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2020-04-05-accounts

Charity number: 1018190

BRUCE WAKE CHARITY

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2020

BRUCE WAKE CHARITY

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 5
Independent examiner's report 6 - 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 18

BRUCE WAKE CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2020

Trustees Mrs P D Wake
Mr R G Rowley
Mr P K Hems
Charity registered
number
1018190
Principal office
Oakview House
Wakerley Road
Barrowden
Rutland
LE15 8EP
Independent Examiner
Christopher Frostwick ACA
Grant Thornton UK LLP
Chartered Accountants
Regent House
80 Regent Road
Leicester
LE1 7NH
Bankers
Cater Allen
9 Nelson Street
Bradford
BD1 5AN
Solicitors
Freeths LLP
One Colton Square
Leicester
LE1 1QH
Investment Advisers
Rathbone Investment Management Limited
1 Curzon Street
London
W1J 5FB
1825 Financial Planning
1 Holly Street
Sheffield
S1 2GT

Page 1

BRUCE WAKE CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2020

The Trustees present their report together with the financial statements of Bruce Wake Charity ("the charity") for the year ended 5 April 2020. The trustees confirm that the trustees' report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities

a. Policies and objectives

The objectives of the charity are to apply the funds thereof on or towards the relief and assistance of disabled persons in the United Kingdom including the provision of leisure facilities.

It is not the intention of the trustees to raise funds for the charity from the public. The settlement deed permits the trustees to hold investment assets to generate income for future donations.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Grant-making policies

The trustees consider all written applications for grants at trustees’ meetings, which are held quarterly. Applications are considered on merit based on how closely the activities of the applicant fit with the objectives of the charity.

Page 2

BRUCE WAKE CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2020

Achievements and performance

a. Review of activities and financial review

The income for the year amounted to £197,025 compared with £210,452 for the previous year, comprising investment income. The investment management costs amounted to £50,932 as compared with £54,583 the previous year.

The expenditure on direct Charitable activities amounted to £833,816 compared with £699,302 for the previous year, comprising both direct grants to other charitable organisations to fund projects which meet with the objects of the trust and direct grants to individuals where appropriate. An overall target level of annual grant expenditure is determined every three years and reviewed annually based on projected levels of income and growth from the investment portfolios and the long term strategy of the Charity.

The Trustees took the decision to close the boat operation at the end of the 2018 season and as a consequence of this “Charlotte III” was sold in June 2019, the proceeds of which were accounted for in the 2019 accounts.

The figure of net expenditure for the year amounted to £716,230 (2019 - £604,551) which is then adjusted for realised and unrealised gains and losses on investments, the net movement in funds is then transferred to the General Fund. No funds have been received for restricted purposes.

During the year the funds available for investment have been managed by Rathbone Investment Management and 1825 Financial Planning and the movement on those investments are set out in Note 9. The investments held by the charity have been acquired in accordance with the trustees' powers.

b. Information on fundraising practices

There were no fundraising activities in the year, and it is the trustees' general policy not to engage in fundraising activities.

c. Investment policy

The trustees' investment policy is to generate sufficient income each year to enable the trustees to make donations such as they see fit. Any excess or deficit of income over expenditure for the period to be added to or transferred from the balance brought forward from general fund, the balance thereof being carried forward.

d. Going concern

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Other than the potential effect on investment valuations, the impact of COVID-19 is relatively minimal. The charity has confirmed that it has adequate cash and investment resources for at least the next 12 months and for this reason they continue to adopt the going concern basis in preparing the financial statements.

Page 3

BRUCE WAKE CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2020

Other

a. Reserves policy

It is not the policy of the charity to hold reserves committed or designated for specific purposes. The trustees look to retain sufficient cash reserves as they consider necessary to respond to requests for grants.

The trustees' intention is to ensure that the charity has a long term future whilst also looking to maintain a reasonable level of grant aid in the short term. Having carried out long term projections on income and growth the trustees' intention is to maintain grant aid and expenditure at levels commensurate with those projections and to fund that principally from income generated from investments but with encashment of capital growth and the utilisation of cash reserves as and when necessary.

b. Principal funding

The trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations.

Structure, governance and management

a. Constitution

The trust was created on 8 February 1993 by Mrs P D Wake, the settlor, with an initial settlement of £10.

The charitable status of the trust has been approved by HM Revenue & Customs and no taxation is payable on the income or gains of the trust.

The charity is run by the trustees who are listed below:

Mrs P D Wake Mr R G Rowley Mr P K Hems

Mr T A Wake ceased to be a trustee on 3 May 2019.

b. Methods of appointment or election of Trustees

The power to appoint and remove trustees is vested with the trustees.

c. Organisational structure and decision-making policies

The trustees have the same full and unrestricted powers of investing and transferring investments as if they are beneficially entitled to the Trust Fund.

d. Policies adopted for the induction and training of Trustees

The trustees are mindful of their duties in connection with the induction and training for trustees and appropriate steps have been taken.

Page 4

BRUCE WAKE CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2020

Structure, governance and management (continued)

e. 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 exposure to the major risks.

The charity uses financial instruments comprising cash and investments. The main purpose of these is to finance the working capital cycle of the charity and the longer term income and capital needs.

The charity considers movements in investment prices and returns to be its main risk and uses fund managers to manage this risk.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 requires the trustees to prepare financial statements for each financial year. The trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate 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.

Approved by order of the members of the board of Trustees on 26 August 2020 and signed on their behalf by:

Mrs P D Wake (Trustee)

Page 5

BRUCE WAKE CHARITY

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 5 APRIL 2020

Independent Examiner's Report to the Trustees of Bruce Wake Charity ('the charity')

I report on the accounts of Bruce Wake Charity for the year ended 5 April 2020, which are set out on pages 8 to 18.

Your attention is drawn to the fact that the charity's trustees have prepared the charity's accounts in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) issued in October 2019 in preference to the Statement of Recommended Practice 'Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005)' issued in April 2005 which is referred to in the Charities (Accounts and Reports) Regulations 2008 but has been withdrawn. I understand that the charity's trustees have done this in order for the charity's accounts to give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

This report is made solely to the charity's trustees, as a body, in accordance with the regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, for this report, or for the opinions I have formed.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a comparison of the accounts with the accounting records kept by the charity. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below.

Page 6

BRUCE WAKE CHARITY

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2020

Independent Examiner's Statement

In connection with my examination, no matter has come to my attenion:

have not been met; or

Signed:

Dated: 26 August 2020

Christopher Frostwick ACA

Grant Thornton UK LLP Chartered Accountants Leicester

Page 7

BRUCE WAKE CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2020

Note
Income from:
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities:
Direct activities
4
Support costs
5
Other expenditure
6
Boat operations subsidy
7
Total expenditure
Net (losses)/gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
197,025
197,025
50,932
833,816
24,504
4,003
-
913,255
(570,551)
(1,286,781)
8,349,841
(1,286,781)
7,063,060		 Total
funds
2020
£
197,025
197,025
50,932
833,816
24,504
4,003
-
913,255
(570,551)
(1,286,781)
8,349,841
(1,286,781)
7,063,060		 Total
funds
2019
£
210,452
210,452
54,583
699,302
36,500
-
24,618
815,003
419,519
(185,032)
8,534,873
(185,032)
8,349,841

The notes on pages 10 to 18 form part of these financial statements.

Page 8

BRUCE WAKE CHARITY

BALANCE SHEET AS AT 5 APRIL 2020

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors
10
Assets held for sale
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
Net current assets
Total net assets
Charity funds
Restricted funds
Unrestricted funds
Total funds		 2,263
-
874,925
877,188
(80,345)		 2020
£
285
6,265,932
6,266,217
796,843
7,063,060
-
7,063,060
7,063,060		 6,498
60,320
737,766
804,584
(55,917)		 2019
£
428
7,600,746
7,601,174
748,667
8,349,841
-
8,349,841
8,349,841

The financial statements were approved and authorised for issue by the Trustees on 26 August 2020 and signed on their behalf by:

Mrs P D Wake

Mr P K Hems

The notes on pages 10 to 18 form part of these financial statements.

Page 9

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statement have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Bruce Wake Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in Sterling (£).

1.2 Fund accounting

General funds are unrestricted 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.

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.

It is not the intention of the charity to seek donations but as and when they are received they are accounted for on a receipts basis.

Interest and dividends are accounted for on a receivable basis. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 10

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

1. Accounting policies (continued)

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.

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

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 expenditure.

1.5 Going concern

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Other than the potential effect on investment valuations, the impact of COVID-19 on the charity is relatively minimal. The charity has confirmed that it has adequate cash and investment resources for at least the next 12 months and for this reason they continue to adopt the going concern basis in preparing the financial statements.

1.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Assets held for sale are held at the lower of net book value and realisable value.

Page 11

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

1. Accounting policies (continued)

1.8 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 Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

1.9 Debtors

Debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

1.10 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 acquisition or opening of the deposit or similar account.

1.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the 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 services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

1.12 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 measured at their settlement value.

2. Investment income

Unrestricted
funds
2020
£
Quoted investments
194,787
Bank interest
2,238
197,025		 Total
funds
2020
£
194,787
2,238
197,025		 Total
funds
2019
£
209,195
1,257
210,452

Page 12

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

3. Investment management costs

Unrestricted Total Total
funds funds funds
2020 2020 2019
£ £ £
Investment management fees 50,932 50,932 54,583

4. Analysis of grants

Grants
Grants		 Grants to
Institutions
2020
£
714,283
Grants to
Institutions
2019
£
627,269		 Grants to
Individuals
2020
£
119,533
Grants to
Individuals
2019
£
72,033		 Total
funds
2020
£
833,816
Total
funds
2019
£
699,302

There were 251 (2019 - 206) grants or commitments made to institutions during the year amounting to £714,283 (2019 - £627,269). Grants to institutions greater than £5,000 are set out below.

Page 13

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

Analysis of grants (continued)

Unrestricted
funds
2020
£
Grants to institutions
Wheelpower 25,000
MNDA 25,000
Charity Link Leicester 21,000
The Back-Up Trust 14,000
Disability Snowsport UK 10,000
Revitalise Respite Holidays 6,000
Grants of £5,000 and less 613,283
714,283

Grants were made in the year direct to 64 (2019 - 43) individuals amounting to £119,533 (2019 - £72,033) and through Charity Link Leicester operations amounting to £21,000 (2019 - £28,000) and Charity Link Northampton operations amounting to £4,500 (2019 - £6,000).

5. Support costs - governance

Unrestricted
funds
2020
£
Accountancy fees
10,254
Legal and administration charges
-
Accountancy and adminstration charges
14,250
24,504		 Unrestricted
funds
2019
£
8,700
15,300
12,500
36,500

Accountancy fees include £850 in respect of Independent Examination fees (2019 - £810).

Page 14

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

6. Other expenditure

Unrestricted
funds
2020
£
Telephone
1,222
Stationery, postage and computer expenses
1,222
Computer depreciation
143
Sundry
1,416
4,003		 Unrestricted
funds
2019
£
-
-
-
-
-

7. Boat operations subsidy

Hire fees
Boat expenses
Net subsidy		 Total
funds
2020
£
-
-
-		 Total
funds
2019
£
(15,990)
40,608
24,618

Page 15

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

8.
Tangible fixed assets
Cost
At 6 April 2019
At 5 April 2020
Depreciation
At 6 April 2019
Charge for the year
At 5 April 2020
Net book value
At 5 April 2020
9.
Fixed asset investments
Market value
At 6 April 2019
Additions
Disposals
Revaluations
At 5 April 2020
Net book value
At 5 April 2020
At 5 April 2019		 Office
equipment
£
642
642
214
143
357
285
Listed
investments
£
7,600,746
356,375
(1,143,955)
(547,233)
6,265,932
6,265,932
7,600,746

Page 16

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

9. Fixed asset investments (continued)

Rathbone Investment Management comprises listed investments amounting to £4,487,708 (2019 - £5,493,742) and cash deposits amounting to £310,749 (2019 - £159,124).

1825 Financial Planning comprises listed investments amounting to £1,778,224 (2019 - £2,107,004) and cash deposits amounting to £87,151 (2019 - £225,280).

All the fixed assets investments are held in the UK.

The difference between the historical cost (£4,900,011) and the market value of the listed investments (£6,265,932) amounting to £1,365,921 is include within unrestricted funds.

There were no listed investments which comprise over 5% of the value of the portfolio.

The funds are managed on a discretionary basis by investment managers.

10. Debtors

Due within one year
Accrued interest and dividends
Prepayments
Tax recoverable		 2020
£
2,263
-
-
2,263		 2019
£
4,365
1,997
136
6,498

11. Creditors: Amounts falling due within one year

Grants pledged
Accruals		 2020
£
59,910
20,435
80,345		 2019
£
33,000
22,917
55,917

Page 17

BRUCE WAKE CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020

12. Financial instruments

Financial assets
Listed investments at market value
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 2020
£
6,265,932
877,188
7,143,120
2020
£
59,910		 2019
£
7,600,746
742,267
8,343,013
2019
£
33,000

Financial assets measured at amortised cost comprise accrued interest and dividends and tax reclaimable and cash at bank and in hand.

Financial liabilities measured at amortised cost comprise grants pledged.

13. Related party transactions

None of the trustees, who are the key management personnel, receive any remuneration for their position as trustees of the charity.

Mr P K Hems provides administrative and accounting services to the charity and received fees of £14,250 (2019 - £12,500). At 5 April 2020 there was an amount of £3,000 (2019 - £3,000) due to Mr P K Hems.

Mr R G Rowley is a consultant in Freeths LLP, a firm of solicitors, which provides administrative and legal services to the charity. During the year Freeths LLP have received fees of £nil (2019 - £15,300) for the services provided. At 5 April 2020 there was an amount of £nil (2019 - £3,000) due to Freeths LLP.

No trustees were reimbursed any travel expenses during the year (2019 - none).

There were no employees of the charity during the year (2019 - Nil).

Page 18