Charity number: 1180402
Kreston Reeves Foundation
Unaudited
Trustees' report and financial statements
For the year ended 31 May 2021
Kreston Reeves Foundation
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 4 |
| Trustees' responsibilities statement | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 18 |
Kreston Reeves Foundation
Reference and administrative details of the Charity, its Trustees and advisers For the year ended 31 May 2021
| Trustees | D J Ashman OBE |
|---|---|
| S G Ediss | |
| R W Heasman | |
| S M Rouse | |
| Charity registered number 1180402 Principal office 37 St Margaret's Street Canterbury CT1 2TU Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ |
Page 1
Trustees' report For the year ended 31 May 2021
Kreston Reeves Foundation
The Trustees present their annual report together with the financial statements for Kreston Reeves Foundation (the "Charity") for the year ended 31 May 2021.
Kreston Reeves Foundation was incorporated on 22 October 2018 and was incorporated to encompass Kreston Reeves LLP's commitment to the Charity and Not-for-profit sector. The Kreston Reeves Foundation is managed by Kreston Reeves LLP staff members as an Executive Committee reporting to the Trustees.
The Charity encourages staff of Kreston Reeves LLP (staff) to give back to the community by facilitating a paid volunteering day for each member of staff, by sponsoring members of staff in events held for Charity as part of the automatic sponsorship initiative and by encouraging fundraising for Kreston Reeves LLP's nominated charities of the year. The Kreston Reeves Foundation is the focal point for Kreston Reeves LLP's many charitable and fundraising activities.
Objectives and activities
a. Policies and objectives
Under the Constitution, the stated objectives of the Charity are: "to further such charitable purposes (charitable under English law) as the Trustees see fit from time to time by the provision of grants to charitable organisations located in the vicinity of a Kreston Reeves office."
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a Charity (PB2)'.
b. Activities undertaken to achieve objectives
In planning their objectives for the year, the Trustees have ensured that they have complied with the duty in s17 of the Charities Act 2011 and kept in mind the Charity Commission's guidance on public benefit.
The Charity's main activity is the provision of grants to charitable organisations located in the vicinity of a Kreston Reeves office.
In order to achieve these objectives, the Charity aims to build partnerships with organisations in this area.
Achievements and performance
Review of activities and future plans
The Charity collected donations including gift aid of over £13,000 which had been raised by employees for their local office Charity of the Year. During the year the Charity undertook a fundraising initative, the Foundation Fifty, between March and May 2021 encouraging employees to fundraise on the theme of fifty. The Trustees would like to thank all employees who took part in this initiative which was responsible for raising over £11,000 of the total Charity of the Year donations. The Trustees would also like to thank all of the employees who have donated to their chosen Charity of Year, with particular thanks to the Corporate Social Responsibility Representatives who organise the events, collect the donations and develop relationships with the charities. This Corporate Social Responsibility group have produced an impact report which documents the activities on behalf of the Charity together with the other activities undertaken by Kreston Reeves LLP within this groups remit. The impact report can be found at https://www.krestonreeves.com/wp-content/uploads/2021/11/2020-21-Impact-report.pdf
The Charity has provided £750 of automatic sponsorship this year for individual members of staff taking part in fundraising events for charities located in the vicinity of a Kreston Reeves office.
Page 2
Kreston Reeves Foundation
Trustees' report (continued) For the year ended 31 May 2021
The Charity also facilitated a volunteering day for 36 members of staff equating to 207.9 hours, or over 27.5 working days, of charitable work in our local communities. The value of this time has not been quantified. The use of the volunteering programme was significantly limited during the year by Covid-19 lockdowns and restrictions. However, staff were creative in identifying volunteering opportunities, which took place outdoors and adhered to social distancing rules in place during the year. The Charity is encouraged by the initial uptake of the volunteering initiative amongst employees and is optimistic that a greater number of hours of employee time can be donated for the benefit of our local charities and communities, particularly as Covid-19 restrictions have been eased during 2021.
The Trustees would like to thank the members of the Executive Committee for their diligence in administering the day to day management of the Charity.
The Trustees would also like to thank the Partners of Kreston Reeves LLP for their donations to the Charity during the year. These have enabled the Charity to provide automatic sponsorship to some members of staff and to build the Charity's reserves to support this scheme and others going forward.
The Charity plans to continue with the automatic sponsorship scheme and a volunteering day for members of staff. Each office will continue to chose a Charity of the Year in order to continue to provide grants to charitable organisations located within the vicinity of a Kreston Reeves office. The first round of Making Dreams Come True was completed in 2020, being an employee led fundraising project which empowers employees of Kreston Reeves LLP to take on charitable challenges, requiring training and effort, which they normally consider too big, too hard or too difficult to achieve without the support from their colleages. Plans for the second round of Making Dreams Come True have also started and the Charity is looking forward to announcing these in due course.
COVID-19
During the periods of lockdown in the UK during 2020 and 2021, the automatic sponsorship scheme and the paid volunteering day have seen very little activity. However when events have taken place, the Charity has continually monitored the latest government rules and guidelines to ensure that all fundraising and volunteering activities are undertaken safely and in accordance with these rules. Each office has continued to raise donations for their chosen local Charity of the Year where possible, particularly through the Foundation Fifty initiative where employees selected a range of individual and group fundraising projects in line with government guidelines during the period. As a result, charitable donations from fundraising projects have increased from 2020. The Trustees are hopeful that fundraising events and use of the volunteering initiative will improve throughout 2021 as Covid-19 restrictions are eased further and staff return to the office. Grants will still be made to charitable organisations selected to be an office Charity of the Year, based on amounts that the individual offices have been able to raise during this time.
Financial review
Reserves policy
The Trustees have considered the level of reserves required to meet the objectives of the Charity and are aiming to maintain reserves of between £2,000 and £2,500. This level of reserves would support the pledged payment of the automatic sponsorship initiative (see above) for the year ahead.
At the year end, unrestricted reserves of £15,955 (2020: £6,016) were held which is higher than the reserves position the Trustees had planned to maintain. Unfortunately COVID-19 resulted in a number of events being cancelled during the year which would have formed part of our automatic sponsorship scheme but the Trustees are keen to encourage event participation, in line with current government guidelines. The Trustees will continue to monitor the level of reserves held. The Trustees have agreed future plans to distribute a proportion of the excess reserves to local food banks.
Page 3
Kreston Reeves Foundation
Trustees' report (continued) For the year ended 31 May 2021
Structure, governance and management
a. Constitution
Kreston Reeves Foundation was registered as a Charitable Incorporated Organisation on 22 October 2018 and its governing document is its constitution.
b. Methods of appointment or election of Trustees
Apart from the first Charity Trustees, every Trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the Charity Trustees, who are elected and co-opted under the terms of the constitution.
c. Financial risk management
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Approved by order of the members of the board of Trustees on 14 December 2021 and signed on their behalf by:
S M Rouse Trustee
Page 4
Kreston Reeves Foundation
Statement of Trustees' responsibilities For the year ended 31 May 2021
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
Kreston Reeves Foundation
Statement of financial activities For the year ended 31 May 2021
| Note Income from: Donations and legacies 3 Other trading activities 4 Investments 5 Total income Expenditure on: Raising funds 6 Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2021 £ 859 13,611 - 14,470 - 14,470 14,470 - - - - |
Unrestricted funds 2021 £ 10,389 - 6 10,395 - 1,456 1,456 8,939 6,016 8,939 14,955 |
Total funds 2021 £ 11,248 13,611 6 24,865 - 15,926 15,926 8,939 6,016 8,939 14,955 |
Total funds 2020 £ 12,295 8,511 - |
|---|---|---|---|---|
| 20,806 | ||||
| 452 15,428 |
||||
| 15,880 | ||||
| 4,926 | ||||
| 1,090 4,926 |
||||
| 6,016 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 18 form part of these financial statements.
Page 6
Kreston Reeves Foundation
Balance sheet As at 31 May 2021
| Note Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total net assets Charity funds Restricted funds 13 Unrestricted funds 13 Total funds |
7,637 21,877 29,514 (14,559) |
2021 £ 14,955 14,955 - 14,955 14,955 |
6,589 5,302 11,891 (5,875) |
2020 £ 6,016 |
|---|---|---|---|---|
| 6,016 | ||||
| - 6,016 |
||||
| 6,016 |
The financial statements were approved and authorised for issue by the Trustees on 14 December 2021 and signed on their behalf by:
S M Rouse
Trustee
The notes on pages 8 to 18 form part of these financial statements.
Page 7
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
1. General information
Kreston Reeves Foundation is a charitable incorporated organisation, incorporated in England and Wales with charity number 1180402.
The address of the Charity's registered office is Kreston Reeves LLP, 37 St Margaret's Street, Canterbury, Kent, CT1 2TU.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with 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).
Kreston Reeves Foundation 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.
The Charity's functional and presentational currency is Pound Sterling.
The Charity's financial statements are presented to the nearest Pound.
2.2 Going concern
In order to meet its day to day working capital requirements the Charity is dependant on donations received from the partners and employees of Kreston Reeves LLP. During the year the Charity has received a significant amount of donations which has enabled it to meet its reserves policy.
While the impact of the COVID-19 pandemic has been assessed by the Trustees so far as reasonably possible, due to the unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the final potential outcome on the Charity's activities. However, taking into consideration the UK Government's response, the experience of the Charity during the pandemic thus far, and the Charity's own reserves and planning, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Page 8
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
2. Accounting policies (continued)
2.4 Expenditure (continued)
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made 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.
All expenditure is inclusive of irrecoverable VAT.
2.5 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.7 Cash at bank and in hand
Cash at bank and 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.
2.8 Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.9 Financial instruments
The Charity 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 measured at amortised cost using the effective interest method.
Page 9
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
2. Accounting policies (continued)
2.10 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
3. Income from donations and legacies
| Donations Total 2020 |
Restricted funds 2021 £ 859 4,482 |
Unrestricted funds 2021 £ 10,389 7,813 |
Total funds 2021 £ 11,248 12,295 |
Total funds 2020 £ 12,295 |
|---|---|---|---|---|
4. Income from other trading activities
Income from fundraising events
| Charity of the Year Making Dreams Come True Other charitable fundraising Total 2020 |
Restricted funds 2021 £ 13,611 - - 13,611 8,511 |
Total funds 2021 £ 13,611 - - 13,611 8,511 |
Total funds 2020 £ 5,123 1,648 1,740 |
|---|---|---|---|
| 8,511 | |||
Page 10
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
5. Investment income
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Other investment income | 6 | 6 | - |
6. Expenditure on raising funds
Costs of raising voluntary income
| Costs of raising voluntary income Total 2020 |
Restricted funds 2021 £ - 338 |
Unrestricted funds 2021 £ - 114 |
Total funds 2021 £ - 452 |
Total funds 2020 £ 452 |
|---|---|---|---|---|
7. Analysis of grants
| Grants Total 2020 |
Grants to Institutions 2021 £ 14,470 13,644 |
Grants to Individuals 2021 £ 750 650 |
Total funds 2021 £ 15,220 14,294 |
Total funds 2020 £ 14,294 |
|---|---|---|---|---|
Page 11
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
8. Analysis of expenditure on charitable activities
Summary by fund type
| Grant making Total 2020 |
Restricted funds 2021 £ 14,470 13,655 |
Unrestricted funds 2021 £ 1,456 1,773 |
Total funds 2021 £ 15,926 15,428 |
Total funds 2020 £ 15,428 |
|---|---|---|---|---|
9. Analysis of expenditure by activities
| Grant making Total 2020 |
Grant making activities 2021 £ 15,220 14,294 |
Support costs 2021 £ 706 1,134 |
Total funds 2021 £ 15,926 15,428 |
Total funds 2020 £ 15,428 |
|---|---|---|---|---|
Analysis of support costs
| Bank and Just Giving charges Advertising & marketing Insurance IT software and consumable Subscriptions |
Grant making activities 2021 £ 266 - 411 - 29 706 |
Total funds 2021 £ 266 - 411 - 29 706 |
Total funds 2020 £ 95 546 422 35 36 |
|---|---|---|---|
| 1,134 |
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020: £NIL).
During the year ended 31 May 2021, Trustees Indemnity insurance totalling £ 411 was paid on behalf of the Trustees (2020: £422). No other expenses were reimbursed to the Trustees in the year (2020: £NIL).
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Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
11. Debtors
| Due within one year Other debtors Prepayments and accrued income Tax recoverable |
2021 £ 6,673 76 888 7,637 |
2020 £ 3,749 182 2,658 |
|---|---|---|
| 6,589 |
12. Creditors: Amounts falling due within one year
| Other creditors Accruals and deferred income Grants accrued - individual Grants accrued - charities |
2021 £ - 65 350 14,144 14,559 |
2020 £ 182 36 350 5,307 |
|---|---|---|
| 5,875 |
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Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
13. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Restricted funds Charity of the year - Brighton Charity of the year - Canterbury Charity of the year - Chatham Charity of the year - Chichester Charity of the year - Discovery Park Charity of the year - Horsham Charity of the year - London Charity of the year - Worthing Total of funds |
Balance at 1 June 2020 £ 6,016 - - - - - - - - - 6,016 |
Income £ 10,395 834 2,048 3,453 200 769 3,699 2,474 993 14,470 24,865 |
Expenditure £ (1,456) (834) (2,048) (3,453) (200) (769) (3,699) (2,474) (993) (14,470) (15,926) |
Balance at 31 May 2021 £ 14,955 |
|---|---|---|---|---|
| - - - - - - - - |
||||
| - | ||||
| 14,955 |
Page 14
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
13. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Restricted funds Making Dreams Come True Charity of the year - Brighton Charity of the year - Canterbury Charity of the year - Chatham Charity of the year - Chichester Charity of the year - Discovery Park Charity of the year - Horsham Charity of the year - London Charity of the year - Worthing Alumni event Macmillan coffee morning Total of funds |
Balance at 1 June 2019 £ 90 1,000 - - - - - - - - - - 1,000 1,090 |
Income £ 7,813 5,946 47 724 772 73 678 651 882 1,480 1,441 299 12,993 20,806 |
Expenditure £ (1,887) (6,946) (47) (724) (772) (73) (678) (651) (882) (1,480) (1,441) (299) (13,993) (15,880) |
Balance at 31 May 2020 £ 6,016 |
|---|---|---|---|---|
| - - - - - - - - - - - |
||||
| - | ||||
| 6,016 |
Page 15
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
13. Statement of funds (continued)
Purpose of restricted funds
Making Dreams Come True - This fund represents the donation made to One Child Ghana to support the employee led project to support communities in Ghana.
Charity of the year - Brighton - This fund represents monies raised by employees in the Brighton office on behalf of The Clock Tower Sanctuary.
Charity of the year - Canterbury - This fund represents monies raised by employees in the Canterbury office on behalf of The Pilgrims Hospice (Canterbury).
Charity of the year - Chatham - This fund represents monies raised by employees in the Chatham office on behalf of Demelza Hospice Care for Children.
Charity of the year - Chichester - This fund represents monies raised by employees in the Chichester office on behalf of Homestart Chichester.
Charity of the year - Discovery Park - This fund represents monies raised by employees in the Discovery Park office on behalf of The Pilgrims Hospice (Thanet).
Charity of the year - Horsham - This fund represents monies raised by employees in the Horsham office on behalf of The Samaritans of Horsham & Crawley.
Charity of the year - London - This fund represents monies raised by employees in the London office on behalf of The Honeypot Children's Charity.
Charity of the year - Worthing - This fund represents monies raised by employees in the Worthing office on behalf of Ferring Country Centre.
Alumni event - This fund represents monies raised for Diabetes UK at a Kreston Reeves LLP Alumni event in honour of our colleague Janet Fautley.
Macmillan coffee morning - This fund represents monies raised during a coffee morning for Macmillan Cancer Support.
Page 16
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
14. Summary of funds
Summary of funds - current year
| Balance at | Balance at | 1 | Balance at | ||
|---|---|---|---|---|---|
| June | 2020 | Income | Expenditure 31 May 2021 |
||
| £ | £ | £ £ |
|||
| General funds | 6,016 | 10,395 | (1,456) 14,955 |
||
| Restricted funds | - | 14,470 | (14,470) - |
||
| 6,016 | 24,865 | (15,926) 14,955 |
|||
| Summary of funds - prior year | |||||
| Balance | at | Balance at | |||
| 1 June | 2019 | Income | Expenditure 31 May 2020 |
||
| £ | £ | £ £ |
|||
| General funds | 90 | 7,813 | (1,887) 6,016 |
||
| Restricted funds | 1,000 | 12,993 | (13,993) - |
||
| 1,090 | 20,806 | (15,880) 6,016 |
|||
| Analysis of net assets between funds | |||||
| Analysis of net assets between funds - current year | |||||
| Restricted | Unrestricted Total |
||||
| funds | funds funds |
||||
| 2021 | 2021 2021 |
||||
| £ | £ £ |
||||
| Current assets | 14,470 | 15,044 29,514 |
|||
| Creditors due within one year | (14,470) | (89) (14,559) |
|||
| Total | - | 14,955 14,955 |
|||
| Analysis of net assets between funds - prior year | |||||
| Unrestricted Total |
|||||
| funds funds |
|||||
| 2020 2020 |
|||||
| £ £ |
|||||
| Current assets | 6,584 11,891 |
||||
| Creditors due within one year | (568) (5,875) |
||||
| Total | 6,016 6,016 |
15. Analysis of net assets between funds
Page 17
Kreston Reeves Foundation
Notes to the financial statements For the year ended 31 May 2021
16. Related party transactions
i) During the year ended 31 May 2021 donations totalling £780 (2020: £460) were received from the Trustees.
ii) S G Ediss, R W Heasman and S M Rouse are designated partners of Kreston Reeves LLP as well as being Trustees for the Charity.
a) During the year ended 31 May 2021, the Charity received a donation of £2,164 (2020 - £4,298) from Kreston Reeves LLP.
b) At the year end an amount was owed from Kreston Reeves LLP totalling £2,592 (2020 - £3,501). This amount relates to monies collected on behalf of the Charity in relation to fundraising for each offices Charity of the year.
Page 18