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← The John Apthorp Charity

2023-12-31-accounts

Charity registration number 1102472

Company registration number 05004498 (England and Wales)

JOHN APTHORP CHARITY

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

JOHN APTHORP CHARITY

CONTENTS

Page
Council Members' report 1 - 3
Independent auditor's report 4 - 5
Statement of financial activities 7
Balance sheet 8
Statement of cash flows 9
Notes to the financial statements 10 - 14

JOHN APTHORP CHARITY

REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

The council present their annual report and financial statements for the year ended 31 December 2023.

Objectives and activities

The objectives of The Charity are helping the young, the old, the disabled and the general community in Hertfordshire, Bedfordshire and Cambridgeshire in England. This is done by the awarding of grants to organisations with charitable status.

Grant applications may be made by any organisation with charitable status operating in our catchment area and are considered by the Council on an individual basis. When setting grant making policy and awarding grants the Council pay due regard to The Charity Commission guidance on public benefit.

Achievements and performance

During the year grants totalling £387,352 (2022: £483,510) were awarded to 17 organisations. No grants awarded in previous years were refunded during the financial year (2022: £150,000). Grants awarded are detailed below:

Recipient Purpose £
Little Miracles Peterborough Towards a garden room 25,000
St Edmunds or St James Blunham Towards a level disabled access 3,000
St Anne with St Christopher Hall Luton Towards new doors to the boiler room and hall 3,470
The Ferry Project Wisbech Towards new windows at their homeless hostel 100,000
New Hope Watford Towards six new armchairs at their emergency
accommodation building 2,394
Goldington Reading and Recreation Rooms Towards replacement guttering and downpipes
at their hall 3,000
SMART Criminal Justice Systems Towards two defibrillators for their Bedford
centres 2,218
Level Trust Towards reconditioned laptops for disadvantaged
children 19,270
New Meaning Foundation Towards construction tools 3,600
CoFarm Towards hardstanding, two shipping containers
and coppiced chestnuts for their community farm 20,811
Luton Sea Cadets Towards a new shower block 22,010
Rowan Humberstone Ltd Towards equipment for their ceramic workshops
for disabled adults 20,275
Caritas Diocese of Salford Towards conversion of office space into
accommodation for homeless people 47,876
Beyond Detention Towards a new computerised data (CRM) system 10,157
Living it Up Towards a video camera, laptop and accessories
for courses for young people with learning
difficulties 1,578
Families United Towards new hoists and computers at their
centre for children with special needs 8,693
Potton Hall for All Towards their new community hall 94,000
Total 387,352

JOHN APTHORP CHARITY

REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

Under the Memorandum and Articles of Association, the charity has the power to make any investment the Council sees fit. During the year the Council decided to invest monies previously held in Treasury deposits to listed investments under the management of Charles Stanley & Co.

During the year the charity received investment income and interest of £377,776 (2022: £475,071). The charity awarded net grants of £387,352 (2022: £333,510).

Principal risks and uncertainties

The main risk facing the charity would be a drop in the income generated by the investments held. In these circumstances the charity would have to reduce the amount of grant awards made. The charity mitigates this risk by only awarding grants that can be met by available funds.

Reserves policy and going concern

It is the policy of the charity that unrestricted funds should be maintained at a level which will generate investment returns to meet annual grant allocation targets of £450,000 and ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

At 31 December 2023 the charity held free reserves of £11,054,086 (2022: £11,394,521) which met this target.

Plans for future periods

The Council of Management will continue to distribute the charity’s income through the awarding of grants to institutions. The focus in future years will be charitable organisations that work locally to the Trust.

Structure, governance and management

The charity is a governed by its Memorandum and Articles of Association.

The council members are appointed by existing members at the annual general meeting. Day to day management of the charity is delegated to K Arnold, a council member.

The Council met four times in the year to award grants and administer the charity.

None of the members of the Council of Management has any beneficial interest in the company. All of the members of the Council of Management are members of the company and guarantee to contribute £1 in the event of a winding up.

The Council has assessed the major risks to which the charity is exposed, and are satisfied that the systems are in place to mitigate exposure to the major risks.

JOHN APTHORP CHARITY

REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Reference and administration details of the charity, its trustees and advisers

Summary Limited changed its name to The John Apthorp Charity on 20 November 2011. The charity was registered as a company limited by guarantee (no: 5004498) on 30 December 2003 and as a charity in England and Wales (no: 1102472) on 4 March 2004.

The registered address of the charity is Egale 1, 80 St Albans Road, Watford, Hertfordshire, WD17 1DL.

The members of the Council of Management, who are directors under company law and trustees under charity law, who served throughout the year and up to the date of this report were:

J D Apthorp CBE (Resigned 7 July 2024) K Arnold (Secretary until 17 August 2024) D M Apthorp C H J Apthorp (Secretary from 17 August 2024)

Statement of council members' responsibilities

The Council of Management is responsible for preparing the accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Council of Management to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resource, including its net income and expenditure for the year.

In preparing those financial statements, the Council of Management is required to:

The Council of Management is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with section 487 of the Companies Act 2006, a resolution proposing that Myers Clark be reappointed as auditors of the company will be put to the Annual General Meeting.

The council members' report was approved by the Board of Council.

K Arnold

Council member Dated: 16 September 2024

JOHN APTHORP CHARITY

INDEPENDENT AUDITOR'S REPORT TO THE COUNCIL OF JOHN APTHORP CHARITY

Opinion

We have audited the financial statements of John Apthorp Charity (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 council members' 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 council 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 annual report other than the financial statements and our auditor's report thereon. The council are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

JOHN APTHORP CHARITY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE COUNCIL OF JOHN APTHORP CHARITY

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 directors’ report included within the report of the council of management.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of council

As explained more fully in the statement of council members' responsibilities, the council, who are also the directors of the charitable company for the purpose 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 council 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 council 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 council either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following;

JOHN APTHORP CHARITY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE COUNCIL OF JOHN APTHORP CHARITY

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty.

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 and part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's 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.

Paul Windmill (Senior Statutory Auditor) for and on behalf of Myers Clark Chartered Accountants Statutory Auditor

18 September 2024

JOHN APTHORP CHARITY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Income and endowments from:
Investments
3
Other income
2
Total income
Expenditure on:
Grants
4
Administration fees
Audit services
Other services
Professional fees
Investment management
Total expenditure
Net gains/(losses) on investments
5
Net movement in funds
Fund balances at 1 January 2023
Fund balances at 31 December 2023		 2023
£
377,776
150
377,926
(387,352)
(769)
(2,820)
(1,614)
(2,580)
(230)
(395,365)
(322,996)
(340,435)
11,394,521
11,054,086		 2022
£
475,071
-
475,071
(333,510)
(1,050)
(2,700)
(1,482)
-
(230)
(338,972)
(1,714,402)
(1,578,303)
12,972,824
11,394,521

The notes on pages 9 to 13 form part of these financial statements.

JOHN APTHORP CHARITY

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Investments
5
Current assets
Debtors
6
Cash at bank and in hand
Creditors: amounts falling due within
one year
7
Net current assets
Total assets less current liabilities
Income funds
~~Unrestricted funds~~
Designated revaluation reserve
8
General unrestricted funds		 2023
£
£
10,758,883
40,067
261,336
301,403
(6,200)
295,203
11,054,086
3,464,438
7,589,648
11,054,086
11,054,086		 2022
£
£
11,082,109
176,584
139,788
316,372
(3,960)
312,412
11,394,521
3,710,394
7,684,127
11,394,521
11,394,521		 2022
£
£
11,082,109
176,584
139,788
316,372
(3,960)
312,412
11,394,521
3,710,394
7,684,127
11,394,521
11,394,521
11,394,521
11,394,521
11,394,521

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of the accounts

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with FRS 102 SORP.

The financial statements Approved by the Council of management on 16 September 2024 and signed on their behalf by:

K Arnold

Council Member

C H J Apthorp Company Secretary

Company Registration No. 05004498

JOHN APTHORP CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
13
Investing activities
Purchase of investments
Proceeds on disposal of investments
Dividends and interest from investments
Cash invested
Income re-invested
Charges paid
Net cash generated from investing
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
Relating to:
Cash at bank and in hand		 2023
£
-
-
377,776
-
-
230		 2022
£
£
(256,458)
(1,507,408)
1,300,096
475,071
(300,000)
207,089
230
378,006
121,548
139,788
261,336
261,336		 £
(515,806)
175,078
(340,728)
480,516
139,788
139,788

JOHN APTHORP CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements are prepared in accordance with the Statement of Recommended Practice: Accounting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102) effective 1 January 2019 (SORP FRS 102) and the Financial Reporting Standard applicable in the UK and Ireland and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern.

1.2 Income recognition

Income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations and other voluntary forms of income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by investment managers of the receipt of the dividend.

1.3 Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on the accruals basis.

Grants payable are payment made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant. Grants awarded that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to the grant is outside the control of the charity. Provisions for grants are made when the intention to make the grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount payable.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.4 Investments

Investments are held for the purposes of the generation of income for future grant payments and are stated at market value at the balance sheet date. Any gain or loss on revaluation is taken to the statement of financial activities.

JOHN APTHORP CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2
Other income
Other income
3
Investment income
Listed investments:
Held within the UK
Held outside the UK
4
Grants payable
Grants awarded in the year to instutions
Grants refunded from institutions		 2023
2022
£
£
150
-
2023
2022
£
£
375,459
472,623
2,317
2,448
377,776
475,071
2023
2022
£
£
387,352
483,510
-
(150,000)
387,352
333,510

For further details of the grants awarded see page 1 in the Report of the Council of Management.

JOHN APTHORP CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Fixed asset investments

Market value at 1 January 2023
Cash invested
Charges paid
Cash received
Movement in realised and unrealised gain
Market value at 31 December 2023
Historical cost at 31 December 2023
Held within the UK
Held outside the UK		 2023
£
11,082,109
-
(230)
-
(322,996)
10,758,883
7,073,946
10,722,999
35,884
10,758,883		 2022
£
12,496,518
300,000
(230)
223
(1,714,402)
11,082,109
7,073,946
11,041,874
40,235
11,082,109

Individual holdings which comprised more than 5% of the total market value were as follows:

2023 2022
£ £
Severn Trent 97p shares 1,289,500 1,325,500
Experian 10c shares 1,601,000 1,406,500
Diageo 28p shares 1,428,000 1,825,000
Prudential 5p shares (<5% in 2023) - 563,750
Compass Group 11.05p shares 1,073,000 958,750
Beazley Plc 0.05p shares (<5% in 2023) - 679,500
Land Securities Group 0.106666666p shares 704,800 621,400
Tate & Lyle 0.2916666667p shares 659,000 711,200

6 Debtors

Debtors
Other debtors
Prepayments and accrued income		 2023
£
-
40,067
40,067		 2022
£
150,000
26,584
176,584

JOHN APTHORP CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other creditors
Accruals		 2023
£
2,000
4,200
6,200		 2022
£
-
3,960
3,960

8 Designated funds

Balance at 1 January
Add: Movement in unrealised gains
Balance at 31 December		 2023
2022
£
£
3,710,394
5,261,216
(245,956)
(1,550,822)
3,464,438
3,710,394		 2023
2022
£
£
3,710,394
5,261,216
(245,956)
(1,550,822)
3,464,438
3,710,394
3,710,394

9 Trustees remuneration

None of the Council of Management received any remuneration or reimbursement of expenses in the year (2022: none).

10 Grant commitments

No grant awards have been approved for future years (2022: one grant of £94,000 was approved for future years).

11 Related party transactions

No related party transactions occurred during the year.

12 Auditor’s Ethical Standards

The relevant circumstances requiring disclosure in accordance with the requirements of APB Ethical Standard – Provisions Available for Small Entities are that, in common with many charities of our size and nature we use our auditors to assist with the preparation of the accounts.

JOHN APTHORP CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13
Cash generated from operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Cash absorbed by operations		 2023
2022
£
£
(340,435)
(1,578,303)
(377,776)
(475,071)
322,996
1,714,402
136,517
(174,484)
2,240
(2,350)
(256,458)
(515,806)