2022-03-31-accounts - The Sedbury Trust

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Registered Charity Number: 1012875

THE SEDBURY TRUST ANNUAL REPORT 31 MARCH 2022

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C O N T E N T S	Page
REFERENCE AND ADMINISTRATIVE INFORMATION	1
TRUSTEES’ REPORT	2 - 4
TRUSTEES’ RESPONSIBILITIES STATEMENT	5
INDEPENDENT AUDITOR’S REPORT	6 – 8
STATEMENT OF FINANCIAL ACTIVITIES	9
BALANCE SHEET	10
NOTES TO THE FINANCIAL STATEMENTS	11 -15

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THE SEDBURY TRUST

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity registration number	1012875
Registered address	First Floor
	79 Promenade
	Cheltenham
	GL50 1PJ
Trustees	Mr P D McLain
	Mrs S Walker
	Mrs K Barnard-Wills
	Mr R Bromberg (Chairman)
Bankers	Lloyds Bank plc
	130 High Street
	Cheltenham
	Gloucestershire
	GL50 1EW
Auditors	Hazlewoods LLP
	Staverton Court
	Staverton
	Cheltenham
	Gloucestershire
	GL51 0UX
Legal advisor	BPE
	St James’ House
	St James’ Square
	Cheltenham
	Gloucestershire
	GL50 3PR
Investment advisors	Quilter Cheviot
	Senator House
	85 Queen Victoria Street
	London
	EC4V 4AB

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THE SEDBURY TRUST

TRUSTEES’ REPORT

for the year ended 31 March 2022

The Trustees present their report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Trust’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Trust was constituted under a Trust deed dated on 23 March 1992. The objects of the Trust were formally set out in a Declaration of Trust dated 23 March 1992 and by a supplemental deed dated 28 July 1992. The Trust was registered by the Charity Commission as a charitable organisation on 20 July 1992, registered number 1012875.

There have been no changes to the Trust deed and rules of the Trust in the year.

Management of the Trust

The Trust is managed by the Board of Trustees which meets on a regular basis throughout the year.

A new trustee may be appointed by a resolution of a meeting of the Trustees, provided that a memorandum is signed and sealed by the person presiding at such a meeting and attested by two other persons at the meeting. A new trustee may be appointed at any time, subject to the total number of trustees not exceeding five or falling below three.

Gloucestershire County Council has the power to appoint a nominated trustee upon the death or retirement of the existing nominee.

Risk Management

The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate exposure to the major risks.

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THE SEDBURY TRUST

TRUSTEES’ REPORT (continued)

for the year ended 31 March 2022

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

Objectives

The objects of the Trust are to apply the Trust fund income:

a) In furtherance of the education and training of:
i) any child or young person who is, or at any time has been, in the care of, or provided with accommodation by, or under the supervision of the County Council; or
ii) any child or young person in need within the meaning of Section 17 (10) of the Children’s Act 1989.
b) In payment to any charitable or voluntary organisation whose objects include the education and training of children or young persons for the furtherance of the education and training of those children or young persons mentioned in subclauses i) or ii) above;
c) If in any year ending upon the anniversary date it has not been possible to expend all of the income of the Trust Fund in discharge of the above objects, the Trustees, without prejudice to any power to accumulate the same, may apply the excess of such income arising in the year: -
i) in furtherance of the education and training of any child or young person resident in the County of Gloucestershire; or
ii) in payment to any charitable or voluntary organisation whose objects include the education and training of children or young persons for the furtherance of the education and training of children or young persons in the County of Gloucestershire.

Public Benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.

ACHIEVEMENTS AND PERFORMANCE

The Trustees, at their meetings, have reinvested the bulk of their income in the welfare of young people in Gloucestershire. The largest recipient during the year was Summer to Remember which received £150,000. In addition, many smaller gifts have been made from the income that the Trust has produced.

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THE SEDBURY TRUST

TRUSTEES’ REPORT (continued)

for the year ended 31 March 2022

FINANCIAL REVIEW

The investment policy followed during the year resulted in satisfactory levels of investment income.

During the year the Trust raised unrestricted fund income of £126,672 (2021: £130,505) and expended £258,649 (2021: £164,924) in grants made in accordance with the Trust objectives. Costs of raising funds totalled £47,799 (2021: £47,849) leaving net outgoing resources for the year of £179,776 (2021: £82,268).

Listed investment balances increased to £4,881,747 (2021: £4,677,138).

Gains on investment assets amounted to £213,663 (2021: £834,548).

The net increase in funds for the year was £33,857 (2021: £752,265).

At 31 March 2022 total funds held were £4,906,287 (2021: £4,872,430), comprised largely of monies invested in a managed portfolio of investments and interest bearing accounts. These investments have been acquired in accordance with the powers of the Trustees.

Investment Powers

In accordance with the Declaration of Trust, the Trustees have the absolute discretion to apply or invest money as they think fit.

Reserves Policy

From 23 March 2013 all income of the Trust has been applied towards the objectives of the Trust.

PLANS FOR FUTURE PERIODS

The Trustees will continue to apply the objects of the Trust in accordance with the Declaration of Trust.

The Trust will continue to assist children in need, particularly through donations to special needs schools.

In recent times, the Trust has formed a close association with Aiming High for Disabled Children which covers the whole of the County, and therefore makes many donations to children who have previously been overlooked by the Trust through its lack of knowledge of their existence.

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This report was approved by the Board of Trustees on ………………… and signed on its behalf by:

R Bromberg Chairman

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THE SEDBURY TRUST

TRUSTEES’ RESPONSIBILITIES STATEMENT

The charity Trustees are responsible for preparing a Trustees' report and 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 and Wales requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP;
make judgments and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures that must be 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 business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

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INDEPENDENT AUDITOR’S REPORT To the Trustees of The Sedbury Trust

Opinion

We have audited the financial statements of The Sedbury Trust (‘the charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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, including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the United Kingdom and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 March 2022 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 International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially 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 that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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INDEPENDENT AUDITOR’S REPORT (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the Trustees’ report is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities statement set out on page 5, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 misstatement, whether 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 trust or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with 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 to issue an auditor’s 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 material 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.

Irregularities, 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 irregularities including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following;

We obtained an understanding of the legal and regulatory frameworks applicable to the financial statements of that had a fundamental effect on the operations of the charity. We determined that the most significant laws and regulations included United Kingdom Generally Accepted Accounting Practice and the Charities Act 2011;
We understood how the charity is complying with those legal and regulatory frameworks by making enquiries of the management and those responsible for legal and compliance procedures;

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INDEPENDENT AUDITOR’S REPORT (continued)

We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries with unusual characteristics.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Hazlewoods LLP, Statutory Auditor Staverton, Cheltenham

Date 25/01/2023

Hazlewoods LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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THE SEDBURY TRUST

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2022

		Unrestricted	Unrestricted
		Total	Total
	Note	2022	2021
Income and endowments from:
Donations and legacies		-	-
Investments	2	126,672	130,505
		______	______
Total income		126,672	130,505
		______	______
Expenditure on:
Raising funds	3	47,799	47,849
Charitable activities	4	258,649	164,924
		______	_
Total expenditure		306,448	212,773
		______	______
Net expenditure and net
movements in funds before gains
and losses on investments		(179,776)	(82,268)
		______	______
Net gains on investments	6	213,633	834,548
Net losses on currency		-	(15)
		______	______
Net income and
net movement in funds		33,857	752,265
Funds brought forward		4,872,430	4,120,165
		__	__
Funds carried forward		£ 4,906,287	£ 4,872,430

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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THE SEDBURY TRUST

BALANCE SHEET

as at 31 March 2022

Note FIXED ASSETS Tangible fixed assets 5 Investments 6 TOTAL FIXED ASSETS CURRENT ASSETS Cash in hand and at bank Other debtors and prepayments Accrued income LIABILITIES Creditors: amounts falling due within one year 7 NET CURRENT ASSETS TOTAL NET ASSETS FUNDS OF THE CHARITY Unrestricted funds 8	2022 - 4,881,747 _ 4,881,747 _ 285,145 384 10,736 _ 296,265 (271,725) _ 24,540 ___ £ 4,906,287 £ 4,906,287	2021 - 4,677,138 _ 4,677,138 _ 324,169 400 11,687 _ 336,256 (140,964) _ 195,292 ___ £ 4,872,430 £ 4,872,430

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The financial statements were approved by the Board of Trustees on ………………. and signed on their behalf by:

R Bromberg Chairman

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THE SEDBURY TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022

1 ACCOUNTING POLICIES

1.1 Basis of preparation and assessment of going concern

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice.

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 Accounting and Reporting by 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 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. Charitable activities of the Trust are discretionary and can be reduced to ensure the continuing viability of the trust if necessary.

The Trustees consider that there are no significant areas of adjustment or key assumptions that affect items in the accounts. The most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see 1.6 investment policy and the risk management sections of the Trustees’ report for more information).

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the Trust operates. Monetary amounts in these financial statements are rounded to the nearest pound.

The Trust constitutes a public benefit entity as defined by FRS 102.

1.2 Income recognition

All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the Trust is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Trust and it is probable that those conditions will be fulfilled in the reporting period.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

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THE SEDBURY TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

for the year ended 31 March 2022

1.3 Investment income

Income distributions from equity investments and unit trusts are credited to the statement of financial activities (SOFA) account when they are received.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computer equipment 25% straight line

1.5 Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

Expenditure on charitable activities, comprising of grants and awards payable charged in the year when the conditions attaching are fulfilled. Grants and awards offered subject to conditions which have not been met at the year end are noted as a commitment but not accrued as expenditure.

Raising funds include all costs incurred in running the Trust, which cannot be directly allocated to the charity’s projects or fundraising. As such, it includes secretarial expenses, audit fees and legal fees.

1.6 Investments

Investments are a form of basic financial instrument and 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. The SOFA includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Trust is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

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THE SEDBURY TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

for the year ended 31 March 2022

2	INVESTMENT INCOME
		2022	2021
	Income from listed investments
		£ 126,672	£ 130,505
3	RAISING FUNDS
		2022	2021
	Accountancy fees	6,002	12,705
	Investment managers fees	32,682	29,626
	Other administration costs	9,115	5,518
		______	______
		£ 47,799	£ 47,849

Other administration costs include auditor’s remuneration (in respect of annual audit) of £2,250 (2021: £2,200).

Trustees received no remuneration or expense payments in either year.

4 CHARITABLE ACTIVITIES

	2022		2021
Grants payable in furtherance of the
charity’s objectives for the public benefit
Made to institutions	255,656		95,366
Made to individuals	2,593		69,558
	______		______
	£ 258,649	£	164,924
During the year the Trust made the following grants to institutions of		a value
of £1,000 or over:
			£
In Car Safety			1,669
Sensory Room			32,775
Focus Networks UK			1,091
Summer to Remember			150,000
Wheels in Motion			70,000

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THE SEDBURY TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

for the year ended 31 March 2022

5 TANGIBLE FIXED ASSETS

5	TANGIBLE FIXED ASSETS
			Computer
			equipment
	Cost
	At 1 April 2021 and at 31 March 2022		839
			_
	Depreciation
	At 1 April 2021 and at 31 March 2022		839
			_
	Net book value
	At 31 March 2022		£ -
	At 31 March 2021		£ -
6	FIXED ASSET INVESTMENTS
		2022	2021
	Listed investments	£ 4,881,747	£ 4,677,138
	Listed investments at market value comprise:
		2022	2021
	Valuation at the beginning of year	4,677,138	3,912,807
	Additions in the year	429,173	1,339,350
	Disposals in the year	(438,197)	(1,409,567)
	Gains on revaluation	213,633	834,548
		__	___
	Valuation at end of year	£ 4,881,747	£ 4,677,138
	The historic cost of investments is:
	Listed investments:	£ 3,983,839	£ 3,935,962
	Investments at fair value comprise:
	Equities	4,134,086	3,884,779
	Fixed interest securities	747,661	792,359
		__	__
	Total	£ 4,881,747	£ 4,677,138

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THE SEDBURY TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

for the year ended 31 March 2022

CREDITORS –
Amounts falling due within one year	2022	2021
Accruals	271,725	140,964
	______	______
	£ 271,725	£ 140,964

8 FUNDS

Unrestricted funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.

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