Charity registration number 1186784
THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr D P Kramer Mr A M Lesser
Charity number
1186784
THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 |
| Independent examiner's report | 2 |
| Statement of financial activities | 3 |
| Balance sheet | 4 |
| Notes to the financial statements | 5 - 10 |
THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 5 APRIL 2022
The trustees present their annual report and financial statements for the Year ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's charitable deed, the Charities Act 2011 and "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)".
Objectives and activities
The trust's objects are to support wholly charitable purposes at the absolute discretion of the trustees and there has been no change in these during the Year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
Achievements and performance
The trustees continue to look at which charities they can support in the future and assess applications for funding on an individual basis.
Financial review
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the Year.
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The trustees who served during the Year and up to the date of signature of the financial statements were: Mr D P Kramer
Mr A M Lesser
Future trustees will be appointed by the existing trustees as and when a vacancy arises.
The trust is run by the board of trustees.
The trustees' report was approved by the Board of Trustees.
Mr D P Kramer Trustee
6 February 2023
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
I report to the trustees on my examination of the financial statements of The Ronald and Joan Johnston Charitable Trust (the trust) for the Year ended 5 April 2022.
Responsibilities and basis of report
As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the trust's financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no 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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1 accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 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 financial statements to be reached.
Paul Woosey FCCA ACA Carter Backer Winter LLP Chartered Accountants 66 Prescot Street London E18NN
Dated: 7 February 2023
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 5 APRIL 2022
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and legacies | 3 | - | 2,372,634 |
| Investments | 4 | 61,073 | 40,635 |
| Other income | 5 | 12,012 | 51,467 |
| Total income | 73,085 | 2,464,736 | |
| Expenditure on: | |||
| Charitable activities | 6 | 51,899 | 34,289 |
| Net income for the Year/ | |||
| Net movement in funds | 21,186 | 2,430,447 | |
| Fund balances at 6 April 2021 | 2,430,447 | - | |
| Fund balances at 5 April 2022 | 2,451,633 | 2,430,447 |
The statement of financial activities includes all gains and losses recognised in the Year.
All income and expenditure derive from continuing activities.
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
BALANCE SHEET
AS AT 5 APRIL 2022
| Notes Fixed assets Investment properties 10 Investments 11 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ £ 1,750,000 674,775 2,424,775 3,937 28,561 32,498 (5,640) 26,858 2,451,633 2,451,633 2,451,633 |
2021 £ £ 1,750,000 669,022 2,419,022 5,458 11,967 17,425 (6,000) 11,425 2,430,447 2,430,447 2,430,447 |
2021 £ £ 1,750,000 669,022 2,419,022 5,458 11,967 17,425 (6,000) 11,425 2,430,447 2,430,447 2,430,447 |
|---|---|---|---|
| 2,419,022 11,425 |
|||
| 2,430,447 | |||
| 2,430,447 | |||
| 2,430,447 |
The financial statements were approved by the Trustees on 6 February 2023
Mr D P Kramer Mr A M Lesser Trustee Trustee
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
The Ronald and Joan Johnston Charitable Trust is an unincorporated charitable trust.
1.1 Accounting convention
The financial statements have been prepared in accordance with the trust's governing document. the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.
1.4 Income
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.5 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 are allocated on the portion of the asset’s use.
1.6 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Total | Unrestricted | |
|---|---|---|
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Legacies receivable | - | 2,372,634 |
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 4 | Investments | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Rental income | 61,073 | 35,281 | |
| Investment Portfolio Income | - | 5,354 | |
| 61,073 | 40,635 | ||
| 5 | Other income | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Unrealised gains on investments | 12,012 | 51,467 | |
| 6 | Charitable activities | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Donations | |||
| 18,000 | 13,000 | ||
| Share of governance costs (see note 7) | 33,899 | 21,289 | |
| 51,899 | 34,289 |
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
7 Support costs
| Audit fees Legal and professional Property Repairs Bank Charges Portfolio Management and dealing costs Agents fees Insurance Analysed between Charitable activities |
Support costs Governance costs £ £ - - - 7,044 - 14,527 - 100 - 6,259 - 3,679 - 2,290 - 33,899 - 33,899 |
2022 £ - 7,044 14,527 100 6,259 3,679 2,290 33,899 33,899 |
2021 £ 6,000 12,486 2,761 42 - - - |
|---|---|---|---|
| 21,289 | |||
| 21,289 |
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the Year.
9 Employees
The average monthly number of employees during the Year was:
| The average monthly number of employees during the Year was: | |
|---|---|
| Employees There were no employees whose annual remuneration was more than £60,000. |
2022 Number 2 |
10 Investment property
| Investment property | |
|---|---|
| 2022 | |
| £ | |
| Fair value | |
| At 6 April 2021 and 5 April 2022 | 1,750,000 |
Investment property comprises two properties in Dunmore Road N16. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 26th March 2019 by Felicity J Lord Estate Agents, who are not connected with the trust. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
11 Fixed asset investments
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THE RONALD AND JOAN JOHNSTON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 11 | Fixed asset investments | (Continued) |
|---|---|---|
| Unlisted | ||
| investments | ||
| £ | ||
| Cost or valuation | ||
| At 6 April 2021 & 5 April 2022 | 669,022 | |
| Carrying amount | ||
| At 05 April 2022 | 669,022 | |
| 12 | Financial instruments | 2022 |
| £ | ||
| Carrying amount of financial assets | ||
| Instruments measured at fair value through profit or loss | 674,775 | |
| 13 | Debtors | |
| 2022 | ||
| Amounts falling due within one year: | £ | |
| Other debtors | 3,937 | |
| 14 | Creditors: amounts falling due within one year | |
| 2022 | ||
| £ | ||
| Accruals and deferred income | 5,640 | |
| 15 | Related party transactions |
There were no disclosable related party transactions during the Year
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