Charity number: 1025258
The Geoffrey Watling Charity
Trustees Report and Financial Statements
For the year ended 30 September 2023
The Geoffrey Watling Charity
Contents
Year ended 30 September 2023
| Page | |
|---|---|
| Trustees Report | 1 – 8 |
| Independent Auditor’s Report to the Trustees | 9 – 12 |
| Consolidated Statement of Financial Activities | 13 |
| Consolidated Balance Sheet | 14 |
| Consolidated Cash Flow | 15 |
| Notes to the Accounts | 16 – 27 |
The Geoffrey Watling Charity
Trustees Report
Year ended 30 September 2023
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 | |
| A M Haswell | |
| 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 2023
The Trustees have pleasure in presenting their report and audited consolidated financial statements for the year ended 30 September 2023. 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)
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:
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to invest optimally the assets of the Charity and its wholly-owned Company, (the “Group”).
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to make grants to organisations with a charitable purpose whose beneficiaries reside within the area of benefit in order to enhance their welfare.
The Trustees confirm that they have had due regard to Charity Commission guidance on public benefit.
Optimum investment of the Group’s assets
The Trustees are mindful that their ability to allocate the Charity’s funds now, and in the future, by making grants to others in need, is only possible if they manage the Group’s investments effectively. The value of the investments at 30 September 2023 was £17,111,696 (2022: £16,602,363) comprising £2,800,000 (2022: £3,050,000) in investment property and £14,311,696 (2022: £13,552,363) in quoted investments and cash. The Trustees have decided that their two overall objectives in this area are:
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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.
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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 2023
Optimum investment of the Group’s assets (continued)
The Trustees have an investment policy developed in conjunction with the Charity’s discretionary investment managers, Sarasin and 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
Based on these objectives and activities, the trustees are pleased to report on the achievements and performance of the Charity during the year to 30 September 2023.
Grant-making
During the year 2022/23, the Charity authorised spending of £446,225 on 110 grants and donations to other bodies with a charitable purpose, after taking account of a small number of grants which were withdrawn. (see Note 7 to the financial statements ). Of the £446,225, £421,225 (2022: £533,200) were grants and £25,000 (2022: £20,550) were donations. The cost to the charity of managing these activities was £28,915 (Note 5 to the financial statements).
An analysis of the grants made for various categories of purpose is set out in Note 7 to the financial statements. The following chart shows the relative distribution, by value, of the total grants awarded:
----- Start of picture text -----
Sporting
Medical
Environment
Education and Arts
Social and Welfare
Churches and
Historic Buildings
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3
The Geoffrey Watling Charity
Trustees Report Continued
Year ended 30 September 2023
In assessing the beneficial effect of their grant making, the trustees focus on:
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feedback from beneficiaries
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observing the effect on organisations to which grants have been made
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finding and considering any research evidence relating to the likely effect of a planned intervention supported by a grant
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Paying site visits and attending presentations, at the request of beneficiaries, to see the impact of grants made or applied for.
Investment of the Group’s assets and its financial performance
The Charity’s investment portfolio value increased in the year by £540,338, a significant improvement on the decrease in value for the previous year of £1,459,991. The market value of the investment portfolio at 30 September 2023 was £13,436,564. The most recent valuation, as at 28 February 2024, was £14,615,311.
Overall, the total return (capital gain and income) on assets invested was 6.2%. More than half of this return arose because of the unrealised gain made on revaluing the portfolio of listed investments to their market value at 30 September 2023.
The Charity has, however, always based its grant making decisions on the realised income generated by its investments. In the year to 30 September 2023, £513,610 of income was generated, representing a 3% return on investments. (2022: £590,359, 3.2%).
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.
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 LLP who state that: “The fund does not invest in tobacco manufactures and will also avoid investment in companies that generate significant revenues from the following: alcohol manufactures; armaments; gambling; pornography”. Since at least COP26, Sarasins have also withdrawn investments that could affect global warming.
FINANCIAL REVIEW
During the year ended 30 September 2023 the Group generated net realised income of £435,293, from which it awarded £446,225 in grants and donations. The listed investment portfolio produced a net unrealised gain of £540,338 on revaluation to market value at 30 September 2023, on investments held.
Following storms in November 2023 and January 2024 there has been substantial coastal erosion at Hemsby resulting in the loss of land owned by the group. Following advice from the group’s property investment advisor the valuation of certain investment properties has been reduced by £250,000 and this has been reflected in the group accounts to 30 September 2023.
In total, the net assets of the group increased during the year by £279,406, making the total funds of the Group £17,609,182 at 30 September 2023.
4
The Geoffrey Watling Charity
Trustees Report Continued
Year ended 30 September 2023
The group has also incurred expenditure of approximately £45,000 since 30 September 2023 on dealing with repair works at Hemsby associated with the storm and coastal erosion damage.
Since the year end £500,000 has been invested into higher yielding cash deposits via a new account with Insignis Asset Management Ltd.
Fuller details of the consolidated financial results for the year ended 30 September 2023 can be found in the financial statements.
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 £980k (2022: £969k) which amounts to 16 months of expenditure. In addition, a further £13.4m (2022: £13m) was held within the investment portfolio, which is retained to generate a return on investment in accordance with the investment policy.
PLANS FOR FUTURE PERIODS
Work is continuing to develop and upgrade the operational efficiency of the Charity’s database thus further improving the process of grant application processing.
The Trustees will continue to monitor the company’s investment assets to maximise the effectiveness of the operation of the Charity.
5
The Geoffrey Watling Charity
Trustees Report Continued
Year ended 30 September 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Geoffrey Watling Charity is a registered Charity, number 1025258. It is an unincorporated association with significant invested funds.
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. 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.
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 2022/23 and/or are Trustees at the time of the approval of these financial statements are shown in the table below.
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. The Director of the Company meets with the Company’s property adviser on a regular basis and visits the Company’s properties particularly during the summer season at Hemsby.
Alan Watling is Chairman of the Board.
Trustees
Trustee Period of office
Alan C Watling To August 2024 Susan P Watling To June 2026 Richard S Marks To December 2026 David J Lundean To March 2025 Alexandra Haswell To December 2024
6
The Geoffrey Watling Charity
Trustees Report Continued
Year ended 30 September 2023
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 financial statements.
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.
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 first 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. The last review was approved at the meeting of the Trustees on 25 November 2022 with a further partial review undertaken in December 2023.
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.
7
The Geoffrey Watling Charity
Trustees Report Continued
Year ended 30 September 2023
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. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2019 (FRS102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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
8[th] March 2024
8
The Geoffrey Watling Charity
Independent Auditor’s Report to the Trustees
Year ended 30 September 2023
Opinion
We have audited the financial statements of The Geoffrey Watling Charity (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 30 September 2023 which comprise the consolidated statement of financial activities, consolidated balance sheet, consolidated cash flow and notes to the financial statements, including 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:
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give a true and fair view of the state of the group’s and parent charity’s affairs as at 30 September 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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
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 group and parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
9
The Geoffrey Watling Charity
Independent Auditor’s Report to the Trustees
Year ended 30 September 2023
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. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:
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the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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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 8, 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 group 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.
10
The Geoffrey Watling Charity
Independent Auditor’s Report to the Trustees
Year ended 30 September 2023
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 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:
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Enquiry of management and those charged with governance;
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Enquiry of entity staff compliance functions to identify any instances of non-compliance with laws and regulations;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of operations and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
11
The Geoffrey Watling Charity
Independent Auditor’s Report to the Trustees
Year ended 30 September 2023
A further description of our responsibilities is available on the FRC’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. 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: 19 April 2024
Bankside 300 Peachman Way Broadland Business Park Norwich Norfolk, NR7 0LB
Lovewell Blake 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.
12
The Geoffrey Watling Charity
Consolidated Statement of Financial Activities
Year ended 30 September 2023
| Note Income and endowments from: Legacy received 2 Investments 3 Total income and endowments Expenditure on: Raising Funds Investment management costs 4 Charitable Activities 5 Total expenditure Net income / (expenditure) before revaluation of investments Net (losses)/gains on investment portfolio Loss on revaluation of properties Net income and net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
General fund Investment fund 2023 Total £ £ £ - - - 716,378 - 716,378 716,378 - 716,378 178,748 73,422 252,170 475,140 - 475,140 653,888 73,422 727,310 62,490 (73,422) (10,932) - 540,338 540,338 - (250,000) (250,000) 62,490 216,916 279,406 1,098,688 16,231,088 17,329,776 1,161,178 16,448,004 17,609,182 Unrestricted |
Unrestricted 2022 £ 1,400 746,408 |
|---|---|---|
| 747,808 | ||
| 212,786 579,663 |
||
| 792,449 | ||
| (44,641) (1,459,991) - |
||
| (1,504,632) 18,834,408 |
||
| 17,329,776 |
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 16 to 27 form an integral part of these financial statements.
13
The Geoffrey Watling Charity
Consolidated Balance Sheet
As at 30 September 2023
| Notes Fixed Assets Tangible fixed assets (including investment properties) 12 Investments 13 Subsidiary 13 Current Assets Debtors : amounts falling due within one year 14 Debtors : amounts falling due after one year 14 Cash deposits Cash at bank and in hand Current Liabilities Creditors : Amounts falling due within one year 15 Net current assets Total assets less current liabilities Total net assets Funds of the charity Unrestricted funds General 16 Investment 16 Total charity funds |
Charity Group £ £ 330,000 2,892,933 13,436,564 13,436,564 2,847,938 - 16,614,502 16,329,497 20,107 79,274 - 302,012 33,122 33,122 842,010 1,309,280 895,239 1,723,688 (1,338,289) (444,003) (443,050) 1,279,685 16,171,452 17,609,182 16,171,452 17,609,182 469,478 1,161,178 15,701,974 16,448,004 16,171,452 17,609,182 2023 |
Charity Group £ £ 330,000 3,147,244 12,998,481 12,998,481 2,847,938 - 2022 |
|---|---|---|
| 16,176,419 16,145,725 169,601 201,300 - 299,814 501,777 501,777 52,105 577,491 |
||
| 723,483 1,580,382 (1,262,177) (396,331) |
||
| (538,694) 1,184,051 15,637,725 17,329,776 |
||
| 15,637,725 17,329,776 |
||
| 402,667 1,098,688 15,235,058 16,231,088 |
||
| 15,637,725 17,329,776 |
These accounts were approved by the Trustees and authorised for issue on 8 March 2024, and signed on behalf of the by:
A C Watling Chairman of Board of Trustees
The notes set out on pages 16 - 27 form an integral part of these financial statements.
14
The Geoffrey Watling Charity
Consolidated Cash Flow
As at 30 September 2023
| Net cash flow from operating activities (below) Cash flow from investing activities Payments to acquire tangible fixed assets Payments to acquire investments Rents received from investment properties Interest received Investment portfolio income Net cash flow from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 October 2023 Cash and cash equivalents at 30 September 2023 Reconciliation of net income / (expenditure) to net cash flow from operating activities Net income /(expenditure) for the year Rents received from investment properties Interest receivable Investment portfolio income Depreciation of tangible fixed assets Investment management fees Losses / (gains) on revaluation of investments Losses on revaluation of investment properties Decrease in debtors Increase in creditors |
Charity Group 2023 2023 £ £ (111,396) (453,244) - - - - 25,363 284,202 13,638 38,530 393,645 393,645 432,646 716,378 321,250 263,134 553,882 1,079,268 875,132 1,342,402 533,727 279,406 (25,363) (284,202) (13,638) (38,530) (393,645) (393,645) - 4,311 102,255 102,255 (540,338) (540,338) - 250,000 149,494 119,828 76,112 47,672 (111,396) (453,244) |
Charity Group 2022 2022 £ £ (326,612) (607,886) - (9,139) (36,433) (36,433) 17,745 329,805 1,979 23,598 393,005 393,005 |
|---|---|---|
| 376,296 700,837 |
||
| 49,684 92,951 504,198 986,317 |
||
| 553,882 1,079,268 |
||
| (1,510,625) (1,504,632) (17,745) (329,805) (1,979) (23,598) (393,005) (393,005) - 5,749 109,235 109,235 1,459,991 1,459,991 - - 20,568 66,399 6,948 1,781 |
||
| (326,612) (607,886) |
The notes set out on pages 16 to 27 form an integral part of these financial statements.
15
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
- 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.
16
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
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.
17
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
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 grant. 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 owned by the company are included at open market value. Current values are based on a valuation undertaken by John Weston of Brown and Co - Property and Business Consultants LLP on 30 September 2021. Following the impact of coastal erosion the valuation of the investment properties have been reduced by £250,000.
(g) Tangible fixed assets
Land and property is included at fair value with changes in fair value recognised as net gains / (losses) on investment in the SOFA, and current value is based on a valuation undertaken by John Weston of Brown and Co. Property and Business Consultants LLP on 30 September 2021. 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.
The SOFA includes net gains and losses arising on revaluation and disposals throughout the year together with rebates received from investment managers.
The Charity's subsidiary is included at deemed cost based on the net asset value of the Company at the date of transfer from the estate of the late Geoffrey Watling, less any 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.
18
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
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.
(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.
(n) Defined contribution plans
Contributions as defined contribution plans are recognised as an expense in the period in which the related service is provided.
19
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
| 2 Donations and legacies Legacy received 3 Income from investments Rental income Deposit interest Interest on loans Investment portfolio income 4 Investment management costs Rent, rates and insurance and utilities Repairs and maintenance Wages and National Insurance Sundry Management charges Legal and professional fees Directors remuneration Depreciation and loss on disposal of assets Governance costs (note 6) 5 Analysis of expenditure on charitable activities Grants (note 7) Donations (note 7) Salaries Sundry expenses Governance costs (note 6) 6 Governance costs Auditor's remuneration: Audit services - current year - prior year Other services Other |
General fund Investment fund Unrestricted 2023 Total £ £ £ - - - £ £ £ 284,202 - 284,202 13,638 - 13,638 24,892 - 24,892 393,645 - 393,645 716,378 - 716,378 £ £ £ 31,244 - 31,244 48,462 - 48,462 22,950 - 22,950 20,685 - 20,685 27,362 69,111 96,473 3,238 - 3,238 15,000 - 15,000 - 4,311 4,311 9,806 - 9,806 178,748 73,422 252,170 £ £ £ 421,225 - 421,225 25,000 - 25,000 20,376 - 20,376 1,622 - 1,622 6,917 - 6,917 475,140 - 475,140 £ £ £ 13,500 - 13,500 400 - 400 2,740 - 2,740 83 - 83 16,723 - 16,723 |
Unrestricted 2022 Total £ 1,400 |
|---|---|---|
| £ 329,805 1,979 21,619 393,005 |
||
| 746,408 | ||
| £ 31,116 22,292 21,600 14,582 96,284 1,820 14,000 5,749 5,343 |
||
| 212,786 | ||
| £ 533,200 20,550 18,963 1,620 5,330 |
||
| 579,663 | ||
| £ 10,100 (820) 1,310 83 |
||
| 10,673 |
20
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
7 Analysis of grants and donations
| Analysis of grants and donations | ||
|---|---|---|
| The grants and donations recognised during the period are analysed as follows :- Purpose Number Social and Welfare 62 Churches and Historic Buildings 21 Education and Arts 21 Environment 5 Medical 4 Sporting 5 Infrastructure - 118 Grants withdrawn 8 Total grants and donations 110 |
2023 2022 £ £ 265,150 41.5% 247,050 66,000 18.0% 76,500 72,775 28.0% 67,700 17,000 4.1% 47,000 30,800 7.3% 109,500 15,000 0.9% 15,000 - 4,000 466,725 1 566,750 20,500 13,000 446,225 553,750 |
|
| 566,750 | ||
| 13,000 | ||
| 553,750 |
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:
| £10,000 or more: | ||
|---|---|---|
| £ | ||
| Norwich Historic Churches Trust | St Margaret De Westwick conservation project | 10,000 |
| Big C | Support for eight sites in Norfolk and Waveney | 10,000 |
| St Martins | Donation for St Martins | 10,000 |
| Norfolk Accident Rescue Service | Cardiac arrest defibrillator monitor | 10,000 |
| Multiple Sclerosis Therapy Centre Norfolk | Seven Motomed forced activity bikes | 10,800 |
| St Mary Magdalene Parish Church | New doors and work to the church tower | 10,000 |
| YMCA Norfolk | Life Ready Great Yarmouth training programme | 12,500 |
| National Centre for Writing | To provide new spaces at Dragon Hall, Norwich | 15,000 |
| Culture and Events Team Norwich City Council | Refurbishment of The Halls arts venue | 20,000 |
| Centre 81 Limited | Converting activity room and central atrium | 25,000 |
| Thornage Hall Independent Living | Orchard Lodge new building | 25,000 |
21
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
8 Net income for the year
Net income is stated after charging / (crediting):
| Depreciation of tangible fixed assets Gain/(loss) on fair value movement of investments 9 Auditor’s remuneration Audit services - current year - prior year Other services |
2023 £ 4,311 540,338 2023 £ 13,500 400 2,740 16,640 |
2022 £ 5,749 (1,459,991) |
|---|---|---|
| 2022 £ 10,100 (820) 1,310 |
||
| 10,590 |
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 £15,000 (2022: £14,000) from the charity's subsidiary for his role as company director and received reimbursed expenses totalling £237 (2022: £178) through the subsidiary.
The total amount of employee benefits received by key management personnel is £58,326 (2022: £54,563). 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 |
Charity Subsidiary £ £ 19,000 36,250 1,376 - - 1,700 20,376 37,950 |
2023 Total £ 55,250 1,376 1,700 58,326 |
2022 Total £ 51,700 1,263 1,600 |
|---|---|---|---|
| 54,563 |
No employees received total employee benefits of more than £60,000 (2022: £nil).
22
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
| 12 Tangible Fixed Assets - Group Cost or valuation As at 1 October 2022 Revaluation As at 30 September 2023 Depreciation As at 1 October 2022 Charge for the period As at 30 September 2023 Net book value Total as at 30 September 2023 Total as at 30 September 2022 Tangible Fixed Assets - Charity Cost or valuation As at 1 October 2022 As at 30 September 2023 Net book value As at 1 October 2022 As at 30 September 2023 |
Freehold Investment Property Tangible Property Machinery and Office Equipment £ £ £ 3,078,887 80,000 44,770 (250,000) - - |
Total £ 3,203,657 (250,000) |
|---|---|---|
| 2,828,887 80,000 44,770 |
2,953,657 | |
| 28,887 - 27,526 - - 4,311 |
56,413 4,311 |
|
| 28,887 - 31,837 |
60,724 | |
| 2,800,000 80,000 12,933 |
2,892,933 | |
| 3,050,000 80,000 17,244 |
3,147,244 | |
| Freehold Investment Property Tangible Property £ £ 250,000 80,000 250,000 80,000 250,000 80,000 250,000 80,000 |
Total £ 330,000 |
|
| 330,000 | ||
| 330,000 | ||
| 330,000 |
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 2021. Following the impact of ongoing coastal erosion the valuation of the investment properties have been reduced by £250,000.
The methods and significant assumptions used to ascertain the fair value of £2,880,000 (2022: £3,130,000) for the group of investment and tangible property and £330,000 (2022: £330,000) 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 (2022: £1,369,143) and £9,382 regarding tangible property (2022: £9,382).
23
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
13 Investments - Group and Charity
| Investments - Group and Charity | |
|---|---|
| Cost or valuation As at 1 October 2022 Unrealised gains on year end valuation As at 30 September 2023 |
Listed Investments £ 12,998,481 438,083 |
| 13,436,564 |
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 Loss on revaluation of investment properties Profit of the year before tax and gift aid Gift aid Net assets |
2023 £ 283,397 (113,621) (65,088) (250,000) (145,312) 109,009 4,285,670 |
2022 £ 333,678 (67,651) (57,678) - |
|---|---|---|
| 208,349 | ||
| 202,354 | ||
| 4,539,991 |
24
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
| 14 Debtors : amounts due within one year Trade debtors Other debtors and prepayments VAT Amounts due from subsidiary undertakings Debtors : amounts due after one year Other debtors |
Charity Group 2023 2023 £ £ 100 51,217 10,998 28,057 - - 9,009 - 20,107 79,274 £ £ - 302,012 |
Charity Group 2022 2022 £ £ 6,100 70,206 - 127,792 1,147 3,302 162,354 - |
|---|---|---|
| 169,601 201,300 |
||
| £ £ - 299,814 |
Other debtors include £312,193 (2022: £421,235) representing four long-term loans, all of which are unsecured.
| 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 Deferred income At 1 October 2022 Additions during the year Amounts released to income At 30 September 2023 |
Charity Group 2023 2023 £ £ 23,674 105,680 - 15,130 307,250 307,250 307 958 1,790 14,985 1,005,268 - 1,338,289 444,003 Charity Group 2023 2023 £ £ - 60,968 - 66,086 - (60,968) - 66,086 |
Charity Group 2022 2022 £ £ 27,953 101,105 - 14,398 279,000 279,000 277 828 1,000 1,000 953,947 - |
|---|---|---|
| 1,262,177 396,331 |
||
| Charity Group 2022 2022 £ £ - 59,940 - 60,968 - (59,940) |
||
| - 60,968 |
Income has been deferred as related to rental income invoiced in advance of future periods.
25
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
16 Funds reconciliation
| Balance at 1 October Income Expenditure Net gains / (losses) on investments Losses on revaluation of properties Balance at 30 September Analysis of net assets between funds Tangible assets Investment assets Debtors : due within one year Debtors : due after one year Cash deposits Cash at bank Creditors: due within one year |
Unrestricted funds 2023 General fund Investment fund Total £ £ £ 1,098,688 16,231,088 17,329,776 716,378 - 716,378 (653,888) (73,422) (727,310) - 540,338 540,338 - (250,000) (250,000) 1,161,178 16,448,004 17,609,182 General fund Investment fund Total £ £ £ - 2,892,933 2,892,933 - 13,436,564 13,436,564 79,274 - 79,274 302,012 - 302,012 33,122 - 33,122 1,190,773 118,507 1,309,280 (444,003) - (444,003) 1,161,178 16,448,004 17,609,182 Unrestricted funds 2023 |
General fund Investment fund £ £ 1,065,810 17,768,598 747,808 - (714,930) (77,519) - (1,459,991) - - 1,098,688 16,231,088 General fund Investment fund £ £ - 3,147,244 - 12,998,481 201,300 - 299,814 - 501,777 - 492,128 85,363 (396,331) - 1,098,688 16,231,088 Unrestricted funds Unrestricted funds |
Total £ 18,834,408 747,808 (792,449) (1,459,991) - 2022 |
|---|---|---|---|
| 17,329,776 | |||
| Total £ 3,147,244 12,998,481 201,300 299,814 501,777 577,491 (396,331) 2022 |
|||
| 17,329,776 |
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.
26
The Geoffrey Watling Charity
Notes to the Accounts
Year ended 30 September 2023
| 17 Analysis of changes in net debt Cash deposits Cash at bank and in hand Cash deposits Cash at bank and in hand |
At 1 October 2022 Cash flows As at 30 September 2023 £ £ £ 501,777 (468,655) 33,122 52,105 789,905 842,010 Charity |
|---|---|
| 553,882 321,250 875,132 |
|
| At 1 October 2022 Cash flows As at 30 September 2023 £ £ £ 501,777 (468,655) 33,122 577,491 731,789 1,309,280 Group |
|
| 1,079,268 263,134 1,342,402 |
18 Operating lease commitments
The group has a number of long term lease commitments in place in relation to rents charged to tenants in its owned properties. The terms of the leases vary in length and rental charge and are managed by the group's property investment advisors.
19 Post balance sheet event
Following storms in November 2023 and January 2024 there has been substantial coastal erosion at Hemsby, resulting in loss of land owned by the group. The lost land has been recognised in the accounts at nil value for some years due to ongoing coastal erosion. As a result of the erosion the group has incurred expenditure of approximately £45,000 since 30 September 2023 dealing with repair works at Hemsby.
20 Results of the charity
The charity generated total net expenditure (before investment gains) of £6,611 (2022: £50,636 net expenditure) which includes £109,009 (2022: £202,354) of gift aid from the company. Net increase in funds (after investment gains and losses) of £533,727 (2022: £1,510,625 net decrease).
27