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2021-03-31-accounts

Charity registration number: 211528

Folkestone Municipal Charity

Annual Report and Financial Statements

for the Year Ended 31 March 2021

Beresfords Chartered Certified Accountants

1-2 Rhodium Point Spindle Close Hawkinge Folkestone Kent CT18 7TQ

Folkestone Municipal Charity

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 3
Statement of Trustees' Responsibilities 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 14

Folkestone Municipal Charity

Reference and Administrative Details

Trustees Cllr M Kentenium Mr J Bonomy Cllr P West Cllr R C West Mr R C P Medlicott Mrs Cllr A Berry Mrs M Hunter Cllr P Gane Mrs S Thorne Mr P West Mrs R Braid Cllr P Bingham Principal Office Romney House Cliff Road Hythe Kent CT21 5XA Charity Registration Number 211528 Independent Examiner Beresfords Chartered Certified Accountants 1-2 Rhodium Point Spindle Close Hawkinge Folkestone Kent CT18 7TQ

Page 1

Folkestone Municipal Charity

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021.

Objectives and activities

Objects and aims

The objective of the charity is to provide relief in need to residents of Folkestone by provision of grants to individuals or organisations and by payment of monthly awards to needy residents.

Objectives, strategies and activities

The charity receives referrals from social services and other sources. All cases are referred to the committee of trustees or, in cases of emergency, to such members of the executive committee as are available.

Relief in need, when sanctioned by the trustees, is made available wherever possible by payment direct to suppliers of goods and services.

Public benefit

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 trustees as a group meet in order to decide upon grant applications. Grants are made if the trustees feel the application has merit and is in line with the charity's constitutional aims.

Achievements and performance

The funds that have been required for the relief of need have been generated by income from investments, leaving a net surplus before investment gains for the year of £22,078 (2019 - £17,404). The charity continues to hold investments in authorised charitable investments. These investments showed a gain on the previous years valuation of £637,606 (2019 - £233,188 loss).

Financial review

Policy on reserves

The trustees maintain a reserve of £33,000 in order to fund any unanticipated expenditure or to cover the normal expenditure of the charity should there be a change in the incoming resources. Any other unrestricted funds are to be spent in accordance with the charity's constitution.

Investment policy and objectives

The trustees have the power to invest in such assets as they see fit. Due to the present market conditions, the trustees consider their current investments to be the most appropriate in order to generate income to meet their anticipated expenditure.

Going concern

After making appropriate enquiries, the trustees have a resonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

The trustees have considered the circumstances of Covid 19 and do not regard them having an impact on the charity's ability to continue as a going concern.

Page 2

Folkestone Municipal Charity

Trustees' Report

Structure, governance and management

Nature of governing document

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. It was registered with the Charity Commission with effect from 29th June 1984 under the charity number 211528.

Recruitment and appointment of trustees

Trustees are appointed when a vacancy occurs by personal recommendation from existing trustees and elected at an annual general meeting.

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mrs S Thorne Trustee

Page 3

Folkestone Municipal Charity

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the trustees to prepare financial statements 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mrs S Thorne Trustee

Page 4

Folkestone Municipal Charity

Independent Examiner's Report to the trustees of Folkestone Municipal Charity

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 14.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Folkestone Municipal Charity 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 Folkestone Municipal Charity'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:

  1. accounting records were not kept in respect of Folkestone Municipal Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. 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.

...................................... Mr Daniel Payne FCCA Beresfords Chartered Certified Accountants 1-2 Rhodium Point Spindle Close Hawkinge Folkestone Kent CT18 7TQ

Date:.............................

Page 5

Folkestone Municipal Charity

Statement of Financial Activities for the Year Ended 31 March 2021

Unrestricted Unrestricted Total
funds 2021
Note £ £
Income and Endowments from:
Investment income 2 129,574 129,574
Total income 129,574 129,574
Expenditure on:
Charitable activities (107,496) (107,496)
Total expenditure (107,496) (107,496)
Gains/(losses) on investment assets 637,606 637,606
Net income 659,684 659,684
Net movement in funds 659,684 659,684
Reconciliation of funds
Total funds brought forward 3,568,668 3,568,668
Total funds carried forward 12 4,228,352 4,228,352
Unrestricted Total
funds 2020
Note £ £
Income and Endowments from:
Investment income 2 130,317 130,317
Total income 130,317 130,317
Expenditure on:
Charitable activities (112,913) (112,913)
Total expenditure (112,913) (112,913)
Gains/(losses) on investment assets (233,188) (233,188)
Net expenditure (215,784) (215,784)
Net movement in funds (215,784) (215,784)
Reconciliation of funds
Total funds brought forward 3,784,452 3,784,452
Total funds carried forward 12 3,568,668 3,568,668

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 12.

The notes on pages 8 to 14 form an integral part of these financial statements. Page 6

Folkestone Municipal Charity

(Registration number: 211528) Balance Sheet as at 31 March 2021

2021 2020
Note £ £
Fixed assets
Investments 9 4,093,486 3,455,880
Current assets
Debtors 10 28,930 21,607
Cash at bank and in hand 107,578 96,217
136,508 117,824
Creditors: Amounts falling due within one year 11 (1,642) (5,036)
Net current assets 134,866 112,788
Net assets 4,228,352 3,568,668
Funds of the charity:
Unrestricted income funds
Unrestricted funds 4,228,352 3,568,668
Total funds 12 4,228,352 3,568,668

The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Mrs S Thorne Trustee

The notes on pages 8 to 14 form an integral part of these financial statements. Page 7

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Accounting policies

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) (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.

Basis of preparation

Folkestone Municipal Charity 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 notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Page 8

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Investment properties

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Fixed asset investments

Fixed asset investments, other than programme related 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.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Page 9

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

2 Investment income

Unrestricted
funds Total
General funds
£ £
Income from dividends;
Dividends receivable from other listed investments 109,400 109,400
Interest receivable and similar income;
Interest receivable on bank deposits 58 58
Other interest receivable 16,066 16,066
Income from rents 4,050 4,050
Total for 2021 129,574 129,574
Total for 2020 130,317 130,317

3 Expenditure on charitable activities

Unrestricted
funds Total
General funds
Note £ £
Staff costs 3,250 3,250
Grants and donations 13,970 13,970
Monthly grants 61,215 61,215
Relief in need 25,987 25,987
Management 1,423 1,423
Governance costs 1,651 1,651
Total for 2021 107,496 107,496
Total for 2020 112,913 112,913

4 Analysis of governance and support costs

Governance costs

Unrestricted
funds Total
General funds
£ £
Independent examiner fees
Examination of the financial statements 1,651 1,651
Total for 2021 1,651 1,651

Page 10

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

5 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

6 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
2021 2020
£ £
Staff costs during the year were:
Honoraria 3,250 3,841

No employee received emoluments of more than £60,000 during the year

Honoraria represents the Secretary's fee.

7 Independent examiner's remuneration

2021
£
Examination of the financial statements 1,651

8 Taxation

The charity is a registered charity and is therefore exempt from taxation.

9 Fixed asset investments

9
Fixed asset investments
2021 2020
£ £
Investment properties 168,500 168,500
Other investments 3,924,986 3,287,380
4,093,486 3,455,880

Page 11

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

Investment properties

Investment properties
Investment
properties
£
Cost or Valuation
At 1 April 2020 168,500
Provision
At 31 March 2021 -
Net book value
At 31 March 2021 168,500
At 31 March 2020 168,500
There has been no valuation of investment property by an independent valuer.

Other investments

Other investments
Listed
investments Total
£ £
Cost or Valuation
At 1 April 2020 3,287,380 3,287,380
Revaluation 637,606 637,606
At 31 March 2021 3,924,986 3,924,986
Net book value
At 31 March 2021 3,924,986 3,924,986
At 31 March 2020 3,287,380 3,287,380

Page 12

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

10 Debtors

10 Debtors
2021 2020
£ £
Accrued income 28,930 21,607
11 Creditors: amounts falling due within one year
2021 2020
£ £
Bank overdrafts - 3,404
Accruals 1,642 1,632
1,642 5,036
12 Funds
Other Balance at
Balance at 1 Incoming Resources
recognised		 31 March
April 2020 resources expended
gains/(losses)		 2021
£ £ £ £ £
Unrestricted funds
General 3,568,668 129,574 (107,496)
637,606		 4,228,352
Other Balance at
Balance at 1 Incoming Resources
recognised		 31 March
April 2019 resources expended
gains/(losses)		 2020
£ £ £ £ £
Unrestricted funds
General 3,784,452 130,317 (112,913)
(233,188)		 3,568,668
13 Analysis of net assets between funds
Unrestricted Total funds at
funds 31 March
General 2021
£ £
Fixed asset investments 4,093,486 4,093,486
Current assets 136,508 136,508
Current liabilities (1,642) (1,642)
Total net assets 4,228,352 4,228,352

Page 13

Folkestone Municipal Charity

Notes to the Financial Statements for the Year Ended 31 March 2021

Unrestricted Total funds at
funds 31 March
General 2020
£ £
Fixed asset investments 3,455,880 3,455,880
Current assets 117,824 117,824
Current liabilities (5,036) (5,036)
Total net assets 3,568,668 3,568,668

Page 14