**Charity registration number: 1197479 Company registration number: 13723061**
## **Middle Way Trust**
**Annual Report and Unaudited Financial Statements**
**for the year ended 30th November 2024**
**Wenn Townsend Chartered Accountants**
**Oxford**
## **Middle Way Trust**
## **Contents**
||**Page**|
|---|---|
|Charity Reference and Administrative Details|**1**|
|Trustees’ Annual Report (including Directors’ Report)|**2 - 3**|
|Independent Examiner’s Report|**4**|
|Statement of Financial Activities (including Income and Expenditure Account)|**5**|
|Balance Sheet|**6**|
|Notes to the Financial Statements|**7-12**|
## **Middle Way Trust**
**Charity Reference and Administrative Details for the year ended 30th November 2024**
**Charity registration number:** 1197479 **Company registration number:** 13723061 **Trustees:** C Blackburn R M Kirtland **Registered office:** Prama House 267 Banbury Road Oxford OX2 7HT **Independent Examiner:** Wenn Townsend 30 St Giles Oxford OX1 3LE
**-1-**
## **Middle Way Trust**
## **Trustees’ Annual Report (including Directors’ Report) for the year ended 30th November 2024**
The Trustees present their report and the audited financial statements of the charity for the year ended 30th November 2024. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
## **Trustees of the charity**
The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end were as follows:-
C Blackburn R M Kirtland
## **Objectives and activities**
The charity's objects are for the public benefit and specifically restricted to benefit such charitable institutions or charitable purposes (according to the law of England and Wales) as the directors shall from time to time think fit through making grants and awards.
## **Fundraising standards information**
The charity has not undertaken any significant fundraising activities in the period.
## **Public benefit statement**
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities
## **Achievements, performance and financial review**
The charity was established in 2021 by the very generous donation of the initial fund of £3.2m by Priscilla Tolkien, youngest child and only daughter of the author, J R R Tolkien, and has been registered with the Charity Commission as a registered charity. In the financial year 2022/23 the charity received a further bequest of £956,263 from the Estate of Priscilla Tolkien.
During 2023/24 the charity’s total income was £104,077 representing income from the invested donations.
The charity awarded grants in the year to 17 organisations totalling £155,980.
The overall excess of expenditure over income for the year was £83,796 and net gains on investments amounted to £642,232. Reserves at 30th November 2024 were £4,650,965.
## **Reserves policy**
The charity has invested £4.6m to generate an income return as well as maintain capital growth in line with inflation. In addition the charity has £24k of other reserves that can be used to make grants. The charity’s policy is to maintain its capital reserves in line with inflation to provide an increasing annual income to be used to make grants.
## **Plans for future periods**
The charity will continue to manage its investments to achieve a suitable return and to seek to make annual grants to charities from income.
## **Structure, governance and management**
The Charitable Company is governed by its Memorandum and Articles of Association which were adopted on incorporation on 4 November 2021. It is registered as a charity with the Charity Commission. The liability of members in the event of a winding up is limited by guarantee to an amount not exceeding £1 per member. At the balance sheet date there were two members.
## **Risk management**
The trustees have reviewed the major risks facing the charity, and systems or procedures have been established to manage those risks.
**-2-**
## **Middle Way Trust**
## **Trustees’ Annual Report (including Directors’ Report)**
## **for the year ended 30th November 2024**
## **Trustees’ responsibilities**
The Trustees (who are also directors of Middle Way Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report 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 the 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 incoming resources and application of resources, including the income and expenditure, of the Charitable Company for the 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 2019 (FRS 102);
- 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; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity and the group will continue in operation.
The Trustees are responsible for keeping adequate accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company and enables 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 any reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared having taken advantage of the small companies’ exemption in the Companies Act 2006.
## **On behalf of the board**
**……………………………**
## **R M Kirtland Trustee**
**3[rd] July 2025**
**-3-**
## **Independent Examiner's Report to the Trustees of Middle Way Trust**
I report to the charity trustees on my examination of the accounts of the company for the year ended 30th November 2024 which are set out on pages 5 to 7
## **Responsibilities and basis of report**
As the charity trustees of the company (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 2006 Act’).
Having satisfied myself that the accounts of the company 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 company’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 statement**
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of [ _insert name of applicable listed body_ ], which is one of the listed bodies.
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:
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 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.
Signed:
Benjamin Hayes BSc FCA Wenn Townsend 30 St Giles, Oxford. OX1 3LE 3[rd] July 2025
**-4-**
## **Middle Way Trust**
## **Statement of Financial Activities (including Income and Expenditure Account) for the year ended 30th November 2024**
|||**Unrestricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Note**|**funds**|**2024**|**2023**|
|||**£**|**£**|**£**|
|**Income from endowments from:**|||||
|Donations and legacies|**2**|-|-|956,263|
|Investments|**3**|104,077|104,077|42,044|
|||**───────**|**───────**|**───────**|
|**Total income and endowments**||104,077|104,077|998,307|
|**Expenditure on:**|||||
|Generating funds:|||||
|Investment management fees||26,030|26,030|-|
|Charitable activities|**4**|161,843|161,843|99,362|
|||───────|───────|───────|
|**Total expenditure**||187,873|187,873|99,362|
|||───────|───────|───────|
|**Net (expenditure)/income**||(83,796)|(83,796)|898,945|
|Net gains on investments|**8**|642,232|642,232|17,250|
|||───────|───────|───────|
|**Net movement in funds**||558,436|558,436|916,195|
|**Reconciliation of funds:**|||||
|Total funds brought forward||4,092,529|4,092,529|3,176,334|
|||───────|───────|───────|
|**Total funds carried forward**||4,650,965|4,650,965|4,092,529|
|||═══════|═══════|═══════|
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised during the year.
**The notes on pages 8 to 13 form part of these financial statements**
**-5-**
## **Middle Way Trust**
## **Balance Sheet as at 30th November 2024**
|||**2024**|**2023**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Fixed assets**||||
|Investments|**8**|4,626,662|3,806,383|
|**Current assets**||||
|Cash at bank and in hand||184,196|306,908|
|||───────|───────|
|||184,196|306,908|
|**Creditors: amounts falling due within one year**|**9**|(159,893)|(20,762)|
|||───────|───────|
|**Net current assets**||24,303|286,146|
|||───────|───────|
|**Net assets**|**10**|4,650,965|4,092,529|
|||═══════|═══════|
|**Charity Funds**||||
|Unrestricted funds||4,650,965|4,092,529|
|||───────|───────|
|**Total charity funds**|**10**|4,650,965|4,092,529|
|||═══════|═══════|
For the year ending 30th November 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## Directors’ responsibilities:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The financial statements were approved and authorised for issue by the Board on 3[rd] July 2025.
Signed on behalf of the board of trustees
………………………………..
## **R M Kirtland Trustee**
## **Company registration number: 13723061**
**The notes on pages 8 to 13 form part of these financial statements**
**-6-**
## **Middle Way Trust**
## **Notes to the Financial Statements for the year ended 30th November 2024**
## **1. Summary of significant accounting policies**
## **(a) General information and basis of preparation**
Middle Way Trust is a charitable company limited by guarantee incorporated in England / Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are included in the Trustees’ Report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Charities Act 2006, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **(b) Funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
## **(c) Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
**-7-**
**Middle Way Trust**
## **Notes to the Financial Statements (continued) for the year ended 30th November 2024**
## **1. Summary of significant accounting policies (continued)**
## **(d) Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
## **(e) Support costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity.
## **(f) Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
## **(g) Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **(h) Impairment**
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
## **(i) Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **(j) Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
**-8-**
**Middle Way Trust**
## **Notes to the Financial Statements (continued) for the year ended 30th November 2024**
## **2. Income from donations and legacies**
|||**2024**|**2023**|
|---|---|---|---|
|||**£**|**£**|
||Bequest|-|956,263|
|||───────|───────|
|||-|956,263|
|||═══════|═══════|
|**3.**|**Income from investments**|||
|||**2024**|**2023**|
|||**£**|**£**|
||Income from listed investments|104,077|39,132|
||Interest receivable|-|2,912|
|||───────|───────|
|||104,077|42,044|
|||═══════|═══════|
## **4. Analysis of expenditure on charitable activities**
||**Grant funding**|**Support**|||
|---|---|---|---|---|
||**of activities**|**costs**|**Total**|**Total**|
||**2024**|**2024**|**2024**|**2023**|
||**£**|**£**|**£**|**£**|
|Charitable grants awarded (see note 4.1)|155,980|-|155,980|93,000|
|Governance costs|-|5,863|5,863|6,362|
||─────|─────|─────|─────|
||155,980|5,863|161,843|99,362|
||═════|═════|═════|═════|
**-9-**
## **Middle Way Trust**
## **Notes to the Financial Statements (continued) for the year ended 30th November 2024**
## **4.1 Analysis of grants awarded**
|To institutions:|**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Amber Trust|5,000|-|
|Archway Foundation|-|10,000|
|Awards for Young Musicians|10,000|5,000|
|Building Bridges for Peace|5,000|-|
|Forgiveness Project|5,000|-|
|Home-Start Oxford|15,000|15,000|
|Kestrel Theatre Company|10,000|5,000|
|MyVision Oxfordshire|10,000|5,000|
|Onwards and Upwards|10,000|10,000|
|Orchestra of St John|5,000|-|
|Oxford Bach Choir|5,980|3,000|
|SeeSaw|15,000|10,000|
|SOFEA|15,000|10,000|
|Sylva Foundation|10,000|-|
|Tablet Trust|5,000|-|
|Wild Oxfordshire|5,000|10,000|
|Workaid|10,000|-|
|Yellow Submarine|15,000|10,000|
||─────|─────|
||155,980|93,000|
||═════|═════|
## **5. Support costs**
||**Total**|**Total**|
|---|---|---|
||**2024**|**2023**|
||**£**|**£**|
|Independent examination / audit and accountancy|5,201|6,120|
|Bank charges|167|189|
|Sundry expenses|495|53|
||─────|─────|
|Total|5,863|6,362|
||═════|═════|
## **6. Independent examiner’s / auditor’s remuneration**
The independent examiner’s remuneration for the year ended 30 November 2024 amounts to an independent examination fee of £1,320 and other accountancy fees of £3,881.
The auditor’s remuneration for the year ended 30 November 2023 amounted to an audit fee of £3,540 and other accountancy fees of £2,580.
**-10-**
## **Middle Way Trust**
## **Notes to the Financial Statements (continued) for the year ended 30th November 2024**
## **7. Trustees’ and key management personnel remuneration and expenses**
The trustees neither received nor waived any remuneration during the year (2023: nil).
The trustees did not have any expenses reimbursed during the year (2023: nil).
## **8. Fixed asset investments**
||**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Quoted investments were as follows:-|||
|(All listed)|||
|Market value at 1st December 2023|3,806,383|-|
|Acquisitions at cost|-|5,852,233|
|Disposal proceeds|-|(2,063,100)|
|New money invested|100,000|-|
|Investment income retained in portfolio|104,077|-|
|Investment management fees charged in portfolio|(26,030)|-|
|Gains on revaluation|642,232|17,250|
||───────|───────|
|Fair value at 30th November 2024|4,626,662|3,806,383|
||═══════|═══════|
|All investments are listed on recognised financial markets.|||
|**Analysis of investments**|||
|Investment assets in the UK|1,135,800|1,638,315|
|Investment assets outside the UK|3,490,862|2,168,068|
||───────|───────|
|Fair value at 30th November 2024|4,626,662|3,806,383|
||═══════|═══════|
## **9. Creditors: amounts falling due within one year**
||**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Grants payable|155,980|15,000|
|Accruals|3,913|5,762|
||─────|─────|
||159,893|20,762|
||═════|═════|
**-11-**
## **Middle Way Trust**
## **Notes to the Financial Statements (continued) for the year ended 30th November 2024**
## **10. Fund reconciliation**
**Unrestricted funds – current year**
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|Balance at|Balance at|
|1.12.23|Income|Expenditure|Inv gains|30.11.24|
|£|£|£|£|
|£|
|Unrestricted|4,092,529|104,077|(187,873)|642,232|4,650,965|
|───────|───────|───────|─────── ───────|
|4,092,529|104,077|(187,873)|642,232|4,650,965|
|═══════|═══════|═══════|═══════ ═══════|
|Unrestricted funds – prior year|
|Balance at|Balance at|
|1.12.22|Income|Expenditure|Inv gains|30.11.23|
|£|£|£|£|
|£|
|Unrestricted|3,176,334|998,307|(99,362)|17,250|4,092,529|
|───────|───────|───────|─────── ───────|
|3,176,334|998,307|(99,362)|17,250|4,092,529|
|═══════|═══════|═══════|═══════ ═══════|
**----- End of picture text -----**
**----- Start of picture text -----**
||||
|---|---|---|
|11.|Analysis of net assets between funds|
|Current year|Unrestricted|
|funds|Total|
|2024|2024|
|£|£|
|Fixed asset investments|4,626,662|4,626,662|
|Cash and current investments|184,196|184,196|
|Other current assets/liabilities|(159,893)|(159,893)|
|───────|───────|
|Total|4,650,965|4,650,965|
|═══════|═══════|
|Unrestricted|
|Prior year|funds|Total|
|2023|2023|
|£|£|
|Fixed asset investments|3,806,383|3,806,383|
|Cash and current investments|306,908|306,908|
|Other current assets/liabilities|(20,762)|(20,762)|
|───────|───────|
|Total|4,092,529|4,092,529|
**----- End of picture text -----**
## **12. Related party transactions**
There are no related party transactions in the current or preceding period.
**-12-**