CHARITY NUMBER 1119718
The FredMill Trust
Trustees’ Annual Report and Financial Statements Year 17
1[st] April 2023 to 31[st] March 2024
The FredMill Trust Financial Statements for the year ended 31 March 2024
| Contents | Page |
|---|---|
| The Trust, the Trustees and their advisers | 3 |
| Trustees' report | 4 |
| Report of the Independent Examiner | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 |
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The FredMill Trust Financial Statements for the year ended 31 March 2024
The Trust, the Trustees and their Advisers
The FredMill Trust is a registered charity in England and Wales, number 1119718, and has its registered office at the address shown below.
Trustees Mr CD Coase Mr RG Coase Mrs LH Middleton
Registered Office The Greenhouse Corbar Woods Lane Buxton Derbyshire SK17 6RH Banker The Co-operative Bank PO Box 101 1 Balloon Street Manchester M60 3AZ Independent Examiner Ms Christy Lau Slade & Cooper Ltd Beehive Mill, Jersey St Ancoats Manchester M4 6JG
Investment Manager CCLA Investment Management Limited One Angel Lane London EC4R 3AB Solicitor Cooper sons Hartley and Williams 25 Market Street Chapel-en-le-Frith High Peak Derbyshire SK23 0HS
Enquiries should be addressed to the Trustees, preferably by email to the Trustees, care of info@cflm.org.uk or if necessary by post to the registered office at the address shown above.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
Introduction
The Trustees of The FredMill Trust (the “Trust") are pleased to present their report together with the financial statements for the year ended 31 March 2024.
The Trust and its objects
The Trust is a registered charity, number 1119718, and was established under a trust deed, dated 9 June 2007, by the late Miss Margaret E Holt in memory of her parents, Fred and Millicent Holt.
The objects of the Trust are the prevention or relief of poverty and the relief of those in need by reason of youth, age, financial hardship or other disadvantage.
The Trustees
The Trust Deed of the Trust requires that there shall be at least two Trustees and the first Trustees were Miss Holt and Mrs Lesley Middleton. Miss Holt passed away on 24 November 2020 and she ceased to be a Trustee on that date. Under her will, Miss Holt bequeathed the residuary of her estate to the Trust on condition that there is a representative of her family on the board of Trustees, with Mr Charles Coase named as her preferred nominee. In accordance with her wishes, Mr Charles Coase and his brother Mr Richard Coase were appointed as Trustees on 25 September 2021.
Trustees serve for an initial term of five years but may be reappointed for further terms. Mrs Middleton was reappointed for a further five-year term as of 9 June 2022.
Trustees are provided with a copy of the governing Trust Deed, a copy of the latest annual report and accounts and have access to the Charity Commission’s guidance “The Essential Trustee: What You Need to Know”.
All Trustees give of their time freely and no trustee receives remuneration for their services as a trustee. Details of related party transactions are disclosed in Note 13 to the accounts.
Financial statements and developments
The financial statements included in this annual report have been prepared in accordance with the basis of preparation set out in Note 2 to the accounts and with the accounting policies set out in Note 4 to the accounts.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
The financial statements have been examined by the Trust’s independent examiner, Slade & Cooper Ltd, and their report is provided on page 9.
As set out in the Statement of Financial Activities on page 10 and the Balance Sheet on page 11, the Trust realised a surplus on its activities for the financial year ended 31 March 2024 of £343,043 and had net funds at that date of £1,535,504.
The Trustees consider that the financial position of the Trust at the end of the financial year was satisfactory.
Income from Donations
The Trust recognised income by way of legacies from the estate of the late Miss Holt in the sum of £340,986 during the year (2023 - £950,000).
The Executors have completed the administration of the estate of Miss Holt and no further income is due from the estate.
The Trust does not raise funds from the general public.
Charitable giving
The Trustees fulfil the charitable objects of the Trust by making grants to other charitable organisations whose activities align with the objects of the Trust.
For the period since the foundation of the Trust until 31 March 2022, the Trustees determined which individual charitable organisations should be supported by the Trust through direct grants.
In light of the increased size of the Trust, arising from the legacies from the estate of the late Miss Holt, the Trustees conducted a review during the year ended 31 March 2023 of their policy and arrangements for charitable giving and determined that it would be appropriate to enter into arrangements with the Community Foundation for Lancashire and Merseyside (“CFLM”), whereby the management of charitable giving would be delegated to CFLM within constraints set by the Trustees. The Trustees and CFLM have entered into Memoranda of Understanding in relation to these arrangements, as part of which, CFLM is entitled to use 10% of funds delivered by the Trustees to cover the administration costs of CFLM, with the balance to be utilised in support of charitable works in prescribed areas.
In May 2023, the Trustees entered into a Memorandum of Understanding with the CFLM, in accordance with which the Trust made a distribution of £125,000
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The FredMill Trust Financial Statements for the year ended 31 March 2024
to CFLM in the year ended 31 March 2024. The CFLM, after consulting with the Trustees, has retained £12,500 to cover its administration costs and utilised the balance in supporting the following organisations:
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£20,000 awarded equally to four charities previously supported by the Trust, namely Halewood Youth in Community, The Manchester Settlement, St Hilda’s East Community Centre and Y Kids;
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£10,000 awarded to Citizens Advice North Lancashire to support their production of a series of podcasts providing vital information and advice for people on the topics of welfare support and financial management;
-
£82,500 awarded to 14 charities identified by CFLM under their “Women’s projects” umbrella (supporting domestic abuse services, confidence building and entrepreneurial skills) and their “Older people’s projects” (helping to reduce social isolation).
The Trustees are mindful of the public benefit requirement for the Trust and have regard to the public benefit guidance of the Charity Commission. The Trustees receive reports from and engage with the management of CFLM and are satisfied that the public benefit requirement has been met. Further information on the work of CFLM, including activities supported by the Trust, is available on the CFLM website at https://cfmerseyside.org.uk/.
The Trustees made a further distribution of £125,000 to CFLM in May 2024 and expect to made a further distribution of the same amount in the following financial year.
Investment matters
As previously reported, the Trustees have appointed an independent professional investment manager, CCLA Investment Management Limited (“CCLA”), to manage the Trust’s investment funds on a delegated, fully discretionary basis.
During the year ended 31 March 2023, the Trustees invested £900,000 into the CCLA Ethical Investment Fund, in accumulation units with no income distributed to the Trust. No further moneys were invested during the current financial year.
The market value of the Trust’s investments with CCLA in the Ethical Investment Fund at 31 March 2024 was £1,048,124 (31 March 2023 - £925,310).
The Trust also places cash on deposit with CCLA’s Charities Deposit Fund.
The Ethical Investment Fund and the Charities Deposit Fund are both Charities Official Investment Funds (“COIF”), an authorised Common Deposit Fund for
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The FredMill Trust Financial Statements for the year ended 31 March 2024
use by charities and others. Additional information about CCLA and its funds is available on the CCLA website at https://www.ccla.co.uk/.
Statement of Trustees' responsibilities in respect of the financial statements
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Trust’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards and Statements of Recommended Practice (“SORPs”) have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Contact for further information
Requests for additional information about the Trust should be addressed to the Trustees, for whom contact details are provided on page 3.
This Trustees' Report was approved by the Trustees on 9 September 2024 and signed on their behalf by:
CD Coase Trustee
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The FredMill Trust Financial Statements for the year ended 31 March 2024
Report of the Independent Examiner
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2024 which are set out on pages 9 to 18.
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 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Christy Lau FCCA CTA DChA
Slade & Cooper Limited, Chartered Certified Accountants Beehive Mill, Jersey Street, Ancoats Manchester, M4 6JG
20/09/2024
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The FredMill Trust Financial Statements for the year ended 31 March 2024
Statement of Financial Activities for the year ended 31 March 2024
| Year | ended | Year ended | Year ended | ||
|---|---|---|---|---|---|
| 31 March 2024 | 31 March 2023 | ||||
| Notes | £ | £ | £ | £ | |
| Income from: | |||||
| Donations | 5 | 340,986 | 950,000 | ||
| Investments | 6 | 5,654 | 1,269 | ||
| Total | 346,640 | 951,269 | |||
| Expenditure on: | |||||
| Charitable activities: | |||||
| Grants | 7 | 125,000 | 100,000 | ||
| Administrative costs | 8 | 1,411 | 1,165 | ||
| Total | (126,411) | (101,165) | |||
| Net (loss)/income before | |||||
| investment gains/ (losses) | 220,229 | 850,104 | |||
| Net gains/(losses) on | |||||
| investments | 9 | 122,814 | 23,423 | ||
| Net movement in the Trust’s | |||||
| funds for the financial year | 343,043 | 873,827 | |||
| Reconciliation of the Trust’s funds | |||||
| Funds brought forward | 1,192,461 | 318,634 | |||
| Net movement for the year | 343,043 | 873,827 | |||
| Funds carried forward | 1,535,504 | 1,192,461 |
The funds of the Trust are unrestricted. The notes on pages 11 to 18 form part of these financial statements.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
Balance Sheet at 31 March 2024
| Notes Fixed assets Investments 9 Current assets Debtors: Accrued income 10 Cash at bank 11 Creditors: amounts falling due within one year Accruals 12 Net current assets Total net assets Funds of the Trust Unrestricted funds |
At 31 March 2024 1,279,960 240,986 16,358 257,344 (1,800) 255,544 1,535,504 1,535,504 |
At 31 March 2023 982,146 |
|---|---|---|
| 200,000 11,935 |
||
| 211,935 (1,620) |
||
| 210,315 | ||
| 1,192,461 | ||
| 1,192,461 |
These financial statements were approved by the Trustees on 9 September 2024 and signed on their behalf by:
C D Coase Trustee
The notes on pages 11 to 18 form part of these financial statements.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
1. Identification of the financial statements
These are the financial statements of The FredMill Trust, established as a trust under English law and registered as a charity, number 1119718. The address for enquiries to the Trustees is included in the Trustees’ Report on page 3.
2. Basis of preparation
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), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The Trust has applied the exemption available to small charities in the Charities SORP (FRS 102) and does not include a Statement of Cash Flows in these Financial Statements.
The accounts (financial statements) have been prepared to give a 'true and fair view' and 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 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), second edition - October 2019, rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Trust has a single unrestricted fund. The Trustees must apply the income of the Trust in furthering its objects and, at their discretion, may apply all or part of the capital of the Trust in furthering the objects.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
3. Preparation of the accounts on a going concern basis
The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.
There were no key judgments which the Trustees have made which have a significant effect on the accounts.
The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
4. Accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all the years presented.
(a) Incoming resources
All incoming resources are recognised once the Trust has entitlement to the resources, it is probable that the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability.
For legacies, entitlement is taken as the earlier of the date on which either the Trust 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 Trust has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Trust, or the Trust 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.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
(b) Resources expended
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Trustees.
(c) Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
(d) Costs of generating funds
The costs of generating funds consist of investment management fees.
(e) Charitable activities Costs of charitable activities include grants made and administration costs.
(f) Investment income
Dividend income is accounted for when the relevant security is quoted ex-dividend. Interest on interest-bearing securities is accrued on a daily basis and recognised in income when received. Investment income arising from the underlying investments of pooled funds which is reinvested with the fund is recognised within the “change in market value” for the fund.
(g) Investment gains and losses
The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including gains and losses realised on sales or redemptions of investments and unrealised changes in market value.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
(h) Valuation of investments
Investments are included in the financial statements at market value, stated at the bid price at the balance sheet date. The value of interestbearing securities includes accrued income, which is recognised in change in market value unless received.
(i) Debtors
Other debtors are recognised at the settlement amount due after any trade discount offered.
(j) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
(k) Creditors and provisions
Creditors and provisions are recognised where the Trust 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.
(l) Presentation currency
The financial statements are presented in Pounds Sterling, being the functional currency of the Trust.
5. Donations
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Donations received and receivable | 340,986 | 950,000 |
All donations received and receivable in the current and prior years are from the estate of the late Miss ME Holt.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
6. Investment income
| Dividends from equities and equity funds Interest income from fixed interest securities, net of reduction in accrued interest Interest on cash deposits |
2024 £ - - 5,654 5,654 |
2023 £ 461 (183) 991 |
|---|---|---|
| 1,269 |
7. Grants
Grants have been awarded by the Trustees in respect of the charitable objects of the Trust to the following organisation:
| Community Foundation for Lancashire and Merseyside Administrative expenses Administrative expenses Fees of the Independent Examiner |
2024 £ 125,000 125,000 2024 £ 511 900 1,411 |
2023 £ 100,000 |
|---|---|---|
| 100,000 | ||
| 2023 £ 265 900 |
||
| 1,165 |
8. Administrative expenses
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The FredMill Trust Financial Statements for the year ended 31 March 2024
9. Investments
| Diversified Growth Fund: CCLA Ethical Investment Fund Cash: CCLA COIF Charities Deposit Fund |
Value at 1 April 2023 Purchases and Sales Moneys placed on deposit Change in market value Value at 31 March 2024 £ £ £ £ £ 925,310 - - 122,814 1,048,124 56,836 - 175,000 - 231,836 |
|---|---|
| 982,146 - 175,000 122,814 1,279,960 |
No direct transaction costs were incurred during the year. Indirect transaction costs may arise within pooled funds.
The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments.
The following holdings, other than cash deposits, represent more than 5% by value of the investments held by the Trust at 31 March 2024:
| Holding | Value | % of total investments |
|---|---|---|
| £ | % | |
| Diversified Growth Fund – CCLA Ethical Investment Fund |
1,048,124 | 81.9 |
The underlying holdings in the Ethical Investment Fund are well diversified, with no individual holding representing more than 5% of the assets of the Fund. The Trust’s holding in the Fund represents less than 0.5% of the total Fund assets.
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The FredMill Trust Financial Statements for the year ended 31 March 2024
The Trust’s long-term cash deposits comprise:
| CCLA COIF Charities Deposit Fund | 2024 £ 231,836 231,836 |
2023 £ 56,836 |
|---|---|---|
| 56,836 |
The yield on the CCLA COIF Charities Deposit fund at 31 March 2024 was 5.21% p.a. (3.96% p.a. at 31 March 2023). Cash held within the fund is available on immediate notice.
10. Debtors: Accrued income
| Donations receivable | 2024 £ 240,986 240,986 |
2023 £ 200,000 |
|---|---|---|
| 200,000 |
11. Cash at bank
| The Co-operative Bank | 2024 £ 16,358 16,358 |
2023 £ 11,935 |
|---|---|---|
| 11,935 |
12. Liabilities: Accruals
| Accruals for administrative expenses | 2024 £ 1,800 1,800 |
2023 £ 1,620 |
|---|---|---|
| 1,620 |
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The FredMill Trust Financial Statements for the year ended 31 March 2024
13. Related party transactions
The Trustees do not receive remuneration in respect of their services as trustees. No expenses were paid to Trustees in respect of the year ended 31 March 2024 (2023 – £nil).
14. Contingencies and commitments
At 31 March 2024, there were no capital commitments (2023 - £nil) or contingent liabilities (2023 - £nil).
15. Post Balance Sheet Events
In her will, Miss Holt bequeathed the residuary of her estate to the Trust. The Executors have paid an interim distribution to the Trust of £200,000 in May 2024 and, on completion of the administration of the estate of Miss Holt, have paid a final distribution of £40,986 in September 2024, both of which have been recognised in these financial statements.
In May 2023, the Trustees entered into a Memorandum of Understanding with the Community Foundation for Lancashire and Merseyside (“CFLM”), in accordance with which the Trust made a distribution of £125,000 to CFLM in the year ended 31 March 2024. A further distribution of £125,000 was made to CFLM in May 2024 and the Trustees expect to make a further distribution of the same amount in the following financial year.
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