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2024-12-31-accounts

Charity registration number 1027652 (England and Wales)

MOUNTSORREL UNITED CHARITIES

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

MOUNTSORREL UNITED CHARITIES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Benjamin Davies
Jayne Ilett
Geoffrey Wainwright
Elizabeth Blackshaw
Paul Harris
Penelope Maguire
Nicola Liquorish
Megan Pirt
Colin Resch
Elizabeth Thompson
Nicole Carr
Michelle Hought
Clerk to the Trustees Kate Scranage
Contact Details kate@mountsorrelcsf.org.uk
Charity number (England and Wales) 1027652
Principal address PO Box 11158
Leicester
LE8 8WH
Auditor Somerbys Limited
30 Nelson Street
Leicester
LE1 7BA
Bankers National Westminster Bank plc
Market Place
Loughborough
LE11 3NZ
Solicitors
Property Matters Shakespeare Martineau
Two Colton Square
Leicester
LE1 1QH
Endowment Matters Farrer & Co LLP
66 Lincoln's Inn Fields
London
WC21 3LH

MOUNTSORREL UNITED CHARITIES

LEGAL AND ADMINISTRATIVE INFORMATION

Investment advisors

Property Manager

Up to February 2025 RBC Brewin Dolphin Ltd Waterfront House Waterfront Plaza 35 Station Street Nottingham NG2 3DQ From February 2025 Rathbones Investment Management The Colmore Building 20 Colmore Circus Queensway Birmingham B4 6AT CCLA Investment Management One Angel Lane London EC4R 3AB Sheldon Bosley Knight Professional Services Ltd T/A Andrew Granger & Co 44-46 Forest Road Loughborough Leicestershire LE11 3NP

MOUNTSORREL UNITED CHARITIES

CONTENTS

Page
Trustees' report 1 - 9
Independent auditor's report 10 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Notes to the financial statements 16 - 25

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Mountsorrel United Charities is an unincorporated, registered charity in England and Wales, governed by a Charity Scheme. The charity comprises the following:

Additionally, the Charity Commission scheme for Mountsorrel Relief in Need Charity (217615) (working name Mountsorrel Community Support Fund) and its linked Charity of Hugh Phipps (217615-1) requires that the trustees of these charities are also the trustees of Mountsorrel United Charities.

Charity Commission schemes relating to the above entities are:

The charities detailed above are governed by a board of up to 16 trustees (see Trustees below). For efficiency, the business of Mountsorrel United Charities, Mountsorrel Relief in Need Charity and the Charity of Hugh Phipps is combined (and demarcated) at each trustees’ meeting. This Annual Report and Accounts relates to the Mountsorrel United Charities only.

Day-to-day administration and bookkeeping are delegated to the Clerk, who provides services on a self-employed basis. The Clerk’s remuneration is reviewed annually by the board of trustees.

A professional investment manager is appointed, who meets with the trustees at least annually and provides quarterly written reports. An agent is appointed to deal with day to day management of land and property owned by the charity.

Mountsorrel United Charities has three beneficiary charities (see Objectives and Activities below), specified within its governing document, with whom it works closely to achieve its objectives. The relationship with the beneficiary charities is clarified in the organogram below.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

OBJECTIVES AND ACTIVITIES

The sole object of Mountsorrel United Charities is to divide the income of the charity, after expenses, between three separately registered charities for the public benefit:

The charity’s main aim is therefore to generate income from its invested assets and the principal activity is the distribution of income from those assets to the beneficiary charities, in order to support the ongoing work of those charities for the public benefit in the local area.

The charity’s endowment fund is invested to generate income in order to fulfil the objects. In addition, the charity holds an investment property known as Launde Farm, Uppingham, comprising some 50 acres of land together with a farmhouse (leased separately), which generates rental income for application to the charity’s objects.

In the short term the charity’s aims are to distribute income to the beneficiary charities efficiently to ensure the ongoing availability of funds to support their charitable work, and to make sound financial decisions informed by professional advisers in regard to the charity’s assets. In the longer term, the aims are to protect and maximise the charity’s assets to ensure the availability of funds for future generations.

The trustees confirm that in carrying out their activities, they have given due regard to the guidance on public benefit issued by the Charity Commission.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

During the year, £219,018 was distributed to the beneficiary charities to further their work for the public benefit in Mountsorrel. The sum distributed was significantly less than in the preceding years, in order to compensate for earlier over-distribution and allow the Trust for Investment to recoup its value. A further £14,759 was released to the beneficiary charities during the year in respect of funds previously withheld from distribution.

Disclosure to Charity Commission

In May 2024 the trustees made a disclosure to the Charity Commission regarding the earlier over-distribution of funds, which had resulted in depletion of the value of the Trust for Investment in 2022 and 2023. The Annual Report and Accounts for the year ended 31st December 2022 were also amended to reflect what had happened. The Commission responded to the disclosure in June 2024 to confirm that they considered that the trustees had dealt with the matter appropriately and responsibly. The trustees rigorously reviewed their financial and investment reporting, and a report on the Unapplied Total Return (the funds available for distribution) is now presented to every meeting.

Board of trustees and meetings

Jayne (Nicci) Ilett was re-appointed as Chair, and Colin Resch was appointed as Vice Chair in January 2024.

The board of trustees met eight times in 2024. The trustees received cashflow and available funds reports to every meeting, together with quarterly income and expenditure accounts and investment reports.

The trustees form informal working groups to review specific issues as necessary. All working groups report to the full board of trustees.

Investment assets

The trustees reviewed their investment management arrangements during the year and made the decision to transfer their main investment portfolio from RBC Brewin Dolphin to Rathbones Investment Management. The transfer of assets took place in February 2025.

The trustees commissioned an external re-valuation of their land and property at Launde Farm during the year. This is reflected in the Accounts. Work also continued under the agreement with William Davis Ltd for the promotion of the land and property for development.

The trustees took professional legal advice during the year on whether their investment property, Launde Farm, should be considered as endowed. Having reviewed the advice received, the trustees now consider all their investment assets (including Launde Farm and the investments held with CCLA) to be endowed. The Accounts reflect this change.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Strategic Direction

During the year, the trustees prepared a new 5 Year Strategy and this was adopted in June 2024. This Strategy includes one joint Strategic Objective (shared with Mountsorrel Community Support Fund) and three Strategic Objectives for Mountsorrel United Charities:

Joint Strategic Objective:

Over the next five years we will separate the governance of Mountsorrel Community Support Fund from Mountsorrel United Charities to create a level playing field between the three beneficiary charities.

Strategic Objectives for Mountsorrel United Charities:

Over the next five years we will:

  1. Develop a sound approach to investing and disbursing funds, including a review of the total return policy

  2. Create a skilled board with the right expertise

  3. Increase the transparency of our processes by:

  4. a. Increasing stakeholder involvement from all three beneficiary charities, including representation on our board of trustees, and

  5. b. Improving our communications

Work towards the Joint Strategic Objective has now commenced and progress against all the objectives is monitored at every meeting.

Policies and Procedures

In addition to existing policies, a new Trustee Expenses Policy and Expenses Claim Form were adopted in April 2024, a Risk Management Policy in June 2024 and written Financial Procedures and Controls in September 2024.

Risk Management

The Risk Register was reviewed in December 2024, and will continue to be reviewed annually. A Risk Management Policy was adopted during the year. The trustees also reviewed their insurance needs this year.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

TRUSTEES

The Charity Scheme stipulates that there should be sixteen trustees:

The trustees who held office during the period and those in office since the year-end are:

Trustee name Office (if any) Appointments and
Resignations		 Name of person (or body)
entitled to appoint trustee (if
any)
Elizabeth Blackshaw Mountsorrel Parish Council
Nicole Carr Mountsorrel Parish Council
Elaine Crossley Retired 04.12.2024
Emma Crossley Retired 30.06.2025
Benjamin Davies
Paul Harris Mountsorrel Parish Council
Michelle Hought
Jayne Ilett (known as
Nicci)
Chair
Nicola Liquorish
Penelope Maguire Vice
Chair
to
17.01.2024		 Mountsorrel Parish Council
Megan Pirt Mountsorrel Parish Council
Colin Resch (Revd) Vice
Chair
from
17.01.2024		 Ex-officio
Elizabeth Thompson
Geoffrey Wainwright

Appointment, induction and training of trustees

A Trustee Recruitment Procedure has been adopted. When co-opted trustee vacancies arise, these are openly advertised locally, online and offline. Vacancies for Mountsorrel Parish Council nominated trustees are discussed at meetings of the Parish Council.

When appointed, all new trustees receive an induction pack including governing documents, recent minutes and the latest annual report and accounts. New trustees are also directed to key guidance from the Charity Commission and other bodies, including guidance on the responsibilities of charity trustees. Further induction, training and support may take place in person with the Chair and others as appropriate. Trustees are encouraged to identify and express training needs and external training is facilitated as necessary.

New trustees certify that they are not excluded from acting as trustees, and complete a declaration of interests form. The Chair and Vice Chair of the trustees are elected annually, at the first meeting each year, as required by the governing document.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Financial review

FINANCIAL REVIEW

Financial position

The charity’s total income for the year was £373,048 (2023: £346,675). Expenditure totalled £298,621 (2023: £393,826).

There was an overall gain on investment assets of £1,102,580 (2023: £782,731) resulting in a net surplus of £1,177,007 (2023: surplus of £735,580).

At the year-end, the charity held total assets of £15,505,637 (2023: £14,328,630) that included £14,959,315 of restricted (endowed) funds. Of the endowed funds, £1,250,000 was held as investment property (land and property) for the purpose of long term income generation in support of the charitable objectives.

Principal sources of funds

The charity receives its income from investments held with RBC Brewin Dolphin (Rathbones from February 2025) and with CCLA (COIF Investment Fund), together with rental income from its investment property.

Investments

The charity held total investments valued at £15,414,549 at the year-end (2023: £14,202,540).

An investment policy has been adopted. The aim of the investments is to achieve a level of financial return sufficient to enable each of the three beneficiary charities to further their charitable aims, within a level of risk considered acceptable by trustees.

Investment managers are appointed to manage and advise on the charity’s endowed investments on a discretionary management basis.

The trustees adopted a total return approach on 1st January 2021.

Investment objectives

The objective is to grow the fund ahead of inflation over the long term. The trustees take regular professional advice, and receive quarterly reports from the investment manager.

The Trustees’ current aim is to distribute £160,000 per beneficiary charity per year, meaning the aspirational target return from investments sought annually is £480,000 (with a minimum annual target of £405,000). Whilst the target return from investments was achieved in 2024, distributions were reduced, in order to recoup over-distribution in earlier periods. Each of the three beneficiary charities received £73,006 during the year.

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Ethical investment statement

An ethical investment statement has been adopted. Trustees do not wish to directly profit from, or provide capital to, activities that are inconsistent with, or harmful to the values, purpose and mission of any or all of the three beneficiary charities. Trustees therefore seek to exclude from its main investment portfolio companies that:

Reserves policy

As at 31st December 2024, the charity held free reserves of £91,088.

Reserves are required to enable the charity to maintain its current activities and to meet its long term aims. Free reserves are the part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes. It is the policy of the charity to maintain funds that are free reserves at a level that equates to approximately one year’s unrestricted management, administration and support costs.

The trustees will keep the level of reserves in check by reviewing it alongside their quarterly review of management accounts, together with cashflow reports to every meeting.

In determining the target level of reserves, the trustees have reviewed the risks faced, both short and medium term, to ensure the charity can continue to operate on a going concern basis.

Risk management

The trustees have examined the major strategic business and operational risks that the charity faces. A Risk Register is in place, and is reviewed annually. The key risks facing the charity are identified as:

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Steps have been taken to manage these risks and further actions and controls have been identified where necessary. The steps taken include:

PLANS FOR FUTURE PERIODS

In 2025, trustees plan to:

MOUNTSORREL UNITED CHARITIES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

DISCLOSURES

Total return

On 1st January 2021 the initial value of the Trust for Investment and the initial value of the Unapplied Total Return was established. The policy used to identify the initial amount of the Trust for Investment was the market value of the investment portfolio as at 31st December 2020, being £12,637,147.

In October 2023 the trustees concluded (following legal advice) that there had been over-allocation from the Trust for Investment to the income fund (Trust for Application) in earlier periods, and consequently the trustees agreed to make no further allocation to income until such time as the Trust for Investment had recouped its value. Charitable distributions were therefore withheld for Quarter 1 of 2024. Recoupment was completed during Quarter 1 2024 and distributions resumed from Quarter 2.

The trustees will seek to balance current and future levels of beneficiary need against anticipated investment returns and the long-term preservation of the Trust for Investment when allocating funds to the Trust for Application. The level of Unapplied Total Return is kept under regular review by the trustees.

During 2024 David Judge, Chartered FCSI (investment manager) advised the charity on the total return approach to investment.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity scheme. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the trustees of the charity on 3rd September 2025 and signed on its behalf by:

Jayne Ilett Chair

3 September 2025

MOUNTSORREL UNITED CHARITIES

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF MOUNTSORREL UNITED CHARITIES

Opinion

We have audited the financial statements of Mountsorrel United Charities (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 requires us to report to you if, in our opinion:

MOUNTSORREL UNITED CHARITIES

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MOUNTSORREL UNITED CHARITIES

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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.

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

The risk of not detecting a material misstatement resulting from error is considered to be low. The risk of not detecting a material misstatement resulting from fraud is higher, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

In the context of Mountsorrel United Charities, we have not identified specific laws and regulations, other than general laws and regulations, such as; the Charities Act 2011; Charities Commission guidance; GDPR and Housing Acts.

Our understanding of the legal and regulatory framework applicable to Mountsorrel United Charities and how the charity has complied with its obligations has been obtained by enquiry of management and those charged with governance.

As part of our enquiries we have discussed policies and procedures on compliance with laws and regulations and whether any instances of non compliance have occurred.

Our understanding of the charity's policies and procedures on fraud risk has been obtained through enquiry with management as to the control activities, operational systems in place and whether there is knowledge of any actual, suspected or alleged fraud.

We consider that the audit team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. During our audit work there were no significant instances of non-compliance identified.

MOUNTSORREL UNITED CHARITIES

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MOUNTSORREL UNITED CHARITIES

In response to the audit risks identified in respect of irregularity and fraud, we have undertaken the following procedures:

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

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

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.

Alexander West FCA (Senior Statutory Auditor)

For and on behalf of Somerbys Limited, Statutory Auditor Chartered Accountants 30 Nelson Street Leicester LE1 7BA Date: .........................

Somerbys Limited 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.

MOUNTSORREL UNITED CHARITIES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2024

Current financial year
Unrestricted
Endowment
funds
funds
2024
2024
Notes
£
£
Income from:
Investments
3
24,674
348,374
Total income and endowments
24,674
348,374
Expenditure on:
Raising funds
4
2,691
51,540
Charitable activities
5
219,018
-
Governance costs
10
25,372
-
Total expenditure
247,081
51,540
Net gains/(losses) on investments
11
-
1,102,580
Net income/(expenditure)
(222,407)
1,399,414
Transfers between funds
(1,222,830)
1,222,830
Net movement in funds
7
(1,445,237)
2,622,244
Reconciliation of funds:
Fund balances at 1 January 2024
1,991,559
12,337,071
Fund balances at 31 December 2024
546,322
14,959,315		 Total
2024
£
373,048
373,048
54,231
219,018
25,372
298,621
1,102,580
1,177,007
-
1,177,007
14,328,630
15,505,637		 Total
2023
£
346,675
346,675
49,665
316,176
27,985
393,826
782,731
735,580
-
735,580
13,593,050
14,328,630

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

MOUNTSORREL UNITED CHARITIES

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Prior financial year
Unrestricted
Endowment
funds
funds
2023
2023
Notes
£
£
Income from:
Investments
3
24,014
322,661
Total income and endowments
24,014
322,661
Expenditure on:
Raising funds
4
2,612
47,053
Charitable activities
5
316,176
-
Governance costs
10
27,985
-
Total expenditure
346,773
47,053
Net gains/(losses) on investments
11
-
782,731
Net income/(expenditure)
(322,759)
1,058,339
Transfers between funds
391,234
(391,234)
Net movement in funds
7
68,475
667,105
Reconciliation of funds:
Fund balances at 1 January 2023
1,923,084
11,669,966
Fund balances at 31 December 2023
1,991,559
12,337,071		 Total
2023
£
346,675
346,675
49,665
316,176
27,985
393,826
782,731
735,580
-
735,580
13,593,050
14,328,630

MOUNTSORREL UNITED CHARITIES

BALANCE SHEET

AS AT 31 DECEMBER 2024

Notes
Fixed assets
Investment property
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
The funds of the charity
Endowment funds
17
Unrestricted funds
18		 2024
£
£
1,250,000
14,164,549
15,414,549
54,138
57,985
112,123
(21,035)
91,088
15,505,637
14,959,315
546,322
15,505,637		 2023
£
£
1,150,000
13,052,540
14,202,540
42,760
117,257
160,017
(33,927)
126,090
14,328,630
12,337,071
1,991,559
14,328,630		 2023
£
£
1,150,000
13,052,540
14,202,540
42,760
117,257
160,017
(33,927)
126,090
14,328,630
12,337,071
1,991,559
14,328,630
14,202,540
126,090
14,328,630
12,337,071
1,991,559
14,328,630

The financial statements were approved by the trustees on 3 September 2025

Jayne Ilett Chair

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Charity information

The financial statements have been prepared in accordance with the charity’s governing document, the Charities Act 2011 and “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) (effective 1 January 2019)”. The charity is a Public Benefit Entity as defined by FRS102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but 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 presented in sterling which is the functional currency of the charity and rounded to the nearest £.

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.

1.1 Going concern

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

1.2 Charitable funds

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the Charity.

Permanent endowment funds are restricted funds held for income generation.

1.3 Income

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability,

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reasonably measured.

Investment Income

Dividends are recognised one the dividend has been received.

1.4 Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Raising Funds

These are costs incurred in the management of investments.

Charitable activities

Charitable expenditure 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.

Grant Provisions

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

Governance costs

These include the costs attributable to the Charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

1.5 Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined periodically by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

1.6 Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

There are no critical judgements (apart from those involving estimates) in applying the charity's accounting policies.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment Property

The charity carries its investment property at fair value at each reporting date, with changes in fair value being recognised in the statement of financial activities.

Listed investments

The charity carries its listed investments at fair value at each reporting date based on quoted prices, with changes in fair value being recognised in the statement of financial activities.

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

3 Income from investments

Unrestricted Endowment
funds
funds
2024
2024
£
£
Rental income
17,592
-
Income from listed
investments
7,080
348,374
Interest receivable
2
-
24,674
348,374		 Total
Unrestricted Endowment
funds
funds
2024
2023
2023
£
£
£
17,592
17,073
-
355,454
6,941
322,661
2
-
-
373,048
24,014
322,661		 Total
2023
£
17,073
329,602
-
346,675

4 Expenditure on raising funds

Unrestricted Endowment
funds
funds
2024
2024
£
£
Costs of generating funds
Property repairs
672
-
Costs of rent collection
2,019
-
2,691
-
Investment
management
-
51,540
Total costs
2,691
51,540
Expenditure on charitable activities
Direct costs
Grant funding of activities (see note 6)
Analysis by fund
Unrestricted funds		 Total
Unrestricted Endowment
funds
funds
2024
2023
2023
£
£
£
672
678
-
2,019
1,934
-
2,691
2,612
-
51,540
-
47,053
54,231
2,612
47,053
Grants
2024
£
219,018
219,018		 Total
2023
£
678
1,934
2,612
47,053
49,665
Grants
2023
£
316,176
316,176

5 Expenditure on charitable activities

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

6 Grants payable

Grants payable
Grants to institutions (3 grants):
Distribution to Mountsorrel Relief In Need Charity
Distribution to Mountsorrel Church of England Fund
Distribution to Mountsorrel Educational Fund		 Grants
2024
£
73,006
73,006
73,006
219,018		 Grants
2023
£
105,392
105,392
105,392
316,176

Income is allocated for charitable distribution net of expenses, as permitted by the charity's governing document.

7 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 5,670 5,400

8 Trustees

No trustees (or any persons connected with them) received any remuneration during the current or prior year.

No Trustees have received any reimbursed expenses or any other benefits from the charity during the current and prior year.

9 Employees

There were no employees during the year.

10 Governance costs

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Auditors remuneration 6,330 5,400
Sundry expenses 846 1,300
Clerk fees 7,393 9,344
Legal and professional fees 9,919 11,100
Insurance 884 841
25,372 27,985

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

11 Gains and losses on investments

Endowment Endowment
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investments 948,978 740,911
Sale of investments 53,602 41,820
Revaluation of investment properties 100,000 -
1,102,580 782,731

12 Taxation

The Charity is a registered charity and is therefore exempt from taxation.

13 Investment property

Investment property
Fair value
At 1 January 2024
Net gains or losses through fair value adjustments
At 31 December 2024		 2024
£
1,150,000
100,000
1,250,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 1st August 2024 by Andrew Granger, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

14 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2024
12,812,413
Additions
2,084,751
Valuation changes
948,978
Disposals
(1,801,106)
At 31 December 2024
14,045,036
Carrying amount
At 31 December 2024
14,045,036
At 31 December 2023
12,812,413		 Cash in
portfolio
£
240,127
2,188,396
-
(2,309,010)
119,513
119,513
240,127		 Total
£
13,052,540
4,273,147
948,978
(4,110,116)
14,164,549
14,164,549
13,052,540

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

15 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other creditors
Accruals		 2024
£
51,910
2,228
54,138
2024
£
-
21,035
21,035		 2023
£
40,796
1,964
42,760
2023
£
14,759
19,168
33,927

16 Creditors: amounts falling due within one year

17 Endowment funds

The specific purposes for which the funds are to be applied are as follows:

The permanently endowed funds are those funds historically donated to the charity to be held for income generation.

At 1 January
2024
£
Permanent endowments
12,337,071
Previous year:
At 1 January
2023
£
Permanent endowments
11,669,966		 Incoming
resources
£
348,374
Incoming
resources
£
322,661		 Resources
expended
£
(51,540)
Resources
expended
£
(47,053)		 Transfers
£
1,222,830
Transfers
£
(391,234)		 Gains and
losses
£
1,102,580
Gains and
losses
£
782,731		 At 31
December
2024
£
14,959,315
At 31
December
2023
£
12,337,071

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

17 Endowment funds

(Continued)

Details of Endowment funds invested on a total return basis are as follows:

Brewin Dolphin Trust for Unapplied Total
Investment Total Return Endowment
At beginning of the reporting
period:
Gift component of the permanent endowment 12,337,071 - 12,337,071
Unapplied total return - - -
Total 12,337,071 - 12,337,071
Movements in the reporting
period
Investment return: dividends and interest - 348,374 348,374
Investment return: realised and unrealised gains and (losses) 300,076 696,792 996,868
Investment Management Costs - (51,540) (51,540)
Total 300,076 993,626 1,293,702
Unapplied total return allocated to income in the reporting
period - (180,000) (180,000)
Net movements in reporting period 300,076 813,626 1,113,702
At end of the reporting period
Gift component of the permanent endowment 12,637,147 813,626 13,450,773
12,637,147 813,626 13,450,773

Investment returns of £300,076 included in the Trust for Investment relate to a recoupment of funds previously released from the investment fund that need to be replaced. The trustees re-visited the recoupment balance during the year having realised that it was miscalculated based on an incorrect figure and has been updated in the year. The recoupment balance has been fully recouped at the year end (2023: £300,076).

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January
2024
£
General funds
1,991,559
Previous year:
At 1 January
2023
£
General funds
1,923,084		 Incoming
resources
£
24,674
Incoming
resources
£
24,014		 Resources
expended
£
(247,081)
Resources
expended
£
(346,773)		 Transfers
£
(1,222,830)
Transfers
£
391,234		 At 31
December
2024
£
546,322
At 31
December
2023
£
1,991,559

19 Analysis of net assets between funds

Unrestricted
Endowment
funds
funds
2024
2024
£
£
At 31 December 2024:
Investment properties
-
1,250,000
Investments
455,234
13,709,315
Current assets/(liabilities)
91,088
-
546,322
14,959,315
Unrestricted
Endowment
funds
funds
2023
2023
£
£
At 31 December 2023:
Investment properties
1,150,000
-
Investments
715,469
12,337,071
Current assets/(liabilities)
126,090
-
1,991,559
12,337,071		 Total
2024
£
1,250,000
14,164,549
91,088
15,505,637
Total
2023
£
1,150,000
13,052,540
126,090
14,328,630

MOUNTSORREL UNITED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

20 Related party transactions

During the year the Charity made the following related party transactions:

Mountsorrel Church of England Fund

During the year, Mountsorrel United Charities allocated Mountsorrel Church of England Fund investment income of £73,006 (2023: £105,392). At the balance sheet date the amount due to Mountsorrel Church of England Fund was £nil (2023 - £5,000).

Mountsorrel Educational Fund

As well as being trustees of Mountsorrel United Charities, Reverend Colin Ernst Resch and Megan Pirt are Trustees of Mountsorrel Educational Fund.

During the year, Mountsorrel United Charities allocated Mountsorrel Educational Fund investment income of £73,006 (2023: £105,392). At the balance sheet date the amount due to Mountsorrel Educational Fund was £nil (2023 - £5,000).

Mountsorrel Relief in Need Charity

The trustees of Mountsorrel Relief in Need Charity and the Charity of Hugh Phipps are the same as for Mountsorrel United Charities.

During the year, Mountsorrel United Charities allocated Mountsorrel Relief in Need Charity investment income of £73,006 (2023: £105,392). At the balance sheet date the amount due from Mountsorrel Relief in Need Charity was £1,146 (2023 - £4,759 was due to Mountsorrel Relief in Need).