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2021-12-31-accounts

THE PARGITER TRUST

ANNUAL REPORT & FINANCIAL STATEMENTS

for the Year Ended 31 December 2021 - CHARITY NO 1157779

THE PARGITER TRUST

THE PARGITER TRUST
CONTENTS
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Reference and Administrative Details 1
Trustees' Report 2 – 8
Statement of Trustees' Responsibilities 9
Independent Auditor's Report 10 – 13
Consolidated Statement of Financial Activities 14 – 15
Consolidated Balance Sheet 16
Balance Sheet 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19 – 31

THE PARGITER TRUST

CHARITY INFORMATION

THE PARGITER TRUST
CHARITY INFORMATION		 THE PARGITER TRUST
CHARITY INFORMATION
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Founder The Late Hon Mrs Isobel Cooper-Heyman
Trustees Mrs S C Gardiner
Mrs V M Westhorp
Mr M Mogford
Mr M J Starkey
Mr P Metcalfe
Ms L Cook
Secretary D B McManus
Correspondence address AC Mole
Stafford House
Blackbrook Park Avenue
Taunton
TA1 2PX
Auditor Alexandra Shore FCA CTA DChA
AC Mole
Stafford House
Blackbrook Park Avenue
Taunton
TA1 2PX
Principal bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill,
West Malling
Kent
ME19 4JQ
Investment advisors J M Finn & Co Ltd
4 Coleman Street
London
EC2R 5TA
Solicitors Bates Wells & Braithwaite London LLP
Scandinavian House
2-6 Cannon Street
London
EC4M 6YH
Charity Registration Number 1157779

Page 1

THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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Chair’s Foreword

I am pleased to have this opportunity to present the seventh Report and Accounts for our Charitable Incorporated Organisation (CIO) which became a registered charity on 8 July 2014.

At the beginning of 2020 none of us could have imagined the impact that COVID 19 would have had on lives and that it would continue to affect people throughout 2021. Lockdowns and other restrictions have had a major detrimental impact on many people. Individuals have suffered even more loneliness and isolation, many are anxious, all of which has resulted in a significant deterioration in their mental health.

Being lonely is not only miserable, but it can also have a very damaging effect on physical health and mental wellbeing.

Throughout the pandemic organisations supporting older people have continued to work in helping and assisting people during one of the most vulnerable times of their lives. We have been delighted to support an amazing range of activities collectively supporting those who are vulnerable, lonely, and isolated due to age, disability, cultural barriers and other factors. These have included funding towards:

As we move into 2022 the demand for these services will never be greater, including supporting older people in fuel poverty and the post COVID transitions. Having access to meaningful activities can keep the mind active, slow the decline, build friendships, improve wellbeing, and reduce social isolation.

I am immensely grateful for the support and hard work of my fellow trustees throughout this year, and I look forward to being able to help even more people in 2022. There is no doubt that Covid has impacted all areas of our community and no more so than our older people, sometimes crisis is an opportunity to reshape our thinking. There is a need to better understand the impact Covid has had on the community and how best to learn and move forward using what has been discovered during this challenging time.

Overview of 2021

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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Helped in excess 22,000 recipients through some of the following ways:

Advice & Information Arts & Creativity Nutritious Meals Leisure Activities Befriending Supporting Core Costs

Guernsey Voluntary Service £10,494

– to support the cost of an activities co-ordinator across two Day Centres.

In Deep Community Task Force - £5,830

Kissing it Better - two grant payments- £9,926 and £9,900 - to support:

Yorkshire Music Project- offering live outdoor and indoor music events at community centres, care settings and sheltered accommodation. Part of the project included specially designed digital music sessions for the growing number of older people who learned to use Zoom during the pandemic.

When Great Granny Came to Stay project - with workshops, teaching primary school children, from Year 1 to Year 6, all the simple things they can do to ensure that an older relative feel looked after and appreciated throughout their stay with them.

Suzanne Gardiner, Chair

The Pargiter Trust CIO

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

1. Our purpose

Vision

Our Mission

Our Values

2. Charitable objectives

The charity achieves its objectives by way of grants made to charities to help support older people in England and Guernsey. Our strategic aims and activities are set out later in this report.

3. Structure, Governance and management Legal and administrative details

The original Pargiter Trust (the “charity”) was founded by the Late Hon Mrs Isobel Cooper-Heyman in 2005. It became an unincorporated registered charity in England and Wales on 16 February 2006 (registered charity number 1113016). In consultation with the charity’s legal advisers, the Trustees established this Charitable Incorporated Organisation (CIO) in 2014 under a CIO Foundation Constitution dated 19 March 2014, registered it as a charity on 8 July 2014 and transferred the unincorporated charity’s assets to the new entity on 1 January 2015. The two registered charities were merged in late 2015.

There are currently six Trustees (maximum eight) and they are responsible for directing the affairs of the charity including setting the strategic direction, the approval of key policies, the approval of business plans and budgets and any other matters which have a material impact on the charity’s financial position, its strategy, reputation or risk profile. Trustees are appointed in line with the provisions set out in the Trust Deed (the "governing document").

The Trustees consider recruitment of new Trustees as the need arises. Applications from suitable candidates would be sought by identifying specific gaps in professional skills, if necessary, placing advertisements in suitable publications. A new Trustee would be provided with an information pack outlining the history of the organisation, its structure, activities and objectives together with Charity Commission guidance and codes of conduct related to the roles and responsibilities of a Trustee.

The charity owns the whole of the issued share capital of Sarnia Properties Ltd (SPL), a Guernsey based property investment company, whose sole asset, apart from cash reserves, comprises a site of light industrial units and domestic dwellings in Guernsey, which the Trustees consider to be of significance to the economic life of the island. SPL has three Directors of which currently one is also a Trustee of the charity. The fees paid to directors are based on what would need to be paid to an external party for those services provided. Any increase in fees or payment for additional services would require approval from the Trustees and be based on the equivalent salary to be paid for someone to perform that role for the required number of hours.

The charity achieves its objectives by way of grants made to charities to help support older people in England and Guernsey.

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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Trustees

The Trustees met three times during the year.

The Trustees who served and their attendance are listed below. Mrs S C Gardiner (100%) Mrs V M Westhorp (100%) Mr M Mogford (75%) Mr M J Starkey (100%) Mr P Metcalfe (100%) Ms L Cook (100%)

Grants and Awards Committee

The charity has a formal Grants and Awards Committee which has its own Terms of Reference setting out its delegated authority to consider all grant applications. The Committee comprises the Grant Committee Chair, the Chair and other serving Trustees, meeting on a regular basis throughout the year.

The Committee submits periodic reports to the Trustees during the year which set out the nature of the applications and the grants being made or considered. All grant applications need to meet specific eligibility criteria. The charity does not award grants directly to individuals and in most cases applications are received via the charity’s community partners who undertake the primary assessment of each application.

4. Strategic planning and Review of 2021 activities

4.1 Strategic Objectives

The Trustees have three clear strategic objectives:

In addition, the trustees are keen to be active in areas of greatest need to include focus of under - represented BAME and LGBT groups where possible. Along with acknowledgement of the additional challenges faced by the charitable sector due to COVID 19 they will encourage applications that help organisations adapt post COVID 19.

4.2 Review of 2021 activities and achievement of the objectives

The Grants and Awards Committee which meets three times a year, has delegated responsibility on behalf of the Board of Trustees for ensuring that the Trust, working to an agreed budget, delivers an effective grants and awards programme.

In the light of continuing impact of COVID 19 the Trustees have been keen to ensure that it can maximise the impact we can achieve in tackling some of the critical issues faced by the people in England and the Bailiwick of Guernsey as a result of COVID 19. One of the ways has been to be a more flexible funder enabling payments to be made quickly, supporting emergency schemes through the eight Community Foundations we work with.

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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4.2 Review of 2021 activities and achievement of the objectives (continued)

● Grants paid totalled £486,150. The grants were awarded to the following partner organisations:

----- Start of picture text -----
Organisation Grant Awarded
Suffolk Community Foundation £80,000
Kent Community Foundation £80,000
Berkshire Community Foundation £80,000
Wiltshire Community Foundation £80,000
Community Foundation Tyne & Wear £80,000
Quartet Community Foundation £50,000
Guernsey Voluntary Service £10,494
In Deep Community Task Force £5,830
Kissing it Better £19,826
Total paid £486,150
----- End of picture text -----

Future projects

In the next twelve months the Trustees will be seeking to continue and build on its existing relationships with its external partners.

Investments/Investment performance

The investments held by the charity in property, listed investments and in the subsidiary have continued to provide income to enable the charity to make charitable grants.

Public benefit

The Trustees have paid due regard to the Charity Commission guidance on “Public Benefit” in deciding what activities the charity undertakes. All activities undertaken by The Pargiter Trust are focussed on its charitable purposes. The “Public Benefit” of The Pargiter Trust’s activities is the support of older people and this is achieved principally by the award and monitoring of grants.

Safeguarding

We continue to champion safeguarding of older people through our grant giving by requiring proportionate safeguarding procedures, training and cultures to be in place before funding is agreed.

Fundraising activities

The Trust does not actively undertake any direct fundraising activities and does not engage anyone to undertake such activities on its behalf.

5. Financial Review

The financial statements comply with current statutory requirements, the charity’s governing instrument (the Trust Deed) and the Charities SORP (FRS 102) 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) issued 1 October 2019.

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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5. Financial Review (continued)

The charity’s principal funding source is from investment income and an annual distribution from its holding in Sarnia Properties Ltd.

Income for the Group for the year, inclusive of the Sarnia Properties Ltd holding, was £748,244 (2020: £752,885) with net expenditure (before net gains on revaluation of properties and investments) £687,078 (2020: £807,135). Net gains on revaluation of properties and investments were £517,516 (2020: £44,078) giving a net increase in funds for the year of £578,682 (2020: £10,172 decrease). The Group had total funds as at 31 December 2021 of £14,175,907 (2020: £13,597,225).

5.1 Reserves policy

The Trustees ensure that sufficient reserves are held to meet one year’s governance costs as well as covering grants pending approval in case of a downturn in investments. The subsidiary company Sarnia Properties Ltd has free reserves, most of which were accumulated during the period before the company’s shares were gifted to the charity.

In accordance with the non-binding wishes of the founding Trustee the Trustees have designated £8,080,000 of the original bequest as a capital fund for income generation.

The funds of the charity totalled £14,175,907 as at 31 December 2021 (2020: £13,597,255) of which £8,080,000 (2020: £8,080,000) is designated. Of the unrestricted funds of £6,095,907 (2020: £5,517,225), £4,935,749 (2020: £4,448,351) are held as fixed asset investments leaving free reserves of £1,160,158 (2020: £1,068,874).

5.2 Investment policy

The Trustees appointed J M Finn and Co. Ltd to manage the charity’s investment portfolio on a discretionary basis; the Trustees have agreed that their investment objective is a balanced return from income and capital growth and that they have a medium risk profile, as defined by the investment advisers. Half yearly valuations and commentaries are provided to the Trustees and the investment manager meets with the Trustees from time to time as required to report on and discuss the overall performance of the portfolio.

In early October 2020, our investment managers participated in the launch of a new social housing fund – HOME REIT, this investing in social housing accommodation for the homeless, with the aim of providing quality, affordable housing for councils and their housing association partners. This new investment complements the existing investment in Civitas Social Housing which invests in new or existing social housing and healthcare assets in the UK. We continue to hold both funds, Civitas Social Housing has had a bit of a challenging year, but both remain core holdings.

The portfolio has a 17% exposure to infrastructure, with many of the funds investing in either renewable energy generation, or energy efficiency. We have built exposure to wind, solar and battery assets, the latter helping National Grid to help regulate power on the grid. Both are expected to generate both positive financial returns and large scale measurable social impact.

As of the 31 December 2021 the Trust investment portfolio was valued at £4,334,385 (2020: £3,889,137), having appreciated +11.49% over the year.

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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5.3 Risk management

The Trustees acknowledge their responsibilities for setting the approach and management of risk. Risk management is a standard item for discussion at all Trustee meetings with an in-depth review at least annually. This process identifies the major risks The Trust faces, the likelihood of occurrence, the significance of the risk and any mitigating facts that are in place. It also seeks to identify any actions and resources required to manage these risks further. Mitigating actions are taken for any risks perceived to be increasing, be this for reasons such as changes in the funding environment or regulatory / legal changes or government policy.

As part of this process, the Trustees maintain a risk register which sets out the key areas of risks and the mitigating controls and actions. This is reviewed regularly at all Board meetings.

During 2021 key areas of focus were:

Covid-19

The Covid-19 crisis inevitably continued to affect the charity sector as a whole. The Trustees considered the approach to this risk and the likely impact it might have on the Trust’s income and demands for our grants. During 2021 regular contact was maintained with the Investment Manager and Sarnia Properties Ltd to ensure the sustainability of the Grant funding and the Trust itself.

Fraud

The Trustees acknowledge their responsibility for managing fraud and have in place a fraud response plan and policy. The risk is limited to banking, inflated expenses and fake grant requests, which are governed by a system of internal controls.

Safeguarding

The Trustees introduced a safeguarding policy in 2018 and works with its stakeholders to ensure that they provide appropriate assurances that they have the necessary controls and procedures to ensure the safeguarding of all vulnerable beneficiaries. Safeguarding is reviewed regularly.

Anti-Money laundering

The Trustees have appropriate processes in place to safeguard against money laundering with specific controls regarding its distribution income from its subsidiary based in Guernsey. These are reviewed as part of the overall risk management process.

The Board of Trustees reviews annual budgets, grants remuneration and benefits. It also oversees ownership of major property it owns through Sarnia Properties Ltd (SPL).

Oversight of SPL

The charity’s ownership of Sarnia Properties Ltd (SPL) accounts for a very substantial proportion of the charity’s assets. To mitigate this, the Trustees have an oversight role and receive regular reporting from Sarnia at their Board meetings.

SPL, the Guernsey based property investment company, lets sites to a number of tenants from light industrial Units, storage and distribution and residential lettings. One of the more significant is engaged in the business of storage and distribution of petroleum products. The Trustees ensure that all necessary steps are taken to maintain the safety of the site and to mitigate the risks associated with the tenancy.

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THE PARGITER TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

6. Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Report Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping accounting records that 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 Charity (Accounts and Reports) Regulations 2008 and the Trust deed. They are also responsible for the safeguarding of the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7. Auditors

All of the current Trustees have taken steps that they should have taken to make themselves aware of any information needed by the charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any other relevant information of which the auditors should be aware.

In keeping with recognised practice, the charity reviewed its external audit arrangements and undertook a tender process which resulted in AC Mole being appointed as new auditors in 2020. The Trustees have a commitment to review all of its external providers as part of ensuring quality and value for money.

Approved by the Trustees and signed on their behalf on 17 June 2022 by

……………………………………. Mrs S C Gardiner Trustee and Chair

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THE PARGITER TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PARGITER TRUST

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Opinion

We have audited the financial statements of The Pargiter Trust CIO (the ‘charitable parent company’) and its subsidiary (the group) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Balance Sheet, the Consolidated Statement of Cashflows and notes to the consolidated financial statements, including a summary of 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:

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 group 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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THE PARGITER TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PARGITER TRUST

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Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 they 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 group’s and charitable parent company’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 group or charitable parent company or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PARGITER TRUST

THE PARGITER TRUST

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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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks of material misstatement due to irregularities

We considered the following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations:

Laws and regulations which are considered to be significant to the group include those relating to the requirements of financial reporting framework FRS102, the Charities Act 2011, tax legislation and health and safety. In addition we consider other laws and regulation which may not directly impact the financial statements but may impact on the operation of the group.

As a result of these procedures we concluded, in accordance with International Auditing Standards, that a risk in relation to the potential for management override of controls existed.

Audit responses to risks identified

We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following:

We also communicated relevant laws and regulations and potential fraud risks to the component auditors and all engagement team members and remained alert to any indicators of fraud or noncompliance with laws and regulations throughout the audit.

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THE PARGITER TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PARGITER TRUST

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable parent company’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charityʼs trustees those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

We have been appointed as auditor under section 144/145 of the Charities Act 2011 and report in accordance with the regulations made under section 145 of that Act.

A C Mole (Statutory Auditor)

Chartered Accountants and Statutory Auditors Stafford House Blackbrook Park Avenue Taunton Somerset TA1 2PX

17 June 2022

A C Mole is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE PARGITER TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)

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Note Unrestricted
Designated
Total
funds

funds
2021
£
£
£
Income from:
Other trading activities
3		 620,021
-
620,021
Investment income
4		 128,223
-
128,223
Total Income 748,244
-
748,244
Expenditure on:
Raising funds
5		 (146,515)
-
(146,515)
Charitable activities
6		 (501,930)
-
(501,930)
Other expenditure
11		 (38,633)
-
(38,633)
Total Expenditure (687,078)
-
(687,078)
Netgains on investment assets
12		 517,516
-
517,516
Net income 578,682
-
578,682
Transfers between funds -
-
-
Net movement in funds 578,682
-
578,682
Reconciliation of funds
Total funds brought forward 5,517,225
8,080,000
13,597,225
Total funds carried forward
16		 6,095,907
8,080,000
14,175,907

All of the group's activities derive from continuing operations during the above period.

The notes on pages 19 to 31 form part of these financial statements.

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THE PARGITER TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)

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Note Unrestricted
Designated
Total
funds
funds
2020
£
£
£
Income from:
Other trading activities
3		 613,157
-
613,157
Investment income
4		 139,728
-
139,728
Total Income 752,885
-
752,885
Expenditure on:
Raising funds
5		 (225,926)
-
(225,926)
Charitable activities
6		 (539,142)
-
(539,142)
Other expenditure
11		 (42,067)
-
(42,067)
Total Expenditure (807,135)
-
(807,135)
Netgains on investment assets
12		 44,078
-
44,078
Net (expenditure)/income (10,172)
-
(10,172)
Transfers between funds -
-
-
Net movement in funds (10,172)
-
(10,172)
Reconciliation of funds
Total funds brought forward 5,527,397
8,080,000
13,607,397
Total funds carried forward
16		 5,517,225
8,080,000
13,597,225

All of the group's activities derive from continuing operations during the above period.

The notes on pages 19 to 31 form part of these financial statements.

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THE PARGITER TRUST

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

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2021 2020
Note £ £
Fixed assets
Investments 13 13,015,749 12,528,351
Current assets
Debtors 14 22,269 26,630
Cash at bank and in hand 1,302,910 1,217,949
Creditors: Amounts falling due within one year 15 1,325,179
(165,021)		 1,244,579
(175,705)
Net current assets 1,160,158 1,068,874
Net assets 14,175,907 13,597,225
Funds of the group:
Unrestricted funds		 6,095,907 5,517,225
Designated funds 8,080,000 8,080,000
Total funds 16 14,175,907 13,597,225

The financial statements on pages to were approved by the Trustees, and authorised for issue on 17 June 2022 and signed on their behalf by:

…..................................

S C Gardiner Chairman

…...................................... M Mogford Trustee

The notes on pages 19 to 31 form part of these financial statements.

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THE PARGITER TRUST

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

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Note 2021
2020
£
£
Fixed assets
Investments
13		 13,989,147
13,521,462
Current assets
Debtors
14		 2,822
1,998
Cash at bank and in hand 206,392
127,882
209,214
129,880
Creditors: Amounts falling due within oneyear
15		 (22,454)
(54,117)
Net current assets 186,760
75,763
Net assets 14,175,907
13,597,225
Unrestricted funds 6,095,907
5,517,225
Designated funds 8,080,000
8,080,000
Total funds
16		 14,175,907
13,597,225

The financial statements on pages to were approved by the Trustees, and authorised for issue on 17 June 2022 and signed on their behalf by:

......................................... S C Gardiner Chairman

......................................... M Mogford

Trustee

The notes on pages 19 to 31 form part of these financial statements.

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THE PARGITER TRUST

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

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Note
2021
£
£
£
Cashflows from operating activities
Net cash (used in) operating activities
(73,380)
Cashflows from investing activities
Dividends, interest and rent from investments
128,223
139,728
Proceeds from sale of investments
364,711
690,712
Purchase of investments
(297,250)
(648,802)
_
_
Net cash provided by investing activities
195,684
_
Change in cash and cash equivalents in the reporting period
122,304
Cash and cash equivalents at the beginning of the
reporting period
1,244,341
_
Cash and cash equivalents at the end of the reporting period
1,366,645
Cash and cash equivalents
Cash in hand
1,302,910

Cash held within investment portfolio
63,735
_

1,366,645

Reconciliation of net income/(expenditure) to net cashflow from operating activities
Net income/(expenditure) for the period as per the
Statement of Financial Activities
578,682
Adjustments for:
(Gains) on investments
(517,516)
Dividends, interest and rents from investments
(128,223)
Decrease in debtors
4,361
(Decrease) in creditors
(10,684)
__
(73,380)		 2020
£
(258,004)
181,638
__
(76,366)
1,320,707
_
1,244,341
1,217,949
26,392
___
1,244,341
(10,172)
(44,078)
(139,728)
983
(65,009)
__
(258,004)

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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1 Charity status

The Pargiter Trust is a Charitable Incorporated Organisation, registered in England and Wales.

The address of its registered office is: AC Mole Stafford House Blackbrook Park Avenue Taunton TA1 2PX

The principal place of business is: Barnhaven Lower Sea Farm Ilminster Somerset TA19 OSB

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared 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) (issued October 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 Pargiter Trust CIO 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.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of consolidation

These financial statements consolidate the results of the Charity and its wholly owned trading subsidiary, Sarnia Properties Limited on a line by line basis. The “Consolidated” balance sheet refers to the consolidated accounts of The Pargiter Trust and Sarnia Holdings Limited. All intra-group transactions are eliminated on consolidation.

No separate statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a profit after tax for the financial year of £578,682 (2020: loss of £10,172).

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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2 Accounting policies (continued)

Going concern

The Trustees consider that there are no material uncertainties about the charity or group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group or charity.

We have paid particular attention to the likely effect on the business of the current COVID-19 outbreak. The Trustees remain confident that sufficient funding is in place and that the group and charity has adequate resources to continue as a going concern for the foreseeable future.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires Trustees to make judgements, estimates and assumptions. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates, assumptions and Trustee judgements that carry a significant risk of material adjustments to the carrying amounts of assets and liabilities within the next financial year are outlined below.

Estimation of fair value of investment properties (group)

The fair value of investment properties is determined by the Trustees after consulting with property professionals. Fair value represents the best estimate of the amount a third party would pay for the properties. In the event of a sale actual prices received could be materially different from those estimates.

Estimation of fair value of investment in subsidiaries (charity)

The fair value of investments is determined by reference to the net assets of the subsidiary undertaking, Sarnia Properties Limited, which include Sarnia Properties Limited’s investment properties held at fair value. Accordingly, in the event of a sale, the actual value of this investment could be materially different from the net asset value.

Income

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Investment income

Investment income is recognised on a receivable basis for the financial year. Trading income is included at the value of goods and services supplied.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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2 Accounting policies (continued)

Expenditure (continued)

All expenditure including support and governance costs are allocated or apportioned to the applicable expenditure heading in the Statement of Financial Activities.

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 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.

Grant expenditure

Grants are payable out of the Parent Charity's unrestricted funds, which are derived from income arising on the Fund investments, comprising distributions received from the subsidiary. Expenditure on grants is recorded once the trust has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

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

Taxation

Guernsey income tax is charged on the rental profits of the subsidiary company, Sarnia Properties Limited.

The Pargiter Trust is a registered charity and is thus exempt from tax on income and gains falling within sections 521 to 536 of the Income Tax Act 2007 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charge has arisen in the Parent Charity. Guernsey income tax of £38,633 is payable by Sarnia Properties Limited (2020: £42,067).

Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the Statement of Financial Activities.

Investments – Other

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through the unrestricted fund if the shares are publicly traded or their fair value can otherwise be measured reliably. Investments in subsidiaries, recognised in the parent charity's own balance sheet, are measured at fair value which is considered to be equal to the value of the subsidiary’s net assets.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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2 Accounting policies (continued)

Programme related investments

Programme Related Investments are those investments which provide investment funding to organisations in order to directly further the charitable purposes of The Trust. They are recognised initially at cost and are assessed for evidence of impairment at the end of each reporting period.

Trade Debtors and Creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

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.

Fund structure

Unrestricted general funds are available for use at the discretion of the trustees in furtherance of the general charitable objectives of the charity and which have not been designated for other purposes.

The designated fund comprises those assets initially gifted from the estate of the founding Trustee in recognition of the donor’s non-legally binding wish that the capital be retained.

Financial instruments

The charity only has financial assets and liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost, with the exception of fixed asset investments as noted above.

3 Income from other trading activities

Total
Total
2021
2020
£
£
Propertyrental income 620,021
613,157
620,021
613,157

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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4 Investment income

Total
Total
2021
2020
£
£
Dividends receivable from listed investments 97,732
109,322
Income from rents 25,548
25,443
Interest receivable on bank deposits 4,943
4,963
128,223
139,728

5 Expenditure on raising funds

5
Expenditure on raising funds
Total
Total
2021
2020
£
£
Property expenses 31,524
116,986
Portfolio management fees 105,191
100,290
Other governance costs 9,800
8,650
146,515
225,926

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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6 Expenditure on charitable activities


Direct grants to organisations
Governance costs - Note 7
Direct grants to organisations:
Community Foundation for Surrey
Suffolk Community Foundation
Guernsey Community Foundation
Kent Community Foundation
Berkshire Community Foundation
Wiltshire Community Foundation
Community Foundation Tyne & Wear
Nesta T2C
In Deep Community Task Force
Guernsey Voluntary Service
Kissing it Better
Quartet Community Foundation
7 Analysis of governance and support costs
Governance costs
Audit of the financial statements (note 10)
Consultancy fees
Trustee expenses
Trustee meeting costs
Other governance costs

 Total
Total
2021
2020
£
£
Direct grants to organisations 486,150
525,000
Governance costs - Note 7 15,780
14,142
501,930
539,142
Direct grants to organisations:
Community Foundation for Surrey -
80,000
Suffolk Community Foundation 80,000
80,000
Guernsey Community Foundation -
80,000
Kent Community Foundation 80,000
80,000
Berkshire Community Foundation 80,000
80,000
Wiltshire Community Foundation 80,000
50,000
Community Foundation Tyne & Wear 80,000
50,000
Nesta T2C -
25,000
In Deep Community Task Force 5,830
-
Guernsey Voluntary Service 10,494
-
Kissing it Better 19,826
-
Quartet Community Foundation 50,000
-
486,150
525,000
Total
2021
£
Total
2020
£
10,808
8,980
3,033
2,694
-
152
-
66
1,939
2,250
15,780
14,142

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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8 Trustees remuneration and expenses

During the year the group undertook the following transactions with Trustees:

One Trustee received remuneration for their work as a director of the subsidiary company and not for their role as Trustee of the Parent Charity (2020: One trustee). The funds were paid out of the subsidiary's funds. S C Gardiner received remuneration of £32,200 (2020: £32,200). No Trustee, nor any persons connected with them, have received any remuneration during the year for their role as a Trustee of the Parent Charity (2020: None).

Reimbursed expenses to nil (2020: 2) Trustees in respect of the year 31 December 2021 were £nil (2020: £152). These expenses related to travel costs incurred in the year.

The Trustees are considered to be the key management personnel for the charity. There were no other payments to key management personnel.

9 Staff costs

The aggregate payroll costs were as follows:

9
Staff costs
The aggregate payroll costs were as follows:
2021
2020
£
£
Staff costs during the year were:
Payments to individuals for services as Directors 56,200
56,200

No employee received emoluments of more than £60,000 during the year.

The average monthly number of employees (employee head count) during the year was 3 (2021: 3).

10 Auditors' remuneration

2021 2020
£ £
Audit of the financial statements 8,030 8,980
Taxation 930 -
Other 1,848 -
10,808 8,980

11 Taxation

The Pargiter Trust CIO is a registered charity and is thus exempt from tax on income and gains falling within sections 521 to 536 of the Income Tax Act 2007 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charge has arisen in the Parent Charity. Guernsey income tax of £38,633 is payable by Sarnia Properties Limited (2020: £42,067).

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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12 Net gains/(losses) on investments

12
Net gains/(losses) on investments
2021
2020
£
£
Net realised investment gain/(loss) on disposal of investments 11,780
(191,052)
Revaluations 505,736
235,130
Net gains on investments 517,516
44,078
Fixed asset investments
Group
2021
2020
£
£
Investment properties 8,681,364
8,639,213
Listed investments 4,334,385
3,889,138
13,015,749
12,528,351
Investment properties
Investment
properties
£
Cost or Valuation
At 1 January 2021 8,639,213
Revaluation 42,151
At 31 December 2021 8,681,364
Net book value
At 31 December 2021 8,681,364
At 31 December 2020 8,639,213
Listed investments 2021
2020
£
£
Cost or Valuation
Market Value at 1 January 3,862,746
3,860,578
Acquisitions at cost 297,250
648,802
Disposals (352,931)
(881,764)
Revaluation 463,585
235,130
Market Value at 31 December 4,270,650
3,862,746
Cash held within the investmentportfolio 63,735
26,392
4,334,385
3,889,138

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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13 Fixed asset investments (continued)

The fair value of the investment properties is based on a review carried out by the Trustees. In doing so Trustees consulted with property professionals to ascertain the likely value that the property may obtain if marketed at the Balance Sheet date.

The charity does not hold information regarding the historic cost of its investment properties.

Charity

Charity
2021
2020
£
£
Investment properties 870,000
870,000
Shares in group undertakings and participating interests 8,784,762
8,762,324
Listed investments 4,334,385
3,889,138
13,989,147
13,521,462
Investment properties
Investment
properties
£
Cost or Valuation
At 1 January 2021 870,000
Revaluation -
At 31 December 2021 870,000
Net book value
At 31 December 2021 870,000
At 31 December 2020 870,000

The investment properties held in the Parent charity were revalued at fair value by MRB Chartered Surveyors & Valuers as at 30 December 2021. The trustees consider this to be appropriate fair value as they do not consider there to be any change in the value of the property since the formal valuation.

The Parent Charity invested in a range of listed investments. The portfolio is managed by J M Finn & Co, registered investment managers who are regulated by the Financial Conduct Authority.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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THE PARGITER TRUST

13 Fixed asset investments (continued)

Charity

Shares in group undertakings and participating interests

Shares in group undertakings and participating interests
Subsidiary
undertakings
Total
£
£
Cost
At 1 January 2021 8,762,324
8,762,324
Revaluation 22,438
22,438
At 31 December 2021 8,784,762
8,784,762
Net book value
At 31 December 2021 8,784,762
8,784,762
At 31 December 2020 8,762,324
8,762,324
Listed investments
2021
2020
£
£
Cost or Valuation
Market Value at 1 January 3,862,746
3,860,578
Acquisitions at cost 297,250
648,802
Disposals (352,931)
(881,764)
Revaluation 463,585
235,130
Market Value at 31 December 4,270,650
3,862,746
Cash held within investmentportfolio 63,735
26,391
4,334,385
3,889,137

The investment in subsidiary undertakings represents a 100% holding in the ordinary share capital of Sarnia Properties Limited, a company registered in Guernsey. Its registered number is 900 and its registered office address is Crossways, Braye Road, Vale, Guernsey, GY3 5PH. At the year end, the aggregate capital and reserves of the company amounted to £8,784,762 (2020: £8,762,324). Its turnover was £620,021 (2020: £613,157), its operating profit was £518,920 (2020: £427,552), from which dividends of £500,000 (2020: £300,000), leaving a retained loss after tax and dividends for the year of £19,713 (2020: profit after tax £85,485).

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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13 Fixed asset investments (continued)

The investment properties held in the subsidiary Sarnia Properties Limited were revalued on 30 December 2021 by MRB Chartered Surveyors & Valuers, who are independent of the Company and have experience of valuing similar properties. The property was valued on an income capitalisation method in accordance with the then current edition (9[th] ) of The Valuation Standards (the Red Book) issued by the Royal Institution of Chartered Surveyors.

current edition (9th) of The Valuation Standards (the Red Book) issued by the Royal Institution of
Surveyors.		 current edition (9th) of The Valuation Standards (the Red Book) issued by the Royal Institution of
Surveyors.
14 Debtors
Group
Charity
2021
£
2020
£
2021
£
2020
£
Prepayments
754
635
754
635
Accrued income
1,978
1,363
1,978
1,363
Other debtors
19,537
24,632
90
-
22,269
26,630
2,822
1,998
15
Creditors: amounts falling due within one year
Group
Charity
2021
2020
2021
2020
£
£
£
£
Accruals 165,021
175,705
22,454
54,117

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THE PARGITER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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16 Funds

Group

Group
Balance at 1
January 2021
£
Income
£
Expenditure
£
Other
recognised
gains
£
Balance at 31
December
2021
£
General 5,517,225
748,244
(687,078)
517,516
6,095,907
Designated 8,080,000
-
-
-
8,080,000
Total funds 13,597,225
748,244
(687,078)
517,516
14,175,907
Balance at 1
January 2020
£
Income
£
Expenditure
£
Other
recognised
gains
£
Balance at 31
December
2020
£
General 5,527,397
752,885
(807,135)
44,078
5,517,225
Designated 8,080,000
-
-
-
8,080,000
Total funds 13,607,397
752,885
(807,135)
44,078
13,597,225
Charity Balance at 1
January 2021
£
Income
£
Expenditure
£
Other
recognised
gains
£
Balance at 31
December
2021
£
5,517,225
623,313
(542,433)
497,802
6,095,907
8,080,000
-
-
-
8,080,000
13,597,225
623,313
(542,433)
497,802
14,175,907
Balance at 1
January 2020
£
Income
£
Expenditure
£
Other
recognised
gains
£
Balance at 31
December
2020
£
5,527,397
435,177
(574,912)
129,563
5,517,225
8,080,000
-
-
-
8,080,000
13,607,397
435,177
(574,912)
129,563
13,597,225
Unrestricted funds
General
Designated
Total funds
Unrestricted
General
Designated
Total funds

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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17 Analysis of net assets between funds

Group

Group
Unrestricted
Designated
2021
Total
funds
Funds
Funds
£
£
£
Fixed asset investments 4,935,749
8,080,000
13,015,749
Current assets 1,325,179
-
1,325,179
Current liabilities (165,021)
-
(165,021)
Total net assets 6,095,907
8,080,000
14,175,907

Charity

Charity
Unrestricted
Designated
2021
Total
Funds
Funds
Funds
£
£
£
Fixed asset investments 5,909,147
8,080,000
13,989,147
Current assets 209,214
-
209,214
Current liabilities (22,454)
-
(22,454)
Total net assets 6,095,907
8,080,000
14,175,907

Group

Group
Unrestricted
Designated
2020
Total
Funds
Funds
Funds
£
£
£
Fixed asset investments 4,448,351
8,080,000
12,528,351
Current assets 1,244,579
-
1,244,579
Current liabilities (175,705)
-
(175,705)
Total net assets 5,517,225
8,080,000
13,597,225
Charity
Unrestricted
Designated
2020
Total
Funds
Funds
Funds
£
£
£
Fixed asset investments 5,441,462
8,080,000
13,521,462
Current assets 129,880
-
129,880
Current liabilities (54,117)
-
(54,117)
Total net assets 5,517,225
8,080,000
13,597,225

Page 31