Registered number: 03868725 Charity number: 1078667
BELVEDERE TRUST
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
BELVEDERE TRUST
(A company limited by guarantee)
| Contents | |
|---|---|
| Page | |
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditor's report on the financial statements | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 - 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 - 28 |
(A company limited by guarantee)
BELVEDERE TRUST
Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2023
| Trustees | J D Cracknell |
|---|---|
| P A Klaber | |
| L Hene | |
| Viscount Mackintosh of Halifax | |
| J B K Roditi | |
| A R Gabriele | |
| S V R Langridge | |
| Company registered number 03868725 Charity registered number 1078667 Registered office 2nd Floor 2 Back Lane London NW3 1HL Company secretary J D Cracknell Independent auditor Sayers Butterworth LLP Chartered Accountants & Statutory Auditor 3rd Floor 12 Gough Square London EC4A 3DW Bankers Royal Bank of Scotland 62/63 Threadneedle Street PO Box 412 London EC2R 8LA Cayman National Bank Ltd 200 Elgin Avenue KY1-1102 Grand Cayman Cayman Islands Investment managers Evelyn Partners 45 Gresham Street London EC2V 7BG |
Page 1
BELVEDERE TRUST
(A company limited by guarantee)
Trustees' report for the year ended 31 March 2023
The Trustees present their annual report together with the audited financial statements for the year 1 April 2022 to 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity's governing document. The financial statements also comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association 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).
Since the Charity qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
OBJECTIVES AND ACTIVITIES
The Trust was set up to apply funds of the company towards, or in furtherance, or in advancement, or for the benefit of such one or more charities, charitable institutions or charitable purposes as the Trustees shall in their absolute discretion select and to undertake any other charitable purpose. There has been no change in these objectives during the year. During the year the Trustees have considered and made grants to the organisations as detailed in note 7.
The Trustees have given due regard to the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011.
PLANS FOR THE FUTURE
The commercial property development owned by the Trust’s subsidiary The Box Office New Inn Broadway (“TBONIB”) has been completed and Heads of Terms have been sent to two potential tenants to sign to occupy all of the commercail floors. It is intended that any net surplus earned on letting will be applied to the making of charitable grants.
The ground floor Public Exhibition Space to be used for charitable purposes has been let out to a third party on a commercial basis.
The enhancement of the Public Realm within the vicinity of the development has now been completed. The Trust has worked closely with the London Borough of Hackney to achieve this enhancement.
The Trust retains an investment portfolio, and aims to donate the income to charitable causes. The Trust also owns shares in Ocado Group PLC that were donated to it. There is a 10 year restriction on the Trust’s ability to realise the shares but there is no restriction as to the charitable purpose of the proceeds when the Ocado Group PLC shares are realised. Any dividends received from Ocado Group PLC in the interim will be applied to charitable causes. Having considered the nature of the donation the Trustees have classified this donation as part of the Expendable Endowment Fund.
The Trustees will also continue to research and identify eligible grant applicants to whom to apply the charity’s funds in order to achieve its objects for the public benefit.
Page 2
(A company limited by guarantee)
BELVEDERE TRUST
Trustees' report (continued) for the year ended 31 March 2023
GOING CONCERN
After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
RESERVES POLICY
It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should normally be maintained at a level equivalent to between three and six month's expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust's current activities while consideration is given to ways in which additional funds may be raised.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trust is a registered charity, number 1078667, and was established by Declaration of Trust dated 22nd October 1999. The Trust is a company limited by guarantee and its governing document is its Memorandum and Articles of Association. The Trust was incorporated on 26th October 1999.
The organisation’s affairs are conducted by the Trustees who meet throughout the year and who have the power to appoint new Trustees at their discretion. The charity does not have a formal programme for the induction and training of new Trustees. The Trustees are required to be re-elected at every third annual general meeting in accordance with the Trust's governing document.
The Trust is UK based with its headquarters in London. A board of Trustees administers the Trust. The day to day management of the charity has been delegated to J D Cracknell, who is also a Trustee.
None of the Trustees has any beneficial interest in the charity.
The directors of the charitable company (the Charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as Trustees. The Trustees' report is a directors' report as required by s417 of the Companies Act 2006 and as such all of the Trustees are the directors of Belvedere Trust for the purposes of company law.
All Trustees are also members of the Belvedere Trust. Each member, in accordance with paragraph 9 of the Memorandum and Articles of Association, has undertaken to contribute such amount as may be required (not exceeding £1) to the charity’s assets if it should be wound up while he/she is a member or within one year after he/she ceased to be a member, for payment of the charity’s debts and liabilities contracted before he/she ceased to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.
The charity had one wholly owned subsidiary in the year, The Box Office New Inn Broadway Limited, a Company registered in England and Wales.
INVESTMENT POLICY
Grants received and not expected to be spent in the short term are invested on the money market or placed as fixed deposits.
Unlisted investments comprise the entire share capital of the charity's subsidiary, The Box Office New Inn Broadway Limited.
Page 3
BELVEDERE TRUST (A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2023
Listed investments comprise a portfolio of securities, managed by Evelyn Partners. The Trust also has a holding in Ocado plc. These Ocado shares were gifted to the Trust on condition that the shares should not be realised within a period of 10 years from the date of the gift. The Trustees have designated the entire holding of Ocado shares to an Expendable Endowment Fund.
GRANT MAKING POLICY
The charity has established its grant making policy to achieve its objects for the public benefit to apply funds of the charity towards those charitable activities which the Trustees consider in line with the charity's objectives. Applications for grants received by the charity are considered by the Trustees and discussed at Trustees' meetings held on a quarterly basis.
REFERENCE AND ADMINISTRATIVE DETAILS
Reference and administrative details are shown in the schedule of legal and administrative information on page 1 of the financial statements.
THE TRUSTEES
The Trustees who served the charity during the year were as follows:
J D Cracknell P A Klaber L Hene Viscount Mackintosh of Halifax J B K Roditi A R Gabriele S V R Langridge
MAJOR RISKS
The Trustees have assessed the major risks to which the Trust is exposed, and the following major risks and arrangements to avoid or mitigate those risks were identified.
Funding risk – the Trust is funded by way of receiving donations and income from investments. The development being completed by TBONIB has required a significant level of funding and its progress and costs have been closely monitored by the Trustees to ensure that sufficient funding will be in place.
The Trust is currently exposed to risk arising from the vacant commercial floors at the Box Office however at present Heads of Agreement have been issued to two potential tenants which would occupy all of the commercial floors.
Grant programmes are designed with sufficient flexibility to accommodate changes and grants are only made following recommendations and research by the Trust’s Charitable Grants Committee.
Investment risk – the Trust maintains its cash funds in low risk bank accounts or on Treasury Deposit. Investment in shares are managed by professional investment managers operating within a pre-designated risk mandate. Meetings are held with the Investment managers on a regular basis.
ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW
Donations received in the year totalled £625,000 (2022: £Nil), of which £Nil (2022: £Nil) was allocated to the expendable endowment fund.
Page 4
BELVEDERE TRUST (A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2023
Investment income for the year was £160,407 (2022: £164,752).
Grants totalling £215,960 (2022: £154,780) were made during the year to the beneficiaries listed in note 7 to the accounts. Support costs amounting to £205 (2022: £691) were incurred. Governance costs amounted to £38,283 (2022: £48,862).
Total funds held by the Trust at the year end were £33,092,313 (2022: £40,972,136), of which £6,687,500 (2022: £14,637,500) related to the Expendable Endowment Fund.
RESPONSIBILITIES OF THE TRUSTEES
The Trustees (who are also directors of Belvedere Trust for the purposes of company law) are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Company and charity law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the charitable company’s auditors are unaware. They have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
PROVISION OF INFORMATION TO AUDITOR
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charitable company's auditor in connection with preparing its report and to establish that the charitable company's auditor is aware of that information.
Page 5
BELVEDERE TRUST {A company Ilmlted by guarantoel Tru8ttts' report l¢ontlnuedl for tho year anded 31 Mah 2023 AUDITOR The audrtor. Sayer8 8Utteprth LLP, has indicated its willingness lo continue in office. The Designated Trustees 11 propose a motion re-aPpn11ng the audrtor at a meeting of the Trustee8. Approved by order of the members of the board of Tru81ees on 20 September 2023 arKI sKJned on thwr behair by: Viscount Mackinto•h of Hallfax Trustee Page 6
(A company limited by guarantee)
BELVEDERE TRUST
Independent auditor's report to the Members of Belvedere Trust
Opinion
We have audited the financial statements of Belvedere Trust (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 7
(A company limited by guarantee)
BELVEDERE TRUST
Independent auditor's report to the Members of Belvedere Trust (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
Page 8
BELVEDERE TRUST
(A company limited by guarantee)
Independent auditor's report to the Members of Belvedere Trust (continued)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions were held with, and enquiries made of management and the Trustees with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcome of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
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Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, GDPR, Company Law and Charity Law.
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Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with the charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Page 9
(A company limited by guarantee)
BELVEDERE TRUST
Independent auditor's report to the Members of Belvedere Trust (continued)
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Hannah Clegg (Senior statutory auditor) Sayers Butterworth LLP
Chartered Accountants & Statutory Auditor
3rd Floor
12 Gough Square
London
EC4A 3DW
20 September 2023
Sayers Butterworth LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
BELVEDERE TRUST
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2023
| Note Income and endowments from: Donations and legacies 4 Investments 5 Total income and endowments Expenditure on: Investment management Charitable activities 6 Total expenditure Net income/(expenditure) before net losses on investments Net unrealised and realised losses on investments 11 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Expendable Endowment funds 2023 £ - - - - - - - (7,950,000) (7,950,000) 14,637,500 (7,950,000) 6,687,500 |
Unrestricted funds 2023 £ 625,000 160,407 785,407 41,022 254,448 295,470 489,937 (419,760) 70,177 26,334,636 70,177 26,404,813 |
Total funds 2023 £ 625,000 160,407 785,407 41,022 254,448 295,470 489,937 (8,369,760) (7,879,823) 40,972,136 (7,879,823) 33,092,313 |
Total funds 2022 £ - 164,752 164,752 59,636 204,333 263,969 (99,217) (10,719,012) (10,818,229) 51,790,365 (10,818,229) 40,972,136 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15 to 28 form part of these financial statements.
Page 11
BELVEDERE TRUST
(A company limited by guarantee) Registered number: 03868725
Balance sheet as at 31 March 2023
| Note Fixed assets Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Total net assets Charity funds Expendable endowment funds 16 Unrestricted funds 16 Total funds |
892,733 554,682 1,447,415 (75,644) |
2023 £ 31,752,542 31,752,542 1,371,771 33,124,313 (32,000) 33,092,313 6,687,500 26,404,813 33,092,313 |
565,737 334,498 900,235 (59,895) |
2022 £ 40,158,796 40,158,796 840,340 40,999,136 (27,000) 40,972,136 14,637,500 26,334,636 40,972,136 |
|---|---|---|---|---|
Page 12
BELVEDERE TRUST IA company Ilmlted by guarantee) Reglstered number: 03868725 Balanco sheet Icontlnuedl as at 31 March 2023 The entty was enlilled to exemption from audit under section 477 of the Companies Act 20l. The members have not required the entty to obtain an audi( for the year in question in accordance wth Section 476 of the Companies Act 2006. However, an audr( is reqUId in accordance with saction 144 of the Charities Act 2011. The Trustees acknowledge their responsibiif(ies for complying wlh the requirements of the Act wrth respect lo accounting records and preparation of financial stslements. The financial ststements have been prepared in &cord8n¢e wfth the provisions appIable to enli(ies subject lo the small companies regime. The financial slalements We approved and aulhorised for issue by the Trustees on 20 September 2023 and signed on their behaw by.. Viscount Macklntosh of Halifax racknall The notes on pages 15 to 28 form part of these financial slatemenls. Page 13
BELVEDERE TRUST
(A company limited by guarantee)
Statement of cash flows for the year ended 31 March 2023
| Cash flows from operating activities Net cash (used in)/provided by operating activities Cash flows from investing activities Dividends and interests from investments Investment in subsidiary Cash held as part of investment portfolio - movement Net purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 15 to 28 form part of these financial statements |
2023 £ 23,283 160,407 - 175,740 (139,246) 196,901 220,184 334,498 554,682 |
2022 £ (813,959) 164,752 (250,000) (134,161) 426,299 206,890 (607,069) 941,567 334,498 |
|---|---|---|
Page 14
BELVEDERE TRUST (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
1. General information
Belvedere Trust is a private limited charitable company, incorporated in the United Kingdom and registered in England and Wales. The registered office address is 2nd Floor, 2 Back Lane, London, NW3 1HL.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Companies Act 2006.
Belvedere Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
After making the necessary enquiries, the trustees have a reasonable expectation that the charity has adequate reserves to continue in existence for the forseeable future. On this basis the charity continues to adopt the going concern basis in preparing its financial statements.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Bank interest is recognised as it is earned and dividends when they are receivable.
Page 15
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Costs of generating funds are costs incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the Charity's educational operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Any grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 16
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Expendable endowment funds are funds which are to be used in accordance with specific restrictions imposed by donors. The costs of administering such funds are charged against the specific fund. The restrictions to each fund is set out in the notes to the financial statements. Once the restriction period passes the funds will be transferred to unrestricted funds.
Investment income generated by the expendable endowment fund is unrestricted funds.
Gains and losses are allocated to the appropriate fund.
Page 17
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
3. Critical accounting estimates and areas of judgment
In the application of the company’s accounting policies, the Trustees are required to make judgments, estimates and assumptions about the carrying value of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are relevant.
The following judgments have had the most significant effect on the amounts recognised in the financial statements.
The investment in the subsidiary is valued at cost less impairment. The Trustees are required to employ judgement in assessing any impairment provisions which may be required.
4. Income from donations
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2023 | 2023 | 2022 | |
| £ | £ | £ | |
| Donations | 625,000 | 625,000 | - |
5. Investment income
| Unrestricted funds 2023 £ Income from listed investments 159,961 Interest receivable 446 160,407 |
Total funds 2023 £ 159,961 446 |
|---|---|
| 160,407 |
Page 18
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
5. Investment income (continued)
| Income from listed investments Interest receivable |
Unrestricted funds 2022 £ 164,732 20 164,752 |
Total funds 2022 £ 164,732 20 |
|---|---|---|
| 164,752 |
6. Analysis of expenditure by activities
| Expenditure on charitable activities Expenditure on charitable activities Analysis of direct costs Governance costs (note 8) |
Activities undertaken directly 2023 £ 38,283 Activities undertaken directly 2022 £ 48,862 |
Grant funding of activities 2023 £ 215,960 Grant funding of activities 2022 £ 154,780 |
Support costs 2023 £ 205 Support costs 2022 £ 691 Total funds 2023 £ 38,283 |
Total funds 2023 £ 254,448 |
|---|---|---|---|---|
| Total funds 2022 £ 204,333 |
||||
| Total funds 2022 £ 48,862 |
Page 19
(A company limited by guarantee)
BELVEDERE TRUST
Notes to the financial statements for the year ended 31 March 2023
7. Grants to institutions
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wallace on the Ward Project | 60,000 | 18,780 |
| The Bow Foodbank | - | 15,000 |
| Acorns Childrens Hospice | - | 1,000 |
| Afghanistan & CAA | - | 1,000 |
| Animal Antiks | - | 1,000 |
| Art Medal Society | - | 20,000 |
| Blood Cancer UK | - | 1,000 |
| Blooming Blossoms | - | 1,000 |
| Bookbunk | - | 10,000 |
| Bowel Research UK | - | 1,000 |
| Canine Concern Scotland | - | 1,000 |
| Clowns in the Sky | - | 1,000 |
| Code your Future | - | 1,000 |
| Cool Earth | - | 5,000 |
| Cued Speech UK | - | 1,000 |
| Derbyshire Association of the Blind | - | 1,000 |
| Douglas Bader Foundaion | - | 1,000 |
| Fine Cell Work | - | 1,000 |
| Grevy's Zebra Trust (Kenya) | - | 1,000 |
| Hope House Children Hospice | - | 1,000 |
| Kidney Care UK | 1,000 | 1,000 |
| Little Village | 10,000 | 18,500 |
| Midlothian Young People AS | - | 1,000 |
| MS Society | 500 | 9,000 |
| Mulanje Mission Hospital | - | 8,000 |
| Norfolk Rivers Trust | - | 1,000 |
| Prevent 2 Protect | - | 1,000 |
| Project Seagrass | - | 1,000 |
| Punchdrunk Enrichment | - | 1,000 |
| Raw Workshop | - | 5,000 |
| Millets Coins at The British Museum | - | (10,000) |
| Safe Families | - | 1,000 |
| Shift.MS | - | 1,000 |
| Sightsavers | - | 1,000 |
| Strongbones Children's Charitable Trust | - | 1,000 |
| Surfers Aginst Sewage | - | 1,000 |
| Target Ovarian Cancer | - | 1,000 |
Page 20
(A company limited by guarantee)
BELVEDERE TRUST
Notes to the financial statements for the year ended 31 March 2023
| The Felix Project | 13,750 | 17,500 |
|---|---|---|
| The Migraine Trust | - | 1,000 |
| TREEZ Malawi | 19,450 | 10,000 |
| Doorstep Library | 5,000 | - |
| Adapt Charity | 1,000 | - |
| Africathletes | 13,844 | - |
| Fitzwilliam Museum | 12,000 | - |
| Alder Hay Children's Charity | 1,000 | - |
| Asthma & Lung UK | 1,000 | - |
| Camden Arts Centre | 1,000 | - |
| Caudwell Children | 1,000 | - |
| City Harvest | 13,501 | - |
| Clean Up UK | 1,000 | - |
| Comar | 1,000 | - |
| Cystic Fibrosis Dream Holidays | 1,000 | - |
| DENS Foodbank | 1,000 | - |
| Dervantio Housing | 1,000 | - |
| Design and Manufacture for Disability | 1,000 | - |
| Doctors of the World | 1,000 | - |
| Drop in the Ocean | 1,015 | - |
| East London Dance | 5,000 | - |
| Eondon Wheelchair Rugby Club | 1,000 | - |
| Exmoor Search & Rescue | 2,400 | - |
| Friends of the Potteries Museum Stoke on Trent | 5,000 | - |
| Handicapped Children Action Group | 1,000 | - |
| Hillhouse | 1,000 | - |
| Kids in Museums | 1,000 | - |
| Kids Space | 1,000 | - |
| Koach Parenting | 1,000 | - |
| Kol Bonaich | 1,000 | - |
| Lennox Children's Cancer Fund | 1,000 | - |
| Living Options Devon | 1,000 | - |
| MACS | 1,000 | - |
| Nara the Breathing Charity | 1,000 | - |
| Olive Ridley Project | 1,000 | - |
| On Course Foundation | 700 | - |
| Oxford Hospitals Charity | 1,000 | - |
| Prospero World | 1,800 | - |
| Richard House Trust | 2,000 | - |
| Roald Dahl Marveous | 1,000 | - |
| Royal Trinity Hospice | 1,000 | - |
| Scotish Association of Marine Science | 1,000 | - |
Page 21
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
| Side by Side Child Social Square Street League Sunny Days Children's Fund Surrey Drug and Alcohol Service Tarka Valley Railway The Air Ambulance The Bach Choir The Brainwave Centre The Childrens Trust The Forward Trust The Frontline Organisation The Grab Trust The No Way Trust The Otakar Kraus The Respite Association The Royal Society for Blind Children The Terrence Higgins Trust Time Out Group Transforming Autism World Literacy Foundation Young Enterprise |
1,000 1,000 1,000 1,000 500 500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 215,960 |
- - - - - - - - - - - - - - - - - - - - - - |
|---|---|---|
| 154,780 |
8. Governance costs
| Unrestricted funds 2023 £ Audit remuneration 17,800 Accountancy fees 10,170 Other administration costs 608 Admin support 9,705 38,283 |
Total funds 2022 £ 20,300 14,490 812 13,260 |
|---|---|
| 48,862 |
Page 22
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
9. Staff costs
The average number of persons employed by the Charity during the year was as follows:
| 2023 | 2022 | |
|---|---|---|
| No. | No. | |
| Employees including directors | 7 | 7 |
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .
11. Fixed asset investments
| Cost or valuation At 1 April 2022 Acquistion at cost Disposal proceeds Unrealised loss on revaluations in the year Realised loss on diposals Movement in cash held as part of portfolio At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Investments in subsidiary companies £ 15,262,347 - - - - - 15,262,347 15,262,347 15,262,347 |
Listed investments £ 24,896,449 2,381,408 (2,242,162) (8,238,189) (131,571) (175,740) 16,490,195 16,490,195 24,896,449 |
Total £ 40,158,796 2,381,408 (2,242,162) (8,238,189) (131,571) (175,740) |
|---|---|---|---|
| 31,752,542 | |||
| 31,752,542 | |||
| 40,158,796 |
The Trust own shares in Ocado Group PLC which are subject to a 10 year restriction on disposal.
Page 23
(A company limited by guarantee)
BELVEDERE TRUST
Notes to the financial statements for the year ended 31 March 2023
11. Fixed asset investments (continued)
Principal subsidiaries
The following was a subsidiary undertaking of the Charity:
| Name | Company | Registered office or principal | Principal activity | |
|---|---|---|---|---|
| number | place of business | |||
| The Box Office New Inn | 11001779 | 2nd Floor, 2 Back Lane, London, | Investment property | |
| Broadway Limited | NW3 1HL | company. | ||
| Class of | Holding | |||
| shares | ||||
| Ordinary | 100% |
The financial results of the subsidiary for the year were:
| Name Income £ Expenditure £ Loss for the year £ The Box Office New Inn Broadway Limited 23,616 391,384 (367,768) 12. Debtors 2023 £ Due within one year Amounts owed by group undertakings 882,000 Other debtors 10,700 Prepayments and accrued income 33 892,733 |
Net assets £ 14,187,266 2022 £ 550,000 15,632 105 |
|---|---|
| 565,737 |
Page 24
BELVEDERE TRUST
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
13. Creditors: Amounts falling due within one year
| Other creditors Accruals and deferred income Creditors: Amounts falling due after more than one year Other creditors |
2023 £ 35,000 40,644 75,644 2023 £ 32,000 |
2022 £ 15,000 44,895 |
|---|---|---|
| 59,895 | ||
| 2022 £ 27,000 |
14. Creditors: Amounts falling due after more than one year
15. Financial instruments
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 16,490,195 | 24,896,449 |
Financial assets measured at fair value through income and expenditure comprise listed investments.
Page 25
BELVEDERE TRUST (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
16. Statement of funds Statement of funds - current year
| Balance at 1 | Gains/ | Balance at 31 | |||
|---|---|---|---|---|---|
| April 2022 | Income | Expenditure | (Losses) | March 2023 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General Funds | 26,334,636 | 785,407 | (295,470) | (419,760) | 26,404,813 |
| Endowment funds | |||||
| Expendable Endowment Funds | 14,637,500 | - | - | (7,950,000) | 6,687,500 |
| Total of funds | 40,972,136 | 785,407 | (295,470) | (8,369,760) | 33,092,313 |
| Statement of funds - prior year | |||||
| Balance at | |||||
| Balance at | Gains/ | 31 March | |||
| 1 April 2021 | Income | Expenditure | (Losses) | 2022 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General Funds | 26,352,865 | 164,752 | (263,969) | 80,988 | 26,334,636 |
| Endowment funds | |||||
| Expendable endowment funds | 25,437,500 | - | - | (10,800,000) | 14,637,500 |
| Total of funds | 51,790,365 | 164,752 | (263,969) | (10,719,012) | 40,972,136 |
Page 26
(A company limited by guarantee)
BELVEDERE TRUST
Notes to the financial statements for the year ended 31 March 2023
17. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Realised losses/(gains) on investments Unrealised losses on revaluation of investments Dividends and interests from investments (Increase) in debtors Increase in creditors Net cash provided by/(used in) operating activities 18. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 19. Analysis of changes in net debt At 1 April 2022 Cash flows £ £ Cash at bank and in hand 334,498 8,458,373 334,498 8,458,373 |
2023 £ (7,879,823) 131,571 8,238,189 (160,407) (326,996) 20,749 23,283 2023 £ 554,682 554,682 Changes in market value and exchange rate movements £ (8,238,189) (8,238,189) |
2022 £ (10,818,229) (89,912) 10,808,923 (164,749) (565,737) 15,745 (813,959) 2022 £ 334,498 334,498 At 31 March 2023 £ 554,682 554,682 |
|---|---|---|
Page 27
BELVEDERE TRUST (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
20. Operating lease commitments
The Charity had no commitments under non-cancellable operating leases at 31 March 2023 or 31 March 2022.
21. Members' liability
Each member of the charitable company is liable to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
22. Related party transactions
During the year the charity received a cash donation of £625,000 (2022: £Nil) from the spouse of a trustee of the charity.
During the year admin and IT support fees of £Nil (2022: £7,443) were charged to Belvedere Trust by a related unincorporated business. No balances were outstanding at either year end.
During the year admin and IT support fee of £12,105 (2022: £7,590) were charged to Belvedere Trust by a related company. No balances were outstanding at either year end.
The charity has adopted the exemption permitted by paragraph 33.1A of FRS102 and has not disclosed transactions with other group members, which are wholly owned subsidiaries.
23. Controlling party
There was no ultimate controlling party throughout the current and previous period.
Page 28