Charity registration number: 1181945
The Charity of Sarah Bernard
Annual Report and Financial Statements for the Year Ended 31 December 2020
Lambert Chapman LLP Chartered Accountants and Registered Statutory Auditors 3 Warners Mill Silks Way Braintree Essex CM7 3GB
The Charity of Sarah Bernard
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 to 9 |
| Notes to the Financial Statements | 10 to 19 |
The Charity of Sarah Bernard
Reference and Administrative Details
Trustees J H Simpson L Vohmann M K Gardiner M Carter G Cutmore Principal Office Grove Barn Oxen End Little Bardfield Essex CM7 4PX Charity Registration Number 1181945 Bankers CAF Bank 25 Kings Hill Avenue West Malling Kent ME19 4JQ Independent Examiner N Forsyth FCA Lambert Chapman LLP Chartered Accountants and Registered Statutory Auditors 3 Warners Mill Silks Way Braintree Essex CM7 3GB
Page 1
The Charity of Sarah Bernard
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.
Trustees
J H Simpson
L Vohmann
M K Gardiner
M Carter
G Cutmore
Objectives and activities
Objects and aims
The charity's objective is the provision of housing for the benefit of poor widows or spinsters, poor married couples, bachelors or widowers who are resident in the ancient parish of Bardfield or within a distance of 10 miles from the boundary of the Parish.
Objectives, strategies and activities
The weekly maintenance contribution was reviewed and increased to £110 per week with effect from 1st January 2021.
The project to replace all kitchens and rewire all five houses was completed with the carrying out of those works at No 5. Other works including the redecoration and re-flooring of the whole of the ground floor of No 5 were also carried out.
Public benefit
The Trustees are aware of the requirement to act in public benefit and feel that this is being achieved through the work done in acting towards the aims of the Charity.
The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Page 2
The Charity of Sarah Bernard
Trustees' Report
Financial review
Policy on reserves
An Extraordinary Repair Fund was set up, initially within the Charity of Mrs Sarah Bernard, following a scheme of the Charity Commission in April 1963. This fund (designated as such) together with monies on account with CAF and COIF, represent accumulations of income which the Trustees consider appropriate by way of reserves.
The Trustees fully recognise the need to maintain an appropriate level of reserves. A policy has been adopted that reserves should be maintained at a sufficient level to cover:
-
the loss of 6 months' operating income;
-
the estimated costs of planned building projects identified over a five year cycle; and
-
the estimated costs of covering potential risks which are uninsured or specifically excluded from the Charity's insurance policies.
This policy is reviewed annually by the Trustees.
Taking into account the estimated cost of rewiring and new kitchens the reserves required exceeded the funds held and it was in order to maintain that level of reserves that external funding was sought.
The Trustees maintain detailed and prioritised Schedules for the maintenance and improvement of the Almshouses for the benefit of current and future residents.
The Schedules are based on regular inspections by the Trustees themselves and professional survey approximately every 5 years.
Trustees regularly monitor the cash position and that of the Charity's reserves and are satisfied that these conform to the Charity Commission Guidelines (CC19) and that current cash flows are sufficient to meet foreseeable needs and contingencies.
Structure, governance and management
Nature of governing document
The Charity constitutes a Charitable Incorporated Organisation and is controlled by its governing document which is a Foundation model constitution.
The Charity was previously registered as the "Charity of Mrs Sarah Bernard", charity registration number 209558. Further to the Trustees' decision in 2017 to transfer to a Charitable Incorporated Organisation, a draft constitution of the new charity, “The Charity of Sarah Bernard”, was registered with the Charity Commission on 8th February 2019 and an Order of the Charity Commission dated 18th May 2019 authorised the transfer of assets (including permanent endowment) to the new charity. Notification of Merger was entered in the register of Mergers held by the Charity Commission on 2 September 2020, thereby concluding matters in connection with the formation of the Charitable Incorporated Organisation.
Organisational structure
The Charity is managed by the Charity Trustees who meet on a regular basis to discuss the Charity's activities and ensure that it continues to fulfil its objects.
Page 3
The Charity of Sarah Bernard
Trustees' Report
Major risks and management of those risks
Risk management
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
To fulfil this duty the Trustees have created a schedule of the risks they have identified, noting action taken or required in respect of each risk individually. The schedule is kept under constant review and is in any event reviewed annually at a meeting of the Trustees. It is updated with any newly identified risks and/or action required as necessary.
The risks identified range from those relating to the trustee body itself and charitable activities to those relating to the financial activities of the charity and its legal obligations.
The annual report was approved by the trustees of the charity on 28 September 2021 and signed on its behalf by:
......................................... J H Simpson Trustee
Page 4
The Charity of Sarah Bernard
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
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 proper accounting records that 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 28 September 2021 and signed on its behalf by:
......................................... J H Simpson Trustee
Page 5
The Charity of Sarah Bernard
Independent Examiner's Report to the trustees of The Charity of Sarah Bernard
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 7 to 19.
Respective responsibilities of trustees and examiner
As the charity’s trustees of The Charity of Sarah Bernard you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the The Charity of Sarah Bernard's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) 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 to believe that in any material respect:
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accounting records were not kept in respect of The Charity of Sarah Bernard as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... N Forsyth FCA
Lambert Chapman LLP Chartered Accountants and Registered Statutory Auditors
3 Warners Mill Silks Way Braintree Essex CM7 3GB
4 October 2021
Page 6
The Charity of Sarah Bernard
Statement of Financial Activities for the Year Ended 31 December 2020
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Investment income 4 Total income Expenditure on: Charitable activities 5 Total expenditure (Losses)/gains on investment assets Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted funds £ 333 28,246 3,413 31,992 (24,925) (24,925) (5,882) 1,185 1,185 65,559 66,744 |
Restricted funds £ 2,000 - - 2,000 (2,000) (2,000) - - - - - |
Endowment funds £ - - - - - - (337) (337) (337) 4,518 4,181 |
Total 2020 £ 2,333 28,246 3,413 33,992 (26,925) (26,925) (6,219) 848 848 70,077 70,925 |
Total 2019 £ 50 22,770 3,426 |
|---|---|---|---|---|---|
| 26,246 | |||||
| (59,761) | |||||
| (59,761) 11,239 |
|||||
| (22,276) | |||||
| (22,276) 92,353 |
|||||
| 70,077 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 16.
The notes on pages 10 to 19 form an integral part of these financial statements. Page 7
The Charity of Sarah Bernard
(Registration number: 1181945) Balance Sheet as at 31 December 2020
| Note Fixed assets Tangible assets 10 Current assets Debtors 11 Investments 12 Cash at bank and in hand 13 Creditors: Amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 15 Net assets Funds of the charity: Endowment funds Unrestricted income funds Unrestricted funds Total funds 16 |
2020 £ 1 1,191 84,699 11,114 97,004 (6,392) 90,612 90,613 (19,688) 70,925 4,181 66,744 70,925 |
2019 £ 1 1,184 87,682 8,208 |
|---|---|---|
| 97,074 (4,685) |
||
| 92,389 | ||
| 92,390 (22,313) |
||
| 70,077 | ||
| 4,518 65,559 |
||
| 70,077 |
The notes on pages 10 to 19 form an integral part of these financial statements. Page 8
The Charity of Sarah Bernard
(Registration number: 1181945) Balance Sheet as at 31 December 2020
The financial statements on pages 7 to 19 were approved by the trustees, and authorised for issue on
28 September 2021 and signed on their behalf by:
......................................... J H Simpson Trustee ......................................... L Vohmann Trustee
......................................... M K Gardiner Trustee ......................................... M Carter Trustee
......................................... G Cutmore Trustee
The notes on pages 10 to 19 form an integral part of these financial statements. Page 9
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Accounting policies
Statement of compliance
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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The Charity of Sarah Bernard 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 notes.
Exemption from preparing a cash flow statement
The charity has not included a cash flow statement in these financial statements as the income reported is below the threshold for this to be a requirement.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Judgements
Apart from those judgements involving estimations, management has not made any judgements in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the accounts. There are no key assumptions concerning the future or other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Income and endowments
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Donations and legacies
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Page 10
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
Charitable activities
Income is received as residents' contributions for the provision of housing and is recognised when entitlement has occurred.
Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
Governance costs
These include the costs attributable to the Charity’s compliance with constitutional and statutory requirements.
Taxation
The Charity is potentially exempt from taxation in respect of income or capital gains received to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Improvements to Property
Depreciation method and rate 10% straight line basis
Current asset investments
Current asset investments are included at market value.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
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The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
Trade creditors
Trade creditors include obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Borrowings
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Permanent endowment funds are funds to be retained within the charity and cannot be used at the discretion of the Trustees.
2 Income from donations and legacies
| Donations and legacies; Donations from companies, trusts and similar proceeds 3 Income from charitable activities Provision of housing 4 Investment income Interest receivable and similar income; Interest receivable on bank deposits Other income from current asset investments |
Unrestricted funds Restricted General £ funds £ 333 2,000 333 2,000 Unrestricted funds Restricted General £ funds £ 28,246 - Unrestricted funds Designated £ General £ - 3 3,235 175 3,235 178 |
Total 2020 £ 2,333 2,333 Total 2020 £ 28,246 Total 2020 £ 3 3,410 3,413 |
Total 2019 £ 50 |
|---|---|---|---|
| 50 | |||
| Total 2019 £ 22,770 |
|||
| Total 2019 £ 1 3,425 |
|||
| 3,426 |
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The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
5 Expenditure on charitable activities
| Note Repairs and maintenance Rates and sewerage Light and heat Property insurance Gardening services Sundry expenses National Association of Almshouses Bank charges Governance costs 6 |
Unrestricted funds General £ 14,071 1,865 2,711 1,325 450 - 142 103 4,258 24,925 |
Restricted funds £ 2,000 - - - - - - - - 2,000 |
Total 2020 £ 16,071 1,865 2,711 1,325 450 - 142 103 4,258 26,925 |
Total 2019 £ 46,495 1,712 3,766 1,367 1,377 37 279 360 4,368 |
|---|---|---|---|---|
| 59,761 |
6 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Other fees paid to examiners Legal fees |
Unrestricted funds General £ 822 1,062 2,374 4,258 |
Restricted funds £ - - - - |
Total 2020 £ 822 1,062 2,374 4,258 |
Total 2019 £ 1,860 - 2,508 |
|---|---|---|---|---|
| 4,368 |
7 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
8 Independent examiner's remuneration
| 8 Independent examiner's remuneration |
||
|---|---|---|
| Examination of the financial statements Other fees to examiners Other fees paid to examiners |
2020 £ 822 1,062 |
2019 £ 1,860 |
| - |
9 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
10 Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 11 Debtors Prepayments 12 Current asset investments Listed other shares All current asset investments are held in the UK. 13 Cash and cash equivalents Cash at bank 14 Creditors: amounts falling due within one year Trade creditors Other loans Accruals |
Improvements to property £ 18,856 18,856 18,855 18,855 1 1 2020 £ 1,191 2020 £ 84,699 2020 £ 11,114 2020 £ 2,555 2,625 1,212 6,392 |
Improvements to property £ 18,856 18,856 18,855 18,855 1 1 2020 £ 1,191 2020 £ 84,699 2020 £ 11,114 2020 £ 2,555 2,625 1,212 6,392 |
Total £ 18,856 18,856 18,855 18,855 1 1 2019 £ 1,184 |
|
|---|---|---|---|---|
| 18,856 | ||||
| 18,855 | ||||
| 18,855 | ||||
| 1 | ||||
| 1 | ||||
| 2020 £ 1,191 2020 £ 84,699 2020 £ 11,114 2020 £ 2,555 2,625 1,212 6,392 |
||||
| 2019 £ 87,682 |
||||
| 2019 £ 8,208 |
||||
| 2019 £ 500 2,625 1,560 |
||||
| 4,685 |
Page 14
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
15 Creditors: amounts falling due after one year
| Other loans | 2020 £ 19,688 |
2019 £ 22,313 |
|---|---|---|
Page 15
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
16 Funds
| Unrestricted funds General Designated Total unrestricted funds Restricted funds Endowment funds Permanent Total funds |
Balance at 1 January 2020 £ 2,395 63,164 65,559 - 4,518 70,077 |
Incoming resources £ 28,757 3,235 31,992 2,000 - 33,992 |
Resources expended £ (24,925) - (24,925) (2,000) - (26,925) |
Transfers £ - - - - - - |
Other recognised gains/(losses) £ - (5,882) (5,882) - (337) (6,219) |
Balance at 31 December 2020 £ 6,227 60,517 |
|---|---|---|---|---|---|---|
| 66,744 - 4,181 |
||||||
| 70,925 |
Page 16
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
| Unrestricted funds General Designated Total unrestricted funds Restricted funds Endowment funds Permanent Total funds |
Balance at 1 January 2019 £ 2,160 81,213 83,373 5,000 3,980 92,353 |
Incoming resources £ 22,996 3,250 26,246 - - 26,246 |
Resources expended £ (34,761) (20,000) (54,761) (5,000) - (59,761) |
Transfers £ 12,000 (12,000) - - - - |
Other recognised gains/(losses) £ - 10,701 10,701 - 538 11,239 |
Balance at 31 December 2019 £ 2,395 63,164 |
|---|---|---|---|---|---|---|
| 65,559 - 4,518 |
||||||
| 70,077 |
Page 17
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
The specific purposes for which the funds are to be applied are as follows:
Unrestricted Funds
General Funds - general funds represent the balance of unrestricted funds which are available to the charity, being neither currently designated to the Extraordinary Repair Fund, nor restricted, nor permanent endowment. The trustees actively review their reserves policy on an ongoing basis and are aware that they may need to designate further amounts from this fund should the need arise. The trustees are aware that the requirement to review the level of funds in respect of repairs is their primary concern and, as such, are mindful of these reserves.
Designated Funds - the extraordinary repair fund, invested in NAACIF accumulation shares, represents funds allocated by the trustees to meet exceptional repair and maintenance expenditure on buildings as and when required. The trustees actively review the requirement to carry out repairs on an ongoing basis and are aware that further funds may need to be designated from unrestricted funds if necessary. During 2019, £12,000 was physically transferred from the repair fund to enable the work to be carried out; the Trustees also decided that £20,000 of the funds designated for extraordinary repairs should be used to cover the works undertaken in 2019.
Restricted Funds
£2,000 was provided during the year to assist with the renovation work on No.5. The monies were spent in the year and there are no restricted funds held at the Balance Sheet date.
Endowment Funds
The endowment fund represents the investment in NAACIF income shares which form a permanent endowment of the charity and the use of these funds is therefore restricted.
Page 18
The Charity of Sarah Bernard
Notes to the Financial Statements for the Year Ended 31 December 2020
17 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ Designated £ 1 - 32,306 60,517 (6,392) - (19,688) - 6,227 60,517 Unrestricted funds General £ Designated £ 1 - 29,392 63,164 (4,685) - (22,313) - 2,395 63,164 |
Endowment funds Permanent £ - 4,181 - - 4,181 Endowment funds Permanent £ - 4,518 - - 4,518 |
Total funds at 31 December 2020 £ 1 97,004 (6,392) (19,688) |
|---|---|---|---|
| 70,925 | |||
| Total funds at 31 December 2019 £ 1 97,074 (4,685) (22,313) |
|||
| 70,077 |
18 Related party transactions
There were no related party transactions in the year.
Page 19