The John and Tessa Fearnley Charitable Trust (A Charitable Company Limited by Guarantee)
Annual Report and Financial Statements
For the Year Ended 5 April 2021
Company number: 07681098 Charity Registered in England and Wales Number: 1142793
The John and Tessa Fearnley Charitable Trust Contents For the Year Ended 5 April 2021
| Page | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ report | 2 – 4 |
| Independent examiners report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the accounts | 8 – 14 |
The John and Tessa Fearnley Charitable Trust Reference and Administrative Details For the Year Ended 5 April 2021
| Trustees | T M Fearnley |
|---|---|
| T R Leach | |
| J Penn | |
| Principal Office | Fosse Cottage |
| The Fosse | |
| North Curry | |
| Taunton | |
| Somerset | |
| TA3 6LJ | |
| Charity Number | 1142793 |
| Company Number | 07681098 |
| Independent Examiner | Michelle Ferris BSc (Hons) FCA DChA |
| Albert Goodman LLP | |
| Goodwood House | |
| Blackbrook Park Avenue | |
| Taunton | |
| Somerset | |
| TA1 2PX | |
| Bankers | National Westminster Bank Plc |
| Taunton Branch | |
| 49 North Street | |
| Taunton | |
| Somerset | |
| TA1 1NB | |
| Investment Managers | Rathbones Investment Management |
| The Senate | |
| Southernhay Gardens | |
| Exeter | |
| EX1 1UG |
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The John and Tessa Fearnley Charitable Trust Trustees’ Report For the Year Ended 5 April 2021
Report of the Trustees for the year ended 5 April 2021
The Trustees present their annual report and financial statements of the Charity for the year ended 5 April 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Trust Deed, Memorandum and Articles of Association, the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP FRS 102implemented 1 January 2019), and are in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Structure, governance and management
The Trust is a registered Charity, number 1142793, and is constituted under Memorandum and Articles of Association dated 10 June 2011. The Trust was established by an initial gift from Mrs Fearnley on 22[nd] January 2012.
The following trustees, who are also directors for the purposes of company law, served during the year and since the year end:
T M Fearnley T R Leach J Penn
The Trust does not actively fundraise but seeks to manage the resources it has carefully in order to provide funds to make grants in accordance with its objects.
New Trustees are appointed by existing Trustees. The Memorandum of Association provides for a minimum of three Trustees and no maximum.
The Trustees meet quarterly, principally to consider the making of grants and to review investment performance. The relatively straightforward nature of the Trust’s affairs and the small number of Trustees means that no sub-committees are considered necessary.
All Trustees are made aware of their obligations when taking on the appointment.
Risk management
The affairs of the Charity are very straightforward and hence the risks to which it is exposed are minimal.
The principal risks are in relation to managing the Charity’s investments, both as regards maintenance and growth of capital and maximising income. To mitigate this risk the Trustees employ professional investment managers to manage the investments in accordance with stated requirements.
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The John and Tessa Fearnley Charitable Trust Trustees’ Report For the Year Ended 5 April 2021
Objectives and activities
The Charity’s objects, as set out in its governing documents are:
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“The advancement of animal welfare and prevention or relief of suffering of animals of any kind;
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To promote the conservation, protection, and improvement of the physical and natural environment generally;
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To alleviate the effect of natural disasters by making grants to charitable relief organisations; and
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To promote art by making grants to the National Trust and similar charitable trusts.”
In practice the Charity fulfils its objectives by making grants as determined by its Trustees.
Investment policy
The Trustees have agreed an investment policy with the Charity’s investment managers which states that a balance will be achieved between capital growth and income putting an emphasis on providing the best possible income to the grantees, without losing sight of the need for long term capital growth.
Achievements and performance
During the year, the charity had total income of £83,738 (2020: £84,136), of which £29,965 (2020: £34,126) was from income generated from investments and £53,773 (£50,010) was donated shares received. A small amount of the investments were sold and the proceeds reinvested in more favourable investments. The income generated from these investments in future years will be used to fulfil the charitable objectives.
Total expenditure was £46,905 (2020: £62,723), of which £14,139 (2020: £14,592) was investment management fees, £30,500 (2020: £46,000) grants paid and £2,266 (2020: £2,131) governance costs.
During the financial year, the effects of the Covid-19 pandemic became clear, particularly on the investments that the charity hold. The Trustees hold the investments for long-term use, and whilst there was a significant depression in the market value of the investments held during the year, the market recovered substantially by the year end, therefore this has little effect on the charity. Trustees will continue to make grants from the income received from the investments, acknowledging that this amount may fall in the short term. As noted in relation to the reserves policy, grant funding would cease when funds cease and therefore the Trustees are of the opinion that the charity remains a going concern.
Reserves policy
At the year end the charity had total funds of £1,417,232 (2020: £1,093,853), of which £15,463 (2020: £29,023) is spendable, and of this, £11,523 (2020: £21,518) is held in the capital account of Rathbones for investment and the balance of £3,940 (2020: £7,505) is considered readily expendable.
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The John and Tessa Fearnley Charitable Trust Trustees’ Report For the Year Ended 5 April 2021
The charity pays grants and running costs from investment income generated, with the aim of gradually reducing the capital held to fulfil charitable objectives. There is therefore no aim for the set level of reserves, since grant funding would cease when funds ceased.
Public benefit
The trustees consider that the Charity’s aims, objectives and activities comply with the Charity Commissions guidance on public benefit.
Plans for the future
The Trustees intend to carry on with their existing policy of making grants to suitable organisations out of the income received on the Charity’s investments.
Statement of Trustees’ responsibilities
The Trustees (who are Directors of The John and Tessa Fearnley Charitable Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (incorporating the Directors’ 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 charitable company and the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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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 judgments and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards 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 charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Small Company
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Signed by order of the Trustees on 15[th] September 2021
T R Leach – Trustee
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The John and Tessa Fearnley Charitable Trust Independent Examiners Report to the Members For the Year Ended 5 April 2021
Independent examiners report to the Trustees of The John and Tessa Fearnley Charitable Trust.
I report to the charity trustees on my examination of the accounts of The John and Tessa Fearnley Charitable Trust (“the Company”) for the year ended 5 April 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 material 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 Company as required by section 386 of the 2006 Act; or
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the accounts do not comply with these records; or
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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
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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.
Michelle Ferris BSc (Hons) FCA DChA Albert Goodman LLP Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX Date: 21[st] September 2021
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The John and Tessa Fearnley Charitable Trust Statement of Financial Activities (including Income & Expenditure account) For the Year Ended 5 April 2021
| Total | Total | ||
|---|---|---|---|
| unrestricted | unrestricted | ||
| funds | funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Note | |||
| Income from: | |||
| Donations | 2 | 53,773 | 50,010 |
| Investment income | 3 | 29,965 | 34,126 |
| ___ | ___ | ||
| Total income | 83,738 | 84,136 | |
| __ | ___ | ||
| Expenditure on: | |||
| Investment management costs | 14,139 | 14,592 | |
| Charitable activities | 4 | 32,766 | 48,131 |
| ___ | ___ | ||
| Total resources expended | 46,905 | 62,723 | |
| ___ | ___ | ||
| Net income before other | |||
| recognised gains and losses | 36,833 | 21,413 | |
| Net gains / (losses) on investments | 5 | 286,546 | (188,369) |
| ___ | ___ | ||
| Net income / (expenditure) & | |||
| net movement in funds | 323,379 | (166,956) | |
| Total funds brought forward | 1,093,853 | 1,260,809 | |
| ___ | ___ | ||
| Total funds carried forward | 1,417,232 | 1,093,853 | |
| ___ | ___ |
The statement of financial activities has been prepared on the basis that all operations are continuing operations. There were no gains or losses arising in the year that are not shown above.
The statement of financial activities incorporates the income and expenditure account.
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The John and Tessa Fearnley Charitable Trust Company registration number: 07681098 Balance Sheet As at 5 April 2021
| Note Fixed assets Investments 5 Current assets Cash at bank and in hand 17,471 _ 17,471 Liabilities Creditors falling due within one year 6 (2,008) _ Net current assets Net assets The funds of the charity General fund 7 Revaluation reserve 7 Total charity funds |
2021 2020 £ £ 1,401,769 1,064,830 30,956 _ 30,956 (1,933) _ 15,463 29,023 _ _ 1,417,232 1,093,853 _ _ 1,103,246 965,110 313,986 128,743 _ _ 1,417,232 1,093,853 _ _ |
|---|---|
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
For the year ending 5 April 2021 the charitable company was entitled to exemption from an audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charitable company to obtain an audit of its accounts in accordance with section 476 of the Companies House 2006. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
Approved by the Board of Trustees for issue on 15[th] September 2021 and signed on their behalf by:
T R Leach Trustee
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
1. Accounting policies
- 1.1 General information and basis of accounting
The John and Tessa Fearnley Charitable Trust is a company limited by guarantee incorporated in the United Kingdom under the Companies Act. Each member of the charity undertakes to contribute a maximum of £10 to the charity’s assets if it should be wound up while they are a member or within one year after they cease to be a member. The address of the registered office is given on page 1. The nature of the charity’s operations and its principal activities are set out in the Trustees Report on pages 2-4.
The financial statements have been prepared on the historical cost basis and in accordance with the 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) - (Charites SORP (FRS 102)) and the Companies Act 2006.
The charity 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.
1.2 Funds structure
The Charity has a single fund, created by a gift from Mrs Fearnley. General funds are unrestricted funds receivable or generated for the objects of the company without further specified purpose and are available as general funds.
1.3 Income
All income is recognised once the Charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Income from donations is recognised in the accounts when receivable and the amount can be reliably measured.
Income from investments is recognised in the accounts when receivable.
1.4 Expenditure
Expenditure is accounted for on the accruals basis. Liabilities are recognised in the accounting period to which they relate. Grants are recognised when the decision to fund has been taken and this decision has been communicated to the recipient. The charity does not provide multi-year grants.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
1.5 Fixed asset investments
Investments are recognised initially at fair value which is normally the transaction price (but excludes any transaction costs). Subsequently, investments are held at market value, with all realised and unrealised gains and losses passing through the SOFA.
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
1.6 Debtors
Other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.
1.7 Cash at bank and in hand
Cash at bank and in hand compromise cash on hand and call deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
1.8 Creditors
Creditors and provisions are recognised where the charity 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 are recognised at their settlement amount.
1.9 Taxation
The company is a registered charity and is therefore not liable to corporation tax to the extent that income and gains are applied to charitable objects.
1.10 Financial instruments
The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:
Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost and details in note 9. Investments are basic financial instruments measured at fair value through the income and expenditure account. Prepayments are not financial instruments.
Cash at bank – is classified as a basic financial instrument and is measured at face value.
Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost and detailed in note 9. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
2. Donations
| Donations | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| 2021 | 2020 | |
| £ | £ | |
| Donations - T M Fearnley | 53,773 | 50,010 |
| ___ | ___ | |
| 53,773 | 50,010 | |
| ___ | ___ | |
| Investment income | ||
| Unrestricted | Unrestricted | |
| 2021 | 2020 | |
| £ | £ | |
| Dividends received | 23,911 | 27,588 |
| Interest – UK fixed interest securities | 6,054 | 6,538 |
| ___ | ___ | |
| 29,965 | 34,126 | |
| ___ | ___ |
3. Investment income
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
4. Charitable activities
The charity undertakes its charitable activities through grant making and awarded grants to a number of organisations in furtherance of its charitable activities.
| Unrestricted | Unrestricted | Unrestricted |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| National Art Collections Fund | 3,500 | 1,500 |
| The Woodland Trust | 3,000 | 3,000 |
| WWF - UK | 3,000 | 3,000 |
| The Brooke Hospital for Animals | 2,000 | 3,500 |
| Humane Society International (UK) | 2,000 | 3,500 |
| Royal Society for the Prevention of | ||
| Cruelty to Animals | 2,000 | 3,500 |
| Fauna & Flora International | 2,000 | 2,000 |
| Dogs Trust | 2,000 | 1,500 |
| The Flicka Foundation | 2,000 | 1,500 |
| Battersea Dogs’ and Cats’ Home | 1,000 | 3,500 |
| The Donkey Sanctuary | 1,000 | 3,000 |
| Wood Green Animal Shelters | 1,000 | 3,000 |
| The People’s Dispensary for Sick Animals | 1,000 | 3,000 |
| Royal Society for the Protection of Birds | 1,000 | 1,500 |
| Friends of the Earth Charitable Trust | 1,000 | - |
| The Cornwall Trust for Nature Conservation | 1,000 | - |
| The Guide Dogs for The Blind Association | 1,000 | - |
| The British Red Cross Society | 1,000 | - |
| International Fund for Animal Welfare | - | 2,000 |
| The National Trust |
- | 2,000 |
| World Animal Protection | - | 2,000 |
| The Mare & Foal Sanctuary | - | 1,500 |
| PETA Foundation | - | 1,500 |
| ___ | ___ | |
| Total grants awarded | 30,500 | 46,000 |
| ___ | ___ | |
| Governance costs | ||
| Accountancy | 1,341 | 1,240 |
| Independent examination | 690 | 680 |
| Statutory filing fee | 13 | 13 |
| Trustees travel expenses | 222 | 198 |
| ___ | ___ | |
| Total governance | 2,266 | 2,131 |
| ___ | ___ | |
| Total charitable expenditure | 32,766 | 48,131 |
| ___ | ___ |
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
5. Fixed asset investments
| Movement in fixed asset investments Market value as at 6 April 2020 Additions at cost Donated shares at market value Disposal proceeds Redemption and reorganisations Realised gain on disposals Unrealised gain/(loss) on revaluation Market value as at 5 April 2021 Investments at market value comprised: Equities Fixed interest securities Total 6. Analysis of current liabilities Accruals |
2021 £ 1,064,830 78,935 53,773 (82,315) - 26,680 259,866 _ 1,401,769 _ 2021 £ 1,210,230 191,539 _ 1,401,769 _ 2021 £ 2,008 ___ |
2020 £ 1,207,098 168,920 50,010 (172,389) (439) - (188,369) _ 1,064,830 _ 2020 £ 804,752 260,078 _ 1,064,830 _ 2020 £ 1,933 ___ |
|---|---|---|
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
7. Analysis of charitable funds - 2021
| General fund Revaluation reserve Total unrestricted funds |
Fund b/fwd 06.04.20 £ 965,110 128,743 __ 1,093,853 |
Fund Investment c/fwd Income Expenditure Gains 05.04.21 £ £ £ £ 83,738 (46,905) 101,303 1,103,246 - - 185,243 313,986 _ _ _ _ 83,738 (46,905) 286,546 1,417,232 |
|---|---|---|
Analysis of charitable funds - 2020
| General fund Revaluation reserve Total unrestricted funds |
Fund b/fwd 06.04.19 £ 943,697 317,112 __ 1,260,809 |
Fund Investment c/fwd Income Expenditure Losses 05.04.20 £ £ £ £ 84,136 (62,723) - 965,110 - - (188,369) 128,743 _ _ _ _ 84,136 (62,723) (188,369) 1,093,853 |
|---|---|---|
8. Related party transactions
No trustees were paid any remuneration for their role (2020 – none), and one trustee was reimbursed travel and postage expenses totalling £222 (2020 – one totalling £198).
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The John and Tessa Fearnley Charitable Trust Notes to the Financial Statements For the Year Ended 5 April 2021
9. Financial Instruments
| Categorisation of financial instruments Financial assets that are debt instruments measured at amortised cost Financial assets at fair value through the profit and loss account Financial Instruments Categorisation of financial instruments Financial liabilities measured at amortised cost Items of income, expense, gains or losses Income £ 2021 Financial assets measured at amortised cost - Financial assets at fair value through the profit and loss 29,965 Financial liabilities measured at amortised cost - _ 29,965 _ 2020 Financial assets measured at amortised cost - Financial assets at fair value through the profit and loss 34,126 Financial liabilities measured at amortised cost - ___ 34,126 |
2021 2020 £ £ 17,471 30,956 1,401,769 1,064,830 _ _ 1,419,240 1,095,786 _ _ 2021 2020 £ £ 2,008 1,933 __ _ 2,008 1,933 _ _ Expense Net gains Net losses £ £ £ - - - - 286,546 - - - - __ _ _ - 286,546 - _ _ _ - - - - - (188,369) - - - _ _ ___ - - (188,369) |
|---|---|
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