**Registered Charity No. 1057019** ## **THE PHILLIPS CHARITABLE TRUST** __________________________________________________________________ ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5th APRIL 2021** __________________________________________________________________ ## **JERVIS & PARTNERS CHARTERED ACCOUNTANTS REGISTERED AUDITORS** **THE PHILLIPS CHARITABLE TRUST** ## Page 1 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** Index to the financial statements ||**PAGE**| |---|---| |**Legal and administrative details**|2| |**Report of the Trustees**|3 - 5| |**Independent examiner’s report**|6| |**Principal accounting policies**|7 - 8| |**Statement of fnancial activities**|9| |**Balance Sheet**|10| |**Notes to the fnancial statements**|11 - 14| **THE PHILLIPS CHARITABLE TRUST** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** Page 2 ## Legal and administrative details ## **Charity registration number:** 1057019 |**Principal address:**|1 Church Lane| |---|---| ||Brafeld on the Green| ||Northants| ||NN7 1BA| |**Trustees:**|M J Ford| ||M J Percival| ||Mrs A M Marrum| ||P R Saunderson| ||Mrs P P Schanschief| |**Clerk to the Trustees:**|Anne Henman| ||1 Church Lane| ||Brafeld on the Green| ||Northants| ||NN7 1BA| |**Bankers:**|Lloyds Bank plc| ||NORTHAMPTON| |**Solicitors:**|Hewitsons LLP| ||Elgin House| ||Billing Road| ||NORTHAMPTON| ||NN1 5AU| |**Stockbrokers:**|Brewin Dolphin Securities Limited| ||London| |**Independent Examiner:**|Jervis & Partners| ||Chartered Accountants| ||135/137 Wellingborough Road| ||Rushden| ||Northants| ||NN10 9TE| **THE PHILLIPS CHARITABLE TRUST** Page 3 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## Report of the Trustees The Trustees present their report together with financial statements for the year ended 5 April 2021. This report is prepared in accordance with the Scheme approved by the Charity Commissioners and the recommendation of the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102) and complies with applicable law. ## **Structure, governance and management** The Phillips Charitable Trust (“the Trust”) is established for charitable purposes and is governed by a Trust Deed dated 2 November 1995 as amended by a Deed of Variation and Appointment dated 21 June 1996. ## **Trustees** The present membership of the Board is set out on page 2. The original Trustees were appointed by the Founder, Mrs Phillips. Following her death, further Trustees can only be appointed by the current Trustees for the time being. ## **Risk assessment** The Trustees have assessed the major risks to which the Charity is exposed. They have invested in a low to moderate risk and diversified investment portfolio and also take steps to limit the potential risks to the Charity’s investment properties. ## **Objectives and activities** In accordance with its Trust Deed, the Trust’s principal objective is to hold funds and income thereon for the benefit of the charitable institutions or purposes, at the Trustees’ discretion. Following the death of Mrs Phillips on 25 February 1997, capital assets in the sum of £1,525,766 were appointed to the Trust. The Trustees’ role is to hold the Trust funds upon trust and to apply the capital and income thereon for the benefit of charitable institutions and purposes. ## **Grant policy** Applications for grants are sent to the Trustees for consideration. They consider whether they think a grant would be of merit and, if so, if the application will be granted and the value. Grants are made to registered charities and certain individuals. **THE PHILLIPS CHARITABLE TRUST** Page 4 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## **Meetings** Although ‘in person’ meetings were not possible during the year due to Covid-19 restrictions, the regular work of the trustees continued by way of email correspondence. ## **Achievement and Performance** The Trust maintained its annual grant of £12,000 for **SportsAid Eastern** , an organisation committed to helping young people to further their career in a wide range of sporting activities. The trustees prefer applicants based in Northamptonshire. The year was the fifteenth since the grants began; to date a total of £145,000 has been awarded. The third tranche of a pledged £15,000 for three years was awarded to the Northampton Hope Centre, towards the cost of opening the centre on Saturday mornings. Small grants were made to several other charities, although were limited because of reduced income. ## **Investment policy** The Board’s policy is to ensure that a reasonable level and balance of income and capital growth is maintained each year for listed investments. During the year, the return on listed investments was 1.70% (2020 – 2.50%). The Charity has also invested in property for its long term investment potential and rental income. ## **Financial Review** The Trustees have maintained the Charity’s policy in applying funds for the benefit of charitable institutions in accordance with its objects. , The net outgoing resources for the year amounted to £10,032 (2020 - £4,302). In addition, there were realised gains of £113,626 (2020 - losses £38,493) on the disposal of investment assets and unrealised gains of £435,739 (2020 – losses £115,254) on the revaluation of investment assets. Overall, there was a increase in restricted funds of £539,333 (2020 - decrease £198,049). ## **Financial** The trustees maintained regular contact with Financial Advisers Brewin Dolphin, and the Trust’s investment portfolio was kept under regular review in order to maintain, as far as possible, a reasonable level of income and some opportunity for capital growth. ## **Assets** The assets are held in pursuance of the Charity’s objectives. The net assets of restricted funds amounted to £2,898,098 at 5 April 2021 (2020 £2,358,765). ## **Reserves policy** **THE PHILLIPS CHARITABLE TRUST** Page 5 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** All of the funds of the Charity are restricted and therefore there are no ‘free’ reserves. However, the Trustees have the power to pay management and administration expenses though do not consider it necessary to allocate reserves for future expenditure of this nature as it is unlikely to reach a level to affect the Charity’s resources and activities. ## **Public benefit** In accordance with its constitution, the Trust provides public benefit by making grants to organisations concerned with helping people in all areas of the community, both nationally and locally, and without restriction. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities and setting up the grant making policy for the year. ## **Statement of Trustees’ responsibilities** The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period. In preparing these financial statements, the Trustees are required to:- - select suitable accounting policies and then apply them consistently - observe the methods and principles in the Charities SORP - make judgements and estimates that are reasonable and prudent - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. 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. ON BEHALF OF THE TRUSTEES **THE PHILLIPS CHARITABLE TRUST** ## Page 6 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** M J Ford Trustee Date: 5 July 2021 **THE PHILLIPS CHARITABLE TRUST** Page 7 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## Independent Examiner’s Report to the Trustees of The Phillips Charitable Trust We report on the accounts of The Phillips Charitable Trust for the year ended 5 April 2021 which comprise the principal accounting policies, the statement of financial activities, the balance sheet and notes 1 to 10. ## R **esponsibilities and basis of report** As the Charity’s Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011(‘the Act’). We report in respect of our examination of the charity’s accounts carried out under section 145 of the Act and in carrying out our examination we have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent Examiner’s statement** We have completed our examination. We confirm that no material matters have come to our attention in connection with the examination giving us cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 13 of the Act; or - 2 the accounts do not accord with those records; or - 3 the accounts 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. We have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Jervis & Partners Chartered Accountants 135/137 Wellingborough Road Rushden Northants NN10 9TE **THE PHILLIPS CHARITABLE TRUST** # Page 8 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2020** **THE PHILLIPS CHARITABLE TRUST** Page 9 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## Significant Accounting Policies ## General Information The Phillips Charitable Trust is a registered Charity in the United Kingdom. The address of the Charity’s office is given in the legal and administrative information on page 2. The nature of the Charity’s operations and principal activities are given in The Report of the Trustees on page 3 and 5. The Charity constitutes a public benefit entity as defined by FRS102. ## **Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standards (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as applied from January 2015. They have been prepared under the historical cost convention except that investments are valued at market value which is deemed to be their fair value (see below). The principal accounting policies of the Charity have remained unchanged from the previous year and are set out below. ## **Income Recognition** ## **Investment income** Investment income is recognised when receivable and when the Charity is legally entitled. ## **Expenditure Recognition** 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 settlement will be required and the amount and obligation can be measured reliably. Expenditure is recognised on an accruals basis and allocated to the headings below. Expenditure, which is charged on an accruals basis, is allocated between:- - raising funds which consists of investment management fees and expenditure on investment properties; - charitable activities which represent the grants made; - Other costs which compromise the compliance and statutory costs incurred by the Charity such as independent examiners fees and legal advice. ## **Grants payable** Grants payable are payments to institutions in the furtherance of the charitable objectives of the Trust and are accounted for as they fall due. **THE PHILLIPS CHARITABLE TRUST** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** Page 10 ## **Fund accounting** Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with a fair allocation of overheads and support costs. ## **Fixed Asset Investments** Traded securities are valued at the mid-point quotation in the Stock Exchange Daily List, which is deemed to be their fair value. Other investments are included at Trustees’ best estimate of fair value. In accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102), properties that are held for long term investment are included in the balance sheet at their open market values which is deemed to be the fair value. The surpluses or deficits on revaluation of such properties are transferred to the Restricted fund. Depreciation is not provided in respect of freehold investment properties. This policy represents a departure from statutory accounting principles, which require depreciation to be provided on all fixed assets. The Trustees consider that this policy is necessary in order that the financial statements may give a true and fair view, because current values and changes in current values are of prime importance rather than the calculation of systematic annual description. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified. Net gains and losses arising on revaluations and disposals during the year are included as part of the net income in the statement of financial activities. **THE PHILLIPS CHARITABLE TRUST** Page 11 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## Statement of financial activities |Statement of fnancial
activities|||| |---|---|---|---| ||**Note**|**Restricted**|**Restrict**| ||||**ed**| |||**Funds**|**Fund**| ||||**s**| |||**2021**|**202**| ||||**0**| |||**£**|**£**| |**Income**|||| |Investment income|1|57,875|66,38| ||||1| |Other income|1|-|| ||||-| |||______|______| |**Total income**||57,875|66,38| ||||1| |||______|______| |**Expenditure**|||| |Raising funds|2|17,774|16,97| ||||8| |Charitable activities|2|48,000|51,15| ||||0| |Other|2|2,133|2,555| |||______|______| |**Total expenditure**||67,907|70,68| ||||3| |||______|______| |**Net gains (losses) on investments:-**|||| |Revaluation of investment property|8|5,000|-| |Investment assets - Realised (losses)|8|113,626|| |gains|||(38,49| ||||3)| |- Unrealised (losses)|8|430,739|| |gains|||(155,2| ||||54)| |||_______|_______| ||||_| |||549,365|(193,7| ||||47)| |||________|_______| ||||_| **THE PHILLIPS CHARITABLE TRUST** Page 12 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** |**Net movement in funds**
**Reconciliation of funds:-**
**Fund balance brought forward**

**at 6 April 2020**
**Fund balance carried forward**
**at 5 April 2021**
8|539,333
2,358,765

________
2,898,098
_________|(198,0
49)
2,556,
814
_______
_
2,358,
765
| |---|---|---| All income and expenditure derive from continuing activities. **The accompanying accounting policies and notes form an integral part of these financial statements.** ## Balance sheet |Balance sheet|||||| |---|---|---|---|---|---| ||**Note**|**2021**||**2020**|| |||**£**|**£**|**£**|**£**| |**Fixed assets**|||||| |Investment properties|4||165,000||| ||||||160,| ||||||000| |Investments|5||2,693,255||2,154,| ||||||786| ||||________||_______| ||||||_| |**Total fxed assets**|||2,858,255||2,314,| ||||||786| |**Current assets**|||||| |Debtors|6|-||-|| |Cash at bank and in hand||47,483||52,867|| |||______||______|| |**Total current assets**||||52,867|| |||47,483|||| |**Liabilities**|||||| |**Creditors: amounts falling due**|||||| |**within one year**|7|7,640|||| |||||8,888|| |||_____||_____|| |**Net current assets**|||39,843||43,9| **THE PHILLIPS CHARITABLE TRUST** Page 13 ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** |**Total assets less current liabilities**
**The funds of the Charity**
Restricted income funds
8
The fnancial statements were approved by the Board of Trustees
A M Marrum
M J Ford
Trustee
Trustee|________
2,898,098
________
2,898,098
________
on 5 July 2021.|79
_______
_
2,368,
765| |---|---|---| |||_______
_
2,368,
765| |||_______
_| **The accompanying accounting policies and notes form an integral part of these financial statements.** **THE PHILLIPS CHARITABLE TRUST** Page 14 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## Notes to the financial statements |Notes to the fnancial statements||| |---|---|---| |**1**
**Investment income**
Dividends from listed investments
Bank deposit interest
Income from property (rents)
Other income:-
Dilapidations contribution|**2021**
**£**
45,861
14
12,000
______
57,875
______
-|**202**
**0**
**£**
53,9
67
352
12,
062
_____
_
66,
381| |||_____
_
-| ## **2 Expenditure** ## **Charitable activities** The Charity undertook no direct charitable activities, but made the following charitable donations to institutions in furtherance of its charitable activities. ||**2021**|**2020**| |---|---|---| |**Name of recipient**|**£**|**£**| |Exelsior Trust|-|2,500| |Tallships Day Trust|-|1,000| |Animals in Need|-|2,000| |SportsAid Eastern|12,000|12,000| |Nene Valley Care Trust|-|2,000| |Childrens Aid Team|-|1,000| |Asthma Relief|-|2,000| |Rev’d Canon N.Setterfeld|-|2,000| |Disabled Sailors Association|3,500|-| |Age Concern|-|1,650| |Nancy Oldfeld Trust|-|2,000| |Association of Youth Clubs|-|2,000| |Seafarers UK|-|2,000| |East Northants Faith Group|-|2,000| |Sailors Childerens Society|1,000|| |The Hope Centre|15,000|15,000| |World Horse Centre|2,000|-| |Daventry Contact|-|1,000| |Seeing Dogs|3,500|-| |Museum of Leathercare|5,000|-| |Serve|5,000|-| |Spencer Contact|1,000|1,000| ||______|______| ||48,000|51,150| **THE PHILLIPS CHARITABLE TRUST** Page 15 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2021** |**Raising funds**
Property expenses

Investment management fees

Investment valuation fee



**Other costs**

Independent Examination fees

Clerk to the Trustees fees and administrative costs

|______
**2021**
**£**
725
16,269
780
______
17,774
______

1,320
813
_____
2,133
|______
**202**
**0**
**£**
720
16,258
-
______
16,97
8
______

1,356
1,199
_____
2,555
| |---|---|---| ## **3 Payments to Trustees and connected persons** No Trustee or person with a family or business connection with a Trustee received remuneration or expenses in the year directly from the Charity. ## **4 Investment properties** |**Investment properties**|| |---|---| ||**£**| |Valuation and net book amount at 6 April 2020|160,000| |Revaluation in year|5,000| ||_______| |Valuation and net book amount at 5 April 2021|165,000
_______
| The investment property is located in the UK and was professionally valued at open market value as at 5 April 2021 by Messrs Underwoods, Chartered Surveyors, and this value has been incorporated in the financial statements. The basis of the valuation used was open market value which is deemed to be the fair value. **THE PHILLIPS CHARITABLE TRUST** Page 16 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2021** ## **Investment properties (continued)** The investment property comprises:- |2, Burystead Place, Wellingborough|**2021**
**£**
165,000
_______|**2020**
**£**
160,0
00
______

| |---|---|---| If the investment property had not been revalued, it would have been included on the historical cost basis at the following amounts:- |Cost and net book amount
**5**
**Fixed asset investments**
Valuation and net book amount
At 6 April 2020
Additions in year
Unrealised gains in year
Disposals in year
At 5 April 2021|**2021**
**2020**
**£**
**£**
87,000
87,000
______
______

**Listed**
**investments**
**£**
2,154,786
876,957
430,
739
(769,227)
_________
2,693,255
| |---|---| Listed investments are stated at their mid market value as at the balance sheet date which is their fair value. If listed investments had not been revalued, they would have been included on the historical cost basis at the following amounts:- |Cost and net book amount|**2021**
**£**
2,201,708|**2020**
**£**
2,070,
161| |---|---|---| **THE PHILLIPS CHARITABLE TRUST** Page 17 **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2021** _ **THE PHILLIPS CHARITABLE TRUST** Page 18 **TH APRIL 2021** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 5** |**6**
**Debtors**

Accrued income and prepayments

**7**
**Creditors falling due within one year**
Accruals - professional fees and income in advance|**2021**
**2020**
**£**
**£**
-
-
___
___

**2021**
**2020**
**£**
**£**
7,640
8,888


| |---|---| **8 Restricted income funds** |Accumulated
capital fund
Accumulated
revenue fund
(67,907)

(67,907)|**At**
**At**
**6 April Incoming**
**Realised**
**Unrealised**
**5**
**April**
**2020 resources Expenditure**
**gains gains**
**2021**
2,381,592
-
-
113,626
435,739
2,930,
957
(22,827) 57,875

--
(32,85
9)
_________
______
_______
______
_______ _________
2,358765 57,875
113,626 435,739
2,898,098


| |---|---| The fund was established on 2 November 1995 by Mrs D G Phillips for the purpose of benefiting charitable institutions or the furtherance of charitable purposes. Following the death of Mrs Phillips on 25 February 1997, the whole of the residue of her Estate in the sum of £1,525,766 passed to the Trust. The fund is represented by investments and short term deposits. ## **9 Capital commitments** There were no capital commitments at 5 April 2021 or 5 April 2020. ## **10 Contingent liabilities** There were no contingent liabilities at 5 April 2021 or 5 April 2020.