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2022-12-31-accounts

NORTH EAST THAMES QUAKER TRUST

REGISTERED CHARITY NO. 212164

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

CHARTERED ACCOUNTANTS

CLEMENCE HOAR CUMMINGS

NORTH EAST THAMES QUAKER TRUST REGISTERED CHARITY NO. 212164

CONTENTS PAGE

FOR THE YEAR ENDED 31ST DECEMBER 2022

INDEX

Page 1 - 5 Report of the Trustees
6 Report of the Independent Examiner
7 Balance Sheet
8 Statement of Financial Activities
9 - 11 Notes to the Accounts

Page 1

NORTH EAST THAMES QUAKER TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2022

The Trustees present their report and the independently examined accounts of the Charity for the year ended 31st December 2022.

REFERENCE AND ADMINISTRATIVE DETAILS REFERENCE AND ADMINISTRATIVE DETAILS
Charity Number: 212164
Principal Office: 10 Isabella Road
London
E9 6DX
Independent Examiner: D.M. Belbin BSc BFP FCA DChA
Clemence Hoar Cummings
Riverside House
1-5 Como Street
Romford
Essex, RM7 7DN
Bankers: CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent ME19 4JQ
Investment Managers: Cheviot Quilter Ltd
One Kingsway
London
WC2B 6AN
Administrator: Colin South (Until 31/3/23)
Helen Carmichael (From 1/4/23)

TRUSTEES

The trustees serving during the year and since the year end were therefore as follows: Clerks: Alexander Gournay Trustees: Irene Davies Kate Green Alexander Gournay Richard Bryden Chris Evans Brenda Geraghty

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

North East Thames Quaker Trust is governed by the Ancient charities administered together as a common fund since 1821, as updated on 11th September 2008. North East Thames Quaker Trust gained its charitable status on 27th January 1966.

Page 2

NORTH EAST THAMES QUAKER TRUST

REPORT OF THE TRUSTEES CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

Recruitment and Training of Trustees

North East Thames Area Quaker Meeting of the Religious Society of Friends appoints new Trustees in session according to the Governing Scheme.

Induction is provided by the Administrator of the Trust on behalf of Trustees by way of telephone conversations and a welcome pack containing a letter, reference to CC3 (Charity Commission booklet 'The Essential Trustee - What you need to know'), a list of useful addresses, a history of the Trust, a statement of investment policy, copies of the previous two sets of minutes, the financial statement for the preceding year and a brief job description. Induction continues at our meetings and in conversation with other Trustees and the Clerk.

Training Courses for Trustees are provided by Britain Yearly Meeting of the Religious Society of Friends and the professional bodies who act as our advisors. Trustees are encouraged to participate. The initial appointment for Trustees is for a period of five years which can be extended for a second period of five years.

Administration of the Trust

During 2022 Trustees prepared for the retirement of long-serving Trust Administrator Colin South. An open recruitment process was planned and held and Helen Carmichael was appointed to start with a handover period in 2023.

Related Parties and Connected Organisations

Considerations of Pan-London governance processes within the Religious Society of Friends in London are in process and likely to develop in 2023.

Risk Management

In consideration of, and preparation for the Annual Report in particular, and at other times during the course of the year, Trustees formally consider the risks concerning the security of the Trust assets, the protection of the value of the Trust assets in perpetuity, the security of funds in distribution and the appropriateness of procedures leading to decisions in distribution of funds. Such matters are reported in the Minutes of Trustee Meetings and summarised in the Annual report of the Trust.

The present policies and protocols of the Trust which include details of the scheme and its recent amendment are available in a published booklet.

Public Benefit

The Trustees are mindful of the guidance issued by the Charity Commission on public benefit and balancing those considerations with the Trust's deed.

OBJECTIVES

The Trust owns a range of investments, the income from which first funds the management of the business of the Trust and then the net income is distributed according to the following formula agreed with the Charity Commission.

the relief of hardship of members and attenders of the North East Thames Area Quaker Meeting by such means as the Trustees shall decide from time to time and, at the Trustees' discretion, by means of grants to charities established for this purpose, of members and attenders of the Religious Society of Friends (Quakers) elsewhere;

the advancement of education in accordance with the principles of the Religious Society of Friends (Quakers). The trustees are to make payments of a minimum of 5% of the net income of the charity in the furtherance of this aim

the religious and other charitable purposes of the Religious Society of Friends (Quakers) by means of grant or loan to the North East Thames Area Quaker Meeting or its successor or successors.

The North East Thames Area Quaker Meeting appoints Trustees to have overall responsibility for the Trust and to ensure that the income is distributed accordingly and within the Trusts objectives, many of which date from the beginning of the nineteenth century.

Page 3

NORTH EAST THAMES QUAKER TRUST

REPORT OF THE TRUSTEES CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW

Review of Investment Policy

Trustees agreed that there should be a review of NETQT ethical investment policies early in 2022 to ensure that they are informed by and responsive to BYM’s present policy. Sums available for investment/re-investment were valued at £2,775,488 (December 2022). A review of NETQT ethical investment policies during 2022 was completed in early 2023.

Disbursement of Funds

Trustees planned for a minimum disposable income of £100,000 in 2022 derived from dividends and interest. If required, Trustees were prepared to draw down extra funds from the investment portfolio to meet any shortfall or further demand on funds in 2022 as a consequence of the pandemic. The total income in 2022 (excluding funds from the Percy Bartlett Trust which amounted to £5,276) was £86,042 to which was added £61 drawn down from cash savings/ investments during the year. The total expenditure in the year excluding investment management costs was £120,981 of which £12,801 was for administration (10.6%). There were payments made to previous beneficiaries of £5,276 in 2022

The Three Funds of the Trust

Apart from the cost of administration, disbursement was from three funds which derive in name from the purposes of the Trust in the Charity Commission Scheme and the associated original donor restrictions; the Hardship Fund , the General Fund, the Education Fund.

The Hardship Fund is, under the terms of the Charity Commission Scheme (2008) for the relief of Hardship, defined by Trustees as being, by default, available to anyone on Government benefits or to anyone whose income is below the Living Wage where applicants are not receiving Government benefits. The Charity Commission expects that this should be the greater part of the distribution of income as it derives from the greatest number of original donors to the Trust. In practise the amount distributed is determined largely by demand. In 2022 the sum distributed was £59,461. Included in this figure are block grants from the Hardship Fund agreed by Trustees to other Trusts and charitable funds including the Friends Housing Bursary Trust (£5,000), the Hope Fund (£7,541), Mid Essex Area Meeting (£7,000) and Young Adult Quakers Fund (£6,000). Such other trusts are required to report to NETQT Trustees each year on disbursements and existing balances. Such Trusts must verify to the NETQT that individual disbursements from these block grants from the Hardship Fund have met the eligibility criteria generally required by NETQT Trustees.

The General Fund is for the general support of the North East Thames Quaker Trust and the distribution of the monies granted by the Trust is at the discretion of the Area Meeting. Currently this comprises a general grant to the Area Meeting (£10,000 per annum) and Meeting House upkeep grant in support of London Quaker Property Trust which is responsible for NETAQM Meeting Houses. (£20,000 per annum)

The Education Fund , which derives in origin from the Elizabeth Hearn legacy, was set up to help support Friends School, Croydon. Friends School, Croydon (from 1786) had its origins in a school facility for poor children originally part of the Friends Clerkenwell workhouse for children and the elderly. This facility became Friends School, Croydon which then moved to Saffron Walden (1879). Following the Scheme (2008) and the closure of Friends School Saffron Walden in 2017, Trustees decided to invest in Friends Schools education more widely and in areas of greatest need. In 2020, Trustees made a three year commitment (2020-2022) to funding girls education in Turkhana/Sambaru, Kenya at the request of Friends United Meeting. The final payments had not been made during 2022. In addition, Trustees agreed a grant in December 2022 to Quaker Congo Partnership for the Bakavu Schools’ emergency relief project, for £10,000 from the Education fund.

Page 4

NORTH EAST THAMES QUAKER TRUST

REPORT OF THE TRUSTEES CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

With the greater discretion given to Trustees by the Charity Commission, a part of the Education Fund was made available to Pastoral Care Team of the NETAQM to fund a broader interpretation of Quaker education in the Area Meeting where AM funding was not appropriate. This tranche of the Education Fund grant is known as the Pastoral Care (Education) and over the triennium (2021-23) the grant made available is £5000 per year with any balance carried forward.

THE PERCY BARTLETT TRUST

During 2022 NETQT continued to support Percy Bartlett Trust grantees and let Quakers know that the funds are available from NETQT. It was felt that it would be better closing and transferring the trust and the balance in the fund to North East Thames Quaker Trust. The Trust was deregistered with the Charity Commission during 2021 and the balance eventually of £32,884.74 transferred to NETQT on 13[th] October, 2021.

MODIFICATION OF CHARITY COMMISSION SCHEME

The Charity Commission accepted a modification, on 20[th] October 2021, to the wording of the Scheme to include more inclusive language and to allow members of other Area Meetings to be proposed to NETAQM and, if accepted, appointed as Trustees of NETQT. This last modification to the governance of the Trust were in response to the recent increase in opportunities for distribution of funds to other Area Meetings in Britain. This modification was recorded in the latest review of NETQT Policy document in December 2021.

TRANSFER OF LEIGH ON SEA LOCAL MEETING INTO MEMBERSHIP OF MID ESSEX AREA MEETING

The transfer of Leigh on Sea LM to MEAM effective 1[st] January 2022 has meant a close look at continuing payments to existing LoS beneficiaries and new applications to the Trust from LoS members and attenders. It was agreed that such transitions to any new arrangements should be as smooth as possible and be continuously accessible. NETQT has continued to support existing grantees from LoS. A grant of £2,000 was made to Mid-Essex Area Meeting for the relief of hardship of Mid-Essex Friends through distribution by Mid-Essex AM pastoral care team.

INVESTMENT POWERS AND POLICY

The Trust utilises Cheviot Quilter Ltd stockbrokers to manage quoted stock exchange investments. The firm is required to ensure that such investments provide an adequate yield, whilst respecting the ethical principles deemed appropriate by the Religious Society of Friends (Quakers).

The firm acts in accordance with the Investment Policy determined by the Trustees and in conformity with the requirements of Charity Law. Cheviot Quilter Ltd is a member of The London Stock Exchange and is regulated by The Financial Services Authority. All stock exchange investments are registered in the name of a nominee company (Citi Quilter), and are free of any lien by Cheviot Quilter Ltd.

Additional investments are held in two charity property funds.

Page 5

NORTH EAST THAMES QUAKER TRUST

REPORT OF THE TRUSTEES CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

RESERVES POLICY

The Trustees have decided to hold unspent accumulated income in interest bearing cash accounts so that this unspent income may be protected against inflation and available for use as required. From time to time, unspent income previously held as cash may be reinvested.

The Trustees review the reserves of the Charity including the nature and extent of income streams, and the need to match income with fixed commitments and the nature of those reserves. The Unrestricted Funds are sufficient to allow the Charity to continue to provide relief from hardship and the other charitable objects of the Charity for at least the next 12 months.

INDEPENDENT EXAMINER

As part of their risk management policy outlined above the Trustees have decided that the audit / independent examination of the accounts would be put out to tender every five years commencing with the financial year ending on 31 December 2016 to protect the quality of the audit / independent examination process. Trustees appointed Clemence Hoar Cummings to examine the 2022 and 2023 accounts and annual report of Trustees, whilst a re-tender process is undertaken.

TRUSTEE RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the Trustees are required to;

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

......................................................… Alexander Gournay - Clerk to Trustees

......................................................… Kate Green - Trustee

19 July 2023

Page 6

NORTH EAST THAMES QUAKER TRUST REGISTERED CHARITY NO. 212164

INDEPENDENT EXAMINER'S REPORT

TO THE MEMBERS OF NORTH EAST THAMES QUAKER TRUST

I report on the Balance Sheet of North East Thames Quaker Trust for the year ended 31st December 2022 and of the Statement of Financial Activities for the year ended on that date and the associated notes set out on pages 6 to 10 which have been prepared.

RESPECTIVE RESPONSIBILITIES OF THE TRUSTEES AND EXAMINER

The charity's Trustees are responsible for the preparation of the Statement of Financial Activities and of the Balance Sheet. The charity's Trustees consider that an audit is not required for this period under Section 144(2) of the Charities Act 2011 (the Act),and that an independent examination is required.

It is my responsibility to:

I read the Trustees report and consider the implications for our report if I become aware of any apparent misstatements within it.

BASIS OF OPINION

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out in the statement below.

INDEPENDENT EXAMINER'S STATEMENT

In connection with my examination, no matter has come to my attention:

D.M. Belbin BSc BFP FCA D Clemence Hoar Cummings Chartered Accountants Riverside House 1-5 Como Street Romford Essex RM7 7DN

19 July 2023

Page 7

NORTH EAST THAMES QUAKER TRUST REGISTERED CHARITY NO. 212164

BALANCE SHEET

FOR THE YEAR ENDED 31ST DECEMBER 2022

Note
FIXED ASSETS
Investments
4
CURRENT ASSETS
Cash at bank
Cash on account with agents and advisers
CREDITORS:Amounts falling due
within one year
5
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS
Unrestricted funds
7
Designated Funds
Revaluation Funds
General Fund
Restricted Funds
7
£
£
2,775,488
14,415
11,756
26,171
(2,677)
23,494
£
2,798,982
-
667,718
2,131,264
2,798,982
-
£
2,798,982
31.12.22
31.12.21 31.12.21
£
£
3,265,511
43,940
11,756
55,696
(2,599)
53,097
£
3,318,608
-
1,285,650
2,042,958
3,328,608
(10,000)
£
3,318,608
£
3,265,511
53,097

Approved on behalf of the Trustees by

…………………………………….. Alexander Gournay - Clerk to Trustees

…………………………………….. Kate Green - Trustee

19 July 2023

Page 8

NORTH EAST THAMES QUAKER TRUST

REGISTERED CHARITY NO. 212164

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST DECEMBER 2022

31.12.22 31.12.21
General Restricted Total Total
Funds Funds Funds Funds
Note £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and Legacies - - - 32,885
Investment Income 91,379 - 91,379 86,546
Charitable Activities - - - -
Total Income 91,379 - 91,379 119,431
EXPENDITURE ON:
Raising Funds 2 11,660 - 11,660 12,030
Charitable Activities 2 110,981 10,000 120,981 123,638
Total Expenditure 122,641 10,000 132,641 135,668
.
Net Income / (Expenditure) Before Gains and Losses on Investments (31,262) (10,000) (41,262) (16,237)
Realised Gain / (Loss) on Disposal of Investments (28,993) - (28,993) 20,514
Unrealised Gain / (Loss) on Holding of Investments 4 (449,371) - (449,371) 339,247
NET INCOME FOR THE YEAR (509,626) (10,000) (519,626) 343,524
Transfer from General Fund to Restricted Fund 7 (20,000) 20,000 (0) -
NET MOVEMENT IN FUNDS (529,626) 10,000 (519,626) 343,524
RECONCILIATION OF FUNDS
Total Funds Brought Forward at 1st January 2022 3,328,608 £ (10,000) £ 3,318,608 2,975,084
Total Funds Carried Forward at 31st December 2022 £ 2,798,982 £ - £ 2,798,982 £ 3,318,608
0 #REF!

Page 9

NORTH EAST THAMES QUAKER TRUST

(REGISTERED CHARITY NO. 212164)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31ST DECEMBER 2022

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

a) Basis of Accounting

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.

North East Thames Quaker Trust 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 note(s).

b) Fund Accounting

c) Incoming Resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. Therefore the investment income recognised is the income for the financial period, even though the last quarter's income is received into the charity's accounts in the following period.

d) Resources Expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

Expenditure on Raising Funds includes the costs of investment management since these are incurred as a direct result of the Trustees' decision to have the investment portfolio managed professionally to produce a combination of both income and capital growth

e) Fixed Assets

Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.

f) Taxation

As a charity, The North East Thames Quaker Trust is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.

Page 10

NORTH EAST THAMES QUAKER TRUST

(REGISTERED CHARITY NO. 212164)

NOTES TO THE ACCOUNTS CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

2. EXPENDITURE
Relief of Hardship
Percy Bartlett Trust Beneficiaries
Support Costs
Independent Examination
Office Expenses
North East Thames Area Quaker Meeting Religious and other
Charitable Purposes
Advancement of Education including Elizabeth Hearn Legacy
payments
Expenditure incurred on Raising Funds - Investment
Management Fees
31.12.22
£
11,660
30,000
13,442
59,462
5,276
2,655
10,146
132,641
31.12.21
£
12,030
30,000
19,964
61,719
-
2,577
9,378
135,668

3. TRANSACTIONS WITH TRUSTEES

Trustee Indemnity Insurance amounted to £490 (2021:£470). Travel and other expenses reimbursed to Trustees were Nil (2021: Nil).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the period.

4. INVESTMENTS
Listed Investments
Balances at 1st January 2022
Acquisitions
Disposals in Year
Unrealised Gain / (Loss) in Year
Movement in cash deposits
Balances at 31st December 2022
Property Investment Funds
Balances at 1st January 2022
Acquisitions
Unrealised (Loss) / Gain in Year
Balances at 31st December 2022
Total Investments at 31st December 2022
31.12.22
Market
Cost
Value
£
£
1,380,234
2,078,736
86,687
86,687
(172,705)
(155,892)
-
(333,571)
28,553
28,553
1,322,769
1,704,513
785,000
1,186,775
-
-
-
(115,800)
785,000
1,070,975
2,107,769
2,775,488
31.12.21 31.12.21
Cost
£
1,380,234
86,687
(172,705)
-
28,553
1,322,769
785,000
-
-
785,000
2,107,769
Cost
£
1,363,249
195,648
(140,658)
-
(38,005)
1,380,234
785,000
-
-
785,000
2,165,234
Market
Value
£
1,889,521
195,648
(178,558)
210,130
(38,005)
2,078,736
1,057,658
-
129,117
1,186,775
3,265,511

Page 11

NORTH EAST THAMES QUAKER TRUST

(REGISTERED CHARITY NO. 212164)

NOTES TO THE ACCOUNTS CONT….

FOR THE YEAR ENDED 31ST DECEMBER 2022

5. CREDITORS
Other creditors and accruals
6. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Investments
Current assets
Current liabilities
Total Assets
7. MOVEMENT IN FUNDS
As At
01.01.22
£
Restricted Funds:
Elizabeth Hearn Legacy
(10,000)
-
Unrestricted Funds:
Designated Funds
Relief of Hardship Fund
-
-
Investment Revaluation Reserve
1,285,650
General Funds
2,042,958
3,328,608
Total Funds
3,318,608
North East Thames Area Quaker Meeting
Fund
Advancement of Education
(Pastoral Care Team Fund)
General
Funds
£
2,775,488
26,171
(2,677)
2,798,982
Incoming
Resources
(inc. gains)
£
-
-
-
-
(449,371)
62,386
(386,985)
(386,985)
Designated
Funds
£
-
-
-
-
Outgoing
Resources
(inc. losses)
£
(10,000)
(10,000)
(59,461)
(3,442)
(30,000)
-
(29,738)
(122,641)
(132,641)
31.12.22
2,677
Restricted
Funds
£
-
-
-
-
Transfers
£
20,000
20,000
59,461
3,442
30,000
(168,561)
55,658
(20,000)
(0)
31.12.21
2,599
Total
Funds
£
2,775,488
26,171
(2,677)
2,798,982
As At
31.12.22
£
-
-
-
-
667,718
2,131,264
2,798,982
2,798,982

Purpose of Restricted Funds

Elizabeth Hearn Legacy (previously Walden School): To reflect the donation to be made for the advancement of education under the terms of the Scheme being a minimum of 5% of net income. Payments during the year under this category were £10,000 which exceeded 5% of net income.

Purpose of Designated Funds

Relief of Hardship Fund: this fund shows the monies used during the year to contribute towards the costs of grants made to relieve the hardship of members and attenders of the North East Thames Area Quaker Meeting or other members and attenders of the Religious Society of Friends (Quakers) during the financial year.

Advancement of Education Pastoral Care Team Fund : This fund shows the monies used during the year to contribute towards the costs of education as requested on a case by case basis by Pastoral Care Team of the North East Thames Area Meeting during the financial year.

North East Thames Area Quaker Meeting Fund: this fund is set up in accordance with the powers vested in Trustees under the new scheme to contribute to the Life of North East Thames Quaker Meeting.

Revaluation Reserves: This revaluation reserve fund is required by UK accounting standards and represents the amount by which investments and freehold property exceed their historical cost.

Transfers Between Funds

The following transfers have been made in respect of costs incurred during the year; £59,461 (2021 - £61,179) from General Funds to the Financial Relief Fund, £30,000 (2021- £30,000) from General Funds to The North East Thames Area Quaker Meeting Fund and £3,442 (2021£9,964) from General Funds to the Pastoral Care Team Education Fund.