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