| Page | |||
|---|---|---|---|
| Report ofthe Trustees | 1 | to | 5 |
| Independent Examiner's Report |
|||
| Statement ofFinancial Activities | |||
| Balance Sheet | |||
| Notes to the Financial Statements | 9 | to | 17 |
| Detailed Statement ofFinancial Activities | 18 |
| FINANCIAL REVIEW | ||||||||
|---|---|---|---|---|---|---|---|---|
| Investment policy and objectives |
||||||||
| 1Introduction | ||||||||
| 1.1 The Frank Parkinson Agricultural Trust is agrant making Charity established by Trust Deed, |
whose | purposes | are | |||||
| described on Page 1. |
||||||||
| 1.2 The Endowment aims to balance the needs ofcurrent and future beneficiaries. |
The capital remains | invested to | ||||||
| provide for future beneficiaries and the income received, after deduction ofinvestment management |
fees, is | |||||||
| distributed to current beneficiaries. |
||||||||
| 1.3 The Trust has approximately X1.5 million ofinvestment assets at 31stDecember 2018.These |
finance | the | grant | |||||
| making activities. | ||||||||
| 1.4The Trustees have appointed an investment sub-committee to advise |
them on the Trust's investments. | |||||||
| 2 Investment Objectives |
||||||||
| 2.1 The Trust seeks to produce the best financial return within an acceptable level |
ofrisk. | |||||||
| 2.2 The investment objective is to generate an income received ofbetween f30,000 and f40,000 |
per annum | |||||||
| (afler investment managers fees) over the long term, while allowing |
the Trust | to maintain the |
real value ofits | |||||
| assets. | ||||||||
| 3Risk | ||||||||
| 3.1 Attitude to risk |
||||||||
| The Trust relies on the investment return to fund grant making. However, grants are generally |
one | offawards | ||||||
| and the number and value ofthese may vary depending on circumstances. The key risk to the long |
term | |||||||
| sustainability ofthe endowment is inflation, and the assets should |
be invested | to mitigate this risk |
over | the | ||||
| long term. | ||||||||
| 3.2 Assets | ||||||||
| The Trust's assets are invested in common investment funds, with cash funds used as necessary. The |
||||||||
| investment sub-committee are charged with advising on a suitable |
asset allocation strategy, |
which | is set so | |||||
| as to achieve the overall Trust investment objectives. |
||||||||
| The investment sub-committee have agreed a target strategic asset allocation |
in order to balance the | |||||||
| maintenance ofthe real value ofthe Trust's capital as well as its income. It is |
Equities 85'/0, | Bonds | 15'/o, with | |||||
| 30'/0 ofeach invested in accumulation units/shares. |
||||||||
| Asset allocation will vary from this target, due to market movements. Formal |
review ofthe | portfolio asset | ||||||
| allocation occurs on an annual basis. |
||||||||
| 3.3 Currency | ||||||||
| The base currency ofthe investment portfolio is Sterling. Investments |
may be made in non-Sterling | assets, but | ||||||
| should not exceed 40'/0 ofthe total investment portfolio value. |
||||||||
| 3.4 Credit | ||||||||
| The Trust's cash balances should be deposited with institutions with |
a minimum | rating ofA, or invested | in a | |||||
| diversified money market fund. Deposits should be subject to a maximum exposure off60,000per |
institution. | |||||||
| Bond exposure should be focused on investment grade issuers. |
||||||||
| 4 Liquidity Requirements |
||||||||
| 4.1 The Endowment aims to balance the needs ofcurrent and future beneficiaries and as such aims to set |
a | |||||||
| sustainable income target, whilst ensuring the capital is expected to grow in line with inflation |
over | the long term. | ||||||
| The current target for income received from the endowment is set at |
between f30,000 and f40,000 | per annum | ||||||
| (after investment manager's fees), growing with inflation. |
||||||||
| 4.2 The Trustees ofthe Endowment are unwilling to draw down capital |
and as such there is no requirement for |
|||||||
| short term capital liquidity within the investment portfolio. |
| f | or the Year End | ed 31stDecember | 2021 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | ||||||||
| Unrestricted | Restricted | Total | Total | ||||||
| fund | fund | funds | funds | ||||||
| Notes | |||||||||
| INCOME AND ENDOWMENTS | FROM | ||||||||
| Charitable activities |
|||||||||
| Grants Payable | 10,000 | ||||||||
| Investment income |
44,496 | 21,251 | 65,747 | 61,047 | |||||
| Total | 44,496 | 21,251 | 65,747 | 71,047 | |||||
| EXPENDITURE | ON | ||||||||
| Raising funds | 566 | 566 | 520 | ||||||
| Charitable activities |
|||||||||
| Grants Payable | 49,600 | 49,600 | 40,644 | ||||||
| Governance | 780 | 780 | 770 | ||||||
| Management & administration |
ofthe charity | 3,512 | 3,512 | 3,060 | |||||
| Total | 54,458 | 54,458 | 44,994 | ||||||
| Net gains/(losses) | on investments | 5,375 | 136,137 | 141,512 | (224,793) | ||||
| NET INCOME/(EXPENDITURE) | (4,587) | 157,388 | 152,801 | (198,740) | |||||
| RECONCILIATION | OF FUNDS | ||||||||
| Total funds brought | forward | 59,741 | 1,306,368 | 1,366,109 | 1,564,849 | ||||
| TOTAL FUNDS | CARRIED | FORWARD | 55,154 | 1,463,756 | 1,518,910 | 1,366,109 |
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| filnd | fund | funds | funds | ||
| Notes | |||||
| FIXEDASSETS | |||||
| Investments | 50,815 | 1,450,594 | 1,501,409 | 1,337,910 | |
| CURRENT ASSETS | |||||
| Debtors | 20,000 | 20,000 | 20,000 | ||
| Cash at bank | 31,591 | 13,162 | 44,753 | 36,384 | |
| 51,591 | 13,162 | 64,753 | 56,384 | ||
| CREDITORS | |||||
| Amounts falling due within one year |
(30,274) | (30,274) | (18,741) | ||
| NET CURRENT ASSETS | 21,317 | 13,162 | 34,479 | 37,643 | |
| TOTAL ASSETSLESSCURRENT LIABILITIES | 72,132 | 1,463,756 | 1,535,888 | 1,375,553 | |
| CREDITORS | |||||
| Amounts falling due after more than one year |
10 | (16,978) | (16,978) | (9,444) | |
| NET ASSETS | 55,154 | 1,463,756 | 1,518,910 | 1,366,109 | |
| FUNDS | |||||
| Unrestricted funds |
55,1+ | 59,741 | |||
| Restricted funds |
1,463,756 | 1,306,368 | |||
| TOTAL FUNDS | 1,518,910 | 1,366,109 |
| INVESTMENT INCOME | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Investments representing Expendable Endowments |
Funds-Income | Received | ||||
| Charifund Income Units (M&G) |
38,105 | 33,595 | ||||
| Blackrock Charities UK Bond Fund Income | 4,228 | 4,464 | ||||
| Investments representing General Unrestricted |
Income Funds- | Income Received | ||||
| Charifund Income Units (M&G) |
1,283 | 1,161 | ||||
| Blackrock Charities UK Bond Fund Income | 146 | 154 | ||||
| Investments representing General Unrestricted |
Income Funds- | Income Reinvested | ||||
| Charifund Accumulation Units (M&G) |
668 | 659 | ||||
| Blackrock Charities UK Bond Fund Accumulation | 66 | 65 | ||||
| Total Income Received or Reinvested as General |
Unrestricted | Income Funds | 44,496 | 40,098 | ||
| Investments Representing Expendable Endowment |
Funds-Income | Reinvested | ||||
| Charifund Accumulation Units (M&G) |
19,335 | 19,072 | ||||
| Blackrock Charities UK Bond Fund Accumulation | 1,916 | 1,875 | ||||
| Total Income Reinvested as Expendable Endowment |
Funds | 21,251 | 20,947 | |||
| Total investment income after deduction offees |
65,747 | 61,045 |
| GRANTS PAYABLE | GRANTS PAYABLE | |||||
|---|---|---|---|---|---|---|
| Grants - Commitments | made in year | 2021 | 2020 | |||
| The Oxford Farming | Conference | |||||
| Committed | in 2014to X5,000 for conference | in January 2019. | ||||
| Paid X5,000 in 2018,Z5,000 in 2019,X5,000 | in 2020 and f5000 in 2021 | 5,000 | 5,000 | |||
| Nuffield FSTrust | ||||||
| Committed | to K5,000 in 2020. | 5,000 | ||||
| Severn River Trust | ||||||
| Committed | to f15,000 | in 2020,f12,000 paid | in 2020. | 15,000 | ||
| Community | Supported | Agriculture | ||||
| Committed | to f15,644 | in 2020, X11,200 paid | in 2020. | 15,644 | ||
| RASE | ||||||
| Committed | f10,000 in | 2020, K8,000 paid in 2021. | f10,000 | |||
| Pruex | ||||||
| Committed | f15,000 in | 2021,Paid f12,000 in 2021 | 815,000 | |||
| Innovation | for Agriculture | |||||
| Committed | f19,600 in | 2021,Paid K5,533 in 2021 | 5,19,600 | |||
| 549,600 | f40,644 | |||||
| Reconciliation ofGrants Payable |
||||||
| 2021 | 2020 | |||||
| Outstanding | Grants at 1stJanuary 2021 | 27.535 | 23,591 | |||
| Commitments made in |
the year 2021 | 49,600 | 40,644 | |||
| 77, 135 | 64,235 | |||||
| Grants paid | during the |
year 2021: | ||||
| RASE | 8,000 | |||||
| Pruex | 12,000 | |||||
| Oxford Farming Conference |
5,000 | |||||
| Innovation | for Agriculture | 5,533 | ||||
| 30,533 | 36,700 | |||||
| Outstanding | Grants at 31stDecember 2021 | 46,602 | 27,535 |
| SUPPORT | COSTS | |||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Governance | Costs | |||||
| Independent | Examiner's | Fee | ||||
| Farries, Kirk | & McVean | 780 | 770 | |||
| 780 | 727 | |||||
| Management | A Administration | |||||
| Secretarial | 3,400 | 3,000 | ||||
| Bank Charges | 96 | 60 | ||||
| Subscriptions | ||||||
| AgriFood Charities | Partnership | 300 | 300 | |||
| Civil Society | Media | 122 | 76 | |||
| Zoom | 144 | 144 | ||||
| Trustees' Expenses | ||||||
| Book | ||||||
| CP Bourchier | 16 | |||||
| 4,078 | 3,580 |
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Trustees' | Expenses | ||||
| Book | |||||
| CP Bourchier | 16 | ||||
| 16 | |||||
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | |||||
| Unrestricted | Restricted | Total | |||
| fund | fund | funds | |||
| INCOME | AND ENDOWMENTS | FROM | |||
| Charitable | activities | ||||
| Grants Payable | 10,000 | 10,000 | |||
| Investment | income | 40,099 | 20,948 | 61,047 | |
| Total | 50,099 | 20,948 | 71,047 | ||
| EXPENDITURE ON | |||||
| Raising funds | 520 | 520 |
| for the Year Ended 31stD | for the Year Ended 31stD | for the Year Ended 31stD | for the Year Ended 31stD | for the Year Ended 31stD | for the Year Ended 31stD | ecember 2021 | |||
|---|---|---|---|---|---|---|---|---|---|
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL | ACTIVITIES - | continued | |||||||
| Unrestricted | Restricted | Total | |||||||
| fund | fund | funds | |||||||
| Charitable activities |
|||||||||
| Grants Payable | 40,644 | 40,644 | |||||||
| Governance | 770 | 770 | |||||||
| Management & administration |
ofthe charity | 3,060 | 3,060 | ||||||
| Total | 44,994 | 44,994 | |||||||
| Net gains/(losses) on investments |
(7,511) | (217,282) | (224,793) | ||||||
| NET INCOME/(EXPENDITURE) | (2,406) | (196,334) | (198,740) | ||||||
| RECONCILIATION OF FUNDS |
|||||||||
| Total funds brought forward |
62,147 | 1,502,702 | 1,564,849 | ||||||
| TOTAL FUNDS CARRIED | FORWARD | 59,741 | 1,306,368 | 1,366,109 | |||||
| FIXEDASSET INVESTMENTS | |||||||||
| Listed | |||||||||
| investments | |||||||||
| MARKET VALUE | |||||||||
| At 1stJanuary 2021 | 1,337,910 | ||||||||
| Revaluations | 163,499 | ||||||||
| At 31stDecember 2021 | 1,501,409 | ||||||||
| NET BOOK VALUE | |||||||||
| At 31stDecember 2021 | 1,501,409 | ||||||||
| At 31stDecember 2020 | 1,337,910 | ||||||||
| There were no investment | assets outside the | UK. | |||||||
| a) Investments Representing |
Expendable | Endowment | Funds | ||||||
| The performance ofthe Trust |
portfolio for the year to 31 | December | 2021 may be summarised | as follows: | |||||
| Historic Cost | Market Value | Market Value | |||||||
| 31Dec 2020 | 31Dec 2021 | 31Dec 2020 | |||||||
| M & G Investment | |||||||||
| Charifund Income Unit |
731,731 | 780,314 | 688,238 | ||||||
| Charifund Accumulation |
Units | 318,361 | 481„027 | 404,049 | |||||
| Blackrock Fund Managers | Limited | ||||||||
| Blackrock Charities UK | Bond | Fund Income | 136,915 | 129,446 | 138,818 | ||||
| Blackrock Charities UK | Bond | Fund Accumulation | 58,678 | 59,807 | 62,100 |
| The perfo | rmance | oft | he | Trust portfolio for the year to 31 | December 2021 may be summar | ised as follows: |
|
|---|---|---|---|---|---|---|---|
| Historic Cost | Market Value | Market Value | |||||
| 31Dec 2020 | 31Dec 2021 | 31 Dec 2020 | |||||
| M &G Investment | g | g | |||||
| Chari fund | Income | Unit | 25,293 | 26,976 | 23,792 | ||
| Charifund | Accumulation | Units | 11,006 | 17,297 | 13,968 | ||
| Blackrock | Fund Managers | Limited | |||||
| Blackrock | Charities | UK | Bond Fund Income | 4,733 | 4,475 | 4,799 | |
| Blackrock | Charities | UK | Bond Fund Accumulation | 2,029 | 2,067 | 2,147 | |
| f43,061 | 50,815 | Z44,706 |
| The chan | ge in the value |
ofthe Trust's investments during 2021, compared wit |
h the relevant FTSE index, is as follows: | |
|---|---|---|---|---|
| 2021 | 2020 | |||
| M tk G Investment | ||||
| Charifund | Income Units | 1338% | -165% | |
| Charifund | Accumulation Units (with income reinvested) |
1905% | 129% | |
| FTSEAll-Share Index | +1326% | +11.3% | ||
| Blackrock | Fund Managers | Limited | ||
| Blackrock | Charities UK Bond Fund Income |
-6.75% | +14 | |
| Blackrock | Charities UK Bond Fund Accumulation |
369% | +5 8 | |
| FTSEUK | Gilts All-Stocks | Index | +081% | -1.49% |
| 2021 | 2020 |
|---|---|
| 20,000 | 20,000 |
| 2021 | 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Independent | Examiner's | Fee | ||||||||
| Farries, Kirk 8- McVean | 650 | 650 | ||||||||
| Grants Payable | ||||||||||
| Institute of | Agricultural | Management | (awaiting | matched | funding) | 10,000 | 10,000 | |||
| Windsor Leadership | Programme | -2018k 2019 | Scholar | 5,091 | 5,091 | |||||
| Severn Rivers Trust | 3,000 | 3,000 | ||||||||
| Pruex | 3,000 | |||||||||
| RASE | 2,000 | |||||||||
| Innovation | for Agriculture | 8,533 | ||||||||
| 32,274 | 18,741 |
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| Grants Payable | ||||||
| Windsor Leadership | Programme | 5,000 | 5,000 | |||
| Community Supported |
Agriculture | 4,444 | 4,444 | |||
| Innovation for Agriculture |
5,534 | |||||
| 14,978 | 9,444 | |||||
| MOVEMENT IN | FUNDS | |||||
| Net | ||||||
| movement | At | |||||
| At 1.1.21 | in | funds | 31.12,21 | |||
| Unrestricted funds |
||||||
| General Unrestricted | Income Funds | 59,741 | (4,587) | 55,154 | ||
| Restricted funds |
||||||
| Expendable Endowment |
Funds | 1,306,368 | 157,388 | 1,463,756 | ||
| TOTAL FUNDS | 1,366,109 | 152,801 | 1,518,910 |
| Incoming | Resources | Gains and | Movement | ||||||
|---|---|---|---|---|---|---|---|---|---|
| resources | expended | losses | in funds | ||||||
| Unrestricted funds |
|||||||||
| General Unrestricted | Income | Funds | 44,496 | (54,458) | 5,375 | (4,587) | |||
| Restricted funds |
|||||||||
| Expendable Endowment |
Funds | 21,251 | 136,137 | 157,388 | |||||
| TOTAL FUNDS | 65,747 | (54,458) | 141,512 | 152,801 | |||||
| Comparatives for |
movement | in funds | |||||||
| Net | |||||||||
| movement | At | ||||||||
| At 1.1.20 | in funds | 31.12.20 | |||||||
| Unrestricted funds |
|||||||||
| General Unrestricted | Income | Funds | 62,147 | (2,406) | 59,741 | ||||
| Restricted funds |
|||||||||
| Expendable Endowment |
Funds | 1,502,702 | (196,334) | 1,306,368 | |||||
| TOTAL FUNDS | 1,564,849 | (198,740) | 1,366,109 | ||||||
| Comparative net movement |
in | funds, included | in the above are as follows: | ||||||
| Incoming | Resources | Gains and | Movement | ||||||
| resources | expended | losses | in funds | ||||||
| Unrestricted funds |
|||||||||
| General Unrestricted | Income | Funds | 50,099 | (44,994) | (7,511) | (2,406) | |||
| Restricted funds |
|||||||||
| Expendable Endowment |
Funds | 20,948 | (217,282) | (196,334) | |||||
| TOTAL FUNDS | 71,047 | (44,994) | (224,793) | (198,740) |
| Net | |||||
|---|---|---|---|---|---|
| movement | At | ||||
| At 1.1.20 | in funds | 31.12.21 | |||
| Unrestricted funds |
|||||
| General Unrestricted | Income Funds | 62,147 | (6,993) | 55,154 | |
| Restricted funds |
|||||
| Expendable Endowment |
Funds | 1,502,702 | (38,946) | 1,463,756 | |
| TOTAL FUNDS | 1,564,849 | (45,939) | 1,518,910 |
| Incoming | Resources | Gains and | Movement | |||
|---|---|---|---|---|---|---|
| resources | expended | losses | in funds | |||
| Unrestricted funds |
||||||
| General Unrestricted | Income Funds | 94,595 | (99,452) | (2,136) | (6,993) | |
| Restricted funds |
||||||
| Expendable Endowment |
Funds | 42,199 | (81,145) | (38,946) | ||
| TOTAL FUNDS | 136,794 | (99,452) | (83,281) | (45,939) |
| The Frank Parkinson A ricultural Trust |
|||
|---|---|---|---|
| Detailed Statement ofFinancial Activities | |||
| for the Year Ended 31stDecember 2021 | |||
| 2021 | 2020 | ||
| INCOME AND ENDOWMENTS | |||
| Investment income |
|||
| Investment income |
65,747 | 61,047 | |
| Charitable activities |
|||
| Grants Returned | 10,000 | ||
| Total incoming resources |
65,747 | 71,047 | |
| EXPENDITURE | |||
| Charitable activities |
|||
| Grants to institutions | 49,600 | 40,644 | |
| Support costs | |||
| Management | |||
| Trustees' expenses |
16 | ||
| Sundries | 566 | 520 | |
| Secretarial | 3,400 | 3,000 | |
| Bank Charges | 96 | 60 | |
| 4,078 | 3,580 | ||
| Governance costs |
|||
| Accountancy and legal fees |
780 | 770 | |
| Total resources expended | 54,458 | 44,994 | |
| Net income | 11,289 | 26,053 |