**CHARITY REGISTRATION NUMBER: 1154749 COMPANY REGISTRATION NUMBER: CE001433** 

## **Sid Vale Association CIO Unaudited Financial Statements** 

**31 December 2020** 



## **Sid Vale Association CIO** 

## **Financial Statements** 

## **Year ended 31 December 2020** 

||**Pages**|
|---|---|
|Trustees' annual report|**1 to 7**|
|Independent examiner's report to the trustees|**8**|
|Statement of financial activities|**9**|
|Statement of financial position|**10**|
|Notes to the financial statements|**11 to 22**|





## **Sid Vale Association CIO** 

## **Trustees' Annual Report** 

## **Year ended 31 December 2020** 

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 December 2020. 

## **Reference and administrative details** 

|**Registered charity name**|Sid Vale Association CIO||
|---|---|---|
|**Charity registration number**|1154749||
|**Principal office**|36a Fore Street||
||Sidmouth||
||Devon||
||EX10 8AQ||
|**President**|A Darrant||
|**The trustees**|E Harrison - Chairman|Appointed chairman 17 May 2021|
||E Warren - Secretary||
||G Turner - Treasurer||
||N Hyman||
||R Thurlow - Chairman|Resigned 11 May 2021|
|||(Trustee and chairman)|
||V Huntington||
||D Fuller|Resigned 18 March 2021|
||P Brookes|Resigned 29 April 2021|
||R Huntington||
||A Tanner||
||H Hodge|Appointed 26 April 2021|
|**Company secretary**|E Warren||
|**Independent examiner**|N Smy ACA||
||Thomas Westcott Chartered|Accountants|
||Queens House||
||New Street||
||Honiton||
||Devon||
||EX14 1BJ||
|**Bankers**|CAF Bank Ltd||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||ME19 4TA||
||HSBC Bank plc||
||Fore Street||
||Sidmouth||
||Devon||
||EX10 8AA||



**- 1 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Structure, governance and management** 

## **Nature of governing document** 

The Charity is governed by its Constitution dated 26th November 2013. 

## **Recruitment and appointment of trustees** 

The number of Trustees must be within 3 and 20 inclusive. Members and the Trustees may appoint Trustees between AGMs and such appointees must be elected at the next AGM. The Trustees retire on rotation and may make themselves available for re-election. When particular skills are required, we may advertise to recruit new Trustees; this will normally be done locally but it is not necessary for Trustees to reside in the Sid Vale. 

All newly appointed Trustees are provided with a copy of the charity's constitution, the latest Trustees' Report and Annual Accounts, the SVA Health and Safety Policy and the SVA Safeguarding Policy. Appropriate background checks and self-declarations are always obtained. 

## **Major risks and management of those risks** 

Risk management is an important part of the successful and effective management of SVA charity and safeguarding of our funds and assets. 

By managing risk effectively, SVA Trustees can help ensure that: 

- Significant risks are known and monitored enabling trustees to make timely and informed decisions 

- The charity makes the most of opportunities and develops them fully aware of the risks involved 

- Forward and strategic planning are improved 

- Reporting risk management in the annual report helps to demonstrate accountability to members, stakeholders, donors and the general public. 

The SVA's trustees have ultimate responsibility for risk and regularly review and assess the risks faced by SVA in all areas of its work and plan for the management of those risks. The Trustees recognise the legal requirement for a risk management statement in their annual report. 

Whilst the responsibility for risk management is led by trustees, everyone involved in the charity's activities has a part to play in risk management. To ensure this is co-ordinated effectively and that we follow an agreed risk management framework, the process is overseen by a named trustee who does not manage all the risks but ensures that the policy and process is followed across the organisation. 

Each area of the SVA activity is led by a trustee, who will be responsible for and carry out the risk assessment process on a regular basis. The process includes identifying, assessing, recording, managing, reviewing and reporting on risks in their area of work. A standard template for recording SVA risks will be used and a consistent RAG rating used for reporting. All red scored risks will be reported to the co-ordinator prior to each Trustees meeting. 

The policy and process will be reviewed each year to ensure that it is up to date. The policy is available on the website and from the Trumps office. All trustees receive guidance and training on use of the risk management process. 

**- 2 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Structure, governance and management** _**(continued)**_ 

## **Policy on reserves** 

Funds of £3,859k were comprised of a permanent endowment of £3,095k and generally available reserves of £764k. The SVA does not set lower and upper limits for its reserves. This is because a) it does not have the commitments to employees which some charities might have and, b) its objective of acquiring and protecting land in the Sid Vale entails, on occasion, capital commitments of unpredictable value. 

The Trustees consider the level of reserves to be adequate to meet commitments to the majority of its members who have paid for life membership, and to provide a fund for any future opportunities to acquire land for the benefit of the community. A Designated Reserve is being set aside (£20,000 in 2020) to provide for future works to the Museum which is held on a tenant's repairing lease. 

## **Investment policy and objectives** 

Investments comprise the Keith Owen legacy and other surplus funds. With effect from January 2020, in accordance with the Trustees' resolution of 25 November 2019, management of all investments was transferred to a Discretionary Fund Manager. 

## **Public benefit** 

The Charity undertakes, in normal circumstances, the following activities to further public benefit: 

Monitoring planning applications; seeking to protect the historic built environment and conservation areas for the benefit of residents and visitors; and safeguarding the East Devon Area of Outstanding Natural Beauty for the enjoyment and leisure of residents and visitors. 

Maintaining a Museum; with free access to the public, which includes exhibits of local historical and geological interest, changing annually; and through a dedicated area, exhibits and events aimed at young people, to involve and interest children in local artistic, historical and geological matters. 

Providing facilities for recreation and leisure: 

- Maintaining wild flower meadows open spaces and woodlands for free access to the public; 

- Monitoring, and reporting to the relevant authorities, the condition of the River Sid; 

- Making grants to local organisations to support recreational, sporting and leisure activities for all ages; 

Organising walks throughout the year, in town and countryside, to places of historical or environmental interest; 

Arranging talks on subjects of local interest to audiences of up to 300; 

Publishing books and pamphlets on matters of local interest. 

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. 

**- 3 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Objectives and activities** 

## **Objects and aims** 

The objects of the Association in accordance with its revised Constitution dated 26 November 2013, are; 

In the Valley of the River Sid in East Devon and its environs: 

- To promote for the benefit of the public the conservation protection and improvement of the physical and natural environment. 

- To advance the education of the public by the establishment and maintenance of a museum and a local history group. 

- To provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reasons of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life. 

The Association shall be administered and managed, in accordance with the Constitution, by a body of charity trustees elected or re-elected at an Annual General Meeting and called the Management Committee which shall comprise the formal offices of Chairman, Vice-Chairman, Secretary and Treasurer, and up to 20 ordinary members. 

The Management Committee shall appoint committees to undertake the activities of the Association. A committee must contain at least one Trustee, and report regularly to the Management Committee. 

**- 4 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Objectives and activities** _**(continued)**_ 

## **Objectives, strategies and activities** 

The Association's Activities are implemented through a number of Committees covering: 

- Conservation and Planning:- The major tasks of this Committee are to monitor and make representations on planning applications to both Sidmouth Town and East Devon District Councils and to comment on any proposed developments in the Sid Valley. 

- Footpaths: - Has the objective of keeping paths open and usable in conjunction with the Town and Council Councils. 

- Keith Owen Fund:- This grants committee vets applications for awards and makes recommendations to the Management Committee for awards exceeding £5,000. Applications are invited from local organisations to further the objects of the Association. Grants totalling £16,176 were paid during the year and at the year-end approval had been given to £11,791 for projects which had not yet been completed. 

- Investment Committee:- The investments committee invests the Keith Owen legacy, and any other surplus funds approved by the Trustees, in accordance with the delegated authority of the Trustees. In January 2020 all holdings were liquidated and the sum of £3,043,015 was transferred to a Discretionary Fund Manager. 

- Museum:- The museum is an accredited museum. The Museum Committee is responsible for the collection and display of exhibits, and the day to day running the Museum which is open from the beginning of April to end of October, free of charge to the public. Its exhibits include items of local historical and geological interest, exhibitions relating to Peter Orlando Hutchins, a local historian, and the Sidmouth Long Picture. A dedicated area is provided for exhibits and events aimed at young people, to involve and interest children in local artistic pursuits. 

- Publications:- Publishing books and leaflets of local interest. 

- River:- Promoting and enhancing the environment of the River Sid. 

- Excursions:- Aiming to organise 3 Excursions each year for the social, historical and educational interests of SVA members. 

- Walks:- Organising visits to places of interest, and walks around the Sid Valley. 

- Woodlands and Estates:- Maintenance and improvement of land owned by the Association for the enjoyment of the public. 

**- 5 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Achievements and performance** 

In 2020 the Association’s activities were greatly curtailed because of the Covid-19 pandemic and the responses to it. 

We decided to close the Sidmouth Museum throughout 2020, irrespective of formal lockdowns, to ensure the health and safety of our visitors and volunteer workforce. The consequent absence of visitors had a commensurate impact upon donation income. Online sales and curating activities were able to continue, however, thanks to the efforts of lone-working volunteers. In addition, we were able to complete the extension works which will provide disabled access and staff facilities when the Museum re-opens. 

The Keith Owen Fund awarded £16k to local community clubs and activities before the fund was effectively closed because of the pandemic. It was re-opened to new applications in December 2020. 

In 2020, whilst complying with social distancing requirements, we were able to continue with the planned improvements to The Knapp which was acquired in 2019. This open space and nature reserve, formerly owned by EDDC, abuts and is linked to our own area known as Peaslands Knapp. Together, they are an important area of publically accessible open space within the built up centre of Sidmouth. 

In addition, despite the lockdowns preventing any physical PR presence at the usual community events, we were able to recruit 32 new members. This was a relatively good result which helped partly to offset the loss of 69 members, for mostly unavoidable reasons. We are currently maintaining a base of c.1800 members. 

## **Financial review** 

The principal source of income is dividends from our investments, which was greatly reduced in 2020. The extended holding of cash during the market turmoil of early 2020, the downward pressure on global yields and the expected yield reduction from migrating to a balanced fund all combined to produce investment income of £75k (2019: £157k). Together with other sources, total operating income for 2020 was £99k (2019: £193k). The investment fund rallied to produce gains in the year of £225k so that, after charitable expenditure of £153k, our net funds increased by £171k. Total funds as at the end of 2020 were £3,859k (2019: £3,688k). 

**- 6 -** 



## **Sid Vale Association CIO** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **Trustees' responsibilities statement** 

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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. 

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 applicable Charities SORP; 

- make judgments and accounting estimates that are reasonable and prudent; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The trustees' annual report was approved on …………………………………….. and signed on behalf of the board of trustees by: 

**E Harrison - Chairman Trustee** 

**E Warren Charity Secretary** 

**- 7 -** 



## **Sid Vale Association CIO** 

## **Independent Examiner's Report to the Trustees of Sid Vale Association CIO** 

## **Year ended 31 December 2020** 

I report to the trustees on my examination of the financial statements of Sid Vale Association CIO ('the charity') for the year ended 31 December 2020. 

## **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 Act’). 

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner's statement** 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

- accounting records were not kept in respect of the charity as required by section 130 of the Act; or 

- the financial statements do not accord with those records; or 

- 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 accounts to be reached. 

**N Smy ACA Independent Examiner Thomas Westcott Chartered Accountants Queens House New Street Honiton Devon EX14 1BJ** 

## **Dated:** 

**- 8 -** 



## **Sid Vale Association CIO** 

## **Statement of Financial Activities** 

## **Year ended 31 December 2020** 

|||**Year ended**|**31 December 2020**|**31 December 2020**|||
|---|---|---|---|---|---|---|
||||**2020**|||2019|
|||Unrestricted|Restricted|Endowment|||
|||funds|funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|**£**|£|
|**Income and endowments**|||||||
|Donations and legacies|**4**|17,352|20|–|17,372|13,444|
|Other trading activities|**5**|6,410|–|–|6,410|22,350|
|Investment income|**6**|75,320|–|–|75,320|157,336|
|||`─────────`|`────`|`────`|`─────────`|`─────────`|
|**Total income**||99,082|20|–|**99,102**|193,130|
|||`═════════`|`════`|`════`|`═════════`|`═════════`|
|**Expenditure**|||||||
|Expenditure on|||||||
|charitable activities|**7,8**|135,281|17,877|–|**153,158**|219,542|
|||`─────────`|`────────`|`────`|`─────────`|`─────────`|
|**Total expenditure**||135,281|17,877|–|**153,158**|219,542|
|||`═════════`|`════════`|`════`|`═════════`|`═════════`|
|Net gains/(losses) on|||||||
|investments|**11**|8,152|–|216,573|**224,725**|338,633|
|||`─────────`|`────────`|`─────────`|`─────────`|`─────────`|
|**Net income/(expenditure)**||(28,047)|(17,857)|216,573|**170,669**|312,221|
|||`═════════`|`════════`|`═════════`|`═════════`|`═════════`|
|Transfers between funds||–|–|–|**–**|–|
|||`─────────`|`────────`|`─────────`|`─────────`|`─────────`|
|**Net movement in funds**||(28,047)|(17,857)|216,573|**170,669**|312,221|
|**Reconciliation of funds**|||||||
|Total funds brought forward||770,652|38,968|2,878,697|**3,688,317**|3,376,096|
|||`─────────`|`─────────`|`────────────`|`────────────`|`────────────`|
|**Total funds carried forward**||742,605|21,111|3,095,270|**3,858,986**|3,688,317|
|||`═════════`|`═════════`|`════════════`|`════════════`|`════════════`|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

**The notes on pages 11 to 22 form part of these financial statements.** 

**- 9 -** 



## **Sid Vale Association CIO** 

## **Statement of Financial Position** 

## **31 December 2020** 

|||**2020**||2019|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Fixed assets**|||||
|Tangible fixed assets|**16**||**267,651**|271,492|
|Heritage assets|**17**||**401**|401|
|Investments|**18**||**3,213,855**|2,986,966|
||||`────────────`|`────────────`|
||||**3,481,907**|3,258,859|
|**Current assets**|||||
|Stocks|**19**|**13,000**||13,000|
|Debtors|**20**|**2,118**||3,362|
|Cash at bank and in hand||**369,249**||414,236|
|||`─────────`||`─────────`|
|||**384,367**||430,598|
|**Creditors: amounts falling due within one year**|**21**|**7,288**||1,140|
|||`─────────`||`─────────`|
|**Net current assets**|||**377,079**|429,458|
||||`────────────`|`────────────`|
|**Total assets less current liabilities**|||**3,858,986**|3,688,317|
||||`════════════`|`════════════`|
|**Funds of the charity**|||||
|Endowment funds|||**3,095,270**|2,878,697|
|Restricted funds|||**21,111**|38,968|
|Unrestricted funds|||**742,605**|770,652|
||||`────────────`|`────────────`|
|**Total charity funds**|**22**||**3,858,986**<br>`════════════`|3,688,317<br>`════════════`|



These financial statements were approved by the board of trustees and authorised for issue on…………………………………………., and are signed on behalf of the board by: 

**G Turner - Treasurer Trustee** 

**E Harrison - Chairman Trustee** 

**The notes on pages 11 to 22 form part of these financial statements.** 

**- 10 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** 

## **Year ended 31 December 2020** 

## **1. General information** 

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 36a Fore Street, Sidmouth, EX10 8AQ, Devon. 

## **2. Statement of compliance** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011. 

## **3. Accounting policies** 

## **Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going concern** 

There are no material uncertainties about the charity's ability to continue. 

## **Disclosure exemptions** 

The Charity has taken advantage of the exemption in FRS102 from the requirement to produce a cashflow statement because it is a small charity. 

## **Judgements and key sources of estimation uncertainty** 

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## **Cash and cash equivalents** 

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. 

**- 11 -** 



**Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **3. Accounting policies** _**(continued)**_ 

## **Fund accounting** 

Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity. 

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees. 

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. 

Permanent endowment funds are those donated for use in a particular area or for specific purposes, where there is no power to convert the capital into income. 

## **Incoming resources** 

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- Subscription income for life membership is included in the Statements of Financial Activities in the year it is received. 

- Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. 

- Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. 

- Donated assets are recognised when the asset becomes available for use by the Charity. Given the nature of the donated assets, many of which are museum exhibits, these can often not be reliably measured. A full list of museum exhibits can be provided on request. 

- Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. 

**- 12 -** 



**Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **3. Accounting policies** _**(continued)**_ 

## **Resources expended** 

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

Governance costs include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee’s meetings and reimbursed expenses. 

## **Tangible assets** 

Individual fixed assets costing £0.01 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 

In addition to the assets shown in the balance sheet the Association owned the following, land which has been gifted or acquired over the years and comprises: 

## Freehold Land and Property: 

- approximately 20 acres of land on Salcombe Hill known as James Cornish Fields 

- 2 acres known as Combe Head 

- 2 acres at Highfield Bickwell Valley 

- 19 acres in the Byes comprising Livonia Field, Gilchrist Field and Margaret’s Meadow 

- 1.6 acres at Peaslands Knapp 

- Trow Pump House, Salcombe Regis 

- The Knapp Open Space and Nature Reserve, Station Road 

Leasehold Land and Property: 

- property at Hope Cottage 

- property at 36a Fore Street 

There are no known costs of any land owned by the charity. The land is used for charitable purposes and there is no intention to dispose of the land or develop any areas. It is not practical to quantify the market value for the land due to its charitable purpose and use. 

**- 13 -** 



**Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **3. Accounting policies** _**(continued)**_ 

## **Depreciation** 

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: 

Plant and machinery 

- 20% reducing balance 

## **Heritage assets** 

The Charity has previously prepared accounts on the Receipts and Payments basis due to it being within the thresholds and has therefore shown asset additions through the Statement of Financial Activities. 

The charity will recognise purchase heritage asset additions over £100 at cost in accordance with the SORP and Charities Act. 

Heritage assets are defined as tangible property with historical, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture. 

The Charity considers its museum exhibits fall within this definition. 

The majority of the Charity's heritage assets have been donated over many years. 

The exhibits in the Museum range in scale, age and nature, a full inventory list can be viewed on request.  The exhibits are valued for insurance purposes at £157,370. 

## **Investments** 

Current asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. 

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. 

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss.  Where fair value cannot be measured reliably, investments are measured at cost less impairment. 

Investments comprise the Keith Owen legacy and other surplus funds. In accordance with delegated authority of the Trustees investments are held within a discretionary fund. 

The investments can be converted into cash at short notice and are therefore highly liquid, for this reason they are classified as current assets. 

**- 14 -** 



**Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **3. Accounting policies** _**(continued)**_ 

## **Impairment of fixed assets** 

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. 

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. 

## **Stocks** 

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. 

## **Financial instruments** 

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. 

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. 

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. 

Debt instruments are subsequently measured at amortised cost. 

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. 

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship. 

**- 15 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **3. Accounting policies** _**(continued)**_ 

## **Financial instruments** _**(continued)**_ 

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. 

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. 

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 

## **4. Donations and legacies** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2020**|
|**2020**|£|**£**|**£**|
|**Donations**||||
|Donations|2,795|20|**2,815**|
|Regular giving and capital donations||||
||2,025|**–**|**2,025**|
||`────────`|`────────`|<br>`────────`|
||4,820|20|**4,840**|
|**Grants**||||
|Government and others|12,532|**–**|**12,532**|
|**Legacies**||||
|Legacies|–|**–**|**–**|
||`────────`|`────────`|<br>`────────`|
||17,352|20|**17,372**|
||`════════`|`════════`|<br>`════════`|
||Unrestricted|Unrestricted|Total Funds|
||Funds|Funds|2019|
|2019|£|£|£|
|**Donations**||||
|Donations|10,418|–|10,418|
|Regular giving and capital donations|2,526|–|2,526|
||`────────`|`────────`|<br>`────────`|
||12,944|–|12,944|
|**Grants**||||
|Government and others|–|–|–|
|**Legacies**||||
|Legacies|500|–|500|
||`────────`|`────────`|<br>`────────`|
||13,444|–|13,444|
||`════════`|`════════`|<br>`════════`|



**- 17 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **5. Other trading activities** 

|||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|
|||Funds|Funds|**2020**|
||**2020**|£|£|**£**|
||Income from sales of goods and services|5,310|–|**5,310**|
||Income from other trading activities|1,100|–|**1,100**|
|||`────────`|`────`|<br>`────────`|
|||6,410|–|**6,410**|
|||`════════`|`════`|<br>`════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2019|
||2019|£|£|£|
||Income from sales of goods and services|21,247|–|21,247|
||Income from other trading activities|1,103|–|1,103|
|||`────────`|`────`|<br>`────────`|
|||22,350|–|22,350|
|||`════════`|`═══════`|<br>`════════`|
|**6.**|**Investment income**||||
|||Unrestricted|Restricted|**Total Funds**|
|||Funds|Funds|**2020**|
||**2020**|£|£|**£**|
||Income from listed investments|75,320|–|**75,320**|
|||`═════════`|`════`|<br>`═════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2019|
||2019|£|£|£|
||Income from listed investments|157,336|–|157,336|
|||`═════════`|`═══════`|<br>`═════════`|
|**7.**|**Expenditure on charitable activities by fund type**||||
|||Unrestricted|Restricted|**Total Funds**|
|||Funds|Funds|**2020**|
||**2020**|£|£|**£**|
||Awards|16,176|–|**16,176**|
||Other charitable activities|114,037|17,877|**131,914**|
||Support costs|5,068|–|**5,068**|
|||`─────────`|`────────`|<br>`─────────`|
|||135,281|17,877|**153,158**|
|||`═════════`|`════════`|<br>`═════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2019|
||2019|£|£|£|
||Awards|59,741|–|**59,741**|
||Other charitable activities|90,483|61,792|**152,275**|
||Support costs|7,526|–|**7,526**|
|||`─────────`|`────────`|<br>`─────────`|
|||157,750|61,792|**219,542**|
|||`═════════`|`═══════`|<br>`═════════`|



**- 17 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **8. Expenditure on charitable activities by activity type** 

||Activities||||
|---|---|---|---|---|
||undertaken|Support|**Total funds**|Total fund|
||directly|costs|**2020**|2019|
||£|£|**£**|£|
|Awards|16,176|–|**16,176**|59,741|
|Other charitable activities|131,914|–|**131,914**|152,275|
|Governance costs|–|5,068|**5,068**|7,526|
||`─────────`|`───────`|`─────────`|`─────────`|
||148,090|5,068|**153,158**|219,542|
||`═════════`|`═══════`|`═════════`|`═════════`|



Awards are granted in accordance with the charity’s objectives and the Keith Owen Memorandum of Intention. Details of grants paid in the year can be provided by contacting the Charity Treasurer. 

Details of Institutional grants can be found on the Charity's website: 

http:www.sidvaleassociation.org.uk/keith-owen-funds/grant-awards. 

## **9. Analysis of support costs** 

||**Unrestricted**|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||**Funds**|**2020**|Funds|2019|
||**£**|**£**|£|£|
|Audit fees|**–**|<br>**–**|**–**|**–**|
|Independent examination fees|**1,060**|<br>**1,060**|1,140|1,140|
|Insurance|**1,637**|<br>**1,637**|1,578|1,578|
|Other governance costs|**2,371**|<br>**2,371**|4,808|4,808|
||`───────`|<br>`───────`|<br>`───────`|<br>`───────`|
||**5,068**<br>`═══════`|<br>**5,068**<br> <br>`═══════`|7,526<br> <br>`═══════`|7,526<br> <br>`═══════`|



## **10. Taxation** 

The charity is a registered charity and is therefore exempt from taxation. 

## **11. Net gains/(losses) on investments** 

||Unrestricted|Restricted|Endowment|**Total Funds**|
|---|---|---|---|---|
||Funds|Funds|Funds|**2020**|
|**2020**|£|£|£|**£**|
|Gains/(losses) on listed investments|8,152|–|216,573|**224,725**|
||`════════`|`════`|`═════════`|<br>`═════════`|
||Unrestricted|Restricted|Endowment|Total Funds|
||Funds|Funds|Funds|2019|
|2019|£|£|£|£|
|Gains/(losses) on listed investments|12,284|–|326,349|**338,633**|
||`════════`|`═══════`|`═════════`|<br>`═════════`|



**12. Net income/(expenditure)** 

Net income/(expenditure) is stated after charging/(crediting): 

||**2020**|2019|
|---|---|---|
||**£**|£|
|Depreciation of tangible fixed assets|**3,841**|3,841|
||`═══════`|`═══════`|



**- 18 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **13. Independent examination fees** 

||**2020**|2019|
|---|---|---|
||**£**|£|
|Fees payable to the independent examiner for:|||
|Independent examination of the financial statements|**1,060**<br>`═══════`|1,140<br>`═══════`|



## **14. Staff costs** 

The Charity has no employees, therefore no employee received emoluments of more than £60,000 during the year. 

## **15. Trustee remuneration and expenses** 

No trustee, nor any person connected with them, have received any remuneration from the Charity during the year. 

## **16. Tangible fixed assets** 

||Land and|Plant and||
|---|---|---|---|
||buildings|machinery|**Total**|
||£|£|**£**|
|**Cost**||||
|**At 1 January 2020 and 31 December 2020**|263,306|22,663|**285,969**|
||`═════════`|`════════`|`═════════`|
|**Depreciation**||||
|At 1 January 2020|–|14,477|**14,477**|
|Charge for the year|–|3,841|**3,841**|
||`─────────`|`────────`|`─────────`|
|**At 31 December 2020**|–|18,318|**18,318**|
||`═════════`|`════════`|`═════════`|
|**Carrying amount**||||
|**At 31 December 2020**|263,306|4,345|**267,651**|
||`═════════`|`════════`|`═════════`|
|At 31 December 2019|263,306|8,186|271,492|
||`═════════`|`════════`|`═════════`|



## **17. Heritage assets** 

||**Heritage**|
|---|---|
||**assets**|
||**£**|
|**Cost or valuation**||
|**At 1 January 2020 and 31 December 2020**|**401**|
||`════`|
|**Accumulated depreciation**||
|**At 1 January 2020 and 31 December 2020**|**–**|
||`════`|
|**Carrying amount**||
|**At 31 December 2020**|**401**|
||`════`|
|At 31 December 2019|401|
||`════`|



**- 19 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **18. Investments** 

||||**Other**|
|---|---|---|---|
||||**investments**|
||||**£**|
||**Cost or valuation**|||
||At 1 January 2020||**2,986,966**|
||Additions||**15,736**|
||Fair value movements||**211,153**|
||||`────────────`|
||**At 31 December 2020**||**3,213,855**|
||||`════════════`|
||**Carrying amount**|||
||**At 31 December 2020**||**3,213,855**|
||||`════════════`|
||At 31 December 2019||2,986,966|
||||`════════════`|
||All investments shown above are held at valuation.|||
||The above carrying amounts are recognised as follows:|||
||||**2020**|
||||**£**|
||**At 31 December 2020**|||
||Held at fair value||**3,213,855**|
||Held at historical cost||**3,046,502**|
||||`════════════`|
||||2019|
||||£|
||At 31 December 2019|||
||Held at fair value||2,986,966|
||Held at historical cost||2,389,335|
||||`════════════`|
|**19.**|**Stocks**|||
|||**2020**|2019|
|||**£**|£|
||Raw materials and consumables|**13,000**|<br>13,000|
|||`════════`|<br>`════════`|
|**20.**|**Debtors**|||
|||**2020**|2019|
|||**£**|£|
||Other debtors|**2,118**|<br>3,362|
|||`═══════`|<br>`═══════`|
|**21.**|**Creditors:** **amounts falling due within one year**|||
|||**2020**|2019|
|||**£**|£|
||Other creditors|**7,288**|<br>1,140|
|||`═══════`|<br>`════════`|



**- 20 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **22. Analysis of charitable funds** 

## **Unrestricted funds** 

||At||||Gains and|<br>**At**|
|---|---|---|---|---|---|---|
||1 Jan 2020|Income|Expenditure|Transfers|losses|<br>**31 Dec 2020**|
|**2020**|£|£|£|£|£|**£**|
|General Funds|755,652|99,082|<br>(135,281)|(5,000)|8,152|<br>**722,605**|
|Designated Fund|15,000|–|<br>–|5,000|–|<br>**20,000**|
||`─────────`|`─────────`|<br>`─────────`|`───────`|`────────`|<br>`─────────`|
||770,652|99,082|<br>(135,281)|–|8,152|<br>**742,605**|
||`═════════`|`═════════`|<br>`═════════`|`═══════`|`════════`|<br>`═════════`|
||At||||Gains and|<br>At|
||1 Jan 2019|Income|Expenditure|Transfers|losses|<br>31 Dec 2019|
|2019|£|£|£|£|£|£|
|General Funds|713,432|193,130|<br>(157,750)|(5,444)|12,284|<br>755,652|
|Designated Fund|10,000|–|<br>–|5,000|–|<br>15,000|
||`─────────`|`─────────`|<br>`─────────`|`───────`|`────────`|<br>`─────────`|
||723,432|193,130|<br>(157,750)|(444)|12,284|<br>770,652|
||`═════════`|`═════════`|<br>`═════════`|`═══════`|`════════`|<br>`═════════`|



## **Purposes of unrestricted funds** 

## General funds 

These reserves are available for the general furtherance and objectives of the Association. The Trustees consider the level of reserves to be adequate to meet commitments to the majority of its members who have paid for life membership, and to provide a Fund for any future opportunities to acquire land for the benefit of the community. 

## Designated funds 

Funds to be designated in respect of significant premises maintenance and repairs. 

## **Restricted funds** 

|||At||||Gains and|<br>**At**|
|---|---|---|---|---|---|---|---|
||1|Jan 2020|Income|Expenditure|Transfers|losses|<br>**31 Dec 2020**|
|**2020**||£|£|£|£|£|**£**|
|Restricted Fund||38,968|20|<br>(17,877)|–|–|<br>**21,111**|
|||`═════════`|`════`|<br>`════════`|`════`|`════`|<br>`════════`|
|||At||||Gains and|<br>At|
||1|Jan 2019|Income|Expenditure|Transfers|losses|<br>31 Dec 2019|
|2019||£|£|£|£|£|£|
|Restricted Fund||100,760|–|<br>(61,792)|–|–|<br>38,968|
|||`═════════`|`═══════`|<br>`═══════`|`════`|`═══════`|<br>`═════════`|



## **Purposes of restricted funds** 

Landscape Fund jointly held with the National Trust for the purchase of land in the Sid Valley. During the year the National Trust passed all ownership rights and responsibility to the Charity. 

**- 21 -** 



## **Sid Vale Association CIO** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 December 2020** 

## **22. Analysis of charitable funds** _**(continued)**_ 

## **Permanent endowment funds** 

||At||||Gains and|<br>**At**|
|---|---|---|---|---|---|---|
||1 Jan 2020|Income|Expenditure|Transfers|losses|<br>**31 Dec 2020**|
|**2020**|£|£|£|£|£|**£**|
|Permanent|||||||
|Endowment Fund|2,878,697|–|<br>–|–|216,573|<br>**3,095,270**|
||`════════════`|`════`|<br>`════`|`════`|`═════════`|<br>`════════════`|
||At||||Gains and|<br>At|
||1 Jan 2019|Income|Expenditure|Transfers|losses|<br>31 Dec 2019|
|2019|£|£|£|£|£|£|
|Permanent|||||||
|Endowment Fund|2,551,904|–|<br>–|444|326,349|<br>2,878,697|
||`════════════`|`════`|<br>`════`|`════`|`═════════`|<br>`════════════`|



## **Purpose of permanent endowment funds** 

To be applied in accordance with a Memorandum of Intention dated 4th June 2007. 

## **23. Analysis of net assets between funds** 

||Unrestricted|Restricted|Endowment|**Total Funds**|
|---|---|---|---|---|
||Funds|Funds|Funds|**2020**|
|**2020**|£|£|£|**£**|
|Tangible fixed assets|267,651|–|–|**267,651**|
|Heritage assets|401|–|–|**401**|
|Investments|118,585|–|3,095,270|**3,213,855**|
|Current assets|363,256|21,111|–|**384,367**|
|Creditors less than 1 year|(7,288)|–|–|**(7,288)**|
||`─────────`|`────────`|`────────────`|<br>`────────────`|
|**Net assets**|742,605|21,111|3,095,270|**3,858,986**|
||`═════════`|`════════`|`════════════`|<br>`════════════`|
||Unrestricted|Restricted|Endowment|Total Funds|
||Funds|Funds|Funds|2019|
|2019|£|£|£|£|
|Tangible fixed assets|271,492|–|–|271,492|
|Heritage assets|401|–|–|401|
|Investments|108,269|–|2,878,697|2,986,966|
|Current assets|391,630|38,968|–|430,598|
|Creditors less than 1 year|(1,140)|–|–|(1,140)|
||`─────────`|`────────`|`────────────`|<br>`────────────`|
|Net assets|770,652|38,968|2,878,697|3,688,317|
||`═════════`|`═════════`|`════════════`|<br>`════════════`|



## **24. Contingencies** 

Grants from the Keith Owen Fund to local organisations approved for payment in 2020 were £11,791 (£17,904 in 2019). 

## **24. Events after the end of the reporting period** 

At the year-end, the Charity had already spent a period of time navigating through the impact of the Coronavirus global pandemic. In the months following the year-end, the country went back into national lockdown which resulted in continued operational challenges. 

The Trustees do not deem there to be any financial impact on the charity at this stage, but continue to monitor the situation closely, ensuring that the charity can continue to meet the needs of its beneficiaries. 

**- 22 -**