Charity Registration No. 200522
S E FRANKLIN CHARITABLE TRUST NO.3
TRUSTEES' REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
S E FRANKLIN CHARITABLE TRUST NO.3
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
D E Franklin L M Franklin P M Franklin
Charity number
200522
Principal address
6 Rosebay Wokingham Berkshire RG40 5YT
Accountants
TC Group The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN
Bankers & Investment advisors
Quilter Cheviot Limited One Kingsway London WC2B 6AN
S E FRANKLIN CHARITABLE TRUST NO.3
CONTENTS
Pages
Trustees’ report 1 – 2 Independent Examiner’s Report 3 Statement of financial activities 4 Balance sheet 5 Notes to the accounts 6 - 9
S E FRANKLIN CHARITABLE TRUST NO.3
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report together with the accounts for S E Franklin Charitable Trust No.3 for the year ended 31 March 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s Deed of Trust dated 2 August 1961. The accounts comply with the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Structure, Governance and Management
The trust was established by a charitable trust deed on 2nd August 1961. The trust's object is to pay or apply the income of the trust to or for the benefit of such charitable institution or institutions at the absolute discretion of the trustees. However, no charitable institution which is engaged in, or includes among its objects any missionary or proselytising activity, shall be eligible to benefit out of the income of the Trust Fund.
Grants are made at the discretion of the trustees. The trustees confirm that they have complied with the duty in Chapter 1 Section 4 of the Charities Act 2011 to have due regard to the general guidance issued by the Charities Commission on public benefit.
Trustees
The trustees who served during the year were:
D E Franklin L M Franklin P M Franklin
The trust is managed by three trustees and the statutory power of appointing new trustees applies. New trustees are provided with support and appropriate training as and when required.
Financial review
As at 31 March 2022, the charity held reserves of £1,878,749 (2021: £1,849,878) which is all unrestricted. Of this, surplus bank balances represent £149,049 (2021: £68,913).
Total income received amounted to £15,261 (2021: £28,797) by way of investment income. Expenditure totalled £120,923 (2021: £14,461) of which £104,000 (2021: £nil) related to grants to institutions and £1,096 (2021: £1,113) related to unrecoverable dividend tax on overseas securities. The remainder of £15,827 (2021: £13,348) relates to support costs.
The financial effect of the Covid pandemic will be continuously reviewed by trustees. Investments will be regularly reviewed and grant payments will be reduced should trustees feel it required, based on investment performance.
Investment powers, policy and performance
There are no restrictions on the charity's absolute power of investment.
The trustees’ policy is to invest in the stock market and maintain a balanced return from income and growth.
The general environment in the investment market throughout the year has resulted in an increase in the value of the charity's investments, with an unrealised gain on investments held at the year end of £54,297 (2021: unrealised loss of £520,870). There was a realised gain on investments sold during the year of £80,236 (2021: £30,359).
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S E FRANKLIN CHARITABLE TRUST NO.3
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Reserves policy
It is the policy of the charity to maintain free reserves sufficient to meet the obligations of one year’s charitable expenditure in case of any downturn in investment income or valuation.
Any free reserves in excess of this policy are considered for re-investment in the charity’s investment portfolio. The charity is operating within their reserves policy at the year end.
Free reserves at the year end totalled £1,878,749 (2021: £1,849,878). The charity is therefore acting in line with the reserves policy.
Risk management
The trustees have reviewed the major risks to which the charity is exposed and are happy that systems are in place to manage those risks.
Future plans
The charity plans on continuing the activities outlined above in the forthcoming years.
Trustees' responsibilities in relation to the accounts
The Charities Act 2011 requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that year.
In preparing these accounts, 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; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the accounts comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
On behalf of the board of trustees
P M Franklin Trustee
12/11/2022 Dated: .........................
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S E FRANKLIN CHARITABLE TRUST NO.3
INDEPENDENT EXAMINER’S REPORT
TO THE TRUSTEES OF SE FRANKLIN CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2022
Trust I report to the trustees on my examination of the accounts of the SE Franklin Charitable Trust (the Trust) for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mark Cummins FCCA, FCIE
For and on behalf of TC Group
Office: Steyning
Date 14 December 2022
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S E FRANKLIN CHARITABLE TRUST NO.3 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
----- Start of picture text -----
|||||
|---|---|---|---|
|2022|2021|
|Notes|£|£|
|Income from:|
|Investment income|4|15,261|28,797|
|──────── ────────|
|Total income|15,261|28,797|
|──────── ────────|
|Expenditure on:|
|Charitable activities|
|Grants to wide ranging beneficiaries|120,923|14,461|
|──────── ────────|
|Total expenditure|5|120,923|14,461|
|──────── ────────|
|Net expenditure for the year and net movement|
|in funds before gains and losses on investments|(105,662)|14,336|
|Net gains/(losses) on investments|9|134,533|551,229|
|──────── ────────|
|Net movement in funds|28,871|565,565|
|────────|────────|
|Reconciliation of funds|
|Total Funds brought forward|1,849,878|1,284,313|
|──────── ────────|
|Total Funds carried forward|1,878,749|1,849,878|
|════════ ════════|
----- End of picture text -----
All funds are unrestricted.
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S E FRANKLIN CHARITABLE TRUST NO.3
BALANCE SHEET
AS AT 31 MARCH 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Investments | 9 | 1,731,920 | 1,785,225 | ||
| Current assets | |||||
| Cash at bank and in hand | 149,049 | 68,913 | |||
| Creditors: amounts falling due within one year |
10 | (2,220) | (4,260) | ||
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| Net current assets | 146,829 | 64,653 | |||
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| Total assets less current liabilities | 1,878,749 | 1,849,878 | |||
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| Net assets | 1,878,749 | 1,849,878 | |||
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| The funds of the charity | |||||
| Unrestricted funds | 1,878,749 | 1,849,878 | |||
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| 1,878,749 | 1,849,878 | ||||
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The accounts were approved by the Trustees on 12/11/2022.
..............................
P M Franklin Trustee
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S E FRANKLIN CHARITABLE TRUST NO.3
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
1.1 Basis of preparation
The accounts 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 (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
S E Franklin Charitable Trust No.3 meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about S E Franklin Charitable Trust No.3’s ability to continue as a going concern. The trustees’ review on going concern takes into account the financial effect of the Covid pandemic.
1.2 Cash Flow Statement
In accordance with the Charities SORP (FRS 102) the charity is claiming exemption from the requirement to prepare a cash flow statement on account of it being a small charity.
1.3 Income
Investment income comprises interest receivable on cash balances and dividends. Both are accounted for when receivable.
1.4 Expenditure
Expenditure is accounted for on an accruals basis with the irrecoverable element of VAT included with the item of expense to which it relates.
Grants payable are charged in the year when the conditions are fulfilled.
Governance costs includes those costs associated with meeting the constitutional and statutory requirements of the charity. These are now included as support costs.
1.5 Investments
Fixed asset investments are stated at their fair value at the balance sheet date using the closing quoted market price. Interest, dividends and realised and unrealised gains/losses are accounted for on an accruals basis.
1.6 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments. The trustees seek to use short term deposits where possible to maximise the return on monies held at the bank and to manage cash flow.
1.7 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.
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S E FRANKLIN CHARITABLE TRUST NO.3
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(continued)
1.8 Fund accounting
Funds held by the charity are unrestricted general funds which are funds which can be used in accordance with the charitable objects at the discretion of the trustees and which have not been designated for other purposes.
1.9 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.
2 Taxation
As a charity, S E Franklin Charitable Trust No.3 is exempt from tax on income and gains to the extent that these are applied to its charitable objects.
3 Trustee remuneration
All the trustees donate their time spent running the charity on a voluntary basis and do not receive any remuneration for their work.
4 Investment income
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | |||
| Income from listed investments | 15,261 | 19,297 | ||
| Other Income | - | 9,500 | ||
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| 15,261 | 28,797 | |||
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| Total expenditure | ||||
| Grant | Other | Total | Total | |
| funding | costs | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Charitable activities | ||||
| Grants to wide ranging beneficiaries | ||||
| Grant funding of activities | 104,000 | - | 104,000 | - |
| Irrecoverable Dividend Tax | - | 1,096 | 1,096 | 1,113 |
| Support costs | - | 15,827 | 15,827 | 13,348 |
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|
| 104,000 | 16,923 | 120,923 | 14,461 | |
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5 Total expenditure
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S E FRANKLIN CHARITABLE TRUST NO.3
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
5 Total expenditure
(continued)
The charity supports a diversity of organisations through grant giving (see note 6).
Support costs (including governance costs) were as follows: £13,542 (2021: £11,128) investment management fees. £2,220 (2021: £2,220) independent examiners fees.
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|---|---|---|
|6|Grants payable|
|2022|2021|
|£|£|
|Grants to wide ranging beneficiaries|104,000|-|
|════════ ════════|
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7 Trustees
None of the trustees (or any persons connected with them) received any remuneration, benefits or reimbursement of expenses from the trust during the year.
8 Employees
There were no employees during the year to 31 March 2022 or prior year.
9 Fixed asset investments
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|||
|---|---|
|£|
|Fair value at 1 April 2021|1,785,225|
|Disposals at opening book value|(556,235)|
|Acquisitions at cost|448,633|
|Change in value in the year|54,297|
|───────|
|Fair value at 31 March 2022|1,731,920|
|═══════|
|Historical cost:|
|At 31 March 2022|1,348,090|
|═══════|
|At 31 March 2021|1,182,776|
----- End of picture text -----
All investments are carried at their fair value. Investments are all traded in quoted public markets. The basis of fair value is equivalent to the market value using the bid price.
The gain on investments shown in the statement of financial activities comprises a gain on disposal of investments of £80,236 (2021: £30,359) and an unrealised gain on the market value of investments held at the year end of £54,297 (2021: unrealised loss of £520,870).
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S E FRANKLIN CHARITABLE TRUST NO.3
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
10 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | 2022 | 2021 |
| £ | £ | |
| Accruals | 2,220 | 4,260 |
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11 Control
The charitable trust is controlled by the trustees.
12 Related parties
There were no related party transactions during the year.
13 Legal status
SE Franklin Charitable Trust is an unincorporated charitable trust, registered in England and Wales. The charitable trust’s charity number and principal address can be found on the legal and administrative information page.
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