**Charity Registration No. 1044136**
## **THE CONSCIENCE TRUST**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 28 SEPTEMBER 2020**
## **THE CONSCIENCE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr A Miller Mr S Whewell Mr J Anderson Mr D Acland **Charity number** 1044136 **Registered office** Michael House Castle Street Exeter Devon EX4 3LQ **Independent examiner** Mr J L Coombs MA (Cantab) FCA Simpkins Edwards LLP Michael House Castle Street Exeter Devon
## **THE CONSCIENCE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1|
|Independent examiner's report|2|
|Statement of financial activities|3|
|Balance sheet|4|
|Notes to the financial statements|5 - 11|
## **THE CONSCIENCE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
The Trustees present their report and financial statements for the year ended 28 September 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's deed , 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019)
## **Objectives and activities**
The Trust continues to support charitable causes by making grants and donations of income to working registered charities. There have been no changes in policy since the last report.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.
## **Achievements and performance**
## **Financial review**
Total income during the year was £50,084 (2019: £30,105), which included a grant of £30,000 from 'Goldman Sachs Gives'. Total expenditure was £61,863 (2019: £53,013), including grants totalling £37,000 (2019: £27,400) to Ambios Limited, a not for profit organisation. At the 28 September 2020, the charity reported an overall deficit of £32,000 which was mainly due to unrealised losses on investment of £21,807 arising in the year.
At 28 September 2020 the Trust held unrestricted reserves of £640,462 (2019: £672,462).
## **Reserves policy**
It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
## **Major risks**
The Trustees has assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The Conscience Trust is an unincorporated charity constituted by a Trust Deed
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr A Miller
Mr S Whewell Mr J Anderson
Mr D Acland
The power of appointing new Trustees of the charity is vested in the continuing Trustees.
The Trustees' r eport was approved by the Board of Trustees.
## **Mr A Miller**
Trustee Dated: 21 July 2021
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## **THE CONSCIENCE TRUST**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CONSCIENCE TRUST**
I report to the Trustees on my examination of the financial statements of The Conscience Trust (the Trust) for the year ended 28 September 2020.
## **Responsibilities and basis of report**
As the Trustees of the Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Trust’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Trust as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **J L Coombs MA ( Cantab) FCA**
Simpkins Edwards LLP Michael House Castle Street Exeter Devon EX4 3LQ
Dated: 23 July 2021
- 2 -
## **THE CONSCIENCE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2020**|2019|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Donations and legacies|**2**|30,040|8,209|
|Charitable activities|**3**|-|900|
|Investments|**4**|20,044|20,996|
|**Total income**||50,084|30,105|
|**Expenditure on:**||||
|Raising funds|**5**|2,423|2,409|
|Charitable activities|**6**|53,768|50,604|
|Other|**10**|5,669|-|
|**Total resources expended**||61,860|53,013|
|Net gains/(losses) on investments|**11**|(20,221)|
99,729|
|**Net movement in funds**||(31,997)|
76,821|
|Fund balances at 29 September 2019||672,462|595,641|
|**Fund balances at 28 September 2020**||640,465|672,462|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 3 -
## **THE CONSCIENCE TRUST**
## **BALANCE SHEET**
## _**AS AT 28 SEPTEMBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Debtors falling due after one year
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2020**
**£**
187,934
163,887
351,821
(7,089)|**£**
3
295,730
295,733
344,732
640,465
640,465
640,465|**2019**
**£**
193,660
50,528
244,188
(11,311)|**£**
122,000
317,585
439,585
232,877
672,462
672,462
672,462|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 21 July 2021
Mr A Miller **Trustee**
- 4 -
## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
The Conscience Trust is an un-incorporated charity registered in England and Wales.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Trust's deed dated 29 September 1994 and Supplement deed dated 8 January 2003, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The Trust is a Public Benefit Entity as defined by FRS 102.
The Trust 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 are prepared in sterling , which is the functional currency of the Trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
## **1.4 Incoming resources**
Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Income received by way of grants, legacies, donations and gifts is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.
Investment income is represented by:
- Dividends and interest receivable from investments listed on a recognised Stock Exchange
- Notional interest on the loan to the Torquay Coast and Countryside Trust
## **1.5 Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Costs of generating funds comprise the costs associated with managing and maintaining the Trust's investment portfolio.
- 5 -
## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
Grants payable are charged in the year when the offer is conveyed to the recipient. In those cases where a grant is conditional, such grants are recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
Other costs comprise all costs incurred in running the Trust which are necessary for furtherance of the Trust's objectives.
## **1.6 Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation. The freehold property which is a field was initially valued at the date of transfer into the charity and not depreciated. The field was subsequently revalued in the year ended 28 September 2019. The Trustees have assessed that the market value has not materially changed since the last valuation.
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.8 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, except property and investments which are shown at their fair (market) value.
## **1.9 Taxation**
Under Section 505 of the Income and Corporation Taxes Act 1988, the Trust, as a Charity, is exempt from certain taxes.
## **1.10 VAT**
The charity is not registered for Value Added Tax. In these financial statements, where applicable, expenditure is shown inclusive of VAT.
## **2 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Legacy Received|40|8,209|
|Grant received|30,000|-|
||30,040|8,209|
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## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **3 Charitable activities**
||**Tenancy**|**Tenancy**|**Tenancy**|
|---|---|---|---|
||**premiums**||**premiums**|
||**2020**||**2019**|
|||**£**|**£**|
||**2020**||2019|
|||**£**|£|
|Other income||-|900|
|**Investments**||||
||**Unrestricted**|Unrestricted||
||**funds**||funds|
||**2020**||2019|
||**£**||£|
|Rental income|1,025||-|
|Income from listed investments|6,717||7,627|
|Interest receivable|12,302||13,369|
||20,044||20,996|
|**Raising funds**||||
||**Unrestricted**|Unrestricted||
||**funds**||funds|
||**2020**||2019|
||**£**||£|
|Investment management fees.|2,423||2,409|
||2,423||2,409|
## **4 Investments**
## **5 Raising funds**
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## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **6 Charitable activities**
|Insurance costs
Accountancy fees
Management fees
Legal and professional fees
Sundry expenses
Grant funding of activities (see note 7)|**2020**
**£**
638
2,160
8,259
5,711
-
16,768
37,000
53,768|**2019**
**£**
1,391
3,000
12,380
6,338
95
23,204
27,400
50,604|
|---|---|---|
## **7 Grants payable**
||**Charitable**|
Charitable|
|---|---|---|
||**Expenditure**|
Expenditure|
||**2020**|
2019|
||**£**|
£|
|Grants to institutions:|||
|Food Exeter|-|
15,000|
|Ambios Ltd|37,000|
12,400|
||37,000|
27,400|
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.
## **9 Employees**
There were no employees during the year (2019 - none) .
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## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **10 Other**
|**Unrestricted**
**funds**
**2020**
**£**
Net loss on disposal of tangible fixed assets
5,669
5,669|Total
2019
£
-
-|
|---|---|
## **11 Net gains/(losses) on investments**
|**Net gains/(losses) on investments**|||
|---|---|---|
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Revaluation of investments|(21,807)|
10,800|
|Gain/(loss) on sale of investments|1,586|1,929|
|Revaluation of land|-|87,000|
||(20,221)|
99,729|
## **12 Tangible fixed assets**
|**Tangible fixed assets**||
|---|---|
||**Land**|
||**£**|
|**Cost or valuation**||
|At 29 September 2019|122,000|
|Disposals|(121,997)|
|At 28 September 2020|3|
|**Carrying amount**||
|At 28 September 2020|3|
|At 28 September 2019|122,000|
During the accounting year ended 30 September 2020, the Trust granted three long (999 year) leases in respect of land at Marley Road, Exmouth. The Trust retains a reversionary interest of £1 per lease
- 9 -
## **THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **13 Fixed asset investments**
|**Rathbones**
**investments**
**Other listed**
**investments**
**£**
**£**
**Cost or valuation**
At 29 September 2019
295,309
22,276
Additions
32,255
-
Valuation changes
(22,616)
809
Realised loss on disposals
193
-
Disposals
(32,496)
-
At 28 September 2020
272,645
23,085
**Carrying amount**
At 28 September 2020
272,645
23,085
At 28 September 2019
295,309
22,276
**14**
**Debtors**
**2020**
**Amounts falling due after more than one year:**
**£**
Loan to the Torquay Coast and Countryside Trust (TCCT).
187,934|**Total**
**£**
317,585
32,255
(21,807)
193
(32,496)
295,730
295,730
317,585
**2019**
**£**
193,660|
|---|---|
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**THE CONSCIENCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 SEPTEMBER 2020**_
## **14 Debtors**
## **(Continued)**
## **The Loan**
1.The purpose of the loan is to purchase specified equipment and other costs relating to the installation of a Solar panel (PV) array.
2.Interest on the loan is calculated on the following basis:
Interest shall accrue on the loan at a rate of 4% per annum above the base rate of Barclays Bank plc, as varied from time to time.
3.Subject to paragraph 4 below, the amount due from TCCT to The Conscience Trust in repayment of the loan during the term of this agreement shall equal the Feed in Tariffs (FITS) payable in respect of the installation from the date of the installation up to the repayment date.
4.On the repayment date, the lender will calculate an amount which shall equal the sum of the Advances plus interest thereon on the assumption that no repayment of the loan has been made at any time prior to the repayment date.
If the amounts that the lender has received from FITS during the term of the agreement are less than the total repayment sum, _and TCCT has observed the agreement_ , The Conscience Trust will notify TCCT that it waives the outstanding balance of the Total Repayment Sum.
If the amounts that The Conscience Trust has received from the FITS during the term of the agreement are equal or more than the Total Repayment Sum then The Conscience Trust will notify TCCT that the loan has been repaid in full.
5.However, if TCCT elects (in writing) to repay the loan before the repayment date The Conscience Trust will calculate the sum due on the Early Repayment Date.
On this basis the year end position is reported as if early repayment has been nominated at the year end date.
## **15 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Accruals and deferred income|7,089|11,311|
## **16 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
## **17 COVID 19**
The COVID 19 pandemic and resulting shut down of economic and social life in the United Kingdom resulted in a drop in the value of the charity's investment portfolio at the end of the previous financial year.. Matters have improved since that date. The trustees continue to consider the best steps to take in order to protect the assets of the Trust.
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