OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-04-05-accounts

Company registration number (England and Wales)

EARL OF CHESTER'S FUND

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

EARL OF CHESTER'S FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr RB Witter Mr RE Harries Mr NS Jenkins Mr RJS Lea Mr DO Pickering (retires 2024 AGM - eligible for re-election) Professor K Sykes Mr DC Starbuck-Edwards Major MG Huntriss Senior management RB Witter RE Harries Chairman NS Jenkins RSJ Lea Hon. Secretary. Retires 2024 AGM - eligible for re-election Charity number 1119422 Independent examiner John McLintock 2 Windmill Rise Upton Chester CH2 1HS

EARL OF CHESTER'S FUND

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4 - 5
Balance sheet 6
Notes to the financial statements 7 - 15

EARL OF CHESTER'S FUND

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2024

The trustees present their annual report and financial statements for the year ended 5 April 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Charities Act 2011 and "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).

Objectives and activities

The charity’s objectives are such charitable purposes (other than the advancement of religion) within the county of Cheshire (as constituted on the 1st January 1974), or for the benefit of persons ordinarily resident in the county (as so constituted) as the Trustees shall from time-to-time decide.

The Trustees have paid due regard to the guidance issued by the Charity Commissioners on public benefit in deciding what activities the charity shall undertake.

Twenty five (2023 - Seventeen) charitable donations were made in the current year. Others are under consideration for future periods.

Financial review

The net incoming resources for the year amounted to £199,058 (2023 - £261,365). Net income earned in the General Fund before donations totalled £100,171 (2023 - £65,476).

The funds available to carry forward comprise £2,653,223 as an Endowment Fund, £16,500 as a designated reserve and £133,415 as a general reserve.

Interest rates have remained low for several years until recently. Consequently, the trustees decided some years ago to invest the charity’s assets in domestic rental property, so as to provide the charity with a source of predictable income, as well as to allow for the potential for asset appreciation. The gross rental income received in the year was £145,155 (2023 - £109,533). The investment properties were revalued in 2020 resulting in a £371,228 revaluation gain. There were no gains on any investment properties held by the Charity in 2023. With interest rates rising in the last year, the trustees have decided to invest surplus funds in bank deposits. In 2023, the trustees also decided to invest in commercial property as a diversification from pure domestic rentals.

Gift Aided donations totalling £125,000 (after recovery of Gift Aid) (2023 - £155,000) were received in the year. Other donations received in the year to the General Fund totalled £Nil (2023 - £Nil). Donations received in the year to the Endowment Fund totalled £28,636 (2023 - £76,068). Donations made by the charity for charitable purposes in the year totalled £54,748 (2023 - £40,350).

Reserves Policy

It is the charity’s policy to maintain, as a minimum, unrestricted cash reserves sufficient to fund one year’s property costs.

Investment Policy

As noted, the trustees hold the charity’s funds in domestic and commercial properties and surplus funds are held on deposit.

Grant-making policy

The charity aims to distribute its annual net income each year (other than sums allocated to endowment funds or retained under the reserves policy).

Plans for future periods

The trustees do not expect any changes in the objectives of the charity in the forthcoming year. The level of activity by the charity is dependent upon the generosity of its donors and income generated by its assets. The key priorities for the future are to continue to support local charities and other worthwhile causes in Cheshire.

EARL OF CHESTER'S FUND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024

Structure, governance and management

· Constitution

The charity was established under a Trust Deed on 13[th] March 2007. It was registered as a charity on 30th May 2007. The Trust Deed sets out the objects and powers of the charity.

· Recruitment and Appointment of new Trustees

The committee consists of elected committee members. Committee members are elected at the charity’s Annual General Meeting.

· Organisational, Structural and Decision-making

The Trustees determine and execute the policies of the Trust.

New Trustees are advised of their roles and responsibilities when appointed. They are subsequently advised of suitable external induction and training courses.

A risk assessment is carried out as part of the organisational business plan, identifying and classifying risks and detailing measures to deal with these risks. The committee is satisfied that systems are in place to mitigate exposure to risks.

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

Mr RB Witter

Mr RE Harries

Mr NS Jenkins

Mr RJS Lea

Mr DO Pickering (retires 2024 AGM - eligible for reelection) Professor K Sykes Mr DC Starbuck-Edwards Major MG Huntriss

The trustees' report was approved by the Board of Trustees.

Mr RE Harries Chairman

23 October 2024

EARL OF CHESTER'S FUND

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EARL OF CHESTER'S FUND

I report to the trustees on my examination of the financial statements of Earl of Chester's Fund (the Charity) for the year ended 5 April 2024.

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.

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

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 financial statements to be reached.

John McLintock

2 Windmill Rise Upton Chester CH2 1HS 23 October 2024

EARL OF CHESTER'S FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2024

Current financial year
Unrestricted
Unrestricted
Endowment
funds
funds
funds
general
Property
maintenance
2024
2024
2024
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
-
-
153,636
Investments
4
12,954
-
-
Other income
5
146,374
-
-
Total income and
endowments
159,328
-
153,636
Expenditure on:
Raising funds
59,158
-
-
Charitable activities
54,748
-
-
Total expenditure
113,906
-
-
Net gains/(losses) on
investments
10
-
-
-
Net income and movement in
funds
45,422
-
153,636
Reconciliation of funds:
Fund balances at 6 April 2023
87,993
16,500
2,499,587
Fund balances at 5 April 2024
133,415
16,500
2,653,223
Total
2024
£
153,636
12,954
146,374
312,964
59,158
54,748
113,906
-
199,058
2,604,080
2,803,138
Total
2023
£
231,068
-
114,379
345,447
48,902
40,350
89,252
5,170
261,365
2,342,715
2,604,080

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

EARL OF CHESTER'S FUND

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2024

Prior financial year
Unrestricted
Unrestricted
Endowment
funds
funds
funds
general
Property
maintenance
2023
2023
2023
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
-
-
231,068
Other income
5
114,379
-
-
Total income and endowments
114,379
-
231,068
Expenditure on:
Raising funds
48,902
-
-
Charitable activities
40,350
-
-
Total expenditure
89,252
-
-
Net gains/(losses) on investments
10
-
-
5,170
Net income and movement in funds
25,127
-
236,238
Reconciliation of funds:
Fund balances at 6 April 2022
62,866
16,500
2,263,349
Fund balances at 5 April 2023
87,993
16,500
2,499,587
Total
2023
£
231,068
114,379
345,447
48,902
40,350
89,252
5,170
261,365
2,342,715
2,604,080

EARL OF CHESTER'S FUND

BALANCE SHEET

AS AT 5 APRIL 2024

Notes
Fixed assets
Investment property
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Net current assets
Total assets less current liabilities
The funds of the Charity
Endowment funds
15
Unrestricted funds - general
17
Unrestricted funds - Property maintenance
16
2024
£
£
2,316,171
44,812
2,360,983
-
442,155
442,155
442,155
2,803,138
2,653,223
133,415
16,500
2,803,138
2023
£
£
2,316,171
44,812
2,360,983
14,359
228,738
243,097
243,097
2,604,080
2,499,587
87,993
16,500
2,604,080
2023
£
£
2,316,171
44,812
2,360,983
14,359
228,738
243,097
243,097
2,604,080
2,499,587
87,993
16,500
2,604,080
2,360,983
243,097
2,604,080
2,499,587
87,993
16,500
2,604,080

The financial statements were approved by the trustees on 23 October 2024

Mr RE Harries Chairman

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

1 Accounting policies

Charity information

The charity was established under a Trust Deed on 13th March 2007. It was registered as a charity on 30th May 2007. The Trust Deed sets out the objects and powers of the charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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 Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024

1 Accounting policies

(Continued)

1.5 Expenditure

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

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

1.6 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the Charity’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.

3 Income from donations and legacies

Endowment Endowment
funds funds
2024 2023
£ £
Donations and gifts 125,000 155,000
Other 28,636 76,068
153,636 231,068
Donations and gifts
Donations 100,000 124,000
Gift aid 25,000 31,000
125,000 155,000
Grants
- -

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2024

3 Income from donations and legacies (Continued)
4 Income from investments
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 12,954 -
5 Other income
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Insurance premiums reimbursed by tenant 1,219 1
Insurance recoveries on repairs - 4,846
Domestic rents 98,155 71,058
Commercial rents 47,000 38,474
146,374 114,379

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2024

6 Grants payable
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Grants to institutions:
Clonter Outreach programme 4,000 4,000
Chester Operatic Society 1,312
Platform for Life 5,500 5,000
Down Syndrome Cheshire 3,000
PHAB 500
Chester Folk Music Festival 2,500 1,500
Chester Rotary Club - Furniture 500 1,500
Adoption Matters 2,500
Charles Halle Foundation 2,500
Border Singers 1,500
Top of the Tower Project 2,500
Chester Scouts Jamboree 4,000
Handicapped Children Action 2,000
Neuromuscular Centre 1,252
Chapter (West Cheshire) 2,000
University Festival of Ideas 2,000
Save the Family 5,000 5,000
Chester together for Christmas 2,000
Schools Film Project 2,000
Changing Lives Together 2,000
Hospice of the Good Shepherd 1,384 2,000
Chester Photographic Society 800
Royal Northern College of Music 1,000 1,000
Hammond School fees 3,000 3,000
9 other donations in 2023 - 17,350
54,748 40,350

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024

7 Support costs allocated to activities

Management fee
Insurance
Repairs
Council tax
Other professional fees
Light, heat & water
Marketing fees
Bank charges
Deposit and referencing fees
Loss of rent insurance
2024
£
11,008
3,763
37,349
626
185
-
2,346
61
1,852
1,968
59,158
2023
£
5,115
2,931
34,346
2,160
1,680
1,480
624
62
504
-
48,902

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

9 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

10 Gains and losses on investments

Endowment Endowment
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investments - 5,170

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2024

12 Investment property

Investment property
2024
£
Fair value
At 6 April 2023 and 5 April 2024 2,316,171

The Trustees have considered the valuation of the investment properties some of which have been held since 2013. The Trustees have reviewed locally available comparable market prices as a cost-effective method for assessing the fair value of properties. The fair values of the investment properties are below. Any changes in fair value are recognised in income and expenditure.

Investment properties, at valuation: 2024 2024
£ £
32 Talbot Street, Newtown 160,000 160,000
104 Westminster Road, Hoole 190,000 190,000
51 Tomkinson Street, Hoole 190,000 190,000
52 Tomkinson Street, Hoole 200,000 200,000
3 Phillip Street, Hoole 200,000 200,000
15 Phillip Street, Hoole 190,000 190,000
9 Westminster Court, Hoole 190,000 190,000
1 Tomkinson Street, Hoole 193,000 193,000
8 Tomkinson Street, Hoole 200,000 200,000
3 Northgate Street, Chester 603,171 603,171
___ ______
2,316,171 2,316,171
13 Fixed asset investments
Investments
£
Cost or valuation
At 6 April 2023 & 5 April 2024 44,812
Carrying amount
At 05 April 2024 44,812
At 05 April 2023 44,812

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2024

14 Debtors

Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors - 14,359

15 Endowment funds

This unrestricted fund was created from the donations received in this and previous years. Any property and investment revaluations are also posted to this fund.

Permanent endowments
Previous year:
Permanent endowments
At 6 April
2023
Incoming
resources
Gains and
losses
£
£
£
2,499,587
153,636
-
At 6 April
2022
Incoming
resources
Gains and
losses
£
£
£
2,263,349
231,068
5,170
At 5 April
2024
£
2,653,223
At 5 April
2023
£
2,499,587

16 Unrestricted funds - Property maintenance

The Trustees have created a designated fund to reserve against potential future liabilities for repairs to the charity’s investment properties. This year an amount of £Nil (2023 - £Nil) was transferred to this fund from the General Fund.

Previous year: At 6 April
2023
£
16,500
At 6 April
2022
£
16,500
At 5 April
2024
£
16,500
At 5 April
2023
£
16,500

EARL OF CHESTER'S FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024

17 Unrestricted funds

All rent received and investment income is credited to this fund. All grants and expenses are paid from it. Its balance is carried forward to future years.

At 6 April Incoming Resources At 5 April
2023 resources expended 2024
£ £ £ £
General funds 87,993 159,328 (113,906) 133,415
Previous year: At 6 April Incoming Resources At 5 April
2022 resources expended 2023
£ £ £ £
General funds 62,866 114,379 (89,252) 87,993

18 Potential future committed funds

The Charity is committed to paying school fees totalling approximately £Nil (2023 - £3,000) over the next year (2023 – one year). These fees have not been provided for in the accounts due to the uncertainty over whether the pupils concerned will, or will not, complete their courses of study.

19 Tenants' deposits

In accordance with the requirements of the RCIS, tenants’ deposits are held in a separate bank account with the Deposit Protection Service Custodial Scheme. At 5th April 2024, these amounted to £5,400 (2023 - £7,937).

20 Related party transactions

Donations were received from trustees during the year, without conditions, totalling £100,000 (2023 - £124,000). Donations, without conditions, totalling £28,636 (2023 - £76,068) were received during the year from a company over which a trustee has a controlling interest.

No remuneration or expenses were paid to any trustee during the year (2023 - £ Nil).