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2021-05-31-accounts

Company no. 06249803 Charity no. 1119695

The J.W. Sly & Sons (Northleach) Charitable Trust

Report and Unaudited Financial Statements 31 May 2021

The J.W. Sly & Sons (Northleach) Charitable Trust

Reference and administrative details

For the year ended 31 May 2021

Company number 06249803
Charity number 1119695
Status The organisation is a charitable company limited by guarantee,
incorporated on 16 May 2007 and registered as a charity on 18 June
2007.
Governing document The company was established under a memorandum of association
which established the objects and powers of the charitable company
and is governed under its articles of association.
Trustees Laura Blundell
Peter Dawson
David Ebsworth
Felicity Ebsworth
Christopher Hancock
Emily Hartnell
David Louisson
Richard Owen
Ian Sanders
Justine Shackleton
Enid Sly
Company secretary Ian Sanders
Registered office and Wheelwrights
operational address West End
Northleach
Gloucestershire
GL54 3EZ
Bankers Bank of Scotland plc
The Mound
Edinburgh
EH1 1YZ
Investment managers Smith and Williamson
25 Moorgate
London
EC2R 6AY
Independent examiners Alison Godfrey FCA
Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

The J.W. Sly & Sons (Northleach) Charitable Trust

Report of the trustees

For the year ended 31 May 2021

The trustees present their report and the examined financial statements for the year ended 31 May 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, management and governance

The organisation is a charitable company limited by guarantee, incorporated on 16 May 2007 and registered as a charity on 18 June 2007. The organisation is governed by its articles and memorandum of association.

Recruitment and appointment of trustees

The trustees are recruited amongst family members and members of the local community who the trustee body believe have the necessary experience to enhance the aims of the charitable company.

Induction and training of trustees

All trustees are fully involved in the work of the trust from the outset with the necessary support from their co-trustees.

Remuneration and expenses of trustees

All trustees provide their services totally voluntarily and no payments for trustees' remuneration and no claims for expenses have been made in the year ending 31 May 2021.

Risk management

The trust has mechanisms in place to ensure the security of its assets. During the past year, the trust has continued further with planning and building activity for the provision of affordable housing, employing architectural and design consultants, to ensure regulatory compliance in the construction phase.

Public benefit

The trustees have given due regard to the Charity Commission's guidance with regard to public benefit. The trust has provided 6 affordable houses which continue to be occupied by local residents of Northleach during the year under review, within the spirit of the trust deed.

Objectives and activities

The main aim of the charitable company is to provide affordable housing within the Parish of Northleach for the benefit of employees working within Community Facilities and Services, including, but not exclusively, schools, shops and churches.

It also aims:

2

The J.W. Sly & Sons (Northleach) Charitable Trust

Report of the trustees

For the year ended 31 May 2021

Achievements and performance

The Trust's existing properties continue to be occupied for the full period of this report.

Planning permission on an existing Barn has been granted, and work is well advanced for the conversion to two single accommodation dwellings. Completion is expected towards the end of October 2021.

The charitable company is in the process of archiving relevant historic documents belonging to the Sly family.

Financial review

Reserves policy

The charitable company held total unrestricted funds of £2,965,601 at 31 May 2021 (2020: £2,147,139), which was primarily represented by the property, property development undertaken and cash at bank. The trustees consider the level of reserves to be adequate for supporting the immediate future plans of the charitable company.

Maintenance provisions continue in line with our policies, and will continue until the level of provision is reviewed by trustees in line with anticipated potential repair work.

Plans for the future

The three additional houses gifted to the charitable company by two family members are at the design and planning stage, a) for the substantial upgrading and redesign for one property and b) the upgrading of the other two for refurbishment necessary to comply with new letting regulation before being available for letting in the next twelve months.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law 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 income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

3

The J.W. Sly & Sons (Northleach) Charitable Trust

Report of the trustees

For the year ended 31 May 2021

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. 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 corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were re-appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 17 February 2022 and signed on their behalf by:

Chris Hancock

Chris Hancock - Chair

4

Independent examiner's report

To the trustees of

The J.W. Sly & Sons (Northleach) Charitable Trust

I report to the trustees on my examination of the accounts of The J.W. Sly & Sons (Northleach) Charitable Trust (the charitable company) for the year ended 31 May 2021, which are set out on pages 6 to 18.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (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:

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.

Alison Godfrey

Date: 17 February 2022 Alison Godfrey FCA Member of the ICAEW For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

5

The J.W. Sly & Sons (Northleach) Charitable Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 May 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Investments
4
Expenditure on:
Raising funds
Charitable activities
5
6
Net gains / (losses) on investments
Net movement in funds
Total income
Total expenditure
Total funds brought forward
Total funds carried forward
Reconciliation of funds:
Net income before gains		 2021
£
779,000
53,179
6,126
838,305
3,250
54,252
57,502
780,803
37,659
818,462
2,147,139
2,965,601		 2020
£
63,069
46,299
8,067
117,435
3,900
30,605
34,505
82,930
(2,851)
80,079
2,067,060
2,147,139

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movement in funds are disclosed in note 15 to the accounts. All income and expenditure in the current and prior period is unrestricted.

6

The J.W. Sly & Sons (Northleach) Charitable Trust

Balance sheet

As at 31 May 2021

Note
Fixed assets
Tangible fixed assets
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts due within 1 year
10
Net current assets
Net assets
13
Funds
15
Unrestricted funds
Designated funds
General funds
Total funds		 1,702
234,037
235,739
(1,200)		 2021
£
2,460,912
270,150
2,731,062
234,539
2,965,601
83,700
2,881,901
2,965,601		 2020
£
1,409,814
380,720
1,790,534
728
357,017
357,745
(1,140)
356,605
2,147,139
67,700
2,079,439
2,147,139

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 17 February 2022 and signed on their behalf by

Chris Hancock

Chris Hancock - Chair

7

The J.W. Sly & Sons (Northleach) Charitable Trust

Statement of cash flows

For the year ended 31 May 2021

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Dividends and interest from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of investments
Proceeds from the sale of investments
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
818,462
14,198
(37,659)
(6,126)
(974)
60
787,961
6,126
(1,065,296)
-
148,229
(910,941)
(122,980)
357,017
234,037		 2020
£
80,079
14,196
2,851
(8,067)
1,491
(1,569)
88,981
8,067
(18,499)
(157,059)
91,433
(76,058)
12,923
344,094
357,017

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The J.W. Sly & Sons (Northleach) Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the COVID-19 pandemic continues to have a profound impact on the global economy, and may in turn affect the charity. The trustees have considered the impact of this issue on the charity’s current and future financial position. The charity holds total general funds of £2,881,901, designated reserves that can be drawn down if necessary of £83,700 and a cash balance of £234,037. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

c) Income

Income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank.

e) Funds accounting

9

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

1. Accounting policies (continued)

f) Expenditure and irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charitable company but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. The charity does not carry out any external fundraising activities so support costs have been allocated in full to charitable activities.

h) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Freehold property

1% straight line basis

Assets with a useful economic life of more than fifty years are subject to annual impairment reviews. Assets in the course of construction will be depreciated once brought into use.

i) Listed investments

Investments listed or traded on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k) Cash at bank and in hand

Cash at bank and cash 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.

l) Creditors

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

10

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

1. Accounting policies (continued)

m) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

n) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1(h) to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

2. Income from donations and legacies

Donations
Legacies
Income from charitable activities
Rental income
Other income		 2021
£
244,500
534,500
779,000
2021
£
53,160
19
53,179		 2020
£
3,905
59,164
63,069
2020
£
46,280
19
46,299

3. Income from charitable activities

11

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

4. Income from investments

Income from investments
Interest
Dividends		 2021
£
924
5,202
6,126		 2020
£
176
7,891
8,067

5. Total expenditure

Total expenditure
Void community charges
Investment fees
Archiving costs
Sub-total
Total expenditure
Accountancy
Depreciation
Property running costs
Insurance
Bank charges
Donations
Agent fees
Building costs
Allocation of support and
governance costs		 £
-
-
-
-
-
-
-
-
-
3,250
-
3,250
-
3,250
Raising
funds		 £
6,754
10,201
199
4,460
-
14,198
-
50
4,573
-
12,533
52,968
1,284
54,252
Charitable
activities		 £
-
-
-
-
1,200
-
84
-
-
-
-
1,284
(1,284)
-
Support and
governance		 2021
Total
£
6,754
10,201
199
4,460
1,200
14,198
84
50
4,573
3,250
12,533
57,502
-
57,502

Total governance costs in the year were £1,200 (2020: £1,140).

12

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

5. Total expenditure (continued) Prior period comparative:

Total expenditure (continued)
Prior period comparative:
Void community charges
Investment fees
Sub-total
Total expenditure
Agent fees
Allocation of support and
governance costs
Depreciation
Bank charges
Donations
Building costs
Property running costs
Insurance
Accountancy		 £
-
-
-
-
-
-
-
-
-
3,900
3,900
-
3,900
Raising
funds		 £
5,443
3,774
234
2,245
-
14,196
-
1,014
2,252
-
29,158
1,447
30,605
Charitable
activities		 £
-
-
-
-
1,300
-
147
-
-
-
1,447
(1,447)
-
Support and
governance		 2020
Total
£
5,443
3,774
234
2,245
1,300
14,196
147
1,014
2,252
3,900
34,505
-
34,505

13

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

6. Net income for the year

This is stated after charging:

Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Independent examination fees (including VAT)		 2021
£
14,198
Nil
Nil
1,200		 2020
£
14,196
Nil
Nil
1,140

7. Tangible fixed assets

Tangible fixed assets
£
Cost
At 1 June 2020
68,596
Additions in the year
286,296
At 31 May 2021
354,892
Deprecation
At 1 June 2020
-
Charge for the year
-
At 31 May 2021
-
Net book value
At 31 May 2021
354,892
At 31 May 2020
68,596
Investments
Market value at 1 June 2020
Additions at cost
Disposals proceeds
Realised gains / (losses)
Unrealised gains / (losses)
Market value at 31 May 2021
Assets in the
course of
construction		 £
1,419,590
779,000
2,198,590
78,372
14,198
92,570
2,106,020
1,341,218
2021
£
380,720
-
(148,229)
6,501
31,158
270,150
Freehold
property		 £
1,488,186
1,065,296
Total
2,553,482
78,372
14,198
92,570
2,460,912
1,409,814
2020
£
317,945
157,059
(91,433)
(855)
(1,996)
380,720

8. Investments

Investments comprise listed investments held by Smith and Williamson.

14

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

9. Debtors

Debtors
Rental income
Other debtors
Creditors: amounts due within 1 year
Accruals		 2021
£
709
993
1,702
2021
£
1,200		 2020
£
411
317
728
2020
£
1,140

10. Creditors: amounts due within 1 year

11. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

12. Related party transactions

Joyce Sly, sister of Enid Sly, trustee, bequeathed property with a probate value of £534,500 to the charity during the year (2020: £Nil). Enid Sly, trustee, co-owned 2 of these properties and donated her interest in these properties at the same time, recognised at a probate value at £244,500.

There were no other related party transactions during the current or prior period.

13. Analysis of net assets between funds

Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 May 2021		 £
-
-
83,700
-
83,700
Designated
funds		 General
funds
£
2,460,912
270,150
152,039
(1,200)
2,881,901		 Total funds
£
2,460,912
270,150
235,739
(1,200)
2,965,601

15

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

13. Analysis of net assets between funds (continued)

Prior period comparative
Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 May 2020
Financial instruments held at fair value
Financial assets measured at fair value		 £
-
-
67,700
-
67,700
Designated
funds		 General
funds
£
1,409,814
380,720
290,045
(1,140)
2,079,439
2021
£
270,150		 Total funds
£
1,409,814
380,720
357,745
(1,140)
2,147,139
2020
£
380,720

14. Financial instruments held at fair value

Financial assets measured at fair value comprise listed investments.

16

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

15. Movements in funds

Movements in funds
Designated funds:
Maintenance fund - cyclical
Maintenance fund - long term
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 June
2020
£
19,500
48,200
67,700
2,079,439
2,147,139
2,147,139		 Income
£
-
-
-
838,305
838,305
838,305		 £
-
-
-
(57,502)
(57,502)
(57,502)
Expenditure		 £
-
-
-
37,659
37,659
37,659
Net gains /
(losses) on
investments		 £
5,300
10,700
16,000
(16,000)
-
-
Transfers
between
funds		 £
24,800
58,900
At 31 May
2021
83,700
2,881,901
2,965,601
2,965,601

Purposes of designated funds

Maintenance fund - cyclical To provide for maintenance costs which occur and become necessary intermittently, which are not considered day to day or part of annual maintenance, and to provide for costs incurred on refurbishment of properties at change of residents.

Maintenance fund - long term

To provide for maintenance costs which become necessary in the longer term due to major dilapidation of building structures, roadways or walls.

17

The J.W. Sly & Sons (Northleach) Charitable Trust

Notes to the financial statements

For the year ended 31 May 2021

15. Movements in funds (continued)

Movements in funds (continued)
Prior period comparative
Designated funds:
Maintenance fund - cyclical
Maintenance fund - long term
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 June
2019
£
16,800
39,000
55,800
2,011,260
2,067,060
2,067,060		 Income
£
-
-
-
117,435
117,435
117,435		 £
£
(1,903)
-
-
-
(1,903)
-
(32,602)
(2,851)
(34,505)
(2,851)
(34,505)
(2,851)
Expenditure
Net gains on
investments		 £
4,603
9,200
13,803
(13,803)
-
-
Transfers
between
funds		 £
19,500
48,200
At 31 May
2020
67,700
2,079,439
2,147,139
2,147,139

18