2021-05-31-accounts - F G Charitable Trust

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CHARITY REGISTRATION NUMBER: 1114079

FG CHARITABLE TRUST Unaudited Financial Statements 31st May 2021

GRIFFITHS & PEGG LIMITED

Chartered Accountants 3 Hagley Court South Waterfront East Level Street Brierley Hill DY5 1XE

FG CHARITABLE TRUST

Financial Statements

Year ended 31st May 2021

	Pages
Trustees' annual report	1 to 4
Independent examiner's report to the trustees	5
Statement of financial activities	6
Statement of financial position	7
Notes to the financial statements	8 to 15

Page 1

FG CHARITABLE TRUST

Trustees' Annual Report

Year ended 31st May 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31st May 2021.

Reference and administrative details

Registered charity name	FG CHARITABLE TRUST
Charity registration number	1114079
Principal office	261A CHARNWOOD ROAD
	LOUGHBOROUGH
	LEICESTERSHIRE
	LE12 9NW
The trustees
	Mr G Billage
	Mr M Billage
	Mr I Billage
	Mrs B Billage
	Mrs P Abrey
	Mr B Bland
	Mrs M Bland
	Mr G Smith
	Mrs S Smith
	Mrs S Billage
Independent examiner	Adrian Grainger, on behalf of Griffiths & Pegg Limited
	3 Hagley Court South
	Waterfront East
	Level Street
	Brierley Hill
	DY5 1XE

Page 2

FG CHARITABLE TRUST

Trustees' Annual Report (continued)

Year ended 31st May 2021

Structure, governance and management

The Trust was established by a charitable trust deed on 14 March 2006.

The trustees who served during the year and up to the date of signature of the financial statements were:

Gordon Billage Mark Billage Barbara Billage Bryan Bland Ian Billage Pamela Abrey Margaret Bland Grant Smith Susan Smith Shirley Billage

The trustees are appointed by a resolution of a meeting of the trustees.

The Trustees conduct the affairs of the Charity in such manner as they may consider appropriate. and may make such arrangements in relation to the administration of the Charity as they consider advisable. Decisions taken by a majority of Trustees at any duly constituted meeting are valid and binding on all trustees.

Objectives and activities

The Trust objectives are:

the relief of poverty, distress or suffering by the use of grants to appropriate Christian organisations to provide assistance (whether medical, rehabilitative financial or other) in any part of the world and in particular (but without prejudice to the generality of the foregoing) by provision of aid to the needy in Africa, South America, the Indian sub-continent and eastern Europe whether victims of:
(a) breaches of human rights;
(b) any public calamity (including famine, earthquake or pestilence);
(c) war or civil disturbance;
(d) the immediate or continuing effects of lack of natural or other resources; or
(e) any other cause of poverty distress or suffering.
the promotion and advancement of the Christian faith, the worship of God and the spreading of the gospel of the Lord Jesus Christ.

There has been no change in these policies or objectives during the year. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.

Page 3

FG CHARITABLE TRUST

Trustees' Annual Report (continued)

Year ended 31st May 2021

Achievements and performance

Income for FG Charitable Trust is via invested capital managed by a specialist company dealing with many charities and listed companies over a wide spread of industries and countries, plus investments in property in the UK and via Impact Investment projects in Kenya through two separate funds. Investments are reviewed on a regular basis and via an annual meeting with the Account Director of the specialist company involving at least 2 or 3 trustees.

Income from our Kenyan investments continues to be impacted by the COVID pandemic, however the outlook remains strong, but our investments are likely to be realised in the mid to long term rather than the short term. There are three properties in the UK that the Trust has an interest in. One is by way of shared ownership with the value being realised on sale of the property, the other two are by way of term loans being repaid monthly over a period of years. Income from these properties is distributed to projects as is the dividend income from the other investments.

Disbursements have continued to focus on supporting organisations that work with Children & Young People as well as the Poor & Needy. The Trust also supports several Church and Community projects. As trustees we aim to support smaller charities where we can make a greater difference, rather than larger organisations where they receive funds from a wider base of contributors. An approximate indication of regions and particular needs supported, is shown below.

Funds allocated during the past 12 months were on the following basis:

	2020/21	2019/20
Overseas Projects	76.0%	60.0%
• Africa	23.0%	20.0%
• Asia	42.0%	30.0%
• Middle East	6.5%	6.0%
• Europe (Exc. UK)	2.5%	3.0%
• South America	2.0%	0.0%
• Rest of World	0.0%	1.0%
UK Projects	20.0%	32.0%
Overheads	4.0%	8.0%
Disbursable funds were allocated to the following areas of need:
	2020/21	2019/20
• Children, Young People, Schools & Colleges	48.3%	41.0%
• Work amongst poor, needy, vulnerable & abused	20.2%	21.0%
• Hospitals & Disaster Relief	10.5%	0.0%
• Church & Community Projects	17.2%	34.5%
• Literature Distribution	3.8%	3.5%

Overseas visits or meetings with representatives have not been possible due to the impact of COVID restrictions. However regular contact has been maintained wherever possible.

Overheads continue to be at a normal level this year.

Page 4

FG CHARITABLE TRUST

Trustees' Annual Report (continued)

Year ended 31st May 2021

Financial review

As in the previous year, the trust continued its support worldwide making a number of charitable donations to countries in many parts of the world.

The financial objectives of the charity are largely dependant on world markets, and the effectiveness with which funds in the investment portfolio are managed. As noted above, this risk is mitigated by wider spread investment in lower risk investments.

The treasurer will maintain a positive bank balance at all times from which allocations will be made. Regular income from investments is received on monthly, quarterly and 6 monthly basis and the trustees will ensure that distributions will always be confined to that available from current funds in hand.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of receipt.

The trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Given the uncertain state of the world markets, the trustees plan on continuing with a restrained approach to investment based on lower risk investments with certain but limited returns, with the exception of the investments in Kenya mentioned above, which, although of a riskier nature, are providing benefit through the effect of impact investment.

The trustees' annual report was approved on 7th October 2021 and signed on behalf of the board of trustees by:

Mr M Billage Trustee

Page 5

FG CHARITABLE TRUST

Independent Examiner's Report to the Trustees of FG CHARITABLE TRUST

Year ended 31st May 2021

I report to the trustees on my examination of the financial statements of FG CHARITABLE TRUST ('the charity') for the year ended 31st May 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements 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:

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the financial statements do not accord with those records; or
the financial statements 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.

Adrian Grainger, on behalf of Griffiths & Pegg Limited Independent Examiner

3 Hagley Court South Waterfront East Level Street Brierley Hill DY5 1XE

7th October 2021

Page 6

FG CHARITABLE TRUST

Statement of Financial Activities

Year ended 31st May 2021

			2021		2020
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	–	3,250	3,250	6,068
Investment income	5	202,044	–	202,044	224,425
		--------------------------------	-----------------------	--------------------------------	--------------------------------
Total income		202,044	3,250	205,294	230,493
		================================	=======================	================================	================================
Expenditure
Expenditure on charitable activities	6,7	(235,964)	(2,250)	(238,214)	(217,604)
		--------------------------------	-----------------------	--------------------------------	--------------------------------
Total expenditure		(235,964)	(2,250)	(238,214)	(217,604)
		================================	=======================	================================	================================
Net gains on investments	8	782,775	–	782,775	275,127
		--------------------------------	-----------------------	--------------------------------	--------------------------------
Net income and net movement in	funds	748,855	1,000	749,855	288,016
		================================	=======================	================================	================================
Reconciliation of funds
Total funds brought forward		6,909,906	3,051	6,912,957	6,624,941
		-----------------------------------------	-----------------------	-----------------------------------------	-----------------------------------------
Total funds carried forward		7,658,761	4,051	7,662,812	6,912,957
		=========================================	=======================	=========================================	=========================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 8 to 15 form part of these financial statements.

Page 7

FG CHARITABLE TRUST

Statement of Financial Position

31st May 2021

		2021	2020
	Note	£	£
Fixed assets
Investments	12	7,313,447	6,630,122
Current assets
Debtors	13	174,070	185,458
Cash at bank and in hand		176,465	98,547
		--------------------------------	--------------------------------
		350,535	284,005
Creditors: amounts falling due within one year	14	(1,170)	(1,170)
		--------------------------------	--------------------------------
Net current assets		349,365	282,835
		-----------------------------------------	-----------------------------------------
Total assets less current liabilities		7,662,812	6,912,957
		-----------------------------------------	-----------------------------------------
Net assets		7,662,812	6,912,957
		=========================================	=========================================
Funds of the charity
Restricted funds		4,051	3,051
Unrestricted funds		7,658,761	6,909,906
		-----------------------------------------	-----------------------------------------
Total charity funds	15	7,662,812	6,912,957
		=========================================	=========================================

These financial statements were approved by the board of trustees and authorised for issue on 7th October 2021, and are signed on behalf of the board by:

Mr M Billage Trustee

The notes on pages 8 to 15 form part of these financial statements.

Page 8

FG CHARITABLE TRUST

Notes to the Financial Statements

Year ended 31st May 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 261A Charnwood Road, Loughborough, Leicestershire, LE12 9NW.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the

charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Page 9

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
legacy income is recognised when receipt is probable and entitlement is established.
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Page 10

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

3. Accounting policies (continued)

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Page 11

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

3. Accounting policies (continued)

Financial instruments (continued)

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Donations and legacies

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Donations
Donations and gifts	–	3,250	3,250
	==============	=======================	=======================
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Donations
Donations and gifts	180	5,888	6,068
	==============	=======================	=======================

Page 12

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

5. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Investment income	201,992	201,992	221,570	221,570
Interest receivable	52	52	2,855	2,855
	--------------------------------	--------------------------------	--------------------------------	--------------------------------
	202,044	202,044	224,425	224,425
	================================	================================	================================	================================
Expenditure on charitable activities by fund type
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2021
		£	£	£
Donations to Overseas		186,194	2,250	188,444
Donations to UK		51,556	–	51,556
Support costs		(1,786)	–	(1,786)
		--------------------------------	-----------------------	--------------------------------
		235,964	2,250	238,214
		================================	=======================	================================
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2020
		£	£	£
Donations to Overseas		132,808	2,837	135,645
Donations to UK		64,762	–	64,762
Support costs		17,197	–	17,197
		--------------------------------	-----------------------	--------------------------------
		214,767	2,837	217,604
		================================	=======================	================================

6. Expenditure on charitable activities by fund type

7. Expenditure on charitable activities by activity type

	Activities
	undertaken	Support	Total funds	Total fund
	directly	costs	2021	2020
	£	£	£	£
Donations to Overseas	188,444	6,317	194,761	150,435
Donations to UK	51,556	–	51,556	64,762
Governance costs	–	(8,103)	(8,103)	2,407
	--------------------------------	-----------------------	--------------------------------	--------------------------------
	240,000	(1,786)	238,214	217,604
	================================	=======================	================================	================================
Net gains on investments
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Gains on listed investments	782,775	782,775	275,127	275,127
	================================	================================	================================	================================

8. Net gains on investments

Page 13

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

9. Independent examination fees

	2021	2020
	£	£
Fees payable to the independent examiner for:
Independent examination of the financial statements	1,170	1,170
	=======================	=======================

10. Staff costs

The average head count of employees during the year was Nil (2020: Nil).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

11. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

12. Investments

	Other
	investments
	£
Cost or valuation
At 1st June 2020	6,630,122
Additions	–
Disposals	(99,450)
Fair value movements	782,775
	-----------------------------------------
At 31st May 2021	7,313,447
	=========================================
Impairment
At 1st June 2020 and 31st May 2021	–
	=========================================
Carrying amount
At 31st May 2021	7,313,447
	=========================================
At 31st May 2020	6,630,122
	=========================================
All investments shown above are held at valuation.

13. Debtors

	2021	2020
	£	£
Other debtors	174,070	185,458
	================================	================================

Page 14

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

14. Creditors: amounts falling due within one year

Accruals and deferred income

2021 2020 £ £ 1,170 1,170 ======================= =======================

15. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At 1st			Gains and	At 31st
	June 2020	Income	Expenditure	losses	May 2021
	£	£	£	£	£
General funds	6,909,906	202,044	(235,964)	782,775	7,658,761
	=========================================	================================	================================	================================	=========================================
	At 1st			Gains and	At 31st
	June 2019	Income	Expenditure	losses	May 2020
	£	£	£	£	£
General funds	6,624,941	224,605	(214,767)	275,127	6,909,906
	=========================================	================================	================================	================================	=========================================
Restricted funds
	At 1st			Gains and	At 31st
	June 2020	Income	Expenditure	losses	May 2021
	£	£	£	£	£
Restricted fund	3,051	3,250	(2,250)	–	4,051
	=======================	=======================	=======================	==============	=======================
	At 1st			Gains and	At 31st
	June 2019	Income	Expenditure	losses	May 2020
	£	£	£	£	£
Restricted fund	–	5,888	(2,837)	–	3,051
	==============	=======================	=======================	==============	=======================

Page 15

FG CHARITABLE TRUST

Notes to the Financial Statements (continued)

Year ended 31st May 2021

16. Analysis of net assets between funds

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Investments	7,313,447	–	7,313,447
Current assets	346,484	4,051	350,535
Creditors less than 1 year	(1,170)	–	(1,170)
	-----------------------------------------	-----------------------	-----------------------------------------
Net assets	7,658,761	4,051	7,662,812
	=========================================	=======================	=========================================
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Investments	6,630,122	–	6,630,122
Current assets	280,954	3,051	284,005
Creditors less than 1 year	(1,170)	–	(1,170)
	-----------------------------------------	-----------------------	-----------------------------------------
Net assets	6,909,906	3,051	6,912,957
	=========================================	=======================	=========================================