THE ELSIE DAVIS TRUST
(A charitable company limited by guarantee)
UNAUDITED REPORT AND FINANCIAL STATEMENTS
31 DECEMBER 2022
Registered company number 12515601 Registered charity number 1193055
ARMSTRONG WATSON Chartered Accountants Newcastle upon Tyne
THE ELSIE DAVIS TRUST
REPORT AND FINANCIAL STATEMENTS
31 DECEMBER 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 14 | Notes to the financial statements |
THE ELSIE DAVIS TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
31 DECEMBER 2022
Charity number : 1193055 Company number: 12515601
Trustees
C J Richardson M W Clark G V Penn (Chair) D I Richardson
Secretary
Muckle Secretary Limited
Registered office
Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF
Independent examiner
D R Gold Armstrong Watson Audit Limited First Floor One Strawberry Lane Newcastle upon Tyne NE1 4BX
Bankers
NatWest Bank Plc Newcastle City 16 Northumberland Street Newcastle upon Tyne NE1 7EL
Investment advisers
Rathbones Incorporating Investec Wealth & Investment (UK) The Colmore Building Colmore Circus Birmingham B4 6AT
Solicitors
Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF
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THE ELSIE DAVIS TRUST
REPORT OF THE TRUSTEES
31 DECEMBER 2022
The trustees are pleased to present their report together with the unaudited financial statements of the charity for the period ended 31 December 2022 which are also prepared to meet the requirements for a directors’ report and financial statements for Company Act purposes.
The reporting date was shortened from 31 March 2023 to 31 December 2022. As a result, the comparative amounts included in the financial statements (including the related notes) are not 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 by making grants to other charities.
In planning and carrying out the charity’s activities for the period, 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:
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amateur sport;
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education and training;
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promotion of health and relief from sickness or disability; or
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in exceptional circumstances any other charitable purposes.
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THE ELSIE DAVIS TRUST
REPORT OF THE TRUSTEES
31 DECEMBER 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
Grants of £78,000 were payable during the period. Note 7 provides further details.
Financial review
The principal sources of unrestricted income comprised dividends and interest receivable amounting to £145,357 (31 March 2022: £61,080). Against this was expenditure of £84,403 (31 March 2022: £20,441), resulting in net income of £60,954 (31 March 2022: £40,639).
Reserves policy
It is the policy of the charity to maintain unrestricted funds not invested in fixed assets (the free reserves) at an appropriate level to cover any gap that may arise between investment income and grants payable and other expenditure. The target level of reserves has been set at £100,000.
The free reserves at 31 December 2022 were £105,658 (31 March 2022: £44,704). The trustees consider this to be appropriate at the current time. The policy and reserves position will continue to be reviewed each financial year.
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 primary objective of the portfolio is to produce a certain level of income and for the capital value to be preserved in real terms.
At 31 December 2022, the value of the charity’s investment portfolio stood at £6,237,226 (31 March 2022: £6,672,115).
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 period, 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 period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
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THE ELSIE DAVIS TRUST
REPORT OF THE TRUSTEES
31 DECEMBER 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 25 October 2023
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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 period ended 31 December 2022, which are set out on pages 6 to 14.
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:
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1) accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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2) the accounts do not accord with those accounting records; or
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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
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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 Armstrong Watson Audit Limited First Floor One Strawberry Lane Newcastle upon Tyne NE1 4BX
25 October 2023
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THE ELSIE DAVIS TRUST
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 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) on revaluation of investments 10 Realised (losses) gains on disposal of investments Net (expenditure) income and net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 13 |
Unrestricted Endowment Year ended funds fund 31/03/2022 £ £ £ £ - - - 982,824 145,357 - 145,357 61,080 145,357 - 145,357 1,043,904 2,198 19,783 21,981 28,549 82,205 - 82,205 17,586 84,403 19,783 104,186 46,135 - (397,935) (397,935) (166,577) - (14,715) (14,715) 548,379 - (412,650) (412,650) 381,802 60,954 (432,433) (371,479) 1,379,571 44,704 6,666,045 6,710,749 5,331,178 105,658 6,233,612 6,339,270 6,710,749 Period from 01/04/22 to 31/12/2022 |
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The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derives from continuing activities.
The notes on pages 9 to 14 form part of these financial statements.
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THE ELSIE DAVIS TRUST
SUMMARY INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022
| Gross income Total expenditure Net income for the period |
£ £ 145,357 61,080 (84,403) (20,441) 60,954 40,639 Period from 01/04/22 to 31/12/2022 Year ended 31/03/2022 |
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All income and expenditure derives from continuing activities.
Total income of £145,357 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 14, provides full information on the movements during the period on all funds of the charity.
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THE ELSIE DAVIS TRUST
BALANCE SHEET
Company number: 12515601
AS AT 31 DECEMBER 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 |
£ £ 6,237,226 35,587 79,231 114,818 (12,774) 102,044 6,339,270 6,233,612 105,658 6,339,270 31 December 2022 |
£ £ 6,672,115 17,084 35,014 52,098 (13,464) 38,634 6,710,749 6,666,045 44,704 6,710,749 31 March 2022 |
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For the period ended 31 December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Trustees responsibilities:
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(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
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(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 25 October 2023.
Mrs G V Penn Chair
The notes on pages 9 to 14 form part of these financial statements
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 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.
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 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 (expenditure) income
| Net (expenditure) income | ||
|---|---|---|
| Period from | ||
| 01/04/22 to | Year ended | |
| 31/12/2022 | 31/03/2022 | |
| Net (expenditure) income for the period is stated after charging: | £ | £ |
| Independent examination and accountancy services: | ||
| Independent examination | 462 | 420 |
| Accountancy services | 2,490 | 1,962 |
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
4. Donations
| Donations - Mrs G V Penn Donations - prior year Donations - Mrs G V Penn Investment income Dividends and interest receivable Raising funds: Investment management costs Investment management fees |
Unrestricted Endowment funds fund £ £ £ £ - - - 982,824 Unrestricted Endowment funds fund £ £ £ - 982,824 982,824 Unrestricted Endowment funds fund £ £ £ £ 145,357 - 145,357 61,080 Unrestricted Endowment funds fund £ £ £ £ 2,198 19,783 21,981 28,549 Period from 01/04/22 to 31/12/2022 Period from 01/04/22 to 31/12/2022 Year ended 31/03/2022 Period from 01/04/22 to 31/12/2022 Year ended 31/03/2022 Year ended 31/03/2022 Year ended 31/03/2022 |
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5. Investment income
6. Raising funds:
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
7. Grants
| Grants to institutions: Sports Driving St Oswalds Hospice Cramlington Voluntary Youth Project Ltd Hawthorn Primary School Acorns (North Tyneside) Learning Library Love, Amelia Morpeth Group Riding for the Disabled Stepney Bank Stables Ltd Street Pastors Read For Good Friends of LV50 Cambo School PTA Grants to individuals |
£ £ 15,000 10,000 11,000 - 10,000 - 10,000 - 5,000 - 5,000 - 5,000 - 5,000 - 5,000 - 5,000 - 2,000 - - 1,500 - 250 78,000 11,750 - 2,500 78,000 14,250 Period from 01/04/22 to 31/12/2022 Year ended 31/03/2022 |
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8. Charitable activities
| i) Charitable activities: Grants payable (see note 7) ii) Governance costs: Accountancy fees Independent examination fee Legal fees Travelling expenses Total expenditure on charitable activities |
Unrestricted Endowment funds fund £ £ £ £ 78,000 - 78,000 14,250 2,490 - 2,490 1,962 462 - 462 420 967 - 967 954 286 - 286 - 82,205 - 82,205 17,586 Period from 01/04/22 to 31/12/2022 Year ended 31/03/2022 |
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9. Trustees' remuneration and related party transactions
The trustees did not receive any emoluments during the period and were not paid or reimbursed for any expenses.
The charity considers its key management personnel to be the trustees.
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
10. Fixed asset investments
| Investments at fair value comprised: Investments Cash available for reinvestment by investment advisers At 1 April 2022 Additions at cost Disposals at carrying value Unrealised (losses) on revaluation Market value at 31 December 2022 Historical cost at 31 December 2022 |
£ £ 6,164,171 6,582,421 73,055 89,694 6,237,226 6,672,115 6,582,421 5,083,564 154,663 4,100,188 (174,978) (2,434,754) (397,935) (166,577) 6,164,171 6,582,421 6,520,795 6,502,330 31 December 2022 31 March 2022 |
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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.
11. Debtors
| Dividends and interest receivable 12. Creditors:amounts falling due within one year Trade creditors Accruals Grants payable |
£ £ 35,587 17,084 £ £ 2,382 1,884 10,392 10,080 - 1,500 12,774 13,464 31 December 2022 31 March 2022 31 December 2022 31 March 2022 |
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THE ELSIE DAVIS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
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 |
Fixed Net Total Total asset current assets investments (liabilities) 31 March 2022 £ £ £ £ 6,237,226 (3,614) 6,233,612 6,666,045 - 105,658 105,658 44,704 6,237,226 102,044 6,339,270 6,710,749 Fixed Net Total Total asset current assets 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 31 December 2022 31 March 2022 31 March 2021 |
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