THE SPEAR CHARITABLE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2020
THE SPEAR CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Legal and Administrative Information | 1 |
| Report of the Trustees | 2 |
| Independent Examiner’s Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes forming part of the Financial Statements | 7 |
THE SPEAR CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| REGISTERED CHARITY NUMBER | : | 1041568 | |
|---|---|---|---|
| CURRENT TRUSTEES | : | Philip N Harris | |
| Francis A Spear | |||
| (Deceased 13 December 2020) | |||
| Hazel E Spear | (Secretary) | ||
| Nigel R N Gooch | |||
| ADMINSTRATOR | : | Flora Gaughan | (01992-305229) |
| REGISTERED OFFICE | : | Roughground House | |
| Old Hall Green | |||
| Ware | |||
| Hertfordshire | |||
| SG11 1HB | |||
| INDEPENDENT EXAMINER | : | Mrs Jacqui Lee Foster | |
| 31 Gellatly Road | |||
| London | |||
| SE14 5TU | |||
| SOLICITORS | : | Longmores Solicitors LLP | |
| 24 Castle Street | |||
| Hertford | |||
| SG14 1HP | |||
| INVESTMENT ADVISERS | : | Brewin Dolphin | |
| 12 Smithfield Street | |||
| London | |||
| EC1A 9BD | |||
| BANKERS | : | HSBC Bank plc | |
| 31 Holborn | |||
| London | |||
| EC1N 2HR |
1
THE SPEAR CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report along with the financial statements of the trust for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust deed, applicable law and the requirements of the Charities SORP (FRSSE) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).
OBJECTIVES AND ACTIVITIES
The trust receives no income other than dividends, interest and any profits on sale arising from its investments. These monies are applied for the purpose of distributing monies to or for such charitable purpose or purposes or institution or institutions as the trustees shall in their absolute discretion think fit, with particular regard to charitable assistance of employees and former employees of J W Spear and Sons plc and the family and dependants of such employees and former employees.
The trustees have had regard to the Charity Commissioners’ guidance on public benefit. They consider that the grants made by the fund fulfil the public benefit requirement.
The trustees will make grants without a formal application but organisations are encouraged to provide feedback on the use made of grants. These explanations are then used to monitor the quality of grants made and to provide the basis on which any further applications can be assessed.
The trustees intend to continue to provide grants in the areas currently supported and to monitor the use of donated funds to maximise the benefits provided.
The present policy of the trustees is to retain an investment portfolio to generate sufficient income to effectively maintain a constructive programme of charitable donations while researching opportunities to make further major grants. Current reserves of £3,946,703 are sufficient to satisfy these objectives.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The trust was established by deed on 8 July 1994 and is based in the UK at the registered office shown on page 1.
The power to appoint any new trustee is vested in the existing trustees (all of whom served throughout the year) whose names are set out on page 1.
The trustees conduct a risk assessment annually to review the major risks faced by the trust and to ensure that they have a sound knowledge of the charity and are in an informed position regarding its operations.
The trustees have a general power of investment and have agreed to delegate the management of available funds to their investment advisers subject to no one equity investment representing more than 5% of the overall portfolio valuation.
The trustees have adopted a medium risk investment strategy to maintain a balanced approach between income earned and capital appreciation.
2
THE SPEAR CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
ACHIEVEMENTS AND PERFORMANCE
During the year the trust has been able to sustain its support to beneficiaries by utilising the continuing returns in investment income and surpluses on sales of investments.
The charitable trust meets its charitable purposes by providing grants and donations in accordance with the charitable objects of the trust.
A summary of the grants and donations made by the trust is set out on pages 8 to 11.
FINANCIAL REVIEW
There was an overall decrease in funds of £619,174 (2019 - increase £257,608) after accounting for profits on investment assets of £79,622 (2019 – £574,830)
The assets of the trust are predominantly an investment portfolio and regular meetings are held with the investment advisers.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
Charity law requires the trustees to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year and of the incoming resources and application of resources of the charity for the financial year. In doing so the trustees are required to: -
-
a Select suitable accounting policies and then apply them consistently;
-
b Observe the methods and principles of the Charities SORP (FRSSE);
-
c Make judgements and estimates that are reasonable and prudent;
-
d State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
e Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The trustees are also responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with relevant legislation. 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.
So far as the trustees are aware there is no relevant information of which the trust’s independent examiner is unaware, and the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant information and to establish that the trust’s independent examiner is aware of that information.
Approved by the trustees and signed on their behalf by:
………………………………………………………………
17 May 2021
3
INDEPENDENT EXAMINER’S REPORT TO THE
TRUSTEES OF THE SPEAR CHARITABLE TRUST
I report on the financial statements of the trust for the year ended 31 December 2020 which are set out on pages 5 to 15.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER
As described on page 3 the trustees are responsible for the preparation of the trustees’ annual report and financial statements. You consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed. It is my responsibility examine the accounts under section 145 of the 2011 Act, to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 Act and to state whether particular matters have come to my attention.
BASIS OF INDEPENDENT EXAMINER’S REPORT
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a “true and fair” view.
The report is made solely to the trustees for and is limited to those matters set out in the statement below. To the fullest extent permitted by law I do not accept or assume responsibility to any one other than the trustees for my work, for this report or for the opinions I have formed.
INDEPENDENT EXAMINER’S STATEMENT
In connection with my examination nothing has come to my attention:
-
a which gives me reasonable cause to believe that in any material respect requirements
-
to keep accounting records in accordance with section 130 of the Charities Act 2011; and
-
to prepare financial statements which accord with the accounting records and to comply with the accounting requirements of the Charities Act 2011
have not been met; or
b to which in my opinion attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Mrs Jacqui Lee Foster 31 Gellatly Road London SE14 5TU
27 May 2021
4
THE SPEAR CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Note INCOME FROM: Investments 2 Grant returned EXPENDITURE ON: RAISING FUNDS Investment manager’s fees Irrecoverable VAT thereon CHARITABLE ACTIVITIES Grants and donations 3 OTHER 4 TOTAL NET (EXPENDITURE) OTHER RECOGNISED GAINS Gains on investment assets 8 NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted Funds 2020 £ 110,911 7,500 118,411 20,743 4,148 24,891 783,079 9,237 817,207 (698,796) 79,622 (619,174) 4,565,877 3,946,703 |
Unrestricted Funds 2019 £ 155,838 - |
||
|---|---|---|---|---|
| 155,838 | ||||
| 20,743 4,148 |
23,447 4,689 |
|||
| 28,136 415,282 29,642 |
||||
| 473,060 | ||||
| (317,222) 574,830 |
||||
| 257,608 4,308,269 |
||||
| 4,565,877 |
The statement of financial activities includes all gains and losses recognised in the year.
5
THE SPEAR CHARITABLE TRUST
BALANCE SHEET AS AT 31 DECEMBER 2020
| Note FIXED ASSETS Investments 8 CURRENT ASSETS Debtors 5 Cash at bank and in hand TOTAL CURRENT ASSETS LIABILITIES Creditors: Amounts falling due within one year 6 NET CURRENT ASSETS/(LIABILITIES) TOTAL NET ASSETS THE FUNDS OF THE CHARITY Unrestricted funds |
2020 £ 3,879,961 52,941 50,899 103,840 (37,098) 66,742 3,946,703 3,946,703 |
2019 £ 4,604,000 |
|---|---|---|
| 33,652 7,821 |
||
| 41,473 (79,596) |
||
| (38,123) | ||
| 4,565,877 | ||
| 4,565,877 |
Approved by the Board of Trustees and signed on its behalf by
...…………………..…..……… Trustee
17 May 2021
6
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 PRINCIPAL ACCOUNTING POLICIES
Accounting Convention
The financial statements have been prepared under the historical cost convention as modified by the valuation of investments at market value and in accordance with the requirements of the Charities SORP (FRSSE) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).
The principal accounting policies adopted in the preparation of the financial statements are as follows: -
Income
Investment income and interest received
Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty.
Expenditure
All expenditure is accounted for on an accruals basis. Costs to manage and administer the charity represent costs incurred attributable to the management of the charity’s assets, organisation, administration and compliance with the constitutional and statutory requirements.
Fund accounting
Funds held by the charity are unrestricted general funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Value added tax
The trust has charitable status and is therefore unable to recover VAT within its governance costs. The trustees consider that the incidence of the indirect tax should be highlighted.
| 2 | INVESTMENTS Deposit interest Investment income from quoted investments |
2020 £ 37 110,874 110,911 |
2019 £ 86 155,752 |
|---|---|---|---|
| 155,838 |
7
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 3 | CHARITABLE ACTIVITIES- Grants and Donations All Saints PCC (Bells Appeal) Battersea Dogs and Cats Home Beds, Cambs and Northants Wildlife Trust Bletchley Park Trust Blue Cross British Hen Welfare Trust Butterfly Conservation Scotland Camphill Village Trust Carers Trust Centre for Reproductive and Genetic Health Compassion in World Farming Cure Parkinson’s Trust Dancing for Wellbeing Derbyshire Wildlife Trust Demelza House Children’s Hospice Doctor Graham’s Homes Douglas Bader Foundation Earth Trust EP Youth Exmoor Search and Rescue Farplace Animal Rescue Franconi Anaemia Leukaemia – Children with Cancer UK Freshfields Animal Rescue Green End Fundraisers Greyhound Compassion Harpenden Lions Club Headway Thames Valley Carried forward |
2020 £ - - - - - - - - - - - ,- - - - 4,500 - - - - - - - - - - - 4,500 |
2019 £ 10,000 1,000 2,500 20,000 5,000 2,500 2,500 10,000 2,500 2,300 2,500 5,000 5,000 2,000 5,000 - 2,500 5,000 4,500 2,500 6,000 2,250 2,500 5,300 1,750 2,500 2,500 |
|---|---|---|---|
| 115,100 |
8
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 3 | CHARITABLE ACTIVITIES– Grants and Donations Brought forward Hertford Choral Society Hertfordshire and Middlesex Wildlife Trust Horniman Museum and Gardens Interactive Stroke Support International Otter Survival Fund Jewish Care Jordainian YMCA Juvenile Diabetes Research Trust London Air Ambulance London Wildlife Trust Lord Whisky Sanctuary Marine Conservation Society Mayhew Animal Home Mexico - Red Balloon Foundation and Amore Ministries Michael Roberts Charitable Trust MIND National Animal Welfare Trust Nowzad UK Pekinese Rescue Pepper Foundation PETA Prickles Hedgehog Rescue React Re-Cycle Redwings Horse Sanctuary Respite Association Carried forward |
2020 £ 4,500 - - - - - - - - - - - - - - - - - - 1,000 - - - - - - - 5,500 |
2019 £ 115,100 2,500 2,500 2,500 2,500 2,500 10,000 2,000 2,500 2,500 2,000 1,000 2,500 2,500 2,000 2,500 1,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 5,000 5,000 2,500 |
|---|---|---|---|
| 188,100 |
9
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 3 | CHARITABLE ACTIVITIES– Grants and Donations Brought forward Royal National Orthopaedic Hospital Royal Osteoporosis Society Royal Philatelic Society London Salvation Army Scottish Seabird Centre Sense Sick Children’s Trust Something to Look Forward To Soil Association SPANA Stamp Active Network St Francis Children’s Society St Helena’s Hospice St John’s Ambulance St Luke’s Hospice St Mary’s Church St Mungo’s St Thomas of Canterbury School Suffolk Owl Sanctuary Support Dogs Surrey Wildlife Trust Toynbee Hall Tree Aid Vier Pfoten West London Synagogue Wheel Power Carried forward |
2020 £ 5,500 - - 750,000 2,500 - - - - - - 1,000 - - - - - - - - - - - - - - - 759,000 |
2019 £ 188,100 2,500 2,500 20,000 4,500 2,500 2,500 2,500 2,500 75,000 2,500 - 2,000 10,000 2,500 1,000 1,000 5,000 13,600 5,000 2,500 2,000 2,500 2,500 1,000 5,000 3,000 |
|---|---|---|---|
| 363,700 |
10
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 3 4 |
CHARITABLE ACTIVITIES– Grants and Donations Brought forward Woman’s Trust Wood Green Animal Shelter Woodland Trust Zoological Society of London ZSV Trust – Food Lifeline Donations for the charitable assistance of former employees of JW Spear & Sons plc and the family and dependants of such former employees: 6 (2019: 10) Sundry donations: none (2019: 2) OTHER Independent examination Accountancy (4a) Professional fees (4a) Office costs (4b) Irrecoverable VAT |
2020 £ 759,000 - - - - - 24,079 - 783,079 £ 535 3,530 4,250 72 850 9,237 |
2019 £ 363,700 5,000 2,500 10,000 2,500 5,000 25,432 1,150 |
|---|---|---|---|
| 415,282 | |||
| £ 525 5,880 19,295 83 3,859 |
|||
| 29,642 |
(a) Two trustees are practitioners in professional firms who provide services to the trust in the normal course of business.
(b) No trustee has received any direct remuneration. No trustee received reimbursement of expenses during the year (2019: £nil).
11
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 5 6 |
DEBTORS Accrued income Funds held by stockbroker CREDITORS: Amounts falling due within one year Grants Committed Accruals Other creditors INVESTMENTS Fixed Interest Stocks £110,000 Treasury 2% 2025 Ordinary Shares and Unit Trusts 5,000 Aberforth Smaller Cos Ord 1p 890 Ashstead Group Ord 10p 900 AstraZeneca Ord US$0.25 10,000 Bailee Gifford American W1 Dis 1,300 Bailee Gifford Japan Sml Cos B Nav Inc 2,400 BHP Group Ord US$0.50 70,000 Blackrock FM Contl Eurp Inc D Unts Inc 13,000 BP Ord US$0.25 2,000 British American Tobacco Ord 25p 12,000 BT Group Ord 5p 3,700 Compass Group Ord 11.05p Carried forward |
2020 £ 699 52,242 52,941 25,000 12,092 6 37,098 Market value £ 120,747 62,400 30,598 65,916 177,700 75,764 46,200 123,235 33,124 54,160 15,870 50,431 856,145 |
2019 £ 2,650 31,002 |
|---|---|---|---|
| 33,652 | |||
| 55,000 24,590 6 |
|||
| 79,596 | |||
| Cost £ 115,971 64,421 14,198 14,665 54,821 60,455 38,738 111,601 59,428 69,055 40,699 22,099 |
|||
| 666,151 |
12
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 7 | INVESTMENTS Brought forward Ordinary Shares and Unit Trusts 3,500 Coupland Cardiff F CC Jpn I & G £ Uhdg 1,650 Diageo Ord 28.935185p 1,150 Experian Ord US$0.10 45,000 FILInv Svcs UK Emg Mkts R £ Acc 80,653 FILInv Svcs UK Money Builder Income I £ 1,850 Finlay Park Funds American $ Dis 36,000 First Sentier Inv Stewart Inv Asia Pac Ldrs 4,000 GlaxoSmithKline Ord 25p 120,000 Henderson Investme Pref & Bond G £ Dis 30,318 HICL Infrastructure Ord 0.01p 51,647 Hipgnosis Songs Fu Ord NPV 9,000 HSBC Holdings Ord US$0.50 (UK Reg) 2,300 IMI Ord 0.28571428p 400 Ishares £ Corp Bond 0-5 Yr Ucits ETF G 11,200 JP Morgan Mid Cap IT Ord 25p 150,000 JP Morgan Fds US Equity Inc K £ Net Inc 129,981 Jupiter UT Mngrs Stategic Bond Z Inc 12,000 Legal and General Ord 2.5p 115,000 Lloyds Banking Group Ord 10p 15,000 M & G Ord 5p 76,516 Mayfair Cap Inv Prop Inc Tst for Charities 2,500 MSIM Fung Mgt Asia Opps J $ Acc 5,000 National Grid Ord 12.431289p 50,000 Ninety One Fd Mgrs Diversified Inc J 2 60,000 North American Inc Ord 5p Carried forward |
Market value £ 856,145 55,745 47,487 31,936 63,180 85,492 213,590 106,132 53,680 73,848 52,753 63,784 34,097 26,795 43,222 127,960 178,650 88,062 31,944 41,906 29,693 62,407 88,024 43,250 50,695 146,700 2,697,177 |
Cost £ 666,151 48,008 6,580 4,609 49,903 80,750 113,956 78,996 37,169 70,235 45,792 57,019 57,085 23,614 41,364 46,481 132,173 87,444 23,825 149,653 26,271 66,000 50,116 22,616 50,354 85,699 |
|
|---|---|---|---|---|
| 2,121,863 |
13
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 7 | INVESTMENTS Brought forward Ordinary Shares and Unit Trusts 1,100 Persimmon Ord 10p 7,000 Pimco Glbl Advis UK Corp Bd Fd Inst Inc £ 3,000 Polar Capital Tech Tst Ord 25p 8,000 Princess Private Equity Ord EUR0.001 3,400 Prudential Ord 5p 600 Reckitt Benckiser Group Ord 10p 1,050 Rio Tinto Ord 10p 5,200 Royal Dutch Shell B Ord EUR0.07 30,000 Schroder Oriental Ord 1p 2,000 Smiths Group Ord 37.5p 20,000 Syncona Ord NPV 60,000 Threadneedle Inv Euro Select Z £ Inc 40,000 Tritax Big Box REIT Ord 1p 1,000 Unilever Ord 3.1111p 5,000 Vanguard Funds S&P 500 Ucits ETF $ Dis 30,000 Vodafone Group Ord US$0.2095238 3,100 WPP Ord 10p |
Market value 2,697,177 30,437 77,280 69,150 84,139 45,798 39,252 57,435 65,489 78,450 30,090 52,200 121,758 67,160 43,920 259,144 36,282 24,800 3,879,961 |
Cost 2,121,863 4,314 74,428 29,917 41,506 11,991 18,064 11,002 54,475 70,488 16,350 20,412 102,252 45,271 21,425 141,557 67,705 38,306 |
|
|---|---|---|---|---|
| 2,891,326 |
14
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
8 INVESTMENTS
MOVEMENT IN MARKET VALUE
| Market value at 1 January Additions at cost Disposal proceeds Net investment gains/(losses) Market value at 31 December Historical cost at 31 December |
2020 £ 4,604,000 306,816 (1,110,477) 79,622 3,879,961 2,891,326 |
2019 £ 4,385,874 484,816 (841,520) 574,830 |
|---|---|---|
| 4,604,000 | ||
| 3,489,375 |
15