Charlty number: 1008914 R G HILLS CHARITABLE TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
R G HILLS CHARITABLE TRUST CONTENTS Page Reference and administrative details of the charity, its trustees and adv¥sers Trustees, report Independent audltors, report Statement of financial activities 10 Balance sheet Statement of cash flow3 12 Notes to the financial statements 13-25
R G HILLS CHARITABLE TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees Mr K Jones, Chainnan Mr H M S Barrett. Trustee Charity registered number 1008914 Princlpal office 3940 St. Margaret's Street, Cantert)ury, Kent, CT12TX Auditors Pure Audit Limited, 76 Canterbury Innovation Centre, University Road, Canterbury, Kent, CT2 7FG Bankers CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ Solicitors Furley Page, 3940 St. Margaret's Street, Canterbury, Kent, CT12TX Investment Advisers Brooks Macdonald Asset Management Ltd, 6 Vale Avenue, Tunbridge Wells , Kent, TN11DJ Page 1
R G HILLS CHARITABLE TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Board of Trustees presents its report and the audited financial statemenls for the ended 31 March 2024. The Trustees confirm that the annual report and financial statemenls of the Charity comply with Current statutory requirements, the requirements of Ihe Charity's governing document, the provisions of Ihe Stalement of Recommended Practice (Second edition) and Financial Reporting Standard FRS102. Objectives and Activities The charity was formed to apply its income in whole or in part towards the furtherance of such charitable purposes as the Trustees shall from time to lime think fit. Various donations have been made, or are currently being considered, by the Trustees for both national and local charities, some of which are engaged in overseas charitable work. As there are so many applications received by the charity for donations, to keep expenditure to a minimum, replies are normally only sent to successful applicants. PUBLIC BENEFIT The Trustees have only supported charities registered with the Charity Commission or have similar status after having Carefully considered the merits or otherwise of specific requests. These are mainly, but not exclusively, charities concerned with health, poverty and education issues which are engaged in activities for the public benefit. Reference is made to the general and financial information about a charity applying for funds available on the Charity Commission website and other publications in addition to information provided by the applicant. By adopting this structured approach, the Trustees consider they have fully complied with the Charities Act 2011 to have due regard to the guidance on public benefit published by the Commission in exercising their powers or duties. Achievements and performance REVIEW OF ACTIVITIES The Trustees are pleased to be able to report that they were able lo distribute £124,110 (2023.. £120,000) to various charities. After distributing this sum and paying expenses, there was an increase in the Unrestricted Funds account surplus of £975 for the year to £118,811 (2023.. Surplus increase of £15,874). There were realised and unrealised loss of £194,960 {2023: Loss £246,409). INVESTMENT POLICY AND PERFORMANCE The market value of investments, including cash, at year end was £4,288,088 {2023: £4,149,572). To stay abreast of the conlinuously fluctuating markels and ensure security and returns on investments, updates are regularly received from the investment managers with meetings where appropriate, lo monitor performance and to discuss any amendments to strategy. Trustees have dislributed over £4 million to various charities and the conlinued distributions from the R G Hills Charitable Trust are a lasting tribute to Mr R G Hills and Mrs. Hills benevolence. The Trust does nol actively fundraise and seeks to continue the philanthropic work desired by Mrs. Hills through the careful stewardship of Its existing resources. Financial review Page 2
R G HILLS CHARITABLE TRUST TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024 GOING CONCERN Accounting standards require the Trustees to consider the approprialeness of the going concern basis when preparing the financial slatemenls. After making appropriate enquiries, the Trustees have a reasonable expectation that Ihe charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they Continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of Ihe going concern basis can be found in the Accounting Policies. RESERVES POLICY The tolal reseNes at the year end were £4,455,010 (2023.. £4,275,235). The split of these being unrestricled £118,811 (2023.. £117,836) and permanent endowment of £4,336,199 {2023'. £4,157,399). The permanent endowment funds are mainly investments which are held to earn income from which donations can be distributed in accordance with the objectives of the charity. These funds are, therefore, excluded from the reserves policy. The Trustees review annually the policy regarding unreslricted funds which amounted to £118,811 at the end of year. They have decided there is a need for the Trustees to retain sufficient funds to meet any.. accrued and future management costs which cannot be met from existing funds due to an unexpected fall in investment income. temporary cash flow shortages when donations are made in advance of investment income being received. exceptional expenditure, for example, to fund an opportunity that is too good to be missed as it will allow the Trustees to deliver their mission in a more effective or comprehensive way. The Trustees have concluded the larget level of reserves should be in the region of £30,000 to £40,000. Structure, governance and management CONSTITUTION The Trust is an unincorporated trust, constituted under a Trust deed dated 16 December 1982 and is a registered charity. numbered 1008914. The Trust was originally created by Mrs E M Hills on this date for a consideration of £1. It remained dormant until 31 March 1996, at which date there was an approprialion of assets amounting to £2,204,260 from the estate of Mr R G Hills and Mrs E M Hills. This represented the grealer part of three quarters of the residue of their estate which she left to the Trust. The balance of this entitlement of £161,485 was received by the Trust in bNO payments in January 1998 and June 1999. A further £7,062 was added in 2003 when the Mrs E M Hills Charitable Trust ceased its operations. In addition, Mr and Mrs Hills left the net sum of £130,256 after inheritance tax on a separate life interest trust. The life tenant died on 1 December 2017 and £201,549 was subsequently transferred to the R G Hills Charitable Trust. This has been included in the Permanent Endowment. The Trust deed confers wide ranging powers of investment upon the Truslees. Since the death of Mrs. Hills, the Truslees have dislributed over £4 million to various charities and Ihe continued distributions from the R G Hills Charitable Trust are a lasting tribute to Mrs. Hills benevolence. The Trust does not actively fundraise and seeks to continue the philanthropic work desired by Mr R G Hills and Mrs. Hills through the careful stewardship of its existing resources. Page 3
R G HILLS CHARITABLE TRUST TRUSTEES, REPORT Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES The management of the charity is the responsibility of the Trustees who are elected and co opted under the terms of the Trust deed. The current Trustees appointed are Mr. K Jones, a chartered accountant, and Mr. H M S Barrett, a solicitor and consultant with Tassells LLP. The appointment of new Trustees is governed by section 36, Trustee Acl 1925 and can only be exercised by the continuing or surviving Trustees, or the personal representative of the last continuing or suNiving Trustee. When considering a new appointment, the Trustees have regard to any necessary skills needed and to provide necessary academic, professional and commercial knowledge relevant to the charity's activities. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES New Trustees, unless legally or financially and professionally qualified, will undergo an orientation day to brief them on Gharity law. They will receive a copy of the governing Trust deed, instruction on the decision making process, copies of the last three years, Trustee reports and financial stalements, Ihe current financial performance of the charity and the website reference of the Charity Commission's guidance The Essential Trustee" and olher relevant publicalions. Trustees are encouraged to attend appropriate external training events. where these will facilitate a belter underslanding of Iheir role. ORGANISATIONAL STRUCTURE AND DECISION MAKING The Trustees meet at suitable intervals to consider the performance of the investments and to decide on appropriate donations. The charily has no employees. The Chairman deals with the day-to-day operations of the charity. RISK MANAGEMENT The Trustees have assessed the major risks to which the charity is exposed. in particular those related to the operations and finances of the charity and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The Trustees have a risk management strategy which includes: the annual review of the risks the charity may face. the establishment of systems and procedures lo mitigate those risks. the implementation of procedures designed to minimise any potential impact on the charity, should these risks materialise. The variability of the investment returns constitutes the charity's major risk, but this has been reduced by a wide range of investments managed by Brooks Macdonald operating both in the UK and abroad. A key element in the management of financial risk is the setting of a reserve policy and its regular review by the Trustees. PRINCIPAL ACTIVITIES The charitls principal activities have already been described in the foregoing heading of Public Benefit. Plans for future periods The charity will continue to dislribute income generated from investments to various registered charities. In the Page 4
R G HILLS CHARITABLE TRUST TRUSTEES. REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2024 Trustees, opinion, the level of reseNes is sufficient to cover any unforeseen expenses and to provide flexibilily in meeting exceptional funding requirements for charities where the Trustees are satisfied there is an urgency, and the purpose fits their priorities. INFORMATION ON FUNDRAISING PRACTICES The charity is a grant making body and is not engaged in fundraising activities. TRUSTEES, RESPONSIBILITIES STATEMENT The Trustees are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Truslees to prepare financial statemenls for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounling policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgments and accounting estimates that are reasonable and prudent. slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 28 Jan 2025 This report was approved by the Trustees, on and signed on their behalf by.. Mr KJone -ehairman Page 5
R G HILLS CHARITABLE TRUST INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF R G HILLS CHARITABLE TRUST OPINION We have audited the financial statements of R G Hills Charilable Trust (the 'charity') for the year ended 31 March 2024 which comprise the Statement of financial activities, Ihe Balance sheel, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" The financial statements have been prepared in accordance with Accounling and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. 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. In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR OPINION We conducted our audit in accordance with Internalional Standards on Auditing (UK) (ISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibililies for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requiremenls that are relevant to our audit of the financial statemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISAS {UK) require us to report to you where: the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriale., or the Truslees have not disclosed in the financial statements any identified material uncertainties that rnay cast significant doubt about tho charitrfs abilily lo continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. OTHER INFORMATION The Trustees are responsible for the other information. The other information comprises Ihe information included in Ihe Annual report, other than the financial statements and our Auditors, report Ihereon. Our opinion on the financial statements does nol cover the other information and we do not express any form of assurance conclusion thereon. Page 6
R G HILLS CHARITABLE TRUST INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF R G HILLS CHARITABLE TRUST In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so. consider whether the other information is malerially inconsistent with the financial slatements or our knowledge obtained in the audit or othetwise appears to be malerially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude Ihat there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any mateiial respect with the financial stalements. or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the infonnation and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatemenl, whelher due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. Page 7
R G HILLS CHARITABLE TRUST INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF R G HILLS CHARITABLE TRUST AUDITORS, RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wilh the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an Auditors. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularilies, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularilies, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is delailed below.. Extent to which the audit was considered capable of detecting irregularities, including fraud: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks. including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities.. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following- The nature of the industry and sector, control environment and business performance including the design of the entity's remuneration policies, results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed Ihe entity's policies and procedures. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAS (UK), we are also required to perform specifiG procedures to respond to the risk of management override. We also obtained an understanding of Ihe legal and regulatory frameworks that the entity operates in and focused on those laws and regulations Ihat had a direct effect on the determination of malerial amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011. Audit response to risks identified: As a result of performing the above, we identified revenue recognition as key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following.. reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial stalements., enquiring of managemenl, concerning actual and potential litigation and claims., performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud- Page 8
R G HILLS CHARITABLE TRUST INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF R G HILLS CHARITABLE TRUST obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of provisions,. and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting eslimates are indicative of a potential bias. and evaluating the business rationale of any significant transactions thal are unusual or oulside the normal course of business. We also communicated relevant identsfied laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. Because of th6 inherent limilations of an audit. Ihere is a risk that we will not delecl all irregularities, including those leading tc a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and Iranssctions reflected in the financial statements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraLKI involves intentional Conalment, forgery. collusion. omission or misrepresentalion, A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: ww.fr&org.uklauditorsresponsibilities. This description forms part of our Auditors, report. USE OF OUR REPORT This report is made solely to the charivs trustees. as a body. in accordance with Part 4 of the Charilies (Accounls and Reports) Regulations 2008, Our audit work has been undertaken so that we mighl stale to the charity's truslees those matters we are required to stale to them in an Auditors, report and for no other purpose. To fullest extent permitted by law, we do not a¢pt or assume responsibility to anyone other than the charity d it Irustees, s a body, for our audit work, for Ihis report, or for Ihe opinions w8 have formed. Pure AudSt Llmited Chartered Certified Accountants and Statutory Audtlors 76 Canterbury Innovation Centre University Road Canlerbury Kent CT2 7FG Date: Pure Audit Limiled are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 28 January 2025 Page 9
R G HILLS CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Endowment funds funds 2024 2024 Total funds 2024 Tot81 funds 2023 Note INCOME AND ENDOWMENTS FROM: Investments 150,975 150,975 156. 170 TOTAL INCOME AND ENDOWMENTS 150,975 150,975 156.170 EXPENDITURE ON: Raising funds: Inveslment management Charitable activities 16,160 16,160 150.000 18,158 140,296 5,6.7 150.000 TOTAL EXPENDITURE 150,000 16,160 166.160 158,454 NET INCOME I (EXPENDITURE) BEFORE INVESTMENT GAINSI{LOSSES) Net gainsl{losses) on investments NET INCOME I {EXPENDITUREI BEFORE OTHER RECOGNISED GAINS AND LOSSES 975 (16,160) 194,960 {15,185) 194,960 (2,284) (246,409) 975 178,800 179.775 (248,693) NET MOVEMENT IN FUNDS 975 178,800 179,775 (248,693) RECONCILIATION OF FUNDS: Total funds brought fotward 117.836 4.157,399 4,275,235 4, 523,928 TOTAL FUNDS CARRIED FORWARD 118,811 4,336,199 4,455,010 4, 275,235 The notes on pages 13 to 25 form part of these financial statements. Page 10
R G HILLS CHARITABLE TRUST BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Investments 11 4,288,088 4, 149.572 CURRENT ASSETS Cash at bank and in hand 181,399 145,272 CREDITORS: amounts falling due within one year 12 (14,477) (19, 609J NET CURRENT ASSETS 166,922 t25, 663 NET ASSETS 4,455,010 4, 275,235 CHARITY FUNDS Endowment funds 13 4,336,199 118,811 4, 157,399 117,836 Unrestricted funds 13 TOTAL FUNDS 4,455,010 4, 275,235 The financial statements were approved by the Trustees on 28 Jan 2025 and signed on their behalf, by= Mr K Jones, Ch The notes on pages 13 to 25 fomi part of these financial statements. Page11
R G HILLS CHARITABLE TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note CASH FLOWS FROM OPERATING ACTIVITIES Net cash used in operating activities 15 (20,317) (13.236) Proceeds from sale of investments Purchase of investments 612,261 {555,817) 236,425 (230,340) NET CASH USED IN INVESTMENT ACTIVITIES 56,444 36,127 145,272 6,085 CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR Cash and cash equivalents brought forward (7. 151) 152,423 CASH AND CASH EQUIVALENTS CARRIED FORWARD 181,399 145,272 The notes on pages 13 to 25 form part of these financial statements. Page 12
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES 1.1 Basls of preparation of financial statements The financial statements have been prepared in accordance with the second edition of the Charities Slatement 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. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otheNise stated in the relevant notes to these accounts. R G Hills Charitable Trust constitutes a public benefit entity as defined by FRS 102. General informatlon The entity is a charity registered with Charity Commission in England & Wales under registration number 1008914. The charity's registered office address is.. 3940 St. Margaret's Street, Canterbury, Kent, CT12TX. 1.2 Golng concern The Trustees have assessed that the expectation is that the charity will continue in operational existence for the forseeable future and, accordingly, these financial statements are prepared on going concern basis. Page 13
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES {continuedl 1.3 Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the dale on which either.. the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor{s) to the Trust that a distribution will be made, or when a distribulion is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executovs intention lo make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probale, and the criteria for income recognition have nol been met, Ihen the legacy is treated as a contingent asset and disclosed if material. Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. Donated seNices or facililies are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit Gan be measured reliably. On receipt, donated professional seNices and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain seNices or facilities of equivalent economic benefit on the open market., a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relalion to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the seNice. Page 14
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES {Gontinued) 1.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities and Governance costs are costs incurred on the charitls operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities. Grants payable are charged in the year when the offer is made 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 expendilure. All expenditure is inclusive of irrecoverable VAT. 1.5 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliabily in which case it is measured at cost less impairment. Inveslment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gainsl{losses) on investments, in the Stalement of financial activities. 1.6 Cash at Bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short malurily of three months or less from the dale of ar4uisition or opening of the deposit or similar account. Page 15
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES {continued) 1.7 Liabilities and provisions Liabilities are reGognised when there is an obligation at the Balance sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimated reliably. Liabilities are recognised at Ihe amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or seNices it musl provide. Provisions are measured al the best estimate of the amounls required to settle the obligation. Where the effecl of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 1.8 Financial instruments The charily only has financial assels and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequenlly measured al their settlement value with the exception of bank loans which 8re subsequently measured at amortised cost using the effective interest method. 1.9 Fund accounting General funds are unrestrided funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specrfic restriclions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial statements. Investment income, gains and losses are allocated to the appropriate fund. INVESTMENT INCOME Unrestricted Endowment funds funds 2024 2024 Total funds 2024 Total funds 2023 Investment income - listed investments Investment income - local cash 149,068 1,907 149,068 1,907 155, 580 590 150,975 150,975 156, 170 Tolal 2023 156, 170 156, 170 Page 16
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INVESTMENT MANAGEMENT COSTS Unrestricted EndovJment funds funds 2024 2024 Total funds 2024 Total funds 2023 Investment management fees 16,160 16,160 18, 158 Total 2023 18,158 18, 158 DIRECT COSTS - CHARITABLE ACTIVITIES Unrestrlcted Endowment funds funds 2024 2024 Total 2024 Total 2023 Donations 124,110 124,110 120,000 Tot812023 120,000 120,000 SUPPORT COSTS - CHARITABLE ACTIVITIES Unrestricted Endowment funds funds 2024 2024 Total 2024 Total 2023 Trustees, professional fees 21,638 120 21,758 16,490 Total 2023 16,130 360 16,490 Page 17
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GOVERNANCE COSTS Unrestrlcted Endowment funds funds 2024 2024 Total funds 2024 Total funds 2023 Auditors. remuneration Accountancy Subscription and other charges Managemenl Legal & professional 4,140 3,600 112 4.140 3,600 112 4,020 3, 650 146 18,038 120 18,158 12,840 25,890 120 26,010 20, 656 Total 2023 20,296 360 20, 656 ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE Resources expended 2024 Total 2024 Total 2023 Expenditure on investment management 16,160 16,160 18, 158 Costs of raising funds 16,160 16,160 18, 158 Direct and support costs Expenditure on governance 124,738 25,262 124,738 25,262 121,800 18,496 166,160 166,160 158, 454 Total 2023 158,454 158,454 ANALYSIS OF EXPENDITURE BY ACTIVITIES Activities undertaken directly 2024 Total 2024 Total 2023 Direct costs - (Donations to registered charities) 124,110 124,110 120,000 Total 2023 120, 000 120, 000 Page 18
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 NET INCOMEI{EXPENDITURE) During the year, no Trustees received any remuneration (2023 £NIL). However. the Trustees are expressly authorised to charge professional fees in the Trust instrument. See note 19 for fees charged by Trustees. During the year, no Trustees received any benefits in kind (2023 - £NIL). During the year, no Trustees received any reimbursement of expenses (2023 - £NIL). 10. AUDITORS, REMUNERATION 2024 2023 Fees payable to the charitys auditor and its associates for the audit of the charity's annual accounts 4,140 4, 020 Auditors remuneration includes audit fee of £3.450 (2023.. £3,350) and VAT of £690 (2023.. £670). 11. FIXED ASSET INVESTMENTS Listed securities Market value At 1 April 2023 Additions Disposals Revaluations 4,149,572 555,817 {511,2831 93,982 At 31 March 2024 4,288,088 Hlstorlcal cost 3,848,240 Investments at market value comprise: 2024 2023 Listed investments 4,288,088 4, 149,572 All fixed asset investments are managed by Brooks Macdonald Asset Management Ltd. Page 19
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. FIXED ASSET INVESTMENTS (continued) Valuatlon Investments held at the year end comprised the following.. 31 March 2024 31 Mah 2023 European Equities Hedge Funds and Alternatives International and Thermatic International Fixed Interest Japan, Far East and Emerging Markets North American Equities Property Structured Return UK Equities and Unit Trusts UK Fixed Interest 175,650 264,634 856,985 105,675 342,729 589,152 94,284 391,914 847,643 619,422 166, 645 376, 604 838,814 98, 966 467,206 477, 820 95,442 305, 147 838, 225 484, 703 4,288,088 4, 149,572 At the year end, Brooks Macdonald, the investment managers were also holding a bank balance of £130,154 (2023: £88.080). Material investments No single holding exceeded 50A of the total value of the portfolio as at the year 8nd. 12. CREDITORS: Amounts falling due within one year 2024 2023 Accruals and deferred income 14,477 19.609 13. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 March 2024 Balance at 1 April 2023 Gainsl (Losses) Income Expendlture Unrestrlcted funds General Funds- all funds 117,836 150,975 {150,000) 118,811 Page 20
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. STATEMENT OF FUNDS (Continued) Endowment funds Endowment Fund 4,157,399 {16,160) 194,960 4,336,199 Total of funds 4,275,235 150,975 {166,160) 194,960 4,455,010 STATEMENT OF FUNDS - PRIOR YEAR Balance al 31 March 2023 Balance al l April 2022 Gainsl (Losses) Income Expendilur8 General Funds- all funds 101,962 156, 170 (140, 296) (18, 158) (246,409) 4, 157,399 117,836 Endowment Fund 4,421,966 Total of funds 4,523,928 156, 170 (158, 454) (246, 409) 4,275, 235 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestricted Endowment funds funds 2024 2024 Total funds 2024 Fixed asset investments CLfrrent assets Creditors due within one year 4,288,088 48,111 (4,655) 4,288,088 181,399 {14,477) 133,288 (9,822) 118,811 4,336,199 4,455,010 ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unrestricled Endowment funds funds 2023 2023 Total funds 2023 Fixed asset investments Current assets Creditors due within one year 4, 149,572 12,481 (4, 654) 4, 149,572 145,272 (19,610) 132, 791 (14, 955) 117,836 4, 157,399 4, 275, 234 Page 21
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net incomel(expenditure) for the year (as per Statement of Financial Activities) 179,775 (248, 693) Adjustment for: (Gain) I loss on investments Decrease in creditors (194,960) {5,132) 246,409 (10, 952) Net cash used In operating actlvities (20,317} (13,236) 16. ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2023 Cash in hand 181,399 145,272 Total 181,399 145,272 17. RELATED PARTY TRANSACTIONS The professional trustees, Mr K Jones, Chartered Accountant and Mr H M S Barrett, Solicitor. are expressly authorised to charge fees in the Trust instrument. Mr H M S Barrett is a consultant with Furley Page, the solicitors to the charity for the year. Mr K Jones is a partner at Burgess Hodgson, Chartered Accountants. The total fees payable to Furley Page in the year amounted to £14,444 {2023: £5.580). The total fees payable to Burgess Hodgson amounted to £7,314 {2023'. £7,250). No reimbursement of expenses apart from these fees have been made or is due to be made to either of the Trustees in respeGI of the year under review. During the year, no trustees received any benefits in kind {2023 - £NIL). At the year end. the charity owed the followed balances.. Furley Page.. £855 (2023.. £Nil) Burgess Hodgson: £4,800 {2023: £7,250). Page 22
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. Donatlons to registered charities 2024 2023 AGtion Aid for Animals African Childrens Fund Alex the Leukodystrophy Charity Animal SOS Sri Lanka Animals Asia Foundation Animal Antics Bels Brucha Braille Chess Association Breaking Barriers Brecon and District Disabled Club Brent Lodge Bird & Wildlife Trust British Red Cross British Heart Foundation Catching Lives Castle Point Social Care Scheme Limited Cavernoma Alliance UK Chailey Heritage Foundation Charity Buddy Childrens Hospital Pyjamas Children of the Making Childrens Burns Trust Childrens Hospital Pyjamas Conservation Without Borders City Gate Community Projects Clean Rivers Trust Clothing Solutions Criminon UK Cued Speech UK Limited Dame Vera Lynn Childrens Charity Disasters Emergency Committee Duchenne UK Ezra Umarpeh Facing the World Fight Against Blindness Four Paws Fetcher Dog Food Lifeline Freedom Kit Bags Goodlife Rescue Handicaps International Ltd Home Start Hope for the Future Horizons (Plymouth) Hot Line Meals Service (London) Hour Community Impact International Animal Rescue IT Schools Africa Kent AirAmbulance Kent Mining Heritage Foundation Kent MS Therapy Centre 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 3,000 2,000 2,000 2,000 1,500 2,000 2,000 2,000 2,000 1,000 2,000 2,000 1,500 2,000 1,500 2,000 2,500 2,000 2,000 2,000 2,000 2,000 3,000 2,000 2,500 2,000 2,000 2,000 2,000 2.000 2,000 2, 000 1,500 2,000 2,000 2,000 Page 23
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Little Village Linking Environment and Farms Little Lifts London Wheelchair Rugby Club Lotus Flower Trust MACS MADM Maiden City Soccer Academy Malaika Kids UK Masl Cell Action Medecins San Frontiere Mount Noddy Animal Centre Mummys Star National Literacy Trust Nightingales Childrens Project Nowzad NSPCC Ukrainian Aid On Course Foundalion Oxfam Ukraine Humanitarian Appeal Pat Macks People's Trust for Endangered Species Plan International Play Action International Porchlight Porridge & Pens Prisoners Education Trust Prostate Cancer UK Raising Fulures Kenya Raw Workshop Resolve Now Romney Resource 2000 Ltd Sanitation First Limited Save the Children Secret World Wildlife Rescue Serendip Children's Home Send a Cow Side by Side Sofa Projecl Sparks of Hope Standout Programme Sudden Productions Thanet Trust The Anne Robson Trust The British Red Cross Society The Canterbury Dictirct Cab The Food Chain {UK) Limited The Happy & Healthy Trust The Just a Drop Appeal The Migraine Trust The Move Partnership The Pituitary Foundation The Save the Children Fund The Smile Train UK The Trussell TrLFSt Tourette Syndrome (UK) Tunbridge Wells Counselling Centre Village Water Limited 2,000 2, 000 1, 500 2, 000 2, 000 3,000 2,000 2,000 2,500 2,000 3,000 2,000 2,000 1,500 2,000 2,000 2,000 2,000 2,000 2,000 1,500 2,000 1,500 2,000 2,000 1,500 2,000 2,000 3,000 1,500 2,000 2,000 2,000 2,000 3,000 2,000 2,000 3,500 2,000 1,000 2,000 2,000 2,000 1,500 3,000 3,000 1,500 1,500 2,000 Page 24
R G HILLS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Viva Network War Child WasteAid Wellbeing of Women Wetherbys Support of the Elderly Whale and Dolphin Conservation Women's Aid Federation of England Young & Inspired Ltd Youth on the Move London Other 2,000 3, 000 2,000 2,000 2, 000 2, 000 2,000 2,000 2,000 110 1, 500 Total 124,110 120, 000 Page 25