THE SPEAR CHARITABLE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2021
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 | |
| (resigned 6 January 2022) | |||
| Richard M Horwood | |||
| (appointed 6 January 2022) | |||
| 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 2021
The trustees present their report along with the financial statements of the trust for the year ended 31 December 2021. 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 £4,415,325 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 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 2021
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 page 8.
FINANCIAL REVIEW
There was an overall increase in funds of £468,622 (2020 - decrease £619,174) after accounting for profits on investment assets of £459,987 (2020 – £79,622)
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:
………………………………………………………………
27 June 2022
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 2021 which are set out on pages 5 to 13.
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
11 August 2022
4
THE SPEAR CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| 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 INCOME/(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 2021 £ 108,816 - 108,816 22,127 4,425 26,552 58,850 14,779 100,181 8,635 459,987 468,622 3,946,703 4,415,325 |
Unrestricted Funds 2020 £ 110,911 7,500 |
||
|---|---|---|---|---|
| 118,411 | ||||
| 22,127 4,425 |
20,743 4,148 |
|||
| 24,891 783,079 9,237 |
||||
| 817,207 | ||||
| (698,796) 79,622 |
||||
| (619,174) 4,565,877 |
||||
| 3,946,703 |
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 2021
| 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 |
2021 £ 4,253,222 115,852 62,742 178,594 (16,491) 162,103 3,946,703 4,415,325 |
2020 £ 3,879,961 |
|---|---|---|
| 52,941 50,899 |
||
| 103,840 (37,098) |
||
| 66,742 | ||
| 3,946,703 | ||
| 3,946,703 |
Approved by the Board of Trustees and signed on its behalf by
...…………………..…..……… Trustee
27 June 2022
6
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 |
2021 £ - 108,816 108,816 |
2020 £ 37 110,874 |
|---|---|---|---|
| 110,911 |
7
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 3 | CHARITABLE ACTIVITIES- Grants and Donations Bernese Rescue Doctor Graham’s Homes Hertford Choral Society Little Munden Church Lord Whisky Sanctuary Nowzad UK Pekinese Rescue Royal Philatelic Society London RSPCA Brighton Salvation Army Stamp Active Network St Margaret’s Church War Paws Wood Green – Dog House Donations for the charitable assistance of former employees of JW Spear & Sons plc and the family and dependants of such former employees: 8 (2020: 6) Sundry donations: 1 (2020: none) |
2021 £ 1,000 1,000 5,000 2,550 1,500 30,000 - - 1,000 - - 1,000 2,000 1,000 12,300 500 58,850 |
2020 £ - 4,500 - - - - 1,000 750,000 - 2,500 1,000 - - - 24,079 - |
|---|---|---|---|
| 783,079 |
8
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 4 | OTHER Independent examination Accountancy (4a) Professional fees (4a) Office costs (4b) Irrecoverable VAT |
2021 £ 560 3,680 8,700 99 1,740 14,779 |
2020 £ 535 3,530 4,250 72 850 |
|---|---|---|---|
| 9,237 |
(a) Three named 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 (2020: £nil).
9
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 5 6 7 |
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 20,000 Apax Global Alpha Ord NPV 16,980 Artemis Fd Mgrs US Smaller Cos I Acc 890 Ashstead Group Ord 10p 900 AstraZeneca Ord US$0.25 7,800 Bailee Gifford American W1 Dis 4,780 Bailee Gifford Japanese W1 Dis 2,400 BHP Group Ord US$0.50 70,000 Blackrock FM Contl Eurp Inc D Unts Inc 27,095 BP Ord US$0.25 2,000 British American Tobacco Ord 25p 2,850 Compass Group Ord 11.05p Carried forward |
2021 £ 699 115,153 115,852 - 16,485 6 16,491 Market value £ 115,113 73,200 45,400 62,410 52,884 78,102 135,174 85,849 52,788 134,715 89,549 54,670 47,054 1,026,908 |
2020 £ 699 52,242 |
|---|---|---|---|
| 52,941 | |||
| 25,000 12,092 6 |
|||
| 37,098 | |||
| Cost £ 115,971 64,421 38,701 64,127 14,198 14,665 42,760 87,474 38,738 111,601 107,247 69,055 17,022 |
|||
| 785,980 |
10
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 7 | INVESTMENTS Brought forward Ordinary Shares and Unit Trusts 41,830 Cordiant Digital I Ord C Shs NPV 1,650 Diageo Ord 28.935185p 1,150 Experian Ord US$0.10 24,870 Fidelity Ucits ICA US Qual Inc Etf £ I 45,000 FILInv Svcs UK Emg Mkts R £ Acc 80,653 FILInv Svcs UK Money Builder Income I £ 1,200 Finlay Park Funds American $ Dis 41,500 First Sentier Inv Stewart Inv Asia Pac Ldrs 4,000 GlaxoSmithKline Ord 25p 120,000 Henderson Investment Fxd Int Monthly Inc 30,318 HICL Infrastructure Ord 0.01p 51,647 Hipgnosis Songs Fu Ord NPV 9,000 HSBC Holdings Ord US$0.50 (UK Reg) 1,400 IMI Ord 0.28571428p 400 Ishares £ Corp Bond 0-5 Yr Ucits ETF G 11,200 JP Morgan Mid Cap IT Ord 25p 75,000 JP Morgan Fds US Equity Inc K £ Net Inc 52,200 Jupiter UT Mngrs Japan Inc Z £ Dis 85,547 Jupiter UT Mngrs Stategic Bond X £ Dis 12,000 Legal and General Ord 2.5p 115,000 Lloyds Banking Group Ord 10p 76,516 Mayfair Cap Inv Prop Inc Tst for Charities 2,500 Morgan Stanley IF Asia Opps J $ Acc 3,600 National Grid Ord 12.431289p Carried forward |
Market value £ 1,026,908 43,294 66,594 41,768 170,826 64,170 81,701 177,203 137,743 64,264 71,856 53,542 64,559 40,379 24,304 42,140 149,520 111,825 62,196 85,914 35,700 54,970 73,869 70,822 38,153 2,854,220 |
Cost £ 785,980 41,830 6,580 4,609 141,356 49,903 80,750 73,917 95,220 37,169 70,235 45,792 57,020 57,085 14,373 41,364 46,481 66,086 61,304 87,444 23,825 149,653 66,000 50,116 16,283 |
|
|---|---|---|---|---|
| 2,170,375 |
11
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 7 | INVESTMENTS Brought forward Ordinary Shares and Unit Trusts 4,260 Neuberger Ber Inv US Sml Cap Intrinsic 50,000 Ninety One Fd Mgrs Diversified Inc J 2 Inc 44,000 North American Inc Ord 5p 1,100 Persimmon Ord 10p 190 Pictet Robotics I £ Acc 7,000 Pimco Glbl Advis UK Corp Bd Fd Inst Inc £ 2,600 Polar Capital Tech Tst Ord 25p 8,000 Princess Private Equity Ord EUR0.001 2,400 Prudential Ord 5p 955 Rio Tinto Ord 10p 30,000 Schroder Oriental Ord 1p 20,000 Syncona Ord NPV 60,000 Threadneedle Inv Euro Select Z £ Inc 27,000 Tritax Big Box REIT Ord 1p 1,000 Unilever Ord 3.1111p 5,000 Vanguard Funds S&P 500 Ucits ETF $ Dis 415 Vanguard Inv Ser US Govt Bond Idx £ Dis 30,000 Vodafone Group Ord US$0.2095238 |
Market value 2,854,220 44,304 49,570 123,200 31,416 49,212 73,710 70,928 97,057 30,588 46,719 80,550 42,400 142,404 67,230 39,455 333,454 43,127 33,678 4,253,222 |
Cost 2,170,375 44,432 50,354 62,846 4,314 45,876 74,428 25,928 41,507 8,464 10,007 70,488 20,412 102,252 30,558 21,425 141,705 42,987 67,705 |
|
|---|---|---|---|---|
| 3,036,063 |
12
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8 INVESTMENTS
MOVEMENT IN MARKET VALUE
| Market value at 1 January Additions at cost Disposal proceeds Net investment gains Market value at 31 December Historical cost at 31 December |
2021 £ 3,879,961 717,473 (804,199) 459,987 4,253,222 3,036,063 |
2020 £ 4,604,000 306,816 (1,110,477) 79,622 |
|---|---|---|
| 3,879,961 | ||
| 2,891,326 |
13