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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable 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 will continue in business. 

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**<br>**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**<br>**recognised**|||||**31 March**||
||**April 2020**||**resources**||**expended**<br>**gains/(losses)**|||||**2021**||
||**£**||**£**||**£**|**£**||||**£**||
|**Unrestricted funds**||||||||||||
|General|3,568,668||129,574||(107,496)<br>637,606|||||4,228,352||
|||||||**Other**||||**Balance at**||
||**Balance at 1**||**Incoming**||**Resources**<br>**recognised**|||||**31 March**||
||**April 2019**||**resources**||**expended**<br>**gains/(losses)**|||||**2020**||
||**£**||**£**||**£**|**£**||||**£**||
|**Unrestricted funds**||||||||||||
|General|3,784,452||130,317||(112,913)<br>(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