## **THE ELSIE DAVIS TRUST**
(A charitable company limited by guarantee)
## **UNAUDITED REPORT AND FINANCIAL STATEMENTS**
## **31 MARCH 2022**
**Registered company number 12515601 Registered charity number 1193055**
**JOSEPH MILLER Chartered Accountants Newcastle upon Tyne**
**THE ELSIE DAVIS TRUST**
## **REPORT AND FINANCIAL STATEMENTS**
## **31 MARCH 2022**
## **CONTENTS**
## **Page**
|1|||Reference and administrative details|
|---|---|---|---|
|2|to|4|Report of the trustees|
|5|||Independent examiner’s report|
|6|||Statement of financial activities|
|7|||Summary income and expenditure account|
|8|||Balance sheet|
|9|to|13|Notes to the financial statements|
**THE ELSIE DAVIS TRUST**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **31 MARCH 2022**
**Charity number** : 1193055 **Company number:** 12515601
## **Trustees**
C J Bates M W Clark G V Penn D I Richardson
_(Chair)_
(Appointed 5 April 2022)
## **Secretary**
Muckle Secretary Limited
## **Registered office**
Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF
## **Independent examiner**
D R Gold Joseph Miller Milburn House Dean Street Newcastle upon Tyne NE1 1LE
## **Bankers**
NatWest Bank Plc Newcastle City 16 Northumberland Street Newcastle upon Tyne NE1 7EL
## **Investment advisers**
Investec Wealth & Investment Limited The Colmore Building Colmore Circus Birmingham B4 6AT
## **Solicitors**
Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF
- 1 -
## **THE ELSIE DAVIS TRUST**
## **REPORT OF THE TRUSTEES**
## **31 MARCH 2021**
The trustees are pleased to present their report together with the unaudited financial statements of the charity for the year ended 31 March 2022 which are also prepared to meet the requirements for a directors’ report and financial statements for Company Act purposes.
Comparative period figures relate to the period from 12 March 2020, the date of incorporation, to 31 March 2021 and are therefore not fully comparable.
Reference and administrative details set out on page 1 form part of this report. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland – Charities SORP FRS 102 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **Structure, governance and management**
## Governing document
The charity is a company limited by guarantee, incorporated on 12 March 2020 and registered as a charity on 11 January 2021. It is governed by its memorandum and articles of association.
## Appointment of trustees
The trustees may appoint, and the trustees may co-opt, any person either to fill a vacancy or as an additional trustee, but a co-opted trustee holds office only until the next AGM. At each AGM, one third of the trustees retire by rotation. The trustees appoint one of their number to be the chair of their meetings.
The trustees for the purpose of charity law, who are also directors for the purpose of company law, who served during the period and up to the date of this report are set out on page 1.
## Induction and training of trustees
New trustees are briefed on the powers and responsibilities of the trustees, the grant making process, investments and the recent financial performance of the charity.
## Organisation
The charity is managed by the trustees, who will meet quarterly. The number of trustees may not be less than three, but is not subject to any maximum. The quorum for the transaction of business is one tenth of the trustees or two trustees, whichever is greater.
## Risk management
The trustees have carried out a risk assessment to identify the major governance, financial, operational and compliance risks which the charity faces and this will be reviewed each year. Detailed procedures will be established to enable the trustees to monitor and mitigate those risks.
## **Objectives and activities**
The objects of The Elsie Davis Trust are for the benefit of the public generally, in the United Kingdom and in particular but not restricted to the counties of Northumberland, Tyne and Wear, Durham, Tees Valley and Cumbria and its surrounding areas to further charitable purposes as the trustees from time to time decide in accordance with the laws of England and Wales.
In planning and carrying out the charity’s activities for the year, the trustees have considered the guidance produced by the Charity Commission on public benefit and are confident that this will be achieved through the grants made.
## Grant making policy
The charity may make grants to support charities or charitable projects within the following themes or areas:
- amateur sport
- education and training
- promotion of health and relief from sickness or disability; or
- in exceptional circumstances any other charitable purposes
- 2 -
**THE ELSIE DAVIS TRUST**
## **REPORT OF THE TRUSTEES**
## **31 MARCH 2022**
## Grant making policy
Grants are usually made to organisations, rather than individuals, whose activities fall within and are consistent with the charity’s own objects. In the case of training awards or scholarships, for example, grants can only be made to individuals provided that their applications are supported by educational institutions.
## **Achievements and performance**
The charity received a further gift of shares of £982,824 from Mrs G V Penn on 30 September 2021. These shares were included within an investment portfolio managed by the charity’s investment manager, Investec Wealth & Investment Limited and are being reinvested to generate investment income from which grants may be paid.
Grants of £14,250 were payable during the year. Note 7 provides further details.
## **Financial review**
The principal sources of unrestricted income comprised dividends and interest receivable amounting to £61,080 (2021: £949). Against this was expenditure of £20,441 (2021: £7,180), resulting in net income of £40,639 (2021: £4,065).
## Reserves policy
The free reserves at 31 March 2022 were £44,704 (2021: £4,065). The reserves policy and the target level of reserves will be developed once the charity has accumulated income of approximately £100,000, at which point the trustees will determine the level of funds to be distributed as grants.
## **Investment policy and performance**
The memorandum and articles of association permit the charity to invest the monies of the charity not immediately required for its purposes in such investments, securities or property as may be thought fit and to delegate the management of the investments to a financial expert.
The charity’s investment portfolio and investment policy are evolving and at 31 March 2022, the value of the charity’s investment portfolio stood at £6,672,115 (2021: £5,330,028).
## **Plans for future periods**
Grant applications will be considered with reference to the charity’s available income.
## **Responsibilities of the trustees**
The trustees (who are also the directors of The Elsie Davis Trust for the purposes of company law) are responsible for preparing the report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the income and application of resources, including the income or expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
- 3 -
**THE ELSIE DAVIS TRUST**
## **REPORT OF THE TRUSTEES**
## **31 MARCH 2022**
## **Responsibilities of the trustees** _(continued)_
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Small company provisions**
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
On behalf of the trustees
Mrs G V Penn Trustee 17 December 2022
- 4 –
## **INDEPENDENT EXAMINER’S REPORT**
## **TO THE TRUSTEES OF**
## **THE ELSIE DAVIS TRUST**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022, which are set out on pages 6 to 13.
## **Responsibilities and basis of report**
As the charity’s trustees (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the Act 2006’).
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s report**
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:
- 1) accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
- 2) the accounts do not accord with those accounting records; or
- 3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
- 4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
D R GOLD BA FCA Independent Examiner Joseph Miller Milburn House Dean Street Newcastle upon Tyne NE1 1LE 19 December 2022
-5-
## **THE ELSIE DAVIS TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**Income and endowments from:**
Donations
4
Investments
5
**Total income**
**Expenditure on:**
Raising funds
6
Charitable activities
8
**Total expenditure**
**Net (losses) gains on investments:**
(Losses) gains on revaluation of investments
10
Realised gains on disposal of investments
**Net income and net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**
13|**Unrestricted**
**Endowment**
**funds**
**fund**
**2022**
**£**
**£**
**£**
**£**
-
982,824
982,824
5,010,323
61,080
-
61,080
949
61,080
982,824
1,043,904
5,011,272
2,855
25,694
28,549
3,023
17,586
-
17,586
7,180
20,441
25,694
46,135
10,203
-
(166,577)
(166,577)
252,823
-
548,379
548,379
77,286
-
381,802
381,802
330,109
40,639
1,338,932
1,379,571
5,331,178
4,065
5,327,113
5,331,178
-
44,704
6,666,045
6,710,749
5,331,178
**Total**
**funds**
**Period from**
**12/03/2020 to**
**31/03/2021**|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.
The notes on pages 9 to 13 form part of these financial statements.
- 6 -
## **THE ELSIE DAVIS TRUST**
## **SUMMARY INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|Gross income
Total expenditure
**Net income for the period**|**£**
**£**
61,080
11,245
(20,441)
(7,180)
40,639
4,065
**Period from**
**12/03/2020 to**
**31/03/2021**
**2022**|
|---|---|
All income and expenditure derives from continuing activities.
Total income of £61,080 comprises unrestricted income only. A detailed analysis of income by source is provided in the statement of financial activities and note 5.
Detailed analysis of expenditure is provided in the statement of financial activities and notes 6 to 8.
The summary income and expenditure account is derived from the statement of financial activities on page 6 and excludes all income and expenditure on the endowment fund. The statement of financial activities, together with the notes on pages 9 to 13, provides full information on the movements during the period on all funds of the charity.
- 7 -
## **THE ELSIE DAVIS TRUST**
## **BALANCE SHEET**
## **Company number: 12515601**
## **AS AT 31 MARCH 2022**
|**Note**
**Fixed assets**
Investments
10
**Current assets**
Debtors
11
Cash at bank
**Creditors:**amounts falling due within
one year
12
**Net current assets**
**Net assets**
**Funds of the charity**
Endowment fund
13
Unrestricted income funds
13
**Total charity funds**|**2022**
**2021**
**£**
**£**
**£**
**£**
6,672,115
5,330,028
17,084
949
35,014
5,000
52,098
5,949
(13,464)
(4,799)
38,634
1,150
6,710,749
5,331,178
6,666,045
5,327,113
44,704
4,065
6,710,749
5,331,178|
|---|---|
For the year ended 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Trustees responsibilities:
- (i) The members have not required the charity to obtain an audit of its financial statements for the period in question in accordance with section 476; and
- (ii) The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of the financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the trustees and authorised for issue on 17 December 2022.
Mrs G V Penn Chair
The notes on pages 9 to 13 form part of these financial statements
- 8 -
## **THE ELSIE DAVIS TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **1. Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. It is registered in England and Wales. The address of the registered office is Time Central, 32 Gallowgate, Newcastle upon Tyne, Tyne and Wear, NE1 4BF. The liability of each member in the event of winding up is limited to £10.
## **2. Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes. They have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland - Charities SORP FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Elsie Davis Trust meets the definition of a public benefit entity under FRS102.
The financial statements are prepared in sterling which is the functional and presentational currency of the charity.
## **b) Preparation of the financial statements on a going concern basis**
The charity has reviewed its cash flow forecasts and there is a reasonable expectation that it has adequate resources to continue in operational existence for at least the next twelve months and on this basis the charity is considered to be a going concern.
## **c) Fund accounting**
## **Unrestricted income fund**
The income fund is credited with the investment income arising from the charity's investments and is charged with grants made by the charity, support and governance costs. Any surplus on the income fund is carried forward and available for future grants.
## **Endowment fund**
This represents gifts of shares made by Mrs G V Penn. Although the endowment fund is expendable at the trustees' discretion, a grant made out of capital would normally involve the sale of investments and would only be made in exceptional circumstances.
## **d) Fixed asset investments:**
## **Listed investments**
Investments are a form of basic financial instrument and are initially recognised at cost and subsequently measured at their fair value as at the balance sheet date using the mid-market price.
Gains or losses arising on revaluation or disposal are recognised in the statement of financial activities in the funds in which the investments are held.
## **e) Cash at bank**
Cash at bank consists of a current account.
- 9 -
## **THE ELSIE DAVIS TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies** _(continued)_
## **f) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.
## **g) Financial instruments**
With the exception of investments described above, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially measured at transaction value and subsequently measured at their settlement value.
## **h) Income recognition**
All income is included in the statement of financial activities when 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.
Investment income such as dividends and interest from endowment fund investments are unrestricted and included when receivable.
Donations are received by way of grants and donations and are included in full in the statement of financial activities when receivable. Such income is only deferred when the donor specifies that the grant or donation must only be used in future accounting periods, or the donor has imposed conditions which must be met before the charity has unconditional entitlement.
## **i) Expenditure recognition**
Expenditure is recognised as soon as there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis, inclusive of any VAT which cannot be recovered.
Expenditure on raising funds comprises those costs relating to financing, managing and maintaining the investments.
Charitable expenditure comprises all costs of activities in furtherance of the objects of the charity.
Grants payable are recorded once the charity has made an unconditional commitment to pay the grant which is communicated to the beneficiary or the grant has been paid, whichever is the earlier. Grants offered subject to conditions which have not been met at the balance sheet date are noted as a commitment, but not provided as expenditure.
Governance costs represents expenditure incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
Where support costs relate to more than one activity, they are allocated on the basis of time spent.
## **3. Net income**
|||**Period from**|
|---|---|---|
|||**12/03/2020 to**|
||**2022**|**31/03/2021**|
|Net income for the year is stated after charging:|**£**|**£**|
|Independent examination and accountancy services:|||
|Independent examination|420|-|
|Accountancy services|1,962|1,884|
- 10 -
## **THE ELSIE DAVIS TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **4. Donations**
|Donations - Mrs G V Penn
**_Donations - prior year_**
Donations - Mrs G V Penn
**5.**
**Investment income**
Dividends and interest receivable
**6.**
**Raising funds:**
**Investment management costs**
Investment management fees
Other charges
**7.**
**Grants**
**Grants to institutions:**
Cambo School PTA
Friends of LV50
Sports Driving
**Grants to individuals**|**Unrestricted**
**Endowment**
**funds**
**fund**
**£**
**£**
-
982,824
**Unrestricted**
**Endowment**
**funds**
**fund**
**£**
**£**
10,296
5,000,027
**Unrestricted**
**Endowment**
**funds**
**fund**
**£**
**£**
61,080
-
**Unrestricted**
**Endowment**
**funds**
**fund**
**£**
**£**
2,855
25,694
-
-
2,855
25,694|**£**
**£**
982,824
5,010,323
**£**
5,010,323
**£**
**£**
61,080
949
**£**
**£**
28,549
2,915
-
108
28,549
3,023
**£**
**£**
250
-
1,500
-
10,000
-
11,750
-
2,500
-
14,250
-
**Period from**
**12/03/2020 to**
**31/03/2021**
**Period from**
**12/03/2020 to**
**31/03/2021**
**Period from**
**12/03/2020 to**
**31/03/2021**
**2022**
**Period from**
**12/03/2020 to**
**31/03/2021**
**Period from**
**12/03/2020 to**
**31/03/2021**
**2022**
**2022**
**2022**|
|---|---|---|
- 11 -
## **THE ELSIE DAVIS TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **8. Charitable activities**
|**i)**
**Charitable activities:**
Grants payable (see note 7)
**ii) Governance costs:**
Accountancy fees
Independent examination fee
Legal fees
**Total expenditure on charitable activities**|**Unrestricted**
**Endowment**
**funds**
**fund**
**£**
**£**
**£**
**£**
14,250
-
14,250
-
1,962
-
1,962
1,884
420
-
420
-
954
-
954
5,296
17,586
-
17,586
7,180
**Period from**
**12/03/2020 to**
**31/03/2021**
**2022**|
|---|---|
## **9. Trustees' remuneration and related party transactions**
The trustees did not receive any emoluments during the year and were not paid or reimbursed for any expenses.
The charity considers its key management personnel to be the trustees.
## **10. Fixed asset investments**
|**Investments at fair value comprised:**
Investments
Cash available for reinvestment by investment advisers
At 1 April 2021
Additions at cost
Disposals at carrying value
Unrealised (losses) gains on revaluation
Market value at 31 March 2022
Historical cost at 31 March 2022|**2022**
**£**
**£**
6,582,421
5,083,564
89,694
246,464
6,672,115
5,330,028
5,083,564
-
4,100,188
6,759,818
(2,434,754)
(1,929,077)
(166,577)
252,823
6,582,421
5,083,564
6,502,330
4,830,741
**2021**|
|---|---|
All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets. The basis of fair value for investments is equivalent to the market value using the mid-market price.
- 12 -
## **THE ELSIE DAVIS TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **11. Debtors**
|Dividends and interest receivable
**12. Creditors:**amounts falling due within one year
Trade creditors
Accruals
Grants payable
**13. Analysis of net assets between funds**
**Endowment fund**
**Unrestricted income funds**
**Total funds**
**_Analysis of net assets between funds - prior year_**
**Endowment fund**
**Unrestricted income funds**
**Total funds**|**2022**
**2021**
**£**
**£**
17,084
949
**2022**
**2021**
**£**
**£**
1,884
**-**
10,080
4,799
1,500
-
13,464
4,799
**Fixed**
**Net**
**Total**
**Total**
**asset**
**current assets**
**2022**
**2021**
**investments**
**(liabilities)**
**£**
**£**
**£**
**£**
6,672,115
(6,070)
6,666,045
5,327,113
-
44,704
44,704
4,065
6,672,115
38,634
6,710,749
5,331,178
**Fixed**
**Net**
**Total**
**asset**
**current assets**
**2021**
**investments**
**(liabilities)**
**£**
**£**
**£**
5,330,028
(2,915)
5,327,113
-
4,065
4,065
5,330,028
1,150
5,331,178|
|---|---|
- 13 -