24,000|28,000|28,000|
|Support costs|5,277|5,277|4,920|4,920|
|29,277|29,277|32,920|32,920|
----- End of picture text -----
5 Analysis of governance and support costs
----- Start of picture text -----
||||||
|---|---|---|---|---|
|Support|costs|
|Unrestricted|Total|Total|
|Funds|2023|2022|
|£|£|£|
|Governance|costs|1,266|1,266|1,174|
|Administrative|costs|4,011|4,011|3,746|
|5,277|5,277|4,920|
----- End of picture text -----
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year (2022 - ENil).
7 Staff costs
No salaries or wages have been paid to trustees during the year (2022 - ENil).
The Trust had no employees in either 2021/22 or 2020/21.
One self-employed Company Secretary was with the Trust part time throughout the year.
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|8|Independent|examiner's|remuneration|
|2023|2022|
|£|£|
|Fees|payable|to|the|independent|examiner|for:|
|Independent|examination|of the|financial|statements|1,266|1,174|
----- End of picture text -----
Page 13
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
9 Taxation
The charity is a registered charity and is therefore exempt from taxation.
10 Creditors: amounts falling due within one year
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Accruals | 1,173 | 1,060 | |||
| 11 Funds | |||||
| Balance at | Balance at | ||||
| 1 August 2022 |
Incoming resources |
Resources expended |
Gains/ (losses) |
31 July 2023 |
|
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General | 1,375,068 | 31,453 | (41,663) | (18,462) | 1,346,396 |
| Balance at | Balance at | ||||
| 1 August | Incoming | Resources | Gains/ | 31 July | |
| 2021 | resources | expended | (losses) | 2022 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General | 1,455,322 | 30,563 | (46,455) | (64,362) | —1,375,068 |
Page 14
Francon Trust
Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)
12 Analysis of net assets between funds
| 12 Analysis of net assets between funds | ||
|---|---|---|
| Unrestricted | Totalfunds | |
| funds General |
at 31 July 2023 |
|
| £ | £ | |
| Current asset investments | 1,327 657 | 1,327,657 |
| Cash and short-term deposits | 19,912 | 19,912 |
| Current liabilities | (1,173) | (1A73) |
| Total net assets | 1,346,396 | 1,346,396 |
| Unrestricted | Totalfunds | |
| funds | at 31 July | |
| General | 2022 | |
| £ | £ | |
| Current asset investments | 1,367,081 | 1,367,081 |
| Cash and short-term deposits | 9,047 | 9,047 |
| Current liabilities | (1,060) | (1,060) |
| Totalnetassets | 1,375,068 | 1,375,068 |
13 Related party transactions
There were no related party transactions in the year (2022 - £Nil).
Page 15