## **THE CROPWOOD ESTATE** # **REPORT AND FINANCIAL STATEMENTS** ## **31 MARCH 2023** **Registered charity number: 1085296** OFFICIAL ## **The Cropwood Estate** ## **Table of Contents** Report of the Trustees ............................................................................................................. 2-5 Independent Examiner's Report ................................................................................................. 6 Statement of Financial Activities ............................................................................................... 7 Balance Sheet ............................................................................................................................. 8 Notes to the Financial Statements ..................................................................................... 8-9-13 1 OFFICIAL ## **The Cropwood Estate** ## **Report of the Trustees for the Year Ended 31 March 2023** The Trustees present their report along with the financial statements of the charity for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in the notes thereto and comply with the charity’s trust deed and applicable law. ## **Reference and administrative information** |Name of charity:|The Cropwood Estate| |---|---| |Registered charity number:|1085296| |Address for correspondence|Birmingham City Council| |and/or donation is:|c/o Trusts & Charities Committee| ||The Council House| ||Birmingham| ||B1 1BB| ||Cheques should be made payable to “Birmingham City| ||Council”| |Trustee:
|Birmingham City Council as the Sole Corporate Trustee| |Independent Examiner:|Mr Jason Seagrave FCCA| ||Seagrave French LLP| ||1 Poplars Court| ||Lenton Lane| ||Nottingham| ||NG7 2RR| |Investment Manager:|CCLA| ||Senator House| ||85 Queen Victoria Street| ||London| ||EC4V 4ET| |Bank:|Barclays Bank plc| ||15 Colmore Row| ||Birmingham| ||B3 2BH| 2 OFFICIAL ## **The Cropwood Estate** ## **Report of the Trustees for the Year Ended 31 March 2023** **(cont’d)** ## **Structure, Governance and Management** ## _Governing document_ The Trust is established under a charity commission scheme dated 12 November 1997 and it is a registered charity, number 1085296. ## _Recruitment and appointment of trustees_ The minimum number of Trustees is five and the maximum number is ten. The trustees shall be: - Birmingham City Council - Trusts and Charities Committee. - Nominated and Co-opted Trustees hold office for two years but on retirement are eligible for reappointment. ## _Trustees Meetings_ Three Trustees are necessary to form a quorum. Issues are decided by a simple majority of those present and voting, provided at least two Trustees vote in favour of the resolution. ## **Objectives and Activities** The object of the Charity shall be the furtherance of any charitable purpose for the benefit of the inhabitants of the City of Birmingham including all or any of the following purposes:- - a) the provision and support of educational facilities; - b) the provision and support of facilities for recreation and other leisure time occupation, with the object of improving the conditions of life for the said inhabitants; - c) the relief of the aged, impotent and poor; and - d) the relief of sickness. The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the charitable company and in planning any future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives set. ## **Public Benefit** The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the charitable company and in planning any future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives set. ## **Achievements and Performance** Total incoming resources for the year were £38,158 (2022: £22,349). This represents £24,733 interest earned through the City Councils CCLA (Churches, Charities and Local Authorities) 3 OFFICIAL ## **The Cropwood Estate** ## **Report of the Trustees for the Year Ended 31 March 2023** **(cont’d)** Investment Management Limited investment. Leased income earned in-year £13,425 (2022: £1,815) from the 3 properties managed by Birmingham Property Services (BPS). The above represents the only financial movement on the account during the 2022-23 financial year. ## **Financial Review** ## _Reserves and Grant Making Policy_ As indicated above in 'Achievements and Performance' there has been no activity in respect of the trust during 2022-23. The Cropwood Advisory Liaison Group may take a report to the Trusts & Charities Committee to seek further funding for routine maintenance which is required in respect of the estate. Unrestricted expenditure totalled £875 (2022: £464) which comprised administration costs. The Trustees are of the opinion that the Balance Sheet discloses funds adequate for the purpose of fulfilling the obligations of the charity. ## _Reserves Policy_ It is the policy of the charity to retain unrestricted funds, which are the free reserves of the charity, accumulated through the collection of rent from the Trust’s property portfolio. This provides sufficient funds to cover 12 months estimated operating costs. ## _Investment policy_ The Trustees have the power to invest trust money in the purchase of, or an interest in the security of, such stocks, funds, shares, securities or other investment or property of whatever nature and wherever situated as the Trustees in their absolute discretion think fit to the intent that the Trustees shall have the same full and unrestricted powers of investing and transposing investments as if they were beneficially entitled to the Trust Fund. All investment is subject to the Trustee Act 2000. ## _Risk Management_ The Trustees keep under review the major strategic and operational risks which the charity faces and are satisfied that systems have been established in order to minimise the possible effects of such risks on the charity. Retaining the property portfolio in Trust and the management and investment of the accumulated income by the CCLA in COIF, minimises the risk to the Trust. Systems are in place, which likewise lessens any risk associated. 4 OFFICIAL ## **The Cropwood Estate** ## **Report of the Trustees for the Year Ended 31 March 2023 (cont’d)** ## **Trustees’ Responsibilities in Relation to the Financial Statements** The Trustees are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the 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 then apply them consistently; - observe the methods and principles in the Charities SORP 2019; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and - prepare the 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 accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2016, the Charity (Accounts and Reports) Regulations 2016, Financial Reporting Standard (FRS 102) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees and signed on their behalf by: **Trustee: Councillor Phil Davis** (Chair of the Trusts and Charities Committee) Date: 4 February 2025 5 OFFICIAL ## **The Cropwood Estate** ## **Independent Examiner's Report to the Trustees of The Cropwood Estate** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2023. ## **Responsibilities and basis of report** As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## **Jason Seagrave FCCA** Seagrave French LLP 1 Poplars Court Lenton Lane Nottingham NG7 2RR Date: 4 February 2025 6 OFFICIAL ## **The Cropwood Estate** ## **Statement of Financial Activities for the Year Ended 31 March 2023** |**Notes**
**Incoming resources**
Investment income
2
Leased land income
3
Other incoming resources
Misc. income
**Total incoming resources**
**Resources expended**
Costs of BCC administration on behalf
of the trust
5
Grants payable in furtherance of the
charity’s objectives
**Total resources expended**
**Net incoming resources before**
**transfers**
**Transfer**
Gross transfers between funds
**Net incoming resources before other**
**recognised gains and losses**
Net gains/(losses) on investments
4
Revaluation of fixed assets for charity’s
own use
6
**Net movement in funds**
**Reconciliation of funds**
Balance of funds brought forward
at 1 April
**Balance of funds carried forward**
**at 31 March**|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**2023**
**£**
**Total**
**2022**
**£**
24,733
-
24,733
20,534
13,425
-
13,425
1,815
-
-
-
-| |---|---| ||**38,158**
**-**
**38,158**
**22,349**
875
-
875
464
-
-
-
-| ||**875**
**-**
**875**
**464**
**37,283**
**-**
**37,283**
**21,884**
-
-
-
-| ||**37,283**
**-**
**37,283**
**21,884**
-
(27,836)
(27,836)
59,239
(5,000,700)
-
(5,000,700)
-| ||**(4,963,417)**
**(27,836)**
**(4,991,253)**
**81,124**
14,353,401
742,590
15,095,991
15,014,867| ||**9,398,984 **
**714,754 **
**10,104,738**
**15,095,991 **| 7 OFFICIAL ## **The Cropwood Estate** ## **Balance Sheet as at 31 March 2023** |**Notes**
**Fixed assets**
Land and buildings
6
Investments
7
**Current assets**
Debtors: Amounts falling due within
one year
**Current liabilities**
Creditors: Amounts falling due
within one year
**Net current assets**
8
**Net assets**
**Funds**|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**2023**
**£**
**Total**
**2022**
**£**
9,174,300
-
9,174,300 14,175,000
201,132
714,754
915,886
919,578| |---|---| ||**9,375,432**
**714,754 10,090,186 15,094,578**
15,892
-
15,892
1,878
(1,340)
-
(1,340)
(464)| ||**14,552**
**-**
**14,552**
**1,413**| ||**9,389,984**
**714,754 10,104,738 15,095,991**| ||| ||**9,389,984**
**714,754 10,104,738 15,095,991**| Approved by the Trustees and signed on their behalf by: **Trustee: Councillor Phil Davis** (Chair of the Trusts and Charities Committee) Date: 4 February 2025 8 OFFICIAL ## **The Cropwood Estate** ## **Notes forming part of the Financial Statements for the year ending 31 March 2023** Note 1: Principal Accounting Policies ## a) Accounting Convention The accounts (financial statements) have been prepared, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements are prepared on a going concern basis, under the historic cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the charity. The significant accounting policies applied in the presentation of these financial statements, are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. The charity has taken advantage, of the option provided in the Statement of Recommended Practice, to use headings in the Statement of Financial Activities, that are applicable to their specific activity, rather than reporting on an activity basis b) Income Income from rents and easements are credited to income in the year in which they are receivable. Interest on short-term deposits is credited to income in the year in which it is received. ## c) Expenditure Expenses are charged in the financial statements in the year to which the liability relates. Charitable expenditure comprises those costs incurred by the Charity in the delivery of the activities and services for its beneficiaries. It includes, both costs that can be allocated directly to such activities and those costs of an indirect nature, necessary to support them. Governance costs included charitable activities, include those costs associated with meeting the constitutional and statutory requirements of the charity and costs linked to the strategic management of the Charity. Administration costs are costs for Birmingham City Council officer’s time to support the Charity. d) Fund Accounting Details and the nature of each fund are set below: **Unrestricted Funds** comprise those funds which the Trustees are free to use in accordance with the charitable objects. **Restricted Funds** represent those assets that must be held permanently by the charity. 9 OFFICIAL ## **The Cropwood Estate** ## **Notes forming part of the Financial Statements for the year ending 31 March 2023 (cont’d)** ## 2. Investment Income |Dividends from COIF Investment Fund
CCLA Deposit Fund Interest

**Total**

3.
Leased Land Income
Leased Land Income

**Total**
|**2023**
**£**
20,808
3,925
**24,733**
**2023**
**£**
13,425
**13,425**|**2022**
**£**
20,400
134
**20,534**
**2022**
**£**
1,815
**1,815**| |---|---|---| |||



| Leased Income is collected on behalf of the Trust by Birmingham Property Services (BPS) and should be paid annually for Property Ref 1314 - Linthurst Road, ref 2237 - St Catherines Road and ref 10030 Cropwood Scout Hut. ## 4. Gains and Losses on CCLA Investments |Opening Balance at 1 April

Closing Balance at 31 March
**Movement in COIF Investment Fund**|**2023**
**2022**
**£**
**£**
742,590 683,351
714,754
742,590
**(27,836)**
**59,239**| |---|---| 10 OFFICIAL ## **The Cropwood Estate** ## **Notes forming part of the Financial Statements for the year ending 31 March 2023 (cont’d)** ## Gains and Losses on CCLA Investments (cont’d) 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 their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. ## 5. Resources Expended ||**2023**|**2022**| |---|---|---| ||**£**|**£**| |BCC administration costs|475|464| |Cost of Essential Maintenance Work|-|-| |Independent Examiners Cost|400|-| |**Total**
|**875**|**464**| 11 OFFICIAL ## **The Cropwood Estate** ## **Notes forming part of the Financial Statements for the year ending 31 March 2023 (cont’d)** ## 6. Tangible Assets |**Cost**
**Land and Buildings**
**£**
At 31 March 2022
14,175,000
Additions
-
Revaluation
(5,000,700)
Disposals
-
**At 31 March 2023**
**9,174,300**
**Depreciation Land and Buildings**
**£**
At 31 March 2022
-
Disposals
-
Depreciation
-
Impairment
-
**At 31 March 2023**
**-**
**Net Book Value Land and Buildings**
**£**
At 31 March 2022
14,175,000
**At 31 March 2023**
**9,174,300**|**Total**
**£**
14,175,000
-
(5,000,700)
-
**9,174,300**
**Total**
**£**
-
-
-
-
**-**
**Total**
**£**
14,175,000
**9,174,300**| |---|---| The revaluation for the financial year 2022-23 acknowledges that the site previously housed an educational facility, which was valued using the Depreciated Replacement Cost method. With the closure of this facility, the asset has now been reclassified as Other Land & Buildings, designated for development. Land and buildings are included and are on the following valuation basis:- - The valuation assumes no tenancies exist on the estate. - In the absence of a detailed site inspection, the absence of any adverse site conditions has been assumed. 12 OFFICIAL ## **The Cropwood Estate** ## **Notes forming part of the Financial Statements for the year ending 31 March 2023 (cont’d)** ## Tangible Assets (cont’d) - Full compliance with all relevant planning consent is assumed. - Suitable road access has been assumed. - Good freehold title and the absence of any onerous easements, restrictions or covenants is assumed. - Land is not revalued on a yearly basis. ## 7. Investments _Analysis of Movements in Investments_ |Market value as at 1 April 2022
In-year movement
Market value as at 31 March 2023|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**£**
176,988
742,590
919,578
24,144
(27,836)
(3,692)| |---|---| ||**201,132**
**714,754**
**915,886**| Investments are included at closing market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. ## 8. Net Current Assets The net current asset will be transferred to the CCLA deposit account in 2023-24. ## 9. Remuneration and Expenses None of the Trustees receive remuneration or other benefits from the Charity or reimbursement for any expenses incurred on behalf of the Charity, (2022: None). 13 OFFICIAL