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2021-04-05-accounts

Charity No. 1115791

RICHARDSON BROTHERS FOUNDATION

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

5 APRIL 2021

RICHARDSON BROTHERS FOUNDATION

COMPANY INFORMATION

Life Patron R N Richardson
Trustees C A Richardson
M F Richardson
L S Richardson
Charity Registered Number 1115791
Principal Office 4 Birchley Industrial Estate
Birchfield Lane
Oldbury
B68 1DT
Independent Examiner Mr S Atkins FCA
Cooper Parry Group Limited
Sky View
Argosy Road
East Midlands Airport
Derby
DE74 2SA
Bankers Coutts & Co
440 Strand
London
WC2R 0QS

RICHARDSON BROTHERS FOUNDATION

CONTENTS

Trustees’ report 1
Independent examiner’s report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7

RICHARDSON BROTHERS FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2021

The Trustees present their annual report together with the financial statements of Richardson Brothers Foundation (the charity) for the year ended 5 April 2021. The Trustees confirm that the annual report and financial statements of the charity comply with the Charities Act 2011, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities," applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Objectives and Activities

The objectives of the charity are to advance for the public benefit any purpose which is exclusively charitable at law.

The charity achieves its objectives by making grants to charitable causes and preference is given to applications from causes local to the West Midlands.

The Trustees and the Life Patron have appraised the aims and objectives of the charity and in making the considerations the Trustees have given due regard to the guidance on public benefit published by the Charity Commission.

Donations made during the year are once again spread over a diverse number of headings, educational, armed forces, local communities, children and young people, medical and environmental causes.

In 2022 it is the intention of the Trustees to instigate a full review of the Foundation’s model, with a view to further enhancing its ability to make the most positive possible impact on charitable causes.

Grant making policy

The Foundation has established its grant making policy to achieve its objects for the public benefit. We review the grant making policy annually to ensure that it reflects the charity’s objects and ensures that grants are made to individuals and organisations in line with the Trustee’s wishes.

Achievements and performance

Review of Activities

During the year, the Charity made charitable donations totalling £69,236 (2020: £87,577) to organisations that are aligned to the objectives of the charity.

Investment policy and performance

The Trustees continue to regularly review their investment policy to ensure that it still meets the aims of low risk investment and safeguarding of the charity’s capital.

Plans for the future

With the Covid-19 pandemic the Trustees are mindful that there will be a large number of organisations which will be requiring assistance to alleviate the effects of the pandemic on individuals who have been directly affected.

The Trustees are looking at organisations to which grants can be made which would have a significant impact to help them in these difficult times.

1

RICHARDSON BROTHERS FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2021

Financial review

Income from investments has increased this year from £238,646 to £270,468

Total funds at the year-end were £3,154,584 compared to £3,100,830 in 2020.

Reserves policy

The trustees aim to maintain the free reserves in unrestricted funds at a level which will provide sufficient funds to respond to applications for grants and ensure that support and governance costs are covered.

Risk management

Trustees keep under review the major operations and strategic risks to which the charity is exposed and are satisfied that systems are in place to mitigate any such risks.

Specifically with regards to the Covid-19 pandemic, to date this has had no material impact on the operations of the Trust. The Trustees continue to assess any future impact the pandemic may have and remain of the opinion that the Foundation is strongly positioned to handle any downturn in investment values that might arise. The Foundation has minimal operating costs and relies on investment income to fund its grant making activities. The Foundation is able to flex its grant awards in the event that investment income takes a downturn.

Structure, governance and management

The Charity is governed by a Trust Deed dated 1 August 2006 and is a registered charity, number 1115791.

The Trust Deed was made by the first three Trustees, C A Richardson, M F Richardson and L S Richardson.

The charity may have such number of Patrons as the Trustees shall determine is appropriate. One of the first Patrons of the Foundation, R N Richardson, has been appointed for life.

Method of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

Organisational structure and decision making

All matters of policy and management are determined by the Trustees who meet on a monthly basis. The Trustees are not, and have never been, remunerated for their role and no expenses are paid by the charity to or for any of the Trustees.

2

RICHARDSON BROTHERS FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2021

Statement of Trustees’ responsibilities for the financial statements

The trustees are responsible for preparing the Trustee’s Report and the 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 & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees on 27 January 2022 and signed on their behalf, by:

3

RICHARDSON BROTHERS FOUNDATION

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF RICHARDSON BROTHERS FOUNDATION FOR THE YEAR ENDED 5 APRIL 2021

I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2021 which are set out on pages 5 to 13.

Responsibilities and basis of report

As the charity’s 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 charity’s accounts carried out under section 145 of the 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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  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.

Date: 3 February 2022

Simon Atkins FCA Partner

Cooper Parry, Sky View, Argosy Road, East Midlands Airport, Derby, DE74 2SA.

4

RICHARDSON BROTHERS FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
Endowment
funds
2021
£
Unrestricted
funds
2021
£
Income from:
Donations
2
-
-
Investments
3
-
270,468
_
_
Total income
-
270,468
_
_
Expenditure on:
Charitable activities
4
-
110,270
_
_
Total expenditure
-
110,270
_
_
Losses on investment assets
8
(106,444)
-
_
_
Net (expenditure)/ income
(106,444)
160,198
Transfers between funds
238,000
(238,000)

Net movement in funds
131,556
(77,802)
Reconciliation of funds:
Total funds brought forward (restated)
2,614,934
485,896
_
_
Total funds carried forward
2,746,490
408,094

 Total
2021
£
-
270,468
_
270,468
_
110,270
_
110,270
_
(106,444)
_
53,754
-
53,754
3,100,830
_
3,154,584
 Total
funds
2020
£
1,540
238,646
_
240,186
_
100,518
_
100,518
_
(27,650)
_
112,018
-
112,018
2,988,812
_
2,988,812

The notes on pages 7 to 13 form part of these financial statements.

5

RICHARDSON BROTHERS FOUNDATION

BALANCE SHEET AS AT 5 APRIL 2021

2021
Note
£
Fixed assets
Investments
8
Current assets
Debtors
9
64,049
Cash at bank and in
hand
360,039
_
424,088
Creditors:amounts
falling due within one
year
10
(80,961)
_
Net current assets
Net assets
Charity Funds
Endowment funds
11
Unrestricted funds
11
Total funds		 2020
£
£
£
2,811,457
2,679,901
73,687
447,735
_
521,422
(100,493)
_
343,127
420,929
_
_
3,154,584
3,100,830
_
_
2,746,490
2,614,934
408,094
485,896
_
_
3,154,584
3,100,830
_
_

The financial statements were approved by the Trustees on 27 January 2022 and signed on their behalf, by:

The notes on page 7 to 13 form part of these financial statements.

6

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The charity constitutes a public benefit entity as defined by FRS 102. 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to the accounts.

1.2 Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements.

The trustees have assessed the impact of the Coronavirus pandemic on the Foundation and are confident that the Foundation has sufficient resources to continue to operate for a period of at least 12 months from the date of signing these financial statements. Accordingly, the financial statements have been prepared on a going concern basis as no material uncertainties exist.

1.3 Fund Accounting

General Funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Expendable Endowment Funds were established in 2006 by a gift from the Richardson family. Further gifts were made in 2007. The terms of the fund allow the income to be accumulated and the capital to be spent as the trustees determine.

1.4 Incoming Resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the funds, after any performance conditions have been met, the amount can be measured reliably, and it is probable the income will be received.

1.5 Resources Expended

Expenditure is accounted for on an accruals basis and classified by activity. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. The costs of each activity are made up of a total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

7

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Support costs are those costs incurred directly in support of expenditure on the objects of the Charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

1.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transactions cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, where realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments in the Statement of Financial Activities

1.7 Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains/(losses) on investments’ in the SoFA. No depreciation is charged on investments properties in accordance with the Charities SORP.

1.8 Cash at bank

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.9 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.10 Taxation

Richardson Brothers Foundation meets the definition of charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charity for UK corporation tax purposes.

8

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. Income from donations and legacies

Endowment
Funds
2021
£
Unrestricted
Funds
2021
£
Donations
-
-
_
_
In 2020, all income from donations related to unrestricted funds.
3.
Investment Income
Endowment
Funds
2021
£
Unrestricted
Funds
2021
£
Dividends received, bank and
other interest
Investment property rental income
-
-
3,600
266,868
_
_
-
270,468
_
_
In 2020, all investment income related to unrestricted funds.
4.
Charitable activities
Donations
To
institutions
£
To
individuals
£
Armed Forces related
1,600
-
Local community
27,250
-
Children and young people
13,000
-
Medical
14,386
-
Other
7,500
5,500
_
_
63,736
5,500
_
_
Support costs
Repairs		 Total
Funds
2021
£
-
_
Total
Funds
2021
£
3,600
266,868
_
270,468
_
2021
£
1,600
27,250
13,000
14,386
13,000
_
69,236
8,854
32,180
_
110,270
 Total
Funds
2020
£
1,540
_
Total
Funds
2020
£
3,413
235,233
_
238,646
_
2020
£
5,600
13,500
23,502
13,575
31,400
_
87,577
12,941
-
_
100,518
_
_

__
_

In the year two grants were made to individuals (2020: no grants).

9

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

4
Charitable activities (continued)
Significant institutional grants
include:
Omberseley Spire and Church Appeal
Help to Make Tummies Full
Cayo Foundation
Lord Mayor of Manchester appeal
University of Wolverhampton (Bursary)
Queen Elizabeth Hospital Charity
The Meadows School
5.
Support costs
Governance
£
Independent examination
Employment costs (see note 6)
2,400
6,437
Other governance costs
17
_
8,854
__		 2021
£
12,500
5,000
-
-
-
-
-
_
Total
2021
£
2,400
6,437
17
_
8,854
__
2020
£
-
10,000
5,000
5,000
7,500
10,000
__
Total
2020
£
2,400
-
10,541
_
12,941
______

6. Analysis of staff costs and remuneration of key management personnel

Salaries and wages
Social security costs		 2021
£
5,323
1,114
_
6,437
_		 2020
£
-
-
_
-
_

The average number of employees during the year was one (2020: nil) with all employee time involved in providing either support to the governance of the charity or support services to charitable activities.

The Foundation considers its key management personnel to be the trustees. During the year, no Trustees received any remuneration, benefits or reimbursement of expenses (2020: £Nil).

10

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

7. Independent examiner’s fee

The Independent Examiner’s fee includes the cost of preparation of accounts and a fee for independent examination totalling £2,400 (2020: £2,400).

8. Fixed asset investments

Listed
securities
£
Investment
property
Other
investments
£
Market value
At 6 April 2020
165,626
2,449,308
64,967
Additions
400,000
-
-
Disposals
-
(162,000)
-
Revaluations
(619)
(105,825)
-
_
_
_
At 5 April 2021
565,007
2,181,483
64,967
_
_
_
Historical cost
600,254
2,287,308
64,967
_
_
_
Investments
at
market
value
comprise:
2021
£
Investment property
Listed investments
2,181,483
565,007
Other fixed asset investments
64,967
_
Total market value
2,811,457
_
All the fixed asset investments are held in the UK.
9.
Debtors
2021
£
Trade debtors
Other debtors
64,049
-
_
64,049
__		 Total
£
2,679,901
400,000
(162,000)
(106,444)
_
2,811,457
_
2,952,529
_
2020
£
2,449,308
165,626
64,967
_
2,679,901
__
2020
£
61,289
12,398
_
73,687
_

11

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

10. Creditors: Amounts falling due within one year Creditors: Amounts falling due within one year Creditors: Amounts falling due within one year 2021 2021 2020
£ £
Accruals and deferred income 53,561
62,102
VAT 11,187
11,941
Other creditors 16,213
26,450
_
_
80,961
100,493
_
_
11. Statement of funds Brought Gains/ Carried
(current year) Forward Income Expenditure Transfer (Losses) Forward
06/04/20 05/04/21
(as
restated) £ £ £ £ £
£
Unrestricted funds
General funds 485,896 270,468 (110,270) (238,000) - 408,094
__ __ __ __ __ __
Endowment funds
Endowment funds 2,614,934 - - 238,000 (106,444) 2,746,490
__ __ __ __ __ __
Total funds 3,100,830 270,468 (110,270) - (106,444) 3,154,584
__ __ __ __ __ __
The expendable endowment fund was established in 2006 by a gift from the Richardson family. Further
gifts were made in 2007. The terms of the fund allow the income to be accumulated and the capital to
be spent as the trustees determine.
Statement of funds Brought Gains/ Carried
(prior year) Forward Income Expenditure Transfer (Losses) Forward
06/04/19 05/04/20
(as
restated) £ £ £ £ £
£
Unrestricted funds
General funds 388,843 240,186 (100,518) (42,615) - 485,896
__ __ __ __ __ __
Endowment funds
Endowment funds 2,599,969 - - 42,615 (27,650) 2,614,934
__ __ __ __ __ __
Total funds 2,988,812 240,186 (100,518) - (27,650) 3,100,830
__ __ __ __ __ __

12

RICHARDSON BROTHERS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

12. Analysis of net assets between funds – current year

Endowment
funds
2021
£
Unrestricted
funds
2021
£
Fixed asset investments
2,746,490
64,967
Current assets
-
424,088
Creditors due within one year
-
(80,961)
_
_
2,746,490
408,094
_
_
Analysis of net assets between funds – prior year (as restated)
Endowment
funds
2020
£
Unrestricted
funds
2020
£
Fixed asset investments
2,614,933
64,968
Current assets
-
521,422
Creditors due within one year
-
(100,493)
_
_
2,614,933
485,896

 Total
funds
2021
£
2,811,457
424,088
(80,961)
_
3,154,584
_
Total
funds
2020
£
2,679,901
521,422
(100,493)
__
3,100,830

Prior year restatement

The prior year comparatives have been restated to more accurately reflect the underlying assets held in the endowment fund (being the listed securities and the investment property). The overall balance sheet total as reported in both the 2019 and 2020 accounts has not been adjusted.

13. Related Party Transactions

During the year, the Trustees disposed of a 6% interest in the investment property for consideration of £162,000 to a related party (being six children of the Trustees).

During the year, the charity employed a family member of the Trustees at a market rate salary on a short-term temporary contract.

13