THE BIKO BOWCOTT CHARITABLE TRUST FOUNDATION
TRUSTEES' REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
Charity Registration No. 1113648
The Biko Bowcott Charitable Trust Foundation
Year Ended 5 April 2021
| CONTENTS | ||
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| Page | ||
| Trustees' Annual Report | 1 - | 3 |
| Independent Examiners' Report | 4 | |
| Statement of Financial Activities | 5 | |
| Balance Sheet | 6 | |
| Notes to the accounts | 7 - 10 |
The Biko Bowcott Charitable Trust Foundation Trustees' Annual Report for the year ended 5 April 2021
Charity Registration No. 1113648
The trustees present their report and accounts of the charity for the year ended 5 April 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 and comply with the charity's trust deed, Charities Act 2011 and the 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).
Trustees: Father George Guiver CR (on behalf of the Community of the Resurrection) Thomas James Ponsonby Ramsden Emma Juliet Geraldine Oliver Edward Alan Speight Revd Stephen Christopher Spencer
The above named individuals have served as trustees through both this year and the comparative year, except were indicated.
Charity Registration Number: 1113648
Charity Office: The College of the Resurrection Stocks Bank Road Mirfield WF14 0BW
Advisers:
Bankers Barclays Bank Plc 1 Churchill Place, London, E14 5HP Solicitors Ramsdens Solicitors LLP 7 King Street, Mirfield, WF14 8AW Accountants Forrest Burlinson 20 Owl Lane, Dewsbury, WF12 7RQ Investments Brewin Dolphin Securities 12 Smithfield St, London, EC1A 9BD
Purpose and work of the charity
The Trust was established by the Will of Anthony Richard Peter Stubbs who died on 17 October 2004. Probate was issued out of the Leeds District Probate Registry on 11 January 2005.
The trustees are to hold the capital and income of the residuary estate upon trust and to apply the income and all or such part of the capital at such time or times and in such a manner to, or for the purposes of the formation and continuing re-formation of the ordained ministry of the Church of the Province of Southern Africa, but with particular reference to that within the Dioceses comprising that area of South Africa known as the Eastern Cape, namely the Dioceses of Grahamstown, Port Elizabeth, Umzimvubu, Mthatha, Mbhashe and Khahlamba.
The Trust at present provides approximately 25% of the income of the College of the Transfiguration. The Trust privileges students from poorer backgrounds who would otherwise not be able to afford the training. The College does all it can with its limited resources to meet the huge need. Its provision of well-trained clergy for the Anglican Church in South Africa meets not only the Trust's aim of promoting religion, but there is also ample testimony to the contribution the Church in South Africa makes to the building of social capital amongst underprivileged people.
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The Biko Bowcott Charitable Trust Foundation Trustees' Annual Report for the year ended 5 April 2021
Charity Registration No. 1113648
Statement on Public Benefit
The trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties. The objects and related activities set out in this report demonstrate this in more detail.
Structure, governance and management
The Will instructed the trustees to conduct the affairs of the charity in such a manner as they consider appropriate and directed that they should, to carry out the objects of the charity in South Africa, appoint a Board of Management based in South Africa.
One of the trustees, Emma Oliver, is a member of the Board of Management.
The trustees have the power to appoint new trustees.
Policies and procedures adopted for the induction and training of trustees
The Trust recognises that it has a responsibility to provide guidance and assist new trustees in fulfilling their duties and responsibilities, this is done in accordance with Charity Commission guidance. New trustees are made aware of their legal obligations under charity law and the aims and objectives of the charity.
Risk management
The trustees have appraised the key risks of the charity, namely that of investment risk and that the charitable objects are carried out in South Africa. Work continues to be done to ensure that adequate controls exist to mitigate the effect of those identified risks.
Activities and policy on grants
The charity trustees make payments of income to the College of the Transfiguration in Grahamstown for distribution by the Board of Management in South Africa in accordance with the terms of the Charitable Trust set out above. Grants are at the discretion of the trustees and are decided based on requests and budgetary information provided by the Board of Management.
Achievements and performance
During the year the charity has paid £43,455 (2020: £42,000) directly to the College of the Transfiguration in Grahamstown in accordance with requests from the Board of Management. The allocation was used as follows:
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l Funding staffing at the College of the Transfiguration, including funding the post of Registrar (30%);
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l Distributions to the six Eastern Cape Dioceses (40%);
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l Distributions to the five poorest Dioceses (30%);
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l Meeting administration costs of the Board of Management in South Africa.
Financial review
The total income of the charity for the year was investment income of £33,481 (2020: £35,118). The net realised gains on investment sales in the year was £23,521 (2020: £41,507) and the movement on unrealised gains on the revaluation of investment assets was £360,550 (2020: loss £273,081).
Investment performance
The Covid-19 pandemic and its impact on investment markets has led to many companies cancelling or suspending dividends and a move to more defensive stocks that has resulted in reduced income. The trustees reported last year a significant reduction in the market value of the investments, and are pleased to report this year that the investments have recovered and made further gains.
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The Biko Bowcott Charitable Trust Foundation Trustees' Annual Report for the year ended 5 April 2021
Charity Registration No. 1113648
Investment policy and review
The investment policy of the charity trustees is classed by the Investment Brokers as "diversified risk" which seeks to provide income and capital growth from a balanced portfolio of investments. The value of investments held as at 5 April 2021 was £1,730,025 (2020: £1,379,549).
The historic cost of these investment assets was £1,289,896 (2020: £1,298,228).
Reserves policy
The charity trustees have at this time no intention of growing the level of capital reserves of the charity. Due to investment market changes the capital reserves of the charity may increase or decrease, so generally the charity trustees maintain the expenditure out of the income received, however when required part of the capital can be used to ensure the aims of the charity are met.
The balance in unrestricted funds as at 5 April 2021 was £1,739,960 (2020: £1,380,028).
Trustees' responsibilities in relation to the financial statements
The trustees are responsible for preparing a trustees' annual report and financial statements in
accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:
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l select suitable accounting policies and then apply them consistently;
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l observe the methods and principles in the applicable Charities SORP;
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l make judgements and estimates that are reasonable and prudent;
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l state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
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l prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approval
Approved by the Board of Trustees on 26 May 2021 and signed on their behalf by:
………………………………………………………………………. Father George Guiver CR Trustee, The Biko Bowcott Charitable Trust Foundation
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The Biko Bowcott Charitable Trust Foundation
Charity Registration No. 1113648
Independent Examiner's Report to the Trustees of The Biko Bowcott Charitable Trust Foundation
I report to the trustees on my examination of the accounts for the Biko Bowcott Charitable Trust Foundation for the year ended 5 April 2021, which are set out on pages 5 to 10.
Responsibilites and basis of report
As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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2) the accounts do not accord with those records; or
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3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Use of my report
This report is made solely to the charity's trustees, as a body. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, for this report, for the statements I have made, or for the opinions I have stated.
Signed:
……………………………………………………… dated ……………………... 2021 Ebrahim Suleman, Independent Examiner Member of the Institute of Chartered Accountants in England and Wales for and on behalf of Forrest Burlinson Chartered Accountants 20 Owl Lane, Shawcross, Dewsbury, WF12 7RQ
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Statement of Financial Activities for the year ended 5 April 2021
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Unrestricted Expendable
General Endowment Total Total
Fund Fund Funds Funds
2021 2021 2021 2020
Note £ £ £ £
Income from:
Investments 3 -- 33,481 33,481 35,118
Total income -- 33,481 33,481 35,118
Expenditure on:
Raising funds:
Investment management costs -- 13,205 13,205 13,189
Charitable activities: 4 44,415 -- 44,415 43,011
Total expenditure 44,415 13,205 57,620 56,200
Net income/(expenditure) before
investment gains/(losses) (44,415) 20,276 (24,139) (21,082)
Net gains/(losses) on investment assets 5 -- 384,071 384,071 (231,574)
Net income/(expenditure) (44,415) 404,347 359,932 (252,656)
Transfers between funds 44,415 (44,415) -- --
Net movement in funds -- 359,932 359,932 (252,656)
Reconciliation of funds:
Total funds brought forward -- 1,380,028 1,380,028 1,632,684
Total funds carried forward 10 -- 1,739,960 1,739,960 1,380,028
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There were no recognised gains or losses for the year ended 5 April 2020 or for the year ended 5 April 2021 other than those included in the Statement of Financial Activities above.
All incoming resources and resources expended derive from continuing activities.
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Balance Sheet as at 5 April 2021
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Total Total
2021 2020
Note £ £
Fixed Assets
Investments 6 1,730,025 1,379,549
1,730,025 1,379,549
Current Assets
Cash at bank and in hand 7 14,035 4,343
Total Current Assets 14,035 4,343
Creditors: amounts falling due within one year 8 (4,100) (3,864)
Net Current Assets 9,935 479
Net Assets 1,739,960 1,380,028
The funds of the charity:
Unrestricted Funds brought forward 1,380,028 1,632,684
Net movement in funds 359,932 (252,656)
10 1,739,960 1,380,028
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The notes on pages 7 to 10 form part of these accounts.
Approved by the trustees on 26 May 2021 and signed on their behalf by:
……………………………………………
Edward Alan Speight Trustee
The Biko Bowcott Charitable Trust Foundation
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Notes to the Financial Statements for the year ended 5 April 2021
1 Accounting policies
The Charity is a public benefit entity as defined by FRS 102.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
1.1 Basis of preparation of accounts
The accounts are presented in UK pounds, rounding to the nearest pound and prepared under the historical cost convention and include the results of operations which are described in the Trustees' Report, all of which are continuing.
The accounts have been prepared in accordance with the Statement of Recommended Practice: 'Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)' (the Charity SORP), and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland Section 1A (FRS 102 1A) and the Charities Act 2011 and applicable regulations.
1.2 Legal status
The charity is a charitable trust established by a Will at probate, it is managed by its trustees.
1.3 Recognition of income
Income is included in the Statement of Financial Activities when:
- l the charity becomes entitled to the resources; l it is more likely than not that the trustees will receive the resources; and l the monetary value can be measured with sufficient reliability.
Income and expenses are not offset, unless permitted by the Charity SORP or FRS 102.
1.4 Investment income
Interest and investment returns are recognised when receivable and the amount can be measured reliably, this is normally upon notification by the payer.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis, inclusive of VAT which cannot recovered and has been classified under headings that aggregate all costs related to the one activity of the charity. Grants are recognised as they are approved by the trustees and are payable, in practice this will usually be at the same time or only shortly before the grant is paid. There are no multi-year grants.
1.6 Allocation of support costs
All such costs incurred are governance costs which comprise the costs involving the public accountability of the charity and its compliance with regulation and good practice. The charity has one activity as detailed in the Trustees Annual Report therefore allocation of these costs between activities is unnecessary.
1.7 Investment gains and losses
This includes any realised gains or losses on the sale of investments and any gain or loss resulting from the revaluation of investments to market value at the balance sheet date.
1.8 Taxation
No corporation tax has been provided in these accounts because the trustees believe that the income and gains of the charity are within the exemptions granted by Chapters 2 and 3 of the Corporation Taxes Act 2010.
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Notes to the Financial Statements continued for the year ended 5 April 2021
1.9 Fixed asset investments
Investments are initially recognised at their transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals (if any) throughout the year. The charity does not use complex financial instruments as defined under the Charity SORP.
1.10 Financial instruments
Financial instruments are recognised in the group and the charity's balance sheets when the charity, or one of its subsidiaries, becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The charity has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities, including creditors, bank loans and other loans (if any) , are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.11 Going Concern
There are no material uncertainties about the charity's ability to continue as a going concern.
| 2 Fees to the independent examiner Independent examiner's fees 3 Investment Income Income from listed investments portfolio Interest 4 Cost of grant making Grants to the College of the Transfiguration in Grahamstown Accountancy fees Trustee expenses Bank charges (net of refunds for prior years) 5 Net gains/(losses) on investment assets Net realised gains on investment disposals Net unrealised gains/(losses) on investment assets |
2021 2020 £ £ 900 900 2021 2020 £ £ 33,468 35,047 13 71 33,481 35,118 2021 2020 £ £ 43,455 42,000 900 900 -- 86 60 25 44,415 43,011 2021 2020 £ £ 23,521 41,507 360,550 (273,081) 384,071 (231,574) |
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Notes to the Financial Statements continued for the year ended 5 April 2021
| 6 Investments Market Value as at start of year Additions at cost Disposals at carrying value Net gain/(loss) on revaluation Market Value as at 5 April Historical cost Classes of investments held Listed investments Cash held within the investment portfolio All investments are held and managed in the UK. 7 Cash at bank and in hand Barclays Bank accounts 8 Creditors: amounts falling due within one year Accruals |
2021 2020 £ £ 1,379,549 1,626,158 208,621 471,051 (242,215) (486,086) 384,070 (231,574) 1,730,025 1,379,549 1,289,896 1,298,228 1,712,249 1,358,012 17,776 21,537 1,730,025 1,379,549 2021 2020 £ £ 14,035 4,343 14,035 4,343 2021 2020 £ £ 4,100 3,864 |
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9 Grant commitments
Requests for funding are received from the Board of Management in South Africa. These requests are made on an annual basis for the year to 31 December, and following scrutiny and any amendment by the trustees, payment is usually made in January for the coming year. Hence the grant made for the calendar year 2021 is included in these accounts. No commitment is made for future years until requests are received.
| 10 Charitable funds brought forward as at 6 April 2020 income expenditure gains and losses transfers carried forward as at 5 April 2021 Represented by Fixed Asset Investments Net Current Assets |
Expendable Total General Endowment Unrestricted Fund Fund Funds 2021 2021 2021 £ £ £ -- 1,380,028 1,380,028 -- 33,481 33,481 (44,415) (13,205) (57,620) -- 384,071 384,071 44,415 (44,415) -- -- 1,739,960 1,739,960 -- 1,730,025 1,730,025 -- 9,935 9,935 -- 1,739,960 1,739,960 |
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Charity No. 113648
The Biko Bowcott Charitable Trust Foundation Notes to the Financial Statements continued for the year ended 5 April 2021
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Charitable funds - prior year Expendable Total
General Endowment Unrestricted
Fund Fund Funds
2020 2020 2020
£ £ £
brought forward as at 6 April 2019 -- 1,632,684 1,632,684
income -- 35,118 35,118
expenditure (43,011) (13,189) (56,200)
gains and losses -- (231,574) (231,574)
transfers 43,011 (43,011) --
carried forward as at 5 April 2020 -- 1,380,028 1,380,028
Represented by
Fixed Asset Investments -- 1,379,549 1,379,549
Net Current Assets -- 479 479
-- 1,380,028 1,380,028
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11 Trustee's remuneration and expenses and related party transactions
Trustees received no emoluments or other expense reimbursements in the year. There were no other transactions with related parties.
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