**Charity Registration No. 1095904** **Company Registration No. 04616526 (England and Wales)** # **THE TORCH TRUST FOR THE BLIND ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 30 SEPTEMBER 2020** ## **THE TORCH TRUST FOR THE BLIND** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees/Directors** ||| |---|---| |**Trustees/Directors**|M Baker| ||M Townsend| ||A Brown| ||J Chapman| ||J Dormandy| |**Secretary**|M Heaney| |**Charity number**|1095904| |**Company number**|04616526| |**Principal address**|Torch House| ||Torch Way, Northampton Rd| ||Market Harborough| ||Leics| ||LE16 9HL| |**Registered office**|Torch House| ||Torch Way, Northampton Rd| ||Market Harborough| ||Leics| ||LE16 9HL| |**Independent examiner**|Philip John Dymond FCCA| ||Cheyettes Ltd| ||167 London Road| ||Leicester| ||LE2 1EG| |**LeadershipTeam**|| |Chief Executive|T Jeffery (from 1st September 2020)| ||J Hyde (to 31st March 2020)| |Head of Central Services|M Heaney| |Head of Services|A Blow| |Head of Technical Services|P Wood| ## **THE TORCH TRUST FOR THE BLIND** ## **CONTENTS** ||**Page**| |---|---| |Message from the Chair and CEO|1 - 2| |Trustees' report|3 - 9| |Independent examiner's report|10| |Statement of financial activities|11| |Balance sheet|12| |Statement of cash flows|13| |Notes to the financial statements|14 - 27| ## **THE TORCH TRUST FOR THE BLIND** ## **MESSAGE FROM THE CHAIR AND CEO** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ There can be little doubt that 2020 was an extremely challenging year. We have all been on something of a rollercoaster ride and the reduced opportunities to connect with one another, the isolation, health concerns and so many other challenges, have taken a toll. We are particularly conscious that this has been especially true for some of our blind and partially sighted friends. Torch has not been exempt from any of this. Our ministry has been affected in some significant ways forcing us to react to the limitations placed upon us by the pandemic . We are very conscious though that whilst the pandemic grabbed the headlines, at the same time, Torch faced its own internal difficulties. The last couple of years have seen some significant changes within Torch. New leadership brought new ideas about what Torch should be, how it should work and what it should focus on. Some changes were accepted as a necessary part of Torch moving on whilst others were felt by some to undermine some of the pillars on which Torch had been built. These discussions culminated in Julia Hyde leaving Torch in early 2020 which meant that we entered into the pandemic without a CEO in post and a new chair of the Trust. As a result, we not only had to find the right ways to respond to the pandemic but also to address the difficult issues that had arisen . ## "Commit to the Lord whatever you do and he will establish your plans" (Prov 16: 3). This truth has once again proved true in many ways in the life of Torch. One of those ways was that, at just the right time, the Lord made a connection between the two of us writing this letter – Mike and Tim. Together we were able to help the trustees make sense of what had been happening, and begin to find a way forward. Tim’s role moved from consultant to interim CEO to help bring some stability, experienced leadership and to manage a much needed change process. And at the end of 2020, we all felt the sense of God calling Tim to a longer term commitment of becoming permanent CEO. Having committed our way to the Lord, we certainly experienced his faithfulness as he established His plans for Torch once again . One of the impacts of the virus is that churches and organisations like Torch have had to re-think what we do and how we can best serve the people and communities God has called us to work alongside. Torch was able to adapt quite significantly through 2020 and we have found the Lord leading us into many new and in some ways more fruitful ways of ministering. It has become increasingly clear that we need to re-shape our work for the exciting things God has in store in these changing times as well as accounting for the limitations that result. Some of the highlights include: - Putting new emphasis and investment into supporting our wonderful Torch Fellowship Groups as they seek to minister to blind and partially sighted folk. - Developing a new approach to providing holidays and retreats through Torch Together. - Helping our clients to get used to some of the wonderful new and easy-to-use technologies to access Christian resources. - Exploring ways in which we can reach out with the love of Jesus to those experiencing the trauma of losing their sight. The Lord has opened up so many fresh opportunities for Torch – there is plenty of work for us to do! We have though had some challenging years financially. We have made quite significant deficits in the last two years and have had to make some redundancies, only being kept afloat by the very sad sale of the Holiday and Retreat Centre. Whilst from a human perspective the financial situation is troubling, we continue to trust in the Lord’s provision, knowing that, in His own way and in His own time, He will provide the resources that are needed for the work He has ordained . As we step confidently into 2021, there are many things to be thankful for and lots of things to keep driving us to our knees. One of the Lord’s greatest gifts to Torch are the many individuals and families that make up the incredible Torch Family. We pray that 2021 will be a year when this family thrives and is able to reconnect with great joy after the traumas of the recent past . - 1 - ## **THE TORCH TRUST FOR THE BLIND** ## **MESSAGE FROM THE CHAIR AND CEO** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ We are so grateful for the many individuals and organisations that support Torch’s ministry and look forward to seeing how this ministry will develop in the year ahead. ## **Mike Townsend** Chair of Torch Trust ## **Tim Jeffery** CEO - 2 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ The trustees present their report and financial statements for the year ended 30 September 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 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)” (published in October 2019) . ## **Objectives and activities** ## **Object and Ethos** The objects of Torch Trust are the relief and support of blind and partially sighted people in accordance with the Christian Basis of Faith contained in the charity's governing document. In 2020 Torch Trustees reaffirmed some core principles that should guide the work of the charity: Torch is boldly **Christian** and our particular calling is to stimulate and nurture blind and partially sighted people’s Christian faith journey. This means we have a focus on both sensitive evangelism to those who do not yet identify as Christian and supporting the discipleship journey of those who do. - It also means that we seek to be **inclusive** , looking for ways to engage all blind and partially sighted people and not just those that we have regular contact with. - We recognise the importance of a **personal** approach that deeply values and nurtures relationships. This combination of factors has some practical implications for the scope of work that we do: 1. We will work directly with blind and partially sighted people, dealing with them as unique individuals 2. Given Torch’s size and resources we recognise the need to leverage our impact by working with and through others, supporting churches for example to include blind and partially sighted people in their community life. The Trustees approved a new statement of the charity’s purpose: Torch Trust exists to enable blind and partially sighted people to encounter Jesus, grow in their Christian faith and thrive in Christian community. At the same time, Trustees reaffirmed our four Core Values of being Christ-centred, People-focussed, Open and Creative. However, the Board and leadership team together worked on developing a new articulation of what each of these values means for Torch in this current season. Our programmes are delivered primarily in the UK although we reach many other countries with our accessible literature, and have a particular overseas emphasis in Malawi. Here Torch Trust founded, supports and funds an autonomous non-governmental organisation called Torch Trust for the Blind International (Malawi) which has its own board of trustees. The origins of the Torch Trust of today go back to 1959 when the Trust and its eponymous magazine The Torch were taken on by Ron and Stella Heath. It now operates from Torch House, the headquarters and production building in Leicestershire and up until 31 December 2019 at the Torch Holiday & Retreat Centre in West Sussex. Torch employs around 18 staff and benefits from the skills of many committed volunteers. It has an annual budget of around £650,000 and reaches over 10,000 people with sight loss . ## **Public Benefit** The trustees of the charity have complied with their duty under Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. The objects of Torch Trust are the relief and support of blind and partially sighted people in accordance with the Christian Basis of Faith contained within the charity's governing document. - 3 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ The activities, programmes and services provided in furtherance of these objects have been described in this report. They are available to people of all faiths or none who wish to avail themselves of what Torch has to offer. The Charity is also keen to ensure that cost is not a barrier to participation. Many of its services are free. Publications are provided at no more than a print-equivalent price. Torch also assists Clients whose financial situation prevents them from participating and, where appropriate, will discount the cost. ## **Achievements and performance in the year** 2020 will forever be associated with the Covid-19 Global Pandemic which had its effect upon Torch Trust significantly from March 2020 onwards. This followed internal changes and challenges which had characterised the previous months, with Torch operating effectively without a CEO from the end of 2019. However, the policies and processes which had become embedded within the main aspects of ministry and the staffing team paved the way for an orderly transition and the successful maintenance of Torch’s services throughout the lockdown periods into the following year. Following an in-depth review and external support the sale the Holiday & Retreat Centre premises at Hurstpierpoint was completed in September 2020. HRC has been a significant part of the ministry of Torch over many years and was a special and much loved place for so many people. It is therefore appropriate for us to mourn the ending of that era of Torch’s work but also to give thanks for all that God has done in and through HRC. So many people have been instrumental in establishing and running the Centre and we are so grateful for all that has been poured out by so many to make it the very special place it has been. Unfortunately, HRC was making a significant financial loss and so the decision was a hard but necessary one. The sale of HRC will help us to recover those losses and give us some ability to invest in some new things – including to develop new ways of providing the spiritual refreshment, space to relax and fun that so many experienced at HRC. We trust the Lord, as we move forward to guide us into new and exciting areas of ministry as we seek to be good stewards of all that he has entrusted to us. The year saw Torch House operations limited to the essential core activities which could not take place remotely, and the remaining staff who were not furloughed operating from home. The combination of dedicated staffing, IT support and organizational flexibility enabled Torch’s ministry of essential production, dispatch, library and telephone support to be maintained uninterrupted through the year. The benefit of this was not only to continue serving existing clients, but also to continue to register and serve new clients attracted to us in the times of lockdown. Throughout this time regular risk reviews were undertaken to ensure Torch House was covid-19 compliant. Maintaining regular communication with all staff has been paramount through this year. Torch benefited from the HMRC Furlough scheme to be able to maintain its workforce, and as an expression of its values also topped up salary levels to their full rate at all times. The Covid pandemic was however a time for reflection and trying something new, as Torch was not only able to maintain its traditional services, but also reached out in ways to connect with its programmes which had hitherto involved face to face meetings. Supporting Torch Fellowship Groups, and the Sight Loss Friendly Church (SLFC) initiative increasingly successfully moved to a virtually based approach around Zoom meetings. So much so that the future developments of the SLFC has now pivoted towards ongoing virtual contact, thus opening up far more opportunities. The new opportunity for virtual connections was best demonstrated as Torch conducted its annual thanksgiving event in June via Zoom and also YouTube. It was incredibly successful connecting with hundreds more than when traditionally held in one location. It portrayed Torch as both maintaining and developing its mission despite the challenges of the pandemic and thus serving many with sight loss throughout the UK and beyond. The Torch Together events planned to take place at Christian Centres across the UK were sadly cancelled in 2020 due to the pandemic, but again virtual alternatives began to be designed and delivered, whilst we await restrictions being lifted for face to face events for future years . - 4 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **Overarching Strategy for 2020/21** Torch’s formal strategy developed in 2018/19 and 2019/20 has three areas of activity: - **Priority 1 – Changing lives** : encourage people with sight loss to have confidence in God and in themselves - **Priority 2 - Changing Communities** : enable Christian communities to include people with sight loss - **Priority 3 - Changing the world** : inspire sight loss organisations locally and globally to consider their clients’ spiritual needs In 2020/21 we will continue to operate under this broad framework, focusing particularly on Priorities 1 and 2. ## **Plans for 2020/21** To guide the work of Torch in 2020/21, the Board has agreed to the following outline of Torch’s service portfolio for the year: ## Client Support At the very heart of Torch’s work is the relationships that we have with blind and partially sighted people who contact us looking for help and information. This is provided primarily through a telephone service and follow up emails. Approximately 250 new people make contact each year, although the overall level of calls and active clients has stayed fairly constant for several years. ## Accessible Christian Literature Torch produces Christian reading in braille, giant print and audio. It also publishes magazines, produces Bibles, hymn books, Scripture text calendars, books and booklets, and operates a large free postal library of Christian books in accessible media. Over time the balance in the format requested by clients has seen some change but demand has remained strong and not seen as significant drop-off as had been expected with the advent of new technologies such as eBooks. This area remains part of Torch’s core activity and will continue to receive the required investment to meet demand. ## Radio and podcast output 2020/21 will be a year of evaluation and exploration of options for the future of Torch’s radio ministry. The weekly slot on Premier Radio was withdrawn at the beginning of the pandemic but RNIB remain keen to broadcast Torch output as a key part of their more spiritual content. In addition, there are plans for an increased emphasis on producing podcasts as a way of reaching a wider audience. ## Sight Loss Friendly Church SLFC is the core strand of work under Priority 2 of our Strategy, seeking to enable churches across the UK to include people with sight loss in every aspect of church life. The pandemic and restrictions through most of 2020 meant that travelling to meet churches was not possible. In its place an online offering using Zoom was developed and found to be more effective in engaging churches to become sight loss friendly. In response to this we will reshape the SLFC team in 2020/21 removing the regional rep posts and focus instead primarily on virtual delivery. ## Torch Together With the closure of Torch’s Holiday and Retreat Centre a new programme (Torch Together) for providing a holiday/retreat opportunity was developed to be rolled out in 2020. Due to the Covid pandemic, this unfortunately had to be cancelled but we believe that there is a definite need for such provision. Whilst plans are in place for four Torch Together gatherings in 2021, the trajectory of the pandemic puts them into serious doubt. As an alternative, we will explore the opportunities to provide a virtual offering – ‘Torch Together at Home’ that will provide ‘house party’ days, a Lent course and other opportunities for people to connect together. - 5 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## Torch Fellowship Groups Around the UK there are currently 65 Torch Fellowship Groups providing a wonderful service of fellowship and friendship to blind and partially sighted people. Many of the groups have been active for considerable lengths of time and often operate independently for Torch. The pandemic has ruled out physical meetings and some groups have moved to telephone or online meetings. In 2020/21 we are planning to put some additional staff time into connecting with, supporting and encouraging these Groups. We hope that this improved support will help groups and individuals within them feel more part of the Torch family and become more involved in connecting with and supporting Torch’s ministry more widely. ## Malawi Torch’s international work consists almost entirely of financial and some technical support for Torch Malawi – a legally independent organisation that produces some accessible Christian literature and supports several fellowship groups. At some point, Torch’s relationship to the work in Malawi needs to be reviewed. However, given the volume of other issues to be tackled in 2020/21, we believe that this is not the year to undertake this work. Torch’s financial support to Malawi will therefore continue in 2020/21 with a small increase to allow for the high rate of inflation in Malawi . ## **Financial review** Total income of £66 7 , 2 34 was down on the prior year but this was primarily due to two factors. Legacies were down on previous year by some £120K and in respect to Charitable Activities a significant reduction of 80K due to the cessation of our Holidays programme at HRC, and being unable to provide an alternative due to Covid-19. Income was also supplemented by the rental of unoccupied space in Torch’s property at Torch House. The Statement of Financial Activities shows a total of £320, 2 56 loss on the year when considering a £92,077 loss on the sale on investment properties. The Holiday & Retreat Centre HRC was sold in September 2020 thus still leaving Torch with the freehold ownership of a high-quality building of Torch House to base its ministry from. The sale proceeds provide funds for investment purposes, and a return towards helping Torch to be sustainable over the coming years. The Trust continues to have a strong balance sheet with the funds at year end of £2,33 7 , 2 83 (2019: £2,657,538). The Board with the Head of Central Services, monitors the cash position. However, current regular income is still far short of expenditure thus requiring the effective stewardship and sustainability strategy. The Trustees acknowledge with gratitude all grants received during the year. The Trustees also wish to express their appreciation to the many who support the work of the Torch Trust by making donations, large and small, and honour those who have supported Torch by leaving a legacy gift. The financial administration of the Trust is overseen by the Head of Central Services, Michael Heaney, who reports regularly to the Board on the financial performance of the Trust. A Finance Committee of the Board has been established to review all matters prior to any recommendations to the Board . ## **Reserves Policy** T he Board has a minimum cash reserves policy of the greater of t hree months average expenditure , or the amount required to settle all staffing contracts on closure . For the year under review that amounted to three months average expenditure of £ 224 ,000. ## **Restricted Funds** The net Restricted Funds balances of £ 3 , 686 are detailed in note 20 to the Accounts. All of the funds are likely to be spent during the course of the next financial year. - 6 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **Budget** A budget has been agreed with the Trustee Board for the 20 20 / 21 financial year which supports the programme of work to both continue Torch Trust's activities and services and to meet the objectives set out herein. ## **How Torch raises its funds** We recognise the financial and prayerful support of our many friends, clients, supporters and volunteers. We also appreciate the generous donations from trusts. During the year we employed a "relationships" manager who oversees this aspect of our work. This all feeds into our finance and sustainability plan. ## **Risk review** The trustees recognise their responsibility to identify the major risks to which the Trust is exposed, to review these risks and establish systems to mitigate them. Accordingly, the Trustees have instituted a formal review of risks and controls. These are reviewed on an ongoing basis by the Leadership Team and at least annually by the Board. The Trustees continue to use Peninsular as HR and health and safety advisors. In addition to providing regular advice they conduct an annual inspection at both premises. The advisors have expressed themselves satisfied with our attention to health and safety and monitor matters requiring our attention to ensure they are dealt with promptly. The trustees receive regular health and safety reports and risk review as necessary. During the year policies are reviewed and agreed annually at the AGM ; these include policies for Safeguarding, Conflicts of Interest and Accepting or Rejecting Donations. As a Christian organisation, the Torch Trust seeks and expects to maintain consistently high standards of conduct in all aspects of its operation. ## **Structure, governance and management** ## **Constitution** The Torch Trust for the Blind was incorporated on 13th December 2002 as a company limited by guarantee to carry on the activities of the unincorporated charity of the same name (registered charity no. 208678). The company was registered as a charity with aims equivalent to those of the unincorporated trust and was constituted under a trust deed dated 17th January 1952. The Torch Trust for the Blind is commonly identified as the Torch Trust and frequently referred to as Torch. ## **Board** At the year end the Board of trustees comprised s ix members, three of whom are blind or partially sighted people. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of approval of this Report were: M Baker M Townsend A Brown P Simkiss (Resigned 15 April 2021) J Chapman J Dormandy H Groves (Resigned 5 August 2020) There is a recognition of a need to continue to increase the range of skills on the Board and candidates are actively considered and approached as appropriate. New trustees, who also become directors, are appointed by the board after interviewing by trustees and members of the Executive team and after the taking up of references. - 7 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ In taking up their responsibilities the new trustees are provided with induction training and introductions to all governing documents. Ongoing training is also provided. ## **Leadership** The supervision of the Trust's operations and activities has been delegated by the Board to the Chief Executive who, in consultation with the Leadership team makes day to day decisions to ensure the Trust runs in a manner consistent with its charitable purpose, its aims, values and strategic objectives and with the strategies and policies agreed by the trustees. ## **Staff** Torch's diverse programme of activities and services depends on the expertise and commitment of a loyal team of staff. Torch Trust seeks always to apply the Christian attitudes and values that underpin its work to the employment and management of staff. ## **Volunteers** In making a difference to the lives of blind and partially sighted people, Torch relies on a large number of willing volunteers to support the delivery of its services. In the context of local Torch Fellowship Groups around the UK, usually meeting monthly, an estimated 1,000 volunteers are involved. Work at the Torch headquarters, Torch events and those working from home involves up to 80 people. Volunteers are engaged in the reading and editing of audio books and are also essential to many of Torch’s newer activities, in particular the implementation of the Sight Loss Friendly Church campaign. Through this campaign Torch seeks to grow the number of volunteers involved with Torch. The Trustees are grateful for the diligence and enthusiasm of the large number of people, both staff and volunteers, working to deliver Torch's vision for people with sight loss. ## **Council of Reference** The Council of Reference comprises well-known and respected Christian leaders who not only lend credibility to the Trust through the inclusion of their names on Torch's literature and website, but provide the trustees and leadership with expert advice and counsel. They have no decision-making remit. The Council currently comprises Revd Dr Steve Brady, former Principal of Moorlands College, Revd Dr David Coffey OBE, former President of the World Baptist Alliance, Revd Malcolm Duncan, Senior Pastor at Dundonald Elim Church, Jonathan Lamb, Minister-at-Large for Keswick Ministries, Revd Roy Searle, Leader of the Northumbria Community, Dr Elaine Storkey, former President of TEARfund and Revd Dr Derek Tidball, author, former Principal, London School of Theology. ## **Affiliations** Torch is part of a wider Christian disability network called Churches for All. This helps to ensure that Torch is consistent in its approach to Clients who may also have other disabilities, as well as sight loss. Torch is also a member of a wide range of: - Sight loss organisations and networks, helping it to keep in touch with sector developments and providing opportunities to work with other organisations on specific projects where that is in the interests of Torch . - Christian organisations and networks, seeking to be an influence in churches thus enabling them be a key component in enabling blind and partially sighted people to have a fulfilling Christian life and, with appropriate volunteer training, support people locally who are going through the trauma of sight loss . - Torch has an international reach and so seeks to maintain contact with Christian organisations working with visually impaired people around the world. - 8 - ## **THE TORCH TRUST FOR THE BLIND** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ This Report has been prepared having taken advantage of the small companies exemption in the Companies Act 2006. The trustees' r eport was approved by the Board of Trustees. ## **M Heaney** Company Secretary Dated: 12 May 2021 **M Townsend** Trustee director Dated:12 May 2021 - 9 - ## **THE TORCH TRUST FOR THE BLIND** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF THE TORCH TRUST FOR THE BLIND** I report on the accounts of the charity for the year ended 30 September 2020, which are set out on pages 11 to 27. ## **Respective responsibilities of trustees and examiner** The charity’s trustees, who are also the directors of The Torch Trust for the Blind for the purposes of company law, are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of Association of Chartered Certified Accountants. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: - (i) examine the financial statements under section 145 of the 2011 Act; - (ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and - (iii) to state whether particular matters have come to my attention. ## **Basis of independent examiner's report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as 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 financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention: - (a) which gives me reasonable cause to believe that in any material respect the requirements: - (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and - (ii) to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities; - have not been met or - (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached. Philip John Dymond FCCA Independent Examiner Cheyettes Ltd Chartered Certified Accountants 167 London Road Leicester LE2 1EG Dated: 8 June 2021 - 10 - ## **THE TORCH TRUST FOR THE BLIND** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**2**
504,690
13,772
Charitable activities
**3**
52,967
-
Investments
**4**
25,428
-
Other income
**5**
70,377
-
**Total income**
653,462
13,772
**Expenditure on:**
Raising funds
**6**
15,055
-
Charitable activities
**7**
847,316
28,218
Residential letting costs**10**
90
-
Other
**11**
4,734
-
**Total resources**
**expended**
867,195
28,218
Net gains/(losses) on
investments
**12**
(92,077)
-
**Net outgoing**
**resources before**
**transfers**
(305,810)
(14,446)
Gross transfers
between funds
(6,695)
6,695
**Net expenditure for the year/**
**Net movement in funds**
(312,505)
(7,751)
Fund balances at 1
October 2019
2,646,102
11,437
**Fund balances at 30**
**September 2020**
2,333,597
3,686|**Total**Unrestricted
funds
**2020**
2019
**£**
**£**
518,462
648,343
52,967
124,276
25,428
38,474
70,377
-
667,234
811,093
15,055
21,166
875,534
915,755
90
1,166
4,734
5,648
895,413
943,735
(92,077)
-
(320,256)
(132,642)
-
28,738
(320,256)
(103,904)
2,657,539
2,750,006
2,337,283
2,646,102|Restricted
funds
2019
**£**
34,700
312
-
-
35,012
-
45,198
-
-
45,198
-
(10,186)
(28,738)
(38,924)
50,360
11,436|Total
2019
**£**
683,043
124,588
38,474
-
846,105
21,166
960,953
1,166
5,648
988,933
-
(142,828)
-
(142,828)
2,800,366
2,657,538| |---|---|---|---| |Donations and legacies
**2**
Charitable activities
**3**
Investments
**4**
Other income
**5**
**Total income**
**Expenditure on:**
Raising funds
**6**
Charitable activities
**7**
Residential letting costs**10**
Other
**11**
**Total resources**
**expended**
Net gains/(losses) on
investments
**12**
**Net outgoing**
**resources before**
**transfers**
Gross transfers
between funds
**Net expenditure for the year/**
**Net movement in funds**
Fund balances at 1
October 2019
**Fund balances at 30**
**September 2020**|||| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 11 - ## **THE TORCH TRUST FOR THE BLIND** ## **BALANCE SHEET** ## _**AS AT 30 SEPTEMBER 2020**_ |**Notes**
**Fixed assets**
Tangible assets
**13**
**Current assets**
Stocks
**14**
Debtors
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**17**
**Net assets**
**Income funds**
Restricted funds
**20**
Unrestricted funds|**2020**
**£**
**£**
1,141,239
6,002
24,475
1,556,067
1,586,544
(40,500)
1,546,044
2,687,283
(350,000)
2,337,283
3,686
2,333,597
2,337,283|**2019**
**£**
**£**
2,523,803
3,697
29,552
458,747
491,996
(58,261)
433,735
2,957,538
(300,000)
2,657,538
11,436
2,646,102
2,657,538| |---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2020. The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 12 May 2021 M Townsend **Trustee** **Company Registration No. 04616526** - 12 - ## **THE TORCH TRUST FOR THE BLIND** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**24**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Investment income
**Net cash generated from investing**
**activities**
**Financing activities**
Repayment of borrowings
Proceeds of new bank loans
**Net cash generated from/(used in)**
**financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
**£**
(247,956)
(2,976)
1,275,322
25,430
1,297,776
(2,500)
50,000
47,500
1,097,320
458,747
1,556,067|**2019**
**£**
**£**
(127,192)
(3,598)
-
38,474
34,876
-
-
-
(92,316)
551,063
458,747| |---|---|---| - 13 - **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** ## **Charity information** The Torch Trust for the Blind is a private company limited by guarantee incorporated in England and Wales. The registered office is Torch House, Torch Way, Northampton Rd, Market Harborough, Leics, LE16 9HL. ## **1.1 Accounting convention** The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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)” (published October 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds comprise the accumulated surplus of deficit on the Statement of Financial Activities. They are available for use at the discretion of the trustees in furtherance of the general objectives of the charity unless the funds have been designated for other purposes. Designated funds are those sums set aside by the trustees for specific purposes. Restricted funds are subject to specific restricted conditions imposed by donors. The areas of use of the restricted funds are set out in the notes to the accounts. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Incoming resources** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Income received in respect of holidays and retreats to be fulfilled in a future accounting period is deferred. - 14 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Resources expended** Expenditure is included on an accruals basis. Costs are classified under the charity's functional categories of expenditure and type of expense in order to provide more useful information. The functional costs comprise direct costs attributable to the activity, including irrecoverable VAT. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with budgeted use of resources. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings Straight line over one hundred years Plant and equipment 25% per annum on a straight line basis Fixtures and fittings 25% per annum on a straight line basis Motor vehicles 25% per annum on a straight line basis Freehold land and assets in the course of construction are not depreciated. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 15 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 16 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **2 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
315,396
13,772
Legacies receivable
174,294
-
Grants
15,000
-
504,690
13,772
**Charitable activities**
Sales of Braille, giant print and audio
Holidays and retreats
Other income
Analysis by fund
Unrestricted funds
**For the year ended 30 September 2019**
Unrestricted funds
Restricted funds|**Total**Unrestricted
funds
**2020**
2019
**£**
£
329,168
356,041
174,294
292,302
15,000
-
518,462
648,343|Restricted
funds
2019
£
34,700
-
-
34,700
**2020**
**£**
13,236
31,137
8,594
52,967
52,967|Total
2019
£
390,741
292,302
-
683,043
**2019**
**£**
16,404
82,411
25,773
124,588
124,276
312
124,588| |---|---|---|---| ## **3 Charitable activities** - 17 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **4 Investments** |**5**
**6**|**Unrestricted**Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Rental income
24,195
35,418
Interest receivable
1,233
3,056
25,428
38,474
**Other income**
**Unrestricted**
Total
**funds**
**2020**
2019
**£**
£
JRS grants received
70,377
-
**Raising funds**
**2020**
**2019**
**£**
**£**
Fundraising and publicity
Literature
1,170
5,372
Advertising and promotions
13,444
14,055
Other supporter activity and donations
441
1,739
Fundraising and publicity
15,055
21,166
15,055
21,166
**For the year ended 30 September 2019**
Fundraising and publicity
21,166| |---|---| - 18 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **7 Charitable activities** ||**UK**|**Production**|**Production**|**Overseas**|**Holidays**|**Staff**|**Establishment**|**Support**|**Total**|**Total**| |---|---|---|---|---|---|---|---|---|---|---| ||**outreach**|**and**||**outreach**|**and retreats**|**remuneration**|
**costs**|**costs**|**2020**|**2019**| |||**distribution**||||**and costs**||||| ||**£**|**costs**
|
**£**|**£**|
**£**|
**£**|
**£**|**£**|**£**|**£**| |Staff costs|-||-|-|
-|
630,590|
-|-|630,590|594,872| |Depreciation and impairment|-||-|-|
-|
-|
18,140|-|18,140|35,195| |Overseas outreach|-||-|26,600|
-|
-|
-|-|26,600|44,564| |Radio|2,957||-|-|
-|
-|
-|-|2,957|5,986| |Literature|596||-|-|
-|
-|
-|-|596|433| |Exhibitions and events|540||-|-|
-|
-|
-|-|540|5,647| |Advertising and promotions|10,178||-|-|
-|
-|
-|-|10,178|25,687| |Braille|-||4,137|-|
-|
-|
-|-|4,137|7,923| |Giant print|-|
11,103||-|
-|
-|
-|-|11,103|15,285| |Audio|-||5,590|-|
-|
-|
-|-|5,590|11,319| |Holidays and retreats|-||-|-|
13,091|
-|
-|-|13,091|39,102| |Rates and insurance|-||-|-|
-|
-|
30,606|-|30,606|26,537| |Power and water|-||-|-|
-|
-|
23,152|-|23,152|28,725| |Internet and website|-||-|-|
-|
-|
2,327|-|2,327|706| |Health and safety and security|-||-|-|
-|
-|
8,797|-|8,797|5,573| |Equipment maintenance|-||-|-|
-|
-|
1,980|-|1,980|8,974| |Premises and grounds maintenance|-||-|-|
-|
-|
18,373|-|18,373|23,791| |Hospitality and sundry|-||-|-|
-|
-|
3,484|-|3,484|5,240| |Miscellaneous purchase HRC|-||-|-|
-|
-|
-|42|42|70| |Travel and motor expenses|-||-|-|
-|
-|
-|8,563|8,563|14,570| |Professional and consultancy fees|-||-|-|
-|
-|
-|6,826|6,826|3,242| |Postage and stationery|-||-|-|
-|
-|
-|14,060|14,060|16,961| |Telephone|-||-|-|
-|
-|
-|5,848|5,848|8,130| |Bank charges and interest|-||-|-|
-|
-|
-|14,209|14,209|14,920| |Subscriptions|-||-|-|
-|
-|
-|1,866|1,866|3,412| - 19 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ - **7 Charitable activities** |**Charitable activities**
Software and sundry expenses
**Analysis by fund**
Unrestricted funds
Restricted funds
**For the year ended 30 September 2019**
Unrestricted funds
Restricted funds|-
14,271
14,271
14,271
-
14,271
37,753
-
37,753|-
20,830
20,830
20,830
-
20,830
34,527
-
34,527|-
26,600
26,600
-
26,600
26,600
-
44,564
44,564|-
13,091
13,091
13,091
-
13,091
39,010
92
39,102|-
630,590
630,590
630,590
-
630,590
594,872
-
594,872|-
106,859
106,859
106,859
-
106,859
134,649
92
134,741|11,879
63,293
63,293
61,675
1,618
63,293
74,944
450
75,394|**(Continued)**
11,879
14,089
875,534 960,953
875,534 960,953
847,316
28,218
875,534
915,755
45,198
960,953| |---|---|---|---|---|---|---|---|---| - 20 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Three trustees were reimbursed travel expenses amounting to £ 531 (2019 - f ive trustees £1,309). ## **9 Employees** ## **Number of employees** The average monthly number of employees during the year was: |Management and operational
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
Staff training
Other staff costs|**2020**
**Number**
27
**2020**
**£**
530,468
35,726
13,205
2,431
48,760
630,590|**2019**
**Number**
31
**2019**
**£**
515,334
35,008
11,827
5,294
27,409
594,872| |---|---|---| No employee received emoluments amounting to more than £60,000 in the year. Included in wages and salaries costs are total redundancy payments of £24,945. ## **10 Residential letting costs** Residential letting costs primarily comprise agents fees and repairs. ## **11 Other** |Trustees meeting expenses
Trustees indemnity insurance
Independent Examiner's fees|**2020**
**£**
824
580
3,330
4,734|**2019**
**£**
1,815
503
3,330
5,648| |---|---|---| - 21 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **12 Net gains/(losses) on investments** |Gain/(loss) on sale of investment properties
**13**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 October 2019
2,899,644
Additions
-
Disposals
(1,556,167)
At 30 September 2020
1,343,477
**Depreciation and impairment**
At 1 October 2019
386,821
Depreciation charged in the year
12,357
Eliminated in respect of disposals
(188,768)
At 30 September 2020
210,410
**Carrying amount**
At 30 September 2020
1,133,067
At 30 September 2019
2,512,823|**Unrestricted**
Total
**funds**
**2020**
2019
**£**
£
(92,077)
-
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**Motor vehicles**
**Total**
**£**
**£**
**£**
**£**
290,614
106,974
41,000
3,338,232
-
2,976
-
2,976
(1,362)
(29,558)
-
(1,587,087)
289,252
80,392
41,000
1,754,121
287,915
98,694
41,000
814,430
899
4,884
-
18,140
(1,362)
(29,558)
-
(219,688)
287,452
74,020
41,000
612,882
1,800
6,372
-
1,141,239
2,699
8,281
-
2,523,803| |---|---| Freehold land and buildings includes non-depreciable land in the sum of £110,309. |**14**|**Stocks**||| |---|---|---|---| |||**2020**|**2019**| |||**£**|**£**| ||Finished goods and goods for resale|6,002|3,697| - 22 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**15**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**16**
**Creditors: amounts falling due within one year**
Borrowings
Other taxation and social security
Trade creditors
Accruals and deferred income
**17**
**Creditors: amounts falling due after more than one year**
Bank loans
Other borrowings|**2020**
**£**
19,932
1,952
2,591
24,475
**2020**
**£**
-
25,695
4,953
9,852
40,500
**2020**
**£**
50,000
300,000
350,000|**2019**
**£**
-
27,330
2,222
29,552
**2019**
**£**
2,500
6,261
18,862
30,638
58,261
**2019**
**£**
-
300,000
300,000| |---|---|---| Included above is £ 15 5,000 (2019 - £215,000) repayable in more than 5 years by instalments. Interest is charged at 4% per annum; repayment of the capital commences in May 2023 with the balance of any outstanding sum being written off as a donation in the event of the death of the lender. - 23 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **18 Deferred income** Deferred income relates to rents received relating to the following accounting period and in 2019, deposits for Torch holidays that are recognised in the year the holiday takes place. ||**2020**|**2019**| |---|---|---| ||**£**|**£**| |Balance at start of year|25,591|24,125| |Amounts released to incoming resources|(25,591)|(24,125)| |Amounts deferred in year|5,825|25,591| ||5,825|25,591| ## **19 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £13,205 (2019 - £11,827). - 24 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **20 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |**Balance at**
**1 October 2018**
**£**
Africa - general
18,863
Eastern Europe
(124)
Other UK restricted
2,844
Torch HRC
28,777
50,360|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 October 2019**
**£**
**£**
**£**
**£**
32,540
(45,092)
1,929
8,240
472
-
(2)
347
1,345
(80)
(1,259)
2,850
655
(26)
(29,406)
-
35,012
(45,198)
(28,738)
11,437|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**30 September**
**2020**
**£**
**£**
**£**
**£**
11,610
(28,218)
8,368
-
472
-
7
826
1,450
-
(1,440)
2,860
240
-
(240)
-
13,772
(28,218)
6,695
3,686| |---|---|---| The areas of operation in respect of these funds are as set out in the Trustees' Report. The transfers represent charges payable towards the administration of gifts together with any capital costs incurred by restricted projects. - 25 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**21**
**Analysis of net assets between funds**
**Unrestricted**
**Restricted**
**2020**
**2020**
**£**
**£**
Fund balances at 30
September 2020 are
represented by:
Tangible assets
1,141,239
-
Current assets/
(liabilities)
1,542,358
3,686
Long term liabilities
(350,000)
-
2,333,597
3,686|**Total**Unrestricted
**2020**
2019
**£**
£
1,141,239
2,523,803
1,546,044
422,299
(350,000)
(300,000)
2,337,283
2,646,102|Restricted
2019
£
-
11,436
-
11,436|Total
2019
£
2,523,803
433,735
(300,000)
2,657,538| |---|---|---|---| ## **22 Operating lease commitments** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2020**
**£**
9,000
4,500
13,500|**2019**
**£**
9,000
13,500
22,500| |---|---|---| ## **23 Related party transactions** ## **Transactions with related parties** During the year the charity entered into the following transactions with related parties: Marilyn Baker, a trustee of The Torch Trust for the Blind, is an employee of the charity MBM. The Torch Trust for the Blind has a contract in place with MBM for the provision of speakers, music and programme for retreats and away days, speakers and music for Torch events, advice in connection with and presenter of the Torch Reflections Radio programme and other specific duties appropriate to the work of MBM on request. Expenditure amounted to £ 3 23 in the year (201 9 - £1, 208 ). At 30th September 2020 the amount owed to MBM by The Torch Trust for the Blind was £ 323 (201 9 - £ 708 ). Dr. Michael Townsend, a trustee of The Torch Trust for the Blind, is also a trustee director of Through the Roof Charitable Trust. During the prior year the charitable company was charged a members contribution of £ 750 in connection with Churches for All network. Philippa Simkiss, a trustee of The Torch Trust for the Blind, provided consultancy services during the prior year to the charitable company of £ 8,961 . - 26 - ## **THE TORCH TRUST FOR THE BLIND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**24**
**Cash generated from operations**
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss on disposal of investment property
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in stocks
Decrease in debtors
(Decrease) in creditors
**Cash absorbed by operations**
25
**Analysis of changes in net funds**
**At 1 October**
**2019**
**£**
Cash at bank and in hand
458,747
Loans falling due within one year
(2,500)
Loans falling due after more than one year
(300,000)
156,247|**2020**
**2019**
**£**
**£**
(320,256)
(142,828)
(25,428)
(38,474)
92,077
-
18,140
35,195
(2,305)
(184)
5,077
29,861
(15,261)
(10,762)
(247,956)
(127,192)
**Cash flows At 30 September**
**2020**
**£**
**£**
1,097,320
1,556,067
2,500
-
(50,000)
(350,000)
1,049,820
1,206,067| |---|---| - 27 -