THE EMERALD CHARITABLE TRUST ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED TH 30 JUNE 2021 CHARITY NUMBER- 1062594
THE EMERALD CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 30TH JUNE 2021 The Trustees present their annual report and financial statements of the charity for the year ended 30th June 2021. The financial statements have been prepared in accordan with the charity's trust 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). OBJECTIVES AND ACTIVITIES The Trust has been established to make grants for charitable purposes. Grants are only made to charities known to the settlor and unsolicited applications are therefore not considered. Public Benefit The trustees have given consideration to the Charity Commission guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Investments have been managed throughout the year by the Investment Managers, with performan being monitored by the Trustee. The Trust has therefore been able to maintain its grant-making programme. FINANCIAL REVIEW Total income of £265,714 (2020.. £2,878) was received during the year. This funded grants of £1,00012020.. £6,000) to charitable organisations. Capital investments were valued at £108,350 (2020. £94,765) at the year end. Reserves Policy The trust deed permits the spending of capital; the trustee has, however, agreed lo retain the capital for the time being and to invest it to produce income to make grants. The trustee is managing the resetves to balance the needs of current and future beneficiaries. It is not anticipated that the needs of beneficiaries will diminish over time. Investment Policy and Powers: The Trustee has the power of investment conferred by the Trustees Act 2000. The investment strategy is set by the trustees and takes account of rent demands for funds and an assessment of expected future needs (see Reserves Policy). The investment policy and strategy are reviewed with the investment manager at regular intervals. The investment objective is to maintain, overall. the real value of capital and income. Risk Management: The main risks to which the charity is exposed as identified by the Trustee have been considered and systems have been established to mitigate those risks.
THE EMERALD CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 30TH JUNE 2021 Plans for The Future The objectives remain unchanged for the future,. the intention is for continued investment management on a consistent basis and distribution of income to charitable organisations. Structure, Governance and Management The Trust was established by a Trust Deed dated 25th March 1997, charity number 1062594 and is administered by its corporate Trustee, Liverpool Charity and Voluntary serViS. REFERENCE AND ADMINISTRATIVE DETAILS Name The Emerald Charitable Trust Charity number 1062594 Principal Office LCVS 151 Dale Street Liverpool L2 2AH Liverpool Charity and Voluntary Services (LCVS), corporate trustee, which is incorporated under the Companies Act as a company limited by guarantee without share capital as company number 181759, a registered charity, number 223485, and a charitable Trust Corporation. LCVS trustees, who are also its directors, were as follows during the year. Heather Akehurst Sonia Bassey MBE Mike Thomas Heather Akehurst Dorcas Akeju Sonia Bassey MBE Maxine Ennis Jonathan Hesketh Ken Perry John Price Michael Salla Louise Scholes Gemma Shone James Sloan Mike Thomas Sue Williams Neil John Sturmey Henry Terefenko Trustees Chair (Resigned 25th November 2021) (Appointed 25th November 2021) Treasurer (Resigned 25th November 2021) (Resigned 16th November 2021) (Appointed 20th September 2022} (Resigned 23rd June 2022) (Resigned 27th July 2022)
THE EMERALD CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 30TH JUNE 2021 Investment Manager Investec Wealth & Investment 100 Old Hall Street Liverpool L3 9AB Independent Examinor Anna spenr-GraY RSM UK Tax and Accounting Limited 20 Chapel Street, Liverpool, L3 9AG
THE EMERALD CHARITABLE TRUST TRUSTEE'S RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The charity trustee is responsible for preparing a trustee's annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A¢pted Accounting Practice). The law applicable to charities in England and Wales requires the charity trustee to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial stalements, the trustee is required to.. select suitable accounting policies and then apply them consistently., • obSee the methods and principles in the applicable Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charty will continue in business. The trustee is responsible for keeping proper accounting records that 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 the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations. and the provisions of the Trust deed. It is also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustee and signed on its behalf by Mike Thomas Trustse
INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THE EMERALD CHARITABLE TRUST I report to the trustee on my examination of the accounts of The Emerald Charitable Trust ('the charity'l for the year lo 30th June 2021, which are set out on pages 7 to 13. Responsibilities and basis of report As the tiustee of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act,). I report in respect of my examination of the charity's accounts carried out under sedion 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5)Ib) of the 2011 Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, l express no opinion as to whether the accounts present a 'lrue and fair view, and my report is limited to those specific matters set out in the independent examiner's statement. Independent examiner's statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable 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 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. 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 accounts to be reached. Name.. Anna Spencer-Gray Name of applicable listed body: The Institute of Chartered Accountants in England and Wales Relevant professional qualification or body.. Chartered Accountant ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED Chartered Accountants 20 Chapel Slreet Liverpool L3 9AG Date.. 21102123
THE EMERALD CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH JUNE 2021 Unrestrictsd Funds Capital Funds 2021 Notes Income Funds 2021 Total 2021 Totsl 2020 Income from: Donations and legacies Other trading activities Investments 2a 2b 262,500 685 2,529 262,500 685 2,529 2,878 Total income 265,714 265,714 2,878 Expenditure on: Raising Funds Charitable activities 2,625 2,177 2,625 2,177 6,144 Totsl expenditure 4.802 4.802 6,144 Net income and net movement in funds before gain on investments 260,912 260.912 (3,266) Net gainl(loss) on investment assets 13,585 13,585 (7,607) Net movement in funds 260,912 13,585 274,497 (10,873) Reconciliation of funds.- Total funds brought forward 13,075 94,765 107,840 118,713 Total funds carried fOard 273,987 108,350 382.337 107,840 The notes on pages 9 to 13 form part of these accounts.
THE EMERALD CHARITABLE TRUST BALANCE SHEET AS AT 30TH JUNE 2021 Notes 30thJune 2021 30th June 2020 Fixed Assets Investment Property Investments 262,500 108,350 94,765 370,850 94,765 Current Assets Cash balance 14,591 13,219 Current Liabilities Creditors (3,1041 (144) Net Current Assets 11,487 13,075 Net Assets 382,337 107,840 The funds of the charity: Unrestricted Funds: Capital Funds Income Funds 108,350 273,987 94,765 13,075 382,337 107,840 Approved and authorised for issue by the Trustee and signed on its behalf by Mike Thomas, Trustee
THE EMERALD CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 1. Accounting Policies Basis of Accounting The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notels) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (SORP 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102. The accounts are prepared in sterfing, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The Charity 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. Going Concern At the time of approving the accounts, the trustee has reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustee continues to adopt the going concern basis of accounting in preparing the accounts. Investments Property Investment property is held at fair value, valuation carried out by an independent surveyor. The fair value will be reviewed every 4 or 5 years to ensure it is reported appropriated in the accounts. Investments In accordance with Statement of Recommended Practice.. Accounting and Reporting by Charities {SORP 2019), investments held as fixed assets are stated at fair value. Realised and unrealised gains and losses are dealt with as movements on the Capital Fund. Investments are valued at the mid-market pri on the valuation date. Fund accounting Unrestiicted funds are considered 'free' resetves and are available for use or retention at the discrelion of the Trustees, in accordance with the charity's objectives. Free reserves are undesignated funds available for the furtherance of the general objectives of the charity. Income recognition Income from investments comprises dividend income and interest and are accounted for when received in the financial year. Donations are recognised at the earlier of notification or date of receipt, in the case of the third-party donations and legacy income when reiVed by the organisation. Donations and legacies comprise of donations which are recognised in the accounts when received, with the exception of known legacies which are accounted for when their receipt is certain.
THE EMERALD CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 Other trading income relates to rental income and is recognised when the amount is certain. 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 of the obligation can be measured reliably. All expenditure is accounted for on an accrual basis. All expenses, including support and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. Raising funds costs relate to expenses incurred in the management of the investment assets. Charitable activities include grant funding, along with associated support costs, to beneficiaries. These are dealt with in the Statement of Financial Aclivities when payment has been approved by the charity. Governan costs relate to compliance with constitutional and statutory requirements and specifically include all costs incurred by the charity in producing the Annual Report. 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. Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balan 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 cosls 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. Basic financial liabilities Basic financial liabilities, including creditors 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. io
THE EMERALD CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or canlled. Taxation The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on irlcome or gains falling within those exemptions. Partial recovery is made of tax credits on UK dividend income. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT. Critical Accounting Estimates and Judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 2. Income and endowments from: Income Funds 2021 Capital Funds 2021 Total Total 2021 2020 a. Donations and Legacies Property donation 262,500 262,500 b. Other trading activities Rental income 685 685 . Investments Investments dividends and interest 2,529 2.529 2,878
THE EMERALD CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 3. Expenditure on charitable activities: Direct Support& Total Total Charitable Governance 2021 2020 Expenditure Costs To make grants for charitable purposes. 1,107 1,070 2,177 6.144 Analysed as follows.. 2021 2020 Direct charitable expenditure.. Grant funding Grant making administration costs - LCVS 1,000 107 6,000 96 1,107 6,096 2021 2020 Support & Govemance costs.. Independent examination Administration - LCVS Insuran Legal fees 318 54 204 494 48 1,070 48 Total expenditure on charitable activities 2,177 6,144 During the year the following grants were made= 2021 2020 Grants to organisations of £1,000 and over Open Hearts and Minds 5,000 5,000 1,000 Other grants 1,000 1,000 6,000 12
THE EMERALD CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 4. Investment Property A property at 8 Clifton Avenue, Eccles, M30 9QU was donated to the charity on 25th March 2021, recognised at the average market valuation of £262,500. The average market value was calculated from the valuation provided by Roberts and Roberts (Property Consultants) Limited of £250,000 and the Aspire Chartered Surveyors £275,000 at the time of the donation. 5. Fixed Asset Investments 2021 2020 Quoted Investments: Market value at 181 July 2020 Unrealised gainl{losses) on investment assets 94,765 13,585 102,372 (7,607) Market value at 30th June 2021 108,350 94,765 Book value at 30th June 2020 70,373 70,373 The trust holds 1000/0 of its fixed asset investments in a Charity Commission approved pooling scheme, the Settlors, Trust Fund (STF), administered by Liverpool Charity and Voluntary Services and, at the balance sheet date, managed by Investec Wealth & Investment. At 30th June 2021, the assets of the STF fund had a total market value of £33,037,531 (2020.. £28,526,494) of which £108,350 (2020.. £94,765) is an asset of the trust. 6. Creditors 2021 2020 Administration - LCVS Independent examination fee 2,786 318 144 3,104 144 7. Unrestricted Funds Income Fund.. Investment income and donations received for distribution as grants to charitable voluntary organisations. Capital Fund: Funds held provide income for the ongoing activities of the trust. 8. Related Party Transactions Charitable activities.. these include £107 (2020.. £96) grant making administration costs payable to LCVS. Support and governance costs include £161 (2020: £144) payable to LCVS in respect of accountancy and trust administration, and the investment administration fee of £2,625 in respect of the propety donation. LCVS is related to the Trust by virtue of being the corporate trustees. 13