Charity No. 1175627 The Areti Charitable Trust Trustees, Annual Report and Unaudited Financial Statements For The Year Ended 31 December 2022 mha MOORE & SMALLEY
THE ARETI CHARITABLE TRUST CONTENTS Page Trustees. annual report Independent examiner's report lo the Iruslees Slalemenl of financial activities Balance sheet Cash flow statement Notes to the accounts 10
THE ARETI CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees have pleasure in presenting their report and the financial slalements of the ¢harily for the year ended 31 December 2022. Reference and administrative detai15 Registered charity name The Areli Charitable Trust Charity registration number 1175627 Registered ottice 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 Gale Lancaster Lancashire LA1 1XB Investment Managers Garstang 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 (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Background to thè Charity The Areli Charitable Trust I'the Charily") was Created by Trust Deed on 26 August 2015, as amended by Deed dated 31 Octobei 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 lo give disadvantaged children and young people opportunitiès lo experience and learn more about the natural word. Charitable objectives The objectives of the Charity are lo advance in life and help young people. especially bul not exclusively those living in the adminislralive area covered by Lancaster City Council. through.. al the provision andlor facililalion of recreational leisuie activities provided in the interests of social welfaro designed lo improve their conditions of life, especHlly bul not exclusively Ih05e 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, ¢apacilies 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 natura5 environment. dl The Charity's strategy lo achieving ils objectives is lo invest ils income to generate a return that can allow the Trustees lo rlonale to various charitable causes al their discreli)n in accordance wtih the ¢harilable 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-lerm objective. Public benefit 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 guidance on public benefit and believe that an appreciation of the Charity's public benefit can be obtained from the review of ils a¢hievemenls 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 Df which the Trustees operate. Ils charity registration number is 1175627. The activity of the Charity is determined by the Trustees and facililaled 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 remuneraliDn to 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. Investment policy The investments held by the Charity and their perfomance is reviewed at each Trustee meeting with investment managers who may be inslrucled lo carry out any recommended changes as lo the investment inslrumenls. The managers are inslrucled lo keep a balanced portfolio lo spread Ihe risk and rnaximise capital growih without jeopardising revenue income.
THE ARETI CHARITABLE TRUST TRUSTEES. ANNUAL REPORT (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Risk Management The Trustees consider and assess on an on-going basis the major risks lo whi¢h the Charity may be expos&d. The principal risk is considered to be exposure lo markets with the investment portfolio held. The Trustees have delegated fund management lo Garslang Independent Financial Services who are experienced in this field which s considered to miligale the risks associated with such investments lo an appropriate level. The performance of the investments is regularly reviewed through Trustee Board meetings. Achievemènts and performanc The Trustees are paSed lo present a positive picture of the work of the Trust, with a strong up8wing in grants awarded in 2022. The Trust is receiving an increasing numberof applications for activities based in nature and in the local landscape aimed spe¢ifi¢ally al raising awareness of environmental challenges such as biodiversity loss and climate change. As 8 result, the Trustees have shifted their focus slightly and are minded lo priorilise such projects, while still being willing to eonsider more"Iradilional° outdoor aclivilies. Financlal review and reseThes policy Al the end ol the financial period the Charity had lolal funds of £4,411,97312021.. £5,153,130). The nel decrease in funds of £741,157 was after nel investment losses of £673,842. Income was generated from investments of £101,943 and £130.236 has been donated to good causes. The Charity has incurred £39.022 in other support costs in the period. Al the period end date the Charbty held £817,370 12021.. £862,815) in cash funds and £3,593,569 12021.. £4,291,205) within ils inveslmenl portfolio. both expected lo generate future income lor the Charity. There aTe no funds in deficit and no going concern uncertainties. The Charity has no formal reserves policy. The Trustees intend lo hold investments as capital and the proceeds of returns from the investments will then be spent through ¢harilable 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 lo further charitable causes in accordance with the objectives of the Charity. There is not expected lo be a material change in direction of the Charity in the short or mediLJm term.
THE ARETI CHARITABLE TRUST TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees. responslbllltles In rolatlon to th& financial stat8m•nts The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting SlandaTds (United Kingdom GeneraSly Accepted Accounting Praclicel. The law applicab lo charities in England & Wales requires the Trustees lo prepare financial statements for ea¢h financial period which give a true and fair view of the slate ol affairs of the Charity, and of the in¢ome and expenditure of the Charity, for that period. In preparing these financial slalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly.. observe the methods and principles in the Charities SORP {FRS1021', make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial slalemenls on the going conrn basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any lime the financial position of the Charity and enable them to ensure Ihal the financial slalemenls comply with the Charity's governing document. the Charities Act 2011, the Slalemenl of Recommended Pradi¢e". A¢¢ounling and Reporting by Charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, and UK Generally Accepted Accounting Practice. The Trustees. Report was approved on ..1 ??.. .l-..Z..Sand was signed on beha of the Trustees by-. P A Clarko Trustee RA Follows Trustee
THE ARETI CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ARETI CHARITABLE TRUST FOR THE YEAR ENDED 31 DECEMBER 2022 I report lo the charity Iruslees on my examination of the accounts of the charf(y for the year ended 31 December 2022 which are sel out on pages 7 to 17. Responsibilities and basis of report As the charity's Iruslees you are responsible for the preparation of the 8ccoun18 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 se¢lion 14515}{bl of the Act. Independent examiner's statement I have completed my examination. l Confirm that no material matters have come lo my attention in connection with the examination giving me cause lo believe that in any material respe¢t'. 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 re¢ords', or the accounts do notcomply with the applicable requirements concerning the form and conlenl of accounts set out in the Charities IAccounls and Reports) Regulations 2008 other than any requirement that the accounts give a 'lrue and fair view, which is not a matter considered as part of an independent examination. I have no Concerns and have ¢ome a¢ross no other mallers in connection with the examinalK)n lo which allenlion should be drawn in this report in order lo enable a proper understanding of the accounts lo be rea¢hed. Jenny M¢Cabe FCA Independent Examiner MHA Moore and Smalley Chartered Accountants Priory Close Sl Mary's Gale Lancaster LA1 1XB 1410712023
THE ARETI CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted Restricted Total funds Total funds funds funds 2022 2021 Income frorn.. Investments 101,943 101,943 91,847 Total 101,943 101,943 91,847 Expenditure on: Charitable activities 169,258 169.258 87,974 Total 169.258 169,258 87,974 Net lexpenditure)lincome before other recognised gains 167,3151 167,3151 3,873 other recognised gains Realised Iloss)Igain on disposals of investments Unrealised Ilossllgain on revaluation of investments {33,3591 133,3591 45,121 1640.4831 {640,4831 285,171 Net movement in funds 1741,1571 {741,1571 334,165 Reconciliation of funds: Total funds brought fOard 5,153,130 5,153.130 4,818,965 Total funds carried forward 12 4,411,973 4,411,973 5,153,130 The notes on pages 10 to 17 form part of these financial statements.
THE ARETI CHARITABLE TRUST BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 Fixed assets Inkestments 3.593.569 4.291.205 3,593,569 4,291,205 Current assets Debtors Cash at bank and in hand qo 3.608 817.370 1,450 862,815 820.978 864,265 Creditors- amounts falling due Mrithin one year 11 12,5741 (2,3401 Net current assets 818,404 861,925 Total asspts less current liabilitie5 4.411.973 5,153,130 Net assets 4.411.973 5,153,130 Funds: Restricted fijnds Unre51ri¢ted funds 12 12 4,411,973 5,153,130 Total funds 4,411,973 5,153,130 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 fonr part of these financial slatemenls.
THE ARETI CHARITABLE TRUST CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2022 2022 2021 Cash generated in operating activities 1171,1821 186,9871 Ca5hflows from Investlng actlvities Inslmenl income Purchase of fixed asset inslmenls Receipts from sale of inkeslmenls 101.943 1119,7451 108,428 91,847 1481,7131 346.635 Cash lused Inv provlded by Investlng activities 180,5561 {130,2181 Increase in cash and cash equivalents In the year 180,5561 1130,2181 Cash and cash equivalents brought forward 959.809 1.090.027 Cash and cash equivalents carried forward 879.253 959,809 Reconclllatlon of n8t movement In funds to net cashflow from operating activities Nel m0ment iri knnds InStMent income reCeid Decrease in debtors Increase in creditors 167,3151 1101,9431 12,1581 234 3,873 191,8471 447 540 Net cash lused Inv generated In operating a¢tivities 1171,1821 186,9871 Components ofcash and cash equivalents Cash at bank and in hand Cash held with InStment managers 817,370 61,883 862,815 96,994 879,253 959,809 The notes on pages 10 to 17 form part of these linancial statements.
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Lègal 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 O¢tober 2017. The registered office of the charity, the nature of ils operations and ils principal activities are all detailed in the Trustees, report within these financial slalemenls. The Charity meets the definition of a public benefit entity under FRS102. The financial 5talemenls have been prepared in a¢¢ordance with A¢¢ounling and Reporting by Charilies.. Slalem&nl of Recommended Practice applicable to charities preparillg their accounts in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (Charities SORP IFRS 10211. and the Charities Act 2011. The financial slalemenls are prepared in sterling, which is the functional currency of tho charity. Monetary amounts are rounded lo the nearest £. The financial statements have been prepared on a going concern basis under the historical cost convention. The significant accounting policies applied in the preparation of these financial slalemenls are sel out below. These policies have been consrslenlly applied lo all periods presented. unless otherwise slated. Going concern The trustees assess whether the use of going concern is appropriate i.e. whether there are any material un¢ert8inlies related lo events or ¢onditions that may cast significant doubl on the abilily of the charity lo continue as a going concern. The Iruslees have considered the position of the charity and believe that il holds sufficionl reserves lo Continue in operation for at least 12 months from approval of the accounts. therefore the going concern basis of accounts pieparalion is appropriate. Income Investment income is eamed through holding assets for investment purposes. and through bank interest. 11 includes dividends and interest and is included when the amounts are re¢eived andlorearned 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 conslruclive obligation lo make payments lo third parties. il is probable that the selllemenl will be required, and the amount of the obligation can be measured reliably. Costs ale further allocated beiween the activities undertaken on a basis consistent with the use of the reSoUrs. Expenditure includes irrecoverable VAT. Charitable a¢livilies expenditure includes $1$ incurred in Ihe delivery of the ¢harily's aclThiilies and services. It includes professional fees in maintaining the investment portfolio. The main expenditure for the Charity is through 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 2022 Accountlng pollcies Icontlnuedl Investments Investments are recognised initially al fair value which is normally the transaction price excluding transaction costs. Investments are subsequently slated al 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 equivalents Cash is a basic financial asset and includes cash and deposits held on call and on deposit with banks. Fund accounting UnreslF7cled funds- General funds are available for use al the discretion of the Trustees in furtheran of the general objectives of the charity. Design8ledfunds- Designated funds are unrestricted funds set aside by the Trustees for particular purposes. Reslricled funds- Reslricled fund5 arise where there is a donor-1mp0s 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 lo be a charity and therefore Ih8y are enlilled to 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 fi'nancial assets are initially measured al Irans8¢1ion price and are subsequenlly carried al amortised cost. Financial assets are assessed for indi¢8lors of impairment al each reporting end dale. The charity has no basic financi41 liabilities at the period end Judgements and key sources of estimation uncertainty In the application of the Charrty's accounting policies, the Trustees are required lo make judgements. eslimales and assumptions about the carrying amounts of assets and liabililies that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are Considered lo be relevant. Actual results may differ from these eslimales. The eslimales and underlying assumptions are reviewed on an ongoing basis. In the opinion of the Trustees there have been no significant judgements maole in the process of app4fing the above aOUntIng policies. There have been no key assumptions concerning future and other key sources of eslimalion uncertainly 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 2022 Income from investments Unrestricted Restricted funds funds Total 2022 Total 2021 Bank interest reCeible DiMdend5 Teceiked 8.796 93,147 8,796 93,147 7,055 84,792 101,943 101,943 91,847 Expendlture on charltable actlvltl8s Opportunities for young pèoplè Total 2022 Total 2021 Activity Donations in accordance nth Charity objects Support costs 130.236 39,022 130,236 39,022 49,378 38,596 169.258 169,258 87,974 -12-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Supportcosts Total 2022 Total 2021 Professional fees In¥estment management fees Other cosls of IntMentS Accountancy fees Bank charges Website costs 7,218 21,204 7,869 2,574 99 58 4,80C> 22,628 8,252 2,760 107 49 39,022 38,$96 Net income 2022 2021 Net income is stated after charging.. IndeFendenl examination fees Indendent examinerfs remuner*ion - other tax athisory seNces 2.145 2,310 429 450 Staff costs and Trustee remuneration The Charity has no empbyees during the period and no individual. including the Trustees, received any remuneration. No expenses have been paid to Trustees during the period. Related party transactions The Charity is considered to be under the control of the two Trustees during the period. There are no reporting related party transactions during the Current year. -13-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Flxed asset Investments 2022 2021 Other investsnents at Valuation Balance brought forward Acquisitions al cost Re¢eipls for sale of nStmentS Realised losses on sale of InStMentS Unrealised loss on inkeslmenls m0Ment in cash held as part of instment portfolio 4.291.205 3.892,816 119.745 481,713 1108,4281 1346,635) {33,3591 45,121 1640,4831 285,171 135,1111 {66,9811 Total investments 3,593,569 4,291,205 Total inStmentS comprise the following type of inStMents.. UK listed equities & fixed interest securities UK listed bonds Property and altematI inStmentS Cash held as part of in*stmenl wrtfolio 2,095,624 1,237,499 198,563 61,883 2,441,200 1,451,292 301.719 96.994 Total investments 3,593,569 4,291.205 10 Debtors 2022 2021 Accrued bank interest 3,608 1,450 3,608 1,450 11 Credltors.. amounts due wlthln one year 2022 2021 A¢¢rual$ 2,574 2,340 2,574 2,340 -14-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12 Analysis of funds: Current year At1 Jan 2022 At31 Inv'ment galns Income Expendlture Transf&rs 2022 Restricted fvnds Unrestricted funds 5,153,130 101,943 {169.258} 1673,8421 4.411.973 Total funds 5,153,130 101,943 169,258} 1673,8421 4.411,973 13 Analysis of funds.. Prior year At1 Jan 2021 At31 Do¢ 2021 Inv'ment gains Income Expenditure Transfers R&slri¢led funds Unrestricted fijnds 4,818,965 91.847 187.9741 330,292 5.153.130 Total fund5 4,818,965 91,847 187,9741 330.292 5.153.130 14 Analysls of net assgts bgtW8en funds: Curront year Fixed asset Net current investments assets Total Rastricted funds Unrestricted funds General ndS 3,593,569 818,404 4,411,973 Total funds 3,593,569 818.404 4.411,973 -15-
THE ARETI CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 15 Analysls of ngl assets been funds: Prlor year Fixed asset Net current Invèstments assets Total Restricted funds UnTe5trictad funds General funds 4,291.205 861.925 5.153,130 Totsl fijnds 4.291,205 861,925 5.153.130 -16-
THE ARETI CHARITABLE TRUST APPENDIX TO THE FINANCIAL STATEMENTS: DONATIONS FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees are pleased lo document the following donations which have been made during the year.. Donations 2022 Donations 2021 Castle View Primary School. Lancaster CEEP Escape2make Hermitage Feld Community Meadow Heron Corn Mill Lancashire Youth Challenge Lancashire Boys and Girls Club Arnside & Silverdale AONB Lancashire County Council Cancercare Stomping Ground CIC Lakeland Arts Skerton Youth Groups Morecambe Bay Primary School Poullon-le-sands Primary School. Lancaster Sandylands Primary School, Morecambe Sl Lukes Primary School. Skerton Sl Patricks Catholic Primary School. More¢ambe Trumacar Primary School, Heysham Wesl End Primary SGhool, Morecambe Westgale Primary S¢hool. Morecambe Willow Lane Primary School, Lancaster Sl Joseph Catholic Primary School Lancaster Road Primary School Bollon-le-sands Primary School The Ridge Primary School Carnforth Primary School North Road County School Fund Morecambe Road School Ryelands PC Kent Estuary Youth Project The Outward Bound Trust Larksfool CIC Less UK CIC Lilfesl 342 3,600 25,000 3,410 2,400 8,820 4,000 15,000 8,100 2,000 31,245 511 2,500 2,720 2,991 2,750 2,820 655 348 300 1,010 1.302 599 300 950 342 2,434 290 1,560 1,162 756 2,132 307 362 1,052 366 s.000 652 2.000 1,164 12,206 23,396 760 130.236 49,378 -17-