Charity registration number: 1155791
The Ricepuds Charitable Trust
Annual Report and Financial Statements
for the Year Ended 5 April 2021
The Ricepuds Charitable Trust
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 16 |
The Ricepuds Charitable Trust
Reference and Administrative Details
Chair Mrs J S Rice Trustees Mr A J Rice Mr T A Rice Mrs J S Rice Mr W A Rice Principal Office Charles Russell LLP Compass House Lypiatt Road Cheltenham Gloucestershire GL50 2QJ Trust Registration Number 1155791 Solicitors Charles Russell LLP Compass House Lypiatt Road Cheltenham Gloucestershire GL50 2QJ Investment Manager Interactive Investors 2nd floor One Embankment Neville Street Leeds LS1 4DW Independent Examiner Milsted Langdon LLP Freshford House Redcliffe Way Bristol BS1 6NL
Page 1
The Ricepuds Charitable Trust
Trustees' Report
The trustees present the annual report together with the financial statements of the trust for the year ended 5 April 2021.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
The board of trustees, which consists of 4 members, administers the trust. These members are set out on page 1. The board normally meets 4 times per year or more frequently if required. The Chairman is appointed by the trustees to manage the trust and serves for a period of 2 years. The trustees have also appointed a secretary.
Governing document
The Ricepuds Charitable Trust is controlled by its governing document, a deed of trust dated 16 December 2013, and constitutes an unincorporated charity. The trust received registration as a charity on 13 February 2014.
Recruitment and appointment of new trustees
New trustees, if required, are recruited via personal recommendation from an existing trustee, are interviewed by the trustees and appointed by a majority decision.
Trustee Induction and training
The trustees are already familiar with the practical work of the trust and new trustees are invited and encouraged to attend a series of short training sessions to familiarise themselves with the trust and the context in which it operates.
Risk management
The trustees have a duty to identify and review the risks to which the trust is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees regularly conduct a review of the major risks to which the trust is exposed and systems have been established to mitigate these risks. Internal risks are minimised by the implementation of procedures for the authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the trust's objectives. These procedures are periodically reviewed to ensure that they continue to meet the needs of the trust.
COVID-19
The trustees have considered the impact of Coronavirus "COVID-19" that occurred in early 2020 and are of the view that the effect of COVID-19 on the valuation of the trust's investments is the only way that the pandemic has affected the trust during the year. Following the recovery of the investment portfolio detailed in note 7 and the trust having sufficient cash reserves, the trustees deem that the trust will be able to continue operating by the goals and objectives as set out in the trust's governing document.
The trustees do not consider there to be any uncertainty relating to going concern as a result of COVID-19 and any implications to the income and assets of the trust is unlikely to result in material impact.
Page 2
The Ricepuds Charitable Trust
Trustees' Report
OBJECTIVES, ACTIVITIES AND PUBLIC BENEFIT
Objectives
The trustees have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission.
The trust's objectives are to promote any charitable purpose according to the law of England and Wales for the benefit of the public. In particular but not exclusively relieving those in need by reason of age, ill-health, disability or poverty; advancement of health and social care; advancement and promotion of education; advancement of environmental protection or improvement; advancement of amateur sport; advancement of the arts, culture, heritage or science.
The trust carries out these objects by providing grants for projects which fall within the overall objectives of the trust.
Activities of the Year
The trust made one donation in the year as follows:
£10,000 to Bookmark Reading Charity (charity number 1177681). The trust aims to help children develop the reading skills they need to succeed in life.
The trust did not carry out any events in the year but focuses on donating to worthy causes that meet the defined areas of focus for such support.
FINANCIAL REVIEW
The total incoming resources for the year amounted to £40,601 (2020 - £57,942), against which £12,841 (2020 - £24,032) was expended during the year. The trust had a surplus of £248,456 (2020 - deficit of £381,640) which includes an unrealised gain on investments of £209,560 (2020 - loss of £410,209) and a realised gain on investment of £11,136 (2020 - gain of £5,341). Investments valued at £986,984 (2020 - £614,129) were held in the trust at the year end.
The trustees review the reserves and the reserves policy annually. The reserves consist of cash and liquid investments, the majority of which is "unrestricted". The trustees expect the trust to continue to meet their objectives in the future.
RESERVES POLICY
The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately 16 months of unrestricted charitable expenditure. The trustees consider that this level will provide sufficient funds to respond to applications for grants and ensure that there are sufficient funds available to cover support and governance costs. Currently however, carried forward reserves reflect more than 16 months of charitable expenditure as the Trust is planning on undertaking and funding a large, as yet unspecified project.
The balance held as unrestricted funds at 5 April 2021 was £1,422,363 (2020 - £1,173,907) of which £435,379 (2020 - £559,778) are regarded as free reserves. The current level of reserves is therefore higher than is needed but the trustees recognise that this is primarily due to the trust being newly established.
As at the year end the trust had funding commitments not recognised in the balance sheet amounting to £21,000 (2020 - £31,000) to be donated over the course of the next two years.
Page 3
The Ricepuds Charitable Trust
Trustees' Report
INVESTMENT POLICY
The trustees have powers to invest and manage the assets and investments of the trust. Aside from retaining a prudent amount in reserves each year most of the trust’s funds are to be invested in equities. Having considered the options available, the trustees have decided to hold any surplus funds in interest bearing bank accounts. This investment policy is reviewed annually.
PLANS FOR FUTURE PERIODS
The trust plans to continue the activities outlined above in the forthcoming years subject to satisfactory funding arrangements and to increase the scale of activity as funds allow.
The annual report was approved by the trustees of the trust on 16 December 2021 and signed on its behalf by:
Mrs J S Rice Chairman and Trustee
Page 4
The Ricepuds Charitable Trust
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 of the trust 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 Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable 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 business.
The trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
Approved by the trustees of the trust on 16 December 2021 and signed on its behalf by:
Mrs J S Rice Chairman and Trustee
Page 5
The Ricepuds Charitable Trust
Independent Examiner's Report to the trustees of The Ricepuds Charitable Trust
I report to the trust trustees on my examination of the accounts of the trust for the year ended 5 April 2021 which are set out on pages 7 to 16.
Respective responsibilities of trustees and examiner
As the trust’s trustees of The Ricepuds Charitable Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
Having satisfied myself that the accounts of the trust are not required to be audited and are eligible for independent examination, I report in respect of my examination of the The Ricepuds Charitable Trust's accounts 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.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the trust and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
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 Ricepuds Charitable Trust as required by section 130 of the Act; and
-
the accounts do not accord with the accounting records; or
-
the accounts do not comply with the accounting 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.
Andrew J Jordan FCA For and on behalf of
Milsted Langdon LLP Freshford House Redcliffe Way Bristol BS1 6NL
16 December 2021
Page 6
The Ricepuds Charitable Trust
Statement of Financial Activities for the Year Ended 5 April 2021
| Note Income and Endowments from: Investment income 2 Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Gains/losses on investment assets Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 |
Unrestricted £ 40,601 (30) (12,811) (12,841) 220,696 248,456 1,173,907 1,422,363 |
Total 2021 £ 40,601 (30) (12,811) (12,841) 220,696 248,456 1,173,907 1,422,363 |
Total 2020 £ 57,942 (23) (24,009) |
|---|---|---|---|
| (24,032) | |||
| (415,550) | |||
| (381,640) 1,555,547 |
|||
| 1,173,907 |
All of the trust's activities derive from continuing operations.
The funds breakdown for 2020 is shown in note 11.
The notes on pages 9 to 16 form an integral part of these financial statements. Page 7
The Ricepuds Charitable Trust
(Registration number: 1155791) Balance Sheet as at 5 April 2021
| Note Fixed assets Investments 7 Current assets Cash at bank and in hand 8 Creditors: Amounts falling due within one year 9 Net current assets Net assets Funds of the trust: Unrestricted income funds Unrestricted funds Total funds 11 |
2021 £ 986,984 438,179 (2,800) 435,379 1,422,363 1,422,363 1,422,363 |
2020 £ 614,129 562,575 (2,797) |
|---|---|---|
| 559,778 | ||
| 1,173,907 | ||
| 1,173,907 | ||
| 1,173,907 |
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 16 December 2021 and signed on their behalf by:
Mrs J S Rice Chairman and Trustee
The notes on pages 9 to 16 form an integral part of these financial statements. Page 8
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared under the historical cost convention (unless otherwise stated below) and in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The Ricepuds Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
With respect to the next reporting period, being 5 April 2021, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the investment policy in the Trustees Report).
Exemption from preparing a cash flow statement
The trust has taken advantage of the exemptions available and not included a cash flow statement in these financial statements.
Going concern
In light of the global spread of the Coronavirus “COVID-19” in early 2020, the trustees have reviewed the financial position of the trust and expected future position over the next 12 months. Following this review, the trustees consider there to be little impact on the trust's ability to act as a going concern.
The trustees have reviewed the investment valuation and cash reserves available and consider that the company has adequate resources in place to continue trading for the next twelve months.
Income and endowments
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Interest on funds held by investment manager or on deposit is included when receivable and the amount can be measured reliably by the trust; this is normally on notification of the interest payable or paid.
Page 9
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
Expenditure
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 expenditure is recognised on an accruals basis and 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.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the trust 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
These include the costs attributable to the trust’s compliance with constitutional and statutory requirements, including independent examination, strategic management and Trustee’s meetings and reimbursed expenses.
Taxation
The trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Fixed asset investments
Fixed asset 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 as they arise.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities as they arise. Realised and unrealised investment gain and losses are combined in the Statement of Financial Activities.
The main area of financial risk faced by the trust is that of volatility in equity markets and investment markets due to wider economic conditions.
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.
Page 10
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
Foreign exchange
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the trust.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the trust becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the trust after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the Statement of Financial Activities, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the trust intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the trust transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the trust, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 11
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
2 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Dividends Other investment income |
Unrestricted funds General £ 1,924 38,652 25 40,601 |
Total 2021 £ 1,924 38,652 25 40,601 |
Total 2020 £ 2,708 55,234 - |
|---|---|---|---|
| 57,942 |
£40,601 (2020 - £57,942) of the income above was attributable to unrestricted funds and £nil (2020 - £nil) attributable to restricted funds.
3 Expenditure on raising funds
Investment management costs
| Note Other investment management costs; Administration of the investments |
Unrestricted funds General £ 30 30 |
Total 2021 £ 30 30 |
Total 2020 £ 23 |
|---|---|---|---|
| 23 |
£30 (2020 - £23) of the expenditure above was attributable to unrestricted funds and £nil (2020 - £nil) attributable to restricted funds.
Page 12
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
4 Expenditure on charitable activities
| Donations Governance costs Trade Subscriptions |
Grant funding of activity £ 10,000 - - 10,000 |
Activity support costs £ - 2,733 78 2,811 |
Total 2021 £ 10,000 2,733 78 12,811 |
Total 2020 £ 21,000 2,931 78 |
|---|---|---|---|---|
| 24,009 |
Included within the expenditure analysed above, are governance costs of £2,811 (2020 - £3,009) which relate to charitable activities. See note 5 for further details.
£12,811 (2020 - £24,009) of the expenditure above was attributable to unrestricted funds and £nil (2020 - £nil) attributable to restricted funds.
5 Analysis of governance and support costs
Governance costs
Unrestricted
| Unrestricted | |||
|---|---|---|---|
| Independent examiner fees Examination of the financial statements Other fees paid to examiners Other governance costs |
General £ 441 2,292 78 2,811 |
Total 2021 £ 441 2,292 78 2,811 |
Total 2020 £ 453 2,478 78 |
| 3,009 |
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the trust during the year (2020 - £nil).
No trustees have received any reimbursed expenses or any other benefits from the trust during the year (2020 - £nil).
Page 13
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
7 Fixed asset investments
| 7 Fixed asset investments |
||||
|---|---|---|---|---|
| Other investments Other investments Cost or Valuation At 6 April 2020 Revaluation Additions Disposals At 5 April 2021 Net book value At 5 April 2021 At 5 April 2020 |
2021 £ 986,984 Listed investments £ 614,129 220,696 253,960 (101,801) 986,984 986,984 614,129 |
2020 £ 614,129 |
||
| Total £ 614,129 220,696 253,960 (101,801) 986,984 986,984 614,129 |
The investments have been revalued at the year end based on valuations provided by the trust's investment manager. The basis of the valuation was market rate as at 5 April 2021.
8 Cash and cash equivalents
| 8 Cash and cash equivalents |
||
|---|---|---|
| Cash at bank 9 Creditors: amounts falling due within one year Accruals |
2021 £ 438,179 2021 £ 2,800 |
2020 £ 562,575 |
| 2020 £ 2,797 |
Page 14
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
10 Commitments
Funding commitments
The trustees agreed that the trust would donate £10,000 to Bookmark Reading Charity next year. This is to guarantee future funding to assist them in achieving their aim of advancing the education of children in the UK in particular by promoting and supporting increased literacy.
The trustees agreed that the trust would donate £11,000 to The Sleep Well Iniative at the Whittington Hospital next year. This is to aid in achieving the objective of better night's sleep for inpatients and the support of colleagues to the actions related to the iniative and its continuation.
The total amount of other financial commitments not provided in the financial statements was £21,000 (2020 - £31,000).
11 Funds
| 11 Funds | ||||
|---|---|---|---|---|
| Unrestricted General Unrestricted General |
Balance at 6 April 2020 £ 1,173,907 Balance at 6 April 2019 £ 1,555,547 |
Incoming resources £ 40,601 Incoming resources £ 57,942 |
Resources expended £ Other recognised gains/(losses) £ (12,841) 220,696 Resources expended £ Other recognised gains/(losses) £ (24,032) (415,550) |
Balance at 5 April 2021 £ 1,422,363 |
| Balance at 5 April 2020 £ 1,173,907 |
The specific purposes for which the funds are to be applied are as follows:
The unrestricted general fund is available to be spent for any of the purposes of the trust.
12 Analysis of net assets between funds
| Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ 986,984 438,179 (2,800) 1,422,363 |
Total funds at 5 April 2021 £ 986,984 438,179 (2,800) |
|---|---|---|
| 1,422,363 |
Page 15
The Ricepuds Charitable Trust
Notes to the Financial Statements for the Year Ended 5 April 2021
| Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ 614,129 562,575 (2,797) 1,173,907 |
Total funds at 5 April 2020 £ 614,129 562,575 (2,797) |
|---|---|---|
| 1,173,907 |
13 Related party transactions
During the year a trustee made certain payments on behalf of the trust totalling £78 (2020: £78). At 5 April 2021, £nil (2020 - £nil) was due to the trustee in this regard.
The Whittington Hospital Trust Charitable Funds
Trustee W A Rice is also a trustee of The Whittington Hospital Trust Charitable Funds (1056452). During the year the trust made a donation of £nil (2020: £11,000) to The Sleep Well Iniative at the Whittington Hospital. As at the year end there was a further donations commitment not included in the balance sheet of £11,000 (2020: £11,000). The commitment will be funded from cash reserves held by the trust that are supplemented by investment income generated from the trust's listed investment portfolio.
Page 16