Charity number: 212450
THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE NATIONAL BENEVOLENT CHARITY
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 10 |
| Independent Auditors' Report on the Financial Statements | 11- 14 |
| Statement of Financial Activities | 15- 16 |
| Balance Sheet | 17 |
| Statement of Cash Flows | 18 |
| Notes to the Financial Statements | 19- 38 |
THE NATIONAL BENEVOLENT CHARITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023
| Trustees | Richard Bromilow |
|---|---|
| John Churchill (co-opted 12December 2023) | |
| Geoffrey Clements | |
| Victoria Daniell | |
| Revd John Hunnisett | |
| James Golob, Chairman | |
| Claire Maxwell (co-opted 12December 2023) | |
| Grahame Nicholson | |
| Hazel Sewell (co-opted 12December 2023) | |
| Charity registered number Registered Office Patron Chief executive officer Ali Russell Independent auditors Randall & Payne LLP Statutory Auditors Shurdington Road Cheltenham Gloucestershire GL51 4GA Bankers HSBC Bank plc The Cross Gloucester Gloucestershire GL1 2AP Solicitors Stone King LLP 13 Queen Square 13 Queen Square BA1 2HJ Investment Managers (to 31 December 2023) Rathbones 8 Finsbury Circus London EC2M 7AZ Investment Managers M&G Investments 10 Fenchurch Avenue EC3M 5AG Correspondence Address 212450 Chargrove House Shurdington Road Cheltenham Gloucestershire GL51 4GA TNBC PO Box 108 Tetbury GL8 0BC HM King Charles III |
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their annual report together with the audited financial statements of the Charity for the 1 January 2023 to 31 December 2023.
2023 was the year when inflation really took hold and the cost-of-living crisis, precipitated by the Ukraine War and the budget of Autumn 2022 started to make a significant impact on the charity and its beneficiaries. The steep rise in the cost of food and energy and other essentials meant that organisations such as the CAB were reporting an unprecedented rise in requests for help and the Joseph Rowntree Foundation documented an unprecedented rise in number of people sinking into destitution (3.8 million in 2022-23).
These impacts were apparent to the charity in the delivery of programmes for both individual and organisational grants. The number of applications to the individual grants programme steadily increased throughout the year and for the first time the charity had to close to new applications for individuals regularly to ensure that there were enough funds to support applicants. And, in the early part of the year, as it became clear that demand was high, the trustees agreed to commit an additional £40,000 to the individual grants programme. This increased the available budget for individual grants to £260,000 and ultimately this enabled the charity to award 729 individual grants which was an increase of 115 on the previous year.
The cost-of-living crisis also affected the organisations applying for funds through the Improving Lives Fund. Although the number of grant applications received from organisations increased only slightly as compared to the previous year, almost all applications were for core costs, such as salaries and running costs, as charities grappled with a perfect storm of increased demand for their services, dwindling funding and rising costs.
In recognition of these challenges, trustees increased the average grant award in Gloucestershire, Wiltshire, and Swindon from £7,679 to £8,779.86, and although this meant that slightly fewer organisations were supported (42 as compared with 45 in 2022) the overall spend was slightly up on the previous year.
The trustees were also keen to hear from organisations about some of their challenges and in May they met with grantee partners Alabaré at their headquarters in Salisbury who gave an insight into their provision of accommodation and support for the homeless. Salisbury Women's Refuge also gave a talk about the challenges faced by women leaving abusive relationships and in particular the housing difficulties many face. And, in September Trustees visited One 25, a Bristol women’s charity that reaches out to some of the city’s most marginalised women to hear first-hand of the complexities of supporting traumatised women. Staff at Babbasa Youth Empowerment Project also talked about how they inspire and support under-represented young people in Bristol.
Both board visits were successful in providing trustees and staff with a more in-depth understanding of the organisations work and their beneficiaries.
The trustees also continued with the strategic changes started in 2020 to streamline the charities activities to focus on grant making. After discussion, and in recognition of the change in working practices, with staff working from home, trustees agreed to dispose of the charity offices and associated flats. The property was advertised with local estate agents in September 2023 and successfully completed in March 2024 achieving more than the asking price of £1.5 million. A proportion of the funds from the sale were reinvested and the remainder retained for use by the charity during 2024.
The Trustees also ran a successful campaign to recruit new Trustees to the board. The campaign began in summer 2023 with consultants Peridot and Partners carrying out the search and helping with shortlisting, support, and advice. The trustees were delighted with the quality of candidates which applied and were very pleased when three new Trustees were co- opted onto the board in December 2023.
In terms of finance, the charity’s investments had been badly impacted by the events of 2022 which had seen the value of the investments reduce from £26,266,626 the end of 2021 to £23,919,930 at the end of 2022. In 2023 the recovery was maintained with a slight increase to £23,998,717. The Trustees therefore considered it prudent to maintain the charity’s grant giving at the same level in 2024 but resolved to review the performance of the fund managers. They also committed to put aside some of the receipt from the sale towards the - development of a project focused grant for survivors of domestic violence.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Objectives and activities
a. Policies and objectives
The objects of the Charity are for the relief of qualifying persons who need assistance by reason of old age, infirmity, sickness, or economic circumstances.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Strategies for achieving objectives and performance
In 2023 the Charity gave financial help in the form of individual grants, grants to organisations and the provision of subsidised housing. All grants are made following the policy and guidelines approved by the board of Trustees and the Charity's governing documents.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Objectives and activities (continued)
b. Individual Grants
Types of Grants
The Charity awarded individual welfare grants to meet essential costs, including food and clothing, furniture, white goods, minor repairs, utility bills and training or work tools. In exceptional circumstances grants were also awarded for bankruptcy and debt relief orders, flooring, disability aids, minor home or garden improvements, rent arrears or debts. Successful applicants may receive a grant worth up to £1,000.00.
Minimum Applicant Criteria
Applicants needed to be over 18 years old, have UK citizenship or have been granted leave to remain and have lived in the UK for twelve months.
Application Process
Applicants complete an application form online explaining what the grant will be used for and why it is needed. They are also asked to provide details of their financial situation, disabilities or health issues or other exceptional circumstances and are requested to provide bank statements, medical reports, and details of a professional referrer. Most applications are assessed by the Grant Manager, applications for exceptional items are assessed by the Welfare Committee.
Grants Made
In 2023 the Charity received 1132 applications for individual grants and made 729 awards (2022: 614 awards). The average value of the award was £337 (2022 £362.00). This included 145 grants for appliances such as a fridge, freezer, washing machine or cooker,194 grants for household goods including beds and bedding, 140 vouchers for food and clothing and the remainder for “other items” such as bankruptcy orders, flooring, and baby equipment. Despite the increase in funds available for Individual Grants the average grant was slightly lower as applicants were asking for essentials such as food and clothing rather than white goods, which are more expensive to purchase.
Applicant Profile
68% percent of applicants identified as female, and 51% percent were under 40 years old. Over 25% of applicants had experienced domestic violence prior to applying and 25% had been refused credit. Applicants are invited to complete an ethnicity monitoring form, but it is not compulsory. Of the 1132 applicants 875 completed the monitoring form and of these 425 identified as British or English and a further 164 preferred not to say. Other responses included African, Indian, and Pakistani.
Expenditure
The charity spent £246,000 on individual grants during the year an increase of £23,593 on the previous year.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Objectives and activities (continued)
c. Grants to Organisations
Types of Grants
Grants are made to organisations which support beneficiaries experiencing poverty or hardship. The grants are aimed at organisations operating in Bristol, Gloucestershire, or Wiltshire & Swindon. The charity is mindful in its grant making of good practice and has signed up to the IVAR principles of Open and Trusted Grant Making.
Application Process
Applicants to the Gloucestershire Improving Lives fund can apply through the website or through Gloucestershire Funders. Applicants to Wiltshire and Swindon can only apply through the website. Grants are for a maximum of £10,000 per year and multiyear grants for two years and unrestricted grants will also be considered. In Bristol the application process is closed to unsolicited applications, but the charity continued to support selected applicants. Grant awards did not exceed £30,000 during the year. Guidance is clearly laid out on the website for all three geographical areas and a funding policy for the Improving Lives Fund is in place.
Grants Made
In 2023 we supported 42 organisations with grants (2022:45). Of these 33 were new grant awards, these were seven new one-year grants in Bristol, thirteen new one-year grants in Gloucestershire and 13 new one-year grants in Wiltshire & Swindon. The value of grants ranged from £1,000 to £30,000 per annum. Gloucestershire based organisations received £139,983, Bristol based organisations £81,000 and Wiltshire & Swindon based organisations £167,312. A total of £388,295 was spent on grants to organisations, this was a small increase of £13,295 on the previous year. £207,982 was awarded to organisations working with the destitute, £104,660 went to organisations working to strengthening families and £74,653 went to organisations working in education, training, employment, and financial resilience.
Beneficiaries supported by the organisations were those on low incomes, carers, people with mental or physical health issues, people with addictions, those experiencing domestic violence, women, children, and young people, those from the black and ethnic minority communities and older people.
d. Regular payments
The Charity phased out Regular Payments at the end of 2021. The charity now has only one regular beneficiary. All former regular beneficiaries are encouraged to apply to the Charity through the individual grants programme should they find themselves in financial difficulty.
e. Housing
Peter Hervé House & Lenox House
The Charity has two accommodation blocks in Tetbury which also house the charity office. Peter Hervé House, a purpose-built block designed for independent living, is occupied by single people, in one bedroom apartments and one two-bed apartment. Lenox House is a refurbished 16th century coach house and grade Il listed building which comprises two one-bed flats. The accommodation blocks are occupied by charity and commercial tenants. There is a communal garden for the use of all tenants. Throughout the year the properties were managed by Cirencester Sales and Lettings and were approximately 80% occupied. In early 2023 Trustees agree to sell both properties to release capital and focus on grant making activities. In September the blocks were marketed and were sold in March 2024. Charity residents have been given a reassurance that should they want to look for new accommodation within a year of the sale they will be offered financial help by the charity.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Objectives and activities (continued)
f. Partnerships
Charity staff are active members of the Association of Charitable Organisations and regularly attend training sessions and the CEO is a member of the CEO network. The Charity is also a member of the Association of Charitable Foundations, and staff regularly attended their specialist networks and training, and used their resources to inform good practice.
The CEO took up the Chair of the Bristol Funders Network in January 2023 spearheading a new strategy for the group in late 2023 and the Organisation Grants Manager remains active in Gloucestershire Funders Group and Swindon & Wiltshire Funders Network.
The Individual Grants Manager has also strengthened relationships with referral agencies such as Citizens Advice, Step Change, Money Advice and Refugee Council.
The charity was one of several partners who developed research into the financial impact of Appliance Poverty and a report was published in June 2023.
A collaboration was explored with Fair 4 You to look at the possibility of supporting appropriate applicants with credit to purchase goods however the project faltered due to the brokering rules applied to credit providers.
g. Public Benefit
The Trustees are aware of Public Benefit provisions of the Charities Act 2011 and of the guidance on them published by the Charity Commission. They are satisfied that the Objects of the Charity and the activities of the Charity are within the definitions of Charitable Purposes as set down in the Act in that they are for the relief of poverty, and for the relief of those in need because of old age, infirmity sickness or economic circumstances.
The Trustees are not aware of any public detriment caused by the Charity's Objects or activities, and nor are they aware of anyone receiving any private benefit from the Charity's activities.
h. Policies
During the year, the Charity reviewed and approved its policies on Individual Grants, Improving Lives (Organisation Grants) Complaints Health, and Safety including Fire and Hybrid Working ensure that they comply with current legislation and good practice.
Financial review
a. Going concern
After making appropriate enquiries, The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the near future. For this reason, they continue to adopt the going concern basis in preparing financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
b. Reserves policy
The Charity’s reserves policy is based on an assessment of the volatility and certainty of each of the organisation’s main income streams; a potential need for unplanned or unexpected expenditure and the requirement to maintain sufficient working capital to ensure the continuing smooth running of the Charity. The Trustees decided that it would be appropriate at normal times to maintain a free reserves of three months' expenditure. This provides enough funds to cover management, administration, and payments to beneficiaries. Some of this may be held by the Investment Managers, outside the managed portfolio.
Currently, it aims to hold £85,000 in reserve in the current account and £215,000 in the Rathbones Reserve Account giving a total general reserve of £300,000. Monies greater than these amounts held in either account at the end of the year will be either invested or used for charitable giving depending on the circumstances at the time. The Charity has unrestricted funds invested of £22,179,315 compared to £22,058,775 the previous year.
c. Material investments policy
The Charity seeks to produce the best possible financial return within an acceptable level of risk, which is classified as a level 5 by their professional investment managers (with level 1 being the lowest risk level and level 6 being the highest).
The investment objective is to generate a total return of CPI plus 4% per annum over the long- term, net of all fees. Returns from these funds are required to provide for the Charity’s grant making for the near future and it is therefore essential to invest with a longer-term perspective.
The Charity adopts a total return approach to investment, generating the investment return from income and capital gains or losses. It is expected that, in the long term, the real value of the portfolio will be maintained in accordance with the investment objective above.
During the year the value of the portfolio increased by £78,785 to £23,998,715 but did not return to the 2021 yearend figure of £26,266,626, prior to the Autumn 2022 budget.
d. Financial risk management objectives and policies
The charities’ total funds at the end of 2023 were £ 23,998,717 compared with £23,919,930 at the end of 2022. Total income, however, was £867,742, down from £1,428,5968 the previous year. This was due mainly to a reduction in legacy and dividend income . Rental income was £76,472, a slight increase from the previous year (2022:£72,051).
Total expenditure on charitable activities was £999,050 up from £875,684 in 2022 due to the increase spend on all grants. Expenditure on governance was down to £6,170 from £60,255 the previous year.
e. Future Developments
The Trustees continually review the financial, economic, and social environments in which the Charity operates to adapt or change policy and practice. Specific plans include the development of legacy fundraising, in addition to continuing to build partnerships with other trusts, foundations and charities, strengthening the governance and board and improving public awareness of our grant making programmes.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Structure, governance and management
a. Constitution
The National Benevolent Charity is a registered charity, number 212450, and is constituted under a Royal Charter.
The National Benevolent Charity was founded as the National Benevolent Institution by Peter Hervé in 1812 and is a Registered Charity constituted under a Royal Charter of 5th November 1859 (Number RC000364), and supplemental Royal Charters of 17th March 1948, 12th February 1997, and an Order in Council of 19th July 2005.
The change of the Charity's name to The National Benevolent Charity was approved by HM The Queen meeting in Privy Council on 14th December 2011.
Amendments to modernise the Royal Charter and remove the upper age qualification were approved on 16th February 2022.
The Charity is also governed by its Bye Laws, first adopted by the Charity 10th September 2009 and modernised and amended to remove the upper age qualification and to allow for general meetings via electronic means on 16th Feb 2022.
b. Methods of appointment or election of Trustees
The Trustees of the Charity are the Board of Trustees.
The General Meeting may make appointments to the Board as detailed in Byelaws 12 and 13. Each Trustee shall be elected for a three-year term, and such a term will expire at the end of the third Annual General Meeting following the Annual General Meeting at which they are elected. At the end of each term, a Trustee may be re-elected for up to two further terms of office of three years.
There shall be a Board of Trustees, consisting of not more than twelve and not less than four Members qualified in law to act as Trustees to direct and manage the affairs and concerns of the Charity.
c. Trustees
The Board of Trustees is responsible for the strategic direction and policy of the Charity. They met four times during 2023.
The work of the Board of Trustees is supported by the Finance and Investment Committee and the Welfare Committee. Both Committees are governed by Terms of Reference.
The Welfare Committee met four times in the year. They are responsible for welfare strategy and individual and organisation grant making. They receive a monthly report on the individual grants programme and make collective decisions on exceptional applications. Decisions regarding grants to organisations are made by the Welfare Committee during the Grants Panel meeting, held seven times during the year.
The Finance and Investment Committee is responsible for financial reporting and oversight of the Charity investments. They met four times in the year including one meeting with Rathbones, the Charity Investment Managers.
The Charity employs four staff. Ali Russell, Chief Executive, Dawn Swirczek, Office Manager, Jane Weaver Individual Grants and Property Manager and Vicky Oram-Ohern, Organisation Grants Manager.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Structure, governance and management (continued)
d. Related party relationships
Related parties include all the members of the Board of Trustees. There have been no transactions with related parties during the year.
e. Financial risk management
Risks are kept under review. The Trustees believe that the greatest risk to the Charity is that there is a significant fall in investment income which will affect the funds that can be distributed to beneficiaries. The Trustees are satisfied that systems are in place to mitigate this risk and its effects.
f. Subsidiary Charities
There are no subsidiary charities remaining.
g. Restricted funds
The Henderson request is a restricted fund providing accommodation or assistance to former members of the nursing or care professions. The fund is invested in a Charifund account managed by M&G Investments.
h. Land and Property
Land registrations have been completed for the Charity's property.
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THE NATIONAL BENEVOLENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 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.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Randall & Payne LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ Mr James Golob Chairman of the Board Date: 4 June 2024
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THE NATIONAL BENEVOLENT CHARITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NATIONAL BENEVOLENT CHARITY
Opinion
We have audited the financial statements of The National Benevolent Charity (the 'Charity') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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THE NATIONAL BENEVOLENT CHARITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NATIONAL BENEVOLENT CHARITY (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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THE NATIONAL BENEVOLENT CHARITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NATIONAL BENEVOLENT CHARITY (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our audit planning process gave consideration to the risk of material misstatement in the financial statements, using the calculated materiality level which itself factored in the nature of the Charity's operations and the interpreted levels of inherent and control risk.
In assessing the risk of fraud we reviewed management's own assessment of potential for fraud within the entity
and reviewed judgements made by management to identify possible bias, in addition to any opportunity and incentive for fraud that are in inherent in the nature of the Charity's operations. Our detailed testing included review of accounting estimates and judgements and validation of prime ledger entries.
We confirmed our knowledge of the legal and regulatory environment of the entity through discussions with management. We analysed all information available to us in respect of relevant laws and regulations, including the Companies Act 2006, the Charities SORP and relevant UK tax legislation and enquired with management as
to any possible breaches in the aforementioned.
We agreed the accuracy of the financial statements to the supporting management information provided by the client and tested individually on a sample basis the income and expenditure in the financial statements to consider the business rationale behind the transactions and the accuracy of the financial records.
Our audit testing did not identify any issues in respect of the matters listed above, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
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THE NATIONAL BENEVOLENT CHARITY
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NATIONAL BENEVOLENT CHARITY (CONTINUED)
Ryan Moore CA (Senior Statutory Auditor) Randall & Payne LLP
Chartered Accountants & Statutory Auditors Chargrove House Shurdington Road Cheltenham Gloucestershire GL51 4GA Date: 12 August 2024
Randall & Payne LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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THE NATIONAL BENEVOLENT CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023
| Note Income and endowments from: Donations and legacies 3 Charitable activities 4 Investments 5 Other income 6 Total income and endowments Expenditure on: Raising funds: 7 Movement in provision for regular payments . Other raising funds Charitable activities 8 Total expenditure Net (expenditure)/income before net (losses)/gains on investments Net (losses)/gains on investments Net movement in funds |
Endowment funds 2023 £ - - - - - - - - - - - - |
Restricted funds 2023 £ - - - - - - - 37,325 37,325 (37,325) (4,428) (41,753) |
Unrestricted funds 2023 £ 18,221 76,472 768,049 5,000 867,742 - 109,221 961,725 1,070,946 (203,204) 323,744 120,540 |
Total funds 2023 £ 18,221 76,472 768,049 5,000 867,742 - 109,221 999,050 1,108,271 (240,529) 319,315 78,787 |
Total funds 2022 £ 255,516 72,051 1,095,221 5,808 1,428,596 (988) 113,227 875,684 987,923 440,673 (2,787,368) (2,346,695) |
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THE NATIONAL BENEVOLENT CHARITY
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| Note Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Endowment funds 2023 £ 1,672,692 - 1,672,692 |
Restricted funds 2023 £ 188,463 (41,753) 146,710 |
Unrestricted funds 2023 £ 22,058,775 120,540 22,179,315 |
Total funds 2023 £ 23,919,930 78,787 23,998,717 |
Total funds 2022 £ 26,266,626 (2,346,695) 23,919,931 |
|---|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 20 to 39 form part of these financial statements.
Page 16
THE NATIONAL BENEVOLENT CHARITY
BALANCE SHEET AS AT 31 DECEMBER 2023
| Note Fixed assets Tangible assets 13 Investments 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Total net assets Charity funds Endowment funds 19 Restricted funds 19 Unrestricted funds 19 Total funds |
3,694 344,279 347,973 (22,395) |
2023 £ 1,176,731 22,496,406 23,673,137 325,578 23,998,715 23,998,715 1,672,692 146,710 22,179,313 23,998,715 |
12,626 449,402 462,028 (13,747) |
2022 £ 1,176,731 22,294,918 |
|---|---|---|---|---|
| 23,471,649 448,281 |
||||
| 23,919,930 | ||||
| 23,919,930 | ||||
| 1,672,692 188,463 22,058,775 |
||||
| 23,919,930 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ Mr James Golob Chairman of the Board Date: 4 June 2024
The notes on pages 20 to 39 form part of these financial statements.
Page 17
THE NATIONAL BENEVOLENT CHARITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year (including cash held in investments) |
2023 £ (1,071,946) 768,049 - 3,551,145 (3,033,383) 1,285,811 - 213,865 866,722 1,080,587 |
2022 £ (734,135) 1,095,221 (6,731) 3,241,479 (3,742,962) 587,007 - (147,128) 1,013,850 866,722 |
|---|---|---|
The notes on pages 20 to 39 form part of these financial statements
Page 18
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. General information
The National Benevolent Charity was founded as the National Benevolent Institution by Peter Herve in 1812 and is a Registered Charity constituted under a Royal Charter of 5th November 1859 and supplemental Royal Charters of 17th May 1948, 12th February 1997, an Order in Council of 19th July 2005 and 14th December 2011.
The change of the Charity's name to The National Benevolent Charity was approved by HM The Queen meeting in Privy Council on 14th December 2011.
The Registered Charity number is 212450. The Royal Charter number is RC000364.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The National Benevolent CharityThe National Benevolent 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.
2.2 Going concern
The National Benevolent Charity has net current assets of £325,578 (2022: £448,282) and total net assets (which includes the Charity's investment portfolio) of £23,814,682 (2022: £23,919,930). The Charity manages its working capital requirements carefully through bank balances and income generated from its investments. The Charity ensures that robust budgets are set and that actual spend against these budgets is analysed on a monthly basis by the Chief Executive and subsequently by the Board of Trustees' Finance Sub-Committee. The forecast figures for 2023/24 continue to show positive cash flow and maintenance of a strong balance sheet position. Having regard to these matters, the Trustees consider it appropriate to prepare the financial statements using a going concern basis. The Trustees do not consider that there are any material uncertainties that may cast significant doubt about the Charity's ability to continue as a going concern.
Page 19
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the Charity's educational operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.
All costs are allocated between the expenditure categories of the Statement of Financial Activities on
a basis designed to reflect use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on the basis of management estimates of the amount attributable to that activity in the year either by reference to staff time, space occupied, or estimated usage, as appropriate.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Page 20
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.4 Expenditure (continued)
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
2.5 Interest receivable
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.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
No depreciation is provided on freehold buildings. It is the Charity's practice to maintain these assets
in continual state of sound repair and to extend and make improvements thereto from time to time. Accordingly the Trustees consider that the lives of these assets are so long, and residual values so high, that the depreciation is insignificant. Any permanent diminution in the value of such buildings will be charged to the Statement of Financial Activities as appropriate.
Scheduled maintenance and repair work is recognised in the Statement of Financial Activities as the commitment arises.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate
that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
Tangible fixed assets are carried at costs, net of depreciation and any provision for impairment.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
- Freehold property not provided for (see note 13)
2.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
Fair value measure is determined with reference to observable market share/ instrument prices.
Page 21
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.10 Liabilities and provisions
Liabilities 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.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.11 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.12 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 22
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
3. Income from donations and legacies
| Unrestricted funds 2023 £ Donations 5,493 Legacies 12,728 18,221 Total 2022 255,516 |
Total funds 2023 £ 5,493 12,728 18,221 255,516 |
Total funds 2022 £ 30,740 224,776 |
|---|---|---|
| 255,516 | ||
4. Income from charitable activities
| Unrestricted funds 2023 £ Rental Income 76,472 Total 2022 72,051 |
Total funds 2023 £ 76,472 72,051 |
Total funds 2022 £ 72,051 |
|---|---|---|
Page 23
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
5. Investment income
Dividends Total 2022
| Unrestricted funds 2023 £ 768,049 1,095,221 |
Total funds 2023 £ 768,049 1,095,221 |
Total funds 2022 £ 1,095,221 |
|---|---|---|
6. Other incoming resources
| Unrestricted funds 2023 £ Employment allowance 5,000 Other income - 5,000 Total 2022 5,808 |
Total funds 2023 £ 5,000 - 5,000 5,808 |
Total funds 2022 £ 5,000 808 |
|---|---|---|
| 5,808 | ||
7. Expenditure on raising funds
Costs of raising voluntary income
| Unrestricted funds 2023 £ Publicity 4,270 Portfolio Management Fees 104,951 109,221 Total 2022 113,227 |
Total funds 2023 £ 4,270 104,951 109,221 113,227 |
Total funds 2022 £ 5,199 108,028 |
|---|---|---|
| 113,227 | ||
Page 24
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
7. Expenditure on raising funds (continued)
Fundraising trading expenses
| Unrestricted funds 2023 £ Movement in provision for regular payments - Total 2022 (988) |
Total funds 2023 £ - (988) |
Total funds 2022 £ (988) |
|---|---|---|
8. Analysis of expenditure on charitable activities
Summary by fund type
| Accomodation Beneficiaries Knowles Foster Homes Peter Herve Benevolent Institution Governance Total 2022 |
Restricted funds 2023 Unrestricted funds 2023 £ £ 17,030 126,976 14,496 815,871 - - 4,349 14,158 1,450 4,720 37,325 961,725 - 875,685 |
Total 2023 £ 144,006 830,367 - 18,507 6,170 999,050 875,685 |
Total 2022 £ 110,014 552,742 106,956 45,718 60,255 |
|---|---|---|---|
| 875,685 | |||
Page 25
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
9. Analysis of expenditure by activities
| Accomodation Beneficiaries Knowles Foster Homes Peter Herve Benevolent Institution Governance Total 2022 |
Activities undertaken directly 2023 £ 106,991 768,675 - - - 875,666 829,013 |
Support costs 2023 £ 37,015 61,692 - 18,507 6,170 123,384 46,672 |
Total funds 2023 £ 144,006 830,367 - 18,507 6,170 999,050 875,685 |
Total funds 2022 £ 110,014 552,742 106,956 45,717 60,256 |
|---|---|---|---|---|
| 875,684 | ||||
Analysis of direct costs
| Accomodation 2023 Beneficiaries 2023 £ £ Staff costs 26,767 132,133 Grants 268 635,554 Regular payments - 988 Property costs 66,034 - Legal and professional 5,589 - General administrative 8,333 - 106,991 768,675 Total 2022 96,042 529,455 |
Knowles Foster Homes 2023 £ - - - - - - - 106,956 |
Peter Herve Benevolent Institution 2023 £ - - - - - - |
|---|---|---|
| - | ||
| 38,732 |
Page 26
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
9. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
| Staff costs Grants Regular payments Property costs Legal and professional General administrative Total 2022 |
Governance 2023 £ - - - - - - - 57,828 |
Total funds 2023 £ 158,900 635,822 988 66,034 5,589 8,333 875,666 829,013 |
Total funds 2022 £ 187,787 571,198 988 60,722 7,035 1,283 |
|---|---|---|---|
| 829,013 | |||
Analysis of support costs
| Accomodation 2023 Beneficiaries 2023 £ £ Staff costs 19,722 32,870 Grants 158 263 Property costs 3,405 5,675 Legal and professional 5,032 8,387 General administrative 8,698 14,497 37,015 61,692 Total 2022 13,972 23,287 |
Peter Herve Benevolent Institution 2023 £ 9,861 79 1,703 2,516 4,349 18,508 6,986 |
Governance 2023 £ 3,287 26 568 839 1,449 6,169 2,426 |
Total funds 2023 £ 65,740 526 11,351 16,774 28,993 123,384 46,672 |
Total funds 2022 £ 1,479 - 18,075 20,548 6,570 |
|---|---|---|---|---|
| 46,672 | ||||
Page 27
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
10. Auditors' remuneration
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual | ||
| accounts | 5,050 | 5,037 |
| Fees payable to the Charity's auditor in respect of: | ||
| All non-audit services not included above | 2,800 | 2,826 |
11. Staff costs
| Wages and salaries Contribution to defined contribution pension schemes |
2023 £ 212,816 11,824 224,640 |
2022 £ 179,146 10,120 |
|---|---|---|
| 189,266 |
The average number of persons employed by the Charity during the year was as follows:
| 2023 | 2022 | |
|---|---|---|
| No. | No. | |
| Administration & Support | 4 | 4 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2023 | 2022 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £70,001 | - £80,000 | - | 1 |
| In the band £80,001 | - £90,000 | 1 | - |
The above employee has pension contributions of £6,690 (2022: £6,000).
Included within the above staff costs is an amount which relates to the key management personnel. The total amount of employee benefits (including employers pension contributions) received by key management personnel was £179,275 (2022: £149,544).
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
Page 28
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
12. Trustees' remuneration and expenses (continued)
During the year ended 31 December 2023, 1 Trustee had expenses reimbursed totallying £203 (2022: £145 to 1 Trustee).
13. Tangible fixed assets
| Cost or valuation At 1 January 2023 At 31 December 2023 Depreciation At 1 January 2023 At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Freehold property £ 2,086,106 |
|---|---|
| 2,086,106 | |
| 909,375 | |
| 909,375 | |
| 1,176,731 | |
| 1,176,731 |
In March 2008 the Trustees engaged an independent firm of Chartered Surveyors to carry out an evaluation of freehold land and buildings. This included a valuation of each of the properties. It was found that the carrying value of the land and buildings exceeded its recoverable amount. In line with the accounting policy, a diminution in value of £909,375 was charged directly to the Statement of Financial Activities as an exceptional item in the year ended 31 December 2008.
Page 29
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
14. Fixed asset investments
| Cost or valuation At 1 January 2023 Additions Disposals Revaluations Transfers between classes At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Investments £ 22,294,918 3,033,383 (3,551,145) 390,582 328,668 |
|---|---|
| 22,496,406 | |
| 22,496,406 | |
| 22,294,918 |
15. Fixed asset investments (continued)
| Material investments UK Equity UK Fixed Interest Overseas Equities Overseas Fixed Equities Alternatives Cash held for investment purposes M&G Investment |
2023 £ 8,248,814 2,559,178 9,270,628 - 1,487,767 745,987 184,033 22,496,407 |
2022 £ 9,892,657 2,203,108 7,339,000 234,068 2,254,374 417,320 188,461 22,528,988 |
|---|---|---|
Page 30
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
16. Debtors
| Due within one year Other debtors Prepayments and accrued income |
2023 £ - 3,694 3,694 |
2022 £ 373 12,253 |
|---|---|---|
| 12,626 |
17. Creditors: Amounts falling due within one year
| Other taxation and social security Other creditors |
2023 £ 5,654 16,741 22,395 |
2022 £ 4,475 9,272 |
|---|---|---|
| 13,747 |
18. Financial instruments
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 344,279 | 449,402 |
Financial assets (excluding investments) measured at fair value through income and expenditure comprise cash at bank in hand.
Page 31
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
19. Statement of funds
Statement of funds - current year
| Balance at 1 January 2023 £ Unrestricted funds Designated funds Designated Funds - all funds 13,879,211 General funds General Funds - all funds 8,179,564 Total Unrestricted funds 22,058,775 Endowment funds Endowment Funds - all funds 1,672,692 Restricted funds Restricted Funds - all funds 188,463 Total of funds 23,919,930 |
Income £ Expenditure £ - - 867,741 (1,070,947) 867,741 (1,070,947) - - - (37,325) 867,741 (1,108,272) |
Gains/ (Losses) £ 323,744 - 323,744 - (4,428) 319,316 |
Balance at 31 December 2023 £ 14,202,955 |
|---|---|---|---|
| 7,976,358 | |||
| 22,179,313 | |||
| 1,672,692 | |||
| 146,710 | |||
| 23,998,715 |
Page 32
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
19. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Designated Funds - all funds General funds General Funds - all funds Total Unrestricted funds Endowment funds Endowment Funds - all funds Restricted funds Restricted Funds - all funds Total of funds |
Balance at 1 January 2022 £ 14,301,073 1,799,839 16,100,912 1,672,692 8,493,022 26,266,626 |
Income £ - 1,428,596 1,428,596 - - 1,428,596 |
Expenditure £ 988 (988,912) (987,924) - - (987,924) |
Transfers in/out £ - 8,293,443 8,293,443 - (8,293,443) - |
Gains/ (Losses) £ (422,850) (2,353,402) (2,776,252) - (11,116) (2,787,368) |
Balance at 31 December 2022 £ 13,879,211 |
|---|---|---|---|---|---|---|
| 8,179,564 | ||||||
| 22,058,775 | ||||||
| 1,672,692 | ||||||
| 188,463 | ||||||
| 23,919,930 |
Page 33
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
20. Summary of funds
Summary of funds - current year
| Balance at 1 January 2023 £ Designated funds 13,879,211 General funds 8,179,564 Endowment funds 1,672,692 Restricted funds 188,463 23,919,930 |
Income £ Expenditure £ - - 867,741 (1,070,947) - - - (37,325) 867,741 (1,108,272) |
Gains/ (Losses) £ 323,744 - - (4,428) 319,316 |
Balance at 31 December 2023 £ 14,202,955 7,976,358 1,672,692 146,710 |
|---|---|---|---|
| 23,998,715 |
Page 34
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
20. Summary of funds (continued)
Summary of funds - prior year
| Designated funds General funds Endowment funds Restricted funds |
Balance at 1 January 2022 £ 14,301,073 1,799,839 1,672,692 8,493,022 26,266,626 |
Income £ - 1,428,596 - - 1,428,596 |
Expenditure £ 988 (988,912) - - (987,924) |
Transfers in/out £ - 8,293,443 - (8,293,443) - |
Gains/ (Losses) £ (422,850) (2,353,402) - (11,116) (2,787,368) |
Balance at 31 December 2022 £ 13,879,211 8,179,564 1,672,692 188,463 |
|---|---|---|---|---|---|---|
| 23,919,930 |
Description of funds
Endowed legacies fund
Bye-Law 31, which was abolished in 2005, required legacy income over and above the amount allowed to be expended as income to be invested in the name of the Charity. This fund represents the total amount of these endowed legacies. The fund balance is represented by costs associated with the land and the buildings at the Charity's headquarters in Tetbury.
Restricted funds
The Henderson fund arose as result of the sale of Margaret Cottages and is a bequest made with specific objects regarding the provision of accomodation, grants or other financial assistance for the relief of members, or former members of the nursing profession who are in need, hardship or distress.
Designated funds
Designated funds are earmarked formally by the Trustees for a particular purpose and are primarily invested or expended on the charitable objects of The National Benevolent Charity. The fund balance is largely represented by the Charity's investment balance.
Page 35
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
21. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Endowment | Restricted | Unrestricted Total |
|
|---|---|---|---|
| funds | funds | funds funds |
|
| 2023 | 2023 | 2023 2023 |
|
| £ | £ | £ £ |
|
| Tangible fixed assets | 732,692 | - | 444,039 1,176,731 |
| Fixed asset investments | 940,000 | 184,033 | 21,372,373 22,496,406 |
| Current assets | - | (37,323) | 385,296 347,973 |
| Creditors due within one year | - | - | (22,393) (22,395) |
| Total | 1,672,692 | 146,710 | 22,179,313 23,998,715 |
| Analysis of net assets between funds - prior year | |||
| Endowment | Restricted | Unrestricted Total |
|
| funds | funds | funds funds |
|
| 2022 | 2022 | 2022 2022 |
|
| £ | £ | £ £ |
|
| Tangible fixed assets | 732,692 | - | 444,039 1,176,731 |
| Fixed asset investments | 940,000 | 188,463 | 21,166,455 22,294,918 |
| Current assets | - | - | 462,028 462,028 |
| Creditors due within one year | - | - | (13,747) (13,747) |
| Total | |||
| 1,672,692 | 188,463 | 22,058,775 23,919,930 |
Page 36
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
22. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement Activities) Adjustments for: Gains/(losses) on investments Dividends, interests and rents from investments Increase in debtors Increase/(decrease) in creditors Movement in provisions for regular payments Net cash used in operating activities 23. Analysis of cash and cash equivalents Cash at bank and held in investments Total cash and cash equivalents 24. Analysis of changes in net debt Cash at bank |
of Financial At 1 January 2023 £ 449,402 449,402 |
2023 £ 78,787 (382,398) (768,049) (8,932) 8,646 - (1,071,946) 2023 £ 1,080,587 1,080,587 Cash flows £ (105,123) (105,123) |
2022 £ (2,346,695) 2,740,264 (1,095,221) (8,800) (22,695) (988) (734,135) 2022 £ 866,722 866,722 At 31 December 2023 £ 344,279 344,279 |
|---|---|---|---|
25. Related party transactions
The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 December 2023.
Page 37
THE NATIONAL BENEVOLENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
26. Post balance sheet events
During the year, the Trustees began the process of disposing of Peter Herve House and Lenox House. The properties were publicly marketed through Perry Bishop Estate Agents for £1,500,000 in September 2023. Offers were in excess of the sale price were received in October 2023 and the properties sold in March 2024 for £1,554,514. As a result of the sale all staff moved to remote working and the registered office was moved to the auditors Randall and Payne.
In December 2023 Trustees agreed to benchmark and review the performance of the charity’s investment fund managers Rathbones. The review was carried out in January and February 2024 and the funds split equally and transferred to Veritas Investment Managers and Brown Advisory Fund Managers in March 2024.
The charity received news in May 2024 that HM King Charles III has stepped down from being the patron. Trustees have decided not to appoint a new patron.
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