**Charity number: 1025258** ## **The Geoffrey Watling Charity** **Trustees Report and Financial Statements For the year ended 30 September 2020** ## **The Geoffrey Watling Charity** ## **Contents** ## **Year ended 30 September 2020** ||Page| |---|---| |Trustees Report|1 – 10| |Independent Auditor’s Report to the Trustees|11 – 13| |Consolidated Statement of Financial Activities|14| |Consolidated Balance Sheet|15| |Consolidated Cash Flow|16| |Notes to the Accounts|17 – 28| ## **The Geoffrey Watling Charity** ## **Trustees Report** ## **Year ended 30 September 2020** ## **REFERENCE AND ADMINSTRATIVE DETAILS** |**Charity name**|The Geoffrey Watling Charity| |---|---| |**Charity registration number**|1025258| |**Registered address**|8a Ber Street| ||Norwich| ||Norfolk| ||NR1 3EJ| |**Trustees**|A C Watling (Chairman)| ||S P Watling| ||R S Marks| ||D J Lundean| |**Grants and Charity**|| |**Administrator**|A. Handley| |**Bankers**|Barclays Bank Plc| ||Barclay’s Business Centre| ||3 St. James Court| ||Whitefriars| ||Norwich| ||NR3 1RJ| |**Property investment advisors**|Brown & Co| ||25-26 Tuesday Market Place| ||Kings Lynn| ||Norfolk| ||PE30 1JJ| |**Investment advisors**|Sarasin & Partners LLP| ||Juxon House| ||100 St Paul’s Churchyard| ||London| ||EC4M 8BU| |**Auditor**|Lovewell Blake LLP| ||Bankside 300| ||Peachman Way| ||Broadland Business Park| ||Norwich| ||Norfolk| ||NR7 0LB| 1 ## **The Geoffrey Watling Charity** ## **Trustees Report** ## **Year ended 30 September 2020** The Trustees have pleasure in presenting their report and audited consolidated financial statements for the year ended 30 September 2020. The report and financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s Settlement Deed (as amended), the Charities Act 2011 and the Statement of Recommended Practice (SORP) applicable to charities preparing their (consolidated) accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, published in October 2019. The accounts presented here are the consolidated accounts of the Charity and of Geoffrey Watling (Norwich) Limited, the Company wholly-owned by the Charity. ## **OBJECTIVES AND ACTIVITIES OF THE CHARITY** The Deed of Settlement dated 4 August 1993, as amended, defines the ‘object’ of The Geoffrey Watling Charity (‘GWC’) as: - “To pay or apply the annual income of the Charity’s funds to such charity or charities or for such charitable purpose or purposes as the Trustees shall from time to time in their absolute discretion determine.” The geographical ‘area of benefit’ is ‘the County of Norfolk and the Waveney District of Suffolk’. The means by which the Charity seeks to meet this object are: 1. to invest optimally the assets of the Charity and its wholly-owned Company, (the “Group”) 2. to make grants to organisations with a charitable purpose whose beneficiaries reside within the area of benefit in order to enhance their welfare. Optimum investment of the Group’s assets The Trustees and Directors of GWN are particularly mindful that their ability to allocate the Charity’s funds now and in the future to make grants to others in need is only possible if they manage the Charity’s and Company’s (the “Group’s”) investments effectively. The value of the investments at 30 September 2020 was £16,460,161 comprising £2,488,000 in directly-owned fixed assets and £13,972,161 in quoted investments and cash. The Trustees have decided that their two overall objectives in this area are: - as far as is practicable, to treat current and future beneficiaries equally, given that the Charity is intended to exist in the long-term, although not necessarily in perpetuity - to achieve an optimum balance between risk and total return in order to set a consistent short-to medium-term budget for expenditure on its charitable objectives and priorities. 2 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** Optimum investment of the Group’s assets (continued) During the year to 30 September 2020, the Trustees approved an investment policy developed in conjunction with the Charity’s discretionary investment managers, Sarasin & Partners LLP. ## Grant-making The Charity aims to make the greatest positive impact for the good of its beneficiaries to the best of its ability with the finite resources it has. To this end, the Charity makes grants to other organisations with an approved charitable purpose. Trustees consider all applications they receive and consider each on its own merits and within the terms of the Deed of Settlement. They have no priority areas for grant-making. ## **ACHIEVEMENTS AND PERFORMANCE** This section of the Report aims to give a balanced account of how well the activities of the Charity, as set out in the previous section on ‘Objectives and activities’, performed and the extent to which the Charity met its objectives and made a difference for its beneficiaries. It does this under the following headings, the Charity’s principal activities: - grant-making to other organisations with charitable purposes - the optimum investment and deployment of the Charity’s assets ## Grant-making During the year 2019/20, the Charity authorised spending of £466,200 on 120 grants (2019: £483,170: 131 grants) to other bodies with a charitable purpose, _(Note 7 to the accounts),_ taking into account a small number of grants which were withdrawn during the respective years. The cost to the charity of managing these activities was £33,046 (2019: £25,739), _(Note 5 to the accounts)_ . 3 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** ## Grant-making (continued) An analysis of the grants made for various categories of purpose is set out in Note 7. The following table shows the percentage distribution of monies granted, not including the grants withdrawn in 2019/20. ||**Percentage**|**of**|**total**|**grants**| |---|---|---|---|---| |**Category of grant made**|**awarded (%)**|||| |Social and welfare|48.4|||| |Churches and historic buildings|17.8|||| |Education and arts|17.8|||| |Environment|5.6|||| |Medical|4.8|||| |Sporting|4.0|||| |Infrastructure|1.6|||| Trustees often find it difficult, if not impossible, to assess the direct beneficial effect of their grant-making, not least because there are so many related and unrelated influences on individuals and other organisations. In these circumstances, Trustees focus on: - feedback from beneficiaries - observing the effect on organisations to which grants have been made - finding and considering any research evidence relating to the likely effect of a planned intervention supported by a grant. The optimum investment of the Group’s assets and its financial performance This section reviews the performance of the Group’s consolidated investment portfolio. The table overleaf shows the performance in 2019/20 and 2018/19 of the investment portfolio, comprising directly-owned property, quoted investments and ‘surplus cash’. The overall value of the investments increased in 2019/20 by 2.1%. Overall, the total return (capital gain and income) on assets invested was 5.9%, compared with 7.4% in 2018/19. In terms of liquidity, £551,796 (3.3%) of this return was received as income. Trustees meet discretionary investment manager and adviser, Sarasin & Partners LLP, once a year for a formal review of their performance and to discuss likely future issues, including risk. The property portfolio is managed by John Weston, MRICS, of Brown & Co who reports to the Director of the Company. 4 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** ||**2019/20**|2018/19| |---|---|---| |**FUND FOR INVESTMENT**||| |Property|**2,448,000**|3,313,000| |Quoted investments|**13,453,006**|12,083,396| |Surplus cash|**519,155**|659,933| |Long-term loans|**567,934**|619,359| |**Total**|**17,028,095**|16,675,688| |**TOTAL RETURN**||| |(Percentages calculated||| |against opening Fund||| |balances)||| |**From Property and loans:**||| |As net income|**223,848**|307,254| |Return|**5.7%**|7.7%| |**From Quoted Investments**||| |**and Surplus Cash:**||| |As net income|**327,948**|318,517| |As capital gain|**425,299**|556,118| |In total|**753,247**|874,635| |Return|**5.9%**|7.3%| |**Combined**||| |As net income|**551,796**|625,771| |As capital gain|**425,299**|556,118| |In total|**977,095**|1,181,889| |Return|**5.9%**|7.4%| 5 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** The Trustees believe that the whole of this section of their Report demonstrates that they have complied with their duty to have due regard to the Charity Commission’s public benefit guidance. ## **FINANCIAL REVIEW** The previous section of this Report reviewed the financial performance of the Charity’s investments; this section reviews the Charity’s overall financial position at the year end, including that of the Company. There have been no major unforeseen events during the year which have affected the Charity’s finances to any significant extent. Financial planning, monitoring and control have been of a good standard. The impact of the coronavirus pandemic has not hit the Group badly. The effect of the various lockdowns has resulted in slightly lower income from the Company’s investment properties, but this has been offset by the gain on the sale of the Company’s property in Cathedral Street, Norwich. During the year, the Company sold a significant part of its property investment portfolio. The proceeds of the sale were reinvested into the Charity’s non-property investment portfolio. In that portfolio, there is an adoption of an overall strategic asset allocation to balance expected return and risk over the whole portfolio. The Group remains in a strong financial position at the end of the year with net assets of £17,021,162. The valuation of the Charity’s investment portfolio as at 11 March 2021 was £14,041,600. The comparable valuation as at 30 September 2020 was £13,453,101. ## Risk management Trustees also monitor closely the risks to which the Charity is exposed, many of which are not directly financial in nature but which, if they materialise, could have financial consequences. A Risk Assessment Register for the company and charity was presented at the meeting of the Trustees, held on 6 December 2019 and approved at their meeting on 6 March 2020. The Register sets down the probability and impact of each foreseeable risk and the preventative or mitigating actions which should be taken. The trustees are responsible for the maintenance, and at least annual review, of the Register. 6 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** ## Reserves policy The policy of the Trustees is to ensure that it holds net current assets sufficient to cover the operational running costs of the Charity for a six month period. This includes sums sufficient to pay out all approved grants. At the year-end, free reserves (being net current assets) held within the general fund and investment fund totalled £558k (2019: £483k) which amounts to 9 months of expenditure. In addition a further £13.4m (2019: £12m) was held within the investment portfolio which is retained to generate a return on investment in accordance with the investment policy. The Charity does not have an explicit policy on social, environmental or ethical matters in relation to its investments. Rather it subscribes to the policy of its discretionary investment managers, Sarasin & Partners (this being a factor in their selection for this role by the Trustees). ## **PLANS FOR FUTURE PERIODS** During the year work was carried out to update the Charity’s website and application process and this was completed by the end of the year, the new website being launched at the beginning of 2021. Further discussion of future planning will be reviewed when current restrictions are removed and life returns to normal. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Charity is an unincorporated association with significant invested funds. It also wholly owns Geoffrey Watling (Norwich) Limited, a registered Company. The Company directly owns properties, principally in Hemsby, Norfolk. The Company remits annually an appropriate and permitted amount of its profits through Gift Aid to the Charity. When a new Trustee is appointed, there is a short briefing procedure covering relevant governance issues. The Trustees meet formally every three months, with the appropriate officers and advisers, to agree plans, programmes and budgets; agree and review policies; and to monitor progress and review performance. During the last year, most of the meetings of the trustees have been held in a virtual environment. The trustees have had to adapt to the challenging circumstances of lockdown and social distancing necessitated by the pandemic. The Director of the Company meets with the company’s property adviser about once a month and visits the Company’s properties particularly during the summer season at Hemsby. They also attend regular Coastal Protection Meetings organised by Great Yarmouth Borough Council. During the first lockdown beginning in March meetings did not take place but continued once restrictions were eased. 7 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** ## Connected Charities There are no connected Charities. ## **REFERENCE AND ADMINISTRATIVE DETAILS** The Geoffrey Watling Charity is a registered Charity, number 1025258. It is an unincorporated association. The Board of Trustees comprises not fewer than 3 and not more than 6 Trustees who are appointed by the Board at the time. Those who served in these capacities during 2019/20 and/or are Trustees at the time of the approval of these financial statements are shown in the table below. Alan Watling is Chairman of the Board. Geoffrey Watling (Norwich) Limited is a Registered Company (number 00957457), the shares of which are owned wholly by The Geoffrey Watling Charity. Alan Watling is the sole Director of the Company and is also a Trustee of the Geoffrey Watling Charity. Yvonne Johnston is the Company Secretary, appointed to the role on 1 April, 2015. ## Trustees ## **Trustee** ## **Period of office** Alan C Watling To August 2021 Susan P Watling To June 2023 Richard S Marks To December 2023 David J Lundean To March 2022 8 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** John Weston, MRICS, and Registered Valuer, of Brown & Co LLP, is the property adviser to the Company and Charity, responsible for the management of the invested estate and for advising the Trustees on these matters. His services are received through a service level agreement with Brown & Co LLP. In addition, the Trustees employ two senior officers to advise them and to carry out their approved plans: Yvonne Johnston Accountant Armana Handley Grants and Charity Administrator ## **Trustees and key management personnel** The Trustees consider that the Board of Trustees is responsible for directing and controlling the Charity and running and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 10 to the accounts. Trustees are required to disclose all relevant interests to the Grants and Charity Administrator and to their colleagues and to withdraw from decisions where a conflict of interest arises. The remuneration of the Charity’s Accountant and Administrator is reviewed annually. ## **Fundraising Standards Information** The Charity does not participate in fundraising activities or instruct anyone to act on their behalf with regards to fundraising. ## **True and Fair override** The accounts (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 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 Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. ## **Statement of Trustees’ Responsibilities** The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and group and of its incoming resources and application of resources of the charity and the group for that period. 9 ## **The Geoffrey Watling Charity** ## **Trustees Report Continued** ## **Year ended 30 September 2020** ## **Statement of Trustees’ Responsibilities (continued)** In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP 2019 (FRS102); - make judgments and estimates that are reasonable and prudent; - state whether applicable 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 and group will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and group 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. ## **Thanks** Thanks are due to Yvonne Johnston, Armana Handley and John Weston and his team. Without their dedication and skill, the Charity’s work would not be as effective and valued as it is. FOR AND ON BEHALF OF THE TRUSTEES Alan Watling Chairman of the Board of Trustees 8A Ber Street Norwich, NR1 3EJ 12 March 2021 10 ## **The Geoffrey Watling Charity** ## **Independent Auditor’s Report to the Trustees** ## **Year ended 30 September 2020** ## **Opinion** We have audited the financial statements of The Geoffrey Watling Charity (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 30 September 2020 which comprise the consolidated statement of financial activities, consolidated balance sheet, consolidated cash flow 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 UK 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 group’s and parent charity’s affairs as at 30 September 2020, and of the group’s incoming resources and application of resources, including its income and expenditure, 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 group and parent 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** 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 appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group or parent charity’s ability to 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. 11 ## **The Geoffrey Watling Charity** ## **Independent Auditor’s Report to the Trustees** ## **Year ended 30 September 2020** ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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. ## **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 financial statements is inconsistent in any material respect with the trustees’ report; or - sufficient accounting records have not been kept; or - the parent charity’s financial statements are not in agreement with the accounting records and returns; 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 pages 9 and 10, 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 misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so. 12 ## **The Geoffrey Watling Charity** ## **Independent Auditor’s Report to the Trustees** ## **Year ended 30 September 2020** ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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. A further description of our responsibilities for the audit of the financial statements is located 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 anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Lovewell Blake LLP Statutory Auditor Date: 21 May 2021 Bankside 300 Peachman Way Broadland Business Park Norwich Norfolk, NR7 0LB _Lovewell Blake LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._ 13 ## **The Geoffrey Watling Charity** ## **Consolidated Statement of Financial Activities** ## **Year ended 30 September 2020** **----- Start of picture text -----**
Unrestricted
General Investment Unrestricted
Note fund fund 2020 Total 2019
£ £ £ £
Income and endowments from:
Investments 2 726,435 - 726,435 774,117
Total income and endowments 726,435 - 726,435 774,117
Expenditure on:
Raising Funds
Investment management costs 4 188,082 68,179 256,261 197,398
Charitable Activities 5 499,246 - 499,246 508,960
Total expenditure 687,328 68,179 755,507 706,358
Net income / (expenditure) before revaluation of investments 39,107 (68,179) (29,072) 67,759
Net gains/(losses) on investment portfolio - 425,299 425,299 556,118
Net gains/(losses) on investment properties 3 128,450 - 128,450 -
Net income and net movement in funds 167,557 357,120 524,677 623,877
Reconciliation of funds:
Total funds brought forward 762,064 15,734,421 16,496,485 15,872,608
Total funds carried forward 929,621 16,091,541 17,021,162 16,496,485
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The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes set out on pages 17 to 28 form an integral part of these financial statements. 14 ## **The Geoffrey Watling Charity** ## **Consolidated Balance Sheet** ## **As at 30 September 2020** **----- Start of picture text -----**
Notes 2020 2019
Charity Group Charity Group
£ £ £ £
Fixed Assets
Tangible fixed assets 12 265,000 2,539,201 265,000 3,362,534
Investments 13 13,453,006 13,453,006 12,083,396 12,083,396
Subsidiary 13 2,847,938 - 2,847,938 -
Cash deposits 95 95 6,417 6,417
16,566,039 15,992,302 15,202,751 15,452,347
Current Assets
Debtors : amounts falling
due within one year 14 70,982 127,844 257,805 120,119
Debtors : amounts falling
due after one year 14 - 506,975 - 563,465
Cash at bank and in hand 519,155 808,175 659,932 955,706
590,137 1,442,994 917,737 1,639,290
Current Liabilities
Creditors : Amounts falling
due within one year 15 (1,244,918) (377,634) (659,935) (592,152)
Net current assets / (liabilities) (654,781) 1,065,359 257,802 1,047,138
Total assets less current liabilities 15,911,258 17,057,662 15,460,553 16,499,485
Creditors : Amounts falling
due after one year 15 (36,500) (36,500) (3,000) (3,000)
Total net assets 15,874,758 17,021,162 15,457,553 16,496,485
Funds of the charity
Unrestricted funds
General 16 779,247 929,621 719,162 762,064
Investment 16 15,095,511 16,091,541 14,738,391 15,734,421
Total charity funds 15,874,758 17,021,162 15,457,553 16,496,485
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These accounts were approved by the Trustees on 12 March 2021. A C Watling R S Marks The notes set out on pages 17 to 28 form an integral part of these financial statements. 15 ## **The Geoffrey Watling Charity** ## **Consolidated Cash Flow** ## **As at 30 September 2020** **----- Start of picture text -----**
Charity Group Charity Group
2020 2020 2019 2019
£ £ £ £
Net cash flow from operating activities 475,355 (793,957) (129,495) (455,503)
Cash flow from investing activities
Payments to acquire tangible fixed assets - (6,401) - (7,918)
Payments to acquire investments (1,033,380) (1,033,380) (18,390) (18,390)
Receipts from disposal of Fixed Assets - 953,450 - 3,849
Rents received from investment properties 18,079 308,949 12,000 365,085
Interest received 1,454 26,093 1,464 30,521
Investment portfolio income 391,393 391,393 378,511 378,511
Net cash flow from investing activities (622,454) 640,104 373,585 751,658
Net (decrease) / increase in cash and cash
equivalents (147,099) (153,853) 244,090 296,155
Cash and cash equivalents at 1 October 2019 666,349 962,123 422,259 665,968
Cash and cash equivalents at 30 September 2020 519,250 808,270 666,349 962,123
Reconciliation of net income / (expenditure) to net
cash flow from operating activities
Net income for the year 417,205 524,677 624,206 623,877
Rents received from investment properties (18,079) (308,949) (12,000) (365,085)
Interest receivable (1,454) (26,093) (1,464) (30,521)
Investment portfolio income (391,393) (391,393) (378,511) (378,511)
Depreciation of tangible fixed assets - 4,734 - 5,951
Investment management fees 89,069 89,069 84,326 84,326
(Gains) in investments (425,299) (425,299) (556,118) (556,118)
Gain on sale of investment property - (128,450) - -
(Increase) / decrease in debtors 186,823 48,765 (72,703) 32,366
Increase / (decrease) in creditors 618,483 (181,018) 182,769 128,212
475,355 (793,957) (129,495) (455,503)
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The notes set out on pages 17 to 28 form an integral part of these financial statements. 16 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** 1 **Summary of significant accounting policies** ## **(a) General information and basis of preparation** The Geoffrey Watling Charity is an unincorporated charity in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities remains as described within the Trustees Report on pages 2 to 3. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Practice. The financial statements have been prepared to give a "true and fair" view and we 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 the 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 (FRS102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **(b) Group financial statements** These financial statements consolidate the results of the charity and its wholly owned subsidiary Geoffrey Watling (Norwich) Limited on a line by line basis. A separate Statement of Financial Activities and income and expenditure accounts are not presented for the charity following the exemptions afforded the SORP. 17 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** - 1 **Summary of significant accounting policies (continued)** ## **(c) Funds** All of the charity's funds are unrestricted funds. Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. The Investment Fund was established with the initial transfer of capital from the estate of the late Geoffrey Watling and is unrestricted. The income from the fund is used by the charity to undertake its objectives. ## **(d) Income recognition** All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income and the amount can be measured reliably and it is probable that the income will be received. Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established. ## **(e) Expenditure recognition** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: - Costs of raising funds comprise the costs associated with property and investment management. - Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Irrecoverable VAT is charged as an expense against the general activity category for which expenditure arose. 18 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** 1 **Summary of significant accounting policies (continued)** ## **(e) Expenditure recognition (continued)** Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity. ## **(f) Investment properties** Investment properties where fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in net gains / (losses) on investments in the SoFA. All investment properties owned by the charity are included at fair value. Current Values are based on a valuation undertaken by John Weston of Brown and Co. Property and Business Consultants LLP on 30 September 2018. ## **(g) Tangible fixed assets** Land and property is included at fair value and based on a valuation undertaken by John Weston of Brown and Co. Property and Business Consultants LLP on 30 September 2018. No depreciation is charged as property is subject to regular revaluation and any depreciation is considered to be immaterial. Machinery and office equipment are stated at cost less accumulated depreciation calculated at 25% reducing balance. ## **(h) Investments** Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA, based upon the market value at the period end. In the charity investment in the subsidiary is measured at cost less impairment. The Charity's investment policy is laid out in the Trustees Annual Report. ## **(i) Debtors and creditors receivable / payable within one year** Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure 19 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** 1 **Summary of significant accounting policies (continued)** ## **(j) Debtors receivable after one year** Debtors receivable after one year constitute loans and mortgages which are initially recognised at the transaction price. Subsequently they are measured at amortised cost using the effective interest rate method less impairment. ## **(k) Going concern** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The Trustees have taken into account the impact of COVID-19 on the charity in making this assessment. ## **(l) Cash at bank** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less. ## **(m) 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method 20 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** **----- Start of picture text -----**
General Investment Unrestricted Unrestricted 2019
fund fund 2020 Total Total
£ £ £ £
2 Income from investments
Rental income 308,949 - 308,949 365,085
Deposit interest 1,454 - 1,454 1,464
Interest on loans 24,639 - 24,639 29,057
Investment portfolio income 391,393 - 391,393 378,511
726,435 - 726,435 774,117
3 Realised gains on the disposal of investment properties by Geoffrey Walting (Norwich) Ltd. amounted
to £128,450.
4 Investment management costs
Rent, rates and insurance 22,956 - 22,956 24,692
Repairs and maintenance 53,797 - 53,797 27,563
Wages and National insurance 19,170 - 19,170 17,820
Sundry 18,101 - 18,101 14,501
Management charges 25,122 63,445 88,567 88,408
Legal and professional fees 31,973 - 31,973 1,712
Directors remuneration 12,000 - 12,000 12,000
Depreciation and loss on disposal of assets - 4,734 4,734 5,951
Governance costs (note 6) 4,963 - 4,963 4,751
188,082 68,179 256,261 197,398
5 Analysis of expenditure on charitable activities
Grants (note 7) 416,200 - 416,200 483,220
Donations (note 7) 50,000 - 50,000 -
Salaries 17,291 - 17,291 19,196
Sundry expenses 10,810 - 10,810 1,812
Governance costs (note 6) 4,945 - 4,945 4,732
499,246 - 499,246 508,960
6 Governance costs
Auditor's remuneration:
Audit services - current year 10,000 - 10,000 10,000
- prior year (1,430) - (1,430) (1,720)
Other services 1,250 - 1,250 1,115
Other 88 - 88 88
9,908 - 9,908 9,483
**----- End of picture text -----**
21 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** |**7 Analysis of grants and donations**
The grants and donations recognised during the period are analysed as follows :-
Purpose
Social and Welfare
Churches and Historic Buildings
Education and Arts
Environment
Medical
Sporting
Infrastructure
Grants withdrawn
Total grants|60
22
22
7
6
5
2
124
4
120|**2020**
**£**
280,200
43,000
52,500
25,500
51,500
17,500
9,000
479,200
13,000
466,200|**2019**
**£**
273,160
57,302
60,458
11,300
80,000
12,000
-
494,220
11,000
483,220| |---|---|---|---| All grants and donations authorised during the year were payable to institutions. Below are details of the activities which have been funded by grants and donations authorised of £10,000 or more: |St Martins
Donation Station apprenticeships and support to build skills and confidence
Norfolk Community Law Service
Delivery of debt and welfare services for vulnerable people
Memorial Trust of the 2nd Air Division USAAF
To refurbish and relaunch the Memorial Library at the Forum
Norwich City Community Sports Foundation
To develop Phase 2 of The Nest community sports facility in Norwich
Ted Ellis Trust
To replace 170 metres of Boardwalk at Wheatfen Nature Reserve SSSI
University of East Anglia
Equipment to develop a new test to detect replicating Coronavirus by 9-2020
Norfolk Community Foundation
Donation agreed by the trustees for the Nfk C Fdn Covid 19 Appeal
Centre 81 Limited
To relocate from failing portacabins to a retail warehouse in Gt Yarmouth|£
10,000
10,000
10,000
10,000
10,000
30,000
50,000
50,000
180,000| |---|---| 22 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** ## **8 Net income for the year** |Net income is stated after charging / (crediting):
Depreciation of tangible fixed assets
Gain on fair value movement of investments
(Gain)/Loss on disposal of fixed assets
**9 Auditor’s remuneration**
Audit services - current year
- prior year
Other services|**2020**
**£**
4,734
425,299
(128,450)
**2020**
**£**
10,000
(1,430)
1,250
9,820|**2019**
**£**
4,178
556,118
1,773
**2019**
**£**
10,000
(1,720)
1,115
9,395| |---|---|---| ## **10 Trustees' and key management personnel remuneration and expenses** The trustees did not receive any remuneration from the charity in respect to their roles as trustees during the period. A.C. Watling received gross remuneration of £12,000 (2019: £12,000) from the charity's subsidiary for his role as company director and received reimbursed expenses totalling £184 (2019: £363) through the subsidiary. The total amount of employee benefits received by key management personnel is £48,461 (2019: £49,016). The charity considers all its staff to be key management personnel. ## **11 Staff costs and employee benefits** The average monthly number of employees during the year was three part time individuals, two of which are included in Investment Management Costs and one in Charitable Activities. The total staff costs and employees benefits was as follows: |Wages and salaries
Social security
Pension contributions|**2020**
**Charity**
**Subsidiary**
**Total**
£
£
£
16,250
29,750
46,000
1,041
-
1,041
-
1,420
1,420
17,291
31,170
48,461|**2019**
**Total**
£
46,487
1,209
1,320
49,016| |---|---|---| No employees received total employee benefits (excluding employer pension costs) of more than £60,000 23 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** **----- Start of picture text -----**
Freehold
Investment Tangible Machinery and
12 Tangible Fixed Assets - Group Property Property Office Equipment Total
£ £ £ £
Cost or valuation
As at 1 October 2019 3,341,887 37,000 32,397 3,411,284
Additions - - 6,401 6,401
Disposals (825,000) - - (825,000)
As at 30 September 2020 2,516,887 37,000 38,798 2,592,685
Depreciation
As at 1 October 2019 28,887 - 19,863 48,750
Charge for the period - - 4,734 4,734
Disposals - - - -
As at 30 September 2020 28,887 - 24,597 53,484
Net book value
Total as at 30 September 2020 2,488,000 37,000 14,201 2,539,201
Total as at 1 October 2019 3,313,000 37,000 12,534 3,362,534
Freehold
Investment Tangible
Tangible Fixed Assets - Charity Property Property Total
£ £ £
Cost or valuation
As at 1 October 2019 228,000 37,000 265,000
As at 30 September 2020 228,000 37,000 265,000
Net book value
As at 1 October 2019 228,000 37,000 265,000
As at 30 September 2020 228,000 37,000 265,000
**----- End of picture text -----**
Investment properties and freehold tangible property owned by the charity are included at fair value. Current values are based on a valuation undertaken by John Weston BSc (Hons) MRICS of Brown & Co - Property and Business Consultants LLP on 30 September 2018. The methods and significant assumptions used to ascertain the fair value of £2,525,000 (2019: £3,350,000) for the group of investment and tangible property and £265,000 for the charity investment and tangible property are as follows: Valuation is made in accordance with the RCIS Valuation - Professional Standards and complies with the International Valuation Standards. The basis of the valuation is the estimated amount for which the assets should exchange on the valuation date in an arms length transaction based on vacant possession. The historical cost of investment properties held by the group is £1,369,143 (2019: £2,402,158) and £9,382 regarding tangible property (2019: £9,382). 24 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** ## **13 Investments - Group and Charity** |Cost or valuation
As at 1 October 2019
Additions at cost
Unrealised gains on year end valuation
As at 30 September 2020|Listed
Investments
£
12,083,396
1,033,380
336,230
13,453,006| |---|---| The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date. The investments above are held in the Sarasin Endowments Fund (previously called The Alpha CIF for Endowments Income Fund). ## **Subsidiary** The charity owns 100% of the share capital of Geoffrey Watling (Norwich) Limited (incorporated in England - registration number 0957457). |_Results of Geoffrey Watling (Norwich) Limited_
Investment and property income
Direct costs
Overheads
Gain on disposal of investment property
Profit of the year before tax and gift aid
Gift aid
Net assets|**2020**
**£**
315,509
(92,492)
(50,800)
128,450
300,667
193,193
3,994,343|**2019**
**£**
382,142
(77,959)
(48,694)
-
255,489
255,820
3,886,870| |---|---|---| 25 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** |14 **Debtors : amounts due within one year**
Trade debtors
Other debtors
VAT
Prepayments and accrued income
Amounts due from subsidiary undertakings
**Debtors : amounts due after one year**
Other debtors|**Charity**
**Group**
**2020**
**2020**
**£**
**£**
200
45,850
-
79,312
2,589
2,682
-
-
68,193
-
70,982
127,844
-
506,975|**Charity**
**Group**
**2019**
**2019**
**£**
**£**
123
48,501
-
69,756
1,767
1,767
95
95
255,820
-
257,805
120,119
-
563,465| |---|---|---| Other debtors of £567,934 (2019: £619,359) represent five long-term loans, four of which totalling £340,789 (2019: £348,729) are unsecured and one of £227,144 (2019: £270,630) is secured against property at 2, 4 & 6 Ber Street, Norwich, Norfolk. |**15 Creditors: amounts falling due within one year**
Accruals and deferred income
Other creditors
Accruals for grants payable
Other tax and social security
VAT
Amounts due to subsidiary undertakings
**Creditors: amounts falling due after more than one year**
Accruals for grants payable
**Deferred income**
At 1 October 2019
Additions during the year
Amounts released to income
At 30 September 2020|**Charity**
**Group**
**2020**
**2020**
**£**
**£**
47,891
115,737
6,240
19,197
242,000
242,000
224
700
-
-
948,563
-
1,244,918
377,634
**Charity**
**Group**
**2020**
**2020**
**£**
**£**
36,500
36,500
**Charity**
**Group**
**2020**
**2020**
**£**
**£**
-
57,611
-
52,934
-
(57,611)
-
52,934|**Charity**
**Group**
**2019**
**2019**
**£**
**£**
20,969
97,706
5,000
5,622
486,002
486,002
216
652
-
2,170
147,748
-
659,935
592,152
**Charity**
**Group**
**2019**
**2019**
**£**
**£**
3,000
3,000
**Charity**
**Group**
**2019**
**2019**
**£**
**£**
-
55,075
-
57,611
-
(55,075)
-
57,611| |---|---|---| Income has been deferred as related to rental income invoiced in advance of future periods. 26 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** **----- Start of picture text -----**
16 Funds reconciliation
Unrestricted funds 2020 Unrestricted funds 2019
General Investment General Investment
fund fund Total fund fund Total
£ £ £ £ £ £
Balance at 1 October 2019/2018 762,064 15,734,421 16,496,485 628,360 15,244,248 15,872,608
Income 726,435 - 726,435 774,117 - 774,117
Expenditure (687,328) (68,179) (755,507) (640,413) (65,945) (706,358)
Net gains on investments - 425,299 425,299 - 556,118 556,118
Balance at 30 September 2020/2019 801,171 16,091,541 16,892,712 762,064 15,734,421 16,496,485
Analysis of net assets between funds Unrestricted funds 2020 Unrestricted funds 2019
General General
fund Investment fund Investment
fund Total fund Total
£ £ £ £ £ £
Tangible assets - 2,539,201 2,539,201 - 3,362,534 3,362,534
Investment assets - 13,453,006 13,453,006 - 12,083,396 12,083,396
Cash investment assets - 95 95 - 6,417 6,417
Debtors : due within one year 127,844 - 127,844 120,119 - 120,119
Debtors : due after one year 506,975 - 506,975 563,465 - 563,465
Cash at bank 708,936 99,239 808,175 673,632 282,074 955,706
Creditors: due within one year (377,634) - (377,634) (592,152) - (592,152)
Creditors: due after one year (36,500) - (36,500) (3,000) - (3,000)
801,171 16,091,541 16,892,712 762,064 15,734,421 16,496,485
**----- End of picture text -----**
The Investment Fund was established with the initial transfer of capital from the estate of the late Geoffrey Watling. The income from the fund is used by the charity to undertake its objectives. 27 ## **The Geoffrey Watling Charity** ## **Notes to the Accounts** ## **Year ended 30 September 2020** ## **17 Analysis of changes in net debt** |Cash at bank and in hand
Cash at bank and in hand|**At 1 October**
**2019**
**Cash flows**
**At 30 September**
**2020**
**£**
**£**
**£**
666,349
(147,099)
519,250
**At 1 October**
**2019**
**Cash flows**
**At 30 September**
**2020**
**£**
**£**
**£**
962,123
(153,853)
808,270
**Charity**
**Group**| |---|---| ## **18 Operating lease commitments** The company has the following long term lease commitments in place in relation to its owned properties: ||**Term of Lease**|**Annual Rent**| |---|---|---| |||**£**| |The Dinosaur Park, Hemsby|31/12/2040|10,000| |Olley's Shop, Hemsby|31/12/2100|2,841| |Hollywood Diner, Hemsby|31/12/2025|20,000| |Former Supermarket, Hemsby|02/05/2025|12,500| |Lifeboat Station, Hemsby|31/12/2030|-| ## **19 Commitment** At the year end the Charity had a revenue commitment of £6,766 (2019: £Nil) to complete renovation work on 8 Ber Street. ## **20 Results of the charity** The charity generated total income of £604,119 (2019: £647,795) which includes £193,193 (2019: £255,820) of gift aid from the company. Net increase in funds (after investment gains and losses) of £417,205 (2019: £624,206). 28