Charity Registration No. 1148730
THE TMT FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
THE TMT FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr M Barter |
|---|---|
| Mr T Barter | |
| Mr T Browning | |
| Charity number | 1148730 |
| Registered office | Care of Blakes Envelopes |
| Clarence House | |
| Watercombe Lane | |
| YEOVIL | |
| Somerset | |
| BA20 2SU | |
| Independent examiner | Tim Lerwill, FCA |
| Old Mill Accountancy LLP | |
| Wessex House | |
| Challeymead Business Park | |
| MELKSHAM | |
| Wiltshire | |
| SN12 8BU | |
| Bankers | Lloyds Bank |
| 9 High Street | |
| YEOVIL | |
| Somerset | |
| BA20 1RN |
THE TMT FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7 - 15 |
THE TMT FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the foundation'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 201 9).
Objectives and activities
The objects of the Foundation as laid down in the Trust Deed a re :
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The Trustees shall hold the income and capital of the Charity on trust to apply the income, and all or such parts of the capital, at such time or times and in such manner to, or for the benefit of, such exclusively charitable objects in any part of the world as the Trustees may in their discretion think fit.
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The Trustees may in their discretion, for the period of 21 years from the date of the Trust Deed, instead of applying the income of the Charity in any year, accumulate all or any part of the income by investigating the same, and the resulting income, in any investments authorised by the Trust Deed as an accretion to and as part of such accumulated income in any subsequent year as if the same were income of the Charity in the then current year.
During the year £14,840 of donation income was pledged against grants payable and is shown in restricted income within the health and welfare fund.
In meeting the above objectives, the Foundation's aims are to support charitable needs in the areas of health, education, relief of poverty, religious charitable needs and child charity work. The Foundation puts particular emphasis on supporting local charities and charitable causes in Somerset and Dorset.
The trustees have been able to broadly support, through its grant making, the specific aims of the foundation and to have built a substantial reserve to fund future grants.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the foundation should undertake for the public benefit .
The trustees are pleased to have been able to broadly support, through its grant making, the specific aims of the Foundation and to have built a substantial reserve to fund future grants.
The trustees consider all applications for grants that fall within the Foundation's objectives. In deciding upon which grants to award, the Trustees will give preference to applications that fall within the Foundation's particular aims as stated above.
Achievements and performance
Financial review
During the year £314,840 (2019: £504,948) was received in donations. Grants and donations totalling £426,702 (2019: £418,925) were awarded. Funds carried forward at the year end amounted to £846,625 (2019: £962,928).
The reserves of the Foundation at 31 December 2020 were represented by the balance of unrestricted funds of £834,625 (2019: £962,928) and restricted funds of £12,000 (2019:nil).
The Trust Deed expressively permits the Trustees to accumulate all or any part of the incoming resources of the Foundation in any year for a period of 21 years from the 19 March 2012.
The Trustees are permitted by the terms of the Trust Deed to make investments in any manner allowed by law.
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THE TMT FOUNDATION
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees has assessed the major risks to which the foundation is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees plan to build the reserves of the Foundation to provide a capital fund to provide for future grants. The trustees plan to continue to support charitable needs falling within the Foundation's aims.
Structure, governance and management
The foundation is established and governed by a charitable trust deed on 19 March 2012 and registered with the Charity Commission on 28 August 2012 .
The trustees who served during the year and up to the date of signature of the financial statements were: Mr M Barter
Mr T Barter Mr T Browning
Trustees are appointed by the Board of Trustees and are entitled to remain in office for as long as they wish (subject to certain clauses). The minimum number of trustees is three.
The Board of Trustees meets at least quarterly.
The Trustees make full use of Charity Commission guidance to provide the necessary trustee introduction and training.
The trustees are permitted by the terms of the Trust deed to make investments in any manner allowed by law.
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THE TMT FOUNDATION
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Statement of trustees' responsibilities
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The 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 state of affairs of the foundation and of the incoming resources and application of resources of the foundation for that year.
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 judgements and estimates that are reasonable and prudent;
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state whether applicable 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 charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the foundation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' r eport was approved by the Board of Trustees.
Mr M Barter
Trustee Dated: 19 April 2021
Mr T Browning Trustee Dated: 19 April 2021
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THE TMT FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE TMT FOUNDATION
I report on the financial statements of the foundation for the year ended 31 December 2020, which are set out on pages 5 to 15.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of the FCA.
It is my responsibility to:
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(i) examine the financial statements under section 145 of the 2011 Act;
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(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act; and
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(iii) to state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner's statement
In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:
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(a) which gives me reasonable cause to believe that in any material respect the requirements:
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(i) to keep accounting records in accordance with section 130 of the 2011 Act; and
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(ii) to prepare financial statements which accord with the accounting records and comply with the accounting requirements of the 2011 Act;
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have not been met or
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(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
........................ Tim Lerwill, FCA
Wessex House Challeymead Business Park MELKSHAM Wiltshire SN12 8BU
Dated: 22 April 2021
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THE TMT FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted | Restricted | Total | Total | ||
|---|---|---|---|---|---|
| funds | funds | 2020 | 2019 | ||
| Notes | £ | £ | £ | £ | |
| Income from: | |||||
| Donations and legacies | 3 | 300,000 | 14,840 | 314,840 | 504,948 |
| Investments | 4 | 1,234 | - | 1,234 | 768 |
| Total income | 301,234 | 14,840 | 316,074 | 505,716 | |
| Expenditure on: | |||||
| Charitable activities | 5 | 429,537 | 2,840 | 432,377 | 432,764 |
| Total resources expended | 429,537 | 2,840 | 432,377 | 432,764 | |
| Net gains/(losses) on investments | 10 | - | - | - | (100,000) |
| Net (expenditure)/income for the year/ | |||||
| Net movement in funds | (128,303) | 12,000 | (116,303) | (27,048) | |
| Fund balances at 1 January 2020 | 962,928 | - | 962,928 | 989,976 | |
| Fund balances at 31 December 2020 | 834,625 | 12,000 | 846,625 | 962,928 |
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THE TMT FOUNDATION
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Investment properties 11 Current assets Debtors falling due after one year 12 Debtors falling due within one year 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Restricted funds 14 Unrestricted funds |
2020 £ 179,879 5,793 470,432 656,104 (3,120) |
£ 193,641 652,984 846,625 12,000 834,625 846,625 |
2019 £ 185,018 7,666 84,603 277,287 (3,000) |
£ 688,641 274,287 962,928 - 962,928 962,928 |
|---|---|---|---|---|
The accounts were approved by the Trustees on 19 April 2021
Mr M Barter Mr T Browning Trustee Trustee
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Company information
The TMT Foundation is a charity established and governed by charitable trust deed dated 5 April 1995, most recently amended by deed of variation on 9 May 2001. The TMT Foundation is a public benefit entity. The principal address of the charity is Blake Envelopes, Watercombe Lane, Yeovil, Somerset, BA20 2SU.
1.1 Accounting convention
The financial statements have been prepared in accordance with the foundation's Trust Deed, 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)". The foundation is a Public Benefit Entity as defined by FRS 102.
The foundation has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the foundation. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
In light of the current coronavirus pandemic, the trustees have reviewed likely future developments and remain of the opinion that there is no reason to believe that the trust will have to cease operating as a result of inadequate financial resources, or any other foreseeable event, within a period of at least 12 months from the date of the approval of these accounts.
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 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.
1.4 Incoming resources
Income is recognised when the foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probably that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
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Expenditure on charitable activities includes grants and donations payable and support costs. Grants and donations payable are included in recourses expended once or donation has been approved by the trustees and this has been communicated to the recipient. Support costs are those incurred directly in support of the charitable objectives. Charitable activities are undertaken to further the purposes of the charity and their associated support costs.
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Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Governance costs include costs associated with constitutional and statutory requirements.
1.6 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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.
1.8 Financial instruments
The foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the foundation's balance sheet when the foundation becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the foundation transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the foundation’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the foundation’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted Restricted funds funds 2020 2020 £ £ Donations and gifts 300,000 14,840 For the year ended 31 December 2019 500,148 4,800 |
Total 2020 £ 314,840 |
Total 2019 £ 504,948 |
|---|---|---|
| 504,948 |
4 Investments
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Interest receivable | 1,234 | 768 |
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
5 Charitable activities
| Grant funding of activities (see note 6) Share of support costs (see note 7) Share of governance costs (see note 7) Analysis by fund Unrestricted funds Restricted funds For the year ended 31 December 2019 Unrestricted funds Restricted funds |
Health Education 2020 2020 £ £ 36,000 - 307 - 172 - 36,479 - 33,639 - 2,840 - 36,479 - 54,600 63,532 4,800 - 59,400 63,532 |
Poverty Religious 2020 2020 £ £ 9,000 6,000 77 51 43 28 9,120 6,079 9,120 6,079 - - 9,120 6,079 1,240 43,749 - - 1,240 43,749 |
Other 2020 £ 375,702 3,200 1,797 380,699 380,699 - 380,699 264,843 - 264,843 |
Total 2020 £ 426,702 3,635 2,040 432,377 429,537 2,840 432,377 |
Total 2019 £ 418,925 11,859 1,980 |
|---|---|---|---|---|---|
| 432,764 | |||||
| 427,964 4,800 |
|||||
| 432,764 | |||||
| 427,964 4,800 |
|||||
| 432,764 |
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
6 Grants payable
| Grants payable | |||||
|---|---|---|---|---|---|
| Grants to institutions: The Grace Trust Yeovil Gospal Hall Trust Toulon Pledge Sterling West Other Grants to individuals (4 grants) |
Health Education £ £ - - - - - - - - - - - - 36,000 - 36,000 - |
Poverty Religious £ £ - - - 6,000 - - - - - - - 6,000 9,000 - 9,000 6,000 |
Other £ 375,000 - - - 702 375,702 - 375,702 |
Total 2020 £ 375,000 6,000 - - 702 381,702 45,000 426,702 |
Total 2019 £ 252,000 36,000 50,000 10,000 4,375 |
| 352,375 66,550 |
|||||
| 418,925 |
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
7 Support costs
| Support costs Governance costs £ £ Accountancy 1,380 - Bank Charges 134 - Rates and Insurance 2,185 - Heat and Light (128) - Repairs and Maintenance - - Other 64 - Independent Examination - 2,040 3,635 2,040 Analysed between Charitable activities 3,635 2,040 |
2020 £ 1,380 134 2,185 (128) - 64 2,040 5,675 5,675 |
2019 £ 1,320 227 6,819 193 480 2,820 1,980 13,839 13,839 |
|---|---|---|
Support costs includes payments to the independent examiner of £ 1,380 (2019: £ 1,320 ) for other services .
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the foundation during the year.
9 Employees
There were no employees during the year.
10 Net gains/(losses) on investments
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Revaluation of investment properties | - | (100,000) |
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
11 Investment property
| Investment property | |
|---|---|
| 2020 | |
| £ | |
| Fair value | |
| At 1 January 2020 | 688,641 |
| Disposals | (495,000) |
| At 31 December 2020 | 193,641 |
The fair value of the investment property has been arrived at on the basis of a valuation. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The trustees have reviewed the value of the investment properties and believe that there was no change in value as at 31 December 2020.
12 Debtors
| Amounts falling due within one year: Other debtors Amounts falling due after more than one year: Other debtors Total debtors 13 Creditors: amounts falling due within one year Accruals and deferred income |
2020 £ 5,793 2020 £ 179,879 185,672 2020 £ 3,120 |
2019 £ 7,666 2019 £ 185,018 192,684 2019 £ 3,000 |
|---|---|---|
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | |||
|---|---|---|---|---|
| Balance at 1 | Incoming | Outgoing | Balance at 31 | |
| January 2020 | Resources | Resources | December 2020 | |
| £ | £ | £ | £ | |
| Health Fund | - | 12,000 | - | 12,000 |
| Welfare Fund | - | 2,840 | (2,840) | - |
| - | 14,840 | (2,840) | 12,000 |
|
| Prior Year | Movement in funds | |||
| Balance at 1 | Incoming | Outgoing | Balance at 31 | |
| January 2019 | Resources | Resources | December 2019 | |
| £ | £ | £ | £ | |
| Health Fund | - | 4,800 | (4,800) | - |
| - | 4,800 | (4,800) | - |
During the year donations were received specifically to be spent on medical support grants and welfare grants.
15 Analysis of net assets between funds
| Unrestricted funds Restricted funds 2020 2020 £ £ Fund balances at 31 December 2020 are represented by: Investment properties 193,641 - Current assets/(liabilities) 640,984 12,000 834,625 12,000 |
Total 2020 £ 193,641 652,984 846,625 |
Total 2019 £ 688,641 274,287 |
|---|---|---|
| 962,928 |
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THE TMT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
16 Related party transactions
Transactions with related parties
During the year the foundation received donations amounting to £300,000 from Moroak Holdings Ltd (2019: £nil). The foundation received donations amounting to £nil from Moroak T/A Blake Envelopes (2019: £500,000). The trustee's Mr T Barter, Mr M Barter and Mr T Browning are all shareholders of Moroak Holdings Ltd and Moroak T/A Blake Envelopes.
One of the two properties, held as investment properties, was sold during the year ended 31 December 2020. The property was sold, at arms length valuation, to a related party.
No guarantees have been given or received.
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