REGISTERED COMPANY NUMBER: 06652845 (England and Wales) REGISTERED CHARITY NUMBER: 1126745
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
FOR
THE HARMONY FOUNDATION
THE HARMONY FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 July 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | to | 7 |
| Notes to the Financial Statements | 8 | to | 13 |
| Detailed Statement of Financial Activities | 14 |
THE HARMONY FOUNDATION
REPORT OF THE TRUSTEES for the Year Ended 31 July 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of 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
Objectives and aims
The Charity's objectives are to provide grants and donations for charitable purposes to individuals or such charitable associations, bodies and organisations as the Board of Trustees shall think fit. The making of such grants and donations are within the Charity Commission's definition of public benefit as the Trustees ensure that all grants are within the definition of 'charitable purpose'.
The Trustees consider that these grants will enable individuals and institutions to achieve aims and objectives that may otherwise not be achieved had it not been through the making of these grants.
Significant activities
The Board of Trustees continue their objective of aiming to raise sufficient funding to enable the charity to maintain a long term perpetual growth fund allowing annual grants to be provided for charitable causes.
This is being done by attracting donors sharing these long term objectives rather than casual fundraising. The charity will also continue to encourage regular contributions benefitting from Gift Aid. The Trustees likewise foster bequests through tax efficient estate planning.
Public benefit
The Trustees consider that they have complied with their duty in section 17(5) of the 2011 Charities Act in having due regard to the guidance published by the Charity Commission in respect of charitable activities being for the public benefit.
Grantmaking
The charity's strategy for achieving its' objectives is through the provision of grants and donations to worthy causes. Grants are made on a discretionary basis and must be for charitable purposes.
Volunteers
No volunteers have been engaged to date but may be so in the future. All volunteers are given details of relevant sections of the Management Manual to ensure compliance with established procedures particularly financial accountability where funds are concerned.
STRATEGIC REPORT
Achievement and performance
Charitable activities
During the year under review the charity provided grants and donations for worthy causes amounting to £1,111. The charity also continues to build a perpetual fund to provide funding for charitable activities in future years.
Fundraising activities
The charity continues to receive donations during the accounting period. The Trustees are confident that the financial objectives of the charity and fundraising activities will continue to expand and improve evidenced by an additional legacy due in the next financial year.The Trustees continue to have discussions with potential donors.
Investment performance
In order to achieve better investment performance, the trustees now have funds actively managed by professional investment managers and stockbrokers. During the year, the value of ,managed investments has fallen by approximately 17% primarily due to the effects of the Covid-19 pandemic.The trustees and fund managers are confident that a recovery will be seen once the pandemic restrictions begin to be lifted. As the managed investments are for the medium term, the charity is expected to receive the benefit of the reversal of those losses in future years.
Managed investments losses have been counteracted by an increase in value of the investment property of approximately 5% during the financial year.
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THE HARMONY FOUNDATION
REPORT OF THE TRUSTEES for the Year Ended 31 July 2021
STRATEGIC REPORT Financial review
Financial position
The Trustees are satisfied with the Charity's financial position at the end of the year with an increase in overall reserves on both restricted and unrestricted funds. This continues to build on the charity's long term goal to establish a perpetual fund which will, in turn, then finance annual grants made into the foreseeable future.
Principal funding sources
Funding sources have been, and are expected to continue to be, personal donations and legacies made by individuals.
Investment policy and objectives
Accumulated funds are held on deposit attracting interest receipts during the period. The Trustees have, through Investment Management Advisors, established a managed investment fund with a view to increasing the value of those funds and consequently the return on funds held while, at the same time, endeavouring to ensure that there is no undue risk to the balance of any funds being managed.
Reserves policy
The Trustees aim to accumulate sufficient reserves to create a perpetual support fund allowing for annual grants to be made from donations and investment income. Investable capital will continue to be increased during the subsequent financial periods in order to achieve this objective. Funds will be managed to produce income sufficient to achieve the objectives stated.
The Trustees are satisfied with the level of reserves and assets at the year end which are shown on the attached Balance Sheet.
Future plans
Members will continue to be urged to establish their own fund raising activities in compliance with the charities Management Manual.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its' governing document, its' Memorandum & Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
Recruitment of Trustees/Directors is made by the members and candidates are selected who possess the necessary qualifications, experience or skills to manage the Charity.
Organisational structure
The Charity is managed by the Trustees who make the day to day operational decisions of the Charity. Each year the Charity holds an AGM where members can attend to review recent activities, approve the accounts and submit suggestions as to the future development and policies of the Charity.
Induction and training of new trustees
Newly appointed Trustees are inducted by the existing Trustees and are given sufficient training and information to enable them to fulfil their role and to comply with the requirements of charitable law.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
06652845 (England and Wales)
Registered Charity number
1126745
Registered office
2 Park Court West Byfleet Surrey KT14 6SD
Trustees
A G Orchard FCCA Chartered Certified Accountant E M Le Gray Chartered Surveyor A Hopgood JP Trustee
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THE HARMONY FOUNDATION
REPORT OF THE TRUSTEES for the Year Ended 31 July 2021
REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary
A G Orchard FCCA
Investment Advisors & Managers
Walker Crips Investment Management Old Change House 128 Queen Victoria Street London EC4V 4BJ (Part of Walker Crips Group Plc)
Bankers
HSBC Bank PLC 6 Commercial Way Woking Surrey GU21 6EZ
This report is prepared in accordance with the small company regime (Sec 419(2) of the Companies Act 2006. The Trustees have complied with their duty contained in Section 4 of the Charities Act 2006 in having due regard to guidance published by The Charity Commission.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 15 April 2022 and signed on the board's behalf by:
A G Orchard FCCA - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE HARMONY FOUNDATION
Independent examiner's report to the trustees of The Harmony Foundation ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2021.
Responsibilities and basis of report
As the charity's trustees of the 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 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 your charity'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
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:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Mrs M.A.Herzog FCCA
19 April 2022
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THE HARMONY FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 July 2021
| 31.7.21 Unrestricted Restricted Total fund fund funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 3 113,169 - 113,169 Investment income 4 4,843 - 4,843 Total 118,012 - 118,012 EXPENDITURE ON Charitable activities Grants & Assistance To Individuals 36 - 36 Grants To Institutions 1,075 - 1,075 Other Expenditure 662 - 662 Total 1,773 - 1,773 Net gains/(losses) on investments 21,430 9,000 30,430 NET INCOME/(EXPENDITURE) 137,669 9,000 146,669 RECONCILIATION OF FUNDS Total funds brought forward 131,462 161,400 292,862 TOTAL FUNDS CARRIED FORWARD 269,131 170,400 439,531 |
31.7.20 Total funds £ 474 2,168 2,642 160 455 734 1,349 (12,384) (11,091) 303,953 292,862 |
|---|---|
The notes form part of these financial statements
Page 5
THE HARMONY FOUNDATION
BALANCE SHEET 31 July 2021
| Unrestricted Restricted fund fund Notes £ £ FIXED ASSETS Investments Investments 11 263,726 - Investment property 12 - 170,400 263,726 170,400 CURRENT ASSETS Debtors 13 35 - Investments 14 52 - Cash at bank 5,318 - 5,405 - NET CURRENT ASSETS 5,405 - TOTAL ASSETS LESS CURRENT LIABILITIES 269,131 170,400 NET ASSETS 269,131 170,400 FUNDS 15 Unrestricted funds Restricted funds: Maintenance Fund TOTAL FUNDS |
31.7.21 Total funds £ 263,726 170,400 434,126 35 52 5,318 5,405 5,405 439,531 439,531 269,131 170,400 439,531 |
31.7.20 Total funds £ 100,946 161,400 |
|---|---|---|
| 262,346 89 52 30,375 |
||
| 30,516 | ||
| 30,516 | ||
| 292,862 | ||
| 292,862 | ||
| 131,462 161,400 |
||
| 292,862 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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THE HARMONY FOUNDATION
BALANCE SHEET - continued 31 July 2021
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 15 April 2022 and were signed on its behalf by:
E M Le Gray - Trustee
A G Orchard FCCA - Trustee
The notes form part of these financial statements
Page 7
THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 July 2021
1. PRESENTATION CURRENCY
The financial statements are presented in £ sterling.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The Trustees have considered the financial position of the Charity at the year end and of future plans and consider it appropriate for the accounts to be prepared on the going concern basis.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Grants received are recognised under the accruals basis.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Charitable activities
Charitable activities relate to donations and grants made to individuals and institutions and comply with the 'public benefit' definition. Costs of charitable activities are costs recognised as being directly incurred as a result of carrying out those charitable activities.
Investment property
Investment property is shown at the most recent Trustees' valuation. Any changes to this valuation are reflected in the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Legacies
Legacies are recognised when they are unconditionally receivable.
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THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 July 2021
3. DONATIONS AND LEGACIES
| Donations (including gift aid) Legacies 4. INVESTMENT INCOME Other Income Managed Funds Dividend Income Interest Received 5. GRANTS PAYABLE Grants & Assistance To Individuals Grants To Institutions |
31.7.21 £ 175 112,994 113,169 31.7.21 £ 66 4,265 512 4,843 31.7.21 £ 36 1,075 1,111 |
31.7.20 £ 474 - |
31.7.20 £ 474 - |
|---|---|---|---|
| 474 | |||
| 31.7.20 £ - 1,929 239 2,168 31.7.20 £ 160 455 615 |
|||
| 615 |
Grants to Institutions included the care and well being of children, conservation and various small donations to assist other institutions and were generally to relieve distress..
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2021 nor for the year ended 31 July 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.
7. CHARITABLE COMPANIES DISCLOSURE
The Statement of Financial Activities incorporates the Income & Expenditure Account. The results for the year derive from continuing activities and there were no gains and losses other than shown.
8. RESTRICTED FUNDS
The Maintenance Fund represents a residential property transferred to the Charity on the condition that it be available for the maintenance and support of a family member of the transferor for his lifetime. A peppercorn rental income will become payable to the Charity. .
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THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 July 2021
9. LEGAL FORM OF THE CHARITY
The charity is a charitable company limited by guarantee and incorporated under the Companies Act and Registered with the Charity Commission for England and Wales. Its' registered office and other information can be found on the Report of the Trustees attached to these financial statements.
10. EMPLOYEES
The charity had no employees during the current or previous financial period. Consequently there are no associated employee costs or benefits.
11. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | |
|---|---|
| Listed | |
| investments | |
| £ | |
| MARKET VALUE | |
| At 1 August 2020 | 122,704 |
| Additions | 141,350 |
| At 31 July 2021 | 264,054 |
| PROVISIONS | |
| At 1 August 2020 | 21,758 |
| Revaluation adjustments | (21,430) |
| At 31 July 2021 | 328 |
| NET BOOK VALUE | |
| At 31 July 2021 | 263,726 |
| At 31 July 2020 | 100,946 |
Investments held may be within or outside the UK as the investment managers see fit.
| Cost or valuation at 31 July 2021 is represented by | Listed Investments |
|---|---|
| £ | |
| Valuation in 2021 | 21,430 |
| Valuation in 2020 | (20,383) |
| Valuation in 2019 | (276) |
| Valuation in 2018 | (1,099) |
| Cost | 26,4054 |
| £263,726 | |
Fixed Asset Listed Investments at 31 July 2021 represent managed funds handled by professional stockbrokers Walker Crips.
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THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 July 2021
12. INVESTMENT PROPERTY
| FAIR VALUE At 1 August 2020 Revaluation At 31 July 2021 NET BOOK VALUE At 31 July 2021 At 31 July 2020 Fair value at 31 July 2021 is represented by: Valuation in 2021 Valuation in 2020 Valuation in 2019 Valuation in 2018 Valuation in 2017 Cost |
£ 161,400 9,000 |
|---|---|
| 170,400 | |
| 170,400 | |
| 161,400 | |
| £ 9,000 8,000 4,500 3,400 5,500 140,000 |
|
| 170,400 |
Increases in the valuation of the investment property have been made by the Trustees based on information available on specialist websites and the closing value is deemed to be the fair value at 31 July 2019.
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|---|
| 31.7.21 | 31.7.20 | ||
| £ | £ | ||
| Tax | 35 | 89 | |
| 14. | CURRENT ASSET INVESTMENTS | ||
| 31.7.21 | 31.7.20 | ||
| £ | £ | ||
| Other | 52 | 52 |
Current asset investments represent UK based managed funds invested to provide a financial return for the charity. Valuation of these funds is provided by the fund managers.
15. MOVEMENT IN FUNDS
| Unrestricted funds General fund Restricted funds Maintenance Fund TOTAL FUNDS |
At 1.8.20 £ 131,462 161,400 292,862 |
Net movement in funds £ 137,669 9,000 146,669 |
At 31.7.21 £ 269,131 170,400 |
|---|---|---|---|
| 439,531 |
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THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 July 2021
15. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Maintenance Fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Restricted funds Maintenance Fund TOTAL FUNDS |
Incoming resources £ 118,012 - 118,012 |
Resources expended £ (1,773) - (1,773) At 1.8.19 £ 150,553 153,400 303,953 |
Gains and Movement losses in funds £ £ 21,430 137,669 9,000 9,000 30,430 146,669 Net movement At in funds 31.7.20 £ £ (19,091) 131,462 8,000 161,400 (11,091) 292,862 |
Gains and Movement losses in funds £ £ 21,430 137,669 9,000 9,000 30,430 146,669 Net movement At in funds 31.7.20 £ £ (19,091) 131,462 8,000 161,400 (11,091) 292,862 |
|---|---|---|---|---|
| 146,669 | ||||
| At 31.7.20 £ 131,462 161,400 |
||||
| 292,862 |
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 2,642 | (1,349) | (20,384) | (19,091) |
| Restricted funds | ||||
| Maintenance Fund | - | - | 8,000 | 8,000 |
| TOTAL FUNDS | 2,642 | (1,349) | (12,384) | (11,091) |
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THE HARMONY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 July 2021
16. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 July 2021.
17. STATEMENT OF FINANCIAL ACTIVITIES
The statement of financial activities incorporates the income and expenditure account. The results for the year derive from continuing activities and there are no gains or losses other than those shown on the Statement of Financial Activities.
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THE HARMONY FOUNDATION
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 July 2021
| 31.7.21 | 31.7.20 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations (including gift aid) | 175 | 474 |
| Legacies | 112,994 | - |
| 113,169 | 474 | |
| Investment income | ||
| Other Income Managed Funds | 66 | - |
| Dividend Income | 4,265 | 1,929 |
| Interest Received | 512 | 239 |
| 4,843 | 2,168 | |
| Total incoming resources | 118,012 | 2,642 |
| EXPENDITURE | ||
| Charitable activities | ||
| Grants to institutions | 1,075 | 455 |
| Grants to individuals | 36 | 160 |
| 1,111 | 615 | |
| Other Expenditure | ||
| Printing & stationery | - | 469 |
| Accountancy Costs | 255 | 128 |
| Fund Managers Fees | 392 | 137 |
| 647 | 734 | |
| Support costs | ||
| Finance | ||
| Bank charges | 15 | - |
| Total resources expended | 1,773 | 1,349 |
| Net income | 116,239 | 1,293 |
This page does not form part of the statutory financial statements
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