Approved and awaiting signature
Reports & Financial Statements
For the year ended 30 June 2022
The HCD Memorial Fund
Registered Charity No. 1044956
| Contents | Pages |
|---|---|
| Trustees’ report | 1 – 4 |
| Independent Examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the accounts | 8 – 12 |
The HCD Memorial Fund
Trustees’ report For the year ended 30 June 2022
The trustees present their annual report and financial statements of The HCD Memorial Fund (‘the Charity’) for the year ended 30 June 2022.
REFERENCE AND ADMINISTRATION INFORMATION
Charity name The HCD Memorial Fund Charity registration Number 1044956 Trustees Bill Flinn B.Arch, Dip.Arch. (Chairman) Nicholas Debenham MA Joanna Lear Susannah Drummond Millie Sherman Secretary Susannah Drummond Registered Office 24 Fern Avenue Jesmond Newcastle-upon-Tyne NE2 2QT Bankers CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME19 4JQ Solicitors Orrick, Herrington & Sutcliffe LLP 107 Cheapside London EC2V 6DN Independent Examiner John Airey FCA
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The HCD Memorial Fund
Trustees’ report (continued) For the year ended 30 June 2022
The trustees present their Trustees’ Report and financial statements in accordance with the Charities Act 2011 (the 2011 Act) and Charity SORP 2015.
1. Governing Document
The governing instrument of the Charity is a trust deed dated 7 March 1995. The Charity is constituted as an unincorporated association.
2. Objects and activities
The governing instrument states that the objects of the Charity are the furtherance of any purposes which are charitable according to English law. The Charity principally makes grants to organisations in the UK and abroad engaged in the fields of development, health, education, environment, and community action.
3. Organisational structure
The trustees meet twice a year to review income and proposals for grants. There are no employees. The Secretary deals with day-to-day administration, and correspondence with applicants and grantees, with occasional assistance from co-trustees in their area of expertise.
4. Trustees
The trustees holding office during the year and up to the date of this report are:
Bill Flinn B.Arch,Dip.Arch. (Chairman) Harriet Lear (resigned 19 November 2022) Jeremy Debenham (resigned 19 November 2022) Nicholas Debenham M.A. Joanna Lear (Treasurer) Susannah Drummond (Secretary) Millie Sherman (appointed 19 November 2022)
- Recruitment and appointment of trustees
The trustees are appointed by the governing instrument. Future trustees may be appointed by a resolution of the trustees passed at a meeting of the trustees.
- Trustee Induction and Training
Each year the trustees are kept informed of developments in the charity sector. The collective expertise of the trustees in the fields of health, development, trust administration, education and law will be supplemented when it becomes necessary.
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The HCD Memorial Fund
Trustees’ report (continued) For the year ended 30 June 2022
4. Trustees (continued)
- Statement of trustees’ responsibilities
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing the financial statements giving a true and fair view, the trustees should follow best practice and:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act. They 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. They are required to apply the funds of the Charity with complete fairness to meet the objects of the Charity.
5. Public benefit
The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit. The Charity makes grants for the benefit of those eligible under the criteria set out in its governing document. A list of the recipients and the grants made to them by the Charity can be found on pages 9 and 10.
6. Financial Review
During the year the Charity made grants to a variety of charitable organisations. The organisations concerned are involved with:
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Work in the fields of Development, Health, Education, Peace-keeping and Prison welfare in Afghanistan, Africa, Bangladesh, the Middle East, Central America, Palestine, Pakistan and Nepal.
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Work in the Environmental field, particularly in relation to Climate Change;
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Other work in the UK and Ireland for Environmental and Community projects, including refugees, prisoners and the unemployed.
The Charity also owns a freehold woodland property in the Republic of Ireland which is held for charitable purposes, including amenity value and recreational access for the community.
The Charity’s total incoming resources exceeded expended resources by £65,611 (2021: (£340,192) resulting in an unrestricted fund balance of £600,779 (2021: £535,168) being carried forward at the year end.
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Trustees’ report (continued) For the year ended 30 June 2022
The HCD Memorial Fund
7. Investment powers and policy
The governing instrument grants unrestricted powers of investment to the trustees. The policy is to give away income as soon as practicable after it accrues, keeping any unused income on temporary deposits. Thus no permanent investments are made.
8. Plans for future periods and reserves policy
The trustees’ policy is to make grants each year up to an amount similar to the income receivable whilst maintaining reserves at a level sufficient to cover all commitments likely to be met within 12 months. Under normal circumstances the level of such reserves would not be expected to exceed £400,000 in aggregate. This policy is reviewed annually in the light of actual or expected change in the pattern of contributions to the Trust.
At 30 June 2022 total free reserves funds amounted to £447,404 (2021: £381,707). Unrestricted funds which will be considered for distribution during the forthcoming year amount to £500,000 (2021: £500,000).
9. Grant making policy
The policy is to make grants as determined by the trustees at twice-yearly meetings, for all or any purposes which are charitable according to English law.
The policy is flexible as regards donees, but currently:
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maintains a balance between home and overseas grants
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directs grants mainly towards (1) the relief of human need, whether due to poverty, ill-health, disability, want of education, or other causes, and (2) projects which aim to mitigate the effects of Climate Change
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prefers projects which are small or medium-sized
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permits the taking of risks in an appropriate case.
Current practice is rarely to respond to unsolicited applications.
10. Risk Management
The trustees are not aware of any major risks. They are insured against public liability in respect of their freehold property. Once a year they review their assessment of risk (major or otherwise).
11. Independent examination
The Trustees have complied with their obligation under the 2011 Act to have the annual accounts examined by an independent examiner.
Approved by the Trustees on 19 November 2022 and signed on their behalf by:
……………………………..
Trustee
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Independent examiner’s report to the Trustees of The HCD Memorial Fund
I report on the accounts of the Fund for the year ended 30 June 2022 which are set out on pages 6 to 12.
Respective responsibilities of trustees and examiner
The Trustees are responsible for the preparation of the accounts. They consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the 2011 Act), and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under Section 145 of the 2011 Act;
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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
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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 Commission. An examination includes a review of the accounting records kept by the Fund and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, 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 accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements
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to keep accounting records in accordance with section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
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have not been met; or
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(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the Accounts to be reached.
…………………………………. Date: ……………………… J C Airey FCA
Holywell Cottage Hodsoll Street Sevenoaks Kent TN15 7LE
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The HCD Memorial Fund
Statement of financial activities For the year ended 30 June 2022
| Notes £ Incoming resources Incoming resources from generated funds: Voluntary income: - Donations 1.2 - Share of Trust income 1.3 Investment income: - Bank interest Total incoming resources Resources expended Costs of generating funds Other costs - Management of woodland property Charitable activities Grantmaking activity 2 Governance costs 3 Total resources expended Net movement in funds Reconciliation of Funds Funds brought forward at 1 July 2021 Funds carried forward at 30 June 2022 |
2022 2021 £ £ £ 613,250 622,500 217,180 121,008 304 25 830,734 743,533 3,160 4,256 758,216 1,074,533 3,747 4,936 765,123 1,083,725 65,611 (340,192) 535,168 875,360 600,779 535,168 |
|---|---|
All of the above results are derived from continuing activities.
There are no recognised gains or losses other than those stated above.
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The HCD Memorial Fund
Balance sheet as at 30 June 2022
| Notes Fixed assets Tangible assets 4 Unlisted investment at cost and market value Current assets Debtors 5 Cash at bank and in hand Total current assets Liabilities – Amounts falling due within one year Creditors 6 Net current assets Liabilities – Amounts falling due in more than one year 7 Net assets The Funds of the Charity: Unrestricted income funds Total Charity funds |
2022 £ £ 153,372 3 219,416 333,335 552,752 (72,348) 480,404 (33,000) 600,779 600,779 600,779 |
2021 £ £ 153,458 3 239,031 312,089 551,120 (70,413) 480,707 (99,000) 535,168 535,168 535,168 |
|---|---|---|
Approved by the board of Trustees on 19 November 2022 and signed on its behalf by:
………………………………………..
Trustee
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The HCD Memorial Fund
Notes to the accounts For the year ended 30 June 2022
1 Accounting policies
The accounts have been prepared in accordance with applicable accounting standards and the charity Statement of Recommended Practice (SORP 2015).
1.1 Accounting convention
The accounts are prepared under the historical cost convention.
1.2 Donations receivable
Donations are credited to income when received. Recoverable income tax is included with the donation to which it relates. Any income tax which has still to be recovered at the period end is recognised as a debtor.
1.3 Trust income
The Charity was entitled to a percentage of the income from the Debenham Property Trust, which is recognised as it accrues.
1.4 Resources expended
Expenditure is classified by category of expenditure rather than by type of expense. Allocation is on an actual basis. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
1.5. Grants payable
Grants are charged against income when they are unconditionally committed to be paid.
1.6 Funds
Following the requirements of the Statement of Recommended Practice the funds of the Charity are analysed over the different types of funds, which are:-
a) Unrestricted funds
These are funds which are not subject to any restrictions regarding their use. Designated funds (if any) are set aside by the trustees for a particular purpose, but are inclusive within unrestricted funds.
b) Restricted funds
Restricted funds are those where the donor has imposed restrictions on how the fund may be used.
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The HCD Memorial Fund
Notes to the accounts (continued) For the year ended 30 June 2022
1 Accounting policies (continued)
1.7 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Forestry equipment - 25% on net book value
No depreciation is provided on the cost of freehold land.
1.8 Foreign currency translation
Monetary assets and liabilities and transactions during the year denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Any exchange gain or loss is accounted for in the Statement of Financial Activities.
2 Grantmaking activity
Grantmaking activity comprises grants to the following charitable organisations:
| Recipient Country Health Poverty Action Guatemala Health Virtual Doctors Zambia/Malawi Health Citizens Foundation Pakistan Education Medical aid for Palestine Gaza Health British Shalom/Salaam Israel/Palestine Community Standing Voice Tanzania/Malawi Community Village Water Zambia Development Vision Aid Overseas Ghana Health Rwanda Action Rwanda Community St Joseph’s African Aid Cameroon Education United World Schools Nepal Education Concern America Central America Health Five Talents Kenya Community HealthProm Afghanistan Health Send a Cow Kenya Community Peace Direct The DR Congo Peacebuilding ID Prison Ministries Uganda/Kennya Prisons/Community Traidcraft Exchange Bangladesh Community Tools for self-help UK & (Africa) Community Recycle Africa Community Haller Foundation Kenya Community VITA (RTI) Ethiopia Community/Climate change Immigrant Council Of Ireland Ireland Refugees Justice Defenders Uganda/Kenya Prisons/Community carried forward |
Amount £ 30,000 30,000 30,000 25,000 25,000 25,000 25,000 25,000 25,000 23,700 20,500 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 16,000 15,516 15,000 15,000 525,716 |
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Notes to the accounts (continued) For the year ended 30 June 2022
The HCD Memorial Fund
2 (cont). Grantmaking activity (continued)
| Recipient Country brought forward Tempus Novo UK Community/Prisons XLP UK Community Just Wheels UK Community/Health Centre for Alternative Technology UK Climate change Children Seen and Heard UK Prisons/Community County Trust UK Community/Environment NCAC UK Community Orchard Project UK Community Sussex Community Development UK Community Baltic Centre of Art UK Community/Refugees Fareshare UK Community Total of grants made in the year Future commitments to San Carlos Hospital in Mexico made in 2021 |
Amount £ 525,716 28,000 25,000 25,000 24,500 20,000 20,000 20,000 20,000 20,000 15,000 15,000 |
|---|---|
758,216 |
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| 99,000 |
Future commitments to San Carlos Hospital in Mexico made in 2021
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The HCD Memorial Fund
Notes to the accounts (continued) For the year ended 30 June 2022
| 3 Governance costs Administration expenses reimbursed to trustees Taxation fees Accountancy charges Charge for Independent Examination Bank charges for foreign transfers (Gain) Loss on currency translation |
2022 £ 225 1,210 1,700 300 313 (1) 3,747 |
2021 £ 250 1,130 1,700 300 1,449 107 4,936 |
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4. Tangible assets
| Woodlands, held for charitable purposes Forestry equipment At cost £ £ On 1 July 2021 and 30 June 2022 153,113 19,375 Accumulated Depreciation On 1 July 2021 - 19,030 Charge for the year - 86 At 30 June 2022 - 19,116 Net book value At 30 June 2022 153,113 259 At 30 June 2021 153,113 345 5 Debtors 2022 £ Accrued income 96,266 Tax recoverable 123,150 219,416 6 Creditors – Amounts falling due within one year £ Other creditors 72,348 |
Total £ 172,488 19,030 86 19,116 153,372 153,458 2021 £ 115,031 124,000 239,031 £ 70,413 |
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The HCD Memorial Fund
Notes to the accounts (continued) For the year ended 30 June 2022
7 Creditors – Amounts falling due after one year
2022 2021 £ San Carlos grant 33,000 99,000
8 Trustees’ transactions
No trustees received remuneration or expenses in either year.
9 Commitments
As at 30 June 2022 the Charity has indicated future support to various organisations but made no binding commitment to them.
The Charity is committed to paying an annual management fee for Ballinakelly Wood of £2,200 (2021: £2,200).
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