ADDINGTON FUND
TRUSTEES' REPORT
AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Charity Number: 1097092 Company Number: 4654186
OO
BT
TRUSTEES AND ADVISORS
| CharityNumber: | 1097092 |
|---|---|
| CompanyNumber: | 4654186 |
| Principal& Registered Office: | 9 BarfordExchange |
| Wellesbourne Road | |
| Barford | |
| Warwickshire | |
| ‘CV35 8AQ | |
| Trustees: | MrsL JDibble |
| S GMountjoyDFM,FBIAC | |
| Mrs CRyder | |
| MR Redfearn FIAgrM (Interim Chairman) |
|
| P SnodgrassMA (Cantab) (Secretary) | |
| Mrs CV Stevens | |
| EKC Murray-Clarke | |
| RMaunder | |
| Andrew WardMBE | |
| Thomas Hind | |
| Secretary: | P SnodgrassMA(Cantab) |
| ChiefExecutive Officer: | WE Young |
| Bankers: | National WestminsterBankPlc |
| 59 Parade | |
| Leamington Spa | |
| Warwickshire | |
| CV32 4BH | |
| Auditors: | LuckmansDuckettParkerLimited |
| 1110 Elliott Court | |
| Coventry Business Park | |
| Herald Avenue | |
| Coventry | |
| CV5 6UB | |
| Solicitors: | LoddersLLP |
| 10 Elm Court | |
| Arden Street | |
| StratforduponAvon | |
| CV37 6PA | |
| Stockbrokers: | BrewinDolphin |
| 4"Floor 9 ColmoreRow | |
| Birmingham | |
| B32BJ |
TRUSTEES' REPORT
The Trustees present their report and the accounts for the year ended 31 March 2023. The financial statements 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 (FRS102).
Chairman’s report
It is with a heavy heart that I sit down to write this report — because it should be being created by Peter Jinman.
While I am conscious that these notes should refer principally to Addington’s accounts for the financial year 2022-2023, at the time of writing there are issues which demand more immediate address.
For twelve years Peter Jinman OBE was a trustee and, more recently, hugely effective chair of the Addington Fund. As well as being a much loved husband and father, he was a busy and highly regarded professional. His roles included those of a working vet, advisor to Governments on animal and related human health issues, past president of both the Royal College of Veterinary Surgeons and the British Veterinary Association, Chair of the Farmers Club, County Councillor, Liveryman of the Worshipful Company of Farmers, and Freeman of the City of London. And much, much more. A man who wore many hats, but for none of which was his head even remotely too big.
Peter was diagnosed with cancer towards the end of 2022, yet remained fully participative in Addington’s affairs and meetings, as well as his many other commitments and interests, throughout his illness. Peter died on May 25" 2023. He is and will remain a much missed friend and colleague.
Also this year we bade farewell to our CEO Bill Young — but under happier circumstances. After five successful years in the role, as these and previous accounts evidence, Bill told the trustees that he felt that he had at least one more good job to do, and they agreed that he should be free to seek it out and stamp his mark elsewhere. We are grateful to Bill for his dedication to our charity, and the financial and other successes to which he has made such a valuable contribution. We wish him continuing personal and professional success in which ever role he chooses to adopt in the future.
Of course a charity’s success is not measured purely in cash surpluses and strengthening balance sheets. While financial resources are usually necessary in order to carry out our work, we rely heavily on our staff in order to promote our work, and to get it done. I have always been impressed with the hard work, dedication and professionalism of our small team at Barford, and never more so than this year. I sincerely thank them all.
Another key measure of the success of any charity must be its effectiveness, and delivery on its charitable objectives. There are no obvious empirical measures of such things, although we are pleased that our Social Value review suggests that our return on charitable spend is over 12:1. We are extremely proud of the way in which our small team handle difficult, often complex enquiries and requests for support, and of their empathy and engagement with those who come to us for help. We will continue to look for ways in which to measure, and increase, our effectiveness in the farming and wider rural sectors.
We are always grateful to our supporters and donors. Every pound is precious, no matter its source, but this year we have been blessed with two particularly large legacies which have significantly strengthened our ability to carry out our objectives.
We are also, as ever, grateful to our patron HRH The Countess of Wessex — now Duchess of Edinburgh — and our vice patrons The Rt Honourable The Countess Bathurst, The Hon Mrs Rupert Soames and The Rt Reverend John Stroyan. Their help and support is hugely valuable, and I thank them most sincerely.
In the coming year, following the loss of both Peter and Bill, the trustees will take the opportunity to evaluate the way in which we work and are structured, and I look forward to reporting the outcome of those deliberations next year. In the meantime I am pleased to report another successful year for Addington, and to assure all our friends and supporters that we will continue our work to deliver on our objectives, and grow our beneficiaries while maintaining financial resilience.
Martin Redfearn Interim Chair
1
|
TRUSTEES' REPORT
Objectives of the Addington Fund
The trustees confirm that they have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the charity’s aims and objectives and planning future activities. The charity's objects (the Objects) are the promotion for the public benefit of rural regeneration in areas of social or economic deprivation, in particular by:-
- (a) The relief of poverty
(b) The provision of housing for those who are in need provided that such power shall not extend to relieving any local authority or other bodies of a statutory duty to provide or improve housing.
Copies of the Memorandum of Association can be obtained on request.
Public benefit
Addington Fund delivers public benefit through five principal channels. The Trustees’ Discretionary Fund (TDF) offers short-term financial support to farming families who are affected by factors ~ often extreme weather or animal disease events — which are completely outside of their control. The Strategic Rural Housing Scheme (SRHS) provides housing for farming families needing to retire from the industry, or who are otherwise obliged to leave due to ill health, bereavement, or other factors beyond their control and, in so doing, will lose their family home. Wherever possible we work with eligible beneficiaries to identify properties which will allow them to continue to live in and contribute to the communities with which they are familiar.
Eligibility for our Affordable Housing Scheme (AHS) is wider. It is open to anyone working in a rural industry but who struggle to find an affordable property sufficiently close to their place(s) of work, and also to farm workers losing their tied cottage at the end of their working life. This part of our property portfolio typically comprises homes built by us on donated land or land purchased at reduced value, or homes bequeathed to the charity. Both housing schemes offer rents which are typically 20% below the average market rate in the area. The George Stephens Trust Fund (GSTF) is specifically available to those working on farms, or retired farm workers, who find themselves in financial hardship. It provides grants towards essential kitchen and bathroom ‘white goods’, and other home furnishings at the trustees’ discretion. Our Young Entrants Scheme (YES) is still in its infancy, but the vision of trustees is to provide affordable opportunities to enable youngsters to establish their first step on the farming ladder.
Review of operations, achievements and performance
The proven models of our TDF, and both our rural housing schemes, remain the core work of the charity. The TDF was conceived in 2004 as a means of continuing the work first undertaken by the charity to provide support for farming families affected by Classical Swine Fever in 2000, and Foot and Mouth Disease in 2001. It consists of an endowment fund and a restricted fund and, since 2007 has been the preferred vehicle to deliver our disaster relief work.
Thankfully there were no large scale weather or animal disease related events during the year under review. That said, we had ninety hardship applications to the TDF, and fifty-three expressions of interest in our two housing schemes.
We continued to support farmers across England and Wales affected by circumstances which compromised the farm’s ability to feed their livestock, and Bovine Tuberculosis continues to be an issue. Confirmed cases of TB are spreading worryingly across more of England and Wales, affecting dairy and beef farmers who would never previously have considered that their geographical area would become a hot spot. Situations where we are called upon are becoming more complex.
Our first house purchase was in 2002 and, as many of our tenants were at or beyond retirement age when they first met us, it is inevitable that this relationship will not last forever. We are proud and pleased that, during their time with us, our tenants’ dignity and independence has been maintained and enjoyed in ‘their Addington home for life.’ Nevertheless, when the time comes, property is sold, and the funds return to the charity to enable us to support more families in the future. This is a true act of repurposing the original donation!
2
RE
|
ADDINGTON FUND TRUSTEES' REPORT
Over 60% of our SRHS tenants have a share of equity in their property, which adds to the dignity of their retirement and also reduces the amount of capital the charity needs to commit to secure a successful house purchase. When such properties are sold the proceeds are shared between Addington and the tenant, or their estate, in direct proportion to the shared equity — thus passing gains from appreciating property values to their rightful place.
Our housing schemes are niche but, for those we are able to help, the benefits to the family, and the wider rural community are huge. The ripple effect of keeping people in an environment where they feel safe, comfortable, and close to family and friends is difficult to quantify. Addington does not promote itself as a charity specialising in mental health issues, but we see the positive impact that providing a safe, appropriate, secure, and affordable home can have on our beneficiaries which we believe must have a positive impact on their mental wellbeing.
As the Basic Payments Scheme — the principal subsidy scheme for farmers throughout UK - winds down, it was envisaged that more tenants would apply to the Lump Sum Exit Scheme and look to Addington for help with the shortfall to buy their ‘retire to” home. In practice demand was not as high as we had expected but nevertheless continues at a steady rate and creates challenges for us to match our resources to the on-going demand.
The ability of Addington Fund to help more families is obviously linked to the level of donation income. The corporate sector has seen significant pressure on marketing and social responsibility budgets, yet many agriculturally related businesses continue to support us. Every contribution is special, regardless of the amount or value. Sponsorships for our farming awards and awards dinners, the loose change dropped into a bucket at the exit of an agricultural show, regular donations by standing order, a cheque in the morning’s post, a collection from a church service, or a donation to the proceeds from a fund-raising dinner — they all count. To receive a letter from a solicitor saying that Addington has been bequeathed a house is a particular honour, and to take a telephone call offering Addington a farm is very humbling. Discussions are taking place with several families who wish to eventually bequeath their farm to Addington to create opportunities for young families to farm.
In this financial year we have benefitted from two special legacies which, combined, came to just short of £I1m. The common thread between the donors was a love of the countryside, animals, and the country way of life. In this everincreasingly urban focused world, it is encouraging that things like maintaining a healthy countryside do still matter.
Farming is a vital industry. After all, we all need to eat. The agricultural industry also takes responsibility for the environment and biodiversity, public access to our beautiful countryside, and the generation of renewable energy. Experience gained from our Comwall and Devon Farm Business Awards, and from talking to Young Farmers Clubs around the country, highlights the quality and ability of our next generation of farmers, if only we could find more opportunities for them to farm.
Addington uses as many opportunities as possible to promote British farming, be it at a Harvest Festival, a fundraising breakfast of local food, or a dinner to explain the importance and complexity of the agricultural industry. The Addington Cornwall Farm Business Awards and the Addington Devon Farm Business Awards continue to recognise the calibre of farming families and farming businesses in both counties.
In financial terms Addington is often thought to be a medium sized charity, but at heart we are a small charity, run on a daily basis by a small executive team, but one that cares passionately for the wellbeing of the families who come to us. Knowledge of farming and country life runs through both trustees and staff} we do understand the sector in which we work. Some of the housing applications we receive are very complicated, involving issues around relationships, health and finance, yet every case is dealt with in a sympathetic but realistic manner.
Thanks to the albeit below market rent income from our property portfolio we are able to cover a very high proportion of our running costs ourselves. In hard cash terms this means that, for every £1 we receive in donations, we can apply at least £0.95 to our charitable work. Moreover a recently completed Social Value exercise estimated for every £1 we spent, the social value return was £12.37.
;
The Trustees again extend their sincere thanks to all the sponsors and donors who have supported the Addington Fund throughout the year.
3
|
TRUSTEES' REPORT
Financial Review
The Trustees continue to grow the charity: the balance sheet net worth stands at £16.1m this year, up over £1.1m on the previous year. Our property values stood up well, but our desktop valuation shows a north/south divide with some valuations falling in the North East and Wales. Properties are professionally valued every 10 years.
Since COVID 19 it is no secret that the charitable sector has struggled to attract the level of funding achieved preCOVID, and legacies can make so much difference to charity accounts. In this financial year, we received one large legacy in particular which has contributed towards the £959,998 increase in our donated income. Charity accounting rules state that the value of the legacy as notified in that accounting year must be accounted for in that year, whether the legacy has reached the charity or not.
As the shows and events scene is now more or less back to pre-COVID normal, our income from fundraising activities which include our Farm Business Awards, charity dinners, and sponsors support increased from £27,307 and, with interest rates rising, our investment income has improved on last year also.
All donations are welcome but for those that come with a restriction, it can be challenging for a charity to find a use for the gift as expressed by the benefactor. We do our best, but there are counties in England and Wales where we have not yet had any calls for help.
The cost of running the charity increased by £73,503 to £647,846, but with hardship grants totalling, £98,458, £21,000 of the increase is due to our having provided more financial help to farming families. Property maintenance costs increased by £8,500 and an additional member of staff contributed towards the increase in running costs. This one extra staff member took us up to a total of six. For a charity of our financial and social worth, we run on a skeleton team.
At the beginning of this financial year the Bank of England Base Rate was 0.75% but by the year-end stood at 4.25%. Although we have a term loan facility with the NatWest bank, trustees stress tested the cost of borrowing to fund property purchases on a regular basis and have not been able to justify the cost of acquiring or developing properties on borrowed money. Interest bearing accounts were slow to follow base rate increases and, with an erratic Stock Market, finding a suitable home for the charity’s cash deposits was more challenging than ever. At the end of the year, cash investments are currently held in ten different accounts in order to spread the risk.
Structure, governance and management
Addington Fund is a registered charity and a company limited by guarantee. Addington changed its name from The ARC Addington Fund to Addington Fund on 8 September 2011. Originally established in March 2001 as The Arthur Rank Centre Addington Fund, the assets were transferred to the current Addington Fund (formerly known as The ARCAddington Fund) in 2003. The ARC-Addington Fund was incorporated under the Companies Act 1985 on 31st January 2003. The Trustees continue to conduct annually a full review to ensure the charities activities comply with the Charity Commission and Companies House, and risk management policies.
Addington Fund continues to play a key role in Farming Help, alongside colleagues from Farming Community Network and Forage Aid. We are grateful to The Princes Countryside Fund, now The Royal Countryside Fund, for their loyal financial support which enabled the rebranding of Farming Help and enabled the charities to have a joint presence at many shows and events throughout the year.
In the year under review Addington trustees have been in discussion with the trustees of fellow farming charity Forage Aid to investigate the two charities uniting, and there will be further information in our 2024 Annual Report.
The trustees meet at least four times a year either virtually, face to face or in combination to oversee the responsibilities of the charity, calling in further expertise where required. Sub-committees, each chaired by a Trustee, oversee the charity’s housing, grants, marketing, and governance, meeting in advance of the main Board of Trustees.
Our Patron, HRH The Duchess of Edinburgh takes an enthusiastic interest in our work. Since she became our Patron in 2021, The Duchess has visited our office to meet the staff and gave her input into our marketing materials. She attended
4
|
‘
TRUSTEES' REPORT
a farm tour at the Smerrill Dairy Unit on the Bathurst Estate in Gloucestershire, in association with The Royal Agricultural University. Kindly hosted by The Earl and Countess Bathurst, the day consisted of a tour around the dairy unit followed by a lunch and a tour of the campus. HRH’s visit highlighted the importance of the dairy industry within agriculture, and the difficulties the whole industry is currently facing. She visited our stand at Groundswell in June and our CEO even appeared in Hello magazine walking through the cattle yards at The Dairy Unit! Two members of staff were also invited to the King’s Garden Party in Buckingham Palace at HRH’s request.
The Rt Hon The Countess Bathurst, The Hon Mrs Rupert Soames and the Right Reverend John Stroyan have again served as Vice-Patrons. We are sincerely grateful to them all. The Trustee term of office policy meant that Mr Roger Wyatt stepped down in August. We are hugely grateful to Roger for the years he has been so actively involved as a Trustee.
Peter Charles Jinman OBE BVet Med DipArb MRCVS FC1IArb, FRAgS 20 February 1951—25 May 2023
Peter served as a Trustee and Chair of Trustees of Addington Fund for twelve years and was very much a hands-on member of the Board. Peter was as comfortable testing cattle for TB as in advising government on animal welfare policy. Peter lost a short but valiant fight against cancer, which robbed us of a very dear friend who is desperately missed by all his colleagues in the farming world and beyond.
Trustee appointment, induction and training
The Directors of the Charitable Company are also the Charity Trustees for the purposes of charity law. New trustees are briefed on their legal obligations under Charity and Company law, the contents of the Memorandum and Articles of Association, decision-making processes, the business plan and recent financial performance of the charitable company. During the induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate training events where these will facilitate the undertaking of their role. Indeed, all were offered and attended various online training courses through the year.
Trustees are elected for an initial four-year term and may be elected for up to an additional two periods of three years and a total of 10 years. For a serving current Chairman this can be extended.
Trustees are picked according to their skill sets to fill identified gaps in the knowledge of Trustees. It is important to the Fund that there is expertise in the key areas of farming, housing, planning, risk, law, land agency and finance. Furthermore, we need the business skills and compassion to administer and deliver to meet our clearly sighted goals.
Trustees
Mrs LJ Dibble PC Jinman OBE BVet Med DipArb (deceased 25 May 2023) S G Mountjoy DFM, FBIAC Mrs C Ryder MR Redfearn FIAgrM = (Interim Chairman) P Snodgrass MA (Cantab) (Secretary) RJ Wyatt (resigned 4 August 2022) Mrs C V Stevens EK C Murray-Clarke (appointed 7 September 2022) R Maunder (Retired 4 August 2022) Andrew Ward MBE (appointed 10 May 2023) Thomas Hind (appointed 10 May 2023)
No Trustee had any financial interest in the charity at any time during the year.
Risk management
The trustees have examined the major strategic, business, and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to
5
|
TRUSTEES' REPORT
lessen these risks.
Insurance
Insurance to cover the charity’s Trustees and officers against liabilities in relation to the charity is in place costing £1,253 with cover of up to £5m.
Fundraising standards
The Addington Fund carries out fundraising at farming events across the country throughout the year using its own staff and trustees. This is the only active fundraising that the charity performs and there is no use of professional fundraisers.
The charity is now regulated by the Fundraising Regulator which is the independent regulator of charitable fundraising in England, Wales and Northern Ireland.
Reserves policy
It is the policy of the charity to maintain unrestricted funds, which are free reserves of the charity. Considering the financial performance of the Fund over the last twenty-two years the Trustees consider a level of £100,000 to be prudent. This provides an adequate contingency to cover management and administration and support costs. Unrestricted funds above this level are designated for the Addington Fund Strategic Housing Scheme.
Investment policy
To be able to respond to needs instantly, a significant level of investments other than investment properties are held in short term cash deposits. Where possible the terms of deposit are adjusted to reflect the effects of the current financial market. The Governance & Resource subcommittee are responsible for overseeing the charity’s investments and both our investment managers, Brewin Dolphin and Epworth Investments, present to Trustees annually.
The Trustees’ Discretionary Fund Endowment Fund and NFU George Stephens Fund are held as blue-chip equities.
Key management personnel remuneration
The trustees consider the Board of Trustees and the Chief Executive as comprising the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis. All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note three to the accounts.
Trustees are required to disclose all relevant interests and register them with the Chief Executive and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.
The pay of the charity’s Chief Executive is reviewed annually and normally increased in accordance with average earnings.
Plans for the future
There is no such thing in our world as ‘business as usual’, although the trustees are confident in the ability of our small but dedicated team to continue to run the core activities of the charity. We are also very aware of the pressures on such a small team at times, while being conscious of the need to contain running costs. Accordingly we set goals that are realistic in the context of our financial and human resources.
Our goals are informed by our history and more recent experiences. Our financial performance is budgeted, and monitored, on a minimum of a quarterly basis. In that process the delivery of our charitable objectives, and the human resource available to deliver them, is also always considered.
We expect the demand for our rural housing schemes to continue at least at previous levels. Our ability to meet
6
TRUSTEES' REPORT
demand will, as ever, be constrained by our financial resources. While we have had a term loan facility available to us, the recent rise in the cost of borrowing has, in the opinion of trustees, deterred us from using the facility. Our below market rents are one factor but, even at full market rents, building or developing property on borrowed money on the scale on which we operate, is not a sound basis for expansion.
Our disaster relief work is a more nuanced issue. While our Trustees’ Discretionary Fund has significant headroom already, we find that the generosity of the farming and wider community come together to provide additional resources whena part of the farming industry is in dire need of support. This element of our work is in our DNA from our origins on Classical Swine Fever and Foot and Mouth Disease in 2000 and 2001 respectively.
Taking all these factors into account the trustees’ goals for the immediate future, and longer term, are:
-
e To maintain and raise the profile of Addington throughout England and Wales to make us attractive as a recipient of financial grants, legacies donations and sponsorships of all kinds. Such work is essential in order to provide the means with which to expand our work under all of our five channels of delivery.
-
To broaden our geographic footprint by acquiring and/or building retirement and affordable homes, as finances allow, in more and different counties.
-
e To be ina position to provide disaster relief — on whatever scale may be appropriate under particular circumstances — to individuals and communities throughout England and Wales.
-
e To create and offer affordable opportunities for young people to take their first steps on the farming ladder. e To engage with stakeholders and pariners of all kinds in order to help us achieve these goals
Organisation
The Addington Fund continues to operate from 9 Barford Exchange, Wellesbourne Road, Barford, Warwickshire CV35 8AQ.
The Trustees devolve responsibility for the day-to-day management of the Fund to the Chief Executive. The average monthly number of persons employed by the Charity during the year was five.
Small Companies’ Exemptions
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2016 relating to small companies.
Trustees’ responsibilities in relation to the financial statements
The trustees (who are also directors of Addington Fund for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the 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:
-
e Select suitable accounting policies and then apply them consistently; ° Observe the methods and principles in the Charities SORP 2015 (FRS102), ° Make judgements and estimates that are reasonable and prudent; ° State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
. 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 adequate accounting records that 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
==> picture [1 x 11] intentionally omitted <==
----- Start of picture text -----
|
----- End of picture text -----
7
TRUSTEES' REPORT
Statement as to Disclosure of Information to Auditors
The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees has confirmed that 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 it has been communicated to the auditor.
Approved by the trustees and signed on their behalf by: MW blueCA —— | Mr Martin Redfearn — Interim Chair
9 Barford Exchange Wellesbourne Road Barford Warwickshire CV35 8AQ
/ v4 - = Date AG [lz [2028
8
| |
| | : : j
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE ADDINGTON FUND
Opinion
We have audited the financial statements of Addington Fund (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incomin; resources and application of resources, including its result, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
Other information
The other information comprises the information included in the trustees' annual report2, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.
Opinion on other matters prescribed by the Companies Act 2006
-
In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements art prepared is consistent with the financial statements; and
-
the Report of the Trustees has been prepared in accordance with applicable legal requirements.
9
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ADDINGTON FUND (continued)
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept or returns adequate for our audit have not been received fron branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
- the trustees were not entitled to take advantage of the small companies exemption from the requirement tc prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, 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.
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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:
Enquiring of management and employees, including obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to:-
-
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance.
-
Detecting and responding to the risks of fraud and whether they were aware of any actual, suspected, or alleged fraud and.
-
The internal controls established to mitigate risk relating to fraud or non-compliance with laws and regulations.
We identified areas of law and regulation that could reasonably be expected to have a material effect on the financial statements from our general charitable sector experience, discussions with management (as required by auditing standards) and we discussed with management the policies and procedures regarding compliance with laws and regulations. The most significant considerations for the charitable company are the Charities Act, Companies Act 2006, tax legislation and employment laws.
All identified laws and regulations were communicated throughout the audit team, and they remained alert to any indications of non-compliance throughout the audit.
10
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ADDINGTON FUND (continued)
|
| |
Auditing standards limit the audit procedures to identifying non-compliance of these laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if there is any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, and audit will not detect the breach.
To identify risk of material misstatement due to fraud, we carried out discussions amongst the audit team to assess areas where and how fraud might occur in the financial statements and any potential indicators. The
following areas were identified :-
-
Management override of controls through the posting of inappropriate accounting entries or journals
-
Fraud risk relating the revenue recognition, although the recognition of rental revenue is straightforward with limited opportunity for manipulation. - Fraud risk due to the valuation of properties at the year end, this is minimised where a professional valuation has been obtained.
We tested the appropriateness of accounting journals and other adjustments made in the accounts preparation based ona risk criteria.
Owing to the inherent limitation of the audit , there is an unavoidable risk that we may not have detected some material misstatements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulation is from the events and transaction reflected in the financial statement, the less likely in the inherently limited procedure required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frce.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
==> picture [248 x 50] intentionally omitted <==
----- Start of picture text -----
f
J id,
i , Y a 3 ae A _ E.
Y ee i A an a
Mark Spafford FCCA ACA
----- End of picture text -----
Senior Statutory Auditor
For and on behalf of
Luckmans Duckett Parker Limited Statutory Auditor Chartered Accountants 1110 Elliott Business Park Herald Avenue Coventry CV5 6UB
Date |S77...0.24m 9 nm Lo ZZ
11
STATEMENT OF FINANCIAL ACTIVITIES INCOME AND EXPENDITURE) For the year ended 31 March 2023
| Unrestricted | Restricted | Endowment | 2023 | 2022 | ||
|---|---|---|---|---|---|---|
| funds | funds | funds | Total | Total | ||
| (as | ||||||
| restated) | ||||||
| Note | £ | £ | £ | £ | £ | |
| Income | ||||||
| Donations and legacies | 1,108,141 | 80,750 | - | 1,188,891 | 228,893 | |
| Income from charitable | ||||||
| activities | 488,397 | - | - | 488,397 | 468,107 | |
| Otherincome on raising funds | 46,572 | - | - | 46,572 | 19,265 | |
| Investment income | 24,088 | 17,723 | - | 41,811 | 28,697 | |
| Other income | - | - | - | - | - | |
| Total income | 1,667,198 | 98,473 | - | 1,765,671 | 744,962 | |
| Expenditure | ||||||
| Expenditure on raising funds | 1 | 39,670 | 12,783 | - | $2,453 | 39,006 |
| Charitable activities | 2 | 474,966 | 120,427 | - | 595,393 | 535,337 |
| Total expenditure | 514,636 | 133,210 | - | 647,846 | 574,343 | |
| Net income before investment gains | 1,152,562 | (34,737) | - | 1,117,825 | 170,619 | |
| Net (losses)/gainson investment assets | (1,047) | (3,149) | (1,398) | (5,594) | 1,428,038 | |
| Loan overage charge on revaluation | ||||||
| ofproperty | - | - | - | - | (29,318) | |
| Net (expenditure)/income | 1,151,515 | (37,886) | (1,398) | 1,112,231 | 1,569,339 | |
| Transfers between funds | 12 | 38,796 | (38,796) | - | - | - |
| Netmovement in funds | 1,190,311 | (76,682) | (1,398) | 1,112,231 | 1,569,339 | |
| Funds brought forward at 1 April | 13,369,317 | 1,478,033 | 156,340 | 15,003,690 | 13,434,351 | |
| Fundscarriedforwardat31March | 14,559,628 | 1,401,351 | 154,942 | 16,115,921 | 15,003,690 |
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised during the year.
12
STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE) For the year ended 31 March 2023
Analysis of restated comparative statement of financial activities
| Unrestricted | Restricted | Endowment | 2022 | |
|---|---|---|---|---|
| funds | funds | funds | Total | |
| (as | ||||
| restated) | ||||
| £ | £ | £ | £ | |
| Income | ||||
| Donations and legacies | 174,139 | 54,754 | - | 228,893 |
| Income from charitable | ||||
| activities | 468,107 | - | - | 468,107 |
| Other income on raising funds | 19,265 | - | - | 19,265 |
| Investment income | 13,386 | 15,311 | - | 28,697 |
| Total income | 674,897 | 70,065 | - | 744,962 |
| Expenditure | ||||
| Expenditure on raising funds | 34,935 | 4,071 | - | 39,006 |
| Charitable activities | 456,746 | 78,591 | - | 535,337 |
| Total expenditure | 491,681 | $2,662 | - | 574,343 |
| Netincome before investment gains | 183,216 | (12,597) | - | 170,619 |
| Net (losses)/gains on investment assets | 1,358,551 | 67,298 | 2,189 | 1,428,038 |
| Loan overage charge on revaluation | ||||
| ofproperty | (29,318) | - | - | (29,318) |
| Net (expenditure)/income | 1,512,449 | $4,701 | 2,189 | 1,569,339 |
| Transfers between funds | 20,500 | (20,500) | - | - |
| Netmovement in funds | 1,532,949 | 34,201 | 2,189 | 1,569,339 |
| Fundsbrought forward at 1 April | 11,836,368 | 1,443,833 | 154,151 | 13,434,352 |
| Fundscarriedforwardat31March | 13,369,317 | 1,478,034 | 156,340 | 15,003,691 |
13
SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 March 2023
==> picture [454 x 320] intentionally omitted <==
----- Start of picture text -----
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|(as|restated)|
|£|£|
|Gross|income|from|external|sources|
|-|Unrestricted|funds|1,667,198|674,897|
|-|Restricted|funds|:|98,473|70,065|
|1,765,671|744,962|
|Expenditure|484,730|$52,501|
|Interest|payable|-|7,230|
|Depreciation|less|book|profit|7,087|14,612|
|Total|expenditure|for|the year|647,846|$74,343|
|Net|income|for|the|year|before|profit|on|disposal|of investment|assets|1,117,825|170,619|
|Realised|profit/|(loss)|on|disposal|of investment|assets|(12,353)|(15,796)|
|Net|income|for the|year|1,105,472|154,823|
----- End of picture text -----
14
ADDINGTON FUND (Company number:4654186) BALANCE SHEET 31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| (as restated) | |||
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 5 | 245,308 | 252,394 |
| Investment properties | 6 | 13,209,131 | 12,653,938 |
| Other investments | 7 | 1,315,343 | 1,404,651 |
| 14,769,782 | 14,310,983 | ||
| Current assets | |||
| Debtors | 8 | 512,047 | 37,282 |
| Shortterm deposits | 587,334 | 879,855 | |
| Cash atbank and inhand | 332,311 | 260,056 | |
| 1,431,692 | 1,177,193 | ||
| Creditors: amounts falling due within one year | 9 | (85,553) | (299,844) |
| Net current assets | 1,346,139 | 877,349 | |
| Total assets less current liabilities | 16,115,921 | 15,188,332 | |
| Creditors: amounts falling due aftermore than year | 11 | - | (184,641) |
| Net assets | 16,115,921 | 15,003,691 | |
| Funds | |||
| Unrestricted funds: | |||
| - General funds | 12 | 100,000 | 100,000 |
| - Designated funds | 12 | 14,459,628 | 13,269,317 |
| Restricted funds | 12 | 1,401,351 | 1,478,034 |
| Endowment funds | 12 | 154,942 | 156,340 |
| 16,115,921 | 15,003,691 |
The trustees have prepared the financial statements in accordance with section 394 of the Companies Act 2006 and section 132 of the Charities Act 2011.
The accounting policies and notes on pages 15 to 25 form part of these accounts.
The financial statements were approved by the Board of Trustees and authorised for issue on .
==> picture [303 x 39] intentionally omitted <==
----- Start of picture text -----
r\y CL ,
Martin Redfearn — Interim Chair dy/ wi WES
----- End of picture text -----
15
STATEMENT OF CASH FLOWS For the year ended 31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| (as restated) | |||
| Note | £ | £ | |
| Cash flows from operating activities: | |||
| Net cash provided by (used in) operating activities | 14 | 621,592 | 132,831 |
| Cash flows from investing activities | |||
| Interest and dividends | 42,908 | 29,794 | |
| Proceeds from sale offixed assets | - | - | |
| Proceeds from the sale ofstrategichousing properties | 185,442 | 400,000 | |
| Purchase offixed assets | - | - | |
| Purchase ofstrategic housing properties | (662,419) | (388,073) | |
| Proceeds from sale ofinvestments | 250,139 | 46,041 | |
| Purchase ofinvestments | (264,808) | (640,126) | |
| Net cash provided by (used in) investing activities | (448,738) | (552,364) | |
| Cash flows provided by (used in) financing activities | |||
| Repayments of borrowing | (393,121) | - | |
| Cash inflows from new borrowing | - | - | |
| Net cash flows from financing activities | (393,121) | - | |
| Change in cash and cash equivalents in theyear | (220,267) | (419,533) | |
| Cash and cash equivalent brought forward | 1,139,912 | 1,559,445 | |
| Cash and cash equivalents carried forward | 919,645 | 1,139,912 | |
| Cash and cash equivalents consists of: | |||
| Cash atbank and in hand | 587,334 | 879,856 | |
| Shortterm deposits | 332,311 | 260,056 | |
| Cashandcashequivalentsat31March2023 | 919,645 | 1,139,912 |
16
| |
ADDINGTON FUND ACCOUNTING POLICIES
Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
The accounts present a true and fair view and no changes have been made to the accounting policies. No changes to accounting estimates have occurred in the reporting period.
No material prior year errors have been identified in the reporting period.
Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS102.
Funds
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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees out of unrestricted general funds for particular purposes.
Restricted funds — these are funds that can only be used for specific purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
The Endowment Fund represents those assets that must be held permanently by the charity. Income arising on the endowment fund can only be used in accordance with the donor’s wishes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Income
Recognition of income
These are included in the Statement of Financial Activities (SOFA) when:
- the charity becomes entitled to the funds - any performance conditions attached to the item(s) of income have been met - it is possible that the income will be received - the amount can be measured with reliably.
Income with related expenditure
Where income has related expenditure the income and related expenditure are reported gross in the SOFA.
Grants and donations
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to makea distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
17
|
ACCOUNTING POLICIES (continued)
Gifts in kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually received.
Tax reclaims on donations and gifts
Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate.
Volunteer help
The value of any voluntary help received is not included in the accounts.
Investment income
Interest on funds held on deposit is included when receivable. Dividends receivable are recognised when declared.
Investment gains and losses
This includes any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year. Realised and unrealised gains are not separated in the Statement of Financial activities.
Expenditure and liabilities
Liability recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
Governance costs
Include costs of the preparation and audit of the statutory accounts, the costs of Trustee meetings and cost of any legal advice to the Trustees on governance or constitutional matters.
Operating leases
Rentals payable under operating leases are charged to the SOFA as incurred.
Pension costs
The charity operates a defined contribution scheme. The amount charged to the Statement of Financial Activities in respect of pension costs is the contribution payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
Tangible fixed assets
Tangible fixed assets are capitalised at cost if they can be used for more than one year and cost at least £2,000.
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value over its expected useful life as follows:
Motor vehicles and trailers Over 4 years Office equipment Over 4 years Property ~ Buildings Over 50 years commencing the year after acquisition Property improvements — solar panels Over 10 years
Strategic Rural Housing Scheme Properties
The properties are valued professionally on a five-year cycle from the date of acquisition and in intervening years using an inflation index on the previous year’s values. Developments that have a buy back option clause based on cost with no deduction for grants received and building project properties in progress are valued at cost.
Fixed asset investments
Investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Investments in subsidiaries are measured at cost less impairment.
18
ACCOUNTING POLICIES (continued)
} | |
Debtors
Trade and other debtors are recognised and the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Short term deposits
Short term deposits with a maturity of six months or less at the balance sheet date.
Cash at bank and in hand
Cash and bank balances on demand.
Tax
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
19
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
| Unrestricted | Restricted | 2023 | 2022 | ||
|---|---|---|---|---|---|
| funds | funds | Total | Total | ||
| (as restated) | |||||
| £ | £ | £ | £ | ||
| 1 | Expenditure on raising funds | ||||
| Incurred seeking donations | - | - | - | - | |
| Staging fundraising events, etc. | 27,493 | 3,787 | 31,280 | 18,224 | |
| Publicity | 5,772 | 5,117 | 10,889 | 13,109 | |
| Portfolio management costs | 6,405 | 3,879 | 10,284 | 7,673 | |
| Total | 39,670 | 12,783 | 52,453 | 39,006 | |
| Unrestricted | Restricted | 2023 | 2022 | ||
| funds | funds | Total | Total | ||
| (as restated) | |||||
| £ | £ | £ | £ | ||
| 2 | Charitable activities | ||||
| Grants payable | |||||
| Grants and assistance payable to individuals | - | 98,458 | 98,458 | 77,061 | |
| - | 98,458 | 98,458 | 77,061 | ||
| Property portfolio expenses | |||||
| Property expenses, repairs, insurance and | |||||
| abortive costs | 85,789 | - | 85,789 | 80,245 | |
| Support costs | |||||
| Staffcosts | 289,911 | 20,000 | 309,911 | 281,851 | |
| Rent and rates | 2,000 | - | 2,000 | 1,782 | |
| Otherpremises costs | 5,221 | - | 5,221 | 6,401 | |
| Insurance | 1,768 | - | 1,768 | 1,617 | |
| Travel and subsistence | 34,553 | 1,521 | 36,074 | 28,891 | |
| Office costs | 15,015 | 448 | 15,463 | 13,940 | |
| Subscriptions | 3,432 | - | 3,432 | 1,810 | |
| Sundry expenses | 2,417 | - | 2,417 | 6,349 | |
| Professional fees | 9,785 | - | 9,785 | 1,289 | |
| Finance charges | 1,699 | - | 1,699 | 1,613 | |
| Interest payable | 3,903 | - | 3,903 | 7,230 | |
| Depreciation | 7,087 | - | 7,087 | 14,612 | |
| Governance costs | |||||
| Auditors' remuneration | 12,386 | - | 12,386 | 10,646 | |
| 389,177 | 21,969 | 411,146 | 378,031 | ||
| Total | 474,966 | 120,427 | 595,393 | 535,337 |
20
,
||
5
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
==> picture [456 x 159] intentionally omitted <==
----- Start of picture text -----
|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|(as|restated)|
|£|£|
|3|Staff costs|
|Wages|and|salaries|240,958|219,024|
|Social|security|costs|25,283|21,314|
|Pension|costs|31,664|30,554|
|Other|healthcare|costs|12,006|10,959|
|309,911|281,851|
|The|average|monthly|number|of|persons|employed|by|the|Charity|
|during the|year was:|6.00|5.00|
----- End of picture text -----
Re-imbursement of travelling, subsistence and related expenses paid to Trustees was £nil (2022-£nil). One employee received emoluments in the band of £100,001 to £110,000.
Two employees received emoluments in the bank of £60,001 to £70,000.
The key management personnel of the charity comprise the trustees and Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £103,100 (2022: £99,579).
==> picture [456 x 381] intentionally omitted <==
----- Start of picture text -----
||||||||||
|---|---|---|---|---|---|---|---|---|
|2023|2022|
|(as|restated)|
|£|£|
|4|Net|incoming|resources|are|stated|after|charging:|
|Depreciation|and|amounts|written|off tangible|fixed|assets|7,087|14,612|
|Auditors'|remuneration|-|audit|4,850|4,650|
|Auditors'|remuneration|-|other|services|7,536|5,996|
|5|Tangible|fixed|assets|Property &|Vehicles &|
|improvements|equipment|Total|
|£|£|£|
|Cost|
|1|April|2022|313,533|28,348|341,881|
|Additions|-|-|-|
|Disposals|-|-|-|
|31|March|2023|313,533|28,348|341,88]|
|Depreciation|
|1|April|2022|78,135|11,352|89,487|
|Eliminated|on|Disposals|-|-|-|
|Charged|in|the year|-|7,087|7,087|
|31|March 2023|78,135|18,439|96,574|
|Net|book value|
|31|March|2023|235,398|9,909|245,307|
|31|March|2022|235,398|16,996|252,394|
----- End of picture text -----
21
ADDINGTON FUND
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
==> picture [452 x 175] intentionally omitted <==
----- Start of picture text -----
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|(as|restated)|
|6|Strategic|Rural|Housing Scheme|Properties|£|£|
|64|properties|and|4|workshops|let|through|the|Strategic|Rural|Housing|
|Scheme|(2022-63|properties|and 4|workshops)|
|1|April|12,653,938|11,255,094|
|Additions|662,419|388,071|
|Disposals|(185,442)|(400,000)|
|Revaluation|gain|/|(loss)|78,213|1,410,774|
|31|March|13,209,128|12,653,938|
|Historical|cost of investments|held|at 31|March|10,999,652|10,492,849|
----- End of picture text -----
The properties are valued professionally on a ten-year (previously five-year) cycle at 31 March from the date of acquisition and in intervening years using an inflation index on the previous year’s values. Building project properties in progress are valued at cost.
==> picture [448 x 343] intentionally omitted <==
----- Start of picture text -----
|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Analysis|of valuation|
|Valued|in year ended|31|March|No.|of|Original|Re-valued|Indexed|value|
|Properties/|Cost|at|at year end|
|workshops|£|£|£|
|2015|4|466,979|511,155|729,286|
|2016|6|815,490|828,407|1,139,237|
|2017|1|149,365|151,919|185,621|
|2018|2|320,119|337,500|425,311|
|2019|28|4,640,097|4,391,211|5,447,609|
|2021|5|945,517|800,000|868,494|
|46|7,337,567|7,020,192|8,795,558|
|Properties|acquired|in|year|ended|
|2016|3|381,243|N/A|530,327|
|2017|4|411,300|N/A|531,437|
|2018|2|252,857|N/A|349,048|
|2019|4|656,230|N/A|836,017|
|2020|4|720,931|N/A|890,322|
|2021|1|219,033|N/A|238,929|
|2022|2|388,073|N/A|406,647|
|2023|2|632,419|N/A|630,843|
|Total|22|3,662,086|N/A|4,413,570|
|Total|at 31|March|68|10,999,653|N/A|13,209,128|
----- End of picture text -----
22
|
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
==> picture [464 x 275] intentionally omitted <==
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|2023|2022|
|(as|restated)|
|7|Other|investments|£|£|
|1|April|1,404,651|768,450|
|Additions|at|cost/market value|264,808|640,126|
|Disposals|(250,139)|(42,243)|
|Revaluation|gain/(loss)|including|interest|accrual|(103,976)|38,318|
|31|March|1,315,343|1,404,651|
|Historical/original|cost|of investments|held|at 31|March|
|including|interest|accrual|1,245,515|1,266,456|
|Analysis|of investments|£|£|
|Listed|investments|1,217,478|1,239,852|
|Cash held within|the|investment|portfolio|25,491|24,058|
|Unquoted|shares|2,545|2,545|
|Subsidiary|undertaking|1|1|
|31|March|1,245,515|1,266,456|
----- End of picture text -----
Subsidiary undertaking
The wholly owned subsidiary undertaking Addington Development Company Limited (ADC) was incorporated on 16 May 2017 in the United Kingdom (company number 10772372) and donates all of its profits to the charity. ADC acts as a development company for the charity’s Strategic Rural Housing Scheme. A summary of the trading results is shown below.
The summary financial performance of the subsidiary alone is:
==> picture [422 x 217] intentionally omitted <==
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|2023|2022|
|£|£|
|Turnover|(charged|to|charity)|-|-|
|Cost|of sales|and|administrative|expenses|-|-|
|Donation|to|Addington|Fund|-|-|
|Retained|in|subsidiary|-|-|
|The|assets|and|liabilities|of the|subsidiary|were:|
|Current|assets|4,009|5,370|
|Current|liabilities|(10,516)|(10,516)|
|Total|assets|(6,507)|(5,146)|
|Aggregate|share|capital|and reserves|(6,507)|(5,146)|
----- End of picture text -----
23
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| (as restated) | |||
| £ | £ | ||
| 8 | Debtors: | ||
| Due within oneyear | |||
| Tenant debtors | 5,035 | 2,770 | |
| Trade debtors | 2,074 | 3,175 | |
| Prepayments and accrued income | 487,489 | 13,663 | |
| Subsidiary undertaking | 10,016 | 10,016 | |
| Other debtors | 7,434 | 7,658 | |
| 512,048 | 37,282 | ||
| £ | _£ | ||
| 9 | Creditors: amounts falling due within one year | ||
| Accruals for grants payable | 2,996 | - | |
| Trade creditors | 21,000 | 17,012 | |
| Accruals and deferred income | 50,695 | 67,106 | |
| Taxation and social security | 9,863 | 6,244 | |
| Loan—Jersey Cattle Society (see note 11) | - | 200,000 | |
| Bank Loan | 1,000 | 9,482 | |
| Other creditors | - | - | |
| 85,554 | 299,844 | ||
| £ | £ | ||
| 10 | Deferred income | ||
| Balance brought forward | 28,672 | 31,197 | |
| Amountreleased in year | (28,672) | (31,197) | |
| Amount deferred in year | 34,161 | 28,672 | |
| 34,161 | 28,672 | ||
| Deferred income comprises rent, sponsorship and function income received in advance. | |||
| sl | Creditors: amounts falling due aftermore than oneyear | £ | £ |
| Secured loan - Jersey Cattle Society | - | 118,000 | |
| Secured loan—National Farmers Union | - | - | |
| Accrual ofsecured loan overage charge | - | 66,641 | |
| Other creditors | - | - | |
| - | 184,641 |
The secured loans are secured on the properties to which they relate.
The accrual of secured loan overage charge is the additional amount payable on redemption of the loans based on an agreed formula relating to the value of the property.
24
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
, )
;
==> picture [466 x 586] intentionally omitted <==
----- Start of picture text -----
|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Overage,|
|12|Statement|of funds|1|April|Gains/|Transfers|31|March|
|2022|Income|Expenditure|(Losses)|2023|
|(as|
|restated)|
|£|£|£|£|£|£|
|General|reserve|100,000|1,667,198|(514,636)|(509,214)|(643,348)|100,000|
|Designated|funds:|
|Fixed|asset|fund|252,394|-|-|-|(7,087)|245,307|
|Revaluation|reserve|2,150,342|-|-|-|46,102|2,196,444|
|Addington|Strategic|
|Housing|Scheme:|
|-|Investment|properties|9,714,448|-|-|508,167|-|10,222,615|
|-|Available|for|applications|1,152,133|-|-|-|643,128|1,795,261|
|Total|designated|funds|13,269,317|-|-|508,167|532,143|14,459,627|
|Total|unrestricted|funds|13,369,317|1,667,198|(514,636)|(1,047)|38,795|14,559,627|
|Restricted|funds:|
|Cheshire|Rural|Trust|24,707|-|-|-|-|24,707|
|Trustees’|Discretionary|345,096|16,772|(89,500)|-|(21,759)|250,609|
|NFU|George|Stephens|
|Trust Fund|152,063|32,201|(3,712)|(1,785)|-|178,767|
|Regional|Funding|65,893|26,500|(9,126)|-|(13,621)|69,646|
|Regional|Properties|778,401|-|-|(1,364)|-|777,037|
|Somerset Levels|88,458|-|-|-|-|88,458|
|Farming Help|-|25,000|(12,874)|-|-|12,126|
|Kenwyn|Affordable|-|-|-|-|-|-|
|Staffing|Costs-New Post|20,000|-|(20,000)|-|-|-|
|Covid-19|276|-|-|-|(276)|-|
|Welsh|Government|Dry|
|Weather|Grant|3,139|-|-|-|(3,139)|-|
|Total|restricted|funds|1,478,033|100,473|(135,212)|(3,149)|(38,795)|~—:1,401,350|
|Endowment|funds:|
|Trustees’|Discretionary|
|Fund|Capital|126,694|-|-|-|-|126,694|
|Queen|Victoria’s|Gift Fund|29,646|-|-|(1,398)|-|28,248|
|156,340|-|-|(1,398)|-|154,942|
|Total funds|15,003,691|1,767,671|(649,847)|(5,594)|-|16,115,919|
----- End of picture text -----
25
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
12 Statement of funds (continued)
The general reserve represents the free funds of the charity that are not designated for particular purposes.
The fixed asset fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of tangible fixed assets.
The revaluation reserve is required by the Companies Act 2006 and represents the amount by which investment properties and other investments exceed their historical cost. The Trustees, from experience gained during the Foot and Mouth epidemic of 2001/02, have designated the Addington Strategic Rural Housing Scheme for the purchase of property to be let to those who were employed in the agricultural and kindred industries and need accommodation asa result of having to retire from farming or leaving a non-viable business.
The Keepers’ Key Fund is to help gamekeepers who experience hardship in relation to housing needs.
Cheshire Rural Trust Funds are restricted to meet the hardship needs of families farming in Cheshire.
The Trustees’ Discretionary Fund was received following appeals arising from natural disasters affecting farmers and is used to maintain a constant ability to administer hardship grants that assist families who encounter unforeseen circumstances and are unable to find any other form of assistance. The fund includes gifts that are restricted to specific areas in Great Britain. During the year the trustees have reviewed this fund and undertaken an exercise to value the hardship grants provided to tenants via their discounted rental payments. The difference between 80% of the market value of rent and the amount actually charged to tenants has been retrospectively recognised as a hardship grant.
The NFU George Stephens Trust distributes income to disadvantaged families, respecting the wishes of the original settlor.
The Regional Fund holds monies donated to help families in specific counties and regions of England and Wales.
The Regional Properties Fund represents the investment properties acquired in the regions from restricted funds, the figure includes revaluation adjustments.
The Somerset Levels Fund having fulfilled any obligations relating to the flooding problems the current balance will be used to address housing needs in Somerset.
The Kenwyn Affordable, Trevorva New Build and Somerford Keynes Funds hold donations made specifically for projects in Cornwall and Gloucestershire.
Queen Victoria’s Gift Fund is held as an Endowment Fund and any interest generated is credited to the Restricted Trustees Discretionary Fund.
The Covid-19 Fund is held to assist farmers affected by Covid-19.
Welsh Government Dry Weather Grant is to help Welsh farmers in difficulties due to the dry weather.
The staffing costs fund is to help the charity with the cost of an additional employee.
The Farming Help fund is a grant provided by the Royal Countryside Fund to rebrand the Farming Help alliance including launching the new brand at regional shows, producing marketing equipment and funding publicity costs.
The charity has conducted a thorough review of its restricted funds and has been able to satisfy itself that the restriction attached to certain funds has been satisfied.
26
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
| 13 | Analysis ofnet assetsbetween funds | General | General | Designated | Restricted | Endowment | Endowment | |
|---|---|---|---|---|---|---|---|---|
| funds | funds | funds | funds | Total | . | |||
| £ | £ | £ | £ | £ | ||||
| Fund balances at 31 March 2023 are | ||||||||
| represented by: | ||||||||
| Tangible fixed assets | - | 245,308 | - | - | 245,308 | |||
| Investment properties | - | 12,432,094 | 777,037 | - | 13,209,131 | |||
| Other investments | - | 779,333 | 507,761 | 28,248 | 1,315,342 | |||
| Net current assets/(liabilities) | 100,000 | 1,102,892 | 116,553 | 126,694 | 1,346,139 | |||
| 100,000 | 14,459,627 | 1,401,351 | 154,942 | 16,115,920 | ||||
| 2023 | 2022 | |||||||
| (as restated) | ||||||||
| £ | £ | |||||||
| 14 | Reconciliation of net movement in funds | to | net cash | flow from | ||||
| operating activities | ||||||||
| Netmovement in funds | 1,112,231 | 1,569,340 | ||||||
| Add back depreciation charge | 7,087 | 14,612 | ||||||
| Addbackbook profiton disposal offixed assets | - | - | ||||||
| Deduct interest income shown as investing activities | (41,811) | (28,697) | ||||||
| Add back losses/(deduct gains) on investments | 27,156 | (1,452,889) | ||||||
| Addback loan overage charge on revaluation ofproperty | - | 39,975 | ||||||
| Decrease/(increase) in debtors | (477,260) | (2,495) | ||||||
| Increase/(decrease) in creditors | (5,811) | (7,014) | ||||||
| 621,592 | 132,832 |
15 Transactions with related parties
There have been no related party transactions in the year.
16 Financial Commitments
At 31 March 2023 the entity had financial commitments totalling £272,500 (2022: £nil).
17 Post-Balance Sheet Events
On 10 May 2023 the charitable company merged with Forage Aid.
27