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2020-12-31-accounts

THE ROUS CHARITY

Trustee's Report and Financial Statements

31 December 2020

Registered Charity Number 1068581

THE ROUS CHARITY TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Contents Page
Officers and professional advisers 1
Trustee's report 2
Independent auditor's report 6
Statement of financial activities 9
Statement of financial position 10
Notes to the financial statements 11

THE ROUS CHARITY TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

REGISTERED CHARITY NUMBER: 1068581

TRUSTEE

Racing Homes (a company limited by guarantee)

DIRECTORS OF RACING HOMES

Simon Hope (Chair) William Barlow Craig Glasper Gary Middlebrook (resigned 9 June 2020) Patrick Russell

CHIEF EXECUTIVE

Dawn Goodfellow

REGISTERED OFFICE

Robin McAlpine House 20B Park Lane Newmarket Suffolk CB8 8QD

BANKERS

Barclays Bank PLC High Street Newmarket Suffolk CB8 8NH

SOLICITORS

Taylor Vinters Merlin Place Milton Road Cambridge CB4 0DP

INVESTMENT MANAGER

Troy Asset Management Limited Brookfield House 44 Davies Street London W1K 5JA

AUDITORS

RSM UK Audit LLP Abbostgate House Hollow Road Bury St Edmunds IP32 7FA

1

THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Rous Charity was formed on 24 September 1997 by a Charity Commissioners' Scheme, which combined the operations of the Rous Memorial Fund and the Rous Memorial and Almshouse Charity.

The sole Trustee is Racing Homes (formerly The Stable Lads Welfare Trust Housing Association Limited) (Charity Commission registration number 1122961), its trustees act as trustees of the charity. Full details of Racing Homes trustee recruitment policy can be found in its financial statements.

Governance

The Charity is registered under the Charities Act 2011 (Charity Commission registration number 1068581). Racing Homes is itself a subsidiary undertaking of Racing Welfare (Charity Commission registration number 1084042). Day-to-day management of the Rous Charity is delegated to Racing Homes Head of Housing, overseen by the Chief Executive.

The Jockey Club is the charity's ultimate controlling party by virtue of being Racing Welfare's sole member, and provides HR, IT and capital projects support to the Racing Welfare Group.

Recruitment and appointment of trustees

The sole trustee of the charity is Racing Homes, whose own trustees act as trustees of the charity. A full description of Racing Homes recruitment process can be found in its financial statements.

Principal Risks and Uncertainties

The principal risks identified by the trustee together with the actions taken to mitigate these risks are set out below:

----- Start of picture text -----
Risk description Risk mitigation
Stock Market volatility: The Finance, Investment and Audit Committee has
responsibility for maintaining an investment portfolio that
Market volatility may impact upon both is robust to external changes in the economy, with
levels of investment income generated professional advice sought. Consequently the investment
and the real value of the funds held. portfolio is closely aligned to the conservative investment
policy.
Failure to comply with GDPR: The Charity has ensured all policies and procedures are
updated regularly to comply with GDPR. IT security is
maintained by The Jockey Club's skilled IT professionals
Failure to comply may result in a data
with all sensitive data stored and transmitted securely. All
breach causing reputational damage and
staff undertake comprehensive training on an annual
financial losses to the Charity.
basis with new staff undertaking this as part of their
induction.
----- End of picture text -----

2

THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Principal Risks and Uncertainties (continued)

----- Start of picture text -----
Risk description Risk mitigation
Breach of Health and Safety The Charity sits within the Jockey Club's Health and
Regulations: Safety Management System. The Head of Housing holds
H&S qualifications and all staff undertake comprehensive
training on an annual basis with new staff undertaking
A breach of H&S regulation may result in this as part of their induction. Key staff are given
injury to tenants, beneficiaries or staff or responsibility for identifying and reporting H&S issues.
damage to property resulting in financial Regular Fire alarm testing is carried out at all properties
losses and reputational damage. and all equipment PAT tested. The introduction of a new
housing management system in 2020 has aided
compliance monitoring.
COVID-19: The eight units of Rous Cottages are let to retirees,
whose income is anticipated to be largely unaffected.
Racing Welfare's Welfare Officers are available to assist
The financial impact of COVID-19 may
other tenants with applications for benefits and grants
increase arrears and bad debts, as well
should they fall into financial difficulties. The Housing
as causing practical difficulties in carrying
Team work closely with residents to ensure social
out essential maintenance.
distancing is adhered to whilst essential repairs are
carried out.
----- End of picture text -----

The Trustee has introduced a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence and identifying means of mitigating the risks. The risk register is regularly reviewed by Racing Welfare Senior Management and annually by Racing Welfare Trustees.

OBJECTS AND ACTIVITIES

The Charity exists to provide almshouses for the benefit of needy or aged persons employed or formerly employed or otherwise engaged in or in connection with the horse racing and thoroughbred industry or their dependants. The Trustee confirms that it has had regard to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

CHARITY GOVERNANCE CODE

The Charity, in line with Racing Welfare, has fully adopted the Charity Governance code and is actively working on all seven pillars. Full details can be found in the consolidated financial statements.

ACHIEVEMENTS AND PERFORMANCE

The Charity continued to provide housing to its beneficiaries in 2020. The Charity owns eight bungalows at Rous Court, Newmarket, and five modern bungalows in Hamilton Road, Newmarket leased from The Jockey Club. These properties are managed by Racing Homes and provide housing and facilities at an affordable rent for pensioners from the horseracing industry.

3

THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

In 2020, the Charity received income of £66,803 (2019: £73,181) and expended some £52,121 (2019: £63,650). The decrease in expenditure was due to extensive asbestos removal works on Hamilton Road in 2019. The Charity made fair value losses on investments of £49,912 (2019: £58,636 fair value gains) and has maintained a sound financial position with unrestricted funds at 31 December 2020 of £535,619 (2019: £550,125).

Reserves policy

The Trustee has reviewed the reserves of the Charity. This review encompassed the requirement to meet fixed commitments and the likelihood of receiving voluntary donations. The Charity aims to maintain general reserves equivalent to at least 6 months forward expenditure, estimated at £20,000. At 31 December 2020 general reserves were £414,485 (2019: £378,485). The trustee is of the opinion that these funds are sufficient to sustain the Charity’s ongoing activities. Excess reserves will be kept under review by the trustee whilst assessing opportunities as they arise.

The trustee maintained a designated extraordinary repairs fund to provide for any unexpected repairs and improvements. At 31 December 2020, the value of extraordinary repair fund was £40,000 (2019: £40,000).

Under the terms of the 1997 Charity Commissioner's scheme, the land and buildings formerly belonging to the Rous Memorial and Almshouses chairty should be held in the Rous Charity on the same terms as it was in the Rous Memorial and Almshouses charity. The properties have been classified as permanent endowments with the fund value representing the net book value of the land and buildings (2020: £869,548; 2019: £890,272).

Free reserves at 31 December 2020 were £112,436 (2019: £77,030), calculated as total unrestricted funds excluding those invested in shares and securities.

Investment policy

Historically the Charity's investment portfolio has been represented by a single investments in a common funds, the Trojan Income Fund ('S' Income). During the year the investment was split with a proportion now investeed in the Trojan Fund ('S' Income). The aim of the investment policy is to provide a balance between income and capital growth, measured on a total returns basis.

PLANS FOR FUTURE PERIODS

On 7 December 2020 the Trustee passed a resolution to transfer the assets of the Charity to Racing Homes, subject to approval from the Charity Commission for which an application was submitted to the in February 2021. The move is part of a wider restructure of the Racing Welfare group that will bring the benefit of improved services offered to beneficiaries through greater integration of services and reduction of associated costs allied with ensuring greater efficiencies in terms of both staff time, administration and management costs.

4

THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEE’S RESPONSIBILITIES

The Trustee is responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing the financial statements the Trustee is required to:

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 1993, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. It is 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.

AUDITORS

RSM UK Audit LLP were appointed as auditors during the year and have expressed their willingness to continue in office. A resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.

The trustees report was approved on …............................. and signed on its behalf: 1st June 2021

Simon Hope (Chairman of Racing Homes)

5

THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of The Rous Charity (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter – Non-going concern basis of accounting

We draw attention to note 1 of the financial statements which describes the preparation of the financial statements on a basis other than going concern. As described in note 1, on 7 December 2020 the trustees passed a resolution to transfer the operations, assets and liabilities of the Charity to Racing Homes and have therefore concluded that it is no longer appropriate to prepare the financial statements on a going concern basis. There have been no adjustments made to the financial statements as a result of the application of the non-going concern basis of accounting. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

IOur responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

6

THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

7

THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, the parent charity’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The audit engagement team identified the risk of management override of controls and as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business, and challenging any judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLp Statutory Auditor Chartered Accountants Abbotsgate House Hollow Road Bury St Edmunds Suffolk IP32 7FA

Date 30 June 2021

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

8

THE ROUS CHARITY STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
Note Unrestricted Endowment Total Total
funds funds 2020 2019
£ £ £ £
(note 15)
INCOME FROM:
Investments 2 7,898 - 7,898 15,938
Charitable activities 58,905 - 58,905 57,243
TOTAL INCOME 66,803 - 66,803 73,181
EXPENDITURE ON:
Charitable activities 31,397 20,724 52,121 63,650
TOTAL EXPENDITURE 3 31,397 20,724 52,121 63,650
NET INCOME/(EXPENDITURE) BEFORE GAINS
AND LOSSES ON INVESTMENTS 35,406 (20,724) 14,682 9,531
Net (losses)/gains on investments 7 (49,912) - (49,912) 58,636
NET INCOME/(EXPENDITURE) FOR THE YEAR
AND NET MOVEMENT IN FUNDS (14,506) (20,724) (35,230) 68,167
Reconciliation of funds:
Balances brought forward 1 January 10 550,125 890,272 1,440,397 1,372,230
Balances carried forward 31 December 10 535,619 869,548 1,405,167 1,440,397
----- End of picture text -----

The notes on pages 11 to 17 form part of these financial statements.

9

THE ROUS CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

----- Start of picture text -----
Note 2020 2019
£ £
FIXED ASSETS
Tangible assets 6 869,548 890,272
Investments 7 383,183 433,095
1,252,731 1,323,367
CURRENT ASSETS
Debtors 8 3,438 95,888
Cash at bank and in hand 153,689 24,213
157,127 120,101
LIABILITIES
Creditors: amounts falling due within one year 9 (4,691) (3,071)
NET CURRENT ASSETS 152,436 117,030
NET ASSETS 1,405,167 1,440,397
THE FUNDS OF THE CHARITY:
Unrestricted funds: 10
General fund 413,891 378,485
Revaluation Reserve 81,728 131,640
Designated funds 40,000 40,000
535,619 550,125
Endowment funds 869,548 890,272
TOTAL CHARITY FUNDS 11 1,405,167 1,440,397
----- End of picture text -----

The financial statements on pages 9 to 17 of The Rous Charity were approved by the Trustee and authorised for issue on ….................................... and signed on its behalf by: 1st June 2021

Simon Hope Chairman of Racing Homes

The notes on pages 11 to 17 form part of these financial statements.

10

THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and 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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Charity has taken advantage of the exemption from disclosing the following information, as permitted by the reduced disclosure regime within FRS 102:-

The financial statements of the Charity are consolidated in the financial statements of Racing Welfare. The consolidated financial statements of Racing Welfare are available from its registered office, whose address is the same as the Charity’s.

Going concern

On 7 December 2020 the Trustee passed a resolution approving transfer the assets of the charity to Racing Homes subject to the necessary consents from the Charity Commission following the application made in February 2021. Should the Charity Commission approve the application the Trustee intends to deregister the charity therefore the financial statements are prepared on the basis that the charity is no longer a going concern. No adjustments arose as a result of ceasing to apply the going concern basis.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Creditors

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Income recognition

Income from charitable activities represents rents and service charges receivable. All rental and service charge income is from social housing lettings. Investment income is included in the accounts when due. Investment gains and losses include any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

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.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustee for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

The endowment funds were established when the Rous Memorial and Almshouses charity and the Rous Memorial Fund were combined to for the Rous Charity and represents the net book value of the properties.

11

THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

Freehold and long leasehold almshouses

Depreciation is provided in equal annual instalments over the term of the lease or estimated lives of the assets at the rate of 2% per annum.

Freehold and leasehold improvements

Depreciation is provided on fixtures and fittings at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:

Fixtures and fittings

range from 10 years to 20 years

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the reporting date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value (purchase date if later). Realised and unrealised gains and losses are combined in the Statement of Financial Activities.

Judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for income and expenditure during the period. However, the nature of the estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements:

Tangible fixed assets:

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal value.

2. INVESTMENT INCOME
Interest receivable
Dividends receivable from investments and unit trusts
3. CHARITABLE ACTIVITIES
Activities
undertaken
Support
directly
costs
£
£
Housing
45,885
6,236
45,885
6,236
Support Cost Allocation
4,000
2,236		 2020
£
16
7,882
7,898
Total
2020
£
52,121
52,121
6,236		 2019
£
91
15,847
15,938
Total
2019
£
63,650
63,650
6,446

The Charity does not employ staff directly. Staff are employed by Racing Homes, the charity’s corporate trustee. Direct housing staff costs are apportioned to the Charity on the basis of hours worked. In 2020, the cost of housing staff time allocated to the Charity was £13,957 (2019: £11,956).

12

THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. TRUSTEE'S REMUNERATION

No remuneration or out of pocket expenses were received by the trustee during the year (2019: £nil).

All staff are employed by Racing Homes and Racing Welfare, with costs allocated to the charity on the basis of the proportion of units owned. Therefore no employee or key management personnel remuneration was directly incurred.

5. GOVERNANCE

The auditors' remuneration constituted audit fees of £1,545 (2019: £1,500) and other non-audit fees of £nil (2019: £nil).

6. TANGIBLE FIXED ASSETS

Cost and deemed cost
At 1 January 2020
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Long
Freehold
leasehold
Freehold
Leasehold
almshouses
almshouses
improvements Improvements
£
£
£
£
546,000
330,000
103,564
11,044
546,000
330,000
103,564
11,044
43,680
39,600
14,124
2,932
7,280
6,600
5,582
1,262
50,960
46,200
19,706
4,194
495,040
283,800
83,858
6,850
502,320
290,400
89,440
8,112		 Totals
a
£
990,608
990,608
100,336
20,724
121,060
869,548
890,272

Freehold almshouses includes freehold land of £182,000 that is not depreciated.

7. FIXED ASSET INVESTMENT
Listed investments:
Market Value at 1 January
Additions
Disposals
Net investment (losses) / gains
Market value at 31 December
Historical cost at 31 December
Listed investments are represented by:
Investment trusts and unit trusts		 2020
£
433,095
152,864
(152,864)
(49,912)
383,183
317,455
383,183
383,183		 2019
£
374,459
-
-
58,636
433,095
301,455
433,095
433,095

13

THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
8. DEBTORS 2020 2019
£ £
Due from Racing Homes - 88,362
Prepayments and accrued income 3,253 7,526
Other debtors 185 -
3,438 95,888
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2019
£ £
Owed to Racing Homes 2,039 -
Accruals and deferred income 2,652 3,071
4,691 3,071
10. STATEMENT OF FUNDS
At 1 At 31
January Investments December
2020 Income Expenditure Gains Transfers 2020
£ £ £ £ £ £
Unrestricted funds
General reserve 378,485 66,803 (31,397) - - 413,891
Revaluation Reserve 131,640 - - (49,912) - 81,728
Designated funds
Extraordinary Repair Fund 40,000 - - - - 40,000
Total unrestricted funds 550,125 66,803 (31,397) (49,912) - 535,619
Endowment funds 890,272 - (20,724) - - 869,548
1,440,397 66,803 (52,121) (49,912) - 1,405,167
At 1 At 31
January Investments December
2019 Income Expenditure Gains Transfers 2019
£ £ £ £ £ £
Unrestricted funds
General reserve 348,230 73,181 (42,926) - - 378,485
Revaluation Reserve 73,004 - - 58,636 - 131,640
Designated funds
Extraordinary Repair Fund 40,000 - - - - 40,000
Total unrestricted funds 461,234 73,181 (42,926) 58,636 - 550,125
Endowment funds 910,996 - (20,724) - - 890,272
Total unrestricted funds 1,372,230 73,181 (63,650) 58,636 - 1,440,397
----- End of picture text -----

14

THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. STATEMENT OF FUNDS (continued)

The general reserve represents the free funds of the Charity which are not designated for particular purposes, and are available to be spent for any of the purposes of the Charity.

The revaluation reserve represents the net accumulated fair value gains on investments which would only be available for use if the investments were sold.

The extraordinary repair funds sets aside funds for unexpected maintenance costs.

The endowment funds were established when the Rous Memorial and Almshouses and the Rous Memorial Fund were combined to form the Rous Charity and represents the net book value of the properties.

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

As at 31 December 2020
Tangible fixed assets
Investments
Current assets
Current liabilities
As at 31 December 2019
Tangible fixed assets
Investments
Current assets
Current liabilities		 £
40,000
1,405,167
495,619
(4,691)
383,183
383,183
117,127
157,127
£
-
-
869,548
£
40,000
510,125
1,440,397
40,000
80,101
120,101
-
(3,071)
(3,071)
-
890,272
-
433,095
433,095
-
Total
Designated
2019
£
£
Unrestricted
£
Total
Unrestricted
2020
Designated
Endowment
£
869,548
-
-
-
-
-
(4,691)
40,000
-
-
-
890,272
869,548
Endowment
£
890,272

12. CONNECTED CHARITIES

The Rous Charity has its trustee and administration in common with the following charities:

The following amounts were due (to)/from connected charities as at 31 December 2020:

Racing Homes 2020
£
(2,039)		 2019
£
88,362

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THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. CONNECTED CHARITIES (continued)

Racing Homes manages the properties on behalf of The Rous Charity. During the year Racing Homes collected rents amounting to £58,905 (2019: £57,243) on behalf of the charity and paid shared costs attributable to the charity of £22,868 (2019: £22,847), including staff costs of £13,957 (2019: £11,956). During the year the charity received £122,561 from Racing Homes in settlement of the inter-charity loan account.

During the year £4k (2019: £5k) in respect of management and administration overheads were allocated to the Charity by Racing Homes.

Parent Company

Racing Homes (formerly The Stable Lads Welfare Trust Housing Association Limited), Charity Number 1122961, Company Registration 06489067 whose address is the same as the Rous Charity and whose charitable objects and activities are the provision of affordable housing to those in need. The parent company exercises control through its corporate trusteeship and its accounts can be obtained from Racing Welfare.

Ultimate Parent Company

Racing Welfare, Charity Number 1084042, Company registration Number 04116279, whose address is the same as the Rous Charity and whose charitable objectives are the relief of poverty, sickness, injury and the advancement of education to those employed or formally employed in the racing industry.

The Ultimate Parent exercises control through its corporate trusteeship; its accounts can be obtained from Racing Welfare, 20b Park Lane, Newmarket Suffolk, CB8 8QD.

Ultimate Controlling Party

The Ultimate Controlling Party is The Jockey Club, Company Registration Number RC000287, governed by Royal Charter, whose address is 75 High Holborn, London, WC1V 6LS by virtue of being the sole member of Racing Welfare.

13. POST BALANCE SHEET EVENTS

Following the year end an application was submitted to the Charity Commssion on behalf of the Trustee seeking apporval to merger The Rous Charity with Racing Homes. The Trustee passed a resolution on 7 December 2020 approving the process.

14. FINANCIAL INSTRUMENTS

Equity instruments measured at fair value 2020
£
383,183		 2019
£
433,095

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THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15. STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR THE YEAR ENDED 31 DECEMBER 2019

INCOME FROM:
Investments
Charitable activities
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE GAINS
AND LOSSES ON INVESTMENTS
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE) FOR THE YEAR
Transfers between funds
AND NET MOVEMENT IN FUNDS
Reconciliation of funds:
Balances brought forward 1 January
Balances carried forward 31 December		 Unrestricted
funds
£
15,938
57,243
73,181
42,926
42,926
30,255
58,636
88,891
-
88,891
461,234
550,125		 Endowment
funds
£
-
-
-
20,724
20,724
(20,724)
-
(20,724)
-
(20,724)
910,996
890,272		 Total
2019
£
15,938
57,243
73,181
63,650
63,650
9,531
58,636
68,167
-
68,167
1,372,230
1,440,397

17