MRS M H ALLEN TRUST
KNOWN AS
THE FORCES TRUST
(As approved by the Charity Commission)
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
Page 1 Index Page 2 Reference and Administration Information
Page 3 - 5
Page 6
Page 7 Page 8 Page 9 12
Statement of Financial Activities Balance Sheet Notes to the Financial Statements
THE FORCES TRUST
Registered Charity No. 211529
REFERENCE AND ADMINISTRATIVE INFORMATION
TRUSTEES
Captain Andrew P.C Niekirk, R Yeo Lieutenant Colonel William D. Niekirk, R Sigs Lieutenant General Richard E. Nugee CB CVO CBE Mr Brooke E.V Bowater Mr Andrew Alderson
CORRESPONDENCE ADDRESS
Lieutenant General R E Nugee CB CVO CBE Drews Mill Devizes Wiltshire SN10 5LH
BANKERS
Rathbone Investment Management Ltd Port of Liverpool Building Pier Head, Liverpool L3 1NW
INVESTMENT MANAGERS
Rathbone Investment Management Ltd Port of Liverpool Building Pier Head Liverpool L3 1NW
INDEPENDENT EXAMINERS
Woodlands Grange Woodlands Lane Bradley Stoke, Bristol BS32 4JY
THE FORCES TRUST
The Trustees present their Report and Financial Statements for year ended 5 April 2021.
REFERENCE AND ADMINSTRATIVE INFORMATION
Details are shown on page 2.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The governing Document is the Will of Mrs Minnie Harriet Allen dated 22 February 1918. Mrs Allen died on 5 February 1924. The Trust is a registered Charity and is exempt from income tax and capital gains tax.
Working Name
The charity is registered as
Appointment of Trustees
The power of appointing new Trustees vests in the Trustees. The chair of trustees is responsible for the induction of any new trustee which involves a briefing on a trustee's responsibilities, the governing document, administrative procedures, the history of the trust and the philosophical approach of the charity. All trustees provide their services as trustees for free.
Key Management Personnel
The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. The trustees receive no remuneration.
Related Party Transaction
There were no related party transactions during the period ending 5[th] April 2021.
Risk Management
The trustees have considered the risks that the Charity is likely to face in the coming year and have identified two potential areas of risk which are mitigated as indicated:
Risk : Severely reduced income
Loss in value of investments
Key mitigating controls already in place:
If required, payments to grant recipients could be reduced or suspended
Risk: Reputation
Conflicts of interests Support to controversial causes Charges of discrimination, unfairness or breach of trust Failure to make awards in keeping with the ethos, values and objectives of the Trust
Key mitigating controls already in place:
Conflict of interest policy and meeting declarations by attendees
THE FORCES TRUST
OBJECTIVES AND ACTIVITIES IN THE YEAR
Under the terms of the Will the Trustees shall stand possessed of the Trust Fund upon trust to pay or distribute the capital or income for such Naval and/or Military Charities or institutions and in such proportions as they may in their absolute discretion from time to time select.
The Trustees consider possible charitable beneficiaries subject to the restrictions imposed by Mrs Generally, the Trustees are more inclined, for the time being, to benefit Service Charities that assist the individual rather than those that support buildings and property.
The Trustees met in January 2021 virtually, although it was suggested that every effort would be made to meet in person in 2022. A detailed discussion took place on the ESG rating of all the stocks in the portfolio and it was agreed that the environmental reporting on each category would follow Rathbones' formal mechanism for reporting, put in place in 2021.
The be distributed in 2024), to continue to be invested in Fundsmith. The distribution of the Centenary Fund was discussed, and a short list of potential beneficiaries was proposed. The Trustees agreed to continue to fund The Not Forgotten and Mission Motorsport but were particularly pleased to be able to support Scotty's Little Soldiers and the Naval Children's Charity, with a focus on supporting children this year. The Trustees also agreed to support Blind Veterans (UK) through the continuing pandemic, providing online support to those blinded.
PUBLIC BENEFIT
In meeting the objectives, the Trustees have given careful consideration to general guidance on public benefit and consider that all grants made meet this guidance.
FINANCIAL REVIEW
The results for the year are shown on page 7. The charitable grants listed on page 12 were allocated during the year and were paid in the year to 5 April 2021. The total grant spend in the 2020/21 40,000. As this is in line with the agreed annual distribution of income, the Trustees remain At 5[th] April 2021 the investment portfolio showed an increase on the prior year of 18.6% (2020: decrease of 10.9%).
Reserves Policy
The Trustees have resolved that, since there was no provision made in the Will of Mrs M.H. Allen for a permanent endowment fund to be established, they are able to regard the whole of their investment portfolio together with divested Capital cash as expendable endowment for the purposes of the Trust. The Capital Fund disclosed in the Financial Statements has resulted from the original bequest together with reinvested gains and surpluses less capital costs. The Trustees usually expend the majority of the income arising year on year. The reserves policy was amended in January 2019 to increase the income available to be able to increase funds to be dispersed, to about a maximum of
THE FORCES TRUST
Investment Policy
The investment policy had been reviewed and will be amended in line with a modified reserves policy
Professional Advisers and Bankers
Following the appointment of Rathbones Investment Management Ltd in June 2013, Rathbones continue to act as the trust s investment managers and bankers.
FUTURE PLANS
In line with the Revised Investment Policy, the Trustees determined that an increased level of Reserves should be achieved in order to increase substantially the amount that can be distributed in line with the Objects of the Charity. In the short term (2 years) this would be through a combination of a slightly reduced annual expenditure to acceptable levels, in order to meet the targets within the investment policy. The policy would be reviewed for the performance and direction on a regular basis.
Law applicable to charities in England and Wales requires the Trustees to prepare Financial Statements for each financial year which gives a true an during the year and of its financial position at the end of the year. In preparing Financial Statements giving a true and fair view, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether the policies are in accordance with applicable accounting standards;
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prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the Trust and which enable them to ensure that the Financial Statements comply with the applicable law. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and irregularities.
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A. Alderson
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Date:
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MRS M H ALLEN TRUST, OPERATION UNDER THE NAME “THE FORCES TRUST”
I report to the charity trustees on my examination of the accounts of Mrs M H Allen Trust, operating under the name ‘The Forces Trust’ (“the Trust”) for the year ended 5 April 2021.
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 Act and in carrying out my examination I have followed all 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
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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.
Matthew Dobbins FCA Dunkley's Woodlands Grange Woodlands Lane Bradley Stoke Bristol BS32 4JY
Date: .....19/01/2022........................................
Page 1
The Forces Trust Balance Sheet At 5 April 2021
| Note Capital Fund Investments 2 1,425,443 Current Assets Cash at Bank 3 41,422 Creditors 4 3,462 Net Current Assets 37,960 1,463,403 - Representing: Capital Fund Investment fund 1,463,403 Income Funds Centenary - Income - Fund Balances 7 1,463,403 - |
Income Fund 135,450 1,150 576 574 136,024 (35,939) - 35,939 100,085 136,024 35,939 - |
2021 1,560,893 42,572 4,038 38,534 1,599,427 - 1,463,403 35,939 100,085 1,599,427 - |
2020 1,350,659 69,461 3,571 65,890 1,416,549 (17,954) 1,291,239 20,000 105,310 1,416,549 |
|---|---|---|---|
All Funds are unrestricted
The notes on pages 9 to 12 form part of these Financial Statements.
THE FORCES TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
1. ACCOUNTING POLICIES Accounting convention
These accounts have been prepared for the year to 5[th] April 2021.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
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) (Charities SORP FRS 102) issued on , the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The date of transition to the Charities SORP FRS 102 was 1 April 2016. The charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the financial statements requires the trustees to make significant judgements and estimates. The principal item in the accounts where a judgement or an estimate has been made is in respect to estimating future income and expenditure flows to enable the Trustees to assess the impact of the Covidand going concern (see below).
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements and in light of the recent Covidexercise a significant degree of control over its expenditure. The Trustees will continue to keep both income and expenditure under review.
The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
Income
All income is included on the Statement of Financial Activities when the charity is legally entitled to the income, it is probable that it will be received and the amount can be quantified with reasonable accuracy.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Governance and administration costs are apportioned equally between the capital and income funds, investment management fees are allocated wholly to the capital fund and grants awarded are allocated wholly to income funds. Grant expenditure - a constructive obligation for grants payable exists once it has been communicated to the recipient. Upon the obligation existing, where payment is probable and can be measured reliably, the entire grant is accounted for in the Statement of
THE FORCES TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
Financial Activities, less any amounts that rely upon the recipient meeting performance-related conditions.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Investments
Quoted investments have been valued at market value at the Balance Sheet date. Unrealised and realised investment gains and losses are shown net in the Statement of Financial Activities. Realised gains and losses are calculated by reference to the original cost and the sale proceeds.
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
Fund accounting
The Trustees have resolved that, since there was no provision made in the Will of Mrs M.H. Allen for a permanent endowment fund to be established, they are able to regard the whole of their investment portfolio together with divested Capital cash as expendable endowment for the purposes of the Trust. The Capital Fund disclosed in the Financial Statements has resulted from the original bequest together with reinvested gains and surpluses less capital costs. It was agreed in January 2019 that the Trust would set up a Designated Fund under the title of the Centenary Fund, to be invested and reported on as a separate part of the overall investments so that in 2024, the centenary of the death of Mrs M H Allen, a much larger than normal fund would be available to the centenary. In the year to 5 Centenary fund, held in the Fundsmith LLP Investment Fund; with income gains, the balance on the fund now stands at .
Statement of cash flows
The financial statements do not include a statement of cash flows because the charity is exempt from the requirement to prepare such a statement under the Charities SORP FRS 102 Update Bulletin 1.
The Forces Trust
Notes to the Financial Statements
For the year ended 5 April 2021
| 2. Investments | 2021 2020 |
2021 2020 |
|---|---|---|
| Market Value 6 April 2020 Cost of Investments acquired Proceeds of Investments sold Net cash invested/(disinvested) Realised gains in the year Unrealised gains/(losses) in the year Market Value 5 April 2021 |
1,350,659 326,390 (300,349) 26,041 1,376,699 70,756 113,437 184,193 1,560,893 |
1,515,744 422,296 (441,163) (18,867) 1,496,877 90,245 (236,463) (146,218) 1,350,659 |
The Forces Trust
Notes to the Financial Statements
For the year ended 5 April 2021
| 3. Cash Balances Brokers' Accounts Brokers' Accounts 2020 4. Creditors Accountancy and Independent Examiners Fee Investment Manager's Fees Creditors 2020 |
Capital Income 2021 2020 Fund Fund Total 41,422 1,150 42,572 69,461 41,422 1,150 42,572 67,637 1,824 69,461 Capital Income 2021 2020 Fund Fund Total 576 576 1,152 1,140 2,886 - 2,886 2,431 3,462 576 4,038 3,571 3,001 570 3,571 |
|---|---|
5. Trustees
No trustees were paid any remuneration or receive any benefit from the charity.
The Forces Trust
Notes to the Financial Statements
For the year ended 5 April 2021
| 6. Charitable Grants | Charity | 2021 | 2020 |
|---|---|---|---|
| Number | |||
| Blind Veterans UK | 216227 | 4,500 | - |
| Erskine | SC006609 | - | 5,000 |
| First Light Trust | 1149496 | - | 5,000 |
| Mission Motorsport - Race, Retain, Recover | 1146159 | 15,000 | 15,000 |
| Naval Children's Charity | 1160182 | 4,500 | - |
| Sandes | 250718 | - | 9,000 |
| Scotty's Little Soldiers | 1170528 | 10,000 | - |
| The Not Forgotton Association | 1150541 | 6,000 | 6,000 |
| 40,000 | 40,000 |
| 7. Funds Funds at 6 April 2020 Brought Forward Income Expenditure Realised and Unrealised Gains on Investments Transfer between funds Funds at 5 April 2021 Carried Forward 8. Net Assets of the Funds Investments Current Assets Funds at 5 April 2021 Carried Forward Investments Current Assets Funds at 6 April 2020 Brought Forward |
Capital Centenary Income 2021 Fund Fund Fund Total 1,291,239 20,000 105,310 1,416,549 - - 51,339 51,339 (12,029) - (40,625) (52,654) 184,193 - - 184,193 - 15,939 (15,939) - 1,463,403 35,939 100,085 1,599,427 Capital Centenary Income 2021 Fund Fund Fund Total 1,425,443 35,939 99,511 1,560,893 37,960 - 574 38,534 1,463,403 35,939 100,085 1,599,427 Capital Centenary Income 2020 Fund Fund Fund Total 1,226,603 20,000 104,056 1,350,659 64,636 - 1,254 65,890 1,291,239 20,000 105,310 1,416,549 |