2023-04-05-accounts - The Arnold Burton 1998 Charitable Trust

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The Arnold Burton 1998 Charitable Trust

Annual Report and Financial Statements for the year ended 5 April 2023

Charity Commission Reference Number 1074633

Castlegarth Scott Lane Wetherby LS22 6LH

The Arnold Burton 1998 Charitable Trust

Year ended 5 April 2023

Contents
Trustees’ Report	2 to 4
Independent Examiner’s Report	5
Statement of Financial Activities	6
Balance Sheet	7
Notes to the Financial Statements	8 to 11

The Arnold Burton 1998 Charitable Trust

Trustees’ Report for the year ended 5 April 2023

Legal and administrative information

Charity number: 1074633 Trustees: Jeremy John Burton Nicholas Anthony Burton Mark Timothy Burton Independent Examiner: Martin Knaggs Accountants: Armstrong Watson LLP Third Floor 10 South Parade Leeds LS1 5QS Bankers: Bank of Scotland plc 33 Old Broad Street London BX2 1LB Investment manager: Rathbones Ltd 1 Curzon Street London WIJ 5FB Principal address and trust managers: Castlegarth Scott Lane Wetherby LS22 6LH Solicitors: Wrigleys LLP 3 Wellington Place Leeds LS1 4AP

The trustees present their report together with the financial statements of the charity for the year ended 5 April 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011, the Charities (Accounting and Reports) Regulations 2008 and the Statement of Recommended Practice "Accounting and Reporting by Charities" (Charities SORP (FRS102)).

History and constitution

The trust was created by the Settlor, Mr A J Burton, by the execution of a Trust Deed dated 17 December 1998 and was granted charitable status by the Charity Commission on 11 March 1999.

Structure, governance and management

The trust is managed by the trustees and policy decisions are determined by consensus. The capital fund is invested in a portfolio of equity based quoted investments. Investments are managed by the investment manager on a discretionary basis with the objective of obtaining an acceptable level of income with a reasonable prospect of medium-term capital growth.

Appropriate policies are determined to achieve a balanced investment strategy taking account of the investment risks to which the portfolio is exposed.

The Arnold Burton 1998 Charitable Trust

Trustees’ Report (continued) for the year ended 5 April 2023

Structure, governance and management (continued)

Trustees are appointed based on recommendations from the family of the settlor and current trustees. The induction process for newly appointed trustees comprises of a series of meetings with the trustees.

Risk management

The charity trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. The trustees hold regular meetings to consider the performance of the investment portfolio and the recommendations of the investment managers.

Main objectives and activities

The objective of the trust is to apply the whole of the trust fund in furtherance of charitable purposes, charitable institutions or charitable foundations in a manner determined by and at the discretion of the trustees.

Although donations are made at the discretion of the trustees, special consideration will be given to registered institutions relating to Jewish charities, medical research, education, social welfare and heritage. Donations to individuals will not be considered. Appeals should be in writing only to trust managers. Unsuccessful appeals will not necessarily be acknowledged. The trustees meet as necessary to consider appeals received and to determine charitable donations.

Public benefit statement

The trustees of the Arnold Burton 1998 Charitable Trust confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit.

Reserves policy

Reserves at 5 April 2023 amounted to £5,227,095 and are held for the generation of income for the furtherance of the charity’s objectives.

The trustees aim to maintain the existing investment portfolio at current levels and to make charitable donations in line with their income each year.

Financial activities and affairs

Total income for the year under review amounted to £188,237 (2022: £163,698) whilst total expenditure amounted to £223,049 (2022: £197,712). Expenditure on grants and donations was £191,150 (2022: £163,500).

During 2021, a provision was raised against a loan of £105,000 made to Donisthorpe Hall, which had entered administration. The loan was recovered in full during the year ended 5 April 2022 and the provision was released. The loan provision release is shown in the comparative information on the Statement of Financial Activities.

Losses realised on the sale of investments amounted to £75,582 (2022: £52,354 gain) and unrealised losses attributable to the change in the market value of investments amounted to £514,187 (2022: £335,822 gain).

Net expenditure for the year was £34,812 (2022: net income £70,986).

The overall net decrease in funds for the year is £624,581 (2022: £459,162 increase) resulting in funds of £5,227,095 to carry forward at 5 April 2023.

During the year under review the charity purchased investments costing £697,698 and received proceeds of £761,820 from the sale of investments.

The Arnold Burton 1998 Charitable Trust

Trustees’ Report (continued) for the year ended 5 April 2023

Financial activities and affairs (continued)

The market value of the charity's investments at 5 April 2023 amounted to £4,967,138 (2022: £5,621,029). After taking into account the net realisations during the year this represents a decrease of 9.4%, in line with general market performance.

Plans for the future

The Arnold Burton 1998 Charitable Trust looks to further its charitable objectives as set out above under “Main objectives and activities” as opportunities and needs arise.

Trustees' responsibility for the financial statements

The trustees are responsible for preparing the trustees’ 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 trustees to prepare financial statements for each financial 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 these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;
make judgements and estimates that are reasonable and prudent;
value assets and liabilities in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" (Charities SORP (FRS102));
state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements;
prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records which are sufficient to:

show and explain the charity's transactions;
disclose with reasonable accuracy at any time the financial position of the charity;
enable them to ensure that any financial statements comply with the requirements of the Charities (Accounting and Reports) regulations 2008.

The trustees are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Compliance and statutory requirements

The Trustees’ Report has been prepared in accordance with the provisions of the Charities (Accounts and Reports) Regulations 2008 and the Statement of Recommended Practice "Accounting and Reporting by Charities" (Charities SORP (FRS102)).

Trustees’ Approval

The Trustees' Report was approved by the trustees and signed on their behalf by

Jeremy Burton Trustee

Date: 3 July 2023

The Arnold Burton 1998 Charitable Trust

Independent Examiner’s Report to the Trustees for the year ended 5 April 2023

Charity Commission Reference Number 1074633

I report to the trustees on my examination of the financial statements of the Arnold Burton 1998 Charitable Trust on pages 6 to 11.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed.

It is my responsibility to:

examine the accounts under section 145 of the Charities Act.
to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act); and
to state whether particular matters have come to my attention

Basis of independent examiner’s statement

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did 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 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.

Martin Knaggs Chartered Certified Accountant Armstrong Watson LLP Third Floor 10 South Parade Leeds LS1 5QS

Date: 3 July 2023

The Arnold Burton 1998 Charitable Trust

Statement of Financial Activities for the year ended 5 April 2023

Note Income Income from investments 3 Deposit interest Total income Expenditure Charitable donations 7 Costs of generating funds Administrative expenditure Accountancy Independent examination Investment management Loan provision Total expenditure Net income/(expenditure) Other recognised gains and losses Gains on charitable investment assets Realised gains on disposals Unrealised gains on revaluation Total other recognised gains Net movement in funds Reconciliation of funds Funds brought forward Funds carried forward	Capital Income 2023 2023 £ £ - 187,517 - 720 - 188,237 - 191,150 1,105 1,105 1,105 1,105 27,479 - - - 29,689 193,360 (29,689) (5,123) (75,582) - (514,187) - (589,769) - (619,458) (5,123) 5,662,929 188,747 5,043,471 183,624 Unrestricted funds	Total 2023 £ 187,517 720 188,237 191,150 2,210 2,210 27,479 - 223,049 (34,812) (75,582) (514,187) (589,769) (624,581) 5,851,676 5,227,095	Total 2022 £ 163,698 -
			163,698
			163,500 2,010 2,010 30,192 (105,000)
			92,712
			70,986
			52,354 335,822
			388,176

			459,162
			5,392,514
			5,851,676

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been presented.

See note 6 on page 10 for the note of historical cost income and expenditure.

The notes on pages 8 to 11 form part of these financial statements.

The Arnold Burton 1998 Charitable Trust

Balance Sheet as at 5 April 2023

Note Charitable fixed assets Investments 4 Current assets Cash in bank Cash held by investment adviser Creditors: Amounts falling due within one year 5 Net current assets Total assets less current liabilities Funds 9	Capital Income fund fund 2023 2023 £ £ 4,967,138 - 30,264 177,121 55,089 8,713 85,353 185,834 (9,020) (2,210) 76,333 183,624 5,043,471 183,624 5,043,471 183,624 Unrestricted funds	Total 2023 £ 4,967,138 207,385 63,802 271,187 (11,230) 259,957 5,227,095 5,227,095	Total 2022 £ 5,621,029
			226,587 15,705
			242,292 (11,645)
			230,647
			5,851,676
			5,851,676

The notes on pages 8 to 11 form part of these financial statements.

The financial statements were approved by the trustees and signed on their behalf by:

Jeremy Burton Trustee

Date: 3 July 2023

The Arnold Burton 1998 Charitable Trust

Notes to the financial statements for the year ended 5 April 2023

1. Accounting policies

Charity information

The Arnold Burton 1998 Charitable Trust is a charity which is registered with the Charity Commission for England and Wales under the registered number 1074633. The principal address is Castlegarth, Scott Lane, Wetherby, LS22 6LH.

1.1 Basis of accounting

The financial statements are prepared in accordance with FRS102 and The Charities SORP (FRS102) and are in compliance with the Charities (Accounts and Reports) Regulations 2008 issued under the Charities Act 2011. The financial statements are prepared under the historical cost convention, modified to include investments at fair value. 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 £.

1.2 Going concern

There are no material uncertainties about the charity’s ability to continue as a going concern for period of at least 12 months from the date of approval of the accounts. The charity has adequate reserves to meet its liabilities as they fall due.

1.3 Income

Donations are accounted for when the charity becomes unconditionally entitled to the income. Investment income is stated net of unrecoverable foreign tax and is accounted for as and when received by the charity. All other income is accounted for in the financial statements on an accruals basis.

1.4 Direct charitable expenditure

Direct charitable expenditure is included in the financial statements as and when paid by the charity.

1.5 Other expenditure

Other expenditure is included in the financial statements on an accruals basis.

1.6 Taxation

The charity is exempt from income and capital gains tax to the extent that income and gains are applied for charitable purposes. The charity is able to recover UK income tax deducted at source from investment income. The charity is unable to recover value added tax on its expenditure and accordingly expenses are shown gross of value added tax.

1.7 Investments

Investments are stated in the balance sheet at their open market value. Both realised and unrealised gains and losses on investments are included in other recognised gains and losses on the Statement of Financial Activities. Realised gains and losses on investments are calculated as the difference between disposal proceeds and carrying value at the date of disposal. Carrying value is the sum of market value brought forward at the beginning of the accounting period and the cost of subsequent acquisitions.

2. Trustees' remuneration

None of the trustees receive any remuneration for their work as a trustee.

The Arnold Burton 1998 Charitable Trust

Notes to the financial statements (continued) for the year ended 5 April 2023

3. Income from investments

Investment income arose from the following sources:

2023 £ 65,449 32,691 3,326 11,584 62,858 11,609	2022 £ 64,928 30,396 2,695 13,729 36,320 15,630 163,968 2022 £ 5,217,415 1,091,729 (1,023,937) 335,822	2022 £ 64,928 30,396 2,695 13,729 36,320 15,630
187,517		163,968
	5,621,029
	4,108,844

All investments are listed on a recognised stock exchange and are held within the following categories:

United Kingdom based organisations: Companies Collectives Fixed interest securities Overseas based organisations: Companies Collectives	2023 £ 1,056,103 1,818,166 309,206 3,183,475 1,631,463 152,200 1,783,663 4,967,138	2022 £ 1,236,629 1,938,395 352,730
		3,527,754 1,733,680 359,595
		2,093,275
		5,621,029

Investments are held in nominee accounts on behalf of the trustees but in all other respects are considered to be directly held investments.

The Arnold Burton 1998 Charitable Trust

Notes to the financial statements (continued) for the year ended 5 April 2023

5. Creditors Accountancy and examination fees Investment management fees 6. Note of historical cost income and expenditure Net income/(expenditure) for the year Realised gains on investments calculated using cost Historical cost income and expenditure Difference between the historical cost gain arising from the realisation of investments and the actual gain calculated using carrying values Unrealised gain on revaluation of investments Movement in funds on Statement of Financial Activities		2023 £ 4,420 6,810 11,230 2023 £ (34,812) 195,963 161,151 (271,545) (514,187) (624,581)	2022 £ 4,020 7,625 11,645 2022 £ 70,986 308,353
			379,339 (255,999) 335,822
			459,162

7. Charitable donations

During the year ended 5 April 2023 aggregate grants made to charitable institutions amounted to £191,150 (2022: £163,500) which were allocated to the following sectors:

Arts and amenities Education Health Heritage Social and welfare International Total for the year	2023 No. Grants 9 - 2 1 6 2 20	2022 No. Grants 5 - 2 1 6 3 17	2023 £ 93,000 - 7,500 10,000 60,650 20,000 191,150	2022 £ 50,000 - 10,000 5,000 68,500 30,000
				163,500

The Arnold Burton 1998 Charitable Trust

Notes to the financial statements (continued) for the year ended 5 April 2023

7. Charitable donations (continued)

Recipients of the donations analysed by sector are shown below.

Art And Amenities Garsington Opera Gladrags Community Costume Resource Northern Ballet Opera North Yorkshire Sculpture Park The Hepworth Wakefield (2 grants) Airedale Symphony Wetherby Council (bandstand bench) Health Antibiotic Research UK Action Medical Res Heritage Yorkshire Air Museum Social/Welfare Citizens Advice West Oxfordshire Leeds Community Foundation Merchant Taylors (2 Grants) The Conservation Volunteers The Sea Change Trust Third World and Overseas Hands Up Foundation	£ 50,000 15,000 5,000 5,000 5,000 10,000 2,000 1,000	£ 93,000 7,500 10,000 60,650 20,000
	5,000 2,500
	10,000
	15,000 35,000 1,150 2,500 7,000
	20,000

		191,150

8. Related Parties

There were no transactions with related parties during the year.

9. Funds

The capital fund comprises investment assets held for the generation of income. The income fund comprises assets to fund charitable donations.

The trustees are free to use both the income and capital funds accordance with the objects of the charity.