Registered Charity Number: 1173809
The Bransford Trust
TRUSTEES’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
The Bransford Trust
CONTENTS
| Page | |
|---|---|
| Report of the Trustees | 2 - 6 |
| Report of the Independent Auditors | 7 - 10 |
| Consolidated Statement of Financial Activities | 11 |
| Consolidated and Charity Balance Sheets | 12 |
| Consolidated Cashflow Statement | 13 |
| Consolidated Notes to the Cashflow Statement | 14 |
| Notes to the Financial Statements | 15 - 25 |
1
The Bransford Trust
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022
The trustees present their report and audited consolidated financial statements of the charity and its subsidiary for the year ended 5 April 2022.
References in these financial statements to “the charity” include The Bransford Trust (CIO charity number 1173809) or its predecessor The Bransford Trust (unincorporated entity charity number 1106554) depending on the context.
The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a Charitable Incorporated Organisation (CIO).
Recruitment and appointment of new trustees
New trustees are invited by existing trustees based on personal recommendations.
All new trustees on appointment receive training and an induction to the role of a charity trustee. They are subject to the usual credit and DBS checks if deemed necessary. Decisions are made by majority vote at trustees meetings.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number
1173809
Principal address
C/O Royal Porcelain Works Severn Street Worcester Worcestershire, WR1 2NE
Trustees
Mr C A Kinnear OBE Mrs B Kinnear (resigned 22[nd] April 2022) Mr J A Yelland (resigned 22[nd] April 2022) Mr D Sutcliffe Mrs L Freeman Mr A Freeman Mr A Kinnear Mrs C Kinnear
2
The Bransford Trust
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 (Continued)
Auditors
Richards Sandy Audit Services Limited Thorneloe House 25 Barbourne Road Worcester, WR1 1RU
Investment Managers
Canaccord Genuity Wealth Management 41 Lothbury London, EC2R 7AE
Bankers
Handelsbanken Unit 4, The Triangle Wildwood Drive Worcester, WR5 2QX
Solicitors Trethowans LLP 1 London Road Salisbury Wiltshire, SP1 3HP
Accountants
PSG Bowdens LLP 100 High Street Evesham, WR11 4EU
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charitable objects of The Bransford Trust include relief of poverty, relief of sickness, advancement of education, promotion of the arts, culture and heritage, advancement in the lives of young people and other charitable purposes for the public benefit.
The main activities undertaken to achieve these purposes are providing support for charitable initiatives through grants and the use of facilities at Royal Porcelain Works, which is owned by the charity.
Public benefit
The trustees confirm that they have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance issued by the Charity Commission on public benefit when deciding on the charity's activities.
Organisation
Royal Porcelain Works Limited (company registration number 08629931) is a wholly owned trading subsidiary of The Bransford Trust.
Fundraising activities
The Bransford Trust does not engage in any fundraising activities (as defined by section 162A of Charities Act 2011).
3
The Bransford Trust
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 (Continued)
ACHIEVEMENT AND PERFORMANCE
Grants totalling £41,200 (2021 - £4,250) were awarded in the year and a further £25,000 (2021 - £45,000) was paid from previous year’s awards. From previous year’s awards, £12,500 (2021 - £41,500) remains unpaid at the year end. A full schedule of grants is given in note 7 on page 20.
As a result of the uncertainty cause by Covid-19, the war in Ukraine and the cost of living crisis we felt we needed to be cautious with our donations and charity work over the period. We believe that we are now in a much better position to increase the amount available to be donated to worthy causes.
During the year the trustees have implement a plan to deal with certain historical issues relating to the development of the site as the Royal Porcelain Works, including addressing certain snagging type issues. New commercial tenants have been found for several of the commercial units of the Royal Porcelain Works and as a result rental income increased significantly towards the end of the year.
FINANCIAL REVIEW
The results for the year and financial position of the charity are as shown in the annexed financial statements. The trustees consider the state of affairs of the Trust to be satisfactory.
Investment income is £659,514 (2021 - £517,771) and the costs of raising funds, including management of listed investments, are £176,250 (2021 - £143,780). Net income for the year amounted to £231,000 (2021 - £158,784), with donations and investment income being spent on charitable activities and investment management. No donations have been received into the Trust this year (2021 - £3,000). Expenditure on charitable activities is £310,445 (2021 - £290,288), the increase being due to grants approved.
Net realised gains on investment assets were £70,187 (2021 – net realised gains of £336,970) and net unrealised losses on listed investments and properties were £2,084,963 (2021 – net unrealised gains of £1,317,980). The value of the listed investment portfolio has slightly fallen across the year due to the impact of global events. The residential property portfolio was revalued during the year and has increased in value by £158,500 in addition to the £2,500 realised gain on sale of one of the properties, and the commercial investment property was revalued during the year and has reduced in value by £2,228,828 having previously been held at cost.
The principal funding source is income from the charity’s investments, along with the trading activities of Royal Porcelain Works Limited and some periodic donations.
The net assets at 5 April 2022 were £20,609,057 (2021 - £22,392,833).
RESERVES POLICY
The charity holds investments totalling £16,914,870 (2021 - £19,732,880) for the purpose of generating investment income used to fund the activities of the charity. Because of the volatility in the value of investments the charity has not set formal limits on the amounts to be held in such investments. In addition, the charity holds freehold property and related assets totalling £3,259,732 (2021 - £3,331,560) which the charity rents to both local charities and other organisations undertaking activities in line with the aims of the charity.
4
The Bransford Trust
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 (Continued)
Free reserves excluding amounts held in fixed assets and also excluding concessionary loans relating to investment property held for capital appreciation of £550,000 (2021 - £1,075,000) was £984,455 (2021 - £403,393). The charity reduced its grant making activities during the year due to Covid-19, the war in Ukraine and the cost of living crisis, causing significant uncertainty as to the expected performance of investment holdings. The charity will look to increase the level of grants issued in the next financial year.
The trustees consider the reserves of the charity to be satisfactory.
FUTURE DEVELOPMENTS
The trustees regularly review the strategy and aims of the grant procedures and will continue making grants to causes with particular emphasis on education, music, the arts and the welfare and benefit of sick and young people.
INVESTMENT POLICY
The Bransford Trust has no restricted funds and a total return approach is used for the management of its investment portfolio.
The trustees are required to use income before they use capital and have appointed Canaccord Genuity Wealth Management as investment managers. They are tasked with preserving the Trust’s capital investments and producing an annual distributable income of at least 2% above inflation derived from investment income and gains excluding directly held property. They manage a mixed portfolio of equities, fixed interest and corporate bonds and cash.
Canaccord Genuity Wealth Management provide quarterly updates and an annual report for the trustees and attend the full trustees’ meetings to present details of the investment performance, including an overview of the general economic climate. In addition, they meet more frequently with the delegated sub-committees of trustees as required. The appointment as investment managers to the Trust is reconfirmed by the trustees annually.
The trustees engage local property experts Morgan Aps and GJS Dillon to manage the residential property portfolio and the commercial property portfolio on their behalf.
All income is generated from assets which are unrestricted. Sufficient assets are held in quickly realisable investments to cover any unexpected drop in income or cash requirement. The investment policy has been achieved in the year.
GRANT MAKING POLICY
The trustees meet twice a year to review the financial performance of the Trust and consider requests for grants. They delegate some functions to a sub-committee of at least two trustees who meet more regularly to review the Trust investments and administration. Additional "fast track" awards and grants up to £2,000 each may be approved by each trustee between trustee meetings. These awards must be ratified at a subsequent full trustee meeting. These awards and grants are limited so that no trustee may approve more than £6,000 per annum by means of this "fast track" process.
The trustees regularly review the strategy and aims of the grant procedures and will continue making grants to causes with particular emphasis on education, music, the arts and the welfare and benefit of sick and young people.
5
The Bransford Trust
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BRANSFORD TRUST
Opinion
We have audited the financial statements of The Bransford Trust and its subsidiary for the year ended 5 April 2022 which comprise the consolidated Statement of Financial Activities, the consolidated and charity Balance Sheets, the consolidated Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and parent charity’s affairs as at 5 April 2022, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the Charities Act 2011.
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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
7
The Bransford Trust
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BRANSFORD TRUST (Continued)
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we required for our audit.
Responsibilities of the Trustees
As explained more fully in the Trustees’ Responsibilities Statement (set out on page 6), the trustees are responsible for the preparation of financial statements that 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.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
8
The Bransford Trust
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BRANSFORD TRUST (Continued)
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
-
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the charity operates in and how the charity is complying with the legal and regulatory framework;
-
inquired of management, and those charged with governance, about their own identification and assessment of the risks and irregularities, including known actual, suspected or alleged instances of fraud; and
-
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Companies Act 2006 (and related legislation), the Charities Act 2011 (and related legislation) and laws and regulation regarding VAT, including partial VAT exemptions.
We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures, reviewing the calculations of VAT returns (including ensuring that only input VAT on qualifying expenditure has been claimed) and sample testing of monthly payroll records for the calculation of gross wages, payroll taxes and pension costs.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
9
The Bransford Trust
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022
| Notes INCOME FROM: Donations 2 Other trading activities 3 Investments 4 Total EXPENDITURE ON: Raising funds 5 Charitable activities 6 Total NET INCOME Net gains/(losses) on investment assets Listed investments 12 Investment property 12 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2022 Total unrestricted funds £ - 58,181 659,514 717,695 176,250 310,445 486,695 231,000 53,052 (2,067,828) (1,783,776) 22,392,833 20,609,057 |
2021 Total unrestricted funds £ 3,000 72,081 517,771 |
|---|---|---|
| 592,852 | ||
| 143,780 290,288 |
||
| 434,068 | ||
| 158,784 1,652,450 2,500 |
||
| 1,813,734 20,579,099 |
||
| 22,392,833 |
11
The |
Group |
The Charity |
The Charity |
||
|---|---|---|---|---|---|
Notes |
2022 |
2021 |
2022 |
2021 |
|
£ |
£ |
£ |
£ |
||
FIXED ASSETS |
|||||
Tangible assets |
11 |
3,259,732 |
3,331,560 |
3,259,732 |
3,331,560 |
Investments |
12 |
16,914,870 |
19,732,880 |
16,977,871 |
19,795,881 |
20,174,602 |
23,064,440 |
20,237,603 |
23,127,441 |
||
CURRENT ASSETS |
|||||
Stock |
15 |
56,977 |
56,977 |
- |
|
Debtors |
16 |
71,557 |
81,626 |
99,648 |
101,351 |
Cash at bank and in hand |
958,459 |
367,373 |
909,607 |
337,595 |
|
1,086,993 |
505,976 |
1,009,255 |
438,946 |
||
CREDITORS: amounts falling due within |
|||||
one year |
17 |
(652,538) |
(1,165,083) |
(634,053) |
(1,161,050) |
NET CURRENT ASSETS/(LIABILITIES) |
434,455 |
(659,107) |
375,202 |
(722,104) |
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
20,609,057 |
22,405,333 |
20,612,805 |
22,405,337 |
|
CREDITORS: amounts falling due after |
|||||
more than one year |
18 |
(12,500) |
- |
(12,500) |
|
NET ASSETS |
20,609,057 |
22,392,833 |
20,612,805 |
22,392,837 |
|
FUNDS |
|||||
Unrestricted income funds |
20,609,057 |
22,392,833 |
20,612,805 |
22,392,837 |
|
TOTAL FUNDS |
20,609,057 |
22,392,833 |
20,612,805 |
22,392,837 |
The Bransford Trust
CASHFLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2022
| Notes to the cash flow statement Cashflows from operating activities: Net cash provided by/(used in) operating activities 1 Cashflows from investing activities: Income from listed investments Proceeds from sales of investments Purchase of investments Net cash provided by/(used in) investing activities Cashflows from financing activities: Concessionary loans repaid in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 2 Cash and cash equivalents at the end of the year 2 |
2022 £ (190,279) 503,131 3,304,934 (2,922,731) 885,334 (525,000) (525,000) 170,055 1,024,311 1,194,366 |
2021 £ (321,082) |
|---|---|---|
| 368,697 3,219,142 (2,792,436) |
||
| 795,403 | ||
| (625,000) | ||
| (625,000) | ||
| (150,679) | ||
| 1,174,990 | ||
| 1,024,311 |
13
The Bransford Trust
NOTES TO THE CASHFLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2022
1 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the year (as per the statement of financial activities) Adjustments for: Depreciation charge Listed investment income (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities 2 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash at bank and in hand Cash investments Total cash and cash equivalents 3 ANALYSIS OF CHANGES IN NET DEBT As at 5 April 2021 £ Cash at bank and in hand 367,373 Cash investments 656,938 1,024,311 Concessionary loans (1,075,000) (50,689) |
2022 £ 231,000 71,828 (503,131) 10,069 (45) (190,279) 2022 £ 958,459 235,907 1,194,366 Cash flows in year £ 591,086 (421,031) 170,055 525,000 695,055 |
2021 £ 158,784 71,828 (368,697) (48,943) (134,054) |
|---|---|---|
| (321,082) | ||
| 2021 £ 367,373 656,938 |
||
| 1,024,311 | ||
| As at 5 April 2022 £ 958,459 235,907 |
||
| 1,194,366 (550,000) |
||
| 644,366 |
14
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 ACCOUNTING POLICIES
Basis of preparation
The Bransford Trust meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements are prepared on a going concern basis under the historical cost convention, except for listed investments and investment properties which are measured at fair value. The financial statements are presented in sterling which is the functional currency of the charity rounded to the nearest pound.
Consolidation
The consolidated financial statements incorporate those of The Bransford Trust and its sole subsidiary Royal Porcelain Works Limited. All intra-group transactions, balances and unrealised gains on transactions between the Bransford Trust and Royal Porcelain Works Limited have been eliminated on consolidation. Any unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the relating asset transferred. The accounting policies of Royal Porcelain Works Limited are not considered different from those of the consolidated financial statements. Royal Porcelain Works Limited has a financial year end of 31 March 2022 and the financial results of Royal Porcelain Works Limited are adjusted for the effects of any significant transactions or events that occur between 31 March 2022 and 5 April 2022.
Exemption from preparing individual charity cash flow statement
As permitted by the exemptions within FRS 102 and Charities SORP (FRS 102), a separate cash flow statement for the charity’s individual results has not been prepared.
Income
Income, including grants receivable and donations, is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Rents receivable are recognised on a straight-line basis over the term of the lease.
Interest income (including interest receivable on fixed interest listed investment bonds) is recognised for all interest-bearing instruments on the effective interest rate basis. Dividends are recognised in the income statement when they are declared.
Donated goods
If at receipt it is practical to assess the fair value of donated goods, then donated goods are recognised in income at fair value at time of receipt. Where it is impractical to assess the fair value of donated goods, they are not recognised in the financial statements until they are sold.
15
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
Expenditure
Expenditure is included on an accruals basis. Liabilities are included in the accounts as soon as recognised.
The cost of raising funds includes investment management costs.
Charitable activities costs include grant funding and support costs which are all allocated to charitable activities as this is the predominant activity. Grants payable are charged in the year when 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 attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
Governance costs comprise the costs of internal and external audit, any legal advice for the trustees, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.
Grant making policy
The trustees meet twice a year to review the financial performance of the Trust and consider requests for grants. They delegate some functions to a sub-committee of at least two trustees who meet more regularly to review the Trust investments and administration. Additional "fast track" awards and grants up to £2,000 each may be approved by each trustee between trustee meetings. These awards must be ratified at a subsequent full trustee meeting. These awards and grants are limited so that no trustee may approve more than £6,000 per annum by means of this "fast track" process.
The trustees regularly review the strategy and aims of the grant procedures and will continue making grants to causes with particular emphasis on education, music, the arts and the welfare and benefit of sick and young people.
Tangible fixed assets
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
| Freehold buildings | 2% on cost |
|---|---|
| Freehold land | not depreciated |
| Fixtures, fittings & equipment | 10% on cost |
In the individual accounts of The Bransford Trust, freehold land and buildings rented to its subsidiary Royal Porcelain Works Limited, which Royal Porcelain Works Limited uses for trading purposes (rather than renting out to third parties under operating leases), are classified as tangible fixed assets.
Investments
Quoted investments are stated at market value and investment property is revalued annually. Increases/(decreases) on revaluations are transferred to/(from) the Statement of Financial Activities.
Investment property is valued annually either by an independent professional valuer or by the trustees on an open market basis.
16
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
Stock
Stock is measured at the lower of cost (or valuation for donated stock) and net realisable value.
Financial instruments
The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to contractual provisions of the instrument. Financial assets are offset, with the net amounts presented in the accounts where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction.
Concessionary loans
Concessionary loan made to or received from third parties on which no interest is to be charged are measured at historical cost.
Government grants
Government grants are recognised under the performance model. Grants that does not impose specified future performance-related conditions are recognised in income when the grant proceeds are received or receivable. Grants that imposes specified future performance-related conditions are recognised in income only when the performance-related conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability.
Defined contribution pension schemes
The Bransford Trust operates a defined contribution pension scheme. Contributions payable to The Bransford Trust's pension scheme are charged in the period to which they relate.
Accumulated funds
Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
17
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
Significant judgements and key sources of estimation uncertainty
The areas where accounting policies of The Bransford Trust cause significant estimates or judgements in their application are:
-
the point of recognition of grants issued (see note 7); and
-
the depreciation policies applied to tangible fixed assets (see note 11).
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
2 DONATIONS INCOME
| Donations from C A & B Kinnear 3 OTHER TRADING ACTIVITIES INCOME Hall and room hire Grants Other trading income 4 INVESTMENT INCOME Rent and service charges from investment properties Income from listed investments Bank interest |
2022 £ - - 2022 £ 42,960 10,731 4,490 58,181 2022 £ 156,383 503,131 - 659,514 |
2021 £ 3,000 |
|
|---|---|---|---|
| 3,000 | |||
| 2021 £ 1,032 68,064 2,985 72,081 2021 £ 148,393 368,697 681 517,771 |
|||
18
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
| 5 RAISING FUNDS EXPENDITURE Direct costs of trading subsidiary Investment management costs Property management costs Property repairs 6 CHARITABLE ACTIVITIES EXPENDITURE Royal Porcelain Works: Professional fees Wages and salaries Marketing Site management Depreciation Grants approved in year (note 7) Support costs relating to Royal Porcelain Works: Legal & professional fees Administration costs Bank charges Governance costs: Auditors' remuneration re external scrutiny Accounts preparation |
2022 £ 37,447 105,850 25,475 7,478 176,250 2022 £ 36,895 62,245 1,694 56,040 71,828 228,702 41,200 20,143 13,256 486 4,000 2,658 310,445 |
2021 £ 21,841 112,528 4,694 4,717 |
|---|---|---|
| 143,780 | ||
| 2021 £ 31,938 57,656 2,294 56,587 71,828 220,303 4,250 46,267 12,451 367 4,000 2,650 290,288 |
19
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
7 GRANTS
| 7 GRANTS |
|
|---|---|
| Worcester Live Worcester Cathedral Malvern Youth Community Trust (The Cube) Collar & Tie County Air Ambulance Dyson Perrins Museum Severn Valley Railway Small donations < £5,000 |
Commitments at 5/4/21 Approved in the year Paid in the year Commitments at 5/4/22 Due within 1 year Due after 1 year £ £ £ £ £ £ - 6,200 (6,200) - - - 37,500 (25,000) 12,500 12,500 - - 5,000 (5,000) - - - - 15,000 (15,000) - - - 4,000 (4,000) - - - - - 5,000 (5,000) - - - - 5,000 (5,000) - - - - 9,000 (9,000) - - - |
| 41,500 41,200 (70,200) 12,500 12,500 - |
8 NET INCOME/(EXPENDITURE)
This is stated after charging/(crediting);
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Depreciation | 71,828 | 71,828 |
| Auditors remuneration | 4,000 | 4,000 |
9 TRUSTEES REMUNERATION, BENEFITS AND EXPENSES
No trustees received any remuneration or other benefits or expenses for the year ended 5 April 2022 or the year ended 5 April 2021.
20
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
10 STAFF COSTS
| Gross wages Social security costs Employer’s pension costs (defined contribution schemes) |
2022 £ 58,640 1,855 1,750 62,245 |
2021 £ 68,653 1,235 1,781 |
|---|---|---|
| 71,669 |
The average number of employees for the year was 2 (2021 – 2).
No employee received remuneration of £60,000 or above for the year ended 5 April 2022 or the year ended 5 April 2021.
11 TANGIBLE FIXED ASSETS
The group and the charity
| Cost: At 6 April 2021 Additions At 5 April 2022 Depreciation: At 6 April 2021 Charge At 5 April 2022 Net book value At 5 April 2022 At 5 April 2021 |
Freehold land & buildings Fixtures, fittings and equipment Total £ £ £ 3,433,795 88,319 3,522,114 - - - |
|---|---|
| 3,433,795 88,319 3,522,114 |
|
| 173,239 17,315 190,554 62,996 8,832 71,828 |
|
| 236,235 26,147 262,382 |
|
| 3,197,560 62,172 3,259,732 |
|
| 3,260,556 71,004 3,331,560 |
Included in freehold land and buildings of the charity is property rented to Royal Porcelain Works Limited, the charity’s subsidiary, with net book value of £3,197,560 (2021 - £3,260,556).
21
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
12 INVESTMENTS The Group
| MARKET VALUE At 6 April 2021 Additions Disposals Revaluations At 5 April 2022 The investments are held: Fixed Interest Equities Alternative Investments Portfolio Cash Cash Investments Investment Property The Charity MARKET VALUE At 6 April 2021 Additions Disposals Revaluations At 5 April 2022 The investments are held: Fixed Interest Equities Alternative Investments Portfolio Cash Cash Investments Investment Property Subsidiary undertakings |
Listed Investments £ 12,778,116 2,917,731 (2,779,934) 53,052 |
Listed Investments £ 12,778,116 2,917,731 (2,779,934) 53,052 |
Listed Investments £ 12,778,114 2,917,731 (2,779,934) 53,052 |
Cash £ 656,938 - (421,031) - |
Cash £ 656,938 - (421,031) - |
Freehold Property £ 6,297,828 5,000 (525,000) (2,067,828) |
Freehold Property £ 6,297,828 5,000 (525,000) (2,067,828) |
Freehold Property £ 6,297,828 5,000 (525,000) (2,067,828) |
Total £ 19,732,880 2,922,731 (3,725,965) (2,014,776) |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12,968,963 | 235,907 | 3,710,000 | 16,914,870 | |||||||||
| Quoted Investments £ 4,534,999 5,708,559 2,725,405 235,907 - - |
Investment Property £ - - - - - 3,710,000 |
2022 Total £ 4,534,999 5,708,559 2,725,405 235,907 - 3,710,000 |
2021 Total £ 5,201,896 5,217,000 2,359,218 470,805 186,133 6,297,828 |
|||||||||
| 13,204,870 | 3,710,000 | 16,914,870 |
19,732,880 | |||||||||
| Cash £ 656,936 (421,031) - - |
Freehold Property £ 6,297,828 5,000 (525,000) (2,067,828) |
Subsidiary Undertakings £ 63,001 - - - |
Total £ 19,795,881 2,501,700 (3,304,934) (2,014,776) |
|||||||||
| 12,968,963 | 235,907 | 3,710,000 | 63,001 | 16,977,871 | ||||||||
| Quoted Investments £ 4,534,999 5,708,559 2,725,405 235,907 - - - |
Investment Property £ - - - - - 3,710,000 - |
Subsidiary Undertakings £ - - - - - - 63,001 |
2022 Total £ 4,534,999 5,708,559 2,725,405 235,907 - 3,710,000 63,001 |
|||||||||
| 13,204,870 | 3,710,000 | 63,001 |
22
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
INVESTMENT PROPERTY VALUATION
An independent professional valuation of the residential investment properties was completed by Morgan Aps Sales & Lettings LLP in January 2022, which the trustees considered to not be significantly different from the year end valuation. An independent professional valuation of the commercial investment properties was completed by GJS Dillion with a valuation date of 4 April 2022.
13 SUBSIDIARY UNDERTAKING
The Bransford Trust has a wholly owned subsidiary, Royal Porcelain Works Limited. Available profits are gift aided to the charity. The summary financial performance of the subsidiary is:
| Turnover Cost of sales Gross profit Administrative expenses (Loss)/profit for the financial year The aggregate of the assets and liabilities was: Assets Liabilities Net assets |
2022 £ 116,655 (56,964) 59,691 (63,434) (3,743) 158,014 (98,764) 59,250 |
2021 £ 139,404 (31,909) |
|---|---|---|
| 107,495 (42,602) |
||
| 64,893 | ||
| 155,478 (92,485) |
||
| 62,993 |
14 PARENT CHARITY
The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary. The summary financial performance of the charity alone is:
| Gross income Expenditure Net income/(expenditure) Net gains/(losses) on investments Total funds brought forward Total funds carried forward |
2022 £ 634,634 (399,890) 234,744 (2,014,776) 22,392,837 20,612,805 |
2021 £ 490,019 (396,128) |
|---|---|---|
| 93,891 1,654,950 20,643,996 |
||
| 22,392,837 |
15 STOCK
| 15 STOCK |
||||
|---|---|---|---|---|
| Group | Charity | |||
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Goods held for resale | 56,977 | 56,977 | - | - |
23
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
16 DEBTORS
| Trade debtors Other debtors Amounts owed by Royal Porcelain Works Ltd VAT |
Group 2022 2021 £ £ 59,817 20,748 11,740 55,126 - - - 5,752 71,557 81,626 |
Charity 2022 2021 £ £ 30,074 4,275 1,000 9,626 68,574 82,969 - 4,481 99,648 101,351 |
Charity 2022 2021 £ £ 30,074 4,275 1,000 9,626 68,574 82,969 - 4,481 99,648 101,351 |
|---|---|---|---|
| 101,351 |
17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Concessionary loans – see note 21 Trade creditors Grants payable – see note 7 Other creditors VAT Accruals Deferred income |
Group 2022 2021 £ £ 550,000 1,075,000 14,920 22,322 12,500 29,000 930 1,659 3,062 - 41,267 35,351 29,859 1,751 652,538 1,165,083 |
Charity 2022 2021 £ £ 550,000 1,075,000 5,333 12,834 12,500 29,000 929 1,659 7,458 - 39,627 34,056 18,206 8,501 634,053 1,161,050 |
Charity 2022 2021 £ £ 550,000 1,075,000 5,333 12,834 12,500 29,000 929 1,659 7,458 - 39,627 34,056 18,206 8,501 634,053 1,161,050 |
|---|---|---|---|
| 1,161,050 |
Deferred income
Deferred income relates to investment property rental income received that relates to the next financial year.
18 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Grants payable – see note 7 | Group 2022 2021 £ £ - 12,500 - 12,500 |
Charity 2022 2021 £ £ - 12,500 - 12,500 |
Charity 2022 2021 £ £ - 12,500 - 12,500 |
|---|---|---|---|
| 12,500 |
24
The Bransford Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
19 OPERATING LEASE COMMITMENTS
At the year end The Bransford Trust had minimum lease income under non-cancellable operating leases fall due as follows:
| Group | Charity | |||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Within one year | 95,658 | 58,800 | 48,075 | 33,800 |
| Between one and five years | 121,881 | 76,158 | 75,131 | 61,575 |
| After five years | - | - | - | - |
| 217,539 | 134,958 | 123,206 | 95,375 |
20 CONTROL
The charity is under the control of its trustees.
21 RELATED PARTY TRANSACTIONS
At the year end, trustees Mr C A Kinnear OBE and Mrs B Kinnear were owed interest free concessionary loans amounting to £550,000 (2021 - £1,075,000) which are to be repaid once certain investment properties have been sold.
During the year The Bransford Trust purchased insurance under normal market conditions totalling £13,739 (2021 - £14,568) from Sutcliffe Insurance Brokers Limited, a company in which D Sutcliffe is a director and shareholder of its parent company.
25