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2023-09-30-accounts

Company no. 10379880 Charity no. 1169425

Allington Trust Report and Unaudited Financial Statements 30 September 2023

Allington Trust

Reference and administrative details

For theyear ended 30 September 2023 For theyear ended 30 September 2023
Company number 10379880
Charity number 1169425
Registered office and The Hermitage
operational address Allington Lane
Offham
Lewes
BN7 3QL
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Malin Ilott
Paul Spain
Laura Williams
Bankers Triodos Bank
Deanery Road
Bristol
BS1 5AS
Solicitors Trethowans Solicitors
The Pavillion
Botleigh Grange Business Park
Hedge End
Southampton
SO30 2AF
Independent examiners Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

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Allington Trust

Report of the trustees

For the year ended 30 September 2023

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

Allington Trust was constituted in 2016.

The charity is controlled by its governing Memorandum and Articles of Association and constitutes a limited company, limited by guarantee.

All trustees received guidance from both the Charity Commission through their governance code (https://www.charitygovernancecode.org/en) and from the legal firm employed to constitute the Allington Trust and ensure best practice. The initial founder is the chair of the trustees and according to the articles, will be chair until he resigns or ceases to hold office as a trustee.

The charity employs no staff and operational decisions are made by the trustees at regular board meetings. There are no staff costs and the trustees have all waived their right to expenses during this period.

Full details are outlined in the Trust’s articles of association.

Objectives and strategy

The articles of the charity establish general objects for the Trust:

“The objects of the charity are for the public benefit to further any purpose which is exclusively charitable under the law of England and Wales (provided that the charity may not further any purposes which are not charitable in accordance with the laws of Scotland and Northern Ireland)”

The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives.

Achievements

Our charitable tenant, Jamie's Farm (https://jamiesfarm.org.uk/) has a 21 year lease on the farm from March 2018. The tenant is responsible on a full insuring and repairing lease.

Allington Farm is owned and managed in its capacity as landlord by Allington Trust. During the period from September 2018 to Spring 2019 extensive refurbishment of the Farmhouse took place at the tenants cost to make it suitable for the weekly accommodation of young people and teaching staff.

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Allington Trust

Report of the trustees

For the year ended 30 September 2023

Our Tenant opened its doors to the first service users from March 2019.

There is now a solid team of staff at the Farm providing their charitable service for Young People.

The farm animals are now fed with organic rations, the animal welfare standards have been improved and the soil worm count and herbal leys have risen in quality this year.

The farm was officially opened by Jamie’s Farm Patron, the Duchess of Cornwall, in May 2019 and the Trustees were honoured by a royal introduction at the event.

Further grants were under consideration during this period with a view to offering them in the next financial year.

Financial review

The total funds held at the 30 September 2023 were £2,946,153 (2022: £2,939,321). This is represented by fixed assets (the farm) of £3,289,700, cash of £88,926 and liabilities of £414,473.

No part of the loan to the charity from the Chair of the Trustees has been repaid during this period.

The tangible fixed assets are a long term investment in farmland to meet the charities objectives which could be liquidated should the need arise.

The short term assets are unrestricted.

Reserves policy

The majority of the charity’s assets reside in the farm itself. The reserves policy over the year was to maintain cash balances that could meet any short term obligations that may arise. As the Farm Business Tenancy covers all the costs of running and maintaining Allington Farm there is no requirement for considerable reserves to be held as there are no direct liabilities that may accrue from the investment held.

The reserves at the balance sheet date are more than required as there are no staff costs or short to medium term liabilities.

Risk management

In the event of a default by the tenant a short term letting would cover all costs prior to engaging a new organisation with charitable purpose to lease the Farm or partner the Trust.

Looking forward

The Trust intends to increase its charitable giving to organisations that meet its environmental credentials for the next financial year. Funding is only given to organisations that are introduced through our selected charity partners not through unsolicited applications via any media.

Risk

The strategy should Jamie’s Farm default is explained above in our risk assessment. The Chair of the Trustees has confirmed that he will not call in the whole of the Loan to the Trust this financial year but may consider a further donation to ensure the robustness of the Trusts finances and its continuance as a going concern.

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Allington Trust

Report of the trustees

For the year ended 30 September 2023

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with 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).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were re-appointed as independent examiners to the charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 23 November 2023 and signed on their behalf by

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Paul Spain - Chair

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Independent examiner's report

To the trustees of

Allington Trust

I report to the trustees on my examination of the accounts of Allington Trust (the charitable company) for the year ended 30 September 2023, which are set out on pages 6 to 13.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

William Guy Blake

Date: 23 November 2023 William Guy Blake ACA Member of the ICAEW For and on behalf of:

Godfrey Wilson Limited

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

5

Allington Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 September 2023

Note
Income from:
Donations
2
Charitable activities
3
Investments
4
Total income
Expenditure on:
Charitable activities
Total expenditure
5
Net income and net movement in funds
6
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
2023
Total
£
-
50,000
972
50,972
26,140
26,140
24,832
2,939,321
2,964,153
2022
Total
£
30
50,000
146
50,176
21,080
21,080
29,096
2,910,225
2,939,321

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. All income and expenditure was unrestricted in both periods.

6

Allington Trust

Balance sheet

As at 30 September 2023

Note
£
Fixed assets
Programme related investments
9
Current assets
Cash at bank and in hand
88,926
88,926
Liabilities
Creditors: amounts falling due within 1 year
10
(9,473)
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than 1 year
11
Net assets
Funds
Unrestricted funds
General funds
Total charity funds
2023
£
3,289,700
79,453
3,369,153
(405,000)
2,964,153
2,964,153
2,964,153
2022
£
3,289,700
64,034
64,034
(9,413)
54,621
3,344,321
(405,000)
2,939,321
2,939,321
2,939,321

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 23 November 2023 and signed on their behalf by

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Paul Spain - Chair

7

Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Allington Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Rental income is recognised in the statement of financial activities in the year to which it relates. Rental income received in advance is deferred.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

8

Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Grants payable

Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached have been fulfilled. Grants offered subject to conditions at the year end are noted as commitments but are not accrued as expenditure.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, such as audit fees, legal costs and compliance with constitutional and statutory requirements. Support and governance costs have been allocated to charitable activities in full on the basis that the charity did not undertake any fundraising activities during the year.

i) Programme related investments

The charity holds programme related investments in the form of a property, which is held specifically to enable a third party to undertake particular activities which further Allington Trust's charitable purposes. Programme related investments are recognised at fair value at the reporting date. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

m) Concessionary loans

The charity has received a concessionary loan exclusively to further its charitable aims. Concessionary loans are recognised when the commitment is entered into and the relevant loan documentation has been completed. The loans are initially recognised and measured at the amount received, with the carrying amount adjusted in subsequent years to reflect repayments.

9

Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

n) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

o) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Programme related investments

As described in note 1i, programme related investments are held at fair value. The trustees obtained a valuation of the property upon purchase in 2018, and regard this valuation to adequately reflect the fair value on the balance sheet date.

2. Income from donations

Donations
3.
Income from charitable activities
Farm rental
4.
Income from investments
Bank interest
2023
Total
£
-
2023
Total
£
50,000
2023
Total
£
972
2022
Total
£
30
2022
Total
£
50,000
2022
Total
£
146

10

Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

5. Total expenditure

Total expenditure
Charitable
activities
£
£
Accountancy fees
-
1,140
Grants payable to institutions:
Moulsecoomb Forest Garden and Wildlife Project
15,000
-
Havens Community Hub
10,000
-
Sub-total
25,000
1,140
Allocation of support and governance costs
1,140
(1,140)
Total expenditure
26,140
-
Governance costs were £1,140 (2022: £1,080).
There were no grants payable outstanding at 30 September 2023 (2022: none).
Prior year comparative
Charitable
activities
£
£
Accountancy fees
-
1,080
Grants payable to institutions:
Moulsecoomb Forest Garden and Wildlife Project
10,000
-
Havens Community Hub
10,000
-
Sub-total
20,000
1,080
Allocation of support and governance costs
1,080
(1,080)
Total expenditure
21,080
-
Support and
governance
costs
Support and
governance
costs
2023
Total
£
1,140
15,000
10,000
26,140
-
26,140
2022
Total
£
1,080
10,000
10,000
21,080
-
21,080

11

Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

6. Net movement in funds

This is stated after charging:

Trustees' remuneration
Trustees' reimbursed expenses
Independent examiners' remuneration (including VAT):
Independent examination
2023
£
Nil
Nil
1,140
2022
£
Nil
Nil
1,080

7. Staff costs and numbers

The charity did not employ any staff during the year.

The key management personnel of the charitable company comprise the trustees. The total employee benefits of the key management personnel in the current and prior year were £nil.

8. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9. Programme related investments

Fair value at 1 October 2022
Fair value at 30 September 2023
Historical cost:
At 30 September 2023
2023
£
3,289,700
3,289,700
3,289,700
2022
£
3,289,700
3,289,700
3,289,700

Programme related investments comprise the property at Allington Farm. The property is leased to Jamie's Farm, who use the farm to deliver activities which further Allington Trust's charitable objects.

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Allington Trust

Notes to the financial statements

For the year ended 30 September 2023

10. Creditors: amounts due within 1 year

Creditors: amounts due within 1 year
Accruals
Deferred income
2023
£
1,140
8,333
9,473
2022
£
1,080
8,333
9,413

Deferred income relates to farm rental income received in advance.

11. Creditors: amounts due after more than 1 year

Loan 2023
£
405,000
2022
£
405,000

The loan bears no interest and is repayable on demand. The loan has been classified as a creditor due after more than 1 year, as it is not expected to be recalled within the next year.

12. Related party transactions

Paul Spain is a trustee of the charity. Paul has made a loan to the charity, of which £405,000 was outstanding at the year end (2022: £405,000). There were no repayments made in the current year. The loan is interest-free and is repayable on demand. No amounts of the loan are expected to be recalled within the next year.

13. Contingent liabilities

Allington Trust has leased a property to another charity, Jamie's Farm, on a 21 year lease in furtherance of its charitable purposes. In the event of early termination of this lease, Allington Trust are liable to pay compensation for tenants improvements of up to a maximum of £300,000, written down by 5% each year from the date that the improvements are made. At the date of signing the accounts, the maximum amount that would be due is £240,000 (2022: £255,000).

Allington Trust has not recognised a liability in respect of any amounts due, as at the date of signing the accounts there has been no indication that Jamie's Farm intend to terminate the lease agreement. The first contractual break date for the lease is 28 February 2024, inclusive of a 1 year notice period.

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