Registered number: 12515601 Charity number: 1193055 THE ELSIE DAVIS TRUST (A charitsble company limited by guarantee) UNAUDITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Armstrongwatson. Accountants, Business & Financial Advisers
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) CONTENTS Page Reference and administrativo dotsils of the charity. its trustees and advisers Trustees. report Independent examiner's report Statement of financial activities Income and expenditurg account Balance sheet Notes to the financial statements 9-18
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees G V Penn, Chair C J Richardson D l Richardson M W Clark Company registered number 12515601 Charity registered number 1193055 Registered office Time Central 32 Gallowgate Newcastle upon Tyne NE14BF Secretary Muckle Secretary Limited Independent examiner Armstrong Watson LLP Chartered Accounlanls One Strawberry Lane Newcastle upon Tyne NE14BX Bankers Natwesl Bank PIC Newcastle City 16 Northumbedand Street Newcastle upon Tyne NE1 7EL Solicitors Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE14BF Investment advisers R8thbones Incorporating Inveslec Wealth & Investment IUKI The Colmore Building Colmore Circus Birmingham B4 6AT Page 1
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Iruslees present their annual report together with the unaudited financial ststements of the charity for the year ended 31 December 2023. Comparative figures relate to the period from 1 April 2022 to 31 December 2022 as the reporting dale was shortened from 31 March 2023 to 31 Dernber 2022 and therefore are not fully comparable. Referen and adminislralive detsils sel 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 stslemenls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland Charities SORP FRS 102 and the Financial Reporting Stsndard applicable In the UK and Republic of Ireland IFRS 1021. ObjgCtIVgs and activities Obje¢tiV9S The objects of The Elsie Davis Trust are for the benefit of the public generally, in the United Kingdom and in particular but not reslricled to the counties of Northumberland, Tyne and Wear, Durham, Tees Valley and Cumbria and Ils surrounding areas to further charitable purposes as the trustees from lime lo time decide in accordance with the laws of England and Wales by making grants lo other charities. 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. b. 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 eXptIOnal circumstances any other charitable purposes. Grants are usually made lo 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 inslitulions. Achievements and performance a. Achievements Grants of £137,615 were paid during the year12022. £78,000). Further details can be found in Note 5. Page 2
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Flnanclal revlew a. Golng concem After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in preparing the financial stslemenls. Further details regarding the adoption of the going cOnM basis can be found in the accounting policies. b. Reserves pollcy It is the policy of the charity lo maintain unreslricled funds not invested in fixed assets (the free reseNesl at an appropriate level to cover any gap that may arise beeen investment income and grants payable and other expenditure. The target level of reserves has been set at £100,000. The free reserves al 31 December 2023 were £111,267 12022.. £105,658). The trustees consider this to be appropriate al the current lime. The policy and reserves position will continue to be reviewed each financial year c. Flnanclal revlew The principal sources of unrestricted income comprised dividends and interest receivable amounting lo £150,494 12022.. £145,357). Against this was expenditure of £144,886 12022.. £84,403), resulting in net income of £5,608 12022.. £60,954). d. Investments pollcy 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 propety as may be thought fit and to delegate the management of the investments lo a financial expert. The primary objective of the portfolio is lo produce a certain level of income and for the capitsl value to be preserved in real terms. At 31 December 2023, the value of the charity's investment portfolio stood at £6,572,44012022'. £6,237,226). Structure, governance and management a. Constltutlon The charity is a company limited by guarantee, incorporated on 12 March 2020 and registered as a charity on 11 January 2021. 11 is govemed by ils memorandum and articles of association. b. Methods of appolntment of trustees The trustees may appoint, and the Iruslees may co-opt, any person either to fill a vacancy or as an additional Iruslee, bul a c&opted trustee holds office only until the next AGM. Al each AGM, one third of the trustees retire by rotation. The trustees appoint one of their number lo be the chair of their meetings. The Iruslees for the purpose of charity law, who are also directors for the purpose of company law, who served during the year and up lo the date of this report are sel out on page 1. Page 3
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, governance and management Icontlnuedl c. Organlsatlon 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 trustees, whichever is greater. d. Inductlon and tralnlng of trustees New Iruslees are briefed on the powers and responsibilities of the trustees, the grant making process, investments and the recent financial performance of the charity. e. Rlsk management The trustees have carried out a risk assessment to identify the major governan, financial, operational and compliance risks which the charity faces and this will be reviewed each year. Detsiled procedures will be estsblished to enable the Iruslees to monitor and miligale those risks. Plans for future perlods Grant applications will be considered with reference to the charity's available income. ststement of trustees. responslbllltles The trustees (who are also the directors of the charity for the purposes of company lawl are responsible for preparing the Iruslees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Iruslees to prepare financial stslemenls for each financial year. Under company law, the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the charity and of its incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial stalemenls, the Iruslees are required to.. select suitable accounting policies and then apply them consistently", observe the methods and principles of the Charities SORP IFRS 1021", make judgments and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material departures disclosed and explained in the financial stalemenls., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Iruslees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of trustees and signed on their behalf by.. GVPenn Ichair of Trustees) Dale.. 19 September 2024 Page 4
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Independent oxamingr's report to tho trustges of Tho Elsie Davis Trust I'tho charity'l I report lo the charity trustees on my examination of the accounts of the charity for the year ended 31 DeTrmber 2023. Responsibilitigs and basis of report As the trustees of the charity land Ils directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordan with the requirements of the Companies Act 20061.the 2006 Act'i. 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 the charity's accounts carried out under section 145 of the Charities Act 2011 1.the 2011 Acfl. In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent oxamingr's statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examinabon giving me cause to believe.. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act., or the accounts do not accord with those records,. or 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 faiv view which is not a matter considered as part of an independent examination., or the accounts have not been prepared in aceordanee with the methods and prineiples of the Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities preparing their account5 in accordance with the Financi81 Reporting Stand8rd applieable in the UK and Republic of Ireland IFRS 10211. 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 understsnding of the accounts to be reached. Signed.. Dated.. 19 September 2024 D R Gold BA FCA Independent Examiner Armstrong Walson LLP First Floor One Strawberry Lane Newcastle upon Tyne NE14BX Page 5
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Total Unrestricted Endowment Total funds funds funds funds 9 months Year ended Year ended Year ended ended 31 December 31 December 31 December 31 December 2023 2023 2023 2022 Note Income from: Investments 150,494 150,494 145,357 Total income 150,494 150,494 145,35T Expenditure on: Raising funds Charitable activitie$ 2,972 141,914 26,746 29,718 141,914 21,981 82,205 Total expenditure 144,886 26,746 171,632 104, 186 Nel gainslllossesl on investments 364,714 364,714 (472,650) Net movement in funds 5,608 337,968 343,576 (371,479) Reconciliation of funds.. Totsl funds brought forward Nel movement in funds 105,658 5,608 6,233,612 337,968 6,339,270 343,576 6,710,749 (371,479) Total funds carried forward 111,266 6.571,580 6.682,846 6,339,270 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages g to 18 form part of these financial statements. Page 6
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Total funds Total funds g n7onths Year ended ended 31 December 31 December 2023 2022 Gross income in the reporting period Less.. Total expenditure 150,494 {144.8861 145,357 (84,403) Net income for the reporting period 5,608 60,954 All income and expenditure derives from continuing aclivilies. Total income of £150,494 comprises unrestricted income only. A detsiled analysis of income by source is provided in the statement of financial activities and note 3. Detailed analysis of expenditure is provided in the statement of financial activities and notes 4 to 6. The summary income and expenditure account is derived from the statement of financial activities and excludes all income and expenditure on the endowment fund. The statement of financial activities, together with the notes provides full infomialion on the movements during the year on all funds of the charity. Page 7
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) REGISTEREO NUMBER: 12515601 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Investments 6,572,440 6,237,226 6.572.440 6,237,226 Current assets Debtors Cash al bank and in hand 10 34,659 86.536 35,587 79,231 121.195 114,818 Creditors." amounts falling due within one year 11 (10,789) {12, 774) Net current assets 110,406 102.044 Total net assets 6.682,846 6,339,270 Charity funds Endowment funds Unrestricted funds 12 12 6,571,580 111,266 6,233,612 105,658 Total funds 6,682,846 6.339,270 The charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company lo obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Iruslees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial slalemenls have been prepared in accordance with the provisions applicable to enlilies subject lo the small companies regime. The financial statements were approved and authorised for issue by the Iruslees and signed on their behalf by.. GVPenn Ichair of Trusleesl Dale.. 19 September 2024 The notes on pages 9 10 18 form part of these financial slatemenls. Page 8
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Ggnoral information The charity is a company limited by guarantee and has no share capitsl. 11 Is registered in England and Wales. The address of the registered office is Time Central, 32 Gallowgale, Newcasue upon Tyne, Tyne and Wear, NE1 4BF. The liability of each member in the event of winding up Is limited lo £10. Accounting policios 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities". Slalement of Recommended Practice applicable lo charities preparing their accounts in aceordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Elsie Davis Trust meets the definib'on of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy. The financial statements are ppared in sterling which is the functional and presentational currency of the ch8rity. 2.2 Going concern The charity has reviewed ils eash flow forecasts and there is a reasonable expectation that it has adequate resources to continue in opeffttional existence for at least the next twelve months and on this basis the charity is considered lo be a going coneern. 2.3 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. Investment income such as dividends and interest from endowment fund investments are unrestricted and included when te1Vable. Page 9
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policios Icontinuedl 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis, inclusive of Irrecoverable VAT. Expenditure on raising funds comprises those costs relating to finanryng, managing and maintaining the investments. Expenditure on charitable activities comprises all costs of activities In furtherance of the obiecls of the charity and related support costs. Grants payable are recorded once the charity has made an unconditional commitment lo pay the grant which is communicated to the beneficiary or the grant has been paid, whichever is the earlier. Grants offered subject lo conditions which have not been met at the balance sheet dale are noted as a commitment, bul not provided as expenditure. 2.5 Invgstments Fixed asset investments are a fomi of financial Instrument and are Inilialty recognised al their transaction cost and subsequendy measured at fair value al the balance sheet date using the mid- market price. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in the statement of financial aclivilies. 2.6 Cash at bank and in hand Cash at bank consists of a current accounL 2.7 Liabilities and provisions Liabilities are recognised when there is an obligation at the balance sheet dale 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 selllement can be estimated reliably. Creditors and provision5 are normally recognised at their settlement amount. 2.8 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 recognised at transaction value and subsequently measured at their settlement value. 2.9 Fund accounting The unrestricted Income fund Is credited with the investment Income arising from the charity's investments and Is charged with grants made by the charity and support costs. Any surplus on the income fund is carried forward and available for future grants. The endowment fund 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. Page 10
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investmgnt income Total funds 9 months ended 31 December 2022 Unrestricted Total funds funds Yoar ended Year endod 31 31 Decomber Decembor 2023 2023 Dividends and interest re1vable 150,494 150.494 145,35T Raising funds Total funds 9 months ended 31 December 2022 Unrestricted Endowment Total funds funds funds Year ended Year ended Year ended 31 31 31 December December December 2023 2023 2023 Investment management fees 2,972 26,746 29.718 21,981 Page11
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Grants 9 morpths Year ended ended 3111212023 31/10?2 Grants to institutions Acoms INorth Tynesidel Alex Leukodyslrophy Charity Birkheads Wild CIO Byker Real Project Crackerjacks Children's Trust Cramlinglon Voluntary Youth Project Ltd Cruse Bereavement Support Daft as a Brush Cancer Patient Care Charitable Trust Eyes Open Friends of LV50 Hawthorn Primary School Hebburn Helps Foodbank Learning Library Leo's Love, Amelia Microphthalmia, Anophlhalmia & Colobom8 SupFX)rt Morpelh Group Riding for the Disabled Newcastle University- Alzheimers Research Newcastle Wesl End Foodbank 5,000 5.000 7,000 10,000 1.600 10,000 1,000 5,000 5.220 1.500 10,000 2,000 5,000 9.500 5,000 3,000 5,000 5,000 5.000 4,000 1,000 10.000 3.000 5,500 2,000 15.000 11.000 Northumberland County of Sanctuary Rainbow Trust Children's Charity Read for Good 2,000 Soundaboul Spinal Injuries Sports Driving Unlimited st Oswald's Hospi Stepney Bank Stsbles Ltd Street Pastors Talking Marras The Greggs Foundation Breakfast Club IHolspur Primary School) The People's Kitchen Limited The Road lo Recovery Trust The Species Recovery Trust The Stephen Carey Fund Wansbeck Valley Food Bank Young Enletprise 15,000 11,000 5,000 5,000 2.000 3.500 4,000 5,000 2.000 1.795 2,000 5,000 137.615 78,000 Page 12
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Grant funding of Support Total activities costs funds Year ended Year ended Year ended 31 31 31 December December December 2023 2023 2023 Total funds 9 months ended 31 December 2022 Charitable activities 137,615 4,299 141.914 82,205 Total 2022 78,(X]O 4,205 82,205 Analysls of support costs Total funds g months ended 31 December 2022 Total funds Year ended 31 December 2023 Accountancy fees Independent examination fees Legal fees Travelling expenses 2,490 462 967 492 967 200 286 4.299 4,205 The costs of £4,29912023.' £4,205) represent the governance costs of the charity. Page 13
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Independent oxaminer's remuneration 9 morpths ended 31 December 2022 Year ended 31 Decembor 2023 Fees payable in respect of.. Independent examination Accountancy services 492 462 2,490 Page 14
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustegs. remuneration and expensos During the year, no Iruslees reiVed any remuneration or other benefits (2022- £NIL). During the year ended 31 December 2023, no Iruslee expenses have been incurred (2022- £NIL). The charity considers ils key management personnel to be the trustees. Fixed asset investmgnts Cash held Listed Investments Investment Total Cost or valuation At 1 January 2023 Additions 6,164,171 633,812 1616,508} 346.340 73.055 6,237,226 636,332 1,270,144 {664.7621 11,281.2701 346.340 Disposals Revaluations At 31 December 2023 6,527,815 44.625 6,572,440 All investments are carried al their fair value. Investments in equib'es and fixed interest securities are all traded in quoted public markets. The basis of fair value for investments is equivalent lo the market value using the mid-market price. 10. Debtors 2023 2022 Dividends and interest receivable 34,659 35,587 34.659 35,58T 11. Credltors: Amounts falllng due wlthln one year 2023 2022 Trade creditors 2,382 10,392 Accruals and deferred income 10,789 10,789 72,774 Page 15
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. ststement of funds ststomont offunds - curront year Balance at 31 Decomber 2023 Balance at 1 January 2023 Gainsl (Losses) Income Expenditure Unrestrlcted funds General Funds 105.658 150.494 {144.8861 111.266 Endowment funds Endowment Fund 6,233,612 26,7461 364,714 6,571,580 Totsl offunds 6.339.270 150.494 {171.6321 364.714 6.682,846 Statement of funds - prlor year Balan at 31 December 2022 Balance at l April 2022 Gainsl (Losses) Incom8 Expenditure Unrestricted funds General Funds 44, 704 145,357 (84,403) 105,658 Endowment funds Endowment Fund 6,666,045 (79, 783) f412,650J 6,233,612 Totsl offunds 6,710,749 145,357 (104, 186) (412,650J 6,339,270 Page 16
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 13. Analysis of net assets botwgen funds Analysis of net assets between funds - current year Unrestricted Endowment funds funds 2023 2023 Total funds 2023 Fixed asset investments Cash held for investment Current assets Creditors due within one year 16,0321 6,533,847 44,625 6,527,815 44,625 121,195 10,7891 121,195 13,8971 16,8921 Total 111,266 6,571,580 6.682,846 Anatysis of net assets between funds - prior year Unrestricted Endowment funds funds 2022 2022 Tot81 funds 2022 Fixed asset investments (3,082) 6, 167,253 73,055 6, 164, 171 73,055 174,818 (12, 774) Cash held for investment Current assets 174,818 (6,078) Creditors due within one year (6,696) Total 105.658 6.233.612 6.339.270 14. Grant commitments 2023 2022 Commitments payable in 1 year Commitments payable in over 1 year 4.500 1,500 1,500 4,500 3,000 In addition, at the year end the charity had annual grant commitments of £10,000. These grant commitments are not provided as liabilities in the financial statements. The amounts represent future amounts of grants offered al the balanTr sheet dale, which are subject to ongoing reviews and are payable out of future income. Page 17
THE ELSIE DAVIS TRUST IA charltsble company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Related party transactions The charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing belween related parties and the charity at 31 December 2023. Page 18