Charity registration number: 207110
The A F Wallace Charity Trust
Annual Report and Financial Statements
for the Year Ended 5 April 2023
The A F Wallace Charity Trust
Contents (continued)
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 17 |
The A F Wallace Charity Trust
Reference and Administrative Details
Trustees Mr G F Wallace Mr R C Wallace Mr F A Wallace Charity Registration Number 207110 Principal Office The Cedars The Dene Hurstbourne Tarrant Andover SP11 0AG Independent Examiner Buzzard's Accountancy Limited Chartered Certified Accountants 95 Sinclair Avenue Banbury Oxon OX16 1BQ Bankers Rathbones Rathbones Investment Management 8 Finsbury Circus London EC2M 7AZ
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The A F Wallace Charity Trust
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 5 April 2023.
Objectives and activities
Objects and aims
The charity's objects are widely drawn from the trust deed which states that the trustees stand possessed as to the principal and also as to the income for such charity or charities, charitable institutions, or other charitable objects or purposes as the trustees may think proper.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Public benefit
The trust furthers its charitable purposes for the public benefit through its grant making policy which falls under two headings:-
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the charity's main activity continues to be the lifetime provision of enhanced housing, welfare and pension facilities in Aberdeenshire for a number of senior citizens in the United Kingdom who have been associated for many years with the Wallace family and their associated business interests. The charity continues to provide free retirement housing, rent and council tax, plus a small stipend for a number of low income citizens.
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the charity also provides support out of its surplus income to such other charitable organisations and for such charitable purposes as the trustees see fit arising mainly out of approaches made to the charity.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Grant making policies
The trust has established its grant making policy over a number of years in order to achieve its objects for the public benefit. The principal areas for support are stated above. The trustees review this policy regularly in order to adapt its application to any changing circumstances.
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The A F Wallace Charity Trust
Trustees' Report (continued)
Financial review
The trust relies entirely on income from its investment portfolio to make payments. Any expenditure over and above the annual income is derived from the unrestricted endowment fund, which resulting deficit in the fund the Trustees will repay gradually from the annual income in future years.
The unrestricted income in the year was £39,837, a decrease of £57 on the previous year. Expenditure on charitable activities amounted to £41,546 which equates to an increase of £11,053 on the previous year. The increase in expenditure is mainly due to additional rental and council tax costs incurred on the properties occupied by the senior citizens who are assisted by the Trust. The expenditure in the current year exceeded income by £1,709, increasing the deficit carried forward to £27,560. At the reporting date the unrealised gains on the portfolio amounted to £323,332 (2022 - £426,283).
While worries about a deep recession have largely gone away, the UK economy is experiencing renewed signs of stress. The prospects of sustained high interest rates and low productivity are expected to hold back growth. The OECD forecasts UK GDP to grow by an insipid 0.5% in 2023 and by only 0.7% in 2024. With inflation still well above the Bank of England’s target, the FTSE flatlining for most of 2023 and the cost of living biting hard it is no surprise to see the endowment fund has suffered from market volatility.
Similar to last year, until the global markets begin to show signs of significant growth, the trustees have little leeway beyond supporting those most dependent upon the trust’s resources.
Policy on reserves
At the financial reporting date the unrestricted reserves are as noted above in deficit, the trustees have the power to apply the endowment fund for charitable purposes and will continue to do so for the foreseeable future. There is therefore currently no policy on retaining a fixed level of reserves.
Plans for future periods
Activities planned to achieve aims
The present strategy for the trust is to continue its activities in broadly the same manner that has been pursued by the trustees in recent years but the trustees are currently considering widening their future activities, which will allow more scope to support other charitable activities.
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The A F Wallace Charity Trust
Trustees' Report (continued)
Structure, governance and management
Nature of governing document
The charity is registered with the Charity Commissioners for England and Wales under number 207110, and is constituted under a trust deed dated 25 August 1912.
Recruitment and appointment of trustees
The trustees are all members of the Wallace family.
Arrangements for setting key management personnel remuneration
There are no employees of the charity which is run by the trustees, all of whom give their time freely and are not in receipt of any remuneration. The trustees do not as a rule seek reimbursement of any expenses they incur in connection with their duties.
Organisational structure
The management of the trust is the responsibility of the trustees and they are responsible for the appointment of new trustees when necessary and appropriate. The trustees are all aware of the requirements and responsibilities of being trustees of a charity and discuss the administration and investment management of the charity at regular quarterly meetings.
Major risks and management of those risks
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The principal risks faced by the trust lie in the performance of its investment portfolio. This is monitored quarterly with the investment managers. With regard to other operational risks which the charity faces when making grants, the trustees continue to monitor any risks at their regular meetings.
The annual report was approved by the trustees of the charity on 19 January 2024 and signed on its behalf by:
Mr G F Wallace Trustee
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The A F Wallace Charity Trust
Independent Examiner's Report to the trustees of The A F Wallace Charity Trust
I report to the trustees on my examination of the accounts of The A F Wallace Charity Trust for the year ended 5 April 2023.
Responsibilities and basis of report
As the charity trustees of The A F Wallace Charity 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 The A F Wallace Charity 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 A F Wallace Charity Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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.
Valerie Buzzard, FCCA Buzzard's Accountancy Limited
95 Sinclair Avenue Banbury Oxon OX16 1BQ
22 January 2024
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The A F Wallace Charity Trust
Statement of Financial Activities for the Year Ended 5 April 2023
| Note Income and Endowments from: Investment income 2 Total income Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Gains/losses on investment assets Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 Note Income and Endowments from: Investment income 2 Total income Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Gains/losses on investment assets Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted funds £ 39,837 39,837 - (41,546) (41,546) - (1,709) (1,709) (25,851) (27,560) Unrestricted funds £ 39,894 39,894 - (30,493) (30,493) - 9,401 9,401 (35,252) (25,851) |
Endowment funds £ 3,734 3,734 (8,717) - (8,717) (70,985) (75,968) (75,968) 1,306,642 1,230,674 Endowment funds £ 668 668 (8,857) - (8,857) 104,982 96,793 96,793 1,209,849 1,306,642 |
Total 2023 £ 43,571 |
|---|---|---|---|
| 43,571 | |||
| (8,717) (41,546) |
|||
| (50,263) (70,985) |
|||
| (77,677) | |||
| (77,677) 1,280,791 |
|||
| 1,203,114 | |||
| Total 2022 £ 40,562 |
|||
| 40,562 | |||
| (8,857) (30,493) |
|||
| (39,350) 104,982 |
|||
| 106,194 | |||
| 106,194 1,174,597 |
|||
| 1,280,791 |
The notes on pages 8 to 17 form an integral part of these financial statements. Page 6
The A F Wallace Charity Trust
(Registration number: 207110) Balance Sheet as at 5 April 2023
| Note Fixed assets Investments 14 Current assets Debtors 11 Cash at bank and in hand 12 Creditors: Amounts falling due within one year 13 Net current liabilities Net assets Funds of the charity: Endowment funds Unrestricted income funds Unrestricted funds Total funds 16 |
2023 £ 1,205,471 - 8,595 8,595 (10,952) (2,357) 1,203,114 1,230,674 (27,560) 1,203,114 |
2022 £ 1,281,182 62 5,197 |
|---|---|---|
| 5,259 (5,650) |
||
| (391) | ||
| 1,280,791 | ||
| 1,306,642 (25,851) |
||
| 1,280,791 |
The financial statements on pages 6 to 17 were approved by the trustees, and authorised for issue on 19 January 2024 and signed on their behalf by:
Mr G F Wallace Trustee
Mr R C Wallace Trustee
The notes on pages 8 to 17 form an integral part of these financial statements. Page 7
The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023
1 Accounting policies
Charity information
The A F Wallace Charity Trust is an unincorporated charity registered with The Charity Commission in England and Wales. The principal address of the charity is The Cedars, The Dene, Hurstbourne Tarrant, Andover, SP11 0AG.
Statement of compliance
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 (FRS 102) (issued October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a "true and fair "view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to give a "true and fair" view. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in the UK and Republic of Ireland (FRS102) issued in October 2019 rather than Accounting and Reporting by Charities: Statements of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Basis of preparation
The A F Wallace Charity Trust meets the definition of a public benefit entity under FRS 102. The accounts (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.
The financial statements have been prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
Exemption from preparing a cash flow statement
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a statement of cash flows.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
Investment income
All income of the charity is derived from investments and recognised at the point of receipt based on the information received from the investment manager.
Expenditure
All expenditure is accounted for on an accruals basis.
Costs of generating funds comprise those costs directly attributable to managing the investment portfolio and raising investment income.
Expenditure on charitable activities is charged in the year when the offer is confirmed to the recipient except those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the the year end are noted as a commitment, but are not accrued as expenditure.
Governance costs included within expenditure on charitable activities comprise costs for the running of the charity itself as an organisation and are recognised when the obligation for payment has been incurred.
Taxation
The charity does not have any trading activities and is not subject to taxation.
Fixed asset investments
Fixed asset investments are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
Fund structure
Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity.
Expendable endowments funds give the trustees the power to expend capital at their discretion. They are not committed by the trust deed to maintain capital.
Classification
The charity only has financial assets and 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 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Other income from fixed asset investments Other income from fixed asset investments |
Unrestricted funds General £ 241 39,596 39,837 Unrestricted funds General £ 39,894 39,894 |
Endowment funds Expendable £ - 3,734 3,734 Endowment funds Expendable £ 668 668 |
Total 2023 £ 241 43,330 |
|---|---|---|---|
| 43,571 | |||
| Total 2022 £ 40,562 |
|||
| 40,562 |
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
3 Expenditure on raising funds
a) Investment management costs
| Other investment management costs; Amounts payable to investment managers Other investment management costs; Amounts payable to investment managers 4 Expenditure on charitable activities Note Grant funding of activities 6 Governance costs Note Grant funding of activities 6 Governance costs |
Endowment funds Expendable £ 8,717 8,717 Endowment funds Expendable £ 8,857 8,857 Unrestricted funds General £ 38,046 3,500 41,546 Unrestricted funds General £ 26,993 3,500 30,493 |
Total 2023 £ 8,717 |
|---|---|---|
| 8,717 | ||
| Total 2022 £ 8,857 |
||
| 8,857 | ||
| Total 2023 £ 38,046 3,500 |
||
| 41,546 | ||
| Total 2022 £ 26,993 3,500 |
||
| 30,493 |
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
5 Analysis of governance and support costs
Governance costs include Independent Examiners fees of £1,450 (2022: £1,450).
6 Grant-making
Analysis of grants
| Analysis Grants to institutions (11 grants - 2022: 7) |
Grants to institutions 2023 £ 2022 £ 2,580 1,700 |
Grants to individuals 2023 £ 2022 £ 35,466 25,293 |
|---|---|---|
The support costs associated with grant-making are £Nil (2021: £Nil).
Grants to individuals 5 (2022: 5)
Assistance for senior citizens in the Upper Donside area of West Aberdeenshire £8,264 (2022: £8,264). This comprised of direct payments to individuals of £24,147 (2022: £13,909). Assistance for the widows of former employees of The BBTC Ltd £2,340 (2022: £2,340).
Other grants to individuals in the year totalled £715 (2022: £780).
There were no conditional grants outstanding at the current or previous year end.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
Below are details of material grants made to institutions.
| Name of institution Activity Corgarff Games General European Squirrel Initiative General East Anglia’s Children’s Hospices (EACH) General Henry van Straubenzee Memorial Fund General The Lonach Highland and Friendly Society General Red Cross General Silver Circle Charity General Upper Donside Parish Church General Other registered charities and charitable institutions General |
2023 £ 250 500 500 250 300 500 - - 280 2,580 |
2022 £ - - - - - - 250 1,000 450 |
|---|---|---|
| 1,700 |
7 Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
| 7 Net incoming/outgoing resources Net (outgoing)/incoming resources for the year include: |
||
|---|---|---|
| Revaluation of investments Gain on sale of investments |
2023 £ (102,952) 31,967 (70,985) |
2022 £ 71,653 33,329 |
| 104,982 |
8 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
9 Employees
There were no employees during the current or previous year.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
----- Start of picture text -----
11 Debtors
2023 2022
£ £
Other debtors - 62
12 Cash and cash equivalents
2023 2022
£ £
Cash at bank 8,595 5,197
13 Creditors: amounts falling due within one year
2023 2022
£ £
Accruals 10,952 5,650
----- End of picture text -----
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
14 Fixed asset investments
Other investments
| Cost or Valuation At 6 April 2022 Revaluation Additions Disposals At 5 April 2023 Net book value At 5 April 2023 At 5 April 2022 |
Listed investments £ 1,267,782 (102,952) 37,607 (19,685) 1,182,752 1,182,752 1,267,782 |
Cash in portfolio £ 13,400 - (3,788) 13,107 22,719 22,719 13,400 |
Total £ 1,281,182 (102,952) 33,819 (6,578) |
|---|---|---|---|
| 1,205,471 | |||
| 1,205,471 | |||
| 1,281,182 |
Listed investments are stated at market value as at the balance sheet date, and are valued by the investment manager.
15 Commitments
The rent paid by the charity for property provided to qualifying senior citizens is not subject to a fixed lease term, and is only payable during the lifetime of the tenants. The charity therefore does not have an operating lease commitment.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
16 Funds
| Unrestricted funds General Endowment funds Expendable Total funds Unrestricted funds General Endowment funds Expendable Total funds |
Balance at 6 April 2022 £ (25,851) 1,306,642 1,280,791 Balance at 6 April 2021 £ (35,252) 1,209,849 1,174,597 |
Incoming resources £ 39,837 3,734 43,571 Incoming resources £ 39,894 668 40,562 |
Resources expended £ Other recognised gains/(losses) £ Balance at 5 April 2023 £ (41,546) - (27,560) (8,717) (70,985) 1,230,674 (50,263) (70,985) 1,203,114 Resources expended £ Other recognised gains/(losses) £ Balance at 5 April 2022 £ (30,493) - (25,851) (8,857) 104,982 1,306,642 (39,350) 104,982 1,280,791 |
Resources expended £ Other recognised gains/(losses) £ Balance at 5 April 2023 £ (41,546) - (27,560) (8,717) (70,985) 1,230,674 (50,263) (70,985) 1,203,114 Resources expended £ Other recognised gains/(losses) £ Balance at 5 April 2022 £ (30,493) - (25,851) (8,857) 104,982 1,306,642 (39,350) 104,982 1,280,791 |
|---|---|---|---|---|
| 1,280,791 |
The specific purposes for which the funds are to be applied are as follows:
Endowment funds
Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
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The A F Wallace Charity Trust
Notes to the Financial Statements for the Year Ended 5 April 2023 (continued)
17 Analysis of net assets between funds
| Fixed asset investments Current assets Current liabilities Total net assets Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ (27,353) 8,595 (8,802) (27,560) Unrestricted funds General £ (27,610) 5,259 (3,500) (25,851) |
Endowment funds Expendable £ 1,232,824 - (2,150) 1,230,674 Endowment funds Expendable £ 1,308,792 - (2,150) 1,306,642 |
Total funds at 5 April 2023 £ 1,205,471 8,595 (10,952) |
|---|---|---|---|
| 1,203,114 | |||
| Total funds at 5 April 2022 £ 1,281,182 5,259 (5,650) |
|||
| 1,280,791 |
18 Related party transactions
Trustees, Mr G F Wallace and Mr R C Wallace are the owners of Candacraig Estate. It is from this estate that the charity leases and maintains properties as required, which are then made available on a rent free basis to qualifying senior citizens as detailed in the trustees report. The trustees confirm that no benefit accrues to any of them under this arrangement.
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