2020-12-31-accounts - Charity Of Alderman James Hickson

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Charity Registration No. 215542

CHARITY OF ALDERMAN JAMES HICKSON

TRUSTEE’S REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CHARITY OF ALDERMAN JAMES HICKSON

Trustee’s Report For the year ended 31 December 2020

The Trustee presents the annual report and financial statements of the Charity for the year ended 31 December 2020. The financial statements comply with current statutory requirements and the requirements of the Charity’s governing document.

Objectives and activities

The Trustee delivers public benefit through grant making and has paid due regard to the public benefit guidance issued by the Charity Commission in deciding what activities the Charity should support.

The scheme states that the yearly net income shall be applied as follows:

3/13 To the upkeep of the Almshouses in South Mimms; and 10/13 To the Aldgate and Allhallows Foundation (registered Charity no: 312500).

Achievements and performance

During the year the Charity made donations to the Aldgate and Allhallows Foundation of £22,683 (2019: £66,460) and transferred £6,806 (2019: £19,938) as per objectives detailed above.

Financial review

The results for the year are set out on page 6 and in note 5.

Restricted funds

The Alderman James Hickson Fund received total income of £71,328 (2019: £277,823) and incurred costs of £81,092 (2019: £95,375). Included in total income is £nil (2019: £180,000) in respect of a promotion agreement relating to the development of endowed land. Included in total costs is £26,798 (2019: £42,215) of professional fees incurred in respect of the promotion agreement. The net available distributable income is £86,398 (2019: £86,398) to be applied in accordance with the Scheme. The calculated 10/13 net income of £22,683 (2019: £66,460) is granted to Aldgate and Allhallows Foundation and £6,806 (2019: £19,938) is transferred to the restricted Almshouses upkeep fund.

The Charity’s listed investments are pooled with those of other charities administered by the Brewers’ Company in The Brewers’ Company Pooled Investment Scheme. The Scheme was established on 1 November 1968 by the Secretary of State for Education and Sciences under Sections 18 and 22 of the Charities Act 1960. The investment objective of the Scheme is to maintain capital value in real terms as measured by RPIX over a rolling 5-year period together with an average annual nominal growth in income in the longer term. Performance is monitored by the Investment Committee of the Brewers’ Company. In 2016 an independent review of performance was commissioned which concluded that the Scheme income had been slightly volatile over the previous 5 years but the capital had more than maintained its real value. The Investment Committee of the Brewers’ Company plan to undertake another independent review in 2021.

The investment properties were revalued to their open market value at 31 December 2016 by Daniel Watney LLP, Chartered Surveyors and are due to be revalued in 2021.

There are no on-going commitments that require the Charity to hold unrestricted reserves, so the policy is to distribute all the available net income each year.

Reserves policy

The Trustee observes the Charity Commission Scheme dated 22 October 1990 and therefore at 31 December 2020, has no unrestricted reserves (2019 - £nil).

CHARITY OF ALDERMAN JAMES HICKSON

Trustee’s Report (continued) For the year ended 31 December 2020

Plans for future periods

The aim of the Trustee is to maximise the amount available for distribution to beneficiaries without prejudicing the permanent endowment of the Charity.

Structure, governance and management

The Charity was established by the will of Alderman James Hickson on 28 January 1687 and is currently governed by a Charity Commission Scheme dated 22 October 1990.

The sole Trustee is the body corporate called The Master and Keepers or Wardens and Commonalty of the Mystery or Art of Brewers in the City of London, commonly known as the Brewers’ Company.

The Charity’s activities are overseen by the Master, Wardens and Court Assistants of the Brewers’ Company who comprise the Court.

The Court meets five times a year to monitor investment performance and make decisions on charitable expenditure. The Court is advised by an Investment Committee who meet regularly with the investment advisors to monitor their performance against targets.

The day to day administration of the Charity is undertaken by staff of the Trustee.

Reference and administrative details of the Charity, its Trustee and advisors

The Charity of Alderman James Hickson’s is a Charity registered in England and Wales no: 215542.

The principal address of the Charity is Brewers’ Hall, Aldermanbury Square, London EC2V 7HR.

The Trustee is the Brewers’ Company of the City of London.

The principal advisors to the Charity are:

Independent Examiner Paul Windmill FCA, Myers Clark Bankers Lloyds Bank plc Investment Advisors Newton Investment Management Limited Solicitors Farrer & Co LLP Property Advisors Daniel Watney LLP

CHARITY OF ALDERMAN JAMES HICKSON

Trustee’s Report (continued) For the year ended 31 December 2020

Statement of Trustee’s responsibilities

Charity law requires the Trustee 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 net incoming/(outgoing) resources for the year. In preparing the financial statements the Trustee is required to:

Select suitable accounting policies and apply them consistently;
Make judgements and estimates that are reasonable and prudent; and
Prepare the financial statements on a going concern basis unless it is inappropriate to do so.

The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable it to ensure that the financial statements comply with the Charities Act 2011. The Trustee is also responsible for safeguarding the assets of the Charity and hence for taking steps for the prevention and detection of fraud and other irregularities.

By order of the Trustee

M G C O’Dwyer OBE Clerk

22 April 2021

CHARITY OF ALDERMAN JAMES HICKSON

Independent Examiner’s Report to the Trustee

I report on the accounts of Charity of Alderman James Hickson (charity no: 215543) for the year ended 31 December 2020, which are set out on pages 5 to 11.

Responsibilities and basis of report

As trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) in preference to the Accounting and Reporting by Charities Statement of Recommended Practice issued 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

Accounting records were not kept in respect of the charity as required by section 130 of the Act; or
The accounts do not accord with those records.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Paul Windmill FCA

Chartered Accountant

Myers Clark Egale 1, 80 St Albans Road Watford Herts, WD17 1DL

22 April 2021

CHARITY OF ALDERMAN JAMES HICKSON Statement of Financial Activities For the year ended 31 December 2020

CHARITY OF ALDERMAN JAMES HICKSON Statement of Financial Activities For the year ended 31 December 2020
		Restricted	Endowment	Total	Restricted	Endowment	Total
		funds	funds	funds	funds	funds	funds
		2020	2020	2020	2019	2019	2019
	Note	£	£	£	£	£	£
Income from:
UK rental income		3,652	-	3,652	4,335	-	4,335
UK listed investments		67,437	-	67,437	93,268	-	93,268
UK interest receivable		239	-	239	220	-	220
Other income	9	-	-	-	180,000	-	180,000
Total income		71,328	-	71,328	277,823	-	277,823
Expenditure on:
Charitable donations		(22,683)	-	(22,683)	(66,460)	-	(66,460)
Maintenance of Almshouses		(12,036)	-	(12,036)	(13,115)	-	(13,115)
Other professional fees		(27,482)	-	(27,482)	(42,215)	-	(42,215)
Administration charge (note 7)		(17,902)	-	(17,902)	(16,109)	-	(16,109)
Investment manager’s fees		(16,204)	-	(16,204)	(17,131)	-	(17,131)
Accountancy fees		(2,767)	-	(2,767)	(2,702)	-	(2,702)
Sundry expenses		(446)	-	(446)	(353)	-	(353)
Irrecoverable VAT		(4,255)	-	(4,255)	(3,750)	-	(3,750)
Total expenditure		(103,775)	-	(103,775)	(161,835)	-	(161,835)
Net (losses)/ gains on investment assets		(146)	(3,300)	(3,446)	19,841	448,499	468,340
Net (expenditure)/ income and Net movement in
funds before transfers		(32,593)	(3,300)	(35,893)	135,829	448,499	584,328
Transfer of funds		27,483	(27,483)	-	(105,577)	105,577	-
Net (expenditure)/ income and Net movement in
funds after transfers		(5,110)	(30,783)	(35,893)	30,252	554,076	584,328
Reconciliation of funds
Total funds at 1 January 2020		188,022	4,581,123	4,769,145	157,770	4,027,047	4,184,817
Total Funds at 31 December 2020		182,912	4,550,340	4,733,252	188,022	4,581,123	4,769,145

CHARITY OF ALDERMAN JAMES HICKSON

Balance Sheet For the year ended 31 December 2020

			2020		2019
	Note	£	£	£	£
Fixed assets
Investments	2		4,618,117		4,621,563
Current assets
Debtors	3	2,846		3,600
Cash at bank and in hand		142,937		233,423
		145,783		237,023
Creditors: amounts due within
one year	4	(30,648)		(89,441)
Net current assets			115,135		147,582
Total assets less current liabilities			4,733,252		4,769,145
Funds of the charity:	5
Endowment			4,550,340		4,581,123
Restricted income			182,912		188,022
Total funds			4,733,252		4,769,145

The accounts were approved by the Trustee on 22 April 2021 and signed on their behalf by.

R H F Fuller D Coyne Master Deputy Clerk

CHARITY OF ALDERMAN JAMES HICKSON

Notes to the Accounts For the year ended 31 December 2020

1. Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – SORP FRS 102 (effective 1 January 2019).

The accounts 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 applying SORP FRS 102 (effective 1 January 2019) rather than the version of the Statement of Recommended Practice referred to in the regulation but which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern.

Income

Income is recognised when entitlement passes to the charity, receipt is probable, and amounts are measurable.

Expenditure

Expenditure is recognised when a legal or constructive obligation to pay arises.

Grants are accounted for when the Trustee has agreed the grant allocation for a particular year. There are no unspent allocations to be carried forward into future years.

Investments

Investments comprise units quoted on recognised stock exchanges, investment properties held to generate income and social investment properties that are held to further the objectives of the charity.

Investments are initially recognised at transaction price and subsequently at fair value at the balance sheet date.

Gains or losses on revaluation are taken to the Statement of Financial Activities and applied to the fund in which the investments are held.

Funds

Endowment funds comprise funds that the Trustee does not have the power to spend and must be maintained as capital. Income generated from endowment funds is applied in accordance with the terms of the fund.

Restricted funds comprise funds that are required to be spent on specific separate purposes in accordance with the Scheme.

Unrestricted funds represent funds received that can be applied at the Trustee’s discretion within the general objects of the charity.

CHARITY OF ALDERMAN JAMES HICKSON

Notes to the accounts (continued) For the year ended 31 December 2020

Investments
	Listed	Property	Social	Total
	investments		Investment
	£	£	£	£
Market value at 1 January 2020	3,446,563	475,000	700,000	4,621,563
Change in value in year	(3,446)	-	-	(3,446)
Market value or cost at 31
December 2020	3,443,117	475,000	700,000	4,618,117
Historic cost
At 31 December 2020	2,307,773
At 31 December 2019	2,307,773

All of the charity’s listed investments are held in The Brewers’ Company Pooled Investment Scheme. At 31 December 2020 the portfolio was held in the Newton Growth and Income Fund for Charities.

The Social Investment comprises the Almshouses at South Mimms.

The Trustee is unable to calculate the attributable historic cost of the investment properties acquired from the original bequest from Alderman James Hickson’s will of 1687 and subsequent refurbishments. The opinion of the Trustee is that the current market value is far in excess of cost.

Professional revaluations of properties are undertaken every 5 years as annual professional valuations would incur undue cost. The last professional valuation was undertaken at 31 December 2016 by Daniel Watney LLP, Chartered Surveyors.

All investments are held in the UK.

3.	Debtors:
		2020	2019
		£	£
	Other debtors & prepayments	2,846	3,600
		2,846	3,600
4.	Creditors: amounts due within one year
		2020	2019
		£	£
	Other creditors – unpaid allocated Grant	22,683	66,460
	Accruals	7,965	22,981
		30,648	89,441

CHARITY OF ALDERMAN JAMES HICKSON

Notes to the accounts (continued) For the year ended 31 December 2020

5. Funds of the charity

CURRENT YEAR
	At 1 January 2020	Incoming resources	Resources expended	Gain/ (Loss) on investment	Transfer of funds	At 31 December 2020
	£	£	£	£	£	£
Permanent
endowment
Educational
purposes	3,624,314	-	-	(3,043)	(27,483)	3,593,788
Almshouses and
Almspeople	956,809	-	-	(257)	-	956,552
	4,581,123	-	-	(3,300)	(27,483)	4,550,340
Restricted
Alderman James
Hickson Fund	-	63,354	(61,348)	-	(2,006)	-
Almshouses and Alms people	188,022	7,974	(19,744)	(146)	6,806	182,912
The Aldgate and
Allhallows	-	-	(22,683)	-	22,683	-
Foundation
	188,022	71,328	(103,775)	(146)	27,483	182,912
Total funds	4,769,145	71,328	(103,775)	(3,446)	-	4,733,252

CHARITY OF ALDERMAN JAMES HICKSON

Notes to the accounts (continued) For the year ended 31 December 2020

5. Funds of the charity (continued)

PRIOR YEAR

	At 1 January 2019	Incoming resources	Resources expended	Gain/(Loss) on investment	Transfer of funds	At 31 December 2019
	£	£	£	£	£	£
Permanent
endowment
Educational purposes	3,105,135	-	-	413,602	105,577	3,624,314
Almshouses and
Almspeople	921,912	-	-	34,897	-	956,809
	4,027,047	-	-	448,499	105,577	4,581,123
Restricted
Alderman James
Hickson Fund	-	266,857	(74,882)	-	(191,975)	-
Almshouses and Alms
people	157,770	10,966	(20,493)	19,841	19,938	188,022
The Aldgate and
Allhallows Foundation	-	-	(66,460)	-	66,460	-
	157,770	277,823	(161,835)	19,841	(105,577)	188,022
Total funds	4,184,817	277,823	(161,835)	468,340	-	4,769,145

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CHARITY OF ALDERMAN JAMES HICKSON

Notes to the accounts (continued) For the year ended 31 December 2020

6. Net assets by fund

CURRENT YEAR

CURRENT YEAR
		Net
	Fixed	current
	assets	assets	Total
	£	£	£
Permanent endowment
Educational purposes	3,515,693	78,095	3,593,788
Almshouses and Almspeople	956,552	-	956,552
Restricted
Almshouses fund	145,872	37,040	182,912
Total funds	4,618,117	115,135	4,733,252
PRIOR YEAR
		Net
	Fixed	current
	assets	assets	Total
	£	£	£
Permanent endowment
Educational purposes	3,518,737	105,577	3,624,314
Almshouses and Almspeople	956,809	-	956,809
Restricted
Almshouses fund	146,017	42,005	188,022
Total funds	4,621,563	147,582	4,769,145

7. Trustee’s remuneration

The charity is charged for administration costs by the Brewers’ Company which is the Trustee of the charity. The contribution for the year ended 31 December 2020 was £17,902 (2019: £16,109).

8. Employees

There were no employees during the year (2019: none).

9. Other income

This related to an amount received under a promotion agreement in respect of the potential development of land owned by the charity.

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