Charity Registration No. 1045229
THE STREET FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
THE STREET FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mrs L M M Sharp-Smith |
|---|---|
| Mr R E L Smith | |
| Miss S F Smith | |
| Mrs S J Sharp-Smith | |
| Charity number | 1045229 |
| Principal address | Kingsland House |
| Kingsland | |
| Leominster | |
| Herefordshire | |
| HR6 9SG | |
| Independent examiner | Katherine Parkin FCA |
| Azets Audit Services | |
| Epsilon House | |
| The Square | |
| Gloucester | |
| United Kingdom | |
| GL3 4AD | |
| Bankers | Lloyds TSB Bank Plc |
| 49-51 Dean Street | |
| Marlow | |
| Buckinghamshire | |
| United Kingdom | |
| SL7 3BP | |
| Solicitors | Harrison Clark Rickerbys LLP |
| c/o Harrison Clark Rickerbys Limited | |
| Ellenborough House | |
| Wellington Street | |
| Cheltenham | |
| Gloucestershire | |
| United Kingdom | |
| GL50 1YD |
THE STREET FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Statement of cash flows | 6 |
| Notes to the financial statements | 7 - 12 |
THE STREET FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their report and financial statements for the year ended 31 March 2022.
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 charity's governing document, 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) (effective 1 January 2019)".
Objectives and activities
The objects of the charity are the furtherance and pursuance of charitable purposes and in such proportions and in such manner and subject to such terms and conditions as the Trustees may from time to time in their absolute discretion determine.
In order to achieve the aims and objectives of the charity, the Trustees make grants to a wide variety of organisations, both in the area local to the charity and further afield, supporting a broad range of activities and research.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees are aware of the Public Benefit provisions of the Charities Act 2011 and of the guidance on them published by the Charity Commission. They are satisfied that the objects of the charity and the activities of the charity are within the definitions of the Charitable Purpose as set down in the Act. The trustees are not aware of any public detriment caused by the charity's objects or activities, and nor are they aware of anyone receiving any private benefit from the charity's activities.
Significant activities
The objects of the charity include the provision of donations for the relief of poverty, the advancement of education, the advancement of religion and other charitable purposes as the Trustees may from time to time determine and there has been no change in these during the year.
Grants are awarded at the discretion of the Trustees following due consideration of how the funds will ultimately be spent in order to ensure the furtherance of the the aims and objectives of the charity.
Achievements and performance
There have been no significant developments or changes to the activities of the charity during the last year.
During the year grants made to charities and other not for profit organisations amounted to £540,468 (2021: £440,883).
Financial review
At the balance sheet date, "free" reserves, being unrestricted funds other than fixed assets, amounted to £413,406 (2021: £462,570).
Cash reserves at the year end (including amounts held on short term deposit) were £414,597 (2021: £463,704).
Reserves policy
The charity aims to retain free reserves sufficient to provide adequate working capital to fund its charitable activities.
Covid-19
Covid-19 has had minimal impact on the charity's operations and activities. Grants continue to be made to the extent that income permits.
- 1 -
THE STREET FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Risk assessment
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for future periods
It is expected that the charity will receive further donations at a similar level during the coming financial year and will continue to awards grants to a variety of institutions and organisations to further its charitable objectives.
Structure, governance and management
The charity is controlled by its governing document, a deed of trust signed on 20 March 1995. The charity was registered with the Charity Commission on 29 March 1995 and constitutes an unincorporated charity.
The trustees who served during the year and up to the date of signature of the financial statements were: Mrs L M M Sharp-Smith
Mr R E L Smith Miss S F Smith Mrs S J Sharp-Smith
Method of appointment of trustees
The power of appointing new trustees is vested in the Trustees.
The charity is governed by trustees who are responsible for formulating the strategies & policies of the charity including the exercising of financial controls.
On appointment Trustees are provided with appropriate training to allow them to fulfil their duties.
The charity is primarily funded through donations from related companies. Refer to the related party transactions note for further information.
The trustees' report was approved by the Board of Trustees.
Mr R E L Smith
Trustee Dated: 13 January 2023
- 2 -
THE STREET FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE STREET FOUNDATION
I report to the trustees on my examination of the financial statements of The Street Foundation (the charity) for the year ended 31 March 2022.
Responsibilities and basis of report
As the trustees of the charity 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 charity’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
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
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 charity 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.
Katherine Parkin FCA Azets Audit Services Epsilon House The Square Gloucester Business Park Gloucester GL3 4AD United Kingdom
Dated: 17 January 2023
- 3 -
THE STREET FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 500,000 | 850,000 |
| Expenditure on: | |||
| Charitable activities | 3 | 549,164 | 449,364 |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (49,164) | 400,636 | |
| Fund balances at 1 April 2021 | 462,570 | 61,934 | |
| Fund balances at 31 March 2022 | 413,406 | 462,570 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
THE STREET FOUNDATION
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Income funds Unrestricted funds - general |
2022 £ 414,597 (1,191) |
£ 413,406 413,406 413,406 |
2021 £ 463,704 (1,134) |
£ 462,570 |
|---|---|---|---|---|
| 462,570 | ||||
| 462,570 |
The financial statements were approved by the Trustees on 13 January 2023
Mr R E L Smith Trustee
- 5 -
THE STREET FOUNDATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
| 2022 Notes £ Cash flows from operating activities Cash (absorbed by)/generated from operations 11 Net cash used in investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2021 £ £ (49,107) - - (49,107) 463,704 414,597 |
£ 400,660 - - |
|---|---|---|
| 400,660 63,044 |
||
| 463,704 |
- 6 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
The Street Foundation is an unincorporated charity and is registered with the Charity Commission under number 1045229. The address of the principal office can be found on the legal and administrative information page.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, the principal accounting policies are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements where required.
1.4 Income
Income is recognised when the charity 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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
The charity receives donated resources from the HR Smith Group of companies in the form of provision of office space but as the value of these resources cannot be quantified the income and expenditure has not been recognised in the statement of financial activities.
Interest on funds held on deposit is included when receivable & the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
- 7 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Irrecoverable VAT is charged against the category of resources expended for which it is incurred.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes to the financial statements.
Committed grants are recognised in full in the year in which they are approved with future payments being included as liabilities. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
- 8 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.8 Taxation
The charity is exempt from corporation tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of chargeable Gains Act 1992 to the extent that these applied to the charitable objects.
1.9 Provisions
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 500,000 | 850,000 |
- 9 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
3 Charitable activities
| Funding of activities Funding of activities 2022 2021 £ £ Grant funding of activities (see note 4) 540,468 440,883 Share of support costs (see note 5) 7,235 7,227 Share of governance costs (see note 5) 1,461 1,254 549,164 449,364 Grants payable 2022 2021 £ £ Grants to institutions: Disability 5,000 1,000 Poverty 1,000 42,500 Education 426,010 329,133 Community 88,458 18,250 Human Rights 20,000 50,000 Other - - 540,468 440,883 2022 2021 £ £ Detail of grants to institutions: The Centre for Social Justice 30,000 30,000 The Global Warming Policy Foundation 50,000 - Oxford University Museum of Natural History 31,399 60,700 Civitas 107,111 72,473 The Natural History Museum 42,000 47,200 Faith Truth and Hope - 10,000 The New Culture Forum 150,000 25,000 The Politics and Economics Research Trust - 50,000 Hope Scott Hostel - 15,000 Humanitarian Aid Relief Trust - 15,000 The Institute of Economic Affairs 15,000 40,000 The Maggie Oliver Foundation 20,000 20,000 Liverpool Charity and Voluntary Services - 10,000 The Foundation for the History of Totalitarianism - 10,000 St Michael's Restoration Fund 53,808 - Lower Teme Valley PCC 18,700 - |
Funding of activities Funding of activities 2022 2021 £ £ Grant funding of activities (see note 4) 540,468 440,883 Share of support costs (see note 5) 7,235 7,227 Share of governance costs (see note 5) 1,461 1,254 549,164 449,364 Grants payable 2022 2021 £ £ Grants to institutions: Disability 5,000 1,000 Poverty 1,000 42,500 Education 426,010 329,133 Community 88,458 18,250 Human Rights 20,000 50,000 Other - - 540,468 440,883 2022 2021 £ £ Detail of grants to institutions: The Centre for Social Justice 30,000 30,000 The Global Warming Policy Foundation 50,000 - Oxford University Museum of Natural History 31,399 60,700 Civitas 107,111 72,473 The Natural History Museum 42,000 47,200 Faith Truth and Hope - 10,000 The New Culture Forum 150,000 25,000 The Politics and Economics Research Trust - 50,000 Hope Scott Hostel - 15,000 Humanitarian Aid Relief Trust - 15,000 The Institute of Economic Affairs 15,000 40,000 The Maggie Oliver Foundation 20,000 20,000 Liverpool Charity and Voluntary Services - 10,000 The Foundation for the History of Totalitarianism - 10,000 St Michael's Restoration Fund 53,808 - Lower Teme Valley PCC 18,700 - |
Funding of activities Funding of activities 2022 2021 £ £ Grant funding of activities (see note 4) 540,468 440,883 Share of support costs (see note 5) 7,235 7,227 Share of governance costs (see note 5) 1,461 1,254 549,164 449,364 Grants payable 2022 2021 £ £ Grants to institutions: Disability 5,000 1,000 Poverty 1,000 42,500 Education 426,010 329,133 Community 88,458 18,250 Human Rights 20,000 50,000 Other - - 540,468 440,883 2022 2021 £ £ Detail of grants to institutions: The Centre for Social Justice 30,000 30,000 The Global Warming Policy Foundation 50,000 - Oxford University Museum of Natural History 31,399 60,700 Civitas 107,111 72,473 The Natural History Museum 42,000 47,200 Faith Truth and Hope - 10,000 The New Culture Forum 150,000 25,000 The Politics and Economics Research Trust - 50,000 Hope Scott Hostel - 15,000 Humanitarian Aid Relief Trust - 15,000 The Institute of Economic Affairs 15,000 40,000 The Maggie Oliver Foundation 20,000 20,000 Liverpool Charity and Voluntary Services - 10,000 The Foundation for the History of Totalitarianism - 10,000 St Michael's Restoration Fund 53,808 - Lower Teme Valley PCC 18,700 - |
|---|---|---|
| 2022 £ 540,468 7,235 1,461 549,164 2022 £ 5,000 1,000 426,010 88,458 20,000 - 540,468 2022 £ 30,000 50,000 31,399 107,111 42,000 - 150,000 - - - 15,000 20,000 - - 53,808 18,700 |
2021 £ 440,883 7,227 1,254 |
|
| 449,364 | ||
| 2021 £ 1,000 42,500 329,133 18,250 50,000 - |
||
| 440,883 | ||
| 2021 £ 30,000 - 60,700 72,473 47,200 10,000 25,000 50,000 15,000 15,000 40,000 20,000 10,000 10,000 - - |
4 Grants payable
- 10 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
4 Grants payable
| Grants payable Other Support costs Bank charges Rates Independent examiners fee Analysed between Charitable activities |
Support costs Governance costs £ £ 374 - 6,861 - - 1,461 7,235 1,461 7,235 1,461 |
(Continued) 22,450 33,510 540,468 438,883 2022Support costs Governance costs 2021 £ £ £ £ 374 367 - 367 6,861 6,860 - 6,860 1,461 - 1,254 1,254 8,696 7,227 1,254 8,481 8,696 7,227 1,254 8,481 |
(Continued) 22,450 33,510 540,468 438,883 2022Support costs Governance costs 2021 £ £ £ £ 374 367 - 367 6,861 6,860 - 6,860 1,461 - 1,254 1,254 8,696 7,227 1,254 8,481 8,696 7,227 1,254 8,481 |
|---|---|---|---|
| 438,883 | |||
| 2021 £ 367 6,860 1,254 |
|||
| 8,481 | |||
| 8,481 |
5 Support costs
Governance costs include amounts payable to the independent examiner of £611 (2021: £582) for Independent Examination and £850 (2021: £672) payable to the Independent Examiner for other accountancy services provided.
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration, benefits or reimbursed expenses from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| Total 8 Creditors: amounts falling due within one year Accruals and deferred income |
2022 Number - 2022 £ 1,191 |
2021 Number - |
|---|---|---|
| 2021 £ 1,134 |
- 11 -
THE STREET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
9 General unrestricted funds
These are unrestricted funds which are material to the charity's activities made up as follows:
| Movement | in funds | Movement | in funds | |||||
|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Balance at | Incoming | Resources | Balance at | ||
| 1 | April 2020 | resources | expended | 1 April 2021 | resources | expended | 31 March | |
| 2022 | ||||||||
| £ | £ | £ | £ | £ | £ | £ | ||
| Unrestricted funds | 61,934 | 850,000 | (449,364) | 462,570 | 500,000 | (549,164) | 413,406 |
10 Related party transactions
Transactions with related parties
During the year the charity entered into the following transactions with related parties:
| Donations | received | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| H R Smith Group Limited | 400,000 | 750,000 |
| 400,000 | 750,000 |
Mr Richard Smith and Miss Susan Smith are Trustees of the charity and also directors and shareholders of H R Smith Group Limited. The charity received donations without conditions as detailed above.
| 11 Cash generated from operations (Deficit)/surplus for the year Movements in working capital: Increase in creditors Cash (absorbed by)/generated from operations |
2022 £ (49,164) 57 (49,107) |
2021 £ 400,636 24 |
|---|---|---|
| 400,660 |
12 Analysis of changes in net funds
The charity had no debt during the year.
- 12 -