Company registration number: 05402303 Charity registration number: 1109141
## Bristol Charities
(a company limited by guarantee)
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2023
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|---|---|
|TABLE OF CONTENTS|
|Page|
|Reference and Administrative Details|2|
|Message From the CEO|4|
|Mission Statement and Values|5|
|Charity Structure|6|
|Trustees’ Report|7|
|Statement of Trustees’ Responsibilities|17|
|Independent Auditor’s Report|18|
|Consolidated Statement of Financial Activities|22|
|Consolidated Balance Sheet|23|
|Company Balance Sheet|24|
|Consolidated Statement of Cash Flows|25|
|Notes to the Financial Statements|27|
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Reference and Administrative Details
## Trustees
Richard Gore BA (Joint Hons) (Chair)[(1, 2, 3, 5, 6)] Paul Staples* FCA, BSc (Hons) (Vice Chair)[ (1, 2, 4, 6)] Michelle Meredith**[(3)] Jonathan O'Shea*** FCCA, BSc (Hons)[ (1, 2, 4, 6)] Nolan Webber BA (Hons), Chartered FCSI[ (1, 2, 4, 5)] Rachel Howell MA, MSc, CPsychol, AFBPsS[(1, 3, 5)] Andy Mennell BA, MSc, CIHCM[(2, 6)] Olivia Spencer BA, BSc, RIBA (retired)[(1, 3, 4)] Keith Low BSc (Hons) MRICS[(1)] Elizabeth Carrington-Porter Cert Mgmt. (Open)[(3, 4)] Ian Dunn BA (Hons)[(1, 4)] Keith Hicks**** BTech (Hons)[ (1, 2, 3, 4, 5) ] Karen Jones***** FCCA, CMIIA[(1, 2)]
* Resigned 22 September 2022 ** Retired 27 January 2023 *** Resigned 26 September 2022 **** Appointed 21 September 2022 ***** Appointed 10 February 2023
- (1) Member of Assets & Finance Committee (2) Member of Audit & Health and Safety Committee (3) Member of Grants Committee (4) Member of Investment Management Group (5) Member of Nominations Committee (6) Member of Remuneration Committee
Patron Mary Prior MBE
CEO and Company Secretary Anne Anketell BA (Hons) (until 2 May 2022) Julian Mines BA (Hons), PGCE (from 3 May 2022)
Principal & Registered Office The Vassall Centre Gill Avenue Fishponds Bristol BS16 2QQ
Telephone: 0117 930 0301 Email: info@bristolcharities.org.uk Website: www.bristolcharities.org.uk
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Reference and Administrative Details (continued)
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|---|---|
|Property Advisers|Alder King LLP|
|Pembroke House|
|15 Pembroke Road|
|Bristol BS8 3BA|
|Investment Managers|Evelyn Partners|
|Portwall Place|
|Portwall Lane|
|Bristol BS1 6NA|
|Auditors|Bishop Fleming LLP|
|10 Temple Back|
|Bristol BS1 6FL|
|Bankers|Handelsbanken|
|66 Queen Square|
|Bristol BS1 4JP|
|Legal Advisers|Womble Bond Dickinson LLP|
|3 Temple Quay|
|Temple Back East|
|Bristol BS1 6DZ|
|Veale Wasbrough Vizards LLP|
|Narrow Quay House|
|Narrow Quay|
|Bristol BS1 4QA|
**----- End of picture text -----**
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Message from the CEO
Welcome to Bristol Charities’ financial statements and annual report. 2022-23 was a year of change for the charity. Some of this change was forced upon us by changes in the landscape in which we operate, but most was a result of an ambitious vision for the charity.
Amid a cost-of-living crisis and facing unprecedented demand for individual grants, the charity adopted a total return approach to its permanent endowments during the year. This bold decision taken by our Trustees has allowed the charity to increase the depth and breadth of its grant programmes and to pump-prime community transformation work in priority areas within the city of Bristol.
2022-23 was also the first full year of the charity’s ownership and operation of the Vassall Centre in the Fishponds area of the city. The charity migrated its operational base to the Centre during the year and this has been a pivotal development in the life of Bristol Charities.
Long-term plans for the redevelopment of the Centre site were considered favourably by Bristol City Council’s Planning Committee in May 2023 and we are working towards achieving full planning permission in autumn 2023. In the shorter term we have been successful in securing seed-funding to create a Community Hub within the Centre. This will launch in earnest in September 2023 and will, we hope, be the first of several place-based community programmes that the charity establishes over the coming months and years.
We have also begun to weave a community thread more deeply into our housing schemes during the year. We have been able to open the buildings’ doors to the wider neighbourhoods and welcome in visitors to excellent events, notably for the King’s Coronation, an Open Day at Haberfield House, and our 10[th] Anniversary celebrations at Cwrt William Jones.
Thanks and gratitude must go to our partners and friends at other charities based at the Vassall Centre who have helped us make our home there and who have begun to work with us in meeting head-on the challenges faced by vulnerable people within our city, our communities, and our housing schemes.
I am hugely optimistic about the ability of Bristol Charities to make sustainable positive transformation moving forward, and I look forward to leading the team as we press into that.
## JULIAN MINES
CEO
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Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Mission Statement & Values
This is the mission statement for the Bristol Charities Group.
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
Charity Structure The charity is structured as follows:
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report Our Achievements and Performance
## Progress against our Objectives
Following the appointment of a new CEO in May 2022 the Trustees and Senior Leadership Team were able to review strategic plans in June 2022 the light of changing and current socio-economic and Voluntary Sector environments and to refocus the Charity’s priorities and work.
From this review, the CEO brought forward an interim plan that would manage the Charity through a period of change and achieve the following:
1. Reposition – building new narratives that will change perceptions, raise awareness, and secure long term supporters for the charity’s work.
- 1.1. Communications Manager appointed.
- 1.2. Communications plan, collateral, and platforms in development.
- 1.3. Strong partnership opportunities emerging – Frome Vale Academy, Oldbury Court Children’s Centre.
- 1.4. Awareness of the work around Vassall Centre growing.
2. Ensure our Housing services continues to deliver high quality housing provision through our existing homes, with high levels of compliance, high resident satisfaction, and financial viability.
- 2.1. A new Housing Team and structure has been established and delivering improved levels of support resulting in high levels of resident satisfaction.
- 2.2. Levels of void losses and arrears improving through rigorous management and timely recruitment by the team.
- 2.3. Improved levels of resident engagement achieved including developing a range of resident activities.
3. Ensure we are financially secure for the future and that we can continue to re-invest in our services, innovation, improvement and in our people.
- 3.1. A Total Return approach to permanent endowment funds was adopted during the year, bringing flexibility and agility of financial approach to operations.
- 3.2. Funds earmarked for future capital development of housing assets set aside and invested to earn a return to contain cost inflation.
- 3.3. Deposit strategy developed to generate a return on cash balances.
4. Transformation & Innovation – develop new ways of working (Hubs) and deliver community transformation work where the Charity has a presence (Vassall Centre or Housing Schemes) that will inform future development.
- 4.1. Early work delivered through Welcoming Space at the Vassall Centre.
- 4.2. Early food poverty activities delivered e.g., Christmas Hampers, on-site café, support for the local Food Club
- 4.3. Summer & Christmas fayre with high levels of community participation. 4.4. Early work on reshaping grant making around a targeted Family Support Project.
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Trustees’ Report (continued)
5. Develop plans for the redevelopment of the Vassall Centre that secures the support of key stakeholders and result in achieving planning permission.
- 5.1. The second round of Public Consultations completed in May 2022.
- 5.2. Improved stakeholder engagement, particularly amongst local groups and tenants achieved resulting higher levels of support for the plans.
- 5.3. The Project Design Team managed towards achieving the submission of a planning application by July 2022.
- 5.4. Improved on-site support/services to tenants and local community engagement including cost-of-living support to the local neighbourhood.
6. Maintain our grant making programme, incorporating improvements that could inform future development and growth.
- 6.1. Grants for individuals to combat appliance poverty maintained throughout the year with early work completed to improve/re-shape/improve the impact of this programme.
- 6.2. No awards were made from the Barry T Jones Fund (Education) allowing for an extensive review of the programme and new plans developed to improve how grants are awarded and impact.
7. Build the infrastructure that will effectively manage the organisation through change and allow it to deliver sustainable growth in charitable activity.
- 7.1. Housing Team restructured under new leadership with clear focus on improving resident engagement and satisfaction, improving facilities management, and reducing arears and voids.
- 7.2. Established a Community Team to improve local community engagement and deliver impact in areas of high deprivation where Bristol Charities has a presence.
- 7.3. Recruited a dedicated Grants Officer to support the development and growth of the grant making programme.
- 7.4. Engaged in early fundraising activity to support and sustain new community projects.
- 7.5. Developed Senior Leadership Team with the capacity to develop the Charity’s work and manage sustainable growth.
- 7.6. Relocated the Head Office and Team to the Vassall Centre with improved facilities and capacity for growth.
8. Create a new strategic plan that would allow the Charity to transition towards a refocussed vision with opportunities to develop new ways of delivering against its mission and achieving growth in its impact.
- 8.1. An interim plan was brought forward in September 2022 to establish a platform for change and future growth.
- 8.2. This early work and interim plan were reviewed by Trustees in March 2023 and a 1- year strategic plan for 2023-24 was approved (see Looking Forward below).
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report (continued) Looking Forward
## Strategic Plan for 2023-24
A one-year plan was agreed to establish early innovation and transitions from the previous year that will carefully manage change and risk, creating a viable platform for long term planning and delivery from April 2025, with the following strategic objectives:
## COMMUNITY DEVELOPMENT
1. Establish The Vassall Centre as the local Community Anchor Organisation (CAO) in Oldbury Court and Ward of Frome Vale.
2. Develop a Family Support project through re-designing the grant making programme that can impact wellbeing in terms of their family life, housing, learning and health.
3. Develop and launch the Community Hub with a range of services and activities aimed at supporting the local neighbourhood.
4. Develop Community Hub FOOD PROJECTS including a Food Poverty Network and in line with the Bristol Food Equality Strategy.
5. Develop Bristol wide community development/charitable work, including working with other CAO’s and early work in Brentry/Henbury and Stockwood.
6. Redevelop the GRANTMAKING PROGRAMME to align with our local and Bristol-wide community development plan.
## CORPORATE SERVICES
1. Ensure that financial resources, structures, budgets, and reporting support the charity’s new and existing areas of operation so that resources can be appropriately allocated and analysed.
2. Create and maintain an exceptional centralised HR function to support the recruitment, retention, health, and wellbeing of a highly skilled and motivated staff complement.
3. Design and build a refreshed suite of software and systems that are growth-ready, and which assist departmental, intra-departmental and administrative operations.
4. Embed the Vassall Centre as the charity’s head office and ensure that office management, infrastructure, staffing complement and relationships with partner tenants are settled and well-understood.
5. Reinvigorate the charity’s governance structures to incorporate newly recruited Trustees and develop committee structures which align to the charity’s operations, both now and in the future.
6. Ensure the charity complies with and manages all regulations covering its legal status (charity and company) and operations, including social housing, fundraising, accounting, HR, and property, data/information.
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Trustees’ Report (continued)
## HOUSING & SUPPORT FOR OLDER PEOPLE
1. Maximise the financial viability and operational effectiveness of Bristol Charities housing for older people, delivering both financial returns and social impact.
2. Determine strategic approach to Housing for Older People (HfOP) and Extra Care Housing (ECH) and restructure the charity’s operations around optimum provision (including stakeholder interests).
3. Establish our Housing Schemes as ‘community hubs’ connecting our residents and facilities with the local community to impact both our resident communities and local neighbourhoods.
4. Design and deliver services that will enhance our resident’s welfare, wellbeing, and experience of being a Bristol Charities resident, leading to higher levels of satisfaction.
5. Build and develop the staff structure and team that are motivated and committed to deliver against the Charity’s mission and values and able to achieve its objectives.
## THE VASSALL CENTRE MANAGEMENT & DEVELOPMENT
1. To relaunch the Vassall Centre as a stand-out, accessible, and affordable, workspace and meeting/events venue, particularly for third sector and local organisations.
2. Ensure the Vassall Centre is fit-for-purpose in terms of the Centre’s fabric, services, maintenance, safety, and operation, within budget.
3. Build an on-site ‘community’ that enhances the management of the Centre, improves the experience of tenants, and deliver impact to the on-site, visitor, and local communities.
4. Create a place-based programme of events, activities, facilities, and services that supports and enhances Bristol Charities community development work in Frome Vale both as a Community Anchor Organisation and Community Hub.
5. Enhance the vision-shaping, planning, and delivery of the long-term redevelopment of the Vassall Centre, securing the engagement and support of the on-site and local communities.
## Trustee Recruitment
Trustee candidates are recruited based on the skills, experience and knowledge that will be needed on the Board. The Nominations Committee undertakes a regular skills analysis to identify gaps on the Board. Any recruitment campaigns focus on the specific skills and experience required to fill those gaps. Two new Trustees was appointed during the period covered by this report.
The charity has a role description for the Trustee and Chair posts and the recruitment pack is updated annually. Applicants have the opportunity to meet the Chair and the Chief Executive before being interviewed by two members of the Nominations Committee. Recommendations to appoint are then made by the Nominations Committee to the Board.
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report (continued)
## Training, Induction and Appraisal of Trustees
New Trustees take part in a structured Induction Programme, attending meetings with key staff and other Trustees, visiting projects and sites and are encouraged to attend all committees to really get an understanding of the work of the charity.
Trustees are sent information on a regular basis on training courses and briefings. The CEO report on the Board of Trustees’ meeting agenda provides updates on policy/legislation changes. Trustees who have attended training are encouraged to share knowledge with fellow Trustees.
There is a Trustee appraisal policy and procedure in place. The Board of Trustees is committed to assessing its own performance as a Board in order to identify its strengths and areas in which it may improve its functioning. An evaluation process is carried out every two years. Trustees recognise that effective leadership and good decision making is enabled though a diverse board membership and a culture of listening to and acting on diverse perspectives. The Board’s aim is to focus on bringing strength to the charity by increasing diversity.
## Public Benefit
The objects and aims of Bristol Charities are contained in the company’s Memorandum of Association. Bristol Charities’ mission is to provide opportunities and support for people and communities to improve lives through grants, housing and charitable projects. We make a difference to the people and communities we work with by supporting older people to live independently. Our work ranges from the provision of accommodation and services for older people to the distribution of grants to those most in need. The Trustees have considered the Charity Commission guidance on public benefit from section 17 of the Charities Act 2011. We believe that the work of Bristol Charities has directly benefitted people by:
- Providing excellent, purpose-built accommodation through our four almshouses, each one offering on-site support and a safe community setting for older, vulnerable people
- Supporting people to connect with their communities, take part in activities, increasing their wellbeing and reducing loneliness and isolation
- Providing grants to support individuals and families living in crisis or hardship when there is nobody to help
The Trustees’ Report section (pages 7 - 10) sets out the aims and strategies of the charity and demonstrates how the aims and activities of the charity during the year were carried out for the Public Benefit.
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report (continued)
## Grant Making Policy
Bristol Charities is a charitable grant making trust. It has four main areas of charitable funding:
a) Relief in Need (including Community Chest Funds)
b) Relief in Sickness and Disability
c) Relief of Carers
- d) Educational Funds for the Advancement of Education
The principles which underpin the Trustees’ governance of the charity’s grant-making consider the scale of the grant related activity and strike a balance between direct involvement in decisions, and efficient, responsive customer service for applicants. The governance principles are as follows:
- The Board of Trustees has ultimate responsibility for all grant-making decisions in line with the Charity’s objectives, purposes and priorities for the time being, and any restrictions agreed with donors and funding partners
- The Trustees may give certain decision-making responsibilities to its standing Committees, Board members or to the CEO within its framework of delegation
- All Trustees understand the Charity’s grant-making principles and processes and have opportunities to engage in and learn from grant making activities There are grant-making criteria to provide clear information from the Trustees to those individuals and groups who want to apply for grants. The Board has delegated responsibility to its Grants committee to review the criteria from time to time and, if necessary, to amend or update them.
## Pay Policy for Senior Staff
The Board of Directors, who are the charity’s Trustees, along with the Senior Management Team comprise the key management personnel of the charity in charge of directing and controlling the charity. The Senior Management Team are delegated responsibility for the running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. The pay of the senior management team is reviewed annually by the Remuneration Committee.
## Risk Management
The Board of Trustees assess risk annually with additional operational and financial risk assessment through delegation to the relevant committee and to the Audit & Health and Safety Committee. It oversees its responsibility through its review of the effectiveness of the charity’s Risk Framework. This framework is designed to support informed decision-making regarding the risks that affect the charity’s performance and its ability to achieve its objectives. Management of risk is embedded into our day-to-day activities and wellestablished processes and policies are in place to manage them. All our employees have a role in reducing risk through our internal control framework.
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report (continued)
Risks are recorded in a risk register and are evaluated in terms of impact and likelihood. The register also provides for a consistent approach to identifying assessing and dealing with the risks facing the charity to ensure they do not exceed the level of risk the charity is willing to assume. The register is designed to manage, rather than eliminate, the risks to the charity’s objectives and to provide reasonable, but not absolute mitigation of these risks. The Audit and Health & Safety Committee bi-annually reviews the results of the risk reviews undertaken by management and approves an annual risk-based internal audit plan which covers the major risks identified.
## Principal Risks and Uncertainties
Trustees and staff have, during the year, reviewed the following principal risks to the charity:
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Risks: Management Actions
A lack of suitable Detailed Due diligence undertaken pre-acquisition of the
financing (amount or Vassall Centre site
cost) makes the next Long term financial modelling completed
development project Board scrutiny and approval
unviable and has a Specialist financing advisers appointed to advise on
detrimental impact on financing options
charity reserves Stretch of development programme to accommodate
changing economic environment
High rates of inflation are Significant inflation allowances built into budget scenarios
suffered on the charity’s Contingency lines also included in budget scenarios
costs (capital and Cost inflation contained as far as possible through
revenue), reducing inflationary increases to weekly housing charges
margins and yields on Long term utilities contracts entered into at fixed prices
capital investment.
Death, harm or injury of a Management minimum quarterly review of accidents and
resident, service user, incidents
staff member or member Six-monthly review of accidents and incident reports by
of the public resulting the Bristol Charities Audit & HS Committee
business interruption. Comprehensive suite of policies and procedures in place
Mandatory training modules for all staff
Risk assessments undertaken for all assets and activities
Restructure of housing Staff structure now gives floating structure but with staff
staff team impacts having a “home” scheme
negatively on service Robust induction and training processes for new staff
delivery resulting in Clear cover arrangements now in place
resident dissatisfaction
Security of IT accounts Annual programme of works in conjunction with our IT
could be compromised, support providers
resulting in corruption of Achieving and maintaining an industry-recognised cyber
business processes and security standard
unauthorised access.
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Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Trustees’ Report (continued)
Actions to mitigate these risks have been developed and progress on these actions monitored regularly at both Board and senior team level. Trustees are satisfied that these mitigating actions have reduced the following risks to an acceptable level.
## Financial review
The Bristol Charities Group reported incoming resources in the year of £2,332,627 (2022: £2,100,717). The deficit for the year was £911,506 (2022: surplus of £85,807). The reported deficit for the year is driven by investment valuation losses of £824,807 (2022: gains of £178,640).
## i) Housing services
Total group income from housing operations for the year, including allocated investment income, was £1,782,279 (2022: £1,689,491) and total expenditure on housing services, including allocated investment management expenditure, was £2,184,121 (2022: £1,745,767), giving a deficit for the year of £401,842 (2022: £56,276).
The deficit for the year includes a £389,049 net deficit on housing endowment funds which arises from depreciation of housing assets. A deficit on unrestricted housing funds of £12,793 was realised for the year. £172,000 of unrestricted funds was earmarked for sinking funds.
Haberfield House had an overall void rate of 6.5% for the year but performance improved markedly over the year. Void levels for the second six months of the year were 4.7% compared to a figure of 8.4% for the first six months. There have been encouraging trends on voids since the year end, with void levels dropping to around 3%. Occupancy at other schemes remains high.
2022-23 represents the third full year that a planned preventative maintenance arrangement has been in place with Alder King LLP. The arrangement has a break clause at the end of March 2024 but the Trustees has already taken the decision to extend this arrangement by a further year.
## ii) Grants
Individual grants totalling £273,271 (2022: £211,515) and organisational grants totalling £89,649 (2022: £90,374) were awarded during the year, giving total grant awards for the year of £362,960 (2022: £301,889). The year-on-year increase in total grant awards arises directly as a result of the increase in investment returns year-on-year.
## iii) Investments
The group’s investment policy is noted in the accounting policies on pp. 33 - 34. During the period the Trustees have delegated management of the group’s investments, excluding investment property, to Evelyn Partners.
The withdrawal from Baring’s Targeted Return Fund in the prior year resulted in a liquidation of c. £6.6m in cash. This cash was then fed into markets over a number of months by Evelyn Partners, in line with their own policies and market assessments. The consequence of this approach was a tranche of cash being out of the market for period of time in the prior year, awaiting investment. As a result, investment income for that year was reduced by c. 25% compared to a typical year. There was no such effect on 2022-23 investment returns.
Economic uncertainty caused by global inflation levels has impacted upon investment valuations during the year. However, investment values remain well above their low points experienced during the Covid-19 pandemic.
During the year the Trustees elected to adopt a Total Return approach to permanent endowment funds. As part of this process, the charity’s investment policy statement changed from one based on income targets, to one based on total return targets. The target return for
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report (continued)
## iii) Investments (continued)
investments is now set at CPI + 3%, measured over a five year basis period. The Trustees are confident that this target will be met when measured over a market cycle.
The adoption of Total Return on permanent endowment funds has also allowed the Trustees to make exceptional grants out of Unapplied Total Return on the relevant funds. An element of this exceptional grant-making has been made to Bristol Charities’ unrestricted funds, as seed funding for ambitious Community Transformation programmes which have begun during the year and continued into 2023-24.
## iv) Going concern and reserves policy
Trustees have continued to monitor global political and economic outlooks and adjusted the charity’s operations accordingly. Under the terms of the charity’s Reserves Policy and in forming a view on the charity’s Going Concern, Trustees have noted:
- The charity has a risk management framework which is updated annually. Risks identified are reviewed by the Audit and Health & Safety Committee every six months.
- The charity has adequate insurance cover in place to mitigate against a potential business interruption event which might cause a loss of income or the need to relocate its Head Office function away from The Vassall Centre, BS16 2QQ.
- The other risks to the charity and the protective steps taken to mitigate against them.
- The charity’s investments have proven resilient against the Covid-19 pandemic.
- The charity’s housing income from residents is secure, voids are closely monitored and housing demand remains high.
- The charity holds reserves at a level which is at or exceeds the Reserves Policy.
Taking the above into account, Trustees have determined that an appropriate level of free reserves is shown as follows;
|Six months of projected Head Office costs (i)
One month of projected housing costs (ii)
One month of projected Vassall Centre costs (ii)
One year of housing sinking fund contributions (iii)|£
259,000
71,000
25,000
172,000
527,000|
|---|---|
(i) Six months of Head Office costs is deemed appropriate as the Head Office function is funded through management charges payable by other group operations. If an operation was to fail putting Head Office viability in doubt, six months would be a reasonable time for Trustees to make alternative plans for Head Office or to identify alternative funding sources.
(ii) One month of housing and Vassall Centre costs is deemed appropriate as the nature of these activities means that one month is likely to represent a maximum time period over which they may be required to operate without any additional income.
(iii) This represents the annual contribution required to housing sinking funds in order to build up sufficient funds to cover the cost of the likely cyclical maintenance programme over the life of that programme.
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Report
## iv) Financial review - Going concern and reserves policy (continued)
Actual free reserves at the year end are shown as follows;
|ctual free reserves at the year end are shown as follows;||
|---|---|
|Unrestricted funds total
Less those held in tangible fixed assets
Less those held in unrestricted investment property
Unrestricted free reserves
Excess funds over reserves policy balance|£
6,530,645
(379,927)
(1,944,084)|
||4,206,634|
||3,679,634|
Therefore there is a £3,679,634 (2022: £3,343,184) surplus of free reserves at the year end. Trustees have determined that this is appropriate given;
- The charity’s ambitious development plans for the coming years. The Trustees anticipate allocating a significant proportion (c £3m) of excess free reserves to the redevelopment of the Vassall Centre in the coming years
- The projection for moderate to high levels of inflation to be present within the economy for the short to medium term
- The implementation of a social rent increase cap in 2023-24 and implications of this on the ability to contain cost inflation in future years
- Internal balance sheet risk such as that arising from the situation where cumulative sinking fund contributions are not sufficient to meet the capital maintenance requirements of the charity at any given time
## Disclosure of Information to Auditor
The Trustees have taken steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the Trustees of the charity on 21 September 2023 and signed on their behalf by:
…………………………………………………………… Richard Gore (Chair of Trustees)
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Trustees’ Responsibilities Statement
The Trustees (who are also directors of Bristol Charities for the purposes of company law) are responsible for preparing the report of the Trustees and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK 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 charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
Approved by the Trustees and signed on their behalf by:
…………………………………………………………… Richard Gore (Chair of Trustees) Date: 21 September 2023
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## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Independent Auditor's Report to the Members and Trustees of Bristol Charities
## Opinion
We have audited the financial statements of Bristol Charities (the 'parent charitable company') and its subsidiaries (the ‘group’) for the year ended 31 March 2023, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Cash Flows, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company's affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, 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 and the Charities Act 2011.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent 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 group’s and the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
18
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Independent Auditor's Report to the Members and Trustees of Bristol Charities – continued
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 CEO’s Message and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the CEO’s Message and Trustees' Report have been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Chair’s Message and the Trustees' Report. We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the group and parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s 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 prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## Responsibilities of Trustees
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 16), the Trustees 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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
19
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Independent Auditor's Report to the Members and Trustees of Bristol Charities – continued
## Auditor’s 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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We have considered the nature of the sector, control environment and performance of the entity;
- We have considered the results of our enquiries with management and the directors to their own identification and assessment of the risk of irregularities within the entity; and
- We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the areas of high risk to be in relation to revenue recognition. 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 have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation. In addition, we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations; employment legislation; social housing legislation and data protection laws.
Our audit procedures performed to respond to the risks identified included, but were not limited to:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
20
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Independent Auditor's Report to the Members and Trustees of Bristol Charities – continued
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 to the charitable company's Trustees, as a body, 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
........................................ Mr D Butler FCA, DChA (Senior Statutory Auditor) For and on behalf Bishop Fleming LLP Chartered Accountants and Statutory Auditor 10 Temple Back, Bristol BS1 6FL
Date:
21
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Consolidated Statement of Financial Activities for the Year Ended 31 March 2023
(Including Consolidated Income and Expenditure Account)
|Note
Income and Endowments
Donations and legacies
2
Charitable activities
3
Investment income
4
Other incoming resources
5
Grants, including capital grants
6
Total
Expenditure
Charitable Activities
7
Investment Management Expenditure
13
Other expenditure
Total
(Losses) / gains on investments
17
Net (expenditure) / income
Gross transfers between funds
23
Other recognised gains and losses
25
Net movement in funds
Reconciliation of funds
Total funds brought forward
Fund balances carried forward
22
Actuarial gains / (losses) on defined benefit
pension schemes|Unrestricted Restricted Endowment
Total
Funds
Funds
Funds
2023
£
£
£
£
1,368
-
-
1,368
1,273,975
-
-
1,273,975
441,295
281,407
276,656
999,358
7,029
4,317
-
11,346
-
46,580
-
46,580
1,723,667
332,304
276,656
2,332,627
(1,312,473)
(451,781)
(389,049) (2,153,302)
(261,093)
-
-
(261,093)
-
(4,931)
-
(4,931)
(1,573,566)
(456,712)
(389,049) (2,419,326)
(8,599)
-
(816,208)
(824,807)
141,502
(124,408)
(928,601)
(911,506)
88,246
212,086
(300,332)
-
1,055
-
-
1,055
-
230,803
87,678
(1,228,933)
(910,451)
6,299,842
105,127
34,103,093 40,508,062
6,530,645
192,805
32,874,160 39,597,610|Total
2022
£
9,491
1,320,927
749,642
20,657
-|
|---|---|---|
|||2,100,717
(2,096,779)
(218,317)
(3,400)|
|||(2,318,496)
178,640|
|||(39,139)|
|||-
124,946
-|
|||85,807
40,422,255|
|||40,508,062|
All the group’s activities derive from continuing operations during the above two periods.
The funds breakdown for 2022 is shown in note 31.
22
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
|Bristol Charities – 05402303
Consolidated Balance Sheet at 31 March 2023
2023
Notes
£
FIXED ASSETS
Housing properties
15
19,343,769
Tangible assets
16
79,426
Investments
17,18
17,816,869
37,240,064
CURRENT ASSETS
Debtors
19
1,132,244
Cash at bank and in hand
2,457,277
3,589,521
Creditors falling due within one year
20
(487,187)
Net current assets
3,102,335
Total assets less current liabilities
40,342,398
Creditors falling due after more than one year
21
(744,789)
Net assets
39,597,610
FUNDS
Endowment reserves
22
32,874,160
Restricted reserves
22
192,805
Unrestricted reserves: general reserves
22
6,530,645
Total funds
22
39,597,610|2022
£
19,759,321
86,624
18,782,605|
|---|---|
||38,628,550|
||222,316
2,971,603|
||3,193,919
(546,169)|
||2,647,750|
||41,276,300
(768,238)|
||40,508,062|
||34,103,093
105,127
6,299,842
40,508,062|
The notes on pages 27 to 60 form part of these accounts.
The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime _._
The financial statements were approved by the Board of Trustees and authorised for issue on 21 September 2023 and signed on their behalf by:
__________________________________ Richard Gore (Chair of Trustees)
23
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
|Bristol Charities – 05402303
Company Balance Sheet at 31 March 2023
2023
Notes
£
FIXED ASSETS
Tangible assets
16
15,830
Investments
17,18
13,742,681
13,758,511
CURRENT ASSETS
Debtors
19
591,749
Cash at bank and in hand
149,131
740,880
Creditors falling due within one year
20
(292,652)
Net current assets
448,228
Total assets less current liabilities
14,206,739
Creditors falling due after more than one year
21
(975)
Net assets
14,205,764
FUNDS
Endowment reserves
22
13,734,335
Restricted reserves
22
183,484
Unrestricted reserves: general reserves
22
287,945
Total funds
22
14,205,764|2022
£
11,517
14,495,336|
|---|---|
||14,506,853|
||299,173
207,411|
||506,584
(275,801)|
||230,783|
||14,737,636
(23,945)|
||14,713,691|
||14,471,570
95,106
147,015
14,713,691|
The notes on pages 27 to 60 form part of these accounts.
The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime _._
The financial statements were approved by the Board of Trustees and authorised for issue on 21 September 2023 and signed on their behalf by:
__________________________________ Richard Gore (Chair of Trustees)
24
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
|Bristol Charities
Consolidated Statement of Cash Flows for the Year Ended 31 March
2023
£|Bristol Charities
Consolidated Statement of Cash Flows for the Year Ended 31 March
2023
£|2023|
|---|---|---|
|||2022|
|||£|
|Cash flow from Operating Activities|||
|Net income|(910,451)|85,808|
||||
|Adjustments to cash flows from non cash items|||
|Investment income|(713,910)|(740,844)|
|Interest receivable|(8,792)
423,477|(8,798)|
|Depreciation||421,407|
||(1,209,676)|(242,427)|
|Working capital adjustments|||
|Decrease/(Increase) in debtors|(183,993)|244,481|
|Decrease in creditors|(82,431)|(255,176)|
||||
|Net cash flows from operating activities|(1,476,100)|(253,121)|
||||
|Cash flows from investing activities|||
|Purchase of tangible fixed assets|(726)
-
(2,749,912)|(19,479)|
|Sale of tangible fixed assets||-|
|Purchase of investments||(10,083,711)|
|Sale and revaluation of investments|2,989,710|7,649,176|
|Investment income|713,910
8,792|740,844|
|Interest received||8,798|
||||
|Net cash flows from investing activities|961,774|(1,704,372)|
||||
|Net increase in cash and cash equivalents|(514,326)|(1,957,495)|
||2,971,603||
|Cash and cash equivalents at 1 April||4,929,098|
||||
|Cash and cash equivalents at 31 March|2,457,277|2,971,603|
All cash flows are derived from continuing operations during the above two periods. The company is a qualifying entity for the purposes of FRS102 and have elected to claim exemption under FRS102 paragraph 1.12(b) not to present a Company statement of cash flows.
25
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Bristol Charities
|Bristol Charities|Bristol Charities|Bristol Charities|Bristol Charities|Bristol Charities|
|---|---|---|---|---|
|Consolidated Statement of Cash Flows for the Year Ended 31 March 2023|||||
|Analysis of net funds - Group
Cash at bank and in hand
Net cash
Cash at bank and in hand
Net cash|At 1 April
2022
£
2,971,603
2,971,603
At 1 April
2021
£
4,929,098
4,929,098|Financing
cash flows
£
-
-
Financing
cash flows
£
-
-|Other
cash flows
£
(514,326)
(514,326)
Other
cash flows
£
(1,957,495)
(1,957,495)|At 31 March
2023
£
2,457,277|
|||||2,457,277|
|||||At 31 March
2022
£
2,971,603|
|||||2,971,603|
26
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies
## Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## Basis of preparation
Bristol Charities meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recorded at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are prepared in sterling, which is the functional currency of the charitable company, and rounded to the nearest £.
## Basis of consolidation
Following the incorporation of Bristol Charities as at 1 April 2005, consolidated accounts have been prepared. The group’s financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. Acquisitions are accounted for under the acquisition method.
Orchard Homes, Orchard Homes Design and Build Limited and William Jones’s Almshouse Charity are consolidated within these accounts as Bristol Charities is the sole Trustee of the entities.
Bristol Charities recorded gross income for the year of £698,923 (2022: £476,827) and a deficit for the year of £507,927 (2022: surplus of £463,410) largely due to investment valuation losses.
Bristol Charities has taken exemption from presenting its unconsolidated statement of financial activities under section 408 of Companies Act 2006.
27
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Going concern
Bristol Charities’ activities and future plans are set out in the Trustees’ Report.
Bristol Charities manages its activities with positive unrestricted bank balances. The Trustees’ forecasts and projections, taking account of reasonably foreseeable changes in income and expenditure, show that Bristol Charities will be able to continue to operate on this basis.
Investment and rental income represent Bristol Charities’ largest income streams with substantial investments in the Common Pooled Investment Fund held. Two firms, Baring Asset Management Ltd and Evelyn Partners, were appointed to manage the non-property investments and each was initially allocated 50% of the portfolio. During the reporting period Baring Asset Management Ltd wound down their UK Multi-Asset Funds and as a result Bristol Charities moved its holdings to Evelyn Partners as an interim measure until a new investment manager can be appointed. The investment policy is for a balanced return with a medium level of risk. The Trustees seek to produce the optimum total return, commensurate with at least maintaining the capital value in line with inflation, as defined by the National Statistics.
The Trustees consider that the demand for the Charity’s services will continue as housing schemes are currently nearly fully occupied and demand for both housing and grants is high.
Based on the above the Trustees have a reasonable expectation that the charity has adequate resources to continue for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the report of the Trustees and financial statements.
## Key sources of estimation uncertainty
In the application of the group's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
28
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Income and endowments
Voluntary income including donations, gifts and legacies and grants that provide core funding, or are of general nature, are recognised where there is entitlement, receipt is probable, and the amount can be measured with sufficient reliability. Such income is only deferred when:
- 1) the donor specifies that the grant or donation must only be used in future accounting periods; or
- 2) The donor has imposed conditions which must be met before the charity has unconditional entitlement.
Rental income from investment properties is included on an accruals basis.
Investment income, including that deriving from the Bristol Charities Common Investment Fund, is included on an accruals basis. Income relating to grant endowment held in the Common Investment Fund is restricted, and income relating to Orchard Homes endowments held in the Common Investment Fund is unrestricted.
Interest receivable on cash balances is recognised on an accruals basis.
Other income is recognised on an accruals basis and is recognised when there is entitlement, and the receipt is probable and the amount can be measured with sufficient reliability.
## Interest on term loans
Interest receivable and payable on terms loans is recognised using the effective interest rate method.
## Expenditure
Expenditure is recognised when a liability is incurred. Grant payments are recognised when a constructive obligation arises that results in the payment becoming due.
## Charitable activities
Charitable activities include both the direct costs and support costs relating to these activities. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
## Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources (e.g. allocating staff costs on the time spent and other costs by their usage).
## Governance costs
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
29
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Irrecoverable VAT
Bristol Charities, Orchard Homes and William Jones’s Almshouse Charity are not registered for VAT and cannot recover input VAT. Input VAT charged to these entities is non-recoverable and is aggregated to the net invoiced cost and expensed in the SOFA as incurred.
## Fund structure
Unrestricted funds comprise those funds that the Trustees are free to use in accordance with the charitable objects of the charity.
Restricted funds are funds that have been given for particular purposes either by other charities for which Bristol Charities is Trustee, or by private individuals.
Endowment funds represent those assets that must be held permanently by the charity. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as either restricted or unrestricted income, as appropriate. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.
## Tangible fixed assets
Tangible fixed assets are capitalised at cost where the asset has a useful economic life that is more than a year.
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Freehold property (excluding land) is depreciated over fifty to one hundred years on a straight-line basis.
Housing properties are stated at cost. The cost of such properties includes the cost of acquiring land and buildings and development expenditure. Depreciation is charged so as to write off the cost of assets, other than land, over their estimated lives as follows:
• Alterations to leasehold properties are capitalised on completion and depreciated over between five and fifty years on a straight-line basis over the period of the lease.
• Computers, other office equipment, fixtures and equipment are depreciated over between three and ten years on a straight-line basis.
An impairment review will be undertaken when an indication of impairment has been identified.
## Redundancy and Payment In Lieu of Notice
Any staff that are made redundant are compensated by the Charity making a payment for redundancy. The redundancy payment is calculated in accordance with statutory redundancy guidelines published by the HM Government. Where staff are not required to work out their full notice the Charity will make a Payment In Lieu of notice based on their daily salary for the period not worked.
30
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Pension costs
The Charity implemented auto-enrolment for its employees in March 2016 and undertakes re-enrolment as required. The Charity contributes to the Growth Plan 4 Scheme for certain staff, a scheme which is run by The Pensions Trust. The assets of the scheme are held separately from those of the Charity. The annual contributions payable are charged to the Statement of Financial Activities as they become payable. This scheme is a defined contribution scheme.
The Charity makes deficit contributions to a final salary scheme, the Scottish Voluntary Sector Final Salary Pension Scheme, for certain members of staff. The scheme is in a separate fund where the assets are held and administered by The Pensions Trust. Service costs, net interest expense and measurements in respect of the scheme are charged to the Statement of Financial Activities. The scheme closed to new members in January 2000 and closed to future accrual at 1 March 2011.
The Charity also makes deficit contributions to the Growth Plan 3 Scheme. The scheme closed to future accruals on 1 March 2011. This scheme was a defined benefit scheme which closed to future contributions in October 2013.
## Business combinations
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.
## Fixed asset investments
Investments are included at their mid-market value at the balance sheet date. Any gain or loss on valuation is taken to the relevant fund and reflected in the Statement of Financial Activities. Investment properties are included at market value. Market value is assessed by RICS registered values at least every five years.
## Government grants
Social housing grants are booked to the Income and Expenditure account in the year of receipt in the consolidated accounts in accordance with Charities SORP FRS 102. This accounting treatment is different from how the grants are dealt with in Orchard Homes’ annual accounts whereby the grant income is booked to creditors and amortised to the income and expenditure account over the expected useful life of the asset. Social Housing Grant is repayable in certain circumstances, primarily following the sale of a relevant property when the repayable amount will often be restricted to the net proceeds of sale.
Other grants are recognised when all conditions of entitlement have been met.
31
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## Operating leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.
32
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Financial instruments
## Classification
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
## Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of fi nancial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
## Investments
Investments in subsidiaries are measured at cost less impairment.
## Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
33
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1. Accounting policies (continued)
## Taxation
Bristol Charities is a registered charity and as such is entitled to relevant tax exemptions on its charitable income and gains properly applied under normal circumstances for its charitable purposes.
## Grants payable
Grants payable are charged in the year when the offer is pledged to the recipient.
## Company status
The charity is a company limited by guarantee. The members of the company are the Trustees named in the Reference and Administrative details section. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## Total return approach to permanent endowment funds
The Relief in Need, Relief of Sickness and Disability, Educational Charities, Barry T Jones, Miss E M Merchant, Dr Owen’s, Rev. Dr T White’s Essex Estates and Rev. Dr T White’s Gray’s Inn Lane Trust endowment funds are invested in the Bristol Charities Common Investment Fund (CIF). The CIF itself is invested in a portfolio of listed securities and investment properties.
From 30th September 2022 the charity has operated a total return approach to the management of the CIF and those component permanent endowment funds. Under this approach the charity is required to analyse the endowment funds between the amount held for investment and the Unapplied Total Return (UTR). The charity is permitted to allocate from the UTR to the corresponding restricted income fund such sums as the Trustees see appropriate, provided that they exercise their statutory duty to be even-handed between current and future beneficiaries and that they maintain the UTR at such a level as to ensure it remains positive after having due consideration to the volatility of investment markets.
34
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 2. Income from donations and legacies
All donations and legacies in both the current and prior year are unrestricted sundry donations.
## 3. Income from charitable activities
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|Housing (unrestricted):|
|Maintenance charges and rents|1,205,170|1,177,476|
|Service and utility charges|98,878|97,710|
|Losses from voids|(52,270)|(40,306)|
|Sundry income|22,197|86,047|
|1,273,975|1,320,927|
**----- End of picture text -----**
In the year ended 31 March 2022 all income was attributable to unrestricted funds.
## 4. Investment income from fixed asset investments
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Unrestricted|Restricted|Endowment|Total|Total|
|funds|funds|funds|2023|2022|
|£|£|£|£|£|
|441,295|281,407|276,656|999,358|749,642|
**----- End of picture text -----**
On 30 September 2022 the group and charity adopted a total return approach to permanent endowment funds and investment income earned on these funds since this date is recognised in the relevant endowment fund.
In the year ended 31 March 2022 there was income of £349,992 attributable to unrestricted funds, £399,650 attributable to restricted funds and £nil attributable to endowment funds.
## 5. Other incoming resources
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Unrestricted|Restricted|Total|Total|
|funds|funds|2023|2022|
|£|£|£|£|
|Sundry income|7,029|4,317|11,346|20,657|
**----- End of picture text -----**
Sundry income attributable to unrestricted funds includes £nil (2022: £2,396) of Coronavirus Job Retention Scheme grant receipts relating to zero (2022: one) furloughed staff members. In the year ended 31 March 2022 there was £17,570 attributable to unrestricted funds and £3,087 attributable to restricted funds.
35
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 6. Grant income
|6. Grant income||
|---|---|
|Feeding Bristol Winter Project Fund|Restricted
funds
£
12,000
25,000
9,580
46,580|
|BCC Cost of Living Support Fund||
|Other BCC Restricted Grant Funds||
|||
All grants received in 2023 relate to the charity’s Community Transformation operations.
## 7. Expenditure on charitable activities
|By fund
Unrestricted
funds
£
Depreciation and amortisation
35,875
Grant funding
-
Project delivery costs
Support costs
1,247,548
Governance
29,049
1,312,473
By activity
Grant giving
£
Staff costs
46,952
Service costs
-
Maintenance and property
-
Administration
-
Grants made
362,920
Governance
-
Support costs (allocated)
28,999
Property depreciation
-
438,871|By fund
Unrestricted
funds
£
Depreciation and amortisation
35,875
Grant funding
-
Project delivery costs
Support costs
1,247,548
Governance
29,049
1,312,473
By activity
Grant giving
£
Staff costs
46,952
Service costs
-
Maintenance and property
-
Administration
-
Grants made
362,920
Governance
-
Support costs (allocated)
28,999
Property depreciation
-
438,871|Restricted
funds
£
-
438,871
12,739
-
171|Endowment
funds
£
387,602
-
1,447
-|Total
2023
£
423,477
438,871
12,739
1,248,995
29,220|Total
2022
£
421,407
381,070
-
1,267,131
27,171|
|---|---|---|---|---|---|
||1,312,473|451,781|389,049|2,153,302|2,096,779|
||Grant giving
£
46,952
-
-
-
362,920
-
28,999
-|Housing
£
296,387
-
343,052
36,002
-
10,971
110,778
404,009|Community &
Other
£
222,225
12,739
67,808
92,988
-
18,249
99,224
-|Total
2023
£
565,564
12,739
410,860
128,990
362,920
29,220
239,001
404,009|Total
2022
£
374,505
-
691,590
69,489
301,889
27,000
229,735
402,570|
||438,871|1,201,198|513,233|2,153,302|2,096,779|
Expenditure on charitable activities was £2,153,303 (2022: £2,096,779) of which £1,327,473 (2022: £1,335,668) was attributable to unrestricted funds, £451,781 (2022: £381,241) was attributable to restricted funds and £389,049 (2022: £379,870) was attributable to endowment funds.
36
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 8. Head office costs and allocation of support costs
Total Head office costs, including allocated support costs, consist of;
|Staff costs
Property costs
Administration costs
Depreciation costs
Staff costs, allocated expenditure
Allocated support costs
Allocated support costs consist of;|Staff costs
Property costs
Administration costs
Depreciation costs
Staff costs, allocated expenditure
Allocated support costs
Allocated support costs consist of;|||||2023
£
235,361
67,808
111,237
2,447|2023
£
235,361
67,808
111,237
2,447||2022
£
259,343
46,115
115,707
1,619
422,784
159,869
262,915
422,784|2022
£
259,343
46,115
115,707
1,619
422,784
159,869
262,915
422,784|
|---|---|---|---|---|---|---|---|---|---|---|
|||||||416,853|||||
|||||||154,518
262,335
416,853|||||
|Community development
Housing
Grant making
Property development projects
Investments
Year ended 31 March 2023
Year ended 31 March 2022||Salary
Costs
£
2,967
34,138
16,127
16,774
10,837
80,843
99,474|Property &
Deprec'n
£
2,578
29,667
14,015
14,577
9,418
70,255
47,734|||Admin
Costs
£
4,082
46,973
22,191
23,080
14,911
111,237
115,707|||2023
2022
£
£
9,628
-
110,778
119,411
52,333
69,980
54,430
66,726
35,166
6,798
262,335
262,915
262,915
315,477||
||||||||||||
||||||||||||
||||||||||||
||||||||||||
|9. Governance costs
Audit fees
Audit of the financial statements
Other fees paid to auditors||Unrestricted
funds
£
25,449
3,600
29,049|||Restricted
funds
£
171
-
171|||Total
2023
£
25,620
3,600
29,220||Total
2022
£
23,580
3,420
27,000|
||||||||||||
Governance costs were £29,220 (2022: £27,000) of which £29,049 (2022: £26,829) was attributable to unrestricted funds and £171 (2022: £171) was attributable to restricted funds.
37
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
|10. Grant making
Grants paid to institutions
Paid from Dr Owen's Charity
Bristol Grammar School
Paid to Dr T Whites Essex Estates & Grays Inn
Paid from Miss EM Merchant Trust
Bristol Autism Support
Cabot Learning Federation
Carers Support Centre
Chinese Community Wellbeing Society
Khaas
Paid from Barry T Jones Fund
Bristol Grammar School
QEH School
Total grants paid to institutions
Grants paid to individuals
Total grants Paid|2023
£
73,610
4,039
2,500
-
5,000
4,500
-
-
-
89,649
273,271
362,920|2022
£
57,257
3,140
-
2,675
9,857
-
4,645
5,000
7,800|
|---|---|---|
|||90,374
211,515
301,889|
Trustees elected to roll forward the Barry T Jones independent school grants budget into the following year in order to facilitate the availability of larger grants in that year.
## 11. Staff costs
|Salaries and wages
Social security costs
Other pension costs|2023
£
481,130
44,892
39,542
565,564|2022
£
323,270
32,724
71,384
427,378|
|---|---|---|
38
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 11. Staff costs (continued)
The number of employees whose emoluments fell within the following bands was;
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|No.|No.|
|£60,000 to £70,000|-|1|
|£70,000 to £80,000|2|-|
|£100,000 to £110,000|-|1|
**----- End of picture text -----**
The Charity considers key management personnel to be the Chief Executive and the Director of Finance and Operations. The total employee benefits, including employer pension contributions, of the key management personnel of the Group were £185,952 (2022: £197,796).
The average number of staff employed by the Group during the year was as follows;
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|2023|2022|
|Number|FTE|Number|FTE|
|Almshouse Staff|6|5|5|4|
|Clerical Staff|10|8|10|8|
|Community Development Staff|1|-|-|-|
|17|13|15|12|
**----- End of picture text -----**
During the year the Group received grants totalling £nil (2022: £2,396) from the Coronavirus Job Retention Scheme, covering zero (2022: one) furloughed staff members. None of these amounts related to the parent charity.
## 12. Pension costs
## Growth Plan Scheme for Current Staff
The Charity contributes to the Pensions Trust Growth Plan schemes for current staff (see note 25 for more information). The assets of the scheme are held separately from those of the Charity. The annual contributions are charged to expenses as they become payable.
## Historic Final Salary Pension Scheme
Bristol Charities used to offer a final salary pension scheme, but this scheme was closed to new members with effect from January 2000. The assets of the scheme are held separately from those of Bristol Charities in an independently held fund administered by The Pensions Trust.
The scheme is in deficit, and there is a deficit reduction plan. The required deficit contributions are reviewed every three years, and a new level was set to run from April 2019. Contributions will increase by 3% in each year. The contributions required after that will depend on the findings of the next review.
39
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 12. Pension costs (continued)
The scheme closed to future accrual at 31 March 2010 and from 1 April 2011 contributions in respect of future service have ceased. The two current members are, from 1 April 2011, members of the Pension Trust Growth Plan scheme.
Further information on this scheme, the Scottish Voluntary Sector Final Salary Pension Scheme (SVSPS) is included in note 25.
## Growth Plan 3 Scheme Deficit
Contributions for current staff were being invested in Growth Plan 3. The capital invested by employees in Growth Plan 3 was guaranteed. This scheme is in deficit, and a deficit reduction plan was put in place at the start of the financial year.
The Pensions Trust closed Growth Plan 3 to contributions in October 2013, and future contributions are now made to Growth Plan 4, which is a money purchase scheme.
Pensions creditor: the pension contributions payable at the year-end were £5,501 (2022: £3,428).
Pension cost in the year:
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|Pension deficit interest, Historic Final Salary Scheme (SVSPS)|1,000|2,000|
|Pension deficit interest, Growth Plan 3 Scheme|61|101|
|Contributions to the Pensions Trust Growth Plan 4 scheme for current staff|29,442|28,115|
|Contributions to other money purchase schemes for current staff|9,039|41,168|
|39,542|71,384|
**----- End of picture text -----**
## 13. Net (income) / expenditure
Net (income) / expenditure for the year includes;
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|Depreciation of tangible fixed assets|19,468|18,837|
|Depreciation of housing properties|404,009|402,570|
|Auditors remuneration|
|For Bristol Charities parent and consolidation|18,420|15,420|
|For other subsidiaries|10,800|11,580|
**----- End of picture text -----**
Investment Management Expenditure of £261,093 (2022: £218,317) disclosed on the SOFA relates to the costs of operating the Vassall Centre investment property during the year.
40
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 14. Trustees’ remuneration and expenses
During the year the following Trustee expenses were incurred;
|Reimbursement of Trustee travel costs
Trustee training costs|2023
£
9
85
94|2022
£
27
1,173
1,200|
|---|---|---|
During the year one (2022: one) was reimbursed expenses of £9 (2022: £27) in relation to attendance at Trustees’ meetings.
## 15. Housing properties
## Group - Freehold property
|Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022|Almshouses
Housing
Total
£
£
£
21,989,104
109,959
22,099,063
(11,544)
-
(11,544)
-
-
-|
|---|---|
||21,977,561
109,959
22,087,520|
||2,315,550
24,192
2,339,742
402,909
1,100
404,009
-
-
-|
||2,718,459
25,292
2,743,751|
||19,259,102
84,667
19,343,769|
||19,673,554
85,767
19,759,321|
The Housing balance of £84,667 (2022: £85,767) represents the net book value of the Furber Fund housing properties. The value of land included in housing properties is £1,757,648 (2022: £1,757,648).
All housing properties are held in subsidiary undertakings and therefore no housing properties note is prepared for Bristol Charities as parent charity.
The negative additions figure for the year arises from an adjustment to the retention monies due on the settlement of the account for the group’s Haberfield House development project.
41
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 16. Other tangible fixed assets
|Group
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022
Charity
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022|Alterations
to leasehold
property
£
32,183
-
32,183
32,183
-
32,183
-
-
Alterations
to leasehold
property
£
32,183
-
32,183
32,183
-
32,183
-
-|Furniture and
fittings
£
127,017
1,183
128,200
57,280
11,616
68,896
59,304
69,737
Computer
equipment
£
70,824
9,313
80,137
59,307
5,000
64,307
15,830
11,517|Computer
equipment
£
91,651
11,087
102,738
74,764
7,852
82,616
20,122
16,887
Total
£
103,007
9,313
112,320
91,490
5,000
96,490
15,830
11,517|Total
£
250,851
12,270|
|---|---|---|---|---|
|||||263,121|
|||||164,227
19,468|
|||||183,695|
||||||
|||||79,426|
|||||86,624|
42
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 17. Fixed Asset Investments
|Market value at 1 April 2022
Additions
Disposals
Charges
Net cash withdrawn
Adjustment to market value||Group
£
18,782,605
2,091,234
(1,674,759)
(67,257)
(192,795)
(1,122,159)|Charity
£
14,495,336
1,807,054
(1,451,108)
(57,545)
(88,793)
(962,263)|
|---|---|---|---|
|Market value at 31 March 2023||17,816,869|13,742,681|
|Historical cost||14,724,831|12,598,983|
|Investments at market value comprise
Group
2023
£
Investment Properties
3,607,000
UK Fixed Interest
427,829
Private equity
2,497,442
UK Quoted equities
4,099,500
UK Investment & Unit Trusts
1,873,033
Overseas Equities
5,216,258
Cash
95,807||
Charity
2022
2023
2022
£
£
£
3,607,000
1,486,581
1,487,826
295,618
368,282
256,161
2,783,009
2,155,765
2,385,930
4,200,982
3,538,264
3,602,005
1,752,431
1,616,937
1,505,807
5,786,931
4,494,906
4,957,168
356,634
81,947
300,440||
||17,816,869
18,782,605
13,742,681||14,495,336|
All investment types above are publicly listed except investment properties.
During the prior year a group entity charity acquired the Vassall Centre and the purchase price of this investment property less any valuation losses are shown in Investment Properties above.
43
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 17. Fixed Asset Investments (continued)
Realised and unrealised gains and losses in the year were:
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Group|Charity|
|2023|2022|2023|2022|
|£|£|£|£|
|Realised gains|291,699|295,537|258,650|256,298|
|Unrealised gains / (losses)|(1,413,858)|(67,326)|(1,220,913)|93,761|
|(1,122,159)|228,212|(962,263)|350,059|
**----- End of picture text -----**
Included in the Common Pool Investment Fund (CPIF) are investment properties with a market value of £1,717,000. The properties which make up this valuation are:
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|17 St Augustines Parade, Bristol BS1 4UL|625,000|625,000|
|Playground at Blackdown Road, Portishead BS20 6DN|12,000|12,000|
|26-29 St Augustines Parade, Bristol BS1 4UL|245,000|245,000|
|John Milton Clinic, Brentry, Bristol BS10 7DP|675,000|675,000|
|Amelia Court, Pipe Lane, Bristol BS1 5AA|160,000|160,000|
|Investment Properties held by the CPIF|1,717,000|1,717,000|
**----- End of picture text -----**
The valuations assigned to 26-29 St Augustine’s Parade and Amelia Court are based on the market valuation of income receivable from the sites which is split 60% to Bristol City Council and 40% to Bristol Charities.
Investments over 5% of the total value at the balance sheet date for the group were the Vassall Centre investment property valued at £1,890,000, of which £nil is held by the charity.
Investment properties were valued at either 31 March 2021 (CPIF properties) or 8 May 2021 (the Vassall Centre) and the Trustees are content that there have been no material changes in valuation since these dates.
At 31 March 2023 the Group held 2,661,846 (2022: 2,676,309) units in the Bristol Charities Common Investment Fund, of which 2,304,630 (2022: 2,319,093) were held by the parent charity Bristol Charities.
## Investments in group undertakings and participating interests
**----- Start of picture text -----**
||||
|---|---|---|
|Charity|2023|2022|
|£|£|
|Cost and net book value|
|Share holding in Orchard Homes Design & Build Ltd|1|1|
**----- End of picture text -----**
44
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 17. Fixed Asset Investments (continued)
On 30[th] September 2022 the group and charity adopted a total return to the following permanent endowment funds:
Relief in Need Charity Fund A Relief in Sickness & Disability Charity Fund B Educational charities Fund C Barry T Jones Fund Fund D Miss E M Merchant Trust Fund E Dr Owen's Charity Fund F Rev Dr T White's Essex Estates Fund G Rev Dr T White's Gray's Inn Lane Trust Fund H
The investment power of Total Return permits the charity to invest these funds in order to maximise Total Return and gives it the power to apply an appropriate portion of the Unapplied UTR to income funds each year. The UTR remains part of the permanent endowment until this power is exercised.
The value of the original endowments associated with these endowment funds was determined at 31 March 2006 (the “initial endowment date”) as this was the deemed inception date for these funds in their current form. The initial UTR values for these endowment funds were calculated at 30[th] September 2022 as the value of the endowment funds at that date, less the values of the original endowments and adjusted for the introduction of any investments into these funds since the initial endowment date.
Trustees elected to allocate a proportion of the UTR back to the original endowments at 30[th] September, in accordance with Total Return regulations. For each fund, the original endowment plus allocated UTR value represent that fund’s “Trust for Investment” at that date. Between 30[th] September 2022 and 31[st] March 2023 the UTR of each endowment fund has changed in accordance with income and gains / losses experienced over this period. Trustees have allocated a portion of each fund’s UTR to restricted income funds over this period.
Values for the Trust for Investment (TfI), Unapplied Total Return (UTR) and Total Endowment for each of the above names funds is shown below:
45
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 17. Fixed Asset Investments (continued)
|Trust for Investment (TfI)
At 1st April 2022
Initial measurement
Allocations from UTR
At 31st March 2023
Unapplied Total Return (UTR)
At 1st April 2022
Initial measurement
Total Return in the Year
Allocations to TfI
Allocations to Income Funds
At 31st March 2023
Total Endowments
At 1st April 2022
Initial measurement
Total Return in the Year
Allocations to Income Funds
At 31st March 2023|Fund A
£
-
6,033,807
-|Fund B
£
-
2,536,019
-|Fund C
£
-
150,564
-|Fund D
£
-
411,430
-|Fund E
£
-
440,680
-|Fund F
£
-
2,163,720
-|Fund G
£
-
55,928
-|Fund H
£
-
42,974
-|Total
£
-
11,835,122
-|
|---|---|---|---|---|---|---|---|---|---|
||6,033,807|2,536,019|150,564|411,430|440,680|2,163,720|55,928|42,974|11,835,122|
||Fund A
£
-
635,433
487,817
-
(192,998)|Fund B
£
-
267,073
207,074
-
(46,921)|Fund C
£
-
15,856
12,294
-
(2,786)|Fund D
£
-
43,330
33,595
-
(7,612)|Fund E
£
-
46,407
35,983
-
(8,153)|Fund F
£
-
227,865
176,674
-
(40,033)|Fund G
£
-
5,889
4,567
-
(1,035)|Fund H
£
-
4,527
3,509
-
(795)|Total
£
-
1,246,380
961,512
-
(300,334)|
||930,252|427,226|25,364|69,312|74,236|364,506|9,421|7,241|1,907,559|
||Fund A
£
-
6,669,240
487,817
(192,998)|Fund B
£
-
2,803,092
207,074
(46,921)|Fund C
£
-
166,420
12,294
(2,786)|Fund D
£
-
454,760
33,595
(7,612)|Fund E
£
-
487,087
35,983
(8,153)|Fund F
£
-
2,391,585
176,674
(40,033)|Fund G
£
-
61,817
4,567
(1,035)|Fund H
£
-
47,501
3,509
(795)|Total
£
-
13,081,502
961,512
(300,334)|
||6,964,059|2,963,245|175,928|480,742|514,916|2,528,226|65,349|50,215|13,742,681|
## 18. Bristol Charities Common Investment Fund
Bristol Charities is corporate Trustee of Bristol Charities Common Investment Fund, also known as the Common Pool Investment Fund (CPIF). The results of CPIF are consolidated into the financial statements of Bristol Charities. Information on the CPIF’s unit values, balance sheet values and fund movements are shown below:
|a) Unit values
Units value at year end|2023
2022
£
£
5.96307
6.25043
Group|2023
2022
£
£
5.96307
6.25043
Charity|
|---|---|---|
46
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 18. Bristol Charities Common Investment Fund (continued)
|b) Unit holdings
Endowment Funds: Grant-giving charities
Relief in Need
Relief of Sickness and Disability
Educational charities
Barry T Jones Fund
Miss E M Merchant
Dr. Owen's Charity
Rev. Dr. T White's Essex Estates
Rev. Dr. T White's Grays Inn Lane Trust
Almshouse charities
Orchard Homes Endowment Reserves
Total CPIF unit holdings
c) Holding values
Endowment Funds: Grant-giving charities
Relief in Need
Relief of Sickness and Disability Charity
Educational charities
Barry T Jones Fund
Miss E M Merchant
Dr. Owen's Charity
Rev. Dr. T White's Essex Estates
Rev. Dr. T White's Grays Inn Lane Trust
Almshouse charities
Orchard Homes Endowment Reserves
Total CPIF holding values|2023
2022
Units
Units
1,167,862
1,182,325
496,933
496,933
29,503
29,503
86,351
86,351
80,620
80,620
423,981
423,981
10,959
10,959
8,421
8,421
2,304,630
2,319,093
357,216
357,216
2,661,846
2,676,309
2023
2022
£
£
6,964,047
7,390,043
2,963,248
3,106,046
175,929
184,407
514,917
539,731
480,743
503,910
2,528,230
2,650,065
65,349
68,498
50,215
52,635
13,742,679
14,495,334
2,130,105
2,232,755
15,872,784
16,728,089
Group
Group|2023
2022
Units
Units
1,167,862
1,182,325
496,933
496,933
29,503
29,503
86,351
86,351
80,620
80,620
423,981
423,981
10,959
10,959
8,421
8,421
2,304,630
2,319,093
-
-
2,304,630
2,319,093
2023
2022
£
£
6,964,047
7,390,043
2,963,248
3,106,046
175,929
184,407
514,917
539,731
480,743
503,910
2,528,230
2,650,065
65,349
68,498
50,215
52,635
13,742,679
14,495,334
-
-
13,742,679
14,495,334
Charity
Charity|
|---|---|---|
||13,742,679
2,130,105||
||15,872,784||
47
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 18. Bristol Charities Common Investment Fund (continued)
|(d) Income account (return)
Gross income
Managed portfolios
Income from investment property
Charges
Legal and professional fees
Bristol Charities
Final distribution
Undistributed income carried forward
Distribution pence per unit
(e) Balance sheet
Managed portfolio at market value
Investment property at market value
Net investment fund
(f) Statement of movement in net assets
Net assets at start of year
Investment gains/(losses) for the year
Realised (losses)/gains in investments sold in the year
Additions
Proceeds of investment disposals
Cash introduced or withdrawn in year
Valuation gains
Portfolio Manager charges
Net assets at end of year|2023
2022
£
£
547,578
384,428
116,509
103,780|
|---|---|
||664,087
488,208
(13,925)
(15,004)
(12,000)
(12,000)|
||638,162
461,204
(638,162)
(461,204)|
||-
-|
||23.84
17.23|
||2023
2022
£
£
14,155,784
15,011,089
1,717,000
1,717,000|
||15,872,784
16,728,089|
||2023
2022
£
£
16,728,089
16,348,069|
||298,627
295,776
2,086,082
7,896,808
(1,674,624)
(7,922,801)
(88,795)
43,708
(1,410,159)
108,203
(66,436)
(41,675)|
||(855,305)
380,020|
||15,872,784
16,728,089|
48
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 19. Debtors
|Trade debtors
Due from group undertakings
Prepayments
Accrued income
Other debtors|Group
2023
2022
£
£
130,795
49,558
-
-
961,120
93,464
12,098
66,418
28,231
12,876
1,132,244
222,316|Charity
2023
2022
£
£
11,158
1,600
556,748
261,830
9,510
29,697
12,098
6,046
2,235
-
591,749
299,173|Charity
2023
2022
£
£
11,158
1,600
556,748
261,830
9,510
29,697
12,098
6,046
2,235
-
591,749
299,173|
|---|---|---|---|
||||299,173|
Included in group prepayments is £899,602 (2022: £nil) in relation development costs associated with the Vassall Centre investment property. As planning permission has not been granted by the year end these are not yet included in fixed assets under construction.
## 20. Creditors falling due within one year
|Trade creditors
William Jones's School Foundation loan
Deferred income
Pensions deficit
Other taxation and social security
Other creditors
Accruals|Group
2023
2022
£
£
156,371
147,483
960
480
19,947
18,749
23,073
28,267
12,459
9,135
97,567
147,441
176,810
194,614
487,187
546,169|Charity
2023
2022
£
£
32,564
81,978
-
-
12,600
6,250
23,073
28,267
12,459
9,135
84,725
70,935
127,231
79,236
292,652
275,801|Charity
2023
2022
£
£
32,564
81,978
-
-
12,600
6,250
23,073
28,267
12,459
9,135
84,725
70,935
127,231
79,236
292,652
275,801|
|---|---|---|---|
||||275,801|
## Deferred income
Deferred income is made up of investment property and almshouse property rent and maintenance charges billed in advance.
|Balance at 1 April
Released to incoming resources
Amounts deferred in year
Balance at 31 March|Group
2023
2022
£
£
18,749
49,601
(12,499)
(49,601)
13,697
18,749
19,947
18,749|Charity
2023
2022
£
£
6,250
34,136
-
(34,136)
6,350
6,250
12,600
6,250|Charity
2023
2022
£
£
6,250
34,136
-
(34,136)
6,350
6,250
12,600
6,250|
|---|---|---|---|
||||6,250|
49
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 21. Creditors due after more than one year
|William Jones's School Foundation loan
Pensions deficit
Social Housing Grants|Group
2023
2022
£
£
480
960
975
23,945
743,334
743,334
744,788
768,239|Charity
2023
2022
£
£
-
-
975
23,945
-
-
975
23,945|Charity
2023
2022
£
£
-
-
975
23,945
-
-
975
23,945|
|---|---|---|---|
||||23,945|
The Social Housing Grants creditor is Recycled Capital Grant Funding (RCGF) and is monies previously advanced by Homes England to Lady Haberfield’s Almshouse Charity to be reinvested into qualifying almshouse property.
## 22. Funds
|At 1 April
2022
£
ENDOWMENT FUNDS
Grant-Giving Charities;
Relief in Need Charity
7,377,926
Relief in Sickness & Disability Charity
3,100,954
Educational charities
184,104
Barry T Jones Fund
538,846
Miss E M Merchant Trust
503,084
Dr Owen's Charity
2,645,720
Rev Dr T White's Essex Estates
68,388
Rev Dr T White's Gray's Inn Lane Trust
52,549
Total Endowment Funds of the Charity
14,471,570
Almshouse Charities;
Orchard Homes
18,528,346
William Jones's Almshouse Charity
1,103,177
Total Endowment Funds of the Group
34,103,093
RESTRICTED FUNDS
Community Transformation Project Funds;
Feeding Bristol Winter Project Fund
-
BCC Cost of Living Support Fund
-
Other BCC Restricted Grant Funds
-
Grant-Giving Charities;
Relief in Need Charity
69,149
Relief in Sickness & Disability Charity
-
Educational charities
5,163
Barry T Jones Fund
2,209
Miss E M Merchant Trust
18,585
Dr Owen's Charity
-
Rev Dr T White's Essex Estates
-
Rev Dr T White's Gray's Inn Lane Trust
-
Total Restricted Funds of the Charity
95,106
William Jones's Almshouse Charity
10,021
Total Restricted Funds of the Group
105,127
22. Funds|Total
income
£
140,340
59,629
3,540
10,362
9,584
50,876
1,315
1,010
276,656
-
-
276,656
12,000
25,000
9,580
143,378
60,262
3,578
10,472
9,867
51,415
1,329
1,021
327,902
4,402
332,304|Total
expenditure
£
-
-
-
-
-
-
-
-
-
(364,619)
(24,430)
(389,049)
-
(10,419)
(3,778)
(232,648)
(96,714)
(5,359)
(3,311)
(17,341)
(77,809)
(2,393)
(1,838)
(451,610)
(5,102)
(456,712)|Losses and
transfers
£
(558,818)
(198,972)
(11,813)
(34,575)
(32,190)
(169,763)
(4,390)
(3,371)
(1,013,893)
(102,647)
-
(1,116,540)
-
-
-
-
119,469
46,917
2,787
8,153
7,613
25,313
1,037
797
212,086
-
212,086|At 31 March
2023
£
6,959,448
2,961,610
175,831
514,633
480,478
2,526,833
65,314
50,187|
|---|---|---|---|---|
|||||13,734,335
18,061,080
1,078,746|
|||||32,874,160|
|||||12,000
14,581
5,802
99,348
10,465
6,169
17,523
18,724
(1,081)
(27)
(20)|
|||||183,484
9,321|
|||||192,805|
50
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
|||||||
|---|---|---|---|---|---|
|UNRESTRICTED FUNDS
Of the Charity
Of other group entities
Total Unrestricted Funds of the Group
TOTAL FUNDS
Of the Charity
Of the Group
22. Funds (continued)|At 1 April
2022
£
147,015
6,152,827
6,299,842
14,713,691
40,508,062|Total
income
£
105,529
1,618,138
1,723,667
710,087
2,332,627|Total
expenditure
£
(48,154)
(1,525,412)
(1,573,566)
(499,764)
(2,419,326)|Losses and
transfers
£
83,555
(2,853)
80,702
(718,252)
(823,752)|At 31 March
2023
£
287,945
6,242,700|
||||||6,530,645|
|||||||
||||||14,205,764|
||||||39,597,610|
The purpose of each of the Charity’s grant-giving endowment funds and its corresponding restricted income fund is as follows;
Relief in Need. The relief of persons resident in the City of Bristol who are in need, hardship or distress.
Relief in Sickness & Disability. The relief of persons resident in the City of Bristol who are sick, convalescent, disabled or infirm by relieving their suffering or assisting their recovery.
Educational charities. The provision of grants to create access to opportunities for young people who are resident in the City of Bristol where no loans or public funds are available.
Barry T Jones Fund: The provision of grants to charitable independent schools engaged in Secondary education within the City and County of Bristol.
Miss E M Merchant Trust: The provision of grants to carers who have limited means living in the City of Bristol or within a 10-mile radius of Bristol city centre.
Dr Owen’s Charity: Income accrued from this fund is required to be distributed 83.33% to Bristol Grammar School and 16.67% to Orchard Homes.
Rev Dr T White’s Essex Estates: Income accrued from this fund is required to be distributed to Revered Dr White.
Rev Dr T White’s Gray’s Inn Lane Trust: Income accrued from this fund is required to be distributed 50% to Bristol Grammar School and 50% to Reverend Dr White.
The Orchard Homes almshouse charity and William Jones’s Almshouse Charity endowment funds and funds of subsidiary entities which hold almshouse properties for the provision of charitable housing in Bristol and Monmouth, respectively.
The William Jones’s Almshouse Charity restricted funds relates to service charges and sinking fund contributions for the leasehold common parts at Cwrt William Jones, Monmouth.
51
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 22. Funds (continued)
The Feeding Bristol Winter Project Fund is for the provision of food-based Community Transformation initiatives based at the Vassall Centre.
The BCC Cost of Living Support Fund funds Cost of Living related support services at the Vassall Centre.
Other BCC Restricted Grant Funds are for the provision of other Community Transformation services and initiatives in the Oldbury Court area of Bristol.
## 23. Gross transfers between funds
|23. Gross transfers between funds|||
|---|---|---|
|Grant allocation from Dr George Owen's Charity to Orchard Homes
Transfers of Investment Returns and Income
Donation from Relief in Need to Community Development Funds
Total transfers between funds to 31 March 2023
Grant allocation from Dr George Owen's Charity to Orchard Homes
William Jones's Almshouse Charity Sinking Fund Transfers
Total transfers between funds to 31 March 2022|Unrestricted
Funds
2023
£
14,722
71,524
2,000|Restricted
Endowment
Funds
Funds
2023
2023
£
£
(14,722)
-
228,808
(300,332)
(2,000)
212,086
(300,332)
Restricted
Funds
2022
£
(11,451)
(7,108)
(18,559)|
||88,246
Unrestricted
Funds
2022
£
11,451
7,108||
||18,559||
The allocation from the Dr George Owen’s Charity is the amount of investment returns on this fund that are allocated to Orchard Homes.
Transfers of Investment Returns and Income relate to the allocation of Unapplied Total Return (UTR) from permanent endowment funds to income funds. Initially these are transferred to restricted income funds, however, during the year an internal grant was made from restricted income funds to the charity’s unrestricted funds and this is reflected in the transfer allocations shown above.
52
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
|_____________________________________________________________________________|_____________________________________________________________________________|_____________________________________________________________________________|
|---|---|---|
|Notes to the Financial Statements for the Year Ended 31 March 2023
24Ali f t t bt fd|||
|Unrestricted
Year ended 31 March 2023
Funds
£
GROUP
Tangible fixed assets
379,927
Fixed asset investments
1,944,084
Net current assets / (liabilities)
4,207,114
Creditors falling due after more than one year
(480)
6,530,645
CHARITY
Tangible fixed assets
15,830
Fixed asset investments
-
Net current (liabilities) / assets
272,115
Creditors falling due after more than one year
-
287,945
Unrestricted funds reported in the balance sheet:
GROUP
£
Unrestricted funds - general
6,554,693
Unrestricted funds - pension deficit (SVSPS)
(22,000)
Unrestricted funds - pension deficit (GP3)
(2,048)
Total Unrestricted funds
6,530,645
Unrestricted
Year ended 31 March 2022
Funds
£
GROUP
Tangible fixed assets
402,814
Fixed asset investments
2,054,516
Net current assets / (liabilities)
3,867,416
Creditors falling due after more than one year
(24,904)
6,299,842
CHARITY
Tangible fixed assets
11,517
Fixed asset investments
-
Net current (liabilities) / assets
159,443
Creditors falling due after more than one year
(23,945)
147,015
Unrestricted funds reported in the balance sheet:
GROUP
£
Unrestricted funds - general
6,515,322
Unrestricted funds - pension deficit (SVSPS)
(198,000)
Unrestricted funds - pension deficit (GP3)
(17,480)
Total Unrestricted funds
6,299,842
. nayss o ne asses eween uns|Restricted
Funds
£
-
-
192,805
-
192,805
-
-
183,484
-
183,484
CHARITY
£
311,993
(22,000)
(2,048)
287,945
Restricted
Funds
£
-
-
105,127
-
105,127
-
-
95,106
-
95,106
CHARITY
£
362,495
(198,000)
(17,480)
147,015|Endowment
Funds
Total
£
£
19,043,268
19,423,195
15,872,785
17,816,869
(1,297,584)
3,102,335
(744,309)
(744,789)
32,874,160
39,597,610
-
15,830
13,742,681
13,742,681
(8,346)
447,253
-
-
13,734,335
14,205,764
Endowment
Funds
Total
£
£
19,443,131
19,845,945
16,728,089
18,782,605
(1,324,793)
2,647,750
(743,334)
(768,238)
34,103,093
40,508,062
-
11,517
14,495,336
14,495,336
(23,766)
230,783
-
(23,945)
14,471,570
14,713,691|
53
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
_____________________________________________________________________________
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 25. Pension schemes
## Scottish Voluntary Sector Pension Scheme (SVSPS) and Growth Plan Series 3 (GP3)
The company participates in the schemes, multi-employer schemes which provide benefits to some 82 (SVSPS) and 638 (GP3) non-associated employers. The schemes are defined benefit schemes in the UK. It is not possible for the group to obtain sufficient information to enable it to account for the schemes as defined benefit schemes. Therefore it accounts for the schemes as defined contribution schemes.
The schemes are subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The schemes are classified as a 'last-man standing arrangement'. Therefore the group is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficits following withdrawal from the schemes. Participating employers are legally required to meet their share of the scheme deficits on an annuity purchase basis on withdrawal from the schemes.
Full actuarial valuations for the schemes were carried out with an effective date of 30 September 2020. These valuations showed assets of £153.3m (SVSPS) and £800.3m (GP3), liabilities of £160.0m (SVSPS) and £831.9m (GP3) giving deficits of £6.7m (SVSPS) and £31.6m (GP3). To eliminate these funding shortfalls, the Trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the schemes as follows:
## Deficit contributions (for the Schemes as a whole)
## SVSPS
From 1 April 2022 to 31 May 2024: £1,507,960 per annum
Some employers have agreed concessions (both past and present) with the Trustee and have contributions up to 29 February 2028.
## GP3
From 1 April 2022 to 31 January 2025: £3,312,000 per annum
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies All contributions are payable monthly and increasing by 3% each year on 1 April.
54
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
_____________________________________________________________________________
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 25. Pension schemes (continued)
Note that the schemes’ previous valuations were carried out with an effective date of 30 September 2017. These valuations showed assets of £120.0m (SVSPS) and £794.9m (GP3), liabilities of £145.9m (SVSPS) and £926.4m (GP3) giving deficits of £25.9m (SVSPS) and £131.5m (GP3). To eliminate these funding shortfalls, the Trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the schemes as follows:
## Deficit contributions (for the Schemes as a whole)
## SVSPS
£1,404,638 per annum From 1 April 2019 to 30 September 2026: (payable monthly and increasing by 3% each on 1st April)
£136,701 per annum From 1 April 2019 to 30 September 2027: (payable monthly and increasing by 3% each on 1st April)
## GP3
From 1 April 2019 to 30 September 2025:
£11,243,000 per annum
(payable monthly and increasing by 3% each on 1st April)
The recovery plan contributions for SVSPS are allocated to each participating employer in line with their estimated share of the scheme liabilities. The recovery plan contributions for GP3 are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the schemes are in deficit and where the group has agreed to a deficit funding arrangement the group recognises liabilities for these obligations. The amounts recognised are the net present values of the deficit reduction contributions payable under the agreements that relate to the deficits. The present values are calculated using the discount rates detailed in these disclosures. The unwinding of the discount rates is recognised as a finance cost.
## Present values of provisions
**----- Start of picture text -----**
|||||
|---|---|---|---|
|31 March 2023|31 March 2022|31 March 2021|
|(£s)|(£s)|(£s)|
|Present value of provision – SVSPS|22,000|49,000|198,000|
|Present value of provision – GP3|2,048|3,212|17,480|
**----- End of picture text -----**
55
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 25. Pension schemes (continued)
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Reconciliation of opening and closing provisions|SVSPS|GP3|
|Period ended 31 March|Period ended 31 March|
|2023|2022|2023|2022|
|£'000|£'000|£|£|
|Provision at start of period|49|198|3,212|17,480|
|Unwinding of the discount factor (interest expense)|1|2|61|101|
|Deficit contribution paid|(27)|(36)|(1,170)|(4,423)|
|Remeasurements - impact of change in assumptions|(1)|(1)|(55)|(74)|
|Remeasurements - amendments to contrbn. schedule|-|(114)|-|(9,872)|
|Provision at end of period|22|49|2,048|3,212|
|Income and expenditure impact|SVSPS|GP3|
|Period ended 31 March|Period ended 31 March|
|2023|2022|2023|2022|
|£'000|£'000|£|£|
|Interest expense|1|2|61|101|
|Remeasurements - impact of change in assumptions|(1)|(1)|(55)|(74)|
|Remeasurements - amendments to contrbn. schedule|-|(114)|-|(9,872)|
**----- End of picture text -----**
## Assumptions
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|||||
|---|---|---|---|
|31 March 2023|31 March 2022|31 March 2021|
|% per annum|% per annum|% per annum|
|Rate of discount – SVSPS|5.40|2.30|0.86|
|Rate of discount – GP3|5.52|2.35|0.66|
**----- End of picture text -----**
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
## Deficit contributions schedules (for Bristol Charities)
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|SVSPS|GP3|
|31 March 2023|31 March 2022|31 March 2021|31 March 2023|31 March 2022|31 March 2021|
|£'000|£'000|£'000|£|£|£|
|Year 1|28|27|36|1,170|1,170|4,423|
|Year 2|4|28|37|975|1,170|4,556|
|Year 3|-|4|38|-|975|4,693|
|Year 4|-|-|39|-|-|4,028|
|Year 5|-|-|41|-|-|-|
|Year 6|-|-|21|-|-|-|
**----- End of picture text -----**
The group must recognise liabilities measured as the present value of the contributions payable that arise from the deficit recovery agreements and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive group’s balance sheet liabilities.
56
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 26. Commitments
## a) Capital commitments
At the year-end there were contractual agreements in place for capital works to be undertaken after the year end at almshouse properties as follows;
|GROUP
Works at Haberfield House, Stockwood
Total Group capital commitments|2023
£
-
-|2022
£
46,670|
|---|---|---|
|||46,670|
All capital commitments were in subsidiary entities and none were in the parent Charity.
## b) Operating commitments
Total operating lease commitments due in future years at the balance sheet date were;
|GROUP AND CHARITY
Due not later than one year
Due between one and five years
Total Group and Charity operating commitments|2023
£
1,285
-
1,285|2022
£
1,285
1,285|
|---|---|---|
|||2,570|
## c) Other financial commitments
On 1 April 2021 the Bristol Charities group entered into a 36-month contract for Facilities Management Services. The Group’s and Parent Charity’s commitments to this contract at the balance sheet date are;
|GROUP
Due not later than one year
Due between one and five years
Total Group commitments
CHARITY
Due not later than one year
Due between one and five years
Total Charity commitments|2023
£
41,676
-
41,676
2023
£
3,820
-
3,820|2022
£
36,000
36,000|
|---|---|---|
|||72,000
2022
£
3,300
3,300|
|||6,600|
57
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 27. Principal subsidiaries
Bristol Charities has three principal subsidiaries which have been consolidated into these group financial statements. These are Orchard Homes (registered charity number 1109141/17), William Jones’s Almshouse Charity (registered charity number 230514) and Orchard Homes Design and Build Ltd (registered company number 09864047).
Orchard Homes (OH) is a registered social landlord and also a registered charity. It is a provider of almshouse accommodation for older people in Bristol and operates solely in the UK. It has no share capital and is included on the basis of a uniting direction issued by the Charity Commission dated 20 May 2005. Orchard Homes is under the sole control of Bristol Charities.
William Jones’s Almhouse Charity (WJA) is a registered charity and a provider of almshouse accommodation for older people in Monmouth. It is consolidated as it is under the sole control of Bristol Charities, with Bristol Charities being its sole corporate Trustee.
Orchard Homes Design and Build Ltd (OHDB) was incorporated on 9 November 2015 to provide design and construction services to Orchard Homes. Bristol Charities owns 100% of the share capital of Orchard Homes Design and Build Ltd.
The income, expenditure and gains for each subsidiary for the years ended 31 March 2023 and 31 March 2022 are as follows;
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|2023|2022|
|OH|WJA|OHDB|OH|WJA|OHDB|
|£|£|£|£|£|£|
|Income|1,571,726|210,553|467,575|1,482,728|205,209|235,807|
|Expenditure|(1,848,934)|(340,187)|(461,642)|(1,506,508)|(244,351)|(233,122)|
|-|-|
|Other gains and transfers|(110,477)|(771)|(124,567)|(1,447)|
|Movement in funds for the year|(387,685)|(130,406)|5,933|(148,347)|(40,589)|2,685|
**----- End of picture text -----**
The total year end reserves for each subsidiary for the years ended 31 March 2023 and 31 March 2022 were as follows;
**----- Start of picture text -----**
||||
|---|---|---|
|2022|2021|
|£|£|
|OH|21,661,831|22,044,516|
|WJA|1,155,254|1,285,660|
|OHDB|5,934|2,686|
**----- End of picture text -----**
## 28. Ultimate controlling parties
Ultimate control is held by the Trustees of Bristol Charities as listed in the Reference and Administrative Details.
58
## Bristol Charities
Annual Accounts for Year Ended 31 March 2023
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 29. Related party transactions
The Charity has taken advantage of the exemption under Section 33 of FRS102 not to disclose transactions within entities whose voting rights are 100% wholly controlled within Bristol Charities group.
During the year the charity received £12,000 in grant income from Feeding Bristol (registered charity number 1177585), a charity of which J Mines, CEO of Bristol Charities, is a trustee.
## 30. Statement of Financial Activities – prior year
|Income and Endowments
Donations and legacies
Charitable activities
Investment income
Other incoming resources
Grants, including capital grants
Total
Expenditure
Charitable Activities
Investment Management Expenditure
Other expenditure
Total
Gains / (losses) on investments
Net income / (expenditure)
Gross transfers between funds
Other recognised gains and losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Fund balances carried forward
Actuarial (losses) / gains on defined
benefit pension schemes|Unrestricted
Restricted Endowment
Funds
Funds
Funds
2022
£
£
£
£
9,491
-
-
9,491
1,320,927
-
-
1,320,927
349,992
399,650
-
749,642
17,570
3,087
-
20,657
-
-
-
-
1,697,980
402,737
-
2,100,717
(1,335,668)
(381,241)
(379,870) (2,096,779)
(218,317)
-
-
(218,317)
-
(3,400)
-
(3,400)
(1,553,985)
(384,641)
(379,870)
(2,318,496)
(176,736)
-
355,376
178,640
(32,741)
18,096
(24,494)
(39,139)
18,559
(18,559)
-
-
124,946
-
-
124,946
-
110,764
(463)
(24,494)
85,807
6,189,078
105,590
34,127,587
40,422,255
6,299,842
105,127
34,103,093
40,508,062|2021
£
1,383
1,208,727
478,055
257,472
-|
|---|---|---|
|||1,945,637
(1,963,501)
-
(2,967)|
|||(1,966,468)
2,694,597|
|||2,673,766|
|||-
(9,598)
-|
|||2,664,168
37,758,087|
|||40,422,255|
59
Annual Accounts for Year Ended 31 March 2023
## Bristol Charities
## Notes to the Financial Statements for the Year Ended 31 March 2022
|31. Funds – prior year|||||
|---|---|---|---|---|
|ENDOWMENT FUNDS
Grant-giving charities;
Relief in Need Charity
Relief in Sickness & Disability Charity
Educational charities
Barry T Jones Fund
Miss E M Merchant Trust
Dr Owen's Charity
Rev Dr T White's Essex Estates
Rev Dr T White's Gray's Inn Lane Trust
Total Endowment Funds of the Charity
Almshouse charities;
Orchard Homes
William Jones's Almshouse Charity
Total Endowment Funds of the Group
RESTRICTED FUNDS
Grant-giving charities;
Relief in Need Charity
Relief in Sickness & Disability Charity
Educational charities
Barry T Jones Fund
Miss E M Merchant Trust
Dr Owen's Charity
Rev Dr T White's Essex Estates
Rev Dr T White's Gray's Inn Lane Trust
Total Restricted Funds of the Charity
William Jones's Almshouse Charity
Total Restricted Funds of the Group
UNRESTRICTED FUNDS
Of the Charity
Of other group entities
Total Unrestricted Funds of the Group
TOTAL FUNDS
Of the Charity
Of the Group|At 1 April
2021
£
7,222,608
3,035,673
180,228
527,502
492,493
2,590,022
66,947
51,442
14,166,916
18,833,064
1,127,607
34,127,587
87,348
(32,910)
3,754
3,563
26,227
(1)
-
-
87,981
17,609
105,590
At 1 April
2021
£
(4,616)
6,193,694
6,189,078
14,250,281
40,422,255|Total
income
£
-
-
-
-
-
-
-
-
-
-
-
-
203,748
85,636
5,084
14,881
13,893
73,064
1,889
1,451
399,646
3,091
402,737
Total
income
£
15,623
1,682,357
1,697,980
415,269
2,100,717|Total
expenditure
£
-
-
-
-
-
-
-
-
-
(355,440)
(24,430)
(379,870)
(185,101)
(89,572)
(3,675)
(16,235)
(21,535)
(61,612)
(1,889)
(1,451)
(381,070)
(3,571)
(384,641)
Total
expenditure
£
11,062
(1,565,047)
(1,553,985)
(370,008)
(2,318,496)|Gains and
At 31 March
transfers
2022
£
£
155,318
7,377,926
65,281
3,100,954
3,876
184,104
11,344
538,846
10,591
503,084
55,697
2,645,720
1,441
68,388
1,106
52,549
304,653
14,471,570
50,722
18,528,346
-
1,103,177
355,375
34,103,093
(36,846)
69,149
36,846
(0)
-
5,163
-
2,209
-
18,585
(11,451)
-
-
-
-
-
(11,451)
95,106
(7,108)
10,021
(18,559)
105,127
Gains and
At 31 March
transfers
2022
£
£
124,946
147,015
(158,177)
6,152,827
(33,231)
6,299,842
418,148
14,713,692
303,586
40,508,062|
60