Charity No. 1175627 The Areti Charitable Trust Trustees, Annual Report and Unaudited Financial Statements For The Year Ended 31 December 2021 MOORE & SMALLEY
THE ARETI CHARITABLE TRUST CONTENTS Page Trustees, annual report Independent examiner's report lo the Iruslees Statement of financial activities Balance sheet Cash flow slalemenl Notes lo the accounts 10
THE ARETI CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Iruslees have pleasure in presenting their report and the financial slalements of the Charity for the year ended 31 December 2021. Reference and administrative details Registered charity name The Areti Charitable Trust Charity registration number 1175627 Registered office CIO Joseph A Jones & Co 6 Fenton Street Lancaster LA1 1TE The trustees The trustees who served the charity during the period were as follows.. P A Clarke R A Follows Solicitors Joseph A Jones & Co 6 Fenton Street Lancaster LA1 1TE Independent examiner MHA Moore and Smalley Priory Close Sl Mary's Gate Lancaster Lancashire LA1 1XB Investment Managers Garslang Independent Financial Services The Resource Centre Bridge Sl Garslang Preston PR3 1YB Lunesdale Investment Managers Unil 3 Strands Barn strands Farm Lane Hornby Lancaster LA2 8JF
THE ARETI CHARITABLE TRUST TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Background to the Charity The Areli Charitable Trust I'the Charity") was created by Trust Deed on 26 August 2015, as amended by Deed dated 31 October 2017, and registered with the Charity Commission on 8 November 2017 with Charity Number 1175627. The principal object of The Areli Charitable Trust is lo make grants in order to give disadvantaged children and young people opportunities lo experience and learn more about the natural word. Charitable objectives The objectives of the Charity are to advance in life and help young people, especially bul not exclusively those living in the administrative area covered by Lancaster City Council, through.. al the provision andlor facililalion of recreational leisure a¢livilies provided in the interests of social welfare designed to improve their conditions of life, especially bul not exclusively those who have need by reason of their infirmity or disability, poverty or social or economic circumstances with a view lo improving the conditions of life for such persons.. bl the provision andlor facililalion of support and activities which develop their skills, capacities and capabilities lo enable them to participate in society as mature and responsible individuals.. cl advancement of their education in the conservation. protection and improvement of the physical and natural environment. dl The Charity's strategy to achieving its objectives is lo invest ils in¢ome lo generate a return that can allow the Trustees lo donate to various charitable causes al their dis¢relion in accordance with the charitable objects. The Trustees will measure the success of the Charity by quantifying the sum of donations made to these causes. This is considered to be both the Charity's short term and long-term objective. Publlc beneflt The Charities Act 2011 requires charities to report on the public benefit of their activities. The Trustees have had regard lo the Charity Commission's gLJidance on public benefit and believe that an appreciation of the Charity's public benefi't can be obtained from the review of ils achievements and performance. Structure, governance and management The Charity is governed by a Trust Deed dated 26 August 2015 and amended by Deed dated 31 October 2017, under the terms of which the Trustees operate. Its charity registration number is 1175627. The activity of the Charity is determined by the Trustees and facilitated with the assistance of Joseph A Jones Solicitors. Lancaster. All decisions are made by the two Trustees. The Charity has no volunteers other than ils Trustees. The Charity pays no remuneration lo its Trustees and has no paid employees. There are no other volunteers lo the Charity other than ils Trustees. Appointment of new Trustees would be al the discretion of the existing Board and there would be no remuneration for such a role. Investmènt policy The investments held by the Charity and their performance is reviewed at each Trustee meeting with investment managers who may be instructed lo carry out any recommended changes as to the inveslmènl instruments. The managers are instructed lo keep a balanced portfolio to spread the risk and maximise capital growth wilhoutjeopardising revenue income.
THE ARETI CHARITABLE TRUST TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Risk Management The Trustees Consider and assess on an on-going basis the major risks lo which the Charity may be exposed. The principal risk is considered lo bè exposure lo markets with the investment portfolio held. The Trustees have delegated fund management to Garslang Independent Financial Services who are expèrienced in this field which is considered to mitigate the risks associated with such investments lo an appropriate level. The performance of the investments is regularly reviewed through Trustee Board meetings. Achievements and performance The Iruslees are pleased to present 8 Posltive picture of the work of the Trust in 2021, despite the disruptions and uncertainties of the continuing pandemic. Some ol the activities supported by the Trust had been funded in 2020 bul postponed until 2021 and others were new. The RSPB al Leighlon Moss was admirably proactive in gelling children out into the natural world again after the straight jacket of the previous year.. in the last weeks of the summer term over 300 primary school pupils visited the reserve for a day of educational activities. It is heartening for the Trust lo support the enthusiasm and knowledge of others for the benefit of future generations and the world we all live in, and we are glad that applications al the end of 2021 were at a more 'norm21' level. Financial review and reserves policy Al the end of the financial period the Charity had total funds of £5,153,130 12020.. £4,818,965). The nel movement in funds of £334,165 was after nel investment surpluses of £330,292. Income was generated from investments of £91,847 and £49,378 has been donated lo good causes. The Charity has incurred £38.596 in other support costs in the period. At the period end dale the Charity held £862,815 12020.. £926,052) in cash funds and £4,291,205 (2020.. £3,892,816) within ils investment Portfolio, both expected lo generate future income for the Charity. There are no funds in deficit and no going concern uncertainties. The Charity has no formal reserves policy. The Trustees intend to hold investments as capital and the proceeds of returns from the investments will then be spent through charitable donations, as well as funding the operating costs of the Charity. The nature of the Charity's operations means that a reserves policy is not necessary. Plans for future periods The Charity intends lo donate to further charitable causes in accordance with the objectives of the Charity. There is not expected to be a material change in direction of the Charity in the short or medium term.
THE ARETI CHARITABLE TRUST TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees. responsibilities in relation to the financial statements The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustees lo prepare financial statements for each financial period 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 peiiod. In preparing these financial statements, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly.. observe the methods and principles in the Charities SORP IFRS1021', make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial slalements., prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the Charity will conlinLJe in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financi21 position of the Charity and enable them lo ensure that the financial slalemen15 comply with the Charity's governing document, the Charities Act 2011, the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}, and UK Generally Accepted Accounting Practice. The Trustees, Report was approved on and was signed on behalf of the Trustee5 by.. P A Clarke Trustee R A Follows Trustee
THE ARETI CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ARETI CHARITABLE TRUST FOR THE YEAR ENDED 31 DECEMBER 2021 I report lo the charily Iruslees on my examination of the accounts of the charity for the year ended 31 December 2021 which are set out on pages 7 10 17. Responsibilitiès and basis of report As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 I'lhe Acl'l. I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the 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 lo believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the Act., or the accounts do not accord with those records., or the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities {Accounls and Reports} Regulations 2008 other than any requirement that the accounts give a 'true and fair view, which is not a maller considered as part of an independent examination. I have no concerns and have come across no other mallers 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, Jenny Mccabe FCA Independent Examiner MHA Moore and Smalley Chartered Accountants Priory Close Sl Mary's Gate Lancaster LA1 1XB 0670512022
THE ARETI CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Unroaricted Restricted Total funds Total funds funds funds 2021 2020 In¢om8 from: InStMentS Other 91,847 91,847 85.692 75 Total 91,847 91,847 85,767 Expenditure on.. Charitable aclimlies 87,974 87,974 86,894 Total 87,974 87,974 86,894 Net income before other recognised gains 3.873 3,873 11,1271 other recognised gains Realised gainlllossl on disposals of InStmentS Unrealised gain on rewdlualion of iniEslmenl8 45.121 45,121 {10,0391 285.171 285,171 154,302 Net movement in funds 334.165 334,165 143, 136 Reconciliation of funds- Total funds brought forward 4,8q8,965 4,818,965 4,675,829 Totsl funds carried fOard 13 5,153,130 5,153,130 4,818,965 The notes on pages 10 10 17 form part of these financial statements.
THE ARETI CHARITABLE TRUST BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2020 Flxed assets InstmentS 10 4,291,205 3.892.816 4,291.205 3,892,816 Currant assets Debtors Cash al bank and in hand 11 1,450 862,815 1,897 926,052 864,265 927,949 Creditors: amounts falling due within one year 12 12,3401 11,8001 Net current assets 861.925 926.149 Total assets less current liabilitles 5,153.130 4,818.965 Net assets S,153.130 4,818,965 Funds- Reslricled funds Unrestricted funds 13 13 5.153,130 4.818,965 Total funds 5.153,130 4.818,965 These accounts were approved by the Trustees and aulhorised for issue on the on their behalf by.. and are signed P A Clarke Trustee R A Follows Trustee The notes on pages 10 10 17 form part of these financial stalemenls.
THE ARETI CHARITABLE TRUST CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2021 2021 2020 Cash generated in operating activities {86.9871 185,4351 Ca8hflows from inv&stlng aGtivitle$ Instment in¢ome Pur¢hase of fixed asset InStmentS Receipts from sale of i$1mentS 91,847 85,692 {481.7131 1134,3311 346,635 151,167 Cash (used iny provlded by investlng activities {130.2181 17,093 Increase in cash and cash equivalents in the year {130.2181 17,093 Cash and ¢ash eqUIlentS brought forward 1,090.027 1,072,934 Cash and cash equivalents carried forward 959.809 1,090,027 Reconclllatlon of ngt movement In funds to net cashflow from operating activities Nel m0ment in funds InstMent inGome re¢ei*d Decrease in debtors Increase in creditors 3,873 191,8471 447 540 {1,127} {85,692} 1,384 Net cash Iu8èd Inll generatèd In operating activities 186,987} {85,435) Components of cash and cash oquivalents Cash al bank and in hand Cash held with inStMent managers 862,815 96,994 926,052 163.975 959,809 1.090,027 The notes on pages 10 to 17 form part of these financial slatemenls.
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Legal form The Areli Charitable Trust is a registered charity with charity number 1175627 established under a Trust Deed dated 26 August 2015 and amended 31 October 2017. The registered office of the charity, the nature of its operations and ils principal activities are all detailed in the Trustees, report within these financial slatemenls. The Charity meets the definition of a public benefit entity under FRS102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (Charities SORP IFRS 102}I, and the Gharilies Act 2011. The financial slalemenls are prepared in sterling, which is the functional currency of the charity. Monetary amounts are rounded lo the nearest £. The financial slalemenls have been prepared on a going concern basis under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied lo all periods presented, unless otherwise slated. Going concern The Iruslees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Iruslees have considered the position of the charity and believe that it holds sufficient reserves to continue in operation for al least 12 months from approval of the accounts, therefore the going concern basis of accounts preparation is appropriate. Income Investment income is earned through holding assets for investment purposes, and through bank interest. It includes dividends and interest and is included when the amounts are received andlor earned by the Charity. Expenditure All expenditure is accounted for on an accruals basis in the expense categories required by the SORP. Expenditure is recognised where there is a legal or constructive obligation lo makè payments lo third parties, il is probable that the selllemenl will be required, and the amount of the obligation can be measured reliably. Costs are further allocated between the activities undertaken on a basis consistent with the use of the resources. Expenditure includes irrecoverable VAT. Charitable activities expenditure includes costs incurred in the delivery of the charity's activities and services. 11 includes professional fees in maintaining the investment portfolio. The main expenditure for the Charity is throLJgh making donations lo good causes al the discretion of the Trustees, in accordance with the Trust Deed. -10-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl Investments Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Investments are subsequently slated at fair value of the shares which are publicly traded. The SOFA included the nel gains and losses arising on revaluations and disposals throughout the period. Cash and cash equlvalents Cash is a basic financial asset and includes cash and deposits held on call and on deposit with banks. Fund accounting Unr8Stricf8d funds - General funds are available for use al the discretion of the Trustees in furtherance of the genera1 objectives of the charity. Designated funds purposes. Designated funds are unrestricted funds sel aside by the Trustees for particular Restricted funds - Restricted funds arise where there is a donor-imposed reslriclion on the use of the funds. or the funds have arisen in response to an appeal for a specified purpose. Taxation HM Revenue & Customs considers The Areli Charitable Trust to be a charity and therefore they are entitled lo exemption from lax afforded by Sections 478-489 of the Corporation Taxes Act 2010 to the extent that income is applied exclusively for charitable purposes. Financial instruments Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party lo conlraclual provisions of the instrument. Basic financial assets are initially measured al transaction price and are subsequently carried al amortised cost. Financial assets are assessed for indicators of impairment al each reporting end dale. The charity has no basic financial liabilities al the period end Judgements and key sources of estimation uncertainty In the application of the Charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the Carrying amounts of assets and liabilities that are not ieadily apparent from other sources. The eslimales and associated assumptions are based on historical experien and other factors that are considered lo be relevant. Actual results may differ from these estimates. The eslimales and underlying assumptions are reviewed on an ongoing basis. In the opinion of the Trustees there have been no significant judgements made in the process of applying the above accoLJnting policies. There have been no key assumptions concerning future and other key sources of eslimalion unrtainlY al the reporting dale that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. -11-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from investments Unrestricted Restricted funds funds Total 2021 Total 2020 Bank interest receivable Diiridends receId 7,055 84,792 7.055 84.792 4,354 81.338 91,847 91.847 85,692 Other Income Unrestricted Restricted funds funds Total 2021 Total 2020 Other income 75 75 Expenditure on charitable activities Opportunities for young people Total 2021 Total 2020 Activity Donations in accordance wth Charity objects Support costs 49,378 38,596 49,378 38,596 51,924 34,970 87,974 87,974 86,894 -12-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Support costs Total 2021 Total 2020 Professional fees Instment management fees Other costs of inStmentS A¢¢ounlancy fees Bank charges Website costs 4.800 22,628 8,252 2.760 107 49 4,800 20,230 7,212 2,610 52 38,596 34,970 Net income 2021 2020 Net Income Is stated after charglng.. Independent examination fees Independent examinerfs remuneration other lax adiAsory seDAces 2,310 2,160 450 450 staff costs and Trustee remuneratlon The Charity has no employees during the period and no individua1, including the Trustees, received any remuneration. No expenses have been paid to Trustees during the period. Related party transactlons The Charity is considered lo be under the control of the Trustees during the period. There are no reporting related paty transactions during the current year. -13-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 10 Fixed asset investments 2021 2020 other investments at Valuation Balance brought fopNard Acquisitions al cost Receipts for sale of inkeslments Realised losses on sale of InstmentS Unrealised loss on InStMentS m0Ment in cash held as part of InStMent portfolio 3,892,816 3,779,080 481,713 134,331 1346,6351 1151,1671 45,121 110.0391 285,171 154,302 166,9811 113,6911 Total investments 4,291,205 3,892.816 Total InStMentS comprise the following type of inStMents.. UK listed equities & fixed interest securities UK listed bonds Property and alternati inEslmenls Cash held as part of instment portfolio 2,441,200 1,451,292 301,719 96,994 2,410,525 1,036.264 282.052 163.975 Total investments 4,291,205 3,892,876 11 Debtors 2021 2020 Accrued bank interest 1,450 1.897 1,450 1,897 12 Creditors: amounts due wlthln one year 2021 2020 Accruals 2,340 1,800 2.340 1,800 -14-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 13 Analysis of funds: Current year At1 Jan 2021 At31 Dec 2021 Inv'ment gains Income Expendlture Transfers Reslricled tunds Unreslricled funds 4,818,965 91.847 187,9741 330,292 5.153,130 Total funds 4,818,965 91,847 187,9741 330,292 5.153,130 14 Analysis of funds: Prior year At1 Jan 2020 At31 Dec 2020 Inv'ment gains Income Expenditure Transfers Restricted funds Unreslricled funds 4,675,829 85,767 186.8941 144,263 4,818,965 Total funds 4.675,829 85,767 186,8941 144,263 4,818.965 15 Analysis of net assets between funds: Current year Flxed asset Net current investm&nts assets Total Restricted funds Unrestricted funds General funds 4.291,205 861,925 5,153,130 Total funds 4,291,205 861.925 5.153,130 -15-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 16 Analysis of net assets between funds: Prior year Fixgd asset Net current investments assets Total Restricted funds Unrestricted funds General funds 3,892,816 926, 149 4,818,965 Total funds 3,892.816 926.149 4,818,965 -16-
THE ARETI CHARITABLE TRUST APPENDIX TO THE FINANCIAL STATEMENTS.. DONATIONS FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees are pleased to document the following donations which have been made during the year.. Donations 2021 Donations 2020 Amside and Sil*rdale AONB Castle View Primary School, L8n¢asler CEEP Escape2make Hermitage Feld Cornmunity Meadow Heron Corn Mill Lancashire Youth Challenge Lan¢asler 8oys and Girls Club LUDUS Danco Marsh Community Centre Morecambe Bay Partnership Morecambe Bay Primary Schwl Poullon4e-Sands Primary School, Lancaster Sandylands Primary School, Morecambe Sl Lukes Primary School, Skerton Sl Patricks Catholic Primary SchiJ)I, Morecambe Truma¢ar Primary School, Heysham Walney Community Trust West End Primary School, More¢8mbe Weslgale Primary School, Morecambe Willow Lane Primary School, Lancaster 15,800 342 3,600 25,000 3,410 2,400 8,820 8,150 3,394 6,580 3,500 13,300 655 348 300 1,010 1,302 599 1,200 300 950 342 49.378 51,924 -17-