**Charity registration number 1153327** **Company registration number 08635189 (England and Wales)** ## **CHILDS CHARITABLE TRUST** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **CHILDS CHARITABLE TRUST** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mr Christopher Large (Chair)|| |---|---|---| ||Mr Stephen Puttock|| ||Mrs Melanie Churchyard|| ||Mr Robert Peake|| ||Ms Janice Kalyan|(Appointed 14 January 2022)| |**CEO**|Mrs Melanie Churchyard|| |**Charity number**|1153327|| |**Company number**|08635189|| |**Principal address**|40 Chapel Road|| ||Pawlett|| ||Bridgwater|| ||Somerset|| ||TA6 4SH|| |**Registered office**|40 Chapel Road|| ||Pawlett|| ||Bridgwater|| ||Somerset|| ||TA6 4SH|| |**Auditor**|Caladine Limited|| ||Chantry House|| ||22 Upperton Road|| ||Eastbourne|| ||East Sussex|| ||BN21 1BF|| |**Bankers**|NatWest Bank plc|| ||96 Terminus Road|| ||Eastbourne|| ||BN21 3AA|| |**Solicitors**|Mayo Wynne Baxter|| ||3 Bell Lane|| ||Lewes|| ||East Sussex|| ||BN7 1JU|| |**Investment Manager**|Rathbone Investment Management|| ||8 Finsbury Circus|| ||London|| ||EC2M 7AZ|| ||Savills Investment Management|| ||33 Margaret Street|| ||London|| ||W1G 0JD|| |**Property agents**|Bree Prenton Property Consultants|| ||21 The Waterfront|| ||Sovereign Harbour|| ||Eastbourne, BN23 5UZ|| ## **CHILDS CHARITABLE TRUST** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 5| |Statement of Trustees' responsibilities|6| |Independent auditor's report|7 - 9| |Statement of financial activities|10 - 11| |Statement of financial position|12| |Statement of cash flows|13| |Notes to the financial statements|14 - 29| ## **CHILDS CHARITABLE TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ The Trustees present their report and financial statements for Childs Charitable Trust ("the Trust") 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 Trust's memorandum and articles of association, the Companies Act 2006 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** The Trust is a Christian grant-making Trust. Since its inception in 1962 the principal object remains the furtherance of the Christian gospel and the Trustees are actively involved in supporting and encouraging many Christian charities to achieve this goal. There have been considerable ongoing economic consequences both within the UK and overseas whilst we are unable to predict the impact on the charity’s future, we are continually monitoring the situation and taking appropriate advice to ensure the grant-making work of the charity continues. ## **Public Benefit** The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year. The Trust has established its grant making policy to achieve its objects for the public benefit. All applicants are informed of the outcome at the end of the process whether their application has been successful or not. ## **Achievements and performance** ## **Grants Awarded** As required by the Trust’s Memorandum and Articles of Association, all activities have as their core purpose the Trust’s own main objective “the furtherance of the Christian Gospel.” All applications are sent on the Trust’s application form. At the Strategy day the trustees made significant changes to the application process for 2023. Full details can be found on the website. All applications for support are fully considered but, unfortunately, not all can be supported. The total charitable distributions in the year amounted to £703,500 (£652,500 in 2021) This included special humanitarian grants of £100,000 to Missions working in the Ukraine and £23,000 to Missions working in Pakistan. The Trust received 362 applications and awarded grants to 73 different organisations. These organisations are all based in the UK but operate worldwide. Some of the comments that we are able to share are a joy and encouragement to the trustees. ## **Schools Work:** _"What a successful year we've had. Thank you so much for the amazing part the Childs Charitable Trust has played in this success, and for supporting us these last few years as we've pushed forward to reach more young people with the Christian Gospel!”_ - 1 - ## **CHILDS CHARITABLE TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ _“Our bands go into schools, one town or city at a time, to share the gospel with young people through assemblies and lessons, and address current issues young people are facing. Your funding went towards our bursaries that helped to provide those in the most deprived areas or with a small Christian presence, access to the tour in their locality.”_ ## **Bible/Leadership Training:** _“Thank you so much for the generous support of the Childs Charitable Trust, helping church and ministry leaders in Moldova.”_ _“This training programme is vital in enabling the most marginalised people to access ministry training to reach their communities with the gospel. It has had a significant impact through the Christian ministries it has inspired unleashing evangelical outcomes that will cascade long into the future.”_ ## **Pastoral care/Humanitarian Needs:** _“With the funding received we were able to dig a new borehole. This now provides access to clean, safe water for 600 people. Bibles in Luganda and English for adults and children have been distributed to community members. The team had the joy of sharing the Christian gospel through devotions and prayer with the villagers”._ _“We are very grateful to God for His continued provision for our work in Egypt to support vulnerable families and win souls to Christ”._ ## **Monitoring:** In accordance with their monitoring policy, the Trustees monitor the activities and performance of the Trust’s beneficiaries to ensure the gifts are used for their charitable purpose. Impact reports are provided to the Trustees for subsequent review and discussion. These reports enable the Trustees to understand more fully the activities and needs of the recipient charities. The charities themselves express their appreciation for such monitoring as it helps them understand the ethos of the Trust and often enables a closer partnership to develop. Melanie (or another Trustee) visits all grant recipients who have received a significant donation from the Trust in the year and reports back to the Trustees. ## **Missions Day** Every year the Trustees arrange a "Missions Day" to which various Christian charities are invited to join the Trustees, staff and other invited guests, for the day to give presentations of their work and to spend time in prayer. In 2022 we were joined by 5 Mission organisations. The Trustees have expressed how beneficial they feel these days to be in gaining a deeper insight into the work and needs of the Missions. ## **Financial review** ## **Income** The income of the Trust is mainly received from two asset portfolios, commercial properties and investments. The Trustees take advice on their properties from an Eastbourne based commercial property agent. The investment portfolio continues to be managed by Rathbone Investment Management. ## **Asset cover for funds** The Trust's assets are adequate and available to fulfil its obligations. ## **Reserves policy** As all reserves are unrestricted and “free” reserves, it is the policy of the Trust that unrestricted funds should be designated to match the market value of fixed assets investments. This ensures that these funds are considered “permanent” in nature as they are necessary to generate income for the Trust to enable it to carry out its activities and continue in the future. At 31 December 2022, such “permanent” reserves total £9,374,619 equal to the Trust’s fixed asset investments. - 2 - ## **CHILDS CHARITABLE TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **Investment policy:** The investment portfolio managed by Rathbone Investment Management, seeks to achieve a balance between capital growth and income growth through a portfolio investing primarily in equities and fixed interest stocks with medium risk, and to ensure a reasonable income. The Trustees have set certain ethical restrictions on its investments with those being avoided that relate directly to armaments, tobacco, alcohol and media concerns that conflict with the Trust’s Christian ethos. The Trustees are satisfied with the current return on capital. The Trustees meet with the Investment Manager once per year to discuss the requirements for the forthcoming year and to review past performance. ## **Loans** The charity also holds one investment in the form of a loan to a charity with similar objects. The loan receives interest at a market rate and has a period of 14 years remaining on the term. The loan is secured on the assets of the charity. The loan is provided to further the charitable objects of the charity and specifically in furtherance of the Christian Gospel. The Trustees annually review the activities and finances of the charity loaned to, to ensure that these aims are being met. ## **Plans for future periods** It is the intention of the Trustees for the Trust to continue its activities in the long term, using its annual income and maintaining its capital base. ## **Strategy Day** Each year the Trustees hold a Strategy Day to discuss the requirements of the Trust over the next 5/10/15 years and the procedures that might be needed to be put in place to achieve the Trust’s vision. The Trust’s Vision and Mission statements are: Vision – To see a world where every person has the potential to hear and respond to the gospel message. Mission – To strategically fund Christian organisations which promote the Christian gospel. The Trustees also discuss the requirements of the Trustee board and their strategy for Trustee recruitment. A funding strategy is discussed and agreed for the forthcoming year. Details of the agreed strategy is published on the Trust’s website. At the 2022 Strategy Day the Trustees decided that they should continue throughout 2023 to keep aligned with their vision and mission statements ensuring organisations applying for funding in 2023 focus primarily on the sharing of the Christian gospel. The Trustees also discussed their property portfolio. Most of the properties that were in the Trust’s portfolio have now been sold. The Trustees continue to consider future opportunities for investment. ## **Structure, governance and management** ## **Structure** The Trust’s Memorandum and Articles of Association state: The Charity’s Objects are for the public benefit to advance the Christian faith in accordance with the Statement of Beliefs … in Eastbourne, East Sussex and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity. ## **Governance** Whilst the day to day matters and general running of the Trust are delegated to Melanie Churchyard (CEO and Trustee), this is done in reference to the other Trustees who ultimately take responsibility for all decisions. - 3 - ## **CHILDS CHARITABLE TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ The Trustees met every three months to review financial and investment matters, consider grant applications and deal with other issues as necessary. Communications by email and telephone in between formal Trustees’ meetings enable any urgent matters to be dealt with. The CEO and Chair of Trustees meet in between meetings to prepare the agenda for meetings and discuss any other relevant matters. Miss Janice Kalyan was appointed as a Trustee on 14th January 2022. The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr Christopher Large (Chair) Mr Stephen Puttock Mrs Melanie Churchyard Mr Robert Peake Ms Janice Kalyan (Appointed 14 January 2022) All Trustees must be active members of their local church, subscribe to the Trust’s Statement of Beliefs and share the Christian ethos and aims of the Trust. It is imperative that all Trustees have general charity experience and are able to devote their time and energies to the affairs of the Trust. None of the Trustees are remunerated for their services but are reimbursed for out-of-pocket expenses incurred in the performance of their duties as Trustees. ## **Management** Mrs Melanie Churchyard, CEO, deals with all the day to day affairs of the Trust. Melanie was employed throughout the year. The Trust has use of an office in Pawlett, Somerset. Melanie keeps all Trustees fully informed of the matters of the Trust. The remuneration of staff is discussed and decided by the Trustees (excluding Melanie) and is based on relevant skills and responsibilities and in line with the rates prevailing in the charitable sector. Throughout 2022 the Trust was a member of the Civil Society. ## **Risks** The Trustees regularly review and assess the major risks to which the charity is exposed. Advice and guidance is sought from our auditors and other professionals. The main financial risk to the charity is the level of return on investments since this affects the grants it can pay out. The Trustees are aware that there are likely to continue to be significant challenges due to the after effects of the Coronavirus pandemic and the ongoing war in the Ukraine. The Trustees are continually monitoring the situation and keep in regular communication with their advisors and investment manager. It is impossible to eliminate all risks, but the Trustees are satisfied that the systems they have in place mitigate exposure to the major risks as far as they are able. All policies are reviewed in accordance with the agreed review schedule. The Trustees are kept informed by the auditors and solicitors of the Trust of their obligations as charity Trustees together with their legal and statutory duties. Whenever possible, Trustees and staff attend relevant training and seminars to help understand further their responsibilities and duties. Feedback from the grant recipients is essential and it is such reports and testimonies, that help the Trustees evaluate the impact of the support the Trust has provided and to plan for the future. However, as the Trust’s main objective and many of the results reported are of a spiritual nature, tangible evidence is often lacking. The Trustees recognise that it can be difficult to quantify final results and impact; however, they seek to encourage the grant recipients to be as detailed as possible in their reporting. - 4 - ## **CHILDS CHARITABLE TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **Disclosure of information to auditor** This report has been prepared in accordance with the small company regime as outlined in Section 419(2) of the Companies Act 2006. Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information. The Trustees' report was approved by the Board of Trustees. ## **Mr Christopher Large (Chair)** Trustee Dated: 1 August 2023 - 5 - ## **CHILDS CHARITABLE TRUST** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ The Trustees, who are also the Directors of Childs Charitable Trust for the purpose of company law, 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). 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 Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 6 - ## **CHILDS CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHILDS CHARITABLE TRUST** ## **Opinion** We have audited the financial statements of Childs Charitable Trust (the ‘Trust’) for the year ended 31 December 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is 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). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 33 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and - the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements. - 7 - ## **CHILDS CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHILDS CHARITABLE TRUST** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report. ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **The extent to which the audit was considered capable of detecting irregularities including fraud** Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the charity through discussions with trustees, and from our commercial knowledge and experience of the charity sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011 and employment legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. - 8 - ## **CHILDS CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHILDS CHARITABLE TRUST** We assessed the susceptibility of the trust’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. ## **Audit response to risks identified** To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC and relevant regulators There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. **Mr Colin James Dadswell ACCA (Senior Statutory Auditor) for and on behalf of Caladine Limited** 1 August 2023 ## **Chartered Certified Accountants Statutory Auditor** Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF - 9 - ## **CHILDS CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**Current financial year**
**Unrestricted Unrestricted**
**funds**
**funds**
**general**
**designated**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
-
-
Investment property
**4**
200,313
-
Investments
**5**
388,810
-
Other income
**6**
4,433
-
**Total income**
593,556
-
**Expenditure on:**
Raising funds
**7**
49,308
-
Charitable activities
**8**
765,553
-
**Total expenditure**
814,861
-
Net gains/(losses) on investments
**13**
-
(417,067)
**Net (outgoing)/incoming resources**
**before transfers**
(221,305)
(417,067)
Gross transfers between funds
**25**
16,484
(16,484)
**Net movement in funds**
(204,821)
(433,551)
Fund balances at 1 January 2022
664,386
9,808,170
**Fund balances at 31 December 2022**
459,565
9,374,619|**Restricted**
**funds**
**2022**
**£**
15,000
-
-
-
15,000
-
15,000
15,000
-
-
-
-
-
-|**Total**
**2022**
**£**
15,000
200,313
388,810
4,433
608,556
49,308
780,553
829,861
(417,067)
(638,372)
-
(638,372)
10,472,556
9,834,184|**Total**
**2021**
**£**
6,000
173,510
195,280
4,117| |---|---|---|---| ||||378,907| ||||49,268| ||||724,690| ||||773,958| ||||813,073| ||||418,022
-| ||||418,022
10,054,534| ||||10,472,556| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 10 - ## **CHILDS CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **Prior financial year** |**Unrestricted Unrestricted**
**funds**
**funds**
**general**
**designated**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
6,000
-
Investment property
**4**
173,510
-
Investments
**5**
195,280
-
Other income
**6**
4,117
-
**Total income**
378,907
-
**Expenditure on:**
Raising funds
**7**
49,268
-
Charitable activities
**8**
724,690
-
**Total expenditure**
773,958
-
Net gains/(losses) on investments
**13**
-
813,073
**Net (outgoing)/incoming resources before transfers**
(395,051)
813,073
Gross transfers between funds
**25**
(200,318)
200,318
**Net movement in funds**
(595,369)
1,013,391
Fund balances at 1 January 2021
1,259,755
8,794,779
**Fund balances at 31 December 2021**
664,386
9,808,170|**Total**
**2021**
**£**
6,000
173,510
195,280
4,117| |---|---| ||378,907| ||49,268| ||724,690| ||773,958| ||813,073| ||418,022
-| ||418,022
10,054,534| ||10,472,556| - 11 - ## **CHILDS CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL POSITION** ## _**AS AT 31 DECEMBER 2022**_ |**Notes**
**Fixed assets**
Investment property
**16**
Investments
**17**
Mixed motive investments
**18**
**Current assets**
Trade and other receivables
**19**
Cash at bank and in hand
**Current liabilities**
**21**
Net current assets
**Total assets less current liabilities**
**Non-current liabilities**
**22**
**Net assets**
**Income funds**
Unrestricted funds - designated
**26**
Unrestricted funds - general|**2022**
**£**
**£**
2,723,500
6,543,173
107,946
9,374,619
148,105
384,177
532,282
(72,717)
459,565
9,834,184
-
9,834,184
9,374,619
459,565
9,834,184|**2021**
**£**
**£**
2,483,500
7,211,735
112,935
9,808,170
3,840
777,817
781,657
(72,271)
709,386
10,517,556
(45,000)
10,472,556
9,808,170
664,386
10,472,556| |---|---|---| The financial statements were approved by the Trustees on 1 August 2023 Mr Christopher Large (Chair) **Trustee** ## **Company registration number 08635189** - 12 - ## **CHILDS CHARITABLE TRUST** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**2022**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash absorbed by operations
**31**
(793,945)
**Investing activities**
Purchase of investments
(1,635,975)
Proceeds from disposal of investments
1,647,470
Investment income received
388,810
**Net cash generated from/(used in)**
**investing activities**
400,305
**Net decrease in cash and cash equivalents**
(393,640)
Cash and cash equivalents at beginning of year
777,817
**Cash and cash equivalents at end of year**
384,177|**2021**
**£**
**£**
(478,668)
(483,972)
278,909
195,280
(9,783)
(488,451)
1,266,268
777,817| |---|---| - 13 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies** ## **Company information** Childs Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 40 Chapel Road, Pawlett, Bridgwater, Somerset, TA6 4SH. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the Trust's Memorandum and Articles of Association, the Companies Act 2006 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 Trust is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. 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 Trust 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. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. 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 Income** Income is recognised when the Trust 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. The Charity's income consists of voluntary income and that from investments, including property. Cash donations are recognised on receipt. Other donations are recognised once the Trust 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. Rental income from investment properties is deferred where it has been received in advance and is relevant to a subsequent period. Investment income in income from listed investments and loan interest receivable and is recognised in the accounts when receivable. - 14 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies (Continued)** ## **1.5 Expenditure** Liabilities are recognised as soon as a legal or constructive obligation arises committing the Trust to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Costs of activities in furtherance of the Trust's objects are grants made by the Trust to support Christian charitable projects, and the support costs relating to this activity. Costs of raising funds comprise those costs relating to the management and maintenance of the investment properties, as well as the investment manager's fees for managing the investments and securities. Support costs comprise administration costs in relation to grant making, together with governance costs. Governance costs include the costs of auditing the statutory accounts, the cost of Trustees' meetings and the cost of any legal advice to Trustees' on governance or constitutional matters. The support costs have been allocated wholly to the grant making activities, with the exception of the support wages. These wages have been allocated 10% to the costs of raising funds and 90% to the grant making activities, on a time basis. ## **1.6 Property, plant and equipment** Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis: Fixtures, fittings and equipment 3 years straight line (All assets fully depreciated) The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £500. Neither land nor the investment properties are depreciated. ## **1.7 Investment property** Investment properties are those held to earn rentals and/or for capital appreciation. The investment properties are measured using the fair value model and stated at its fair value (open market value) at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year. ## **1.8 Non-current investments** Listed investments are measured using the fair value model and stated at its fair value (open market value) at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year. The Trust also has mixed motive investments in the form of loans to charities with similar objects and these have been dealt with as financial instruments and in accordance with the treatment suggested in the FRS102 SORP (see financial instruments below). The loans receive interest at a market rate (between 5 and 5.5%), are for periods of up to 25 years and are secured on the assets of the charities. They are provided to further the charitable objects of the charity and specifically in furtherance of the Christian Gospel. The Trustees regularly review the activities of the charities loaned to, to ensure that these aims are being met. ## **1.9 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. - 15 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies (Continued)** ## **1.10 Financial instruments** The Trust has mixed motive investments in the form of loans to charities with similar objects. As these are financial instruments, the Trust has applied the treatment suggested in the FRS102 SORP and has initially recognised and measured the loans at the amount paid. The carrying amount will then be adjusted in subsequent years to reflect repayments and any accrued interest as well as adjusting if necessary for any impairment. Other than these mixed motive investments, the Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Basic financial assets include trade and other receivables and cash and bank balances. Basic financial liabilities include trade and other payables where trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of operations from suppliers. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **1.13 Grant Making Policy** The Trust supports by the provision of financial grants some of those Christian organisations whose own activities mirror further the Trust's own aims and objectives. Numerous and varied applications are received by the Trust every month. In addition the Trustees are also aware of other Christian organisations and encourage them to submit applications to the Trust. All applications are prayerfully considered by the Trustees but, due to the Trust's own limited means, not all applications can be supported. Grants for which there is a legal obligation, or a valid expectation of receipt by the beneficiary at the year end, and for which conditions attaching to their payment have been fulfilled, are accounted for in the year. ## **2 Critical accounting estimates and judgements** In the application of the Trust’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. - 16 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **3 Donations and legacies** ||**Restricted **|**Unrestricted**| |---|---|---| ||**funds**|**funds**| |||**general**| ||**2022**|**2021**| ||**£**|**£**| |Donations and gifts|-|6,000| |Grants receivable|15,000|-| ||15,000|6,000| ## **4 Investment property** ||**Unrestricted **|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**general**|**general**| ||**2022**|**2021**| ||**£**|**£**| |Rental income|200,313|173,510| ## **5 Investments** ||**Unrestricted **|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**general**|**general**| ||**2022**|**2021**| ||**£**|**£**| |Income from listed investments|226,691|187,662| |Leasehold extension fees|44,509|-| |Dilapidation costs recuperated|110,000|-| |Interest receivable|7,610|7,618| ||388,810|195,280| - 17 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **6 Other income** ||**Unrestricted **|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**general**|**general**| ||**2022**|**2021**| ||**£**|**£**| |Employment allowance received|4,433|4,117| |**Raising funds**||| ||**Unrestricted**|Unrestricted| ||**funds**|funds| ||**general**|general| ||**2022**|2021| ||**£**|£| |Investment property expenses||| |Property overheads and management|9,382|7,861| |Share of Support costs (see note 10)|5,836|5,819| |Investment property expenses|15,218|13,680| |Investment management fees|34,090|35,588| ||49,308|49,268| |Property overheads and management||| |Rates|1,743|76| |Light and heat|418|227| |Repairs and maintenance|1,957|2,144| |Legal and professional|1,544|1,957| |Insurance|3,721|3,457| ||9,382|7,861| - **7 Raising funds** - 18 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **8 Charitable activities** |Missions day
Grant funding of activities (see note 9)
Share of support costs (see note 10)
Share of governance costs (see note 10)
**Analysis by fund**
Unrestricted funds - general
Restricted funds|**2022**
**£**
5,124
703,500
54,807
17,122
780,553
765,553
15,000
780,553|2021
**£**
-
652,500
55,638
16,552| |---|---|---| |||724,690| |||724,690
-| |||724,690| - 19 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **9 Grants payable** |Grants to institutions:
Off The Fence
Speak Life
Bible Reading Fellowship
Essential Christian
International Needs
Latvian Bible Centre
London City Mission
Wycliffe Bible Translators
Emmanuel Press
MAF UK
ACET
Innovista International
Tearfund
Middle East Media
Azalea
Breadline
Kids Alive International
Befriending
Lifewords
Other grants between £15,000 and £20,000
Other grants between £10,000 and £14,999
Other grants between £5,000 and £9,999
Other grants betweem £3,000 £4,999
Other grants not exceeding £2,999|**2022**
**£**
10,000
45,000
-
30,000
30,000
25,000
25,000
25,000
-
10,000
20,000
20,000
20,000
18,000
15,000
15,000
15,000
-
10,000
20,000
174,000
159,000
9,000
8,500
703,500|2021
£
165,000
-
45,000
40,000
15,000
-
-
15,000
35,000
20,000
10,000
15,000
-
5,000
-
5,000
-
15,000
15,000
-
90,000
111,500
34,000
17,000| |---|---|---| |||652,500| Grants to institutions represent payments made in the year to 73 organisations (2021: 63 organisations). - 20 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**10**|**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
52,528
5,836
Computer expenses
1,407
-
Rent and rates
725
-
Repairs and renewals
1,564
-
Telephone
1,157
-
Printing and postage
560
-
Travel costs
1,114
1,078
Sundries
1,588
-
Audit fees
-
5,964
Accountancy
-
2,820
Legal and professional
-
-
Trustee meeting costs
-
1,424
60,643
17,122
Analysed between
Raising funds
5,836
-
Charitable activities
54,807
17,122
60,643
17,122|**Total**
**2022**
Support costs Governance
costs
**£**
£
£
58,364
52,375
5,819
1,407
1,065
-
725
3,906
-
1,564
767
-
1,157
1,058
-
560
932
-
2,192
127
-
1,588
1,227
-
5,964
-
5,580
2,820
-
2,100
-
-
1,392
1,424
-
1,661
77,765
61,457
16,552
5,836
5,819
-
71,929
55,638
16,552
77,765
61,457
16,552|Total
2021
£
58,194
1,065
3,906
767
1,058
932
127
1,227
5,580
2,100
1,392
1,661| |---|---|---|---| ||||78,009| ||||5,819
72,190| ||||78,009| Governance costs includes payments to the auditors of £5,964 (2021: £5,580) for audit fees and £2,820 (2021: £2,100) for accountancy and bookkeeping support. ## **11 Trustees** Trustee Melanie Churchyard received a salary of £50,010 (2021: £50,010) and employer pension contributions of £2,501 (2021: £2,501) during the year, the authority for the employment of Trustees is contained within the Memorandum and Articles of Association. None of the other Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year. Trustees had total expenditure of £3,302 (2021: £1,661) reimbursed or met by the charity for meeting, travel and other expenditure. - 21 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **12 Employees** The average monthly number of employees during the year was: |Administration
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
1
**2022**
**£**
50,010
5,853
2,501
58,364|**2021**
**Number**
1| |---|---|---| |||**2021**
**£**
50,010
5,683
2,501| |||58,194| There were no employees whose annual remuneration was £60,000 or more. ## **13 Net gains/(losses) on investments** ||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**designated**|**designated**| ||**2022**|**2021**| ||**£**|**£**| |Revaluation of investments|(571,951)|721,023| |Gain/(loss) on sale of investments|(85,116)|17,050| |Revaluation of investment properties|240,000|75,000| ||(417,067)|813,073| ## **14 Taxation** The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. - 22 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**15**|**Property, plant and equipment**|| |---|---|---| |||**Fixtures, fittings and**| |||**equipment**| |||**£**| ||**Cost**|| ||At 1 January 2022|4,361| ||At 31 December 2022|4,361| ||**Depreciation and impairment**|| ||At 1 January 2022|4,361| ||At 31 December 2022|4,361| ||**Carrying amount**|| ||At 31 December 2022|-| ||At 31 December 2021|-| |**16**|**Investment property**|| |||**2022**| |||**£**| ||**Fair value**|| ||At 1 January 2022|2,483,500| ||Net gains or losses through fair value adjustments|240,000| ||At 31 December 2022|2,723,500| One of the freehold properties in East Sussex was revalued on an open market basis in January 2023 and the remaining two properties were revalued in March 2023. All the valuations were carried out by Mr Anton G K Bree FRICS of Bree Prenton Property Consultants, Eastbourne. In addition to the freehold properties held in East Sussex, the year end valuation above includes 3 parcels of bare land and a block of garages linked to one of the freehold interests with a total disclosed value £103,500. These were transferred to the Charity when it was incorporated in 2015 with the acting solicitor placing nominal valuations on them. The Trustees believe the there has been no material change to these valuations as at the balance sheet date. The historical cost of the properties as at 31 December 2022 were £1,677,000 (2021: £1,677,000). - 23 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **17 Fixed asset investments** ||**Listed**| |---|---| ||**investments**| ||**£**| |**Cost or valuation**|| |At 1 January 2022|7,211,735| |Additions|1,635,975| |Valuation changes|(571,951)| |Disposals|(1,732,586)| |At 31 December 2022|6,543,173| |**Carrying amount**|| |At 31 December 2022|6,543,173| |**Mixed motive investments**|| ||**£**| |At 1 January 2022|112,936| |Interest|5,533| |Repayments|(10,523)| |**At 31 December 2022**|107,946| ## **18 Mixed motive investments** Mixed motive investments represent loans made to other charities with similar objects to the charitable company. As these are financial instruments, the charity has applied the treatment suggested in the FRS102 SORP and has initially recognised and measured the loans at the amount paid. The carrying amount will then be adjusted in subsequent years to reflect repayments and any accrued interest as well as adjusting them for any impairment. In order to secure the loans, the charity has a charge over property owned by the loan holders. ## **19 Trade and other receivables** |**Amounts falling due within one year:**
Trade receivables
Other receivables
Prepayments and accrued income|**2022**
**£**
38,105
110,000
-
148,105|2021
£
119
-
3,721| |---|---|---| |||3,840| - 24 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **20 Contingent asset** Childs Charitable Trust has a registered charge of £70,000 over a parcel of land located to the west side of Southdown Road, Seaford, East Sussex. The land is registered in the name of Simmons Contractors Limited (Reg. No. 1695245), a company which went into liquidation in 1989 and has been removed from the Companies House Register. Recoverability of this debt is uncertain. The charity has taken legal advice and Counsel’s opinion on this matter to establish the legal position. It is understood that in the future, ownership of the land plus the property located on the land will revert to the crown but that the land original loan sum of £70,000 which is secured by the charge over the land will be repayable to the charity. Due to the circumstances surrounding this loan which is subject to uncertain future events, the Charity’s interest in this land has not been recognised in these accounts. ## **21 Current liabilities** |Other taxation and social security
Other payables
Accruals and deferred income|**2022**
**£**
1,307
55,000
16,410
72,717|2021
£
333
55,000
16,938| |---|---|---| |||72,271| ## **22 Non-current liabilities** |**Non-current liabilities**||| |---|---|---| ||**2022**|2021| ||**£**|£| |Other payables|-|45,000| ## **23 Financial commitments, guarantees and contingent liabilities** The Trust has made commitments to fund the following organisations for up to a further two years. These have not been charged in the accounts since they are subject to the grant recipients satisfactorily meeting their reporting requirements for future funding to be released. These grants will be paid from current reserves and future income. |Speak Life
Love Barton
All Souls Eastbourne
Amano Christian School
Transform Europe Network|**2023**
**£**
20,000
10,000
10,000
10,000
5,500
55,500|**2024**
**£**
20,000
10,000
10,000
10,000
-
50,000|**Total**
**£**
**40,000**
**20,000**
**20,000**
**20,000**
**5,500**| |---|---|---|---| ||||**105,500**| - 25 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **24 Retirement benefit schemes** ## **Defined contribution schemes** The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund. The charge to the SOFA in respect of defined contribution schemes was £2,501 (2021 - £2,501). ## **25 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**||| |---|---|---|---|---| ||**Incoming**|**Resources**||**Balance at**| ||**resources**|**expended**|**31**|**December**| |||||**2022**| ||**£**|**£**||**£**| |Latvian Biblical Centre|15,000|(15,000)||-| The fund represents monies donated to the Trust from The Stuart Hine Trust CIO with the condition of passing on the monies to the Latvian Biblical Centre. ## **26 Unrestricted funds - designated** These are unrestricted funds which are material to the Trust's activities made up as follows: ||**Balance at**|**Transfers **|**Revaluations,**|
**Balance at**|**Transfers **|**Revaluations,**|**Balance at**| |---|---|---|---|---|---|---|---| ||**1 January 2021**||**gains and**|
**1 January 2022**||**gains and**|**31 December**| ||||**losses**|||**losses**|**2022**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**| |Fixed Asset|||||||| |Investment|||||||| |Fund|8,794,779|200,318|813,073|9,808,170|(16,484)|(417,067)|9,374,619| The fixed asset investment fund represented invested funds of a permanent nature to generate income for the charity to enable it to carry out its activities, and the fixed assets held to run the charity's operations. - 26 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **27 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Designated**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances are represented by:
Investment properties
-
2,723,500
Investments
-
6,543,173
Mixed motive investments
-
107,946
Current assets/(liabilities)
459,565
-
459,565
9,374,619
**Analysis as at year ended 31 December 2021**|**Restricted**
**funds**
**2022**
**£**
-
-
-
-
-|**Total**
**2022**
**£**
2,723,500
6,543,173
107,946
459,565| |---|---|---| |||9,834,184| |||| |Unrestricted
funds
2021
£
Fund balances are represented by:
Investment properties
-
Investments
-
Mixed motive investments
-
Current assets/(liabilities)
709,386
Long term liabilities
(45,000)
664,386|Designated
funds
2021
£
2,483,500
7,211,735
112,935
-
-
9,808,170|Restricted
funds
2021
£
-
-
-
-
-
-|Total
2021
£
2,483,500
7,211,735
112,935
709,386
(45,000)| |---|---|---|---| ||||10,472,556| - 27 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **28 Operating lease commitments Lessee** At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2022**
**£**
480
-
480|**2021**
**£**
480
480| |---|---|---| |||960| ## **Lessor** The operating leases represent leases to third parties in investment properties. The leases are negotiated on average over terms of 10 years and rentals are fixed on average for 5 years. All leases include a provision for five-yearly upward rent reviews, if not earlier, according to prevailing market conditions. There are options in place for either party to extend the lease terms. At the reporting end date the Trust had contracted with tenants for the following minimum lease payments: |Within one year
Between two and five years|**2022**
**£**
60,000
25,000
85,000|**2021**
**£**
148,500
262,000| |---|---|---| |||410,500| ## **29 Events after the reporting date** The property 1 St Annes Road, Eastbourne, BN21 3UN held within Investment properties at £1,420,000 was sold on 31 March 2023 for £1,420,000. The property at 68 Hazelwood Avenue, Eastbourne, BN22 OSQ held within Investment properties at £270,000 was sold on 7 July 2023 for £260,000. ## **30 Related party transactions** ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. ||**2022**|**2021**| |---|---|---| ||**£**|**£**| |Aggregate compensation|58,363|58,193| - 28 - ## **CHILDS CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **30 Related party transactions (Continued)** Reverend Sowersby is the father of the CEO and Trustee, Mrs Melanie Churchyard, who runs the day to day administration of the Trust. He rents a property from the Trust and rent received from him during the year was £250 (2021: £600). Trustee Robert Peake is employed by the registered charity Wycliffe UK (a.k.a Wycliffe Bible Translators). During the year, Wycliffe UK received a grant of £25,000 (2021: £15,000) from Childs Charitable Trust. Robert Peake does not take part in the decision making progress regarding this grant. Childs Charitable Trust received a grant of £15,000 (2021: £nil), from the Stuart Hine Trust, a charity of which Melanie Churchyard is a trustee. The grant was conditional on the money being passed on to the Latvian Bible Centre. ## **31 Cash generated from operations** |**Cash generated from operations**|**2022**|**2021**| |---|---|---| ||**£**|**£**| |(Deficit)/surplus for the year|(638,372)|418,022| |Adjustments for:||| |Investment income recognised in statement of financial activities|(388,810)|(195,280)| |Loss/(gain) on disposal of investments|85,116|(17,050)| |Fair value gains and losses on investment properties|(240,000)|(75,000)| |Fair value gains and losses on investments|571,951|(721,023)| |Movements in working capital:||| |Decrease in mixed motive investments|4,990|4,746| |(Increase)/decrease in trade and other receivables|(144,266)|28,833| |(Decrease)/increase in trade and other payables|(44,554)|78,084| |**Cash absorbed by operations**|(793,945)|(478,668)| ## **32 Analysis of changes in net funds** The Trust had no debt during the year. ## **33 Non-audit services provided by auditor** In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements. - 29 -