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2021-03-31-accounts

T R U S T E E S R E P O R T & F I N A N C I A L S T A T E M E N T S F O R Y E A R E N D E D 3 1 M A R C H 2 0 2 1

ANNUAL TRUSTEE REPORT & ACCOUNTS| 1

C H A R I T Y A D M I N I S T R A T I O N

B O A R D O F T R U S T E E S / C O M P A N Y D I R E C T O R S Mr Nicholas Stuart Chair Mrs Juliet Hobbs Vice Chair (until 29 April 2021) Mr Rob Douglas Chair of Grants Committee (retired 28 July 2020) Mr David Easson Mr Tim Hewens Retired 31 January 2021 Mrs Elizabeth Kennedy Chair of Grants Committee (from 19 June 2021) Mr Graham Mann Resigned 29 July 2021 Mr Robert Mills Vice Chair (from 29 April 2021) Mr Dennis Pillay Appointed 30 April 2020 Mr Eduardo Rios Resigned 31 January 2021 Mrs Kellie Scott Appointed 30 April 2020 Mr Paul Tajasque Chair of F&GP Committee (from 19 June 2021) Mr Jim Vizzini Chair of F&GP Committee (resigned 7 June 2021) Ms Alexandra Fitzpatrick Appointed 29 April 2021 Mr Andrew Button-Stephens Appointed 29 April 2021 Ms Sarah Tomkins Appointed 29 April 2021

C H I E F E X E C U T I V E & C O M P A N Y S E C R E T A R Y

Mrs Jackie Lodge

B A N K E R S

REGISTERED ADDRESS

Charities House 1 & 2 The Quintet Churchfield Road Walton-on-Thames Surrey KT12 2TZ

REPORTING CHARITY

Walton on Thames Charity 1185959

LINKED CHARITY

Walton on Thames Charity 1185959-1

COMPANY REGISTRATION NUMBER 12202541

REGULATOR OF SOCIAL HOUSING REGISTERED NUMBER A0157

Barclays Bank Plc, 8-12 Church Street, Walton on Thames, Surrey KT12 2QX

A U D I T O R S

Menzies, Centrum House, 36 Station Road, Egham, Surrey TW20 9LF

S O L I C I T O R S

Moore Barlow, The Oriel, Sydenham Road, Guildford, Surrey GU1 3SR

S U R V E Y O R

Curchods, Portmore House,54 Church Street, Weybridge, Surrey KT13 8DP

I N V E S T M E N T M A N A G E R

To December 2020

To December 2020 From January 2021 Rathbone Brothers Plc Cazenove 8 Finsbury Circus, 1 London Wall Place London EC2M 7AZ London EC2Y 5AU

Walton on Thames Charity is alternately referred to as ‘Walton Charity’ or ‘the Charity’ within this report.

*Finance & General Purposes

FOREWORD

N I C H O L A S S T U A R T C H A I R O F T R U S T E E S

The past twelve months have been a year like no other. The COVID-19 pandemic has impacted all our lives, and the work of Walton Charity has never been more important in our local community.

The start of the 2020-21 financial year largely coincided with the start of the first country-wide lockdown[1] . The Trustees were concerned with how best to keep the Charity running and deliver its objectives, so budgets and plans were amended as the new financial year started. Our primary focus was always the welfare of our staff and residents. We all had to rethink our whole way of working and living almost overnight. We were then able to ensure the Charity’s finances were in good shape and that we were able to respond to the increasing needs in our local community.

A year on and we have kept the virus out of our supported housing, and the staff team have been innovative and provided activity packs and online social activities to residents. We also worked with various organisations and schools to support online learning for our local school children during the lengthy school closures. We increased our support for local foodbanks to support those worst affected by the impact of the pandemic. The Charity’s finances have been bolstered by additional funds raised through appeals, corporate support and grant funding. Our four allotment sites remained open throughout the year and provided a haven for many local people during lockdown.

The Trustees were joined by Dennis Pillay and Kellie Scott who have successfully contributed to the Charity via virtual meetings. Eduardo Rios relocated to the USA and had to stand down from the board. Rob Douglas and Tim Hewens both reached the end of their maximum terms of service and retired after nine years as trustees. We are very grateful for their insight and support during their terms of office. At the beginning of 2021, we ran a targeted recruitment campaign and interviewed for new trustees. Three new trustees were appointed in April 2021, bringing a diverse range of new skills to the board.

We have reviewed the Charity’s approach to its investments and changed fund managers. We have appointed Cazenove to manage the Charity’s investment portfolio and have adopted a total return approach and invested in ethical pooled funds. The trustees also made the decision to change auditors, and appointed Menzies with effect from March 2021.

As we emerge from the pandemic, we have a great deal to reflect on. We are still living life with restrictions that seemed unimaginable at the start of 2020 – face coverings, limited social gatherings, lateral flow tests, shops and venues closed for months, hand sanitiser at every turn, virtual meetings, social bubbles, and working from home are all now part of everyday life.

Walton Charity has worked tirelessly throughout the past year to protect our residents and to increase our support to the community at a time when it was most needed. We have awarded over £500K in grants this financial year, in response to increased demands from other charities as well as individuals due to the pandemic. We have also seen the amazing generosity of local people and companies in their support for fundraising appeals to help our community during this exceptional year.

Things are gradually easing, and we can only hope that the light at the end of the tunnel continues to grow. Our belief is that we can take forward what we have learned and from all the good that has come from the past twelve months – the volunteering, the caring, the compassion, the innovation – and refocus on what really matters.

1 Lockdown refers to periods during 2020-21 when schools, shops, offices, public spaces, and leisure facilities across the country were either closed or severely restricted. Social gatherings were not permitted, and the general public were required by law to remain at home unless providing essential services that could not be carried out remotely. The first lockdown phase began on 23 March 2020, and continues to date, to varying degrees, across the country.

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O B J E C T I V E S & A C T I V I T I E S

Walton Charity was formed from an amalgamation of 11 charities which were consolidated under a scheme of administration in 1963. The Charity can trace its origins to before 1212.

More recently, the Charity was incorporated on 12 September 2019, with a new charitable company being established. The non-permanent endowment assets and operating agreements were transferred to the new entity. The new charitable company (registered charity number 1185959, registered company number 12202541) is the reporting entity and is linked to the original endowed charity which is now numbered 1185959-1 (previously 230652).

The Charity's revised objects are, for the public benefit:

The ‘ Area of Benefit ’ shall mean the Ancient Parish of Walton-on-Thames and, subject thereto, elsewhere in the Borough of Elmbridge.

The Trustees have appointed a Chief Executive who is responsible for the operational day-to-day management of staff and services and is accountable to the Trustees. The Board of Trustees agrees the Charity’s plans and budgets and monitors these through regular meetings and reports. On appointment, Trustees receive an induction and on-going trustee development is addressed through presentations at meetings, and circulation of briefings. The Board meets at least 6 times a year and has a committee structure to scrutinise key areas.

Charitable and Public Benefit

Through planning, monitoring and reviewing, the trustees have due regard for the impact of the services provided by the Charity. They have referred to the guidance of the Charity Commission on Public Benefit, and are actively seeking to ensure that resources are maximised for the benefit of those in need in the ‘Ancient Parish of Walton on Thames’, and the wider area of the Borough of Elmbridge.

As part of a strategic review of our communications this year, we have amended some of our core messages:

Our vision … An Elmbridge community where each one of us has the opportunity and support to live a rewarding life, free from poverty and inequality.

Our Mission … Walton Charity is a charitable foundation which tackles both the symptoms and underlying causes of poverty and inequality in Elmbridge, and raises awareness of their impact on

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residents’ lives. Working together with our partners and the community, we initiate and facilitate programmes that deliver tangible and lasting improvements to the quality of life of those living in Elmbridge.

Our Values …

Our six priority areas

Our cross-cutting priority is to tackle childhood poverty in Elmbridge.

At the start of the year, the trustees agreed to prioritise funding to deal with the immediate effects of the pandemic. This ensured the Charity was responsive to the needs of the community during the year, while retaining a focus on those children who were further disadvantaged through poverty and inequality.

How we achieve our vision and work to make a difference

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P L A N N I N G A H E A D & R E S P O N D I N G T O T H E C O V I D - 1 9 P A N D E M I C

Prior to the pandemic, the trustees and staff had undertaken extensive work on reviewing and developing the Charity’s strategic direction and plans. The following organisational objectives were agreed:

During 2020 and into 2021, the trustees agreed the following:

The COVID-19 pandemic has impacted on the Charity – its staff, residents, operations, resources and grant making. We remain committed to the five objectives for the medium/longer term. Our priority for the year 2020/2021 was to ensure that we are responsive to changing local need and ensure effective safeguarding of our staff, residents and resources.

The Charity’s initial priority was to protect the health and wellbeing of its staff, residents, and tenants. In the early months, we were able to respond by providing grants and vouchers to help address shortterm crises for individuals and families. The Charity refocused its resources to meet the needs of the community arising from the pandemic.

A year on, and the future remains uncertain not only in terms of pandemic restrictions, but the longerterm impact on the economy and inequality in our community. The pandemic has laid bare the inequalities in our society, with people from disadvantaged backgrounds being most vulnerable to the health and economic impacts of the crisis.

Walton Charity is committed to tackling poverty and inequality, and we will need to ensure that we are able to respond as the crisis exacerbates some of these pre-existing inequalities. As we emerge from the pandemic the trustees will review the organisational objectives against the emerging and changing needs of our local community.

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A C H I E V E M E N T S & P E R F O R M A N C E

115 people were housed in the Charity’s sheltered accommodation for older people

28 people were housed in Walton Charity’s properties, in partnership with Rentstart and Transform Housing & Support

15 charities and local community groups benefited from co-location in Charites House offices and other subsidised premises

Grants totalling £55,728 were awarded to individuals via our Funding for Individuals, Community Allotment and resident funding programmes

£91,669 of funding was awarded to 11 local schools and 10 organisations (via Opportunities and Delegated grants)

£410,182 of Community & COVID-19 grants were committed – an almost three-fold financial increase on the previous year

521 allotment plots were managed, benefiting 389 tenants

33 people benefited from the Community Allotment & Woodlands Project

1,709 food parcels were delivered, benefitting 4,712 local vulnerable people

£12,630 was donated by local companies

£40,674 was raised via our COVID-19 Response Appeal (June 2020-March 2021)

£8,717 was raised via our Computers for Kids Appeal (Dec 2020-March 2021)

1.1K Twitter followers – a 10% increase from last year

12% increase in visits to our website

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H O U S I N G

We believe there needs to be more affordable housing for local people. We are committed to working with the local community to find ways to increase housing for local people who find themselves priced out of the expensive local housing market.

We have a long and proud history of providing housing, with our original almshouses dating from the mid-1700s. Our two current housing schemes, Mayfield and Fenner House, are at the core of Walton Charity, and we are proud to support and assist people who wish to live independently but without the various responsibilities or unplanned financial costs associated with home ownership.

During 2020-2021, 115 people were housed at Mayfield & Fenner House

During the last year, our focus was on ensuring the safety and wellbeing of our residents in light of the higher risks posed by the COVID-19 virus to older people. Our property staff team followed strict guidelines to minimise transmission and to maintain high standards of cleanliness throughout the buildings. A year on and we are pleased to report we had no reported cases of COVID-19 within our resident population.

We switched our support calls to virtual to protect residents from non-essential contact during the three lockdowns. Our Planned Preventative Maintenance (PPM) programme was deferred while restrictions were in place, to allow us to focus on essential maintenance and cleaning.

We suspended the letting of flats during the first and third lockdowns due to high local COVID-19 infection rates. Refurbishing flats took longer than planned, due to shortages of some building materials as well as restrictions on working practices. Despite all this, we managed to maintain an occupancy rate of almost 93% throughout the year.

The staff team worked throughout the year to provide additional support by phone, and a dynamic programme of activities and celebratory events were delivered in ‘packs’ to residents’ doors. Residents were supported in the first lockdown via shopping and prescriptions services, with home deliveries provided by Together Transport Services to those who had been advised to remain at home in order to shield themselves from potential infection.

Later in the year, start-up social enterprise Together Transport Services was unable to operate due to the ongoing restrictions, and decided not to continue with their plans to develop a local community transport service.

The cost of living and housing in particular are disproportionately high in Elmbridge, making it increasingly difficult for people on low earnings to afford housing locally. Walton Charity works with local housing support charities, Rentstart and Transform Housing & Support, to support people who are homeless, at risk of homelessness or moving on from hostel accommodation.

During 2020-21, 28 people were housed at our houses in multiple occupation

The Charity owns four houses in the local area which provides 14 rooms for non-statutory homeless people. Occupancy of these properties is high, with all four of the houses now being managed by Rentstart.

The Charity also owns a former office building which it recently converted to provide three twobedroom flats in central Walton. The three flats provide high quality affordable housing for local people, with support provided by Transform Housing Charity. These flats were made available for occupation leading up to the start of the pandemic.

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At the start of the pandemic Walton Charity worked with the local authority and our key partners, Rentstart and Transform Housing, to swiftly respond to find housing for people who were either street homeless or in night shelters. The collective response demonstrates the power of working collaboratively with a shared goal.

There are still government measures in place to protect residents from eviction and support those who cannot work through a furlough scheme. As these support measures come to an end during 2021, the concern is that the demand for affordable housing will increase further.

During the year, the trustees have established a property working group to consider the Charity’s role in acquiring and developing further homes for local people. Walton Charity is even more committed to doing what it can to work in partnership with others to facilitate affordable housing for local people.

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C O M M U N I T Y G R A N T S

Walton Charity awards grants to local charitable organisations, schools and social enterprises. Our funding is aimed at addressing inequalities in Elmbridge. We are open to a wide range of funding requests, including service delivery, capacity development, core costs, mergers or collaborations, and policy development. We are particularly interested in funding initiatives which aim to have a sustainable or transformative impact on people’s lives.

During the year, we refocused our grant awards on emergency support for increased (and adaptations to) service delivery and bridge funding, to help organisations manage the challenges created by the pandemic. We awarded more grants and spent more than in any year since the launch of our grant funding programme in 2013.

The pandemic has laid bare existing inequalities both in terms of health, economic and digital poverty and disadvantage. Reviewing our funding according to our main themes, we have awarded significant funding to alleviate child poverty, thanks to the funds raised through our fundraising appeals. A quarter of our funding went to schools to provide hardware for children without access to technology at home, enabling them to participate in lessons remotely. Mental health, loneliness and isolation were the other areas where we were pleased to allocate much-needed funding to those disproportionately affected by the pandemic.

We ma y have a ll been in the same storm… but we have been through this in very different boa ts

GASP Motor Mechanic project

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During 2020-2021, £410,182 of Community and COVID-19 Grants were committed, of which a sample is shown below

Organisation
Project
Amount		 Organisation
Project
Amount		 Organisation
Project
Amount
Surrey Drug and Alcohol Service Additional telephone counselling (COVID-19) £4,000
Painting World Silver Craft kits for self-isolating older people (COVID-19) £900
Surrey Family & Mediation Services Bridge funding (COVID-19) £10,000
Hersham Youth Trust Overheads support (COVID-19) £2,250
WoTTA First year’s maintenance costs for CIL-funded Ashley Park play area £2,898
Sight for Surrey Adapting services due to COVID-19 £3,000
Citizens Advice Elmbridge West Capacity-building project (COVID-19) £40,000
Three Rivers Academy Hardware to support adapted school set-up for COVID-19 £31,000
Samaritans Bridge funding (COVID-19) £5,000
Three Rivers Academy Online academic learning for disadvantaged sixth form students
(COVID-19) (£5,000 donated by corporate donor)		 £7,500
Citizens Advice Elmbridge West Youth Citizens Advice Project £60,000
Home Start Elmbridge Bridge Funding (COVID-19) £15,000
EIKON Bridge Funding (COVID-19) £10,000
Bell Farm Primary School Teacher Wellbeing Fund (COVID-19) £665
Crossroads Respite care (£10,000 in match-funding from Asprey Healthcare and
Walsingham Care) (COVID-19)		 £15,000
Cobham Free School Computer hardware (COVID-19) £800
Bell Farm Primary School 30 laptops and connection devices for use by disadvantaged pupils
(COVID-19)		 £9,870
SATRO Mobile classroom at NESSSS £5,000
Wellbeing Supervisor Parenting classes £22,300
CHEER Upgrade of IT system to support online befriending and other services
(COVID-19)		 £4,860
Walton Oak Primary School Early language intervention (COVID-19) £4,822
St Andrew’s Primary School Computer hardware (COVID-19) £1,400
Elmbridge Borough Council Christmas meals on wheels £223
St James Primary School Computer hardware (COVID-19) £3,970
Walton Oak Primary School KS1 catch-up intervention (COVID-19) £14,744
Manby Lodge Infant School Computer hardware (COVID-19) £450
Cook4Care Meals for young carers and their families £4,000
Citizens Advice East Elmbridge Debt Advice Service (COVID-19) £30,000
EIKON Youth Specialist at Three Rivers Academy £11,000
KT12 Football Project KT12 Football Project £5,000
GASP Motor Mechanic Courses £13,200
Walton and Hersham Foodbank Core costs £19,078
Together Transport Service Driver £4,387

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Grants by type (£)
Transport
1% Housing
0%
Financial Poverty
25%
Child Poverty
34%
Loneliness and Isolation
8%
Health and Well Being
6%
Educational Attainment
26%
----- End of picture text -----

Clockwise L-R: KT12 Football Project, Three Rivers Academy, SATRO, Samaritans

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I N D I V I D U A L G R A N T S

For some people, the pandemic has been a time of working from home, spending less on travel and not going out. For others this has been a time of reduced income, less working hours, and difficult circumstances at home with less support.

Walton Charity supports local people with a wide range of funding, from helping people at times of financial difficulty with essential household items, to assisting with training and associated costs for those trying to move into work. The Charity also supports children and young people from low-income families by providing funding through schools.

Over the past year it has never been more important to get support to people when they need it

We have well-established relationships with key partners to ensure that grant funding reaches those most in need – at a time when it is most needed.

Opportunities Funds are being set up with increasing numbers of local schools, with a focus on those with the highest proportion of pupil premium students in the borough.

Delegated Funds have been set up with local organisations across Elmbridge, including those supporting families, young people and residents leaving the criminal justice system.

In the last year, £91,669 of funding was awarded to 11 local schools and 10 organisations.

Well-established partnerships with local charities, schools and faith groups has enabled Walton Charity to respond to the changing impact of the pandemic throughout the year. From laptops and tablets for children, to food vouchers for families in crisis, Walton Charity has worked with our partners to support individuals through this challenging time.

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A L L O T M E N T S

Allotments are a key part of Walton Charity’s history, as well as our future. The Charity provides low cost, well managed allotments to enable local people to grow fresh fruit and vegetables, as well as providing the opportunity to be a part of a community within the Charity’s four allotment sites. The allotments are situated on Terrace Road, Rydens Road and Burhill Road.

Our allotments remained open despite the restrictions brought in during the pandemic. With people working from home and most other venues and activities highly restricted, allotments became more popular than ever. The allotments remained a constant haven during these difficult months.

The Charity currently manages 521 active allotment plots, which are let to 389 tenants.

In line with many other allotment charities, the trustees have agreed that we will work towards a model whereby the allotment tenants have greater involvement in the running of the allotments. When successfully implemented, self-management schemes ensure greater control of a site by allotment holders, and tend to work to the benefit of the site. Self-management fulfils the twin aims of ensuring greater control of sites by allotment holders and reducing the land holders’ administrative responsibilities.

From our research and talking to various allotment associations who have moved to self-management, there are a number of benefits from their perspective:

A group of allotment tenants has been elected as representatives by tenants across all four sites, to take on this role and good progress is being made on setting up the relevant agreements and handover of day-to-day operations. Walton Charity will remain very much in a supportive role to enable and support the new allotment management team, and has set aside a budget to provide grant support to help develop the allotments further.

Community Allotment

The Community Allotment is a thriving community resource which enables local people who are new to gardening or who cannot take on an individual allotment plot themselves, to enjoy the benefits of growing fresh fruit and vegetables, and to benefit from the physical activity of gardening. The Charity runs bi-weekly supported sessions specifically targeting those facing barriers associated with physical and mental health conditions or social isolation.

33 people benefited from the Community Allotment and Woodland Project in 2020-21

Due to the challenges of the COVID-19 pandemic, the Charity had to restrict access to the community allotment for a time but set up virtual social gathering to help support its members. Charity staff provided regular online sessions for our community allotment members for a period of five months during the winter, when much of the country was in lockdown. We know from feedback that these activities helped those individuals during the prolonged periods of isolation.

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Both the woodland and allotment sites have benefited from improved estate management, especially with regard to tree surveys and planned programmes of tree work. Work parties to deal with overgrown areas and cutting back tree-damaging ivy have been put on hold during the pandemic, but is hoped that these will resume in line with the easing of restrictions.

Walton Charity has also provided operational support for the allotments belonging to Oatlands 19141919 War Memorial Charity.

We have been working on plans to create greater social value from our land and estates. We are planning a Tree Canopy Project which will be located in our woodlands at Home Farm on Rydens Road, and will offer:

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C O M M U N I C A T I O N

The Charity is committed to investing in its external communications and research to not only raise our profile, but also our reputation as an independent voice of authority regarding inequality.

Over the last year, we have seen a 10% increase in Twitter followers from the previous year, and we now have more than 1,100 followers.

Our website saw a 12% increase in visits with over 13,000 visits during the year. We also set up new social media channels to reach new audiences.

During the year we reviewed our key messaging and refocused on poverty and inequality.

We know that the COVID-19 pandemic has a greater impact on disadvantaged communities and that the impacts will be felt disproportionately. The extent of the impact is not known, so it is vital that we are able to communicate and engage with our local community as we emerge from the pandemic.

E N A B L I N G & F A C I L I T A T I N G

Some years ago, the Charity’s trustees took the strategic decision to shift their remit away from complex service provision and instead to increase its role in enabling and facilitating other charities and groups and their direct service delivery. As a permanently endowed charity, trustees recognised the need to take a long-term view and to develop the Charity’s capital assets in a way that they remain flexible, responsive and have a degree of ‘future proofing’. The Charity has since been able to focus on increasing grants, facilities and support for other charities and community groups.

Foodbank

The Walton & Hersham Foodbank is part of a nationwide network of foodbanks that provide emergency food and support to local people in crisis. The project is managed by local churches and community groups, working together towards stopping hunger in our local area. The foodbank works on a voucher system with distribution centres at St. Peter’s Church, Hersham and St. John’s Church, Walton on Thames.

Walton Charity supports the core finances of Walton & Hersham Foodbank via a grant, to ensure the foodbank operation runs smoothly. The Charity also sits on the steering group.

In 2020, Walton and Hersham Foodbank provided 1,709 food parcels to 4,712 people in crisis.

The foodbanks across Elmbridge responded to the pandemic by changing their working practices to protect volunteers, staff and clients, as well as stepping up provision. The Charity increased staff hours and provided supermarket vouchers to Walton & Hersham Foodbank and local churches to supplement food parcels. The delivery model continued to change to reflect regulations and need. There has been incredible support from local people and companies, which meant the Foodbank was well placed to increase its services throughout the year.

Community buildings

The Charity provides community accommodation for local charities at Charities House and several other community properties.

Our community buildings are rented to our community partners, with the Charity subsidising rents in the region of £58K per annum.

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Charities House

Charities House is home to Walton Charity’s main office, and also provides our partners with offices and space for training, client interviews, and meetings. Charities are often unable to afford high commercial rents and the accommodation available is often unsuitable or on a short-term lease. By providing highquality offices and meeting rooms, organisations are able to focus on service delivery to local people

During the pandemic, Walton Charity ensured Charities House remained open to enable the continuity of essential services. We are working to ensure a safe working environment and phased return in line with government guidance.

Our partners at Charities House are:

Other community properties

The Charity provides accommodation to several other smaller local partners at non-commercial rents. The value of this financial subsidy is not reflected in the financial statements. Our partners are:

Walton Charity continues to work with Asprey Healthcare, the owners of Sherwood House residential care home for older people. The premises adjacent to the property had been vacated to make way for the expansion of the care home. However, with care homes in lockdown for much of 2020, and residents unable to meet with relatives and friends, Walton Charity agreed that the care home could use the premises to set up a haven for residents to meet with their families in a COVID-secure environment.

Asprey Healthcare also joined with Walsingham Care and Walton Charity to make a grant to Surrey Crossroads to pay for additional support for people living at home with dementia.

Volunteering and corporate support

Volunteering and corporate volunteer days were cancelled due to the local COVID-19 restrictions that were imposed.

Financial contributions from corporate donors totalled almost £13K for the financial year, and we look forward to welcoming back our corporate volunteers when local government guidelines permit.

Barclays Bank £100K COVID-19 grant

Barclays Bank awarded £100,000 to Walton Charity, to enable us to provide vital practical and emotional support to individuals and families facing financial hardship caused by COVID-19. 100% of this grant has been expended directly to benefit disadvantaged individuals and families in our community. Walton Charity covered support costs related to the delivery of the project.

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S T R U C T U R E , G O V E R N A N C E & M A N A G E M E N T

The Charity Commission has put in place a linking directive with the permanent endowed charity number 1185959-1, with the new incorporated charity number 1185959.

For accountancy and registration purposes, this direction means that:

The linking of the Charities under section 12 is an administrative linkage, for reporting purposes only. It does not change the separate legal status of the two Charities, or the nature of the restricted funds or endowment, and it does not constitute a merger. The trustees are obligated to ensure that the funds of each Charity are still applied solely in accordance with the respective trusts.

The charity called Walton on Thames Charity (“the linked charity”) shall be treated as forming part of the charity called Walton on Thames Charity ('the reporting charity') for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. This direction takes effect for the whole of the financial year of the reporting charity in which it is made.

Trustee meetings

All meetings of the trustees were held virtually to comply with pandemic-related government restrictions. This is in accordance with the Memorandum and Articles of Association section 20.6.

The board of trustees met six times during the year to review performance against targets. The board continues to operate committees to monitor and review two key areas – grants; and finance and general purposes. The trustees establish time-limited working groups to address specific areas of development. The Charity keeps its policies and procedures under review according to an agreed schedule.

The trustees have established a board development action plan. A skills audit was undertaken and a targeted recruitment campaign lead to the successful appointment of three new trustees with specific identified skills.

During the year, the trustees participated in a session on diversity, equity and inclusion (DEI), and have developed a statement and action which will be reviewed at six-monthly intervals.

Walton on Thames Charity is committed to treating everyone with respect and proactively challenging and tackling inequality, injustice and discrimination, in all its forms. As well as advocating positive change in our local community, we are examining how we operate as an organisation to ensure we are doing all we can to be a diverse and inclusive organisation.

The trustees also developed and agreed an ethical positioning statement covering environmental, social and governance issues. As part of this, the trustees confirmed their commitment to the Fundraising Regulators Code of Fundraising Practice.

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F I N A N C I A L R E V I E W

The Charity’s main sources of income are weekly maintenance contributions from the almshouses, other rents, and returns on investments. Trustees were especially concerned with regard to the operational processes for the management of income and debtors, and controls over costs during a time when the pandemic has created additional challenges.

There was an operating loss of income over expenditure from charitable activities of £134K

Depreciation costs were £390K, and there were gains on investments of £4,486K

Due mainly to the significant gains on investments, the total surplus for the year was £4,352K

The Charity’s investment portfolio recovered after the sudden drop in value at the beginning of the financial year due to the impact of the COVID-19 pandemic. Trustees closely monitored the financial position of the Charity and reassessed forecasts and cash flows on a quarterly basis. The trustees were able to meet the increased demand for grants and support throughout the financial year.

Investment policy and performance

The assets of the Charity must be invested in accordance with the Trustee Act 2000.

During the year, the trustees undertook a full review of the Charity’s investments and fund managers. A working group of trustees interviewed four charity-specialist investment managers. After due consideration, the trustees decided to change fund managers and moved the Charity’s portfolio from Rathbones to Cazenove in January 2021. Trustees adopted a total return approach using the audited financial statements dated 31 March 2020, to crystallise the permanent endowment investment at £17,199,274 .

Funds are invested in Cazenove’s Responsible Multi-Asset Fund (RMAF). The RMAF is an ethical pooled fund, and the Charity has two accounts reflecting the permanent endowment and the non-permanent endowment funds.

The trustees have established an investment strategy based on the following criteria:

Objective – balanced return between income and capital – total return

Risk – medium

Mandate – socially responsible investing

The trustees have established a benchmark , a standardised measure against which our fund manager can be evaluated. Cazenove uses the ARC Sterling Steady Growth PCI , which is standardised across the industry and the trustees will monitor performance quarterly.

The overall objectives are to create sufficient income and capital growth to enable the Charity to meet its stated objectives year on year. This should be with due and proper consideration of the future needs of the Charity and the maintenance and enhancement of the value of the invested funds. This is also with a view to the preservation of assets and steady income in normal markets, and to protect against sharp downturns with a fully diversified investment portfolio.

Reserves policy and designation of funds

The Charity must consider the financial risks of managing residential services and its portfolio of land and properties. This is particularly challenging considering the recent impact of the COVID-19 pandemic. The trustees have reviewed its financial commitments as well as future areas of major potential expenditure. Trustees have identified several areas requiring significant funds which include the potential development and acquisition of additional housing, as well as the necessity to be able to provide responsive and possibly increasing community grant funding to address the local impact of the pandemic. As a result, the

TRUSTEES REPORT & FINANCIAL STATEMENTS| 19

trustees have agreed to the allocation of funds to specific designated funds as below:

Trustees have agreed a target for unrestricted reserves of 12 months’ running costs, currently in the region of £2.3m. The level of reserves and designated funds is kept under review throughout the year and in light of any impacts of the pandemic.

Charity funds

The Charity’s assets are categorised and clearly identified in the accounts, and at the financial year end were:

During the period, it has been identified that the allocation of tangible assets between unrestricted funds and the permanent endowment funds was incorrect in the prior year statutory accounts. A prior year adjustment of £595,432 has therefore been made to amend the allocation. As a result, the balance carried forward from the prior year permanent endowment fund is reduced to £21,369,886 from £21,965,318, and the balance carried forward from unrestricted funds is increased to £9,181,821 from £8,586,389.

Financial controls

The Charity has tight financial controls. In addition to a comprehensive risk register, the Charity has in place several system checks, reporting mechanisms and delegated authorities, consistent with best practices which safeguard the integrity of its assets and prevent irregular behaviour that could impair the Charity’s financial sustainability. The accounting procedures are regularly reviewed, updated and approved by the trustees.

The register of risks has been reviewed at regular intervals over the past year to assess the impact of the pandemic on the Charity. This regular monitoring and mitigation of risks has supported decision making for the trustees.

During the year, two risks were identified as ‘very high’ due to the impact of the pandemic:

Only one identified risk remains at ‘high’ – the Charity’s information technology structure. This was highlighted due to the requirements of staff working from home. This risk is being addressed through the development of a more robust IT strategy and an update to IT infrastructure, as well as purchase of additional hardware.

A full review of risks will be undertaken to reassess the wider environment as we emerge from the pandemic.

20 |TRUSTEES REPORT & FINANCIAL STATEMENTS

T R U S T E E S ’ R E S P O N S I B I L I T I E S

The charity’s trustees (who are also the directors of Walton on Thames Charity for the purposes of company law), are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Charity’s trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy, at any time the financial position of the Charity, and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure of information to the auditor

In so far as the trustees are aware at the time of approving our trustees’ annual report:

TRUSTEES REPORT & FINANCIAL STATEMENTS| 21

A C K N O W L E D G E M E N T S & T H A N K S

As always, we would like to say a huge and heartfelt ‘Thanks’ to our board of trustees, volunteers, partners, companies, friends, colleagues, staff and supporters who add value to our work in so many ways. These strong partnerships have been key over the past 12 months, during the COVID-19 pandemic, and we are immensely grateful for the additional help and support for the Charity during these challenging times.

Overall, the Charity has achieved a great deal during the past year, despite the many challenges. The COVID-19 pandemic will no doubt have long-lasting impacts on our community, and Walton Charity remains committed to tackling both the symptoms and underlying causes of poverty and inequality in Elmbridge.

Signed on behalf of the Board of Trustees

Nicholas Stuart

Chair of Trustees

Date: 26th August 2021

22 |TRUSTEES REPORT & FINANCIAL STATEMENTS

WALTON ON THAMES CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALTON ON THAMES CHARITY

Opinion

We have audited the financial statements of Walton on Thames Charity (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 23

WALTON ON THAMES CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALTON ON THAMES CHARITY (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 24

WALTON ON THAMES CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALTON ON THAMES CHARITY (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 25

WALTON ON THAMES CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALTON ON THAMES CHARITY (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Janice Matthews FCA (Senior statutory auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor Centrum House

36 Station Road Egham Surrey TW20 9LF

Date: 23rd September 2021

Page 26

WALTON ON THAMES CHARITY

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income and
endowments from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income and
endowments
Expenditure on:
Raising funds
8
Charitable activities
11
Other expenditure
10
Total expenditure
Net gains/(losses) on
investments
Net income
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought
forward (as restated)
20,21
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2021
£
-
1,205,877
641,972
155,152
2,003,001
117,978
1,780,323
87,824
1,986,125
1,740,317
1,757,193
2,795,797
4,552,990
9,181,821
4,552,990
13,734,811		 Restricted
funds
2021
£
169,329
-
-
-
169,329
-
169,329
-
169,329
-
-
(343,719)
(343,719)
1,075,093
(343,719)
731,374		 Permanent
Endowment
funds
2021
£
-
-
-
-
-
-
150,479
-
150,479
2,745,732
2,595,253
(2,452,078)
143,175
21,369,886
143,175
21,513,061		 Total
funds
2021
£
169,329
1,205,877
641,972
155,152
2,172,330
117,978
2,100,131
87,824
2,305,933
4,486,049
4,352,446
-
4,352,446
31,626,800
4,352,446
35,979,246		 Total
funds
2020
£
26,227
1,200,576
856,772
270,011
2,353,586
79,747
1,757,587
157,052
1,994,386
(2,305,195)
(1,945,995)
-
(1,945,995)
33,572,795
(1,945,995)
31,626,800

All activities relate to continuing operations.

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 30 to 49 form part of these financial statements.

Page 27

WALTON ON THAMES CHARITY REGISTERED NUMBER: 12202541

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current liabilities / assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
19
Total net assets
Charity funds
Permanent Endowment funds
21
Restricted funds
21
Unrestricted funds
21
Total funds		 71,305
159,203
230,508
(368,292)		 2021
£
8,208,514
28,100,623
36,309,137
(137,784)
36,171,353
(192,107)
35,979,246
21,513,061
731,374
13,734,811
35,979,246		 84,055
188,055
272,110
(245,414)		 As restated
2020
£
8,271,502
23,487,562
31,759,064
26,696
31,785,760
(158,960)
31,626,800
21,369,886
1,075,093
9,181,821
31,626,800

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

N H B Stuart J L Hobbs (Chair of Trustees) (Trustee) Date: 26th August 2021

The notes on pages 30 to 49 form part of these financial statements.

Page 28

WALTON ON THAMES CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities Note
Net cash used in operating activities 24
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of investments
Movement of cash account held as part of investment portfolio
Lease interest paid
Loan interest paid
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(97,819)
641,972
(327,142)
(100,000)
(114,837)
(21,804)
(8,634)
69,555
(588)
(588)
(28,852)
188,055
159,203		 As restated
2020
£
(41,399)
856,772
(1,613,310)
-
730,846
(12,508)
-
(38,200)
(530)
(530)
(80,129)
268,184
188,055

The notes on pages 30 to 49 form part of these financial statements

Page 29

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Walton on Thames Charity is an incorporated charity registered with the Charities Commission in England and Wales, charity number 1185959. The address of the principal office of the charity is Walton On Thames Charity Charities House, 2 The Quintet, Churchfield Road, Walton On Thames, Surrey, KT12 2TZ.

2. Linked Charities

By resolution of the board of trustee's, it was agreed that the charitable company appointed as the sole corporate trustee of the permanent endowment of the existing charity; Walton on Thames Charity (“the linked charity”). It holds the legal title of the property, investments assets, liabilities and existing reserves. Walton on Thames Charity (“the incorporated charity”) holds the legal and beneficial title to all non-permanent endowed assets.

A linking directive has been received and accepted by the Charities Commission and the Commission directs that as of 14 April 2020, the charity called Walton on Thames Charity ("the linked charity") shall be treated as forming part of the charity called Walton on Thames Charity ("the incorporated charity") for the purposes of Part 4 (resignation) and Part 8 (accounting) of the Charities Act 2011. The effect of this is the charities are registered under a single registration number and the trustees are required to prepare a single set of accounts for the incorporated charity and the linked charity going forward.

3. Accounting policies

3.1 Basis of preparation of financial statements

As an Almshouse Charity and Registered Social Landlord, the financial statements have been prepared in accordance with the special regime of Part VI of the Charities Act 2011 which permits the financial statements to be prepared in accordance with the 2014 Statement of Recommended Practice Accounting by Registered Social Housing Providers where this is appropriate and with the Statement of Recommended Practice Accounting and Reporting by Charities 2015 for those activities which are not explicitly referred to the 2014 Statement of Recommended Practice Accounting by Registered Social Housing Providers.

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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Walton on Thames Charity 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 financial statements are prepared in sterling which is also the functional currency of the charity and rounded to the nearest pound.

3.2 Going concern

As part of the trustees assessment of going concern, they have prepared cash flow projections for the a significant period. The projections have been prepared on an appropriate basis taking into account feasible assumptions and the current economic conditions that exist.

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to enable to continue in operational existence for the forseeable future. Therefore the trustees believe that going concern basis is appropriate and have prepared the accounts on the going concern basis.

Page 30

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Accounting policies (continued)

3.3 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.

Donations and fundraising events from individuals and sponsors are taken into accounts on the accruals basis. Donations received during the year are recorded as donation income and any deferred income is recognised under accruals and deferred income accordingly.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Revenue related to sheltered housing is recognised to the extent that is probable that the economic benefit will flow to the charity and revenue can be reliably measured. Sheltered housing represents rentals and service charge income and allowances net of losses from vacant accommodation and sundry income.

Other income is recognised in the period in which it is receivable and to the extent to which services have been provided.

3.4 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

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.

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.

3.5 Social Housing Grants (SHG)

SHGs are paid to reduce the cost of development on housing properties. These are shown on the balance sheet and amortised over the expected remaining life of the property. SHGs are repayable under certain circumstances, primarily the sale of a property but will normally be restricted to the net proceeds of the sale. Under current legislation, in most cases, any SHG that arises on the sale of a property can be retained and transferred into a Recycled Capital Grant account and can be used for new development work or major repairs on eligible properties.

Page 31

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Accounting policies (continued)

3.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Properties included in Independent living houses are recorded at cost less Social Housing Grants received. The cost of such properties includes the following:

All invoices and architects' certificates relating to capital expenditure incurred in the year at gross value before retention, are included in the financial statements for the year, provided that the dates of issue or valuation are prior to the year end.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

3.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘net gains/(losses) on investments' in the statement of financial activities.

3.8 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.

3.9 Cash at bank and in hand

Cash at bank and in hand includes cash and cash equivalent.

Page 32

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Accounting policies (continued)

3.10 Liabilities and provisions

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.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

3.11 Pensions

The Charity has a defined contribution pension scheme for the benefit of its employees. Contributions are charged in the income and expenditure account for the period in which it is paid.

3.12 Mortgages

Mortgage loans are advanced by Orchardbrook Limited under the terms of individual mortgage deeds in respect of those developments which have been given approval by Orchardbrook Limited.

3.13 Extraordinary Repairs Fund

Under the terms of the Charity's Trust Deed, an amount is set aside from the charity's income each year for the purpose of providing the extraordinary repair, improvement or rebuilding of the almshouses and other property belonging to the charity.

3.14 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Permanent Endowment funds are restricted capital funds with no power to convert to capital income.

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 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.

Page 33

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies

Donations
Grants
Total 2021
Total 2020		 Restricted
funds
2021
£
51,997
117,332
169,329
26,227		 Total
funds
2021
£
51,997
117,332
169,329
26,227		 Total
funds
2020
£
15,259
10,968
26,227

5. Income from charitable activities

Sheltered housing maintenance contributions
Allotments & other rents
Total 2021
Total 2020
Investment income
Investment dividends & interest
Bank interest
Total 2021
Total 2020		 Unrestricted
funds
2021
£
981,852
224,025
1,205,877
1,200,576
Unrestricted
funds
2021
£
641,735
237
641,972
856,772		 Total
funds
2021
£
981,852
224,025
1,205,877
1,200,576
Total
funds
2021
£
641,735
237
641,972
856,772		 Total
funds
2020
£
1,001,636
198,940
1,200,576
Total
funds
2020
£
855,758
1,014
856,772

6. Investment income

Page 34

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Other incoming resources

Rental income
Total 2020		 Unrestricted
funds
2021
£
155,152
270,011		 Total
funds
2021
£
155,152
270,011		 Total
funds
2020
£
270,011

8. Expenditure on raising funds

Costs of raising income and capital growth

Investment management fees
Total 2020		 Unrestricted
funds
2021
£
117,978
79,747		 Total
funds
2021
£
117,978
79,747		 Total
funds
2020
£
79,747

9. Analysis of grants

Local community grants
Total 2020		 Grants to
Institutions
2021
£
501,851
222,257		 Grants to
Individuals
2021
£
55,728
58,149		 Total
funds
2021
£
557,579
280,406		 Total
funds
2020
£
280,406

Page 35

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of grants (continued)

The Charity has made the following material grants to institutions during the year:

Name of institution
Schools opportunities funds
Delegated funds
Community grants
COVID-19 grant
Learning and development
Community Projects		 2021
£
57,669
34,000
304,811
105,371
-
-
501,851
501,851		 2020
£
36,115
11,648
146,535
18,370
2,949
6,640
222,257
222,257
Schools opportunities funds
Delegated funds
Community grants
COVID-19 grant
Learning and development
Community Projects
Total 2020		 Unrestricted
funds
2021
£
57,669
34,000
240,853
-
-
-
332,522
222,257		 Restricted
funds
2021
£
-
-
63,958
105,371
-
-
169,329
-		 Total
funds
2021
£
57,669
34,000
304,811
105,371
-
-
501,851
222,257		 Total
funds
2020
£
36,115
11,648
146,535
18,370
2,949
6,640
222,257

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WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Other expenditure

Loss on disposal of investments
Total 2020		 Unrestricted
funds
2021
£
87,824
86,512		 Permanent
Endowment
funds
2021
£
-
70,540		 Total
funds
2021
£
87,824
157,052		 Total
funds
2020
£
157,052

11. Analysis of expenditure by activities

Local community support
Total 2020		 Activities
undertaken
directly
2021
£
1,542,552
1,477,181		 Grant
funding of
activities
2021
£
557,579
280,406		 Total
funds
2021
£
2,100,131
1,757,587		 Total
funds
2020
£
1,757,587

Page 37

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Analysis of expenditure by activities (continued)

Analysis of direct costs

Charitable
activities
2021
£
Staff costs
615,341
Depreciation
390,130
Other residential expenses
15,663
Other staff costs
12,297
Rates
24,268
Heating & lighting
96,662
Printing, postage and stationery
6,832
Subscriptions, books & publications
4,431
Insurance
24,270
Motor and travel expenses
1,596
Computer expenses
19,381
Telephone
25,733
Cleaning
31,108
Repairs & maintenance
179,878
Advertising
-
Legal and professional fees
47,880
Auditor's remuneration & accountancy
14,122
Sundry expenses
2,032
Bank charges
286
Loan interest payable
8,634
Bad debts
204
Lease interest payable
21,804
Total 2021
1,542,552
Total 2020
1,477,181
12.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above		 Total
funds
2021
£
615,341
390,130
15,663
12,297
24,268
96,662
6,832
4,431
24,270
1,596
19,381
25,733
31,108
179,878
-
47,880
14,122
2,032
286
8,634
204
21,804
1,542,552
1,477,181
2021
£
7,950
3,250		 Total
funds
2020
£
540,561
344,836
6,939
24,083
24,641
88,975
8,690
7,660
19,990
4,974
5,537
22,061
35,723
250,664
552
60,716
9,018
8,441
462
-
150
12,508
1,477,181
2020
£
9,018
-

Page 38

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
525,202
48,208
41,931
615,341		 2020
£
459,920
41,259
39,382
540,561

The average number of persons employed by the Charity during the year was as follows:

Average employees
The average number of full time equivalent persons employed during the year was:
Average full time employees		 2021
No.
24
2021
No.
17		 2020
No.
23
2020
No.
17

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £60,001 - £70,000 - 1
In the band £70,001 - £80,000 1 -

Pension contribution in respect to that employee were £8,514 (2020: 8,266).

During the year, four individuals made up key management personnel and received remuneration of £183,517 (2020 - £180,383).

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

Page 39

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
properties
£
11,597,200
327,142
-
11,924,342
3,603,023
321,513
-
3,924,536
7,999,806
7,994,177		 Motor
vehicles
£
77,030
-
(63,568)
13,462
71,674
2,692
(63,568)
10,798
2,664
5,356		 Fixtures and
fittings
£
1,532,050
-
-
1,532,050
1,260,081
65,925
-
1,326,006
206,044
271,969		 Total
£
13,206,280
327,142
(63,568)
13,469,854
4,934,778
390,130
(63,568)
5,261,340
8,208,514
8,271,502
Freehold properties
Motor vehicles
Fixture and fittings
Total 2021
Total 2020 as restated		 Unrestricted
funds
2021
£
3,851,052
2,664
41,011
3,894,727
4,100,890		 Permanent
Endowment
funds
2021
£
4,148,754
-
165,033
4,313,787
4,170,612		 Total
funds
2021
£
7,999,806
2,664
206,044
8,208,514
8,271,502		 As restated
Total
funds
2020
£
7,994,177
5,356
271,969
8,271,502

Page 40

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021		 Extraordinary
Repair Fund
£
2,295,402
-
(2,295,402)
-
-		 Main Fund
£
21,192,160
35,551,326
(33,128,911)
4,486,048
28,100,623		 Total
£
23,487,562
35,551,326
(35,424,313)
4,486,048
28,100,623
Extraordinary Repair Fund
Main Fund
Total 2021
Total 2020		 Unrestricted
funds
2021
£
-
10,169,975
10,169,975
5,213,195		 Restricted
funds
2021
£
-
731,374
731,374
1,075,093		 Permanent
Endowment
funds
2021
£
-
17,199,274
17,199,274
17,199,274		 Total
funds
2021
£
-
28,100,623
28,100,623
23,487,562		 Total
funds
2020
£
2,295,402
21,192,160
23,487,562

Investments are held primarily to provide an investment return for the Charity.

During the year, there has been disposal of the full amount of extraordinary repair to the main fund. In addition, there has been change in investment managers and the way the investments are held as disclosed in the aforementioned trustees report.

17. Debtors

Due within one year
Rent receivable
Prepayments and accrued income		 2021
£
45,240
26,065
71,305		 2020
£
37,227
46,828
84,055

Page 41

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and rent in advance
Grant payable		 2021
£
40,295
21,936
129,633
176,428
368,292		 2020
£
49,946
22,723
72,338
100,407
245,414

19. Creditors: Amounts falling due after more than one year

Mortgage loans
Deferred grants		 2021
£
81,784
110,323
192,107		 2020
£
82,372
76,588
158,960

The mortgage loan is secured on properties at 34, 36 and 38 Severn Drive, is repayable by annual installments of interest and capital totaling £9,225, bears interest at 10.50% per annum and is repayable by 2047.

20. Prior year adjustments

The opening reserves for unrestricted funds and permanent endowment funds have been adjusted by £595,432 to correct the allocation between the tangible fixed assets movement between funds. As a result, the balance carried forward from prior year permanent endowment fund is reduced to £21,369,886 from £21,965,318 and balance carried forward from unrestricted fund is increased to £9,181,821 from £8,586,389.

Page 42

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Grant
commitments
Development of
Housing
Generating
Income for Grant
Funding
General funds
General Funds
Total
Unrestricted
funds
Permanent
Endowment
Capital reserve
Restricted funds
Extraordinary
repair Funds
COVID-19 and
Community
funds
Total of funds		 As restated
Balance at 1
April 2020
£
500,000
2,500,000
2,500,000
5,500,000
3,681,821
9,181,821
21,369,886
1,075,093
-
1,075,093
31,626,800		 Income
£
-
-
-
-
2,003,001
2,003,001
-
-
169,329
169,329
2,172,330		 Expenditure
£
-
-
-
-
(1,986,125)
(1,986,125)
(150,479)
-
(169,329)
(169,329)
(2,305,933)		 Transfers
in/(out)
£
-
-
5,000,000
5,000,000
(2,204,203)
2,795,797
(2,452,078)
(343,719)
-
(343,719)
-		 Gains/
(Losses)
£
-
-
-
-
1,740,317
1,740,317
2,745,732
-
-
-
4,486,049		 Balance at 31
March 2021
£
500,000
2,500,000
7,500,000
10,500,000
3,234,811
13,734,811
21,513,061
731,374
-
731,374
35,979,246

Page 43

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Statement of funds (continued) Statement of funds - prior year

Unrestricted
funds
Designated
funds
Grant
commitments
Development
of Housing
Generating
Income for
Grant
Funding
General funds
General Funds
Total
Unrestricted
funds
Permanent
Endowment
Capital reserve
Restricted
funds
Extraordinary
repair Funds
Total of funds		 Balance at
1 April 2019
£
500,000
2,500,000
1,500,000
4,500,000
3,218,252
7,718,252
23,991,818
1,862,725
33,572,795		 Income
£
-
-
-
-
2,353,586
2,353,586
-
-
2,353,586		 Expenditure
£
-
-
-
-
(1,866,927)
(1,866,927)
(127,460)
-
(1,994,387)		 Prior Year
Adjustment
£
-
-
-
-
595,432
595,432
(595,432)
-
-		 Transfers
in/out
£
-
-
1,000,000
1,000,000
(177,652)
822,348
-
(822,348)
-		 Gains/
(Losses)
£
-
-
-
-
(440,870)
(440,870)
(1,899,040)
34,716
(2,305,194)		 As restated
Balance at
31 March
2020
£
500,000
2,500,000
2,500,000
5,500,000
3,681,821
9,181,821
21,369,886
1,075,093
31,626,800

Page 44

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Statement of funds (continued)

Designated Funds

Designated funds amounting to £10,500,000 have been set aside to ensure that the charity has sufficient reserves for its on-going grant, housing and income generation commitments. During the year, there was a transfer of £5,000,000 to the designated funds from unrestricted funds.

Permanent Endowment Funds

The Permanent Endowment Fund was clarified and agreed with the Charity Commission in 2012. The Permanent Endowment originates from the sale of land and assets that were part of the original charities. As a permanent endowment fund, the assets cannot be directly applied to cover charitable expenditure, but income derived there from is unrestricted, and can be used in accordance with the charitable objects.

Restricted Funds

Under the terms of the Trust Deed of 2 April 1984, the Trustees set aside funds for the purpose of providing for the extraordinary repair, improvement or rebuilding of the almshouses and other property belonging to the Charity. Details of the investments representing the Extraordinary Repair Fund are shown in note 16.

A transfer in terms of the Trust Deed of £343,719 (2020: £476,563) has been made on 31 March 2021 from the restricted reserves to the unrestricted reserves, representing repairs expenditure initially incurred on unrestricted reserves.

COVID-19 and Community Funds

COVID-19 and community fund was created during the year as a result of restricted COVID-19 funds received and an equal amount has been paid as grant which is the condition of the restricted COVID-19 fund received.

Page 45

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Summary of funds

Summary of funds - current year

As restated As restated As restated
Balance at 1 Transfers Gains/ Balance at 31
April 2020 Income Expenditure in/(out) (Losses) March 2021
£ £ £ £ £ £
Designated funds 5,500,000 - - 5,000,000 - 10,500,000
General funds 3,681,821 2,003,001 (1,986,125) (2,204,203) 1,740,317 3,234,811
Permanent
Endowment
funds 21,369,886 - (150,479) (2,452,078) 2,745,732 21,513,061
Restricted funds 1,075,093 169,329 (169,329) (343,719) - 731,374
31,626,800 2,172,330 (2,305,933) - 4,486,049 35,979,246
Summary of funds - prior year
As restated
Balance at Prior Year Transfers Gains/ Balance at 31
1 April 2019 Income Expenditure Adjustment in/(out) (Losses) March 2020
£ £ £ £ £ £ £
Designated
funds 4,500,000 - - - 1,000,000 - 5,500,000
General funds 3,218,252 2,353,586 (1,866,927) 595,432 (177,652) (440,870) 3,681,821
Permanent
Endowment
funds 23,991,818 - (127,460) (595,432) - (1,899,040) 21,369,886
Restricted
funds 1,862,725 - - - (822,348) 34,716 1,075,093
33,572,795 2,353,586 (1,994,387) - - (2,305,194) 31,626,800

Page 46

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2021
£
3,894,727
10,169,975
230,508
(368,292)
(192,107)
13,734,811		 Restricted
funds
2021
£
-
731,374
-
-
-
731,374		 Permanent
Endowment
funds
2021
£
4,313,787
17,199,274
-
-
-
21,513,061		 Total
funds
2021
£
8,208,514
28,100,623
230,508
(368,292)
(192,107)
35,979,246

Analysis of net assets between funds - prior year

Tangible fixed assets - As restated
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2020
£
4,100,890
5,213,195
272,110
(245,414)
(158,960)
9,181,821		 Restricted
funds
2020
£
-
1,075,093
-
-
-
1,075,093		 Permanent
Endowment
funds
2020
£
4,170,612
17,199,274
-
-
-
21,369,886		 Total
funds
2020
£
8,271,502
23,487,562
272,110
(245,414)
(158,960)
31,626,800

Page 47

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Loss on the sale of investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Lease interest payable
Loan interest payable
Net cash used in operating activities
25.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
26.
Analysis of changes in net debt
At 1 April
2020
£
Cash at bank and in hand
188,055
Debt due after 1 year
(82,372)
105,683		 2021
£
4,352,446
390,130
(4,486,049)
(641,972)
87,824
12,750
156,614
21,804
8,634
(97,819)
2021
£
159,203
159,203
Cash flows
£
(28,852)
588
(28,264)		 2020
£
(1,945,995)
344,836
2,305,194
(856,772)
157,052
(21,615)
(36,607)
12,508
-
(41,399)
2020
£
188,055
188,055
At 31 March
2021
£
159,203
(81,784)
77,419

Page 48

WALTON ON THAMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

27. Other Assets

No account has been taken in the Balance sheet for the following assets:

28. Operating lease commitments

At 31 March 2021 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
22,408
57,785
80,193		 2020
£
22,408
84,155
106,563

Page 49