Registered Charity number: 1003690
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
TRUSTEES’ REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Charity Information | 1 |
| Trustees’ Report | 2 |
| Independent Examiner’s Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Statement of Cash Flows | 8 |
| Notes to the Financial Statements | 9 |
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST CHARITY INFORMATION
| Trustees: | M. Ensoll | |
|---|---|---|
| A. Reynolds | ||
| P. Carey | (appointed 27/2/2023) | |
| C. Lingham | (appointed 31/5/2023) | |
| A. Perrett | (resigned 27/2/2023) | |
| W. Wass | (resigned 27/2/2023) | |
| Registered Charity number: | 1003690 | |
| Principal Address: | Lower Ellenden Farm | |
| Water Lane | ||
| Hawkhurst | ||
| Kent | ||
| TN17 4LG | ||
| Independent Examiner | J P Healey FCA | |
| Lindeyer Francis Ferguson Limited | ||
| Chartered Accountants | ||
| North House | ||
| 198 High Street | ||
| Tonbridge | ||
| Kent TN9 1BE | ||
| Bankers: | Metro Bank | |
| 10 Week Street | ||
| Maidstone | ||
| ME14 1RN | ||
| Investment Advisers: | Atrium Wealth Management | |
| 5 Longbrooks | ||
| Knowle Road | ||
| Brenchley | ||
| Tonbridge | ||
| Kent TN12 7D |
1
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2023
The Trustees presents their annual report together with the financial statements of The Congelow Organic Educational Charitable Trust (“Congelow” or “the Trust”) for the year ended 5 April 2023. The Trustees confirm that the annual report and financial statements of the Trust comply with the current statutory requirements, the requirements of the governing document and the provisions of “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)” (effective 1 January 2019) (Charities SORP (FRS 102)).
The information set out on page 1 forms part of this report.
Structure, governance and management
The Congelow Organic Educational Charitable Trust was formed on 3 July 1991. The Trust is registered with the Charity Commission (No. 1003690) and is constituted by deed of trust, which is its governing document.
The Trust is administered by its Trustees, listed on page 1 of this report.
The power of appointing new Trustees of the Trust is vested in the Founder (as defined in the Deed of Trust), now deceased, and the continuing Trustees. New Trustees may be appointed at any time, by replacement or addition, to a maximum total number of Trustees of eight.
Trustees are recruited when the existing Trustees believe that the Board requires additional skills, using the professional contacts of the existing Trustees. Trustees are not formally trained but are inducted by being given a brief history of the Trust and its current aims and activities, and are referred to the Charity Commission guidance “The Essential Trustee”.
Objectives and activities
The deed of trust directs the Trustees to apply the income and capital of the Trust for any charitable purpose and, without prejudice to the generality of the foregoing, to the advancement of the education of the public in the principles of sustainable farming and growing.
The Trust’s main aims are currently to promote the education of the public in agriculture, and the strategy for achieving those aims is the giving of grants to suitable recipients, with a focus on those who are local to the Trust or those who work with vulnerable children. Grant-making is therefore currently the only significant charitable activity. Success is measured by receiving reports from grantees and qualitatively assessing the impact of the funding provided.
The Trustees have had due regard to guidance on public benefit published by the Charity Commission in section 17 of the Charities Act 2011 in selecting the Trust’s activities.
Achievements and performance
During the period, the Trust made grants totalling £14,000 (2022: £6,500) to suitable recipients. These were made to Dandelion Time - £4,000 and Medway Valley Project - £10,000
The Trustees meet regularly to consider the making and monitoring of grants and are satisfied that the grants made during the period have made a meaningful difference to the Trust’s beneficiaries. They have therefore achieved the current aims.
The Trustees continue to meet on a regular basis, to ensure that a suitable proportion of the Trust income is awarded in grants or gifts to other charities.
2
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2023
Financial review and reserves policy
During the period the Trust reported a deficit of £30,128 (2022: surplus of £630,782). The surplus in the prior year arose as a result of legacy income.
At the balance sheet date, the Trust’s total unrestricted reserves were £2,929,225 (2022: £2,959,353). The free reserves (that is, unrestricted reserves excluding those represented by illiquid investment property and unlisted investments) were £996,725 (2022: £1,026,853).
The Trustees consider it prudent to hold free reserves in the region of £50,000 - £100,000 to cover at least one year’s expenditure and allow for potential unforeseen maintenance cost of the land and property, in case of unforeseen circumstances. The Trustees are currently considering the use of the remaining free reserves in line with the Trust’s aims.
Investment policy
The Trust owns investment property (one residential property and various parcels of farmland) and also a portfolio of listed investments.
The residential property is currently commercially let to generate funds for the Trust’s activities. The Trustees have let the farmland to new entrants into the industry on a 10 year FBT. The new Tenants are under 30 years old.
The listed investments are managed by an external financial adviser and takes a low risk approach in order to protect the Trust’s capital. The Trustees are satisfied with the performance in the year.
Principal risks and uncertainties
The Trustees have considered the principal risks and uncertainties to which the Trust is currently exposed. These are considered to be as follows:
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Governance: The Trustees continually assess the risks and uncertainties that they are exposed to.
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Financial: The Trust is in a strong financial position. The Trustees are aware of the risks involved in investing in securities. The risk is managed by adopting a low risk approach and taking the advice of external advisers.
Plans for future periods
Following the receipt of the land and with the residuary legacy in mind, the Trustees are currently in discussions over the Trust’s future aims and activities. The Trustees wish to keep the advancement of education at the forefront of the Trust’s plans. The Trustees are continually looking at options to optimise the income that the Trust derives from its assets.
3
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2023
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustee’s 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 & 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 Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Trust’s transactions and disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Board of Trustees on 5 February 2024 and signed on its behalf by:
A. Reynolds Trustee
4
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2023
I report to the Trustees on my examination of the accounts of the Congelow Organic Educational Charitable Trust (the Trust) for the year ended 5 April 2023.
Responsibilities and basis of report
As the charity Trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independence
Lindeyer Francis Ferguson Limited also provides bookkeeping services to the charity. The FRC’s Revised Ethical Standard has been applied. The partner responsible for the bookkeeping services has no involvement in the independent examination.
Independent examiner’s statement
I have completed my examination. I 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:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable 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.
I 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.
Date: 5 February 2024
J P Healey FCA
Lindeyer Francis Ferguson Limited Chartered Accountants North House, 198 High Street Tonbridge Kent TN9 1BE
5
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023
| Note Income from: Legacies Investments: Interest Dividends Rental income Total income Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Net (losses) / gains on investments 6 Net (expenditure) / income and net movement in funds Reconciliation of funds: Unrestricted funds brought forward Unrestricted funds carried forward |
2023 Total funds £ - 2,642 1,038 29,742 33,422 10,350 30,640 40,990 ( 22,560) ( 30,128) 2,959,353 2,929,225 |
2022 Total funds £ 636,626 1,483 992 16,692 |
|---|---|---|
| 655,793 | ||
| 14,414 14,485 |
||
| 28,899 | ||
| 3,888 630,782 |
||
| 2,328,571 | ||
| 2,959,353 |
There were no restricted or endowment funds in the current or prior period.
6
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
BALANCE SHEET AS AT 5 APRIL 2023
| Note Fixed assets Investment property 8 Listed investments 9 Unlisted investments Current assets Debtors 10 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 11 Net current assets Total net assets The funds of the charity Unrestricted funds General funds |
2023 Total funds £ 49,963 700,513 750,476 ( 18,195) |
2023 Total funds £ 1,932,000 264,444 500 2,196,944 732,281 2,929,225 2,929,225 2,929,225 |
2022 Total funds £ 637,264 110,649 747,913 ( 6,546) |
2022 Total funds £ 1,932,000 285,486 500 |
|---|---|---|---|---|
| 2,217,986 741,367 |
||||
| 2,959,353 | ||||
| 2,959,353 | ||||
| 2,959,353 |
The financial statements were approved by the Board of Trustees on 5 February 2024 and signed on their behalf by:
A. Reynolds Trustee
7
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2023
| Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Dividend, interest and rents from investments Proceeds from the sale of listed investments Purchase of listed investments Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period A. Net cash provided by / (used in) operating activities Net (expenditure) / income for the period as per the Statement of Financial Activities Adjustments for: Non-cash legacies Gains / (losses) on investments Dividend, interest and rents from investments Decrease / (increase) in debtors Increase in creditors Net cash used in operating activities |
2023 Total funds £ 557,959 33,422 56,976 ( 58,494) 31,904 589,863 110,649 700,512 ( 30,128) - 22,560 ( 33,422) 587,301 11,648 557,959 |
2022 Total funds £ ( 28,146) 19,167 117,157 ( 109,169) |
|---|---|---|
| 27,155 ( 991) 111,640 |
||
| 110,649 | ||
| 630,782 ( 636,626) ( 3,888) ( 19,167) ( 213) 966 |
||
| ( 28,146) |
8
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
1 Status
The Congelow Organic Educational Charitable Trust is a charitable trust registered in England and Wales governed by its Trust Deed dated 3 July 1991. The principal address is Lower Ellenden Farm, Water Lane, Hawkhurst, Kent, TN17 4LG.
2 Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
2.1 Basis of preparation
These financial statements have been prepared in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (Effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Congelow Organic Educational Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The financial statements are presented in pounds sterling and rounded to the nearest pound.
There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted.
2.2 Income
Income from legacies is recognised when there has been a grant of probate, the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy, any conditions attaching to the legacy are either within the control of the charity or have been met, and the amount of any residuary legacy can be estimated reliably.
Rental income is recognised in the period to which it relates. Interest income is recognised when receivable and dividends are recognised on receipt.
2.3 Expenditure
Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably. All expenditure is accounted for on an accruals basis.
Expenditure has been classified under headings that aggregate all costs related to the category.
Support costs have been allocated to raising funds and charitable activities pro rata based on the direct costs incurred by those activities.
2.4 Investment property
Investment property is property held to generate rental income where the use of the property is outside the charity's objectives. It is stated in the balance sheet at fair value. Fair value gains or losses are recognised in the Statement of Financial Activities.
9
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
2 Accounting policies continued
2.5 Listed investments
Listed investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Fair value gains or losses are recognised in the Statement of Financial Activities.
2.6 Financial Instruments
The charity only has financial instruments of a kind that qualify as basic financial instruments. Short term debtors, prepayments and creditors are measured at their settlement value.
2.7 Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
3 Expenditure on raising funds
| Direct rental costs Investment management fees Allocation of support costs (Note 5) |
2023 £ 1,320 3,409 4,729 5,621 10,350 |
2022 £ 2,643 3,825 |
|---|---|---|
| 6,468 7,946 |
||
| 14,414 |
4 Expenditure on charitable activities
| Grants payable: Nexus School Dandelion Time Medway Valley Project Allocation of support costs (Note 5) |
2023 £ - 4,000 10,000 14,000 16,640 30,640 |
2022 £ 2,500 4,000 - |
|---|---|---|
| 6,500 7,985 |
||
| 14,485 |
10
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
5 Support costs
| Bank charges Bookkeeping fees Governance costs: Legal and professional fees Independent examination fees Other accountancy fees paid to independent examiner 6 Net (losses) / gains on investments Realised gains on listed investments Fair value adjustments on listed investments |
2023 £ 29 1,488 17,564 2,460 720 22,261 2023 £ ( 4,945) ( 17,615) ( 22,560) |
2022 £ 23 1,464 9,584 2,460 2,400 |
|---|---|---|
| 15,931 | ||
| 2022 £ 9,724 ( 5,836) |
||
| 3,888 |
7 Employees
The charity did not have any employees during the period.
8 Investment property
| Investment property Fair value at 6 April 2022 Additions Change in fair value Fair value at 5 April 2023 |
£ 1,932,000 - - |
| 1,932,000 |
The investment property was valued by an independent Chartered Surveyor as at 5 April 2021, and the trustees believe that this remains the fair value as at 5 April 2023.
9 Listed investments
| Fair value at 6 April 2022 Additions at cost Disposals at carrying value Change in fair value Fair value at 5 April 2023 |
2023 £ 285,486 58,494 ( 61,921) ( 17,615) 264,444 |
2022 £ 289,586 109,169 ( 107,433) ( 5,836) |
|---|---|---|
| 285,486 |
11
THE CONGELOW ORGANIC EDUCATIONAL CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023
10 Debtors
| Debtors | ||
|---|---|---|
| Rent receivable Accrued legacy income Creditors: amounts falling due within one year Accruals Deferred rental income Grants payable |
2023 £ - 49,963 49,963 2023 £ 3,132 1,063 14,000 18,195 |
2022 £ 638 636,626 |
| 637,264 | ||
| 2022 £ 6,546 - - |
||
| 6,546 |
11 Creditors: amounts falling due within one year
12 Related party transactions
The key management personnel of the charity are considered to be the Trustees. The Trustees did not receive any remuneration, benefits or reimbursed expenses during the period.
There have been no related party transactions in the period that require disclosure.
13 Post balance sheet events
In August 2023, the charity was advised of, and subsequently received, a further £100,000 from a residuary legacy. £49,963 of this balance has been accrued for in these financial statements, and the remaining balance will be recognised as income in the financial statements to 5 April 2024.
12