CHARITY REGISTRATION NUMBER: 1183301
The Cleary Foundation CIO Unaudited Financial Statements 31 March 2022
BURGESS HODGSON LLP
Chartered accountants Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
The Cleary Foundation CIO
Financial Statements
Year ended 31 March 2022
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 5 |
| Statement of financial activities | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 |
The Cleary Foundation CIO
Trustees' Annual Report
Year ended 31 March 2022
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.
Reference and administrative details
Registered charity name The Cleary Foundation CIO Charity registration number 1183301 Principal office 16 Castle Street Dover Kent CT16 1PW
The trustees
Mr Bicker Mr Hannent Mr Gould Mr Guillou-King Independent examiner Andrew Collyer ACA Burgess Hodgson LLP Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
Structure, governance and management
a. CONSTITUTION
The original foundation was created by the late Frederick Ernest Cleary by Deed dated 15th February 1965. From the time of creating the Foundation until his death in June 1984, Mr Cleary made many gifts of cash and investments to the Trust.
On 8 May 2019, The Cleary Foundation CIO was formed under the charitable incorporated organisation structure which is governed by the CIO trust document. All assets and liabilities of the 'old' Foundation (Charity no. 242675) were transferred to the CIO during the period ending 31 March 2020.
b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. When there is a requirement for new trustees, these would be identified and appointed, based on their experience and knowledge, by the remaining trustees.
c. 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 our exposure to the major risks.
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The Cleary Foundation CIO
Trustees' Annual Report (continued)
Year ended 31 March 2022
Objectives and activities
a. POLICIES AND OBJECTIVES
The objectives of the Foundation remain similar to the original Foundation and are set out the CIO trust document which states that the trustees shall hold the trust fund and the income thereof upon trust to pay all proper costs and expenses incurred by the trustees in administering the Foundation and, subject thereto, to pay or apply the income thereof and such part of the capital thereof as the trustees shall in their absolute discretion from time to time think fit for such purposes recognised by the law of England as charitable as the trustees shall from time to time select.
Grant Making Policy
There is an application form on the Foundation's website which charities can apply through, this requests information from the applying charity including its core functions, detail of who will benefit from the charity, the geographical area the charity operates in and details of what project grant funds would be put towards if accepted.
The trustees meet twice a year to consider grant making, investment and all matters relevant to the administration of the Foundation.
When the trustees are discussing grant making, the review will consider a wide variety of factors including but not limited to environmental, social and governance impacts. A majority decision will be needed for grants to be approved.
Achievements and performance
a. REVIEW OF ACTIVITIES
The trustees intend to continue to operate as a general grant making charity with emphasis on issues local to Kent. On 8 May 2019, this new charity under the same name has been formed adopting the Charitable Incorporated Organisation format with common objectives to The Cleary Foundation, with the assets transferred to this new entity to continue the good work of the charity.
All grants made were to charitable causes, and therefore all made for the public benefit and within the Charity's objectives.
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The Cleary Foundation CIO
Trustees' Annual Report (continued)
Year ended 31 March 2022
Financial review
a. RESULTS FOR THE YEAR
The results for the year are shown from page 6 of the financial statements. The trustees are satisfied with the state of the Foundation's affairs.
b. RESERVES POLICY
From the formation of the Foundation funds have been accumulated and invested to produce an income to enable the trustees to fulfill the objectives of the Foundation. The invested assets are regarded as long term capital investments although the funds of the Foundation are unrestricted. As at the balance sheet date the Trust’s total funds stood at £1,133,010 (2021: £1,173,296). The Trust’s reserves total £868,027 (2020: £874,820), this figure is arrived at after removing the long term capital investments of £266,083 (2020: £298,476).
c. INVESTMENT POLICY AND OBJECTIVES
The charity's investments are managed by AFH Wealth Management. The Charity intends to keep a mix of both quoted investments and cash to cover current and future cash flow requirements.
Plans for future periods
a. PUBLIC BENEFIT
The principal objects of the charity are set out in the CIO document as previously stated. The trustees confirm they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant policy for the forthcoming year.
The Cleary Foundation CIO meets the definition of a public benefit entity under FRS 102.
b. GOING CONCERN
The Trustee has evaluated all subsequent events or transactions for potential recognition or disclosure through to the date on which these financial statements were signed and have determined that there were no additional subsequent events requiring adjustment to or disclosure in the Scheme’s financial statements. As a result of this review and the matters referred to above, the Trustee consider that the preparation of these financial statements on the going concern basis is appropriate.
In particular, the review considered the Coronavirus outbreak and the conflict in Ukraine and the potential impact of this in relation to the Charity and in particular it's investments. The Trustee has designed and implemented the Scheme’s investment strategy taking a long term view, and have built in resilience to withstand short term fluctuations. On review, the impact of the Coronavirus pandemic has now largely subsided, and the Charity's assets had a negligible exposure to Russia and Ukraine. The situation will continue to be monitored closely, with regular liaisons with the investment adviser to consider any necessary actions to respond to the emerging issues.
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The Cleary Foundation CIO
Trustees' Annual Report (continued)
Year ended 31 March 2022
The trustees' annual report was approved on 18 January 2023 and signed on behalf of the board of trustees by:
Trustee
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The Cleary Foundation CIO
Independent Examiner's Report to the Trustees of The Cleary Foundation CIO
Year ended 31 March 2022
I report to the trustees on my examination of the financial statements of The Cleary Foundation CIO ('the charity') for the year ended 31 March 2022.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements 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 as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable 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.
Andrew Collyer ACA Burgess Hodgson LLP Independent Examiner
Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN 18 January 2023
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The Cleary Foundation CIO
Statement of Financial Activities
Year ended 31 March 2022
| 2022 | 2022 | 2021 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Investment income | 4 | 29,110 | 29,110 | 26,662 |
| --------------------------- | --------------------------- | --------------------------- | ||
| Total income | 29,110 | 29,110 | 26,662 | |
| =========================== | =========================== | =========================== | ||
| Expenditure | ||||
| Expenditure on charitable activities | 5,6 | (37,003) | (37,003) | (28,951) |
| --------------------------- | --------------------------- | --------------------------- | ||
| Total expenditure | (37,003) | (37,003) | (28,951) | |
| =========================== | =========================== | =========================== | ||
| Net (losses)/gains on investments | 7 | (32,393) | (32,393) | 69,637 |
| --------------------------- | --------------------------- | --------------------------- | ||
| Net (expenditure)/income and net movement in funds | (40,286) | (40,286) | 67,348 | |
| =========================== | =========================== | =========================== | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 1,173,296 | 1,173,296 | 1,105,948 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 1,133,010 | 1,133,010 | 1,173,296 | |
| ========================================= | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 8 to 13 form part of these financial statements.
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The Cleary Foundation CIO
Statement of Financial Position
31 March 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Investments | 11 | 266,083 | 298,476 |
| Current assets | |||
| Debtors | 12 | 831,997 | 822,390 |
| Cash at bank and in hand | 36,030 | 54,180 | |
| -------------------------------- | -------------------------------- | ||
| 868,027 | 876,570 | ||
| Creditors: amounts falling due within one year | 13 | 1,100 | 1,750 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 866,927 | 874,820 | |
| ----------------------------------------- | ----------------------------------------- | ||
| Total assets less current liabilities | 1,133,010 | 1,173,296 | |
| ----------------------------------------- | ----------------------------------------- | ||
| Net assets | 1,133,010 | 1,173,296 | |
| ========================================= | ========================================= | ||
| Funds of the charity | |||
| Unrestricted funds | 1,133,010 | 1,173,296 | |
| ----------------------------------------- | ----------------------------------------- | ||
| Total charity funds | 14 | 1,133,010 | 1,173,296 |
| ========================================= | ========================================= |
These financial statements were approved by the board of trustees and authorised for issue on 18 January 2023, and are signed on behalf of the board by:
Trustee
The notes on pages 8 to 13 form part of these financial statements.
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The Cleary Foundation CIO
Notes to the Financial Statements
Year ended 31 March 2022
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 16 Castle Street, Dover, Kent, CT16 1PW.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The Trustees believe there are no material uncertainties about the charity's ability to continue as a going concern.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or
commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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The Cleary Foundation CIO
Notes to the Financial Statements (continued)
Year ended 31 March 2022
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
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The Cleary Foundation CIO
Notes to the Financial Statements (continued)
Year ended 31 March 2022
3. Accounting policies (continued)
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Loans and borrowings are initially recognised at transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
4. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Bank interest receivable | 3 | 3 | 22 | 22 |
| Other interest receivable | 29,107 | 29,107 | 26,640 | 26,640 |
| --------------------------- | --------------------------- | --------------------------- | --------------------------- | |
| 29,110 | 29,110 | 26,662 | 26,662 | |
| =========================== | =========================== | =========================== | =========================== | |
| Expenditure on charitable activities by fund type | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Office & admin | 1,180 | 1,180 | 1,549 | 1,549 |
| Grants | 34,350 | 34,350 | 24,852 | 24,852 |
| Support costs | 1,473 | 1,473 | 2,550 | 2,550 |
| --------------------------- | --------------------------- | --------------------------- | --------------------------- | |
| 37,003 | 37,003 | 28,951 | 28,951 | |
| =========================== | =========================== | =========================== | =========================== |
5. Expenditure on charitable activities by fund type
6. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Support | Total funds | Total fund | |
| directly | costs | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Office & admin | 1,180 | – | 1,180 | 1,549 |
| Grants | 34,350 | – | 34,350 | 24,852 |
| Governance costs | – | 1,473 | 1,473 | 2,550 |
| --------------------------- | ----------------------- | --------------------------- | --------------------------- | |
| 35,530 | 1,473 | 37,003 | 28,951 | |
| =========================== | ======================= | =========================== | =========================== |
7. Net (losses)/gains on investments
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Gains/(losses) on listed investments | (32,393) | (32,393) |
69,637 | 69,637 |
| =========================== | =========================== | =========================== | =========================== |
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The Cleary Foundation CIO
Notes to the Financial Statements (continued)
Year ended 31 March 2022
8. Independent examination fees
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the independent examiner for: | ||
| Independent examination of the financial statements | 1,100 | 1,000 |
| ======================= | ======================= |
9. Staff costs
There were no staffs costs incurred during the current and prior period.
The average head count of employees including Trustees during the period was 4 (2021: 4).
No employee received employee benefits of more than £60,000 during the current or prior period.
10. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees in the current or prior year.
11. Investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 April 2021 | 298,476 |
| Additions | – |
| Fair value movements | (32,393) |
| -------------------------------- | |
| At 31 March 2022 | 266,083 |
| ================================ | |
| Impairment | |
| At 1 April 2021 and 31 March 2022 | |
| Carrying amount | |
| At 31 March 2022 | 266,083 |
| ================================ | |
| At 31 March 2021 | 298,476 |
| ================================ |
All investments shown above are held at valuation.
Financial assets held at fair value
The investments represent unitised funds which are valued based upon the market published data.
12. Debtors
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Other debtors | 831,997 | 822,390 |
| ================================ | ================================ |
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The Cleary Foundation CIO
Notes to the Financial Statements (continued)
Year ended 31 March 2022
12. Debtors (continued)
The debtors above include the following amounts falling due after more than one year:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Other debtors | 522,125 | 562,125 |
| ================================ | ================================ | |
| Creditors: amounts falling due within one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Accruals and deferred income | 1,100 | 1,750 |
| ======================= | ======================= |
13. Creditors: amounts falling due within one year
14. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | ||||||
| At | Gains and | 31 | March 20 | |||
| 1 April 2021 | Income | Expenditure | losses | 22 | ||
| £ | £ | £ | £ | £ | ||
| General funds | 1,173,296 | 29,110 | (37,003) | (32,393) | 1,133,010 |
|
| ========================================= | =========================== | =========================== | =========================== | ========================================= | ||
| At | ||||||
| At | Gains and | 31 | March 20 | |||
| 1 April 2020 | Income | Expenditure | losses | 21 | ||
| £ | £ | £ | £ | £ | ||
| General funds | 1,105,948 | 26,662 | (28,951) | 69,637 | 1,173,296 | |
| ========================================= | =========================== | =========================== | =========================== | ========================================= | ||
| Analysis of net assets between funds | ||||||
| Unrestricted | Total Funds | |||||
| Funds | 2022 | |||||
| £ | £ | |||||
| Investments | 266,083 | 266,083 | ||||
| Current assets | 868,027 | 868,027 | ||||
| Creditors less than 1 year | (1,100) | (1,100) | ||||
| ----------------------------------------- | ----------------------------------------- | |||||
| Net assets | 1,133,010 | 1,133,010 | ||||
| ========================================= | ========================================= | |||||
| Unrestricted | Total Funds | |||||
| Funds | 2021 | |||||
| £ | £ | |||||
| Investments | 298,476 | 298,476 | ||||
| Current assets | 876,570 | 876,570 | ||||
| Creditors less than 1 year | (1,750) | (1,750) | ||||
| ----------------------------------------- | ----------------------------------------- | |||||
| Net assets | 1,173,296 | 1,173,296 | ||||
| ========================================= | ========================================= |
15. Analysis of net assets between funds
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The Cleary Foundation CIO
Notes to the Detailed Statement of Financial Activities
Year ended 31 March 2022
16. Related parties
The Trustees are the ultimate controlling party.
The Cleary Foundation is related to the Bay Trust (Charity No. 1026765) by virtue of Mr A T F Gould and Mr C Bicker, who are trustees for both charities. There is a loan agreement in place between the Cleary Foundation CIO and The Bay Trust. During the period, £Nil (2021: £Nil) was advanced and £19,500 (2021: £118,250) was repaid to the Cleary Foundation CIO. Interest of £29,107 (2021: £26,640) has been charged in the period. At the balance sheet date, the amount due to the CIO by The Bay Trust was £831,997 (2021: £822,390).
The connected Trustees were excluded from all decisions in respect of The Bay Trust.
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