Charity registration number 1145502
THE ITHACA TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
THE ITHACA TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | R Fiennes |
|---|---|
| James Midgley | |
| J N R Wadham | |
| Charity number | 1145502 |
| Registered office | c/o Two Matts LLP |
| 151 Wardour Street | |
| London | |
| W1F 8WE | |
| Accountants | Two Matts LLP |
| 151 Wardour Street | |
| London | |
| W1F 8WE | |
| Bankers | Arbuthnot Latham |
| Arbuthnot House | |
| 7 Wilson Street | |
| London | |
| EC2M 2SN | |
| Investment Managers | Evelyn Partners |
| 45 Gresham Street | |
| London | |
| EC2V 7BG |
THE ITHACA TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 12 |
THE ITHACA TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
a. Policies and objectives
The principal objective of the Trust is to advance, promote and carry out charitable purposes of the Founder and other trustees. In shaping our objectives for the year and planning our activities and donations, the trustees are mindful of the Charity Commission's guidance on public benefit, including the guidance 'Public benefit- running a charity (PB2)'. The charity meets the criteria of the charity commission on public benefit in prevention and relief of poverty, advancements of health and other areas.
Grants will be made to support::
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Humanitarian causes
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Green, environmental and wildlife issues; and
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Arts productions and students.
Achievements and performance
a. Main achievements of the Charity
The Trustees have continued a policy of supporting other charities and UNICEF remains beneficiary for the relief of poverty and in answering appeals to help with natural disasters throughout the world.
During the year under review, the trust supported a number of small charities where the Trustees believe a modest donation can make a significant difference.
b. Investment policy and performance
The Trustees have the general power of investment to invest the charity's assets as if they were entitled to the assets as conferred by the Trustee Act 2000.
The trustees wish to achieve a moderate but increasing return, whether achieved by capital gain or re-invested income. The initial investment horizon is ten years.
In managing the investments and making or varying the investments the Manager must have regard to the following:
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The suitability to the Charity of the particular investment to be made, or retained as an investment.
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The suitability of that particular investment as an investment of that kind.
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The need for diversification of the investments of the trust so far as is appropriate to the circumstances of the charity.
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The trustees wish to adopt the Tilney 'Growth' Risk Profile (as per the Tilney Investor Risk Profiles as at 31/ 8/16) to allow significant allocation to equities if and when appropriate.
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No withdrawals of income, or capital, are anticipated in the first ten years.
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The Manager is not to commit the trustees to any underwriting short positions or similar obligations.
The Trustees will review the Investment Policy Statement on a regular basis at intervals of not less than two years and any amendments will be discussed and agreed with the manager at meetings to be held at least biennially.
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THE ITHACA TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
c. Reserves
As at 31 December 2022 unrestricted reserves of the charity totalled £1,374,177 (2021: £1,561,108).
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
The general fund accounts for all income and outgoings not designated as restricted. The trust does not have any restricted funds and no funds have been earmarked for specific grants.
Structure, governance and management
a. Constitution
The Ithaca Trust is a registered charity, number 1145502, and constitutes an unincorporated charity. The trust is controlled by its governing document, a deed of trust dated 6 December 2011. The trust was established by a donation from the Founder. The trust does not actively fundraise but does from time to time receive donations from interested benefactors.
b. Methods of appointment or election of Trustees
Terms of appointment are as set out in the deed of trust: new trustees may be appointed in writing by the Founder during his lifetime and thereafter by a resolution of the Trustees. There shall be at least three individual Trustees holding office at any one time.
c. Trustees
The charity is managed by its trustees, who act in an honorary capacity. The trustees have the power to appoint or terminate the appointment of trustees. New trustees are required to attend appropriate training courses. The trustees in the year to 31 December 2022 were as shown in the Reference and Administrative details.
The trustees give freely of their time and there are no employees.
d. Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees have examined the major risks and confirm that systems have been established so that necessary steps can be taken to lessen these risks.
Plans for future periods
The trust will continue to make grant awards in accordance with its charitable objectives.
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THE ITHACA TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 St•tsm•nt ofTru•ts•• rn•pon•lbllh Th• tru$t¢s ar• re$pon$it4e lor prenn9 the Trustees, Report ar the financAal statements in accordanu wrth apFlicable law and Unrted lfjngjom Accounb'ng Standards IUnrt¢d Kingdom Generally Accepted Accounting Prathcel. Th•18w Op1¢$bI lo c8nti•$ in EnglarKI and Ih¥es requires the trustee8 to prepare financial $tat•m•nts for •ath fingnci81 year which give a true and fair view of the $18te of affw'ys of the ¢h•nty and of Ihts Incoming resouTCES fjnd 3pph'¢kn'on of re3our¢e$ of the thanty for that yeor. In preparing these flnanc481 Jtaternwrts, the truste are T•quw•d to.. . Ml•ct suit•Ll• 0¢vnb.ng polic and then apFAy thern consi•tenty: - observe the methods and wnoFAe8 in the chanti SORP.. - make iudgemrrts and ••ts"mat•¥ that are TeawrwL4e and prudent., - 81ate whether aFplicatle accounb.ng st•rKlard8 h9 b•w l<4lry•d, •u4'•ct to Y Mat11 departures di8dosgd •nJ exK4•ined in the fin•nty¥l 8l•t•m•nts," ¥nd . pr•par• th• financial #tat•m•nt• on th• goiNJ con¢•m unlem it IB inappTwat• to Prn8um• that th• ¢h¥dty contrnue in operthoft. Th• tru8t••• •r• r•8p0n•it for ke•wg 8uffici•nl a¢coun9 r•¢tyd$ that di•clo•e wth rea8onabl• accuracy 8t any time th• finana81 position of the d)anty ond en¥t4e them to ensure that the finana81 statements comF4y th the Chanties Ad 2011, the Chanty lACnts an(1 Reportsl Re9$bOn5 2( and thts provisions of th? trust deed. They afe also reSponsie lor safeguarding the assets of the charity gnd hence for tth'ng rtragonabte Steps for lh• Iw•¥tiOn d•tedion ol fraud oth•r irr•gul•nti•¥. Th? tru8t••$' report was 8pprov•d by tr* 8oard ofTru¥t•. 7lilkJ R J Midgley Ch•lr of Trust••s 27- 10
THE ITHACA TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE ITHACA TRUST
I report to the trustees on my examination of the financial statements of The Ithaca Trust (the charity) for the year ended 31 December 2022.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements 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 financial statements to be reached.
Matthew Ashwood
Two Matts LLP 151 Wardour Street London W1F 8WE 30/10/2023 Dated: .........................
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THE ITHACA TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 25,000 | 50,000 |
| Investments | 3 | 4,021 | 8,688 |
| Total income | 29,021 | 58,688 | |
| Expenditure on: | |||
| Raising funds | 4 | 12,567 | 9,457 |
| Charitable activities | 5 | 58,790 | 69,367 |
| Total expenditure | 71,357 | 78,824 | |
| Net gains/(losses) on investments | 9 | (144,595) | 204,942 |
| Net expenditure and movement in funds | (186,931) | 184,806 | |
| Reconciliation of funds: | |||
| Fund balances at 1 January 2022 | 1,561,108 | 1,376,302 | |
| Net movement in funds | (186,931) | 184,806 | |
| Fund balances at 31 December 2022 | 1,374,177 | 1,561,108 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THE ITHACA TRUST BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 FIX q¥•ts Invèstmont• 11 1.342,357 1,506,883 Curr•nt ••Mts Cash at bank and in hgnd 39.080 59.805 Cr•dltorn.' •mounts f•lllng du• one y•ar 12 7,260 Not curr•nl o$8•ts 31,820 S4,225 Total ••Mt l•M currnnt Il*bllld•• 1,374,177 1,561.108 Th• fund• of th• ch•rlty Unre8trithd fvnds 1,374.177 1,561,108 1,374,177 1.561,108 Th&finanty¥I8tst•ents w•T• •Fvoved by the tNst•e•on........................ R J mleY Tru•t••
THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
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THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
1.6 Fixed asset investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 25,000 | 50,000 |
| 3 | Income from investments | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Dividends | 3,792 | 8,650 | |
| Interest | 229 | 38 | |
| 4,021 | 8,688 | ||
| 4 | Expenditure on raising funds | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Investment management | 12,567 | 9,457 |
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THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
5 Expenditure on charitable activities
| Humanitarian Performing Arts 2022 2022 £ £ Direct costs Grant funding of activities (see note 6) 50,910 5,000 Share of support and governance costs (see note ) Support 2,880 - 53,790 5,000 Analysis by fund Unrestricted funds 53,790 5,000 Grants payable Humanitarian Performing Arts 2022 2022 £ £ Grants to institutions: UNICEF 25,910 - Conservation Collective - - The Quay Theatre - - Medicins Sans Frontiers - - War Child UK - - Help Ukraine 25,000 - Other grants paid - 5,000 50,910 5,000 |
Total Humanitarian Performing Arts 2022 2021 2021 £ £ £ 55,910 61,487 5,000 2,880 2,880 - 58,790 64,367 5,000 58,790 64,367 5,000 Total Humanitarian Performing Arts 2022 2021 2021 £ £ £ 25,910 45,000 - - 8,737 - - 5,050 - - 1,500 - - 1,200 - 25,000 - - 5,000 - 5,000 55,910 61,487 5,000 |
Total 2021 £ 66,487 2,880 |
|---|---|---|
| 69,367 | ||
| 69,367 | ||
| Total 2021 £ 45,000 8,737 5,050 1,500 1,200 - 5,000 |
||
| 66,487 |
6 Grants payable
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
8 Employees
The average monthly number of employees during the year was:
| Total There were no employees whose annual remuneration was more than £60,000. |
2022 Number - |
2021 Number - |
|---|---|---|
9 Gains and losses on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| Gains/(losses) arising on: | £ | £ |
| Revaluation of investments | (217,556) | 195,804 |
| Sale of investments | 72,961 | 9,138 |
| (144,595) | 204,942 |
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Fixed asset investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 January 2022 | 1,506,883 |
| Additions | 179,704 |
| Valuation changes | (144,548) |
| Disposals | (199,682) |
| At 31 December 2022 | 1,342,357 |
| Carrying amount | |
| At 31 December 2022 | 1,342,357 |
| At 31 December 2021 | 1,506,883 |
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THE ITHACA TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
12 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Other creditors Accruals and deferred income |
2022 £ 4,380 2,880 7,260 |
2021 £ 1,200 4,380 |
| 5,580 |
13 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At General funds Previous year: At General funds |
1 January 2022 Incoming resources Resources expended Gains and losses At 31 December 2022 £ £ £ £ £ 1,561,108 29,021 (71,357) (144,595) 1,374,177 1 January 2021 Incoming resources Resources expended Gains and losses At 31 December 2021 £ £ £ £ £ 1,376,302 58,688 (78,824) 204,942 1,561,108 |
|---|---|
14 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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