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2020-12-31-accounts

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Let’s Be Clear
Campaign see p8
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Barnwood Trust

The Trustees’ Annual Report and Financial Statements for the year ended 31st December 2020 Charity Number 1162855

Trustees’ Annual Report

The Board of Trustees presents its report with the financial statements of the charity for the year to 31st December 2020. The financial statements have been prepared in accordance with the Trust’s accounting policies and comply with the charity’s trust deed, the Charities Act 2011 and the 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 (FRS102).

Contents of Trustees’ Annual Re ort and Financial Statements p

Welcome and Introduction 3
Objectives and Activities 4
Achievements and Performance 9
Financial Review 15
Structure, Governance and Management 17
Reference and Administrative details 19
Funds held as Custodian Trustee 20
Statement of Trustee Responsibilities 20
Independent Auditors’ Report 21
Statement of Financial Activities 24
Balance Sheet 25
Cash Flow Statement 26
Notes to the Financial Statements 27

Reference and Administrative details

Funds held as Custodian Trustee

Structure, Financial Governance and Review Management

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Independent Auditors’ Report

Notes to the Financial 2 Statements

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Welcome and Introduction from the Chair and Chief Executive

The events of 2020 have impacted fundamentally on all aspects of life in the UK. The Trust sought to play as helpful a role as possible in mitigating the impact of the Covid-19 pandemic on the lives of disabled people and people with mental health challenges across Gloucestershire. As has been widely reported however, the pandemic has had a disproportionate impact on disabled people and people with mental health challenges, so it has been important for the Trust to be flexible and responsive throughout the year.

This report demonstrates how the Trust increased its expenditure on grants, making more funds available, and played a key role in convening funders, voluntary sector organisations and statutory sector agencies to identify how to enable swift and appropriate support to disabled people and people with mental health challenges, in community settings and through specialist services.

The clear long-term impacts of the pandemic prompted the Trustees to bring forward the strategic review, scheduled for 2021, to be undertaken in 2020, and in September the Board approved a revision of the strategy. The Trust’s strategic goals remain the same but the means of meeting them will be evolving, with a new underpinning theory of change, which is described briefly in this report.

We would like to thank many people for their support during this difficult year: the many voluntary and community sector organisations across Gloucestershire who have worked tirelessly and with ingenuity and passion to continue to provide support to disabled people and people with mental health challenges; the decision and policy makers and planners who have been willing to consider and respond flexibly to the findings and recommendations from our research; our colleagues in the other Charitable Trusts and Foundations in the county who have supported the effort to get funds where they have been needed swiftly and efficiently; Barnwood’s Trustees who willingly gave up much more time to meet to consider our response to the pandemic and then to develop the thinking behind the revised strategy; and finally Barnwood’s staff who have worked hard, consistently and imaginatively to rise to the challenges presented.

Ann Santry, Chair

Sally Byng, Chief Executive

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

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Ann Santry, Chair
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Sally Byng, Chief Executive
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Notes to the Financial Statements

Structure, Financial Governance and Review Management

3

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

Objectives and Activities

1. Summary of the purposes of the charity as set out in its governing document

Structure, Financial Governance and Review Management

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial Statements

4

Welcome and Objectives and Achievements and Introduction Activities Performance

Objectives and Activities

2. Our Objectives and Activities

Barnwood’s strategic objectives have remained the same for over ten years, and felt more relevant than ever during the first year of the pandemic, albeit, in some cases, harder than ever to achieve. Those objectives are for:

1. Disabled people and people with mental health challenges to follow their passions and take up opportunities, and no one feels excluded.

2. Disabled people and people with mental health challenges to live in well designed homes in welcoming, sustainable communities.

3. Disabled people and people with mental health challenges to be fully involved in creating welcoming communities, spaces and places.

4. People and organisations to want to make positive

changes on disability issues and inclusion.

Through the achievement of those objectives, it is the Trust’s aim for Gloucestershire to be a better place for disabled people and people with mental health challenges to live.

While a number of our operations were suspended during 2020, we were able to deliver our strategic objectives in new ways. The Trustees also agreed to put an additional £1 million into grant funding across the remainder of the year. We were therefore able to achieve our strategic objectives through the following activities:

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Notes to the Financial Statements

Structure, Financial Governance and Review Management

Statement of Financial Activities

5

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

Objectives and Activities

Objective 1: People follow their passions and take up opportunities, and no one feels excluded

Grants for individuals

During the first months of the pandemic, we launched a new online grant application system and a new Keeping Strong Fund for individuals. Applications quadrupled and, over the following weeks, staff were redeployed to support the administration of the fund. We also instituted a temporary ‘£5,000 fund’ for urgent money to be distributed by support agencies. Demand outstripped our capacity for administering individual grants by June despite redeploying many of our team to work on this, and we paused this grant stream until the autumn. Despite this pause, we administered 72% more grants for individuals in 2020 than in 2019.

Supported Physical Distancing scheme

We were pleased to be able to provide a small number of grants to organisations who were able to run activities which enabled those who were shielding and those who were unable to comply with social distancing regulations to enjoy time outside and experience new surroundings. This included grants for Cotswold Riding for the Disabled, Allsorts and Kingshill House. We would like to thank those organisations who continued to persevere to provide fun opportunities for their beneficiaries at such a challenging time.

Reference and Administrative details

Structure, Financial Governance and Review Management

Objective 2: People live in well-designed homes in welcoming, sustainable communities

Social Sustainability

The Trust launched The Social Sustainability Toolkit (www.socialsustainabilityglos.org), a guide to support organisations and communities to help turn new housing developments into thriving communities. Our launch event prior to the pandemic beginning was well-received, and levels of engagement seemed positive. This was evidenced by several enquiries the Trust received from a range of organisations during the first part of 2020. These included a local authority, a faith-based organisation, and a housing association. All wanted to work with us to help apply the learning from the Toolkit to geographic areas and projects, where they worked. However, these opportunities and further work, had to be ended, as the Trust and potential social sustainability partners, necessarily had to redirect resources to respond to needs due to the pandemic.

Manor Gardens

At the start of the year, the Trust commissioned an independent review of the proposal to redevelop the Manor Gardens housing scheme. It needed to assess whether all issues, costs and other risks had been fully considered before proceeding with the development. The review was in the context of a contemporary financial appraisal, which had identified significant cost increases from the previous assessment.

Notes to the Financial Statements

Balance Sheet

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement Independent of Financial Auditors’ Report Activities

6

Welcome and Introduction

Objectives and Achievements and Activities Performance

Cash Flow Statement

Objectives and Activities

In March, planning permission was consented for 46 new dwellings, with the Manor House achieving a separate consent, to provide community space on the ground floor with two flats on the first floor.

However, in the light of the Pandemic, the Board decided to put the scheme on hold. Given the quantum of investment needed to deliver the Manor Gardens project Trustees considered that this was disproportionate, in view of the growing needs of disabled people and people with mental health challenges due to Covid-19. Reluctantly the decision was taken not to go ahead with the development but to market the scheme to potential partners.

In August, expressions of interest and development proposals were sought through the issuing of a Prospectus to a wide range of charitable housing and social investment organisations. These were evaluated during the latter part of the year. In November, the Board approved the seeking of tenders for the scheme from the three organisations that indicated that they shared the Trust’s vision and had expressed an interest in the whole site.

continued to work with Elim Housing, our managing agent, with the aim of providing a good quality housing service to residents. This included implementing the findings of an external review of the current housing management arrangements and approving bricks and mortar investment for the occupied homes, where this was needed.

Grants to community spaces to help them survive Covid-19

Having invested in scores of community spaces since launching the scheme in 2015, we were keen that pandemic-related loss of income did not jeopardise the long-term future of those spaces. We contacted all previous grant recipients and both invited them to share with us the challenges they were experiencing, as well as apply for grants to secure their future. We were able to support several previous community spaces grant recipients to continue to maintain their space for the future.

Objective 3: People are fully involved in creating welcoming communities, spaces and places

Grants for community organisations during the pandemic

A number of new community organisations sprang up at the start of the pandemic. At the same time, well established organisations developed their programmes and services in order to respond to new challenges facing their communities. We encouraged organisations to come together to discuss key issues impacting them, and also provided funding to organisations to help them to meet the new and emerging needs in the communities around them.

FestivALL

FestivALL is Gloucestershire’s inclusive festival across ethnicity, culture, language, identity and ability. In response to Covid-19, the previous format was swiftly changed to make it accessible to people who were selfisolating. Over the month of July, we hosted 5 accessible virtual events for FestivALL and launched a social media campaign.

Throughout this process, the Trust has

Reference and Administrative details

Funds held as Custodian Trustee

Notes to the Financial Statements

Structure, Financial Governance and Review Management

Statement Statement of Trustees’ Independent of Financial Balance Cash Flow Responsibilities Auditors’ Report Activities Sheet Statement

7

Welcome and Objectives and Achievements and Introduction Activities Performance

Objectives and Activities

Objective 4: People and organisations want to make positive changes on disability issues and inclusion

Let’s Be Clear

In the autumn of 2020, we launched our Let’s Be Clear campaign as a result of our Our Changing World research into the experiences of disabled people and people with mental health challenges in the pandemic (see below). The research highlighted the barriers to communication and lack of accessibility of information during the Covid-19 pandemic. This has made life more difficult for many disabled people in Gloucestershire and impacted on their mental wellbeing. The Let’s Be Clear campaign is for clear face masks and clearer communication.

Lots of other Gloucestershire organisations are also passionate about this work and have partnered with us on the campaign, including Gloucestershire Deaf Association, Inclusion Gloucestershire, Age UK Gloucestershire, Active Impact, Cheltenham Welcomes Refugees, University of Gloucestershire, Diocese of Gloucester, and Cheltenham Borough Homes.

Here are some highlights of what campaign partners have shared with us so far about why it is important to be involved:

Reference and Administrative details

Funds held as Custodian Trustee

Structure, Financial Governance and Review Management

What people are saying about the Let’s Be Clear campaign...

“We recently carried out a survey of older people in Gloucestershire and found that 33% felt isolated, and just over half said their enjoyment of life has decreased during the pandemic. We can see that the use of non-clear face masks plays a part in this feeling of disconnection, so we wanted to join the Let’s Be Clear campaign to raise awareness and bring people together around a solution.” Rob Fountain, CEO of Age UK Gloucestershire

“We work alongside many disabled people in Gloucestershire. Having a physical disability can mean that speech is not as clear as other people’s and wearing a face covering makes conversation that much harder. Some people with a learning disability rely on extra facial cues to understand too. So, we were eager to get involved and to try out clear face masks for ourselves at Inclusion Gloucestershire.”

Vicci Livingstone-Thompson, CEO of Inclusion Gloucestershire

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

“I endeavour to wear my clear face mask when I am in public and need to speak with a face mask on. This could be when I’m meeting people across the diocese and in our worshipping communities, being in the House of Lords, or visiting prisons. It is our responsibility to ensure that we can connect well with people who rely on lip reading and facial expressions to communicate and we don’t create unnecessary barriers by wearing covered face masks.

Wearing my clear face mask often starts conversations and helps raise awareness of the positive impact wearing a clear face mask can make. The Let’s Be Clear campaign is a fantastic project to raise awareness of this issue.”

Bishop of Gloucester, the Right Revd Rachel Treweek

Notes to the Financial Statements

8

Welcome and Objectives and Achievements and Introduction Activities Performance

Achievements and Performance

1. Research: Our Changing World

We undertook a project to map the experiences of disabled people and people with mental health challenges in the county during the first 12 weeks of the pandemic. The resulting report: ‘Our Changing World’ was shared with county decision-makers at a launch event in July and published in August.

As well as recommendations for action on clearer communications (see the Let’s Be Clear campaign above), the report made several other recommendations, as follows:

Reference and Administrative details

Funds held as Custodian Trustee

An expert panel was brought together to look at how to progress these recommendations. The panel found that some of the recommendations will sadly not be achievable in a short timeframe, although work continues to convene groups and share information in order to try to make the lasting change that is needed to build resilience in the county in preparation for future extreme events.

Notes to the Financial Statements

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Balance Sheet

Structure, Financial Governance and Review Management

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Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Cash Flow Statement

Achievements and Performance

2. Funding

Research into the VCS

In order to support the decision-making and strategic thinking of the Gloucestershire Funders group, we conducted defined pieces of research into the VCS in Gloucestershire. - Full reports can be found here: www.barnwoodtrust.org/vcs reports

The first report we published primarily outlined the financial crisis that the majority of VCS organisations were facing as the pandemic took hold and severely restricted income generation activities. Our response to this was the formation of Gloucestershire Funders (see below).

Our second report highlighted the incredible flexibility, adaptability and importance of the sector. Our key recommendations from this report were as follows: www.barnwoodtrust.org/wp-content/uploads/2021/06/C19-the-VCS-2021-Exec-Summary-and-Recommendations.pdf

These recommendations have gone on to inform our Funding Principles which we are using to create new grant streams for the future.

Gloucestershire Funders

In response to the financial crisis facing many charities as early as April 2020, Barnwood Trust convened a group of funders to explore the possibility of working together to support organisations across the county.

Focussed on ease of application for applicants, and a collaborative approach, Gloucestershire Funders involved around eight locally-based Trust and Foundations throughout 2020. Collectively, the funders received 269 applications, and awarded over £900,000 to 155 organisations.

The group continues to meet to consider applications and more information is available here: https://glosfunders.org

Reference and Administrative details

Funds held as Custodian Trustee

What people are saying about Gloucestershire Funders...

“The funding from Gloucestershire Funders has enabled us to invest in new furniture and equipment that meant we could… welcome members of our community seeking face to face support back to a Covid-19 secure environment. It has also enabled us to increase our capacity to offer a broader menu of services to those still shielding. In our building we now have hygiene stations, safe outdoor space, individual physically spaced workstations for (head injury) survivors, a full stock of personal protective equipment, laptops and new communications tools for liaison between ‘bubbles’. We have also developed a ‘Zoom Room’ for broadcasting and begun a programme of training survivors and volunteers to lead in hosting activities with confidence.”

“We operate a volunteer transport “Allsorts provides hundreds of system to our classes (we are very hours of extra-curricular activity a rural). The money Gloucestershire week for young disabled children Funders has given us is being used in Gloucestershire. Many children to support our classes. The extra who come to Allsorts have complex expense involved in bringing people and life limiting conditions and are in individually has been massive but very isolated – both physically and nevertheless very important. Initially socially. We aim to combat this we didn’t use volunteer drivers, by helping them forge friendships but risk assessments showed that and try new things in supported, by putting people into bubbles we safe but fun environments. could do it more safely with our own The funding from Gloucestershire drivers than taxis. During lockdown Funders replaced some of our we offered a “one stop help shop”. income which usually would Service users picked up a phone and have been raised through the could get help with anything. If we community and fundraising didn’t have the knowledge we went events. It helped keep 5 members out and found it. We did everything of our team in post to continue from homing a cat to sorting out delivering much needed support funeral expenses. This service was and activities to Allsorts families.” invaluable to people who were Allsorts Gloucestershire unable to access information due to lack of eyesight or technology.” Forest Sensory Services

Headway Gloucestershire

Notes to the Financial Statements

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Structure, Financial Governance and Review Management

10

Welcome and Objectives and Achievements and Introduction Activities Performance

Achievements and Performance

“The Door is a youth organisation based in Stroud but working across the district and south of the county. We work with young people aged 11-25 and their families, creating safe spaces and a sense of belonging. By being positive role-models, we empower young people, parents and carers, giving them hope for the future… Because of Covid-19 our charity shop was shut for nearly 3 months. It provides an essential source of core funding for The Door, and the grants from the Gloucestershire Funders have gone a long way to replacing that. It has meant that we’ve been able to keep all of our staff on, as well as cover the ongoing costs of our work. We’ve also been able to invest in new equipment.”

The Door

“Gloucestershire Funders has enabled us to implement our Link Chat – a service which provides young people to have a daily check-in with a youth worker. This has proved to be a lifeline; to support young people’s mental health and ensure they are keeping safe. Funding also allowed us to provide care packages throughout lockdown including food, toiletries, resource packs and wellbeing resources while we ensured young people were safe, fed and have material to keep them well at home. Funding also allowed us to launch detached youth work in communities across Gloucestershire, a service which we intend to continue in the future.”

Young Gloucestershire

“Our charity supports vulnerable young people with complex disabilities, along with high personal care, therapy, emotional and medical support needs. We do this through the provision of residential and day learning, training and personal development programmes, along with short and long-term specialist accommodation… We have used the money from Gloucestershire Funders to cover some of the costs of essential PPE (personal protective equipment) that we have needed to keep our young people and staff safe. It has been invaluable in ensuring we can stay open to care for those who have depended on us and provide reassurance for their families. We are so grateful to Gloucestershire Funders for this support.” National Star College

“Together In Matson, based at the Redwell Centre, is a youth and

community project. Every day we are responding to new and diverse incidents within our community. As a project we are worried we won’t be here to continue our support due to our funding situation, so firstly, the money from Gloucestershire Funders’ took away some anxiety. Now we are able to work to provide the services that are needed, and although we are unsure how this is going to play out, what we do know is that young people will be wanting to get back together asap, and so we will be starting with them. Our activities will either be in their streets, in our outside area or the top of a hill; whatever we do, we will have to be inventive and safety conscious.” Together in Matson

“Friendship Café is based in the

Barton and Tredworth / Coney Hill wards of Gloucester. The pandemic has forced us to progress in ways that we had only thought about in principle before, for example setting up the community kitchen… an important part of the local community, offering food for those who need it most. We need to keep the Friendship Café up and running, and we also have to make up for the loss of income from the Café and groups renting the space. The Gloucestershire Funding helps keep the building open, clean, lit, insured, and ensure that a custodian can keep working here. At this time of big uncertainties, the funding gives reassurance to us.” Friendship Café

“Gloucestershire Funders are

supporting our Outreach Family work to continue to make a difference to the lives of children and their families, who need it most. We will be providing a Summer provision of activity, play and support, including a nutritious lunch for the children. The ‘Free School Meals scheme’ does not cover children within Early Years, therefore we will continue to support families by providing access to Foodbank vouchers and our own food support packages, over the summer months. Our one-to-one contact with families will also continue over the summer, to help families to cope with any challenges they will be facing and to help them to prepare to return to some kind of normality in September, something that is a daunting prospect for many families.”

Cirencester Opportunity Group

Structure, Financial Governance and Review Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Notes to the Financial Statements

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Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

Achievements and Performance

Levels of funding in 2020

Overall, we distributed in excess of £1m of additional funding within Gloucestershire. The breakdown of this increased investment in the county can be seen in the table below.

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Value of grants Number of Value of grants Number of
Type of funding in 2020 grants awarded in 2019 grants awarded
£’000 in 2020 £’000 in 2019
Grants for individuals £1,486 2,804 £962 1,629
Grants for small groups £19 15 £21 91
Grants to organisations £648 164 £129 111
Grants for support agencies £220 43 £ Nil -
to distribute to individuals
Community Spaces £175 33 £253 32
TOTAL £2,548 3,059 £1,365 1,863
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Despite this additional contribution, we are mindful that through our research, we have seen that many individuals and organisations in the county do not have what they need to thrive.

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

Structure, Financial Governance and Review Management

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Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Cash Flow Statement

Achievements and Performance

3. Supporting organisations

As well as providing funding to a larger number and wider range of organisations in response to the pandemic, it became clear that many charity leaders were experiencing extreme pressure and would benefit from support beyond that of a purely funding-based relationship. As a result, we worked with a range of partners to provide extra support to charity leaders. This included:

Financial Review

4. Strategic Partnerships

We piloted a new type of relationship for the Trust. We form strategic partnerships with relevant organisations which can contribute to changing conditions in the county for disabled people and people with mental health challenges. Partnerships are designed to increase and develop the capacity of both Barnwood Trust and the partner organisation, in order to achieve material benefit for disabled people and/or people with mental health challenges in Gloucestershire.

Our first partnership was with the legal access charity Access Social Care (ASC). ASC provides free legal advice for people with social care needs, helping them achieve a better quality of life. They work with communities to increase knowledge of the law and our rights. They highlight the gap left by cuts to Legal Aid to provide legal advice for those who can’t afford it. Our partnership with Access Social Care has enabled them to pilot a new place-based model for the provision of their support in Gloucestershire.

While finalising our first strategic partnership in 2020, we have also explored other potential strategic partners, and aim to have established an additional 4 strategic partners in the first six months of 2021. This new way of working together with organisations presents a key development to maximise the reach and contribution of the Trust within our county.

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Responsibilities

5. Strategic review

Like many organisations, 2020 prompted a review of our strategy and approach. Through this, we have developed a new theory of change for 2021 and beyond.

Our Theory of Change

We do this... and as a result... so that...

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Listening and learning
Funding
Changing conditions
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People take up
passions and
opportunities Gloucestershire
is a better place
People live in for disabled
homes that meet people and
their needs people with
mental health
People challenges to
develop their own make the most
communities and of their lives
the county as a
whole
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The strategic review also triggered an organisational restructure, which sadly led to us saying goodbye to some valued colleagues at the end of the year. We want to thank them for their contribution to the Trust and their part in enabling us to make a meaningful contribution to the county in 2020.

Notes to the Financial 13 Statements

Statement of Financial Activities

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

Structure, Governance and Management

Welcome and Objectives and Achievements and Introduction Activities Performance

Achievements and Performance

6. Investment performance against objectives

The Trustees have a general power of investment conferred upon them by the Trustee Act 2000, as well as the powers conferred by the governing document dated 27/07/2015.

Investment returns are evaluated against policy portfolio benchmarks consisting of the sum of different asset class benchmarks as agreed with investment managers and weighted in accordance with the long term policy targets.

The Trust has investment managers, who report the portfolio balances to the Trust, through the Finance, Audit & Remuneration Committee, on a quarterly basis, with a written report providing performance analysis and via an annual meeting. The investment managers have discretional powers (subject to specific limitations) to invest in stock categories in proportions which are agreed by the Trust. During the course of the year one investment manager was replaced with two investment managers; the Trust now has three investment managers.

The Trustees’ investment guidelines and actual allocations as at 31st December 2020 were:

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Asset Class Guideline % 2020 Actual %
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Asset Class Guideline % 2020 Actual %
Fixed/Index-Linked Interest 10 – 40% 21.0%
Equities 25 – 75% 62.3%
Property 0 – 20% 5.3%
Alternative Investments 0 – 10% 7.9%
Cash 0 – 15% 3.5%

The Trustees are happy with the current portfolio allocations to support the long term investment objective.

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

Structure, Governance and Management

14

Welcome and Objectives and Introduction Activities

Achievements and Performance

Financial Review

Independent Auditors’ Report

Cash Flow Statement

Financial Review

1. Review of the charity’s financial position at the end of the year

As at 31st December 2020 the Trust’s funds were £100.0 million (2019: £99.3 million), this was an increase of £741k during the year. Of these funds £998k (2019: £941k) relates to a permanent endowment fund and the remainder are unrestricted funds.

Investment performance during the year, whilst volatile, was sufficient to cover the excess of resources expended of £5.38 million (2019: £4.53 million). Net investment returns were £3.6 million (2019: £11.90 million) and compromised of realised gains of £6.32 million and unrealised losses of £2.75 million. The majority of the investment gains arose through the managed disposal of investments and crystallisation of gains to transfer the funds to two new investment managers who were appointed during the year.

The activities of the Trust during the period resulted in a deficit of £2.35 million (2019: £.34 million). Total income generated was £3.0 million (2019: £3.19 million), of which £2.68 million (2019: 2.84 million) was generated from investments held with investment managers, a further £138k (2019: £137k) rental income was generated from investment properties and £200k (2019: £203k) rental income from charitable properties. The balance came from donations, grants and bank interest.

Expenditure during the period was £5.38 million (2019: £4.53 million) of which £533k (2019: £555k) was expended on raising funds by way of investment manager fees and rental collection and property management. Expenditure on charitable activities during the year was £4.84 million (2019: £3,98 million), a breakdown on this expenditure can be seen in note 3.3 to the financial statements on page 31. Expenditure increased significantly during 2020 as Trustees approved an additional £1 million of funds to be made available for grants to individuals and organisations. Total grant giving during 2020 was £2.54 million (2019: £1.37 million).

£1.64 million). This expenditure enables the Trust to initiate, deliver and support its various work programmes in the community and across the county acting as a catalyst for change in deliverance of the Trust’s strategy.

In December 2020 following a review of the Trust’s strategy and activities undertaken to deliver the strategy , Trustees decided not to continue with a previously planned capital development at its Manor Gardens. This resulted in a write of off costs of £474k, which had been incurred to date.

2. Reserves Policy

The Trustees have adopted a Total Return approach, which means that both income and the underlying capital can be used to support the Trust’s activities; therefore, the actual income received each year will be supplemented, if necessary, from distributable capital.

The Trust’s vision is to drive systemic change that makes Gloucestershire a better place for disabled people and people with mental health challenges to live in. Through seeking to enable both societal and systems change which is sustainable the Trust needs to be able to respond to the needs of current beneficiaries whilst also ensuring the needs of future beneficiaries will be met. The reserves policy therefore ensures the work of the Trust is protected from a disruption to its income stream at short notice whilst also ensuring the sustainability of future income streams.

As at 31st December 2020, the reserves policy indicates that the minimum level of reserves required to deliver the Trust’s strategy were £85.6 million. As at 31st December 2020, total reserves were £100.0 million. The difference of £14.4 million is considered to be a Strategic Expenditure Fund for capital purposes.

The Trust continues to support its beneficiaries through a grant giving programme. Expenditure during the period on grants to individuals and small groups was £1.68 million (2019: £1.24 million and on organisations was £859k (2019: £130k).

The major expenditure for the Trust relates to employment costs of £1.73 million (2019:

Structure, Financial Governance and Review Management

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial 15 Statements

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Financial Review

3. Investment policy and objectives

The Trust seeks to balance financial return within an acceptable level of risk. The long term objective is to provide sufficient income to finance the Trust’s operations while preserving the value of the Trust’s assets in real terms. This translates into investment targets for investment managers of the Trust’s portfolio of returns of equivalent to CPI plus 4%. Trustees do not expect that this combined investment objective will be met every year and as a result will measure performance over longer periods.

The Trustees are reviewing the investment policy, with respect to ethical investments as they would like more investments to reflect the Trust’s charitable objects but recognise that the market does not offer this at the moment. Trustees are committed to working with investment managers to developing an ethical matrix as part of ESG policies and with a view to ensuring that investments held do not adversely affect the Trust’s reputation and/or public profile.

4. Risk Management

The following is the Trust’s risk statement:

“The Trust’s vision is to drive systemic change that makes Gloucestershire a better place for disabled people and people with mental health challenges to live. We won’t give up until Gloucestershire is a place where everyone with a disability or mental health problem is valued for who they are and what they can give, can do the things they love, and feel fully welcome in their communities.

The Trust is fortunate to hold assets in the form of investments and property from which it generates its income. While some risk may be taken to achieve good returns, it would be inappropriate to risk the capital value of the assets. Therefore, the risk of loss should be balanced against the expected return.”

Trustees have identified the strategic risks, that is those that are likely to be big issue risks such as reputational or failure to deliver on a major strategic aim (they are the inherent risks in the work of the Trust), and consider each in turn, or as required, at every board meeting.

The operational risks, which arise from all activities undertaken, are subject to a risk review as part of the activity assessment and implementation. Major risks are identified and ranked in terms of their potential impact and likelihood. Trustees seek assurance from the Trust’s Executive on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage operational risks identified. Where appropriate, risks are covered by insurance.

Major risks for this purpose are those that might have a significant effect on:

It is therefore appropriate to take risks with its resources to create opportunities for disabled people and people with mental health problems and welcoming communities throughout the county.

The Trust will not however, take any risks relating to the protection of vulnerable people. Full vetting procedures will always be followed for employees and volunteers and disciplinary action follows when breaches occur. A similar policy is adopted in relation to fraud or corruption.

Structure, Financial Governance and Review Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial 16 Statements

Welcome and Objectives and Achievements and Introduction Activities Performance

Structure, Governance and Management

1. Type of governing document:

Constitution

At the request of the Board, the Nominations and Succession Committee (NSC) - a constitutional committee comprised of Trustees and Governors - were tasked with undertaking a review of the Trust’s governing document to ensure that it remained fit for purpose.

The main reasons for this review were as follows:-

The NSC sought legal advice as to potential options and as a result, a number of changes to the constitution were identified that would enable the more effective and efficient running of the Trust.

2. How is the charity constituted:

Charitable Incorporated Organisation

3. Trustee selection methods including details of any constitutional provisions

Trustees are normally appointed from amongst the members of the Council of Governors. An open call for nominations is made amongst the Council, and applications then considered by the Nominations and Succession Committee, which comprises a Committee of Trustee Governors and non-Trustee Governors. This Committee makes recommendations to the Council of Governors for appointment, and members of the Council vote. A simple majority serves as approval for appointment. Governors are also appointed by the Council of Governors through the same process. In this case an open call is made for applications, through local media, the Trust website, and by personal suggestion from Governors or employees. Non-Trustee Governors appoint, following a recommendation from the Nominations and Succession Committee, a Lead Governor, who works with the Chair on the purpose of meetings of the Council of Governors and advises the Chair on any issues that are concerning Governors.

Governors were formally consulted on these options prior to the NSC instructing lawyers to draft revisions to the constitution for further consideration and approval at a Special General Meeting. This meeting was held on 11 March 2021 and Governor’s endorsed the proposed changes. Approval of the amended constitution was received by the Charity Commission on 15th June 2021.

Financial Review

Structure, Governance and Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Independent Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial 17 Statements

Welcome and Objectives and Achievements and Introduction Activities Performance

Structure, Governance and Management

4. Policies and procedures adopted for the induction and training of Trustees

All Governors and Trustees are inducted into the Trust’s activities through meeting with the senior management responsible for leading those activities and the staff, and sometimes also, beneficiaries involved in those activities. They are also introduced to the Trust’s financial context and processes, and the governance structure. All Trustees and Governors are invited to participate in Trust activities on a regular basis. One formal Governor meeting a year and regular, informal, information and discussion evenings also provide an opportunity to update Governors on activities. Trustees are consulted by the Chair about training required. A pre-meeting prior to Board meetings provides an opportunity for Trustees to receive updates on topics of their choice.

5. The charity’s organisational structure

Each of the four major programmes of work reports to a Committee comprising Trustees and Governors, with provision also for external advisers; these committees are the Social Change & Grants Committee and the Social Influence Committee. In addition to the two Programme Committees there is a Finance, Audit and Remuneration Committee, a Capital Projects Oversight Committee, a People & Remuneration Committee and a Nominations and Succession Committee. The Board of Trustees meets formally five times a year, one of those meetings being an Awayday. From time to time ad hoc working groups or meetings for Trustees are organised to review specific issues, for example considering social investment or setting value for money indicators.

During 2020, the Board of Trustees agreed to meet on a more frequent basis, as such the programme committees did not meet after March 2020, all matters were reported to the Board of Trustees.

Structure, Financial Governance and Review Management

Reference and Funds held Administrative as Custodian details Trustee

Statement Statement of Trustees’ Independent of Financial Responsibilities Auditors’ Report Activities

Notes to the Financial 18 Statements

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Reference and Administrative details

1. Charity Name

2. Registered charity number

3. Charity’s principal address

Barnwood Trust

1162855

Overton House, Overton Road, Cheltenham, Gloucestershire, GL50 3BN

5. Names and addresses of advisers

Bankers:

HSBC Bank plc, 2 The Promenade, Cheltenham, GL50 1LR

Investment Managers:

Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London, EC4M 8BU CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Goldman Sachs International, Plumtree Court, 25 Shoe Lane, London, EC4A 4AU

4. Charity Trustees who manage the charity

Auditors:

----- Start of picture text -----
Name of body entitled
Name Office
to appoint Trustee
Ann Santry Chair of Trust
Andrew North Deputy Chair of Trust
Benjamin Preece
Treasurer
Smith
Suzanne Beech Trustee
Ann Buxton Trustee
Chair of Governors
Patricia Jay Trustee
Pippa Jones Trustee
Shaun Parsons Trustee
Edward Playne Trustee
Colin Smith Trustee
Jean Waters Trustee
----- End of picture text -----

Structure, Financial Governance and Review Management

Hazlewoods LLP, Windsor House, Bayshill Road, Cheltenham, GL50 3AT

Solicitors:

Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham, B3 2ES

Chartered Surveyors:

Bruton Knowles, Bisley House, Green Farm Business Park, Bristol Road, Gloucester, GL2 4LY

Health & Safety:

Ellis Whittam Ltd, Woodhouse, Church Lane, Aldford, Chester, CH3 6JD

6. Chief Executive

The Chief Executive is responsible for the day to day operation of the Trust and manages the Trust’s employees on behalf of the Trustees. The Trust’s Chief Executive is Dr Sally Byng.

7. Exemptions from disclosure None

Funds held as Custodian Trustee

Notes to the Financial Statements

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Independent Auditors’ Report

Balance Sheet

Reference and Administrative details

19

Welcome and Objectives and Achievements and Introduction Activities Performance

Cash Flow Statement

Funds held as custodian trustees on behalf of others

The Trust does not hold any funds as custodian on behalf of others.

Statement of Trustees’ Res onsibilities p

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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:

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees on 24th June 2021 and signed on its behalf by:

Ann Santry Chair, Board of Trustees

The Trustees are responsible for keeping proper accounting records which 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 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.

Structure, Financial Governance and Review Management

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Notes to the Financial Statements

20

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Independent Auditors’ Report to the Trustees of Barnwood Trust - For the year to 31st December 2020

We have audited the financial statements of Barnwood Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. 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).

Opinion on financial statements

In our opinion the financial statements:

This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors’ 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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 charity 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

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Notes to the Financial Statements

Structure, Financial Governance and Review Management

21

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

Independent Auditors’ Report to the Trustees of Barnwood Trust - For the year to 31st December 2020

Other information

The other information comprises the information included in the annual report, other than the financial statement and our auditor’s report thereon. 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 where the Charities Act 2011 requires us to report to you if, in our opinion:

Reference and Administrative details

Funds held as Custodian Trustee

Responsibilities of 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 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Notes to the Financial Statements

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Balance Sheet

Structure, Financial Governance and Review Management

22

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Cash Flow Statement

Independent Auditors’ Report to the Trustees of Barnwood Trust - For the year to 31st December 2020

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Martin Howard (Senior Statutory Auditor) For and on behalf of Hazlewoods LLP, Statutory Auditor Windsor House, Bayshill Road, Cheltenham, GL50 3AT Hazlewoods LLP are eligible to act as auditors in terms of Section 1212 of the Companies Act 2006.

Reference and Funds held Administrative as Custodian details Trustee

Structure, Financial Governance and Review Management

Statement Statement of Trustees’ Independent of Financial Balance Cash Flow Responsibilities Auditors’ Report Activities Sheet Statement

Notes to the Financial Statements

23

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Statement of Financial Activities - For the year ended 31st December 2020

----- Start of picture text -----
Unrestricted Funds Permanent Endowment Total Funds 2020 Total Funds 2019
Notes
£’000 £’000 £’000 £’000
----- End of picture text -----

Incoming resources
2
Donations and legacies
2.1
Charitable activities
2.2
Investments
2.3
Other
2.4
Total
Resources expended
3
Raising funds
3.1
Charitable activities
3.2
Total
Net (expenditure) before investment gains/(losses)
Net unrealised investment losses/(gains)
Net unrealised investment property gains
Net (expenditure)/income
Other recognised gains/(losses):
Gains/(losses) on revalutaiton of fxed assets
Realised (losses) on fxed assets
Realised gains in investments
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
10		 5
-
5
2
200
-
200
203
2,815
-
2,815
2,979
3
-
3
8
3,023
-
3,023
3,192
533
-
533
555
4,844
-
4,844
3,980
5,377
-
5,377
4,535
(2,354)
-
(2,354)
( 1,343)
(2,804)
57
(2,747)
11,253
-
-
332
(5,158)
57
(5,101)
10,242
-
-
-
(2,400)
( 474)
-
(474)
( 21)
6,316
-
6,316
317
684
57
741
8,138
98,318
941
99,259
91,122
99,002
998
100,000
99,260

Reference and Administrative details

Funds held as Custodian Trustee

Structure, Financial Governance and Review Management

Statement of Trustees’ Responsibilities

Statement of Financial Activities

Independent Auditors’ Report

Balance Cash Flow Sheet Statement

The notes on pages 27 to 37 form part of these financial statements

Notes to the Financial Statements

24

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Balance Sheet - As at 31st December 2020

----- Start of picture text -----
Unrestricted Funds Permanent Endowment Total Funds 2020 Total Funds 2019
Notes
£’000 £’000 £’000 £’000
----- End of picture text -----

Fixed assets
Tangible assets
4
Investments
Quoted Investments
5
Investment property
6
Cash held by investment managers
Total fxed assets
Current assets
Debtors
7
Cash at bank and in hand
8
Total current assets
Creditors: amounts falling due within one year
Net current assets/(liabilities)
9
Total assets less current liabilities
Funds of the Trust
Permanent endowment fund
Unrestricted general funds
Total funds
10		 6,735
-
6,735
7,202
88,114
998
89,112
87,634
2,500
-
2,500
2,500
35
-
35
397
97,384
998
98,382
97,733
476
-
476
237
1,958
-
1,958
1,975
2,434
-
2,434
2,212
816
-
816
685
1,618
-
1,618
1,524
99,002
998
100,000
99,259
-
998
998
941
99,002
-
99,002
98,318
99,002
998
100,000
99,259

Reference and Administrative details

Funds held as Custodian Trustee

Structure, Financial Governance and Review Management

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

The notes on pages 27 to 37 form part of these financial statements

Notes to the Financial Statements

25

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Cash Flow Statement - For the year ended 31st December 2020

----- Start of picture text -----
2020 2019
£’000 £’000
----- End of picture text -----

Cash used in operating activities
Net expenditure before investment gains and losses
Depreciation charges
Proft on disposal of tangible assets
Movement in debtors
Movement in creditors
Net cash used in operating activities
Cash fows from investing activities
Purchase of tangible assets
Purchase of investments
Proceeds from disposal of investments
Total current assets
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at 31 December 2020
Cash and cash equivalents
Cash held by investment managers
Cash at bank and in hand		 (2,354)
(1,343)
183
218
474
2,421
(239)
55
131
(34)
(1,804)
1,317
(191)
(2,158)
(31,281)
(5,464)
32,898
4,697
1,426
(2,925)
(378)
(1,608)
2,372
3,980
1,994
2,372
35
397
1,959
1,975
1,994
2,372

The notes on pages 27 to 37 form part of these financial statements

Approved by the Trustees on 24th June 2021and signed on their behalf by:

Ann Santry, Chairman

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Independent Auditors’ Report

Statement of Financial Activities

Notes to the Financial Statements

Structure, Financial Governance and Review Management

26

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

1. Accounting policies

Basis of preparation

The financial statements have been prepared under the historic cost convention, with the exception that investments and properties are included at market value. The financial statements have been prepared in accordance with the 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 (FRS102) and the Charities Act 2011.

Funds Structure

Income arising on Permanent Endowment Fund investments is credited to the General Fund, being an unrestricted fund. Profits and losses on disposals including unrealised gains and losses are retained by the Permanent Endowment Fund.

Incoming Resources

All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure includes any attributable VAT that is not recoverable.

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Trust.

Allocation of overhead and support costs

Overhead and support costs are charged/allocated directly to charitable activity wherever possible, with remaining costs being allocated pro rata to staff time.

The total support cost attributable to charitable activities is then apportioned between grant-making and other charitable activities pro rata to staff time.

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Costs of raising funds

The costs of raising funds consist of investment management and certain legal fees.

Charitable Activities

Charitable activities include grants made, letting of charitable properties and four programmes of which deliver a 10 year programme for building inclusive and welcoming communities, and an apportionment of overhead and support costs as shown in note 3.3.

Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised and valued at historic cost.

Depreciation is charged to write off the cost of tangible fixed assets included in the financial statements in equal annual instalments at the following annual rates:

----- Start of picture text -----
Motor vehicles 20% Straight line
Furniture and equipment 10 - 25% Straight line
Land Nil%
Freehold buildings held for
2% Straight line
charitable purposes
Assets under construction Nil%
----- End of picture text -----

Notes to the Balance Cash Flow Financial 27 Sheet Statement Statements

Statement of Financial Activities

Structure, Financial Governance and Review Management

Welcome and Objectives and Achievements and Introduction Activities Performance

Independent Auditors’ Report

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

Depreciation is charged against the relevant Trust activity in accordance with the usage of the assets.

Freehold properties used for charitable purposes are included at market value at 1 October 2015, date of transfer from Barnwood House Trust, (less depreciation) or at subsequent cost or diminution of value. Certain of these properties are not occupied by the Trust but have been acquired specifically to provide premises for organisations having charitable aims and objectives similar to those of the Trust. Although the Trust receives rental income from these properties, the Trustees do not consider the primary reason for their acquisition to have been for investment purposes and they have not therefore been classified as investment properties.

Website development costs, included in furniture and equipment, are capitalised as they are considered to lead to the creation of an enduring asset which delivers benefits at least as great as the amount capitalised.

Investment management costs are the fees charged by investment managers in accordance with the terms of the investment management contract.

Investment Property

Investment properties are defined as interests in land and buildings which are held for the purpose of producing an income for the charity with rental income being negotiated at arm’s length. Proceeds from the sale of investment properties are credited to the general fund account.

These properties are included at their market value and are not depreciated. Any increase or decrease in valuation is recorded as an unrealised gain or loss in the other recognised gains and losses section of the SOFA.

Pension Costs

Pension costs charged represent employer contributions payable by the Trust to The Pensions Trust.

number 1162855, and is exempt from Income Tax and Capital Gains Tax provided its income and gains are applied for charitable purposes.

Foreign currencies

Investment transactions in foreign currencies are recorded at the rate of exchange prevailing at the date of the transactions. Foreign investments and foreign currency balances are translated at the rate of exchange at the balance sheet date.

Gains and losses on foreign exchange are included in the Statement of Financial Activities as part of the realised and unrealised gains and losses on investments.

Fund Accounting

Funds held by the Trust are either:

Unrestricted general funds - this is the General Fund which can be used in accordance with the charitable objectives at the discretion of the trustees.

Quoted Investments

Gains and losses arising on investment assets, both through sale and change in valuation, are disclosed in a separate section of the SOFA. Changes in the valuation of investments during the year are shown as unrealised gains or losses. Gains or losses arising from the disposal of assets are disclosed as realised, being the difference between the sale proceeds and original cost.

Quoted investments held at 31 December 2020 are included at their quoted value.

Trustees’ reimbursement

Trustees do not receive any remuneration in their capacity as trustees but are entitled to be reimbursed for travelling and other expenses incurred on behalf of the Trust. During the period, no Trustee was reimbursed for travel or other expenses.

Taxation

The Charity is registered with the Charity Commission,

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular purposes.

Permanent endowment fund – these are the funds from the original donation to the Trust of Barnwood House. These funds will be held as charitable funds in perpetuity.

Further details of the nature and purpose of each fund is included in the notes to the financial statements on page 37.

Structure, Financial Governance and Review Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

28

Welcome and Objectives and Achievements and Introduction Activities Performance

Cash Flow Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

2. Analysis of income

----- Start of picture text -----
Unrestricted Funds Endowment Fund Total Funds 2020 Total Funds 2019
£’000 £’000 £’000 £’000
----- End of picture text -----

2.1
Donations and legacies
Donations and gifts
Total
2.2
Charitable activities
Rental income
Total
2.3
Income from investments
Dividend income
Rental income
Total
2.4
Other
Interest on bank deposits
Total		 5
-
5
2
5
-
5
2
200
-
200
203
200
-
200
203
2,676
-
2,676
2,841
139
-
139
137
2,815
-
2,815
2,978
3
-
3
8
3
-
3
8

Financial Review

Structure, Governance and Management

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial Statements

29

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

3. Analysis of expenditure

----- Start of picture text -----
Unrestricted Funds Endowment Fund Total Funds 2020 Total Funds 2019
£’000 £’000 £’000 £’000
3.1 Expenditure on raising funds:
Investment management costs 384 - 384 425
Rent collection, property repairs and maintenance charges 149 - 149 130
Total 533 - 533 555
3.2 Expenditure on charitable activities:
Discovering Opportunities 1,329 - 1,329 939
Shaping Homes 2,106 - 2,106 1,560
Growing Communities 689 - 689 1,111
Sharing Insights 720 - 720 370
Total 4,844 - 4,844 3,980
Total expenditure 5,377 - 5,377 4,535
Analysis of expenditure on charitable activities:
Activities undertaken directly Support Costs Total Funds 2020 Total Funds 2019
Activity or programme
£’000 £’000 £’000 £’000
Discovering Opportunities 1,214 115 1,329 939
Shaping Homes 1,973 133 2,106 1,560
Growing Communities 550 139 689 1,111
Sharing Insights 529 191 720 370
Total 4,266 577 4,844 3,980
----- End of picture text -----

Analysis of expenditure:

During the period 4 Trustees were reimbursed travel expenses of £49 (2019: £128).

Financial Review

Structure, Governance and Management

Reference and Administrative details

Funds held

as Custodian Trustee

Statement

of Trustees’ Responsibilities

Independent Auditors’ Report

Statement

of Financial Activities

Balance Sheet

Notes to the Financial Statements

30

Welcome and Objectives and Achievements and Introduction Activities Performance

Cash Flow Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

Discovering
Opportunities
£’000		 Shaping
Homes
£’000		 Growing
Communities
£’000		 Sharing
Insights
£’000		 Total
£’000		 Basis of
allocation
3.3
Support Costs
Governance
Accommodation costs
Ofce costs
Professional fees
Depreciation
Total		 67
78
81
112
338
Staf time
11
13
13
18
55
Staf time
14
16
17
23
70
Staf time
4
5
5
6
20
Staf time
19
21
23
31
94
Staf time
115
133
139
190
577

Support costs:

Governance costs include employment, volunteer and contractor costs related to the governance of the Trust.

----- Start of picture text -----
2020 2019
£’000 £’000
----- End of picture text -----

3.4
Fees for examination of the accounts
Audit fees
3.5
Staf costs
Salaries and wages
Social Security costs
Pension costs (defned contribution scheme)
Total		 12
10
1,448
1,365
135
126
148
147
1,731
1,638

Staff costs:

Trust employees are invited to join a defined contribution pension scheme. The pension costs charge represents contributions payable to the fund in the period in respect of 49 (2019: 50) employees.

Financial Review

Structure, Governance and Management

Reference and Funds held Administrative as Custodian details Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial Statements

31

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

Employees who received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000:

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2020 2019
Band
£60,000 to £69,999 - 1
£70,000 to £79,999 1 1
£80,000 to £89,999 1 -
£90,000 to £99,999 1 1
Average head count for the period:
Charitable activities 42 43
Management and administration of activities 5 8
Total 47 51
Discovering Opportunities 8 10
Shaping Homes 10 8
Growing Communities 11 12
Sharing Insights 13 13
Supporting Operations 5 8
Total 47 51
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Structure, Financial Governance and Review Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

32

Welcome and Objectives and Achievements and Introduction Activities Performance

Cash Flow Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

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Grants to Grants to individuals
Total
organisations & small groups
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Grants to
organisations
Grants to individuals
& small groups
Total
3.6
Grant making
Analysis of grants paid (included
in cost of charitable activities):
Community spaces grants
Opportunity awards
Small sparks
Small grants to organisations
Wellbeing grants
Total		 -
175
175
-
27
27
-
3
3
859
-
859
-
1,475
1,475
859
1,680
2,539

Reference and Administrative details

Funds held as Custodian Trustee

Grants to organisations over £10,000:

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Name of organisation Purpose of grant Total amount paid £
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Name of organisation Purpose of grant Total amount paid £
Access Social Care
£50,000
Allsorts Gloucestershire
£15,000
Bromford Housing Association
£15,000
CCP
£25,000
Cheltenham Borough Homes
£10,000
Cotswold Counselling
£10,000
Cotswold Friends
£10,000
Fareshares SW
£28,000
Forest of Dean Demential Action Alliance
£19,190
Forest Pulse
£15,363
GARAS
£15,000
Gloucestershire Deaf Association
£27,193
Gloucestershire Disability Fund
£15,000
GL11 Community Project
£31,008
Gloucester City Homes
£20,000
Gloucestershire Counselling Services
£29,282
GRSAC
£15,000
Inclusion Gloucestershire
£15,000
Independence Trust
£10,000
Mindsong
£10,000
MS Information & Therapy Centre
£10,000
Nelson Trust
£15,890
P3
£15,000
Rooftop Housing Association
£10,300
The Door
£10,000
Young Gloucestershire
£12,500
Total
£458,726
Other grants less than £10,000
£400,018
Total grants awarded
£858,744

Notes to the Financial Statements

Statement of Trustees’ Responsibilities

Statement of Financial Balance Cash Flow Activities Sheet Statement

Independent Auditors’ Report

Structure, Financial Governance and Review Management

33

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

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Properties used for Assets under Fixture, fittings &
Motor vehicles Total
charitable purposes construction equipment
£’000 £’000
£’000 £’000 £’000
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4
Fixed Assets
Cost or valuation:
At beginning of period
Additions
Transfers
Disposals / Write of
At end of period
Depreciation:
At beginning of period
Disposals
Impairment charge
Depreciation
At end of period
Net book value:
At beginning of period
At end of period		 9,301
636
46
198
10,182
-
179
-
11
191
341
(341)
-
-
-
-
(474)
-
-
(474)
9,642
-
46
210
9,898
2,867
-
44
69
2,980
-
-
-
-
-
-
-
-
-
-
139
-
2
42
183
3,006
-
46
111
3,163
6,434
626
2
130
7,202
6,636
-
-
99
6,735

Reference and Funds held Administrative as Custodian details Trustee

Structure, Governance and Management

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Financial Review

Fixed Assets:

Freehold properties, which are used by other organisations for charitable purposes and have charitable aims and objectives similar to those of the Trust, are included at market value at 1st October 2015; the date of transfer from Barnwood House Trust. The valuation was carried out by external valuers, Bruton Knowles, Chartered Surveyors. Although the Trust receives income from these properties, the Trustees do not consider the primary reason for their acquisition to have been for investment purposes and they have not therefore been classified as investment properties.

Notes to the Financial Statements

Statement of Financial Activities

Balance Cash Flow Sheet Statement

34

Welcome and Objectives and Achievements and Introduction Activities Performance

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

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General fund Endowment fund Total
£’000 £’000 £’000
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5
Investments
Quoted investments
Cost at beginning of period
Additions
Disposals
Cost at end of period
Unrealised gains at beginning of year
Unrealised (losses)/gains during year
Investment manager fees paid from capital
Unrealised gains at end of year
Market value at beginning of year
Market value at end of year		 63,792
654
64,446
31,281
-
31,281
(26,837)
-
(26,837)
68,236
654
68,890
22,900
287
23,187
(2,796)
57
(2,739)
(226)
-
(226)
19,878
344
20,222
86,692
914
87,634
88,114
998
89,112

Structure, Financial Governance and Review Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

Notes to the Financial Statements

35

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

----- Start of picture text -----
2020 2019
£’000 £’000
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7
Debtors and prepayments
Trade debtors
Prepayments and accrued income
Other debtors
Total
8
Cash at bank and in hand
Short term deposits
Cash at bank and on hand
Total
9
Creditors and accruals
Accruals for grants payable
Trade creditors
Accruals and deferred income
Taxation and social security
Total
6
Investment property
Valuation at beginning of period
Additions
Revaluation
Valuation at end of period		 2,500
2,100
-
68
-
332
2,500
2,500
52
-
268
178
156
59
476
237
-
1,000
1,959
975
1,959
1,975
477
470
18
72
241
111
80
32
816
685

Reference and Administrative details

Structure, Financial Governance and Review Management

Investment property:

The Trust owned two investment properties, namely the Independent Living Centre, Arle, Cheltenham and 6.4 acres of land at Barnwood Fields Business Park. This land was let on a 125 year lease (commenced November 1979) to Intercontinental Hotel Group. Both properties were re-valued, at market value, by the Trust’s Chartered Surveyors, Bruton Knowles, on 31st December 2019. The revaluations were undertaken in accordance with the current Practice Statements of the RICS Appraisal and Valuation Standards 5th Edition, Bruton Knowles being independent valuers as defined in the manual.

Records of historical cost of the investment properties are not available due to the length of time that has elapsed since their original purchase.

Debtors and prepayments:

The Trust made a loan to the Headway Cotswold Trust of £150,000 in 2009. The terms of the loan state that repayment is due if the charity ceases its current operations. This condition expires in 2029. The loan was accounted for as a grant in 2009 and is not reflected in the balances above.

Funds held as Custodian Trustee

Notes to the Financial Statements

Statement of Trustees’ Independent Responsibilities Auditors’ Report

Statement of Financial Activities

36

Welcome and Objectives and Achievements and Introduction Activities Performance

Balance Cash Flow Sheet Statement

Barnwood Trust Notes to the Financial Statements - For the year ended 31st December 2020

----- Start of picture text -----
General fund Endowment fund Total
£’000 £’000 £’000
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10
Analysis of funds
Fund balance at beginning of period
Income
Expenditure
Gains on investments
Losses on fxed assets
Fund balance at end of year		 98,318
941
99,259
3,023
-
3,023
(5,377)
-
(5,377)
3,512
57
3,569
(474)
-
(474)
99,002
998
100,000

Analysis of funds:

The Permanent Endowment Fund was established on 1 November 1983 at a value of £157,959 representing the net proceeds of the sale of Barnwood House Hospital in 1969, adjusted by the relevant stock exchange indices. Investments to this value were allocated to the Fund on this date with a cost of £148,303. Surpluses and deficits on subsequent realisation of investments were reflected in the Fund.

On 1 October 2015 the charity received all the assets and liabilities of Barnwood House Trust (charity no. 218401), the charity is effectively a continuation of Barnwood House Trust under a different legal entity.

Fixed Assets
£’000		 Investments
£’000		 Current
Assets
£’000		 Current
Liabilities
£’000		 Net Assets
£’000
Permanent endowment fund
Unrestricted funds
Net Assets		 -
998
-
-
998
6,735
90,649
2,435
(816)
99,002
6,735
91,647
2,435
(816)
100,000

11 Transactions with related parties

None of the trustees have been paid any remuneration from employment by the Trust or related party during the period.

Financial Review

Structure, Governance and Management

Reference and Administrative details

Funds held as Custodian Trustee

Statement of Trustees’ Responsibilities

Independent Auditors’ Report

Statement of Financial Activities

Balance Cash Flow Sheet Statement

Notes to the Financial Statements

37

Welcome and Objectives and Achievements and Introduction Activities Performance