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2023-12-31-accounts

THE HANDSWORTH CHARITY

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023

Registered Charity No 216603

CONTENTS

Page 1 Legal and administrative information
2 - 3 Report of the trustees
4 Independent examiner’s report
5 Statement of financial activities
6 Balance sheet
7 - 11 Notes to the financial statements

THE HANDSWORTH CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 DECEMBER 2023

Charity registration

The Trust is an unincorporated charity under registration number 216603.

The Charity’s trustees consist of:

Ex-officio Trustees: The Rector and Church Wardens of St Mary’s Parish, Handsworth Nominative Trustees: Appointed by Birmingham City Council or the Trustees and each holding office for four years. Co-optative Trustees: Appointed by the Trustees and each holding office for five years.

The Charity’s Trustees during the year ended 31 December 2023 were:

Ex-officio Trustees: Keith Hemmings (Chairman)
Mrs Doreen Hemmings (Senior Vice Chairman)
Rosemarie Seadon
Nominative: Mrs Kim Brom
Vincent Daniel (Junior Vice Chairman)
Councillor Sybill Spence – retired November 2023
Kamlesh Rani – retired November 2023
Parmala Mehay Hydes – appointed March 2023
Clerk/Principal office: Ms Dipali Chandra
c/o 109 Court Oak Road
Harborne
Birmingham
B17 9AA
Bankers: Royal Bank of Scotland Plc
1 Hardman Boulevard
Manchester
M3 3AQ
Investment Managers: Canaccord Genuity Wealth Ltd
Saggar House
Princes Drive
Worcester
WR1 2PG
Independent Examiner: Malcolm Willcox, FCCA
Chartered Certified Accountant
Hagley House
93 Hagley Road
Edgbaston
Birmingham
B16 8LA

1

THE HANDSWORTH CHARITY

REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023

The Trustees present their Report for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the notes thereto, and comply with the Charity’s governing document, the Charities Act 2011 and the Charities SORP (FRS102).

Structure, governance and management

The Handsworth Charities (the ‘Charities’) were constituted by a scheme of the Charity Commissioners dated 13 April 1977. The Charities consisted of The Handsworth Charity, registered charity number 216603 and The William Stevenson Charity, registered charity number 212721. By a Resolution dated 15 March 2006 all property belonging to The William Stevenson Charity was to be transferred to The Handsworth Charity. The Charity Commission concurred with the Trustees’ resolution and the transfer of assets was completed on 5 August 2006. The William Stevenson Charity was subsequently deleted from the Charity Commission register.

All matters of policy are determined by the Trustees who meet regularly.

The Trustees have examined the major strategic and operational risks which the charity faces and are satisfied that systems have been established so that the necessary steps can be taken to minimise these risks.

Objectives and activities

The Charity receives applications both from individuals and referrals organisations. Applications should be made to the Clerk.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and planning future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives set.

Achievements and performance

Grants distributed by the Charity, in addition to pensions, amounted to £19,900 (10 organisations) compared with £26,370 (8 organisations) in the previous year.

Financial review and investment policy

The Charity’s financial statements are set out on pages 5 to 11. Income received amounted to £37,972 (2022: £36,862). The sum of £19,900 (2022: £26,370) was expended on grants, £250 on the annual payment to the PCC of St Mary’s Handsworth, whilst support and governance costs totalled £6,218 (2022: £5,895). Investment manager’s fees were £8,886 (2022: £9,640). The Market Value of the Investments at the year end was £1,130,683 (2022: £1,066,222). Unrestricted reserves at 31 December 2023 were £103,239 (2022: £100,521).

There are no restrictions on the Charity’s power to invest. The investment strategy is set by the Trustees for a period of five years. The Trustees consider the income requirements, the risk profile and the investment managers’ review of the market prospects in the medium term. The unrestricted and restricted funds may be invested in any type of investment.

2

THE HANDSWORTH CHARITY

REPORT OF THE TRUSTEES – Continued YEAR ENDED 31 DECEMBER 2023

Reserves policy

It is the policy of the Charity to maintain unrestricted funds, which are the free reserves of the Charity, at a level which equates to at least two years’ income. This provides sufficient funds to cover governance and support costs and to respond to emergency applications for grants which arise from time to time. As at 31 December 2023 unrestricted income funds were £103,239 (2022: £100,521) which is in excess of the reserves policy.

Statement of Trustees’ responsibilities for the financial statements

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 and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the Trust’s affairs and of the incoming resources of the Trust for that period.

In preparing these financial statements, the Trustees are required to:

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

The Trustees are also responsible for safeguarding the assets of the Trust and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on March 2024 and signed on their behalf by

…………………………………

KEITH HEMMINGS Chairman

3

REPORT OF THE INDEPENDENT EXAMINER

TO THE TRUSTEES OF THE HANDSWORTH CHARITY

I report on the financial statements of the Charity for the year ended 31 December 2023 which are set out on pages 5 to 11.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed.

It is my responsibility to:

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that in, any material respect:

I have no concerns, and I 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 financial statements to be reached.

MALCOLM H J WILLCOX FCCA

Malcolm Willcox & Co

Chartered Certified Accountants and Statutory Auditors Birmingham

March 2024

4

THE HANDSWORTH CHARITY

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2023

Unrestricted Restricted 2023 Unrestricted Restricted 2022
Income Capital Total Income Capital Total
Notes £ £ £ £ £
INCOME
Investment income ( 2 ) 37,972 - 37,972 36,862 - 36,862
______ ______ ______ ______ ______ ______
EXPENDITURE
Charitable activities
Grants ( 3 ) 19,900 - 19,900 26,370 - 26,370
PCC of St Mary’s, Handsworth 250 - 250 250 - 250
Fundraising
Investment Manager’s fees 8,886 - 8,886 9,640 - 9,640
Support costs
Clerk’s fee 2,400 - 2,400 2,280 - 2,280
Sundry expenses 218 - 218 135 - 135
Governance costs
Clerk’s fee 2,400 - 2,400 2,280 - 2,280
Accountancy and independent examination 1,200 - 1,200 1,200 - 1,200
______ ______ ______ ______ ______ ______
Total expenditure 35,254 - 35,254 42,155 - 42,155
______ ______ ______ ______ ______ ______
Net income/expenditure 2,718 - 2,718 ( 5,293) - ( 5,293)
Net gains/losses on investments
Realised - ( 3,558) ( 3,558) - 15,883 15,883
Unrealised - 72,628 72,628 - (226,206) (226,206)
_ _ _ _ _ _
2,718 69,070 71,788 (5,293) (210,323) (215,616)
Reconciliation of funds
Fund balances brought forward
at 1 January 2023 100,521 1,059,163 1,159,684 105,814 1,269,486 1,375,300
__ __ __ __ __ __
Fund balance carried forward
at 31 December 2023 103,239 1,128,233 1,231,472 100,521 1,059,163 1,159,684
__ __ __ __ __ __

Notes

5

THE HANDSWORTH CHARITY

BALANCE SHEET 31 DECEMBER 2023

2023 2022
Notes £ £
FIXED ASSETS
Investments ( 6 ) 1,131,272 1,071,245
__ __
CURRENT ASSETS
Cash at bank:
Royal Bank of Scotland – Deposit Account 98,636 87,713
Royal Bank of Scotland – Current Account 500 500
Dividends held by Investment Managers 2,264 1,426
__ __
101,400 89,639
CURRENT LIABILITIES –amounts falling
due within one year:
Sundry creditors ( 7 ) ( 1,200) ( 1,200)
__ __
NET CURRENT ASSETS 100,200 88,439
__ __
TOTAL ASSETS LESS CURRENT LIABILITIES 1,231,472 1,159,684
__ __
FUNDS
Capital Funds (restricted): (8/9)
Handsworth Charity 1,106,681 1,039,453
William Stevenson Charity 21,552 19,710
__ __
1,128,233 1,059,163
Income Fund (unrestricted) (8/9) 103,239 100,521
__ __
1,231,472 1,159,684
__ __

The financial statements on pages 5 to 11 were approved by the Trustees on March 2024 and signed on their behalf by

……………………………………….

KEITH HEMMINGS Chairman

6

THE HANDSWORTH CHARITY

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023

1 ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared under the Charities Act 2011, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) and the Financial Reporting Standard 102 (FRS102), also known as Charities SORP (FRS102).

The Charity meets the definition of a public benefit entity under FRS102.

The financial statements have also been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of certain investment assets, to show a true and fair view of the Charity’s financial position.

The Trustees consider the going concern basis to be valid because no material uncertainties exist.

Unrestricted funds 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.

Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost 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.

Endowment funds represent those assets which must be held permanently by the Charity, principally investments. Income arising on the endowment funds can be used in accordance with the objects of the Charity, and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

Investments

Investments are recognised initially at fair value which is normally the transaction price. Subsequently, they are measured at fair value with changes recognised as ‘net gains/(losses) on investments’ in the Statement of Financial Activities (SOFA), if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

(d) Income recognition

Income is included in the SOFA when the Charity becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.

This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Charity to pay out resources.

Since the Charity is not VAT registered, all input VAT is charged with the relevant expenses.

(f) Grants

Grants made by the Charity from its own funds are recognised in full at the time of agreement or when the Charity accepts that there is a legal or operational obligation to make the payment.

(g) Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid after taking into account any settlement discounts available.

(h) Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in a payment to a third party and where the amount of the obligation can be measured or estimated reliably.

(i) Taxation

The Charity is exempt from taxation.

7

THE HANDSWORTH CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued YEAR ENDED 31 DECEMBER 2023

2023 2022
£ £
2 INVESTMENT INCOME
Dividends and bond income 36,553 35,465
COIF deposit interest 592 1,190
Royal Bank of Scotland deposit interest 827 207
______ ______
37,972 36,862
______ ______
3 GRANTS
Birchfield Neighbourhood Forum - 1,500
Birmingham Settlement 3,000 3,000
Birmingham Children’s Trust - 500
BCT Charity Awards 900 -
CASE - 3,000
Cranston 900 -
Crisis UK 250 -
Hands On Carers - 350
Lozells Methodist Church - 300
Sporting Elite - 7,720
St Chad’s Sanctuary 4,000 10,000
St Mary’s Choir 5,000 -
St Mary’s Convent 500 -
St Michael’s Church 4,600 -
Susan Celia Fields 250 -
Trident Housing 500 -
______ ______
19,900 26,370
______ ______

4 TRUSTEES’ REMUNERATION AND EXPENSES

No remuneration and expenses were paid to the Trustees during the year.

5 EMPLOYEES

There were no full or part time employees during the year.

Ms Dipali Chandra is Clerk to the Trustees, and she received an honorarium of £4,800 (2022: £4,560) during the year.

8

THE HANDSWORTH CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued YEAR ENDED 31 DECEMBER 2023

2023 2022
£ £
6 INVESTMENTS
Cost:
At 1 January 2023 875,030 847,960
Additions 96,225 106,975
Cost of sales (151,547) ( 79,905)
_ _
At 31 December 2023 819,708 875,030
_ _
Surplus on revaluation:
At 1 January 2023 191,192 432,366
Valuation adjustment 117,013 (241,194)
_ _
At 31 December 2023 308,205 191,192
__ __
Market value at 31 December 2023 1,130,683 1,066,222
__ __
Investments at fair value represented:
Fixed interest and equivalent 180,083 134,115
Equities 835,699 814,245
Unit and Investment Trusts 50,015 55,700
Charities Deposit Fund 64,886 62,162
__ __
1,130,683 1,066,222
Cash not invested 589 5,023
__ __
1,131,272 1,071,245
__ __

At 31 December 2023 the Charity held the following investments which individually represented in excess of 5% of the total value of the portfolio:

Charities COIF deposit

Market value £64,886 = 5.7%

The fair value of listed investments is shown at market value at the balance sheet date.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value. Asset sales and purchases are recognised at the date of trade at their transaction values. The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. The Charity is reliant on dividend yield to finance its work. Liquidity risk is anticipated to be low as all assets are traded. The Charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions. The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments, as it takes the view that investments are held for their longer term yield, total return, and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

9

THE HANDSWORTH CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued YEAR ENDED 31 DECEMBER 2023

7
8		 2023
2022
£
£
CURRENT LIABILITIES
Independent Examiner’s fee accrued
1,200
1,200
__
_
Handsworth Stevenson
Capital Capital Undistributed
Fund
Fund
Income
Total
£
£
£
£
ANALYSIS OF ASSETS BETWEEN FUNDS
31 December 2023
Listed investments
1,044,249
21,552
64,886
1,130,687
Uninvested cash
589
-
-
589
Cash at bank
61,847
-
37,289
99,136
Dividends held by Investment Managers
-
-
2,264
2,264
_
__
__
__
1,106,685
21,552
104,439
1,232,676
Less: Current liabilities
-
-
( 1,200)
( 1,200)
__
__
__
__
1,106,685
21,552
103,239
1,231,476
__
__
__
__
Handsworth Stevenson
Capital Capital Undistributed
Fund
Fund
Income
Total
£
£
£
£
31 December 2022
Listed investments
984,350
19,710
62,162
1,066,222
Uninvested cash
5,023
-
-
5,023
Cash at bank
50,080
-
38,133
88,213
Dividends held by Investment Managers
-
-
1,426
1,426
__
__
__
__
1,039,453
19,710
101,721
1,160,884
Less: Current liabilities
-
-
( 1,200)
( 1,200)
__
__
__
__
1,039,453
19,710
100,521
1,159,684
__
__
__
______

10

THE HANDSWORTH CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued YEAR ENDED 31 DECEMBER 2023

9 FUNDS

The Capital Funds represent those assets which must be held permanently by the Charity. Income arising thereon can be used in accordance with the objects of the Charity, and any undistributed income represents the Income Fund.

10 RELATED PARTY TRANSACTIONS

There were no related party transactions during the year (2022: £Nil).

11