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2021-04-05-accounts

Charity Registration No. 1008638

MAY HEARNSHAW CHARITABLE TRUST TRUSTEES' REPORT AND UNAUDITED ACCOUNTS

FOR THE YEAR ENDED 5 APRIL 2021

MAY HEARNSHAW CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R D Law W Munro C H Ringrose M R Ward Charity number 1008638 Principal address 2 Rutland Park Sheffield S10 2PD Accountants BHP LLP 2 Rutland Park Sheffield S10 2PD Bankers Co-Operative Bank plc 84-86 West Street Sheffield S1 3SX Solicitors Lupton Fawcett Denison Till The Synergy Building Belgrave House 47 Bank Street Sheffield S1 2DR Investment advisors Investec Wealth & Investment Limited 61 Napier Street Sheffield S11 8HA Independent examiner W P Smith FCA CTA, Chartered Accountant of J S Bethell & Co 70 Clarkehouse Road Sheffield S10 2LJ

MAY HEARNSHAW CHARITABLE TRUST

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the accounts 7 - 15

MAY HEARNSHAW CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their report and accounts for the year ended 5 April 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's Deed, 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 (second edition - October 2019)

Structure, governance and management

The Trust was established by the Will of the late Mrs May Hearnshaw and continues for charitable purposes, to be applied by the Trustees at their absolute discretion, wholly or mainly for the benefit of the inhabitants of the United Kingdom.

The trustees who served during the year were: Mrs M West (Retired 15 July 2020) M J Ferreday (Retired 15 July 2020) R D Law W Munro C H Ringrose (Appointed 15 July 2020) M R Ward (Appointed 15 July 2020)

The trustees are appointed in writing by the existing Trustees.

The Trustees usually meet three times a year when they decide on and make major grants to charitable organisations but may decide to make grants at any time. They do not include in their consideration appeals received direct from individuals.

Grants authorised but not paid at the year end are included as commitments.

The principal risks to which the charity is exposed are the security and the performance of the investments and cash and the trustees are satisfied that they have arrangements in place to mitigate those risks.

Objectives and activities

It is the policy of the Trustees to support either national charities or charities working principally in the South Yorkshire, North Nottinghamshire, Derbyshire, East Lancashire and Cheshire areas.

Within the above obligations it is the policy of the Trustees to concentrate their support on the promotion of education and advancement of religion and the relief of poverty and sickness.

The trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

All trustees give their time freely and no remuneration was paid in the year. No expenses were paid to the trustees during the year.

MAY HEARNSHAW CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Financial review

The attached accounts show the current state of the Charity's finances.

Total incoming resources for the year were £73,718 (2020: £87,450).

Total resources expended for the year were £60,477 (2020: £110,851). Investment management costs were £7,142 (2020: £7,416). Grants to institutions were £43,750 (2020: £96,612). Support costs were £9,585 (2020: £6,823).

Net incoming resources for the year were £463,551 (2020: net outgoing resources £385,071). After taking into account the gain on investment assets of £450,310 (2020: loss of of £361,670), there was a gain on the unrestricted fund of £22,609 (2020: loss of £14,506) and a gain on the endowment fund of £440,942 (2020: loss of £370,565).

The trustees consider the overall finances of the Charity to be sound, there being adequate liquid funds available to cover the excess of expenditure over income on the unrestricted fund.

Reserve policy

It is the policy of the Trustees to pay out or commit to grants of the level of the annual net income after costs. Any reserves held at each year end are expected to be paid out in line with this policy.

Going Concern

There are no material uncertainties in relation to going concern. Further details about the adoption of the going concern basis are given in note 1.10 to the accounts.

Investment policy

The Trustees have unrestricted investment powers.

Most of the permanent endowment fund is held in quoted securities covering a diversified range of assets including Fixed Interest, UK and Overseas equities, Commercial Property and Alternative Investments.

The investment objective is to maximise the funds of the Charity through a mixture of the above assets, achieving a level of income commensurate to the asset mix and capital growth ahead of inflation over time. This objective should be achieved undertaking only a moderate level of risk.

The balance of the permanent endowment fund and the unrestricted income fund is held in cash on deposit at the best interest rates available.

The trustees' investments are managed by the investment advisors on an advisory basis.

Asset cover for funds

Note 12 sets out an analysis of the assets attributable to the various funds. These assets are sufficient to meet the charity's obligations on a fund by fund basis.

MAY HEARNSHAW CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Approved by the trustees and signed on their behalf by:

C H Ringrose Trustee Dated: 19 August 2021

MAY HEARNSHAW CHARITABLE TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF MAY HEARNSHAW CHARITABLE TRUST

I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2021, which are set out on pages 5 to 15.

Responsibilites and basis of report

As the charity's trustees 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 charity's accounts carried out under section 145 of the 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.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the accounts (financial statements) in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Rebublic of Ireland (FRS102) 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 since been withdrawn.

We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of

  3. 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.

W P Smith FCA CTA, Chartered Accountant of J S Bethell & Co

70 Clarkehouse Road Sheffield S10 2LJ

Dated: 19 August 2021

MAY HEARNSHAW CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2021

Unrestricted Endowment
Total
funds
funds
2021
Notes
£
£
£
Income and endowments from:
Investments
3
73,718
-
73,718
Expenditure
4
Raising funds
Investment management costs
-
7,142
7,142
Charitable activities
Relief of poverty and sickness
5
15,050
-
15,050
Other
28,700
-
28,700
Support costs
6
7,359
2,226
9,585
Total expenditure
51,109
9,368
60,477
Net Gains/(losses) on investments
-
450,310
450,310
Net income/(expenditure) - movement in funds
22,609
440,942
463,551
Reconciliation of Funds
Total funds brought forward at 6 April 2020
53,884 2,081,159 2,135,043
Total funds carried forward at 5 April
2021
76,493 2,522,101 2,598,594		 Total
2020
£
87,450
7,416
35,000
61,612
6,823
110,851
(361,670)
(385,071)
2,520,114
2,135,043

All income and expenditure amounts relate to continuing activities.

MAY HEARNSHAW CHARITABLE TRUST

BALANCE SHEET

AS AT 5 APRIL 2021

Notes
Fixed assets
Investments
10
Current assets
Cash at bank and in hand
Creditors due within one year
11
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds
Income funds
Unrestricted funds		 2021
£
£
2,527,162
75,452
75,452
(4,020)
71,432
2,598,594
2,522,101
76,493
2,598,594		 2020
Restated
£
£
2,086,280
52,579
52,579
(3,816)
48,763
2,135,043
2,081,159
53,884
2,135,043		 2020
Restated
£
£
2,086,280
52,579
52,579
(3,816)
48,763
2,135,043
2,081,159
53,884
2,135,043
2,135,043
2,081,159
53,884
2,135,043

The accounts were approved by the Trustees on 19 August 2021

C H Ringrose Trustee

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

1.1 Accounting convention

The 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements have been prepared to give a 'true and fair' view and 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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts with the Financial Reporting Standard applicaple in the UK and Republic of Ireland (FRS102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The May Hearnshaw Charitable Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the charity and rounded to the nearest £.

1.2 Income

Dividends and interest are taken into account in the year in which they are received.

1.3 Expenditure

Expenditure is included on an accruals basis inclusive of any irrecoverable VAT.

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

All governance and secretarial costs are akin to support costs under SORP 2019. All costs other than investment fees are therefore shown as support costs under charitable expenditure.

1.4 Investments

Investments are included at their market value on 5 April and the unrealised net gains or losses arising from the revaluation are recognised in the Statement of Financial Activities.

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

1.5 Fund accounting

Unrestricted Income Fund

These are the reserves which the Trustees are required to apply in accordance with the charity's objectives.

Expendable Endowment Fund

The fund was established by the Will of Mrs M Hearnshaw, on 16 January 1992.

The Trust period of 80 years is of such length that the Trustees consider the capital of the fund should be regarded as reasonably permanent and as such is shown in the financial statements as an expendable endowment fund. They may also apply any part of the capital to further the objects of the Trust.

1.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.

1.7 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of the acquisition or opening of the deposit or similar account.

1.8 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measuered at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.10 Going concern

The Trustees have considered the impact of COVID-19 on the charity's activities, taking into account the governments roadmap to recovery, and the Trustees are confident that they have in place plans to deal with any impacts that arise.

The charity has sufficient reserves to enable it to continue for the foreseeable future. Therefore, the trustees believe it is appropriate for the financial statements to be prepared on the going concern basis.

1.11 Prior year adjustment

Investments held by the charity have been reclassified from current asset investments to fixed asset investments in the prior year to better reflect the intention of the charity to hold investments long term to further its charitable objectives. This reclassification has not resulted in any change to the net assets of the charity at 5 April 2020.

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

2
3		 Prior year's statement of financial activities
Unrestricted Endowment
Total
funds
funds
2020
£
£
£
Income and endowments from:
Investments
87,450
-
87,450
Expenditure on:
Raising funds
Investment management costs
-
7,416
7,416
Charitable activities
Relief of poverty and sickness
35,000
-
35,000
Other
61,612
-
61,612
Support costs
5,344
1,479
6,823
Total expenditure
101,956
8,895
110,851
Net gains/(losses) on investments
-
(361,670)
(361,670)
Net income/(expenditure) - movement in funds
(14,506)
(370,565)
(385,071)
Reconciliation of Funds
Total funds brought forward at 6 April 2019
68,390 2,451,724 2,520,114
Total funds carried forward at 5 April
2020
53,884 2,081,159 2,135,043
Income from investments
2021
2020
£
£
Income from listed investments
73,718
87,368
Interest receivable
-
82
73,718
87,450		 Total
2020
£
87,450
7,416
35,000
61,612
6,823
110,851
(361,670)
2020
£
87,368
82
87,450

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

4 Total expenditure

Total expenditure
Raising funds
Investment management costs
Charitable activities
Relief of poverty and sickness
Other
Support costs		 Other
costs
£
7,142
-
-
9,585
16,727		 Grant
funding
£
-
15,050
28,700
-
43,750		 Total
2021
£
7,142
15,050
28,700
9,585
60,477		 Total
2020
£
7,416
35,000
61,612
6,823
110,851

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

5. Grants payable

Relief of poverty and sickness
Other
Grants to institutions relating to relief of poverty and sickness comprise:
Ashgate Hospicecare - Covid Appeal
British Liver Trust
Helen's Trust
Revive Healthy Living Centre
Spinal Muscular Atrophy UK
Treetops Hospice
Under the Stars
Alcohol Drug Service
Asperger's
Child Autism
Macmillan Cancer Support
Strong Bones Childrens Charitable Trust
Lennox Children's Cancer Fund
Sheffield Royal Society for Blind
Crohns Colitis
Mr G Sleight - Tremor operation		 2021
£
15,050
28,700
43,750
5,000
2,000
1,500
2,000
1,000
2,500
1,050
-
-
-
-
-
-
-
-
-
15,050		 2020
£
35,000
61,612
96,612
-
-
-
-
-
-
-
1,000
1,000
1,000
1,000
1,000
1,000
5,000
2,000
22,000
35,000

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Grants payable - continued
Grants to institutions relating to other comprise:
Belvoir Cricket & Countryside Trust
Caudwell Children
Centrepoint Barnsley
Clothing Solutions
Derventio Rehousing Help (Derby)
Disability Awareness Community Gym
Exodus Project (Barnsley)
High Peak Homelessness
Lincs & Notts Air Ambulance
Living Paintings - Blind Library Service
Oundle Mencap
Police Community Clubs of GB
Ruskin Mill - Brantwood Special School
Sheffield Mencap
Smallpeice Trust
Soul Roots, Methodist Church
Walton Lea Partnership
All Hallows Church, Nottingham
Barlow Church War Memorial
Flourish
Framework (Rough Sleepers)
Meadowhead Community Learning Trust (Summer School)
Meadowhead Community Learning Trust (Stem Project)
Nottingham Historic Church Trust
Premier Learning
Rehouse to Rehome
Runabout (Tangent)
Sheffield Mencap
Sheffield Steel Kings
Stocksbridge Community Care
Woodland Trust
Countryside Alliance for Meadowhead School
FareShare Yorkshire
Firth Park Methodist Church
Nenna Kind
Sea Cadets Workington
Snowdrop Project
St Wilfreds Centre
Whirlow Hall Farm
Ruskin Mill Yorkshire Ambulance Service
Barlow Church of England Primary School		 2021
£
1,000
1,000
2,500
1,500
1,000
1,000
600
1,000
5,000
1,000
2,500
2,400
2,000
1,000
2,000
3,000
1,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,300)
-
-
-
-
-
-
-
-
-
28,700		 2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000
5,000
1,000
2,000
2,000
2,500
2,000
1,000
2,000
500
2,000
3,000
1,000
2,000
1,300
2,000
2,000
2,000
5,000
2,000
10,500
3,000
812
2,000
61,612

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

6 Support costs

Support costs
Accountancy charges - income
Independent examination charges
Bank charges
Grave upkeep and maintenance
Accountancy charges - capital		 2021
£
6,678
600
81
-
2,226
9,585		 2020
£
4,437
600
137
170
1,479
6,823

7 Trustees

Mr C H Ringrose is a partner with BHP LLP. No charges are made for his services. BHP LLP act as accountants to the Charity, charging fees as detailed in the accounts.

Subject to the foregoing no reimbursement of expenses is paid, directly or indirectly, to any Trustee or person or persons known to be connected with any of them.

8 Employees

There were no employees during either year.

9 Taxation

The charity is considered to pass the tests set out in Schedule 6, paragraph 1 of the Finance Act 2010 and therefore meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received with in categories covered by the Income Tax Act 2007, Part 10 S521 - S537 or S256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

10 Fixed asset investments

Fixed asset investments
Unrestricted Endowment Total
fund fund
Listed investments £ £ £
Market value at 6 April 2020 - 2,078,872 2,078,872
Disposals at opening book value - (209,529) (209,529)
Acquisitions at cost 4,206 232,853 237,059
Change in value in the year - 422,137 422,137
Market value at 5 April 2021 4,206 2,524,333 2,528,539
Investment cash - (1,377) (1,377)
At 5 April 2021 4,206 2,522,956 2,527,162
Historical cost:
At 5 April 2021 4,206 1,774,472 1,778,678
At 5 April 2020 - 1,709,568 1,709,568

The value of the holding Blackrock AM UK Charinco is 14.38% of the total value of the investments.

11
Creditors: amounts falling due within one year
Independent Examination charges
Accountancy charges		 2021
£
600
3,420
4,020		 2020
£
600
3,216
3,816

MAY HEARNSHAW CHARITABLE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

12
Analysis of net assets between funds
Unrestricted
funds
Endowment
funds
£
£
Fund balances at 5 April 2021 are represented by:
Fixed asset investments
4,206
2,522,956
Current assets
75,452
-
Creditors due within one year
(3,165)
(855)
76,493
2,522,101
Fund balances at 5 April 2020 are represented by -
as restated:
Fixed asset investments
4,317
2,081,963
Current assets
52,579
-
Creditors due within one year
(3,012)
(804)
53,884
2,081,159
Unrealised gains included in the 2021 balances
On investments
-
749,861
-
749,861
Reconciliation of movements in unrealised gains
Unrealised gains at 6 April 2020
-
369,304
In respect of disposals in year
-
(45,786)
-
323,518
Net gains on revaluations in year
-
426,343
Unrealised gains at 5 April 2021
-
749,861		 Total
£
2,527,162
75,452
(4,020)		 Total
£
2,527,162
75,452
(4,020)		 Total
£
2,527,162
75,452
(4,020)
2,598,594
2,086,280
52,579
(3,816)
2,135,043
749,861
749,861
369,304
(45,786)
323,518
426,343
749,861