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2021-09-30-accounts

Sutton Coldfield Charitable Trust

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

for the year ended

30 September 2021

Charity No. 218627

Sutton Coldfield Charitable Trust TRUSTEES AND PRINCIPAL ADVISORS for the year ended 30 September 2021

Constitution

Sutton Coldfield Charitable Trust ("the Trust") is regulated by a Scheme of the Charity Commissioners (revised and updated dated 25 February 2021) (registered number 218627) (“the Scheme”).

The Trust is a registered charity and complies with the Charities Act 2011. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Trustees

The Trustees who served during the year were:

Board of Trustees Grants
Committee		 Property
Management
Committee		 Almshouse
Committee		 Finance &
Investment
Committee		 Nominated
By:
Birmingham*
City Council
 Royal Sutton
Coldfield Town
Council
Andrew Burley (Chair) * (Chair until 10
February
2021)		 *(Chair) * *
Keith Dudley (Vice-Chair) *(Chair from 10
February
2021)		 * * *
Neil Andrews * *(Chair)
Christine Brown (Resigned
12 May 2021)		 * *
Malcolm Cornish * * *
Councillor Diane Donaldson * * *
Carole Hancox (Resigned
24 April 2021)		 * * (Chair until
24 April 2021)
Ranjan Hoath *
Inge Kettner * *
Jayne Luckett * *
Dr Stephen Martin * *
Andrew Morris * *
Councillor Jane Mosson * *
Dr Francis Murray * (Chair from
24 April
2021)		 *
John Routh * *
Councillor Simon Ward * **
Amarjit Singh (appointed 11
August 2021)		 *

Principal officers

Tina Swani MBA FCIM (Chief Executive) Alison Trenfield ACMA CGMA (Financial Controller until 31 May 2021) Rob Semple ACMA (Financial Controller from 11 May 2021) Pamela Johnston MBE JP (Almshouse Manager) David Cole ACIB (Grants Manager) Helen Kimmet (Administration Manager)

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Sutton Coldfield Charitable Trust TRUSTEES AND PRINCIPAL ADVISORS (continued) for the year ended 30 September 2021

Registered address

Lingard House Fox Hollies Road Sutton Coldfield West Midlands B76 2RJ Telephone number: 0121 794 0970

Advisors

Auditor

Sayer Vincent LLP Chartered Accountants Invicta House 108-114 Golden Lane London EC1Y 0TL

Investment Managers

Rathbone Investment Management Limited 8 Finsbury Circus London EC2M 7AZ

CCLA Investment Management Senator House 85 Queen Street London EC4V 4ET

Investment Consultants

Stanhope Consulting LLP 35 Portman Square London W1H 6LR

Bankers

HSBC Bank plc 67 The Parade Sutton Coldfield West Midlands B72 1PD

Property Managers

Johnson Fellows LLP Charter House 163 Newhall Street Birmingham B3 1SW

EOS Surveyors Ltd Arion Business Centre Harriet House 118A High Street Birmingham B23 6BG

Nick Russell Associates Lavender Cottage Lucton Leominster Herefordshire HR6 9PH

Insurance Brokers

Solicitors

Endsleigh Insurance (Brokers) Ltd Shurdington Road Cheltenham Gloucestershire GL51 4UE

Gowling WLG (UK) LLP Two Snowhill Birmingham B4 6WR

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT for the year ended 30 September 2021

The Trustees present their annual report and audited financial statements for the year ended 30 September 2021.

History of the Trust

The Trust’s origins go directly back to Bishop Vesey, an inhabitant of Sutton Coldfield, born in the town, who persuaded Henry VIII to grant a Charter in 1528 establishing a Warden and Society (Corporation) to govern the Town. The Corporation was obliged to use rental and other income to provide poor relief and improve the locality. Over the next four centuries, other bequests and endowments came within the Corporation’s oversight. These included charities in memory of Thomas Jesson in the 1700s to provide apprenticeships for boys and to distribute bread to Sutton’s poor. After a long and famous legal action, the Corporation’s charities were reorganised in the 1820s and enriched by lands acquired in the 1825 Enclosure Award. From this time, Almshouses were built and the charities provided elementary schools (including teaching and uniforms) for Sutton’s children. Practical necessities such as coal, blankets and boots were widely distributed. In pre-welfare state days, the charities financed nursing and medical care for people in need and made grants to widows.

In 1886, the Town became a Borough and the Trust took over the Corporation and various related charities within one body. This operated closely alongside the Council and was administered by the Town Clerk. New Almshouses were built, including two in the 1890s from a bequest by Frances Lingard. At the time Sutton Coldfield became part of Birmingham in 1974, the independence of the Trust was safeguarded, ensuring the continuing provision of benefits for individuals and organisations within the former Borough boundaries. Although the separate historic charities have been consolidated into one charity, the Trustees’ fundamental aims and priorities are still very similar to those pursued by Bishop Vesey and his successors over nearly five centuries.

Mission statement

Sutton Coldfield Charitable Trust aims to alleviate hardship and improve the quality of life for residents of the Royal Town of Sutton Coldfield through the provision of housing for older people of limited means and by making awards to meet the needs of individuals and community organisations.

Objectives and activities for the public benefit

The principal objectives of the Trust are the provision of Almshouses, the distribution of funds and other measures for the alleviation of hardship and other needs for inhabitants and organisations within the boundaries of the former Borough of Sutton Coldfield.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting grant making policies. They consider the information which is contained in this report, about the Trust’s objectives, activities and achievements in the many areas of interest that it supports, demonstrates the benefit to its beneficiaries and, through them, to the public, that arise from those activities.

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Grant making policy

The Trustees apply surplus income to benefit the residents of the former Borough of Sutton Coldfield by making awards to individuals, institutions or organisations in the following ways:

Grant application process

The Trust welcomes initial contact from individuals and organisations interested in making applications. Officers will always advise on the best way to prepare a grant request and to ensure that applicants are aware of the necessary information required by the Trustees.

To make a grant application:

Risk management

The Trustees are committed to the identification, assessment and management of the major risks to which the Trust may be exposed. This is a continuous obligation involving all Trustees and staff.

A risk register is used for the on-going review of risks and controls, by the Risk Management SubCommittee, which meets twice a year, and the Board of Trustees, to ensure that the risk management process is operating satisfactorily. The risks are recorded and assessed in terms of impact and probability and a traffic light system is employed to highlight areas of particular concern. The Trustees adopt a flexible approach, responding to newly identified areas of risk as well as evaluating progress in mitigating risks previously identified.

The Trustees have identified the following key strategic risks to the charity. Actions to mitigate against these risks are also detailed:

Risk: COVID-19 pandemic with associated risk to Almshouse residents, staff and visitors as well as an operational and financial impact on the Trust.

Mitigation : This risk is managed by planning (e.g. Disaster Recovery Plan), risk assessment and guidance to staff and residents and implementing COVID protocols and procedures, including input from external advisors and insurers where appropriate. The financial impact is managed through budgeting, forecasting, in-year monitoring of financial results and reports from investment advisers.

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Risk management (continued)

Risk: Loss of key staff, resulting in loss of corporate knowledge and delay to operational projects and priorities.

Mitigation : This risk is managed by operating flexible working practices (including cover as needed), appropriate notice periods for all staff, written procedures and electronic storage and sharing of key records

Risk: Financial risks including loss of capital and income on the permanent endowment and over dependence on key income sources.

Mitigation : This risk is managed by appropriate investment policies, management of the Trust’s assets by professional advisers, scrutiny of advisers via Board and Committees, having a suitable reserves policy and regular budgeting, monitoring and reporting on financial performance.

Pay and remuneration of Key Management Personnel

The pay and remuneration of key management personnel are set by means of salary scales based on published pay market data, including the Xpert HR Voluntary Sector Annual Salary Survey. A remuneration sub-committee of the Board appraises pay annually and makes recommendations to the Finance Committee and the full Board.

Structure, governance and management

Information relating to reference and administrative matters are set out above.

The Board comprises 12 (minimum) to 16 (maximum) Trustees in total, made up of 8 to 12 co-opted Trustees, who are appointed for terms of five years, and 4 nominated Trustees, who are put forward by Birmingham City Council and Royal Sutton Coldfield Town Council for terms of four years. Trustees may serve a maximum of three terms, following which at least 12 months must expire before reappointment.

The Board seeks Trustees who will diversify, balance and complement the range of skills and experience among their members with the qualities and expertise required for the attainment of its charitable and strategic objectives. That expertise has included medicine, law, property, industry, faith, education, engineering, human resources, science, sheltered housing, town planning, marketing, accountancy and Local Government.

Trustees have an induction to familiarise them with their responsibilities and the purpose of the Trust. All Trustees have a two-yearly review with the Chair. New Trustees also have a review in their first year.

The Board of Trustees is responsible for all of the Trust’s activities and meets quarterly to receive reports, make decisions, and determine strategy. The aim is to hold a strategy day at least every two years, supplemented by regular reports on progress against the agreed action areas. The Board also identifies and manages any risks to ensure the efficient and safe undertaking of its responsibilities. The Board oversees the financial health of the Trust, ensuring that management of its investments and accounts are robust, that effective controls are in place and that the income is sufficient to meet the demands of the Almshouse and grant-making programmes as the two core purposes of the Trust.

Every Trustee is a member of one or more of the following Committees:

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Structure, governance and management (continued)

Whilst each Committee has its approved membership, all Trustees may attend any Committee meeting at any time and have access to all agendas and papers through an on-line Trustee portal. Advisors join Committees to provide guidance on compliance matters such as safety requirements and other specialist expertise. Working groups may be set up for specific purposes. Over the past year, these have included a Social Needs Review Group, a Governance Working Group and a Strategic Planning Group.

An extensive review of governance and compliance was undertaken in 2019, with many action points already addressed. This review is in the process of being refreshed following the publication of the revised Charity Governance Code late in 2020. The work will continue during the next financial year. Last year, Trustees focused on diversity, inclusion, stakeholder communication and an in-depth review of the Scheme (the Trust’s governing document), which was updated to give grant making greater prominence as a core purpose alongside the provision of Almshouses. The terms of reference of the Board and Committees were all reviewed and updated over the year in line with the revised Scheme to ensure governance remains fit for purpose in rapidly changing times.

Trustees and staff strive to be exemplars of equality, diversity, and inclusion (EDI); as such, staff and trustees have commenced an in-house EDI learning programme, the initial phase delivered by Diverse Minds. In order to improve stakeholder communication and awareness, the firm, Liquid, was appointed (following successful tender) to work with the Trust to develop a marketing and communication strategy.

The improvements to governance aim to support future planning and enhance charitable benefit at a time of predicted increasing need and hardship. They will support development of recommendations from the Social Needs Review of Sutton Coldfield, conducted on behalf of the Trust by the University of Birmingham (the contract novated from University of Birmingham to University of Nottingham on 1 December 2021). This will create a basis for major strategic decision-making over the decade ahead.

Trustees and staff have begun to consider the Trust’s role in environmental, social and economic sustainability. This is in the context of developing the Trust’s long-term strategic plan, delivering its core purposes and ongoing local support and influence.

Fundraising

The Trust does not undertake any fundraising activities in its own right or through third parties and is not registered with The Fundraising Regulator.

Review of activities and achievements

The Trust has had a successful year despite the continued disruption caused by COVID-19 and the extended winter lockdown where those in the greatest need of its services have been hardest hit. The range of grant applications received over the year reflected the gravity of need yet also provides some optimism for the future, as demonstrated by the consideration in those applications to community recovery, sustainability and future resilience.

Thanks are due to all the Trust’s staff, who responded deftly to local needs and crises. They administered our property portfolio, advanced digital communication and worked closely with Trustees to shape more effective governance arrangements, from improved board reporting to revised terms of reference of Committees. This was in addition to the transformation and planning required to maintain charity business and to keep staff and Almshouse residents safe during the ongoing pandemic.

The Lingard House Almshouse residents have welcomed the opening up of social areas, albeit at safe distance. The Trust held Tea Parties to commemorate the 75[th] Anniversary of the Almshouse Association. For so many, this followed a long and detrimental period of isolation. Thanks are due to all staff involved in creating a safe, supported and pleasant living environment for our residents during this difficult time, and particularly, our wardens, gardener and residents themselves for maintaining a crucial sense of community in adversity.

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Review of activities and achievements (continued)

The Trust’s Almshouse Committee maintains a policy of continuous improvement. A rolling 5-year preventative maintenance programme ensures that the residents benefit from essential on-going maintenance and regular improvements to their homes. Over the next 3-4 years, the programme includes over £1,000,000 for Almshouse refurbishments (funded from a combination of designated reserves and operational cash flow) to upgrade and maintain excellent standards of high-quality homes for our residents.

During the year, the Trust continued to make grants for community purposes, individual, educational and personal needs, and for school clothing. Trustees awarded £1,092,384 in grants (2020: £1,209,714).

A full list of grants made by the Trust is included in its Annual Review, available on the Trust’s website www.suttoncoldfieldcharitabletrust.com or from the registered address. A summary of the grants awarded by the Trust for community and individual purposes during the year can be found below:

Relief of those in need
Advancement of education
Advancement of religion
Advancement of health or the saving of lives
Advancement of citizenship or community development
Advancement of the arts, culture, heritage and science
Advancement of amateur sport
Advancement of environmental protection or improvement
Total grants awarded
Awarded grants unclaimed or cancelled
Net grants awarded (note 7 to the financial statements)		 £
131,679
364,893
77,364
265,798
64,010
770
129,870
58,000

1,092,384
(151,990)

940,394

In the past year, the Trust supported a range of projects, including the School Home Learning Project which provided 281 home learning devices for schoolchildren from over 24 schools as well as additional mentoring to support their mental health. Mobility-and-eco-friendly boardwalks were funded by the Trust in local woodland so more people can enjoy open spaces. The Trust made a grant for a hospice homerespite scheme which supports carers of loved ones with life-limiting illness. Over the past year, almost 50% more local families in poverty have had grants to buy school uniforms; and apprenticeships continue to be available to young people who have experienced a difficult start in life.

Trustees are resolved to sustain and, if possible, extend grant making to individuals and organisations within the former Borough of Sutton Coldfield. Benefits that may be available to the public from the Trust appear in the local media from time to time and efforts are made to contact those who might be hard to reach or those who, despite the Trust’s best efforts, may remain unaware of its existence and the assistance it might be able to offer them.

Two Trustees resigned during the year. Carole Hancox stepped down after fifteen years on the Board including the roles of Chair of the Board of Trustees and Chair of the Almshouse Committee. Christine Brown who was instrumental in supporting the tender process for developing the Trust’s Marketing and Communications strategy also stepped down. The Trust would like to thank both Carole and Christine for all their support. The Trust welcomes Armajit Singh who joined as Trustee in August 2021, as Carole’s successor, bringing housing expertise to the Board.

Following fifteen years’ exemplary service as the Trust’s Financial Controller, the Trustees wish Alison Trenfield a happy retirement and welcome her successor, Rob Semple.

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Monitoring achievement

Payment of grants is carefully managed and the Trust operates a robust formal monitoring process. Dependent on the value of the award, this is achieved by completion of a Monitoring form at the conclusion of the project, with interim reports if necessary. These reports are made available to the Trustees quarterly for scrutiny. Trust officers also evaluate impact through meetings, telephone discussions and visits to grant beneficiaries. The Trust also maintains close informal contact with organisations to ensure that the anticipated benefits from the grant have been achieved.

COVID-19 lockdowns restricted visits by the Trust. However, with use of video meetings, effective monitoring was undertaken.

Financial review

The year under review has remained challenging in light of COVID-19. Total income was £1,755,814 (2020: £1,912,742) and after allowing for operating and governance costs amounting to £ £1,296,294 2020: £ 780,959) , the Trust awarded grant funding of £940,394 net of cancelled grants (2020: £1,158,048). Net outgoing resources were £480,874 (2020: £26,265) .

The Trust faced a number of specific issues over the past year. On top of reduced dividend income, it agreed rent concessions to certain tenants to support them with COVID-19 pressures. It had two vacant commercial properties for much of the year, with the associated loss of rental income and additional expenses (including dilapidations costs). The Trust also made an impairment charge on its existing Almshouse kitchen and bathroom assets, as these are due to be replaced over the next 2 years.

The Trust’s work is dependent on income and investment returns from its endowment. The past year saw a significant increase in investment asset values and the Trust reported a gain on investment assets of £11,015,836 (2020: £2,212,653) , which in turn gave rise to an overall net increase in the total funds of the Trust of £10,534,962 (2020: £2,186,388) . At 30 September 2021, total Trust Funds amounted to £74,850,495 (2020: £64,315,533) .

Continuing with careful financial management and disciplines, combined with appropriate support from the Trust’s advisors, the Trust is confident of fulfilling its dual obligations of the provision of Almshouses and community grant giving.

Investment policy and performance

The Trust’s assets are invested in property, UK and overseas equities, government stocks, unit trusts and cash deposits to generate income to meet current and future charitable objectives whilst seeking to manage investment risk. The Trust’s investment objectives are to generate an acceptable level of income to facilitate grant giving and maintenance of the Almshouses, whilst also seeking to preserve capital values in real terms.

Both the Finance Committee and the Board of Trustees receive quarterly reports from the investment managers, considering the Trust’s income requirements, the risk profile and property managers’ views of market prospects in the medium term. This strategy is set within an overall policy which states that the Endowment Fund is to be invested long term to maximise income to meet current and future charitable objectives whilst seeking preservation of capital in real terms. The restricted and unrestricted funds may be invested in any type of investment except direct investments in tobacco.

The major part of the Trust’s investment portfolio has been managed over the last nine years by Rathbone Investment Management limited. A smaller portfolio (the Charitable Funds) was previously invested in the M&G Multi-Asset Fund which was switched in April 2021 to the CCLA COIF Charities Investment Fund. During the last twelve months, global investment markets have dramatically improved as the global economy has started to recover from the COVID-19 pandemic. The Trustees are supported by Stanhope Consulting, the appointed investment advisers, in their assessment and monitoring of the investment managers. According to Stanhope’s calculations, the total investment portfolio generated returns of 18.6% over the year to 30[th] September 2021, comfortably outperforming the CPI +4% long term objective return of 7.3%.

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Sutton Coldfield Charitable Trust TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Investment policy and performance (continued)

The main Rathbones portfolio generated a return of 17.2% (net of fees) in the year to 30[th] September compared to the CPI +4% benchmark of 7.3% (2020: 0.5% negative vs 4.1%). Meanwhile, the Charitable Funds portfolio generated a return of 8.2% (net of fees) in the six months since the purchase of the CCLA COIF Charities Investment Fund compared to a benchmark return of 8.0%. The Trustees consider that the performance of Rathbones has been good, given the volatility of investment markets caused by the pandemic. Furthermore, the level of dividend income has been sufficient to support the Trust’s charitable activities and grant giving.

Reserves policy and going concern

The Endowment Fund represents capital funds which the Trustees have no power to convert into income. At 30 September 2021, this fund amounted to £68,108,293 (2020: £ 58,393,786 ) . The income generated from this fund is utilised to further the Trust’s charitable objectives and is included as unrestricted income.

The Trustees periodically review the level of reserves retained in unrestricted funds. The Trustees retain these reserves to the extent considered necessary to ensure that adequate funds are available to cover future expenditure items, both of a capital and revenue nature, which may not otherwise be covered by incoming resources. During the year, Trustees have reviewed the level of these reserves and consider that they should not, other than in exceptional circumstances, drop below £750,000 ( 2020: £750,000 ), which would be regarded as a contingency reserve.

The Trustees are mindful that investment income, which is the Trust’s main source of income, is susceptible to variation through market changes. Trustees therefore consider it appropriate to hold free funds to meet both the Trust’s commitment to outstanding grants, which can be over £1,000,000 at any one time and to cover its obligations to support the Almshouses, administration and governance costs. In addition, Trustees hold free funds in anticipation of significant special projects for the benefit of the public.

The Charitable Fund at 30 September 2021 amounted to £3,344,428 (2020: £2,720,973) , which the Trustees believe is sufficient given the Trust’s foreseeable commitments.

The Extraordinary Repair Fund, being transfers from the Charitable Fund, represents amounts retained to cover any major repairs, improvement or rebuilding of Almshouses or other properties within the next 25 years (particularly environmental / energy saving measures). Based on the Planned Maintenance programme, the Trustees determined that the Almshouses have a remaining life of at least 20 years, subject to regular and routine maintenance being undertaken, with some components potentially lasting considerably longer . At 30 September 2021, the Extraordinary Repair Fund amounted to £3,109,000 (2020: £2,912,000) which the Trustees consider to be appropriate. This fund has increased during the year by £197,000 (2020: £197,000) , in preparation for future Almshouse expenditure as well as continued and expanding improvements to other property investments. The Extraordinary Repair Fund is a designated fund.

The Cyclical Maintenance Fund, being transfers from the Charitable Fund, represents amounts retained to cover ordinary repair and maintenance of the Almshouses or other properties within the next 2 years. At 30 September 2021, the Cyclical Maintenance Fund amounted to £ 288,774 ( 2020: £288,774) . The Cyclical Maintenance Fund is a designated fund.

The Trustees have developed a rolling five-year financial plan. As part of the exercise, the Trustees review the reserves to ensure appropriate amounts are set aside. Based on this work, the Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

Future plans and objectives

The Social Needs Review of Sutton Coldfield will guide the Trust’s long-term strategic decisions and plans. The Trust recognises that the outcome of the Review will be of interest to the wider community and statutory agencies, and plans to hold dissemination events from Spring 2022. The Trust will strengthen its impact and understanding of what local people want and need through improved marketing and communications and by championing equality, diversity and inclusion in the most helpful and effective way.

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Sutton Coldfield Charitable Trust

TRUSTEES’ REPORT (continued) for the year ended 30 September 2021

Future plans and objectives (continued)

Income for grants and Almshouses is generated from the Trust’s portfolio of assets and investments, including commercial properties and agricultural land. Over 83 acres of this land falls within the Langley Sustainable Urban Extension area, allocated for the development of around 5,000 homes, with land sales anticipated to progress over the next 5-10 years. The anticipated financial returns from land sales over the next decade will require major decisions to be made well ahead of that time. Therefore, the progression of a clear long-term vision and direction will be a particular focus for the year ahead.

The Trustees have approved a budget for the current financial year, 2021/22, and plan to award grants at a similar level to previous years going forward.

Disclosure of information to auditor

The Trustees who held office at the date of approval of this Trustees’ report confirm, so far as each is aware, that there is no relevant audit information of which the Trust’s auditor is unaware; and each Trustee has taken all the steps that he/she ought to have taken as Trustee to make himself/herself aware of any relevant audit information and to establish that the Trust’s auditor is aware of that information.

Auditor

Sayer Vincent LLP was appointed as the Trust’s auditor during the year and has indicated its willingness to continue in that capacity.

On behalf of the board

Andrew Burley Chair

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Sutton Coldfield Charitable Trust

TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF 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 Trust’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

The Trustees are responsible for keeping proper accounting records which 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 applicable Charities (Accounts and Reports) Regulations and provisions of the Trust’s Scheme. They are also responsible for safeguarding the assets of the Trust and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the financial information included on the Trust’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Sutton Coldfield Charitable Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SUTTON COLDFIELD CHARITABLE TRUST

Opinion

We have audited the financial statements of Sutton Coldfield Charitable Trust (the ‘charity’) for the year ended 30 September 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Auditor’s 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 UK, including the FRC’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 Sutton Coldfield Charitable Trust'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.

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s 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.

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Sutton Coldfield Charitable Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SUTTON COLDFIELD CHARITABLE TRUST (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 Trust’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.

Auditor’s 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 regulations made under section 154 of that Act.

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 auditor’s 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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Sutton Coldfield Charitable Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SUTTON COLDFIELD CHARITABLE TRUST (continued)

Capability of the audit in detecting irregularities (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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 auditor’s 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 the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL

Date: 21 February 2022

Sayer Vincent LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 14

Sutton Coldfield Charitable Trust STATEMENT OF FINANCIAL ACTIVITIES for the year ended 30 September 2021

Notes

Income from:
Investments:
Income from investment properties
2
Income from investments
3
Short term deposit interest
Charitable activities
4
Total income
Expenditure
Expenditure on raising funds:
Investment property expenses
2
Investment management costs
Total cost of raising funds
Expenditure on charitable activities:
Cost of running Almshouses
5
Grant funding
Community purposes
5
Individual educational and personal
5
School clothing
5
Total charitable activities
Total expenditure
Net expenditure before gains or losses
on investments
Gains on investment assets
13
Net income and net movement in
funds
Fund balances brought forward at
1 October
18
Fund balances carried forward at
30 September
18		 Unrestricted
funds
2021
£
Endowment
fund
2021
£
506,472
-
1,022,747
-
47
-
1,529,266
-
226,548
-
1,755,814
-
352,134
-
19,217
141,889
371,351
141,889
614,466
6,105
979,592
-
20,109
-
103,176
-
1,717,343
6,105
2,088,694
147,994
(332,880)
(147,994)
1,153,335
9,862,501
820,455
9,714,507
5,921,747
58,393,786
6,742,202
68,108,293		 Total
funds
2021
£
506,472
1,022,747
47		 Total
funds
2020
£
520,361
1,183,309
6,548
1,710,218
202,524
1,912,742
67,238
104,577
171,815
403,300
1,257,395
38,896
67,601
1,529,266
226,548
1,755,814
352,134
161,106
513,240
620,571
979,592
20,109
103,176
1,723,448
2,236,688
(480,874)
11,015,836
10,534,962
64,315,533
1,767,192
1,939,007
(26,265)
2,212,653
2,186,388
62,129,145
64,315,533
74,850,495

The incoming resources, resources expended and resulting net movement in funds arise from the Trust’s continuing operations.

The Trust has no recognised gains or losses other than the net movement in funds for the year or preceding year.

Page 15

Sutton Coldfield Charitable Trust BALANCE SHEET 30 September 2021

Charity Registration No. 218627

Notes
Fixed assets:
Tangible assets
12
Investment properties
13
Listed and other investments
13
Total fixed assets
Current assets:
Debtors
14
Cash at bank and in hand
15
Total current assets
Liabilities:
Creditors: Amounts falling due within
one year
16
Net current (liabilities) /assets
Total assets less current liabilities
Creditors: Amounts falling due after
more than one year
16
Total net assets
The funds of the Trust:
Endowment fund
18
Unrestricted funds:
Charitable fund
18
Extraordinary repair fund
18
Cyclical maintenance fund
18
Total unrestricted funds
TOTAL TRUST FUNDS
18		 2021
£
£
640,228
33,330,000
41,927,061
75,897,289
167,407
499,058
666,465
(1,514,724)
(848,259)
75,049,030
(198,535)
74,850,495
68,108,293
3,344,428
3,109,000
288,774
6,742,202
74,850,495		 2020
£
£
843,211
26,383,000
37,406,362
64,632,573
144,658
1,183,480
1,328,138
(1,324,202)
3,936
64,636,509
(320,976)
64,315,533
58,393,786
2,720,973
2,912,000
288,774
5,921,747
64,315,533

The financial statements were approved by the Trustees on 9 February 2022 and were signed on their behalf by:

Andrew Burley Chair

Keith Dudley Vice Chair

Page 16

Sutton Coldfield Charitable Trust STATEMENT OF CASH FLOWS

Sutton Coldfield Charitable Trust
STATEMENT OF CASH FLOWS		 Sutton Coldfield Charitable Trust
STATEMENT OF CASH FLOWS		 Sutton Coldfield Charitable Trust
STATEMENT OF CASH FLOWS		 Sutton Coldfield Charitable Trust
STATEMENT OF CASH FLOWS
For theyear ended 30 September 2021
CharityRegistration No. 218627
Note
2021
2020
£
£
Cash flows from operating activities:
Net cash used in operating activities
20
(1,621,547)
(1,337,494)
Cash flows from investing activities:
Dividends, interest and rents from investments
1,529,267
1,710,218
Accumulation income
(94,162)
(202,139)
Interest retained for future investment
-
-
Proceeds from sale of investment property
15,250
15,000
Funds transferred (to)/ from investments
(513,230)
-
Net cash provided by investing activities
937,125
1,523,079
_
_
Change in cash and cash equivalents in the year
(684,422)
185,585
Cash and cash equivalent brought forward
1,183,480
997,895
Cash and cash equivalent carried forward
499,058
1,183,480
Note
Cash flows from operating activities:
Net cash used in operating activities
20
Cash flows from investing activities:
Dividends, interest and rents from investments
Accumulation income
Interest retained for future investment
Proceeds from sale of investment property
Funds transferred (to)/ from investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalent brought forward
Cash and cash equivalent carried forward
_
1,523,079
__
185,585
997,895
1,183,480

Page 17

Sutton Coldfield Charitable Trust ACCOUNTING POLICIES

BASIS OF ACCOUNTING

Sutton Coldfield Charitable Trust (“the Trust”) is regulated by a Scheme of the Charity Commissioners (“the Scheme”) (revised and updated 25 February 2021). The financial statements are drawn up in accordance with the accounting policies detailed below and in compliance with the relevant sections of the Charities Act 2011.

The financial statements have been prepared under the historical cost accounting rules as amended for the revaluation of investment assets and 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 (FRS102).

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

GOING CONCERN

The Trustees have prepared budgets and forecasts and considered the period of a minimum of 12 months from the date of approval of these financial statements in making its assessment that the going concern basis remains an appropriate basis of preparation of the financial statements.

Mindful of the net current liability position recorded on the balance sheet, the Trustees note that, after considering the level of cash reserves and unrestricted investments held in Fixed Assets and the capacity of the Trust to flex its activities if income levels fall significantly, there are no material uncertainties to the availability of sufficient unrestricted resources available to meet the Trust’s commitments.

FUNDS STRUCTURE

The Trust has a permanent endowment. This provides for the Trustees to invest the capital in perpetuity, the income from which is wholly unrestricted.

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objectives. They are retained to the extent that they are considered necessary to ensure that adequate funds are available to cover future expenditure items, both of a capital nature and revenue costs, which may not be covered by incoming resources. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.

The Trust is required in accordance with the Scheme to maintain a fund for the extraordinary repair, improvement or re-building of the Almshouses and other property belonging to the Trust. The level of this designated fund is regularly reviewed by the Trustees and amounts are transferred to meet expenditure which may be required in the future.

Further details of each fund are disclosed in notes 18 and 19.

STATEMENT OF FINANCIAL ACTIVITIES

The incoming resources and resources expended by the Trust are detailed below, together with the respective accounting treatments:

INCOME

All income is recognised once the Trust has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

Page 18

Sutton Coldfield Charitable Trust ACCOUNTING POLICIES (continued)

Income from investment properties

Income includes property income receivable less provision where the eventual receipt of income is considered doubtful.

Income from other investments

Dividends from quoted investments are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the Trust’s investment advisor of the dividend yield of the investment portfolio.

Other investment income is accounted for on an accruals basis.

Dividends and interest are shown as gross amounts prior to any tax deduction which is recoverable.

Income from charitable activities

Incoming resources from charitable activities relates to funds received in respect of Almshouse Weekly Maintenance Charges and any donations received by the Trust.

EXPENDITURE

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust to the expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

Grant funding

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Trust.

Conditional grants

Where payment of a grant is subject to a condition which is under the control of the Trust no commitment is recognised until the condition has been fulfilled.

Contingent grants

A contingent liability is disclosed for those grants, which do not represent liabilities, where the possible obligation, which arises from past events, will only be confirmed by the occurrence of one or more uncertain future events not wholly within the Trustees’ control.

EXPENDITURE ON RAISING FUNDS

The costs of generating funds consist of investment management fees and property expenses, allocated in proportion to funds invested.

Allocation of governance and support costs

Support costs are allocated first between “Charitable Activities” and “Governance“ using a combination of staff time and activity cost drivers.

Governance costs comprise all expenditure involving the public accountability of the Trust and its compliance with regulation and good practice. These include costs related to statutory audit and legal fees.

Page 19

Sutton Coldfield Charitable Trust ACCOUNTING POLICIES (continued)

Allocation of governance and support costs (continued)

Governance and support costs relating to charitable activities are then apportioned between Almshouses and grant funding using a combination of allocation, staff time and activity cost drivers (see note 8 for details).

FIXED ASSETS

Almshouses are stated at cost. However, the construction cost of the older blocks which were completed between 1896 and 1974 (containing 38 units) are not included within the balance sheet due to the age of the properties and the consequent unavailability of reliable costing information.

Security and other equipment are stated at cost although office equipment and IT are normally written off in the year of acquisition. A re-inspection carried out in June 2018 determined that the Almshouses had a minimum remaining life of at least 20 years, subject to regular and routine maintenance being undertaken. The depreciation policy was amended accordingly so that assets are depreciated over their estimated useful life, as follows:

Almshouses 20 years - straight line on net book value at 30 June 2018 Security and other equipment 5 years - straight line

Almshouses improvements policy

Where capital additions to the Almshouses are made, they are depreciated over the shorter of the remaining useful life of the property to which they relate and the life of the individual building component on a straight-line basis. Where necessary, the Trust makes an impairment charge for assets when they are (a) due for replacement within the planning period and (b) there is clear Trustee approval to the replacement programme.

FIXED ASSETS – VALUATION OF INVESTMENTS

Investments are included in the balance sheet at their fair values at 30 September which are determined as follows:

All movements in value arising from investment changes or revaluation are recognised in the Statement of Financial Activities.

REALISED GAINS AND LOSSES

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value or purchase cost if purchased during the year. Realised and unrealised investment gains are not separated in the Statement of Financial Activities.

PENSIONS

Contributions are paid into Personal Pension Plans operated by Aviva. Pension costs charged in the Statement of Financial Activities represent the contributions payable by the Trust in the year.

Page 20

Sutton Coldfield Charitable Trust ACCOUNTING POLICIES (continued)

TAXATION

The Trust is exempt from taxation on its income and gains where they are applied for charitable purposes.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The Trust makes estimates and assumptions concerning the future. The resulting estimates and assumptions will, by definition, seldom equal the related actual results. The Trustees do not consider there to be any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The Trust carries its investment properties at fair value, with changes in fair value being recognised through the Statement of Financial Activities. The Trust engages independent valuation specialists to determine fair value of these properties each year. Some of the key assumptions used to determine the fair value of these assets are based on the valuers’ knowledge and experience of the market and values of similar properties, which could be deemed subjective.

Freehold Almshouses will be fully depreciated in 2038. Over this period, considerable investment will be required and a potential re-build in 2038 is proposed (subject to review and consideration by Trustees). To ensure reserves are available for future investment in Almshouses, the Trust is accumulating an estimated level of funds in the Extraordinary Repair Fund.

FINANCIAL INSTRUMENTS

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions of the instrument, and are offset only when the Trust has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Rental and other debtors

Rental and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost.

A provision for impairment of rental debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Financial Activities for the excess of the carrying value of the rental debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Page 21

Sutton Coldfield Charitable Trust ACCOUNTING POLICIES (continued)

Financial assets (continued)

Investments

Investments are equity investments over which the Trust has no significant influence, joint control or control and are initially measured at transaction price.

Financial liabilities

Financial instruments are classified as liabilities according to the substance of the contractual arrangements entered into.

Trade and other creditors

Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Page 22

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021


Income from:
Investments:
Income from investment properties
Income from investments
Short term deposit interest
Charitable activities
Total income
Expenditure
Expenditure on raising funds:
Investment property expenses
Investment management costs
Total cost of raising funds
Expenditure on charitable activities:
Cost of running Almshouses
Grant funding
Community purposes
Individual educational and personal
School clothing
Total charitable activities
Total expenditure
Net income/(expenditure) before gains or losses on
investments
(Losses)/Gains on investment assets
Net (expenditure)/income and net movement in funds
Trust fund balances brought forward at
1 October
Fund balances carried forward at
30 September		 Unrestricted
funds
2020
£
Endowment
fund
2020
£
520,361
-
1,183,309
-
6,548
-
1,710,218
-
202,524
-
1,912,742
-
67,238
-
(867)
105,444
66,371
105,444
397,195
6,105
1,257,395
-
38,896
-
67,601
-
1,761,087
6,105
1,827,458
111,549
85,284
(111,549)
(614,257)
2,826,910
(528,973)
2,715,361
6,450,720
55,678,425
5,921,747
58,393,786		 Total
funds
2020
£
520,361
1,183,309
6,548
1,710,218
202,524
1,912,742
67,238
104,577
171,815
403,300
1,257,395
38,896
67,601
1,767,192
1,939,007
(26,265)
2,212,653
2,186,388
62,129,145
64,315,533

Page 23

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

3
INCOME FROM INVESTMENTS
Dividends and fixed interest income receivable
4
INCOME FROM CHARITABLE ACTIVITIES
Almshouse Weekly Maintenance Charges
Donations
Dividends and fixed interest income receivable
2
INCOME FROM INVESTMENT
PROPERTIES
2021
£
Rents and property income
receivable
Less:
Agents’ commission and
Expenses
12,483
Property expenses
317,767
Valuation fee
15,000
VAT irrecoverable
6,884
Net income from investment
properties
*
Property Expenses include dilapidations works and
associated with empty commercial properties		 2021
£
2020
£
1,022,747
1,183,309
2021
£
2020
£
214,098
202,524
12,450
-
226,548
202,524

2020
£
£
£
506,472
520,361
12,182
42,409
6,500
6,147
(352,134)
(67,238)
154,338
453,123
additional security and maintenance costs.

Page 24

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

5a ANALYSIS OF CHARITABLE EXPENDITURE (2021)

The Trust undertook direct charitable activities in the provision of Almshouses and awarded grants to individuals and institutions in furtherance of its charitable activities.

Almshouses
Grants:
Grants for community
purposes to institutions
Special grant for
community purposes to
institutions
Individual grants for
personal and
educational needs
School clothing grants
to individuals		 Activities
undertaken
directly
£
436,166
-
436,166
Note 6		 2021
2020
Grant
funded
activity
£
Support
costs
£
Total
£
Total
£
-
184,405
620,571
403,300
868,934
110,658
979,592
911,172
-
-
-
346,223
(2,240)
22,349
20,109
38,896
73,700
29,476
103,176
67,601
940,394
162,483
1,102,877
1,363,892
940,394
346,888
1,723,448
1,767,192
Note 7
Note 8
Statement of
financial
activities
Statement of
financial
activities		 2020
Total
£
403,300
911,172
346,223
38,896
67,601
1,363,892

Page 25

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

5b ANALYSIS OF CHARITABLE EXPENDITURE (2020)

Comparative figures for the prior year are as follows:

Activities
undertaken
directly
£
Almshouses
194,914
Grants:
Grants for community
purposes to institutions
-
Special grant for
community purposes to
institutions
-
Individual grants for
personal and
educational needs
-
School clothing grants
to individuals
-
-
194,914
6
COST OF RUNNING ALMSHOUSES
Staff costs
Rates, water and insurance
Heat and light
Maintenance of lawns and gardens
Repairs
Sundries
VAT irrecoverable
Depreciation (note 12)
Impairment (note 12)		 2020
Grant
funded
activity
£
-
769,551
339,636
5,961
42,900
1,158,048
1,158,048		 Support
costs
£
208,386
141,621
6,587
32,935
24,701
205,844
414,230
2021
£
57,707
20,011
9,557
8,936
105,644
13,272
18,056
233,183
50,383
152,600
436,166
Note 5		 Total
£
403,300
911,172
346,223
38,896
67,601
1,363,892
1,767,192
2020
£
55,157
23,743
10,762
6,800
29,776
13,748
4,545
144,531
50,383
-
194,914

Page 26

Sutton Coldfield Charitable Trust

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

7
GRANTS
2021
Number of
grants
£
Grants for community purposes
to institutions
53
1,007,686
Grants to individuals for
personal and educational needs
12
10,998
School clothing grants to
individuals
737
73,700
Total grants awarded
802
1,092,384
Awarded grants unclaimed or
cancelled
-
(151,990)
Net grants awarded
802
940,394
Note 5
Grants for community purposes comprise:
Number of
grants
£
Grants awarded:
Greater than £1,000
33
995,397
£1,000 or less
20
12,289
53
1,007,686		 2020
Number of
grants
£
68
1,150,252
20
16,562
429
42,900
517
1,209,714
-
(51,666)
517
1,158,048
Number of
grants
£
46
1,139,106
22
11,146
68
1,150,252

A full list of grants made by the Trust is included in its Annual Review, available on the Trust’s website www.suttoncoldfieldcharitabletrust.com

Page 27

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

8a ALLOCATION OF GOVERNANCE AND SUPPORT COSTS (2021)

A breakdown of governance and support costs for 2021 is shown below, together with the way in which these have been allocated between charitable and governance activities:

Staff costs
IT and advertising
Office costs
Sundry and irrecoverable VAT
Auditor’s remuneration (note 11)
Legal fees
Costs of meetings		 Total
allocated
£
212,065
63,754
23,317
30,527
15,225
1,774
226
346,888
Note 5		 Charitable
activities
£
Governance
£
Basis of
allocation
113,537
98,529
Staff time
36,174
27,580
Activity
14,624
8,693
Staff time
19,146
11,381
Staff time
-
15,225
-
1,774
-
226
183,481
163,408

8b ALLOCATION OF GOVERNANCE AND SUPPORT COSTS (2020)

Comparative figures for the prior year are as follows:

Staff costs
IT and advertising
Office costs
Sundry and irrecoverable VAT
Auditor’s remuneration (note 11)
Legal fees
Costs of meetings		 Total
allocated
£
215,574
28,612
19,929
117,203
25,650
3,021
4,241
414,230		 Charitable
activities
£
Governance
£
Basis of
allocation
133,958
81,616
Staff time
19,075
9,537
Activity
12,384
7,545
Staff time
72,829
44,374
Staff time
-
25,650
-
3,021
-
4,241
238,246
175,984

Page 28

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

8 ALLOCATION OF GOVERNANCE AND SUPPORT COSTS (continued)

The total governance and support costs attributable to charitable activities is then apportioned between Almshouses (specific) and grant funding (pro rata to staff time) as shown in the table below:

Almshouses
Grants:
Grants for community purposes to institutions
Special grant for community purposes to institutions
Individual grants for personal needs
School clothing grants to individuals
Total		 2021
£
184,405
110,658
-
22,349
29,476
162,483
346,888
Note 5		 2020
£
208,386
141,621
6,587
32,935
24,701
205,844
414,230

9 ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

The average number of staff employed during the year was as follows:


Almshouses staff
Office staff
he total emoluments of these persons were as follows:
Wages and salaries
Social security costs
Pension costs		 Number of employees
2021
2020
3
3
6
6
9
9
2021
£
2020
£
227,665
233,314
16,427
16,274
26,608
21,143
270,700
270,731

The total emoluments of these persons were as follows:

Page 29

Sutton Coldfield Charitable Trust

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

The Trust considers its key management personnel comprise the Chief Executive and the Financial Controller. The total employment benefits including employer National Insurance and pension contributions of the key management personnel were £99,597 ( 2020: £103,558 ). There were no employees who earned more than £60,000 in the year ( 2020: None ).

Page 30

Sutton Coldfield Charitable Trust

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

The Trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind ( 2020: £Nil ). Expenses paid to the Trustees in the year totalled £Nil ( 2020: £80 - travel expenses for 1 trustee ).

Trustee indemnity insurance, to protect the Trust from loss and indemnify the Trustees and Officers against the consequences of any neglect or default on their part, is taken out by the Trust.

During the financial year, the following related party transactions were recorded and, in all cases, the related parties took no part in the discussion or decision of grants approved and played no part in the payment process of grants:

Relationship with: Relationship with:
Transaction type Amount£ Beneficiary Related parties the Trust Beneficiary
Grant approved & 45,000 Deanery CE Primary Jayne Luckett Trustee Headteacher
Paid School
Grant approved 32,670 Sutton Coldfield Malcolm Cornish Trustee Chairman of
Town Football Club organisation that
rents space
Grant approved 43,500 Holy Trinity Parish John Routh Trustee Professional
Church Connection
Grant approved 45,000 Wylde Green Jayne Luckett & Trustees Professional
Primary School Keith Dudley connection
Grant approved & 12,000 Sutton Coldfield Malcolm Cornish Trustee Supporter
part paid Community Games
Grant approved & 92,298 St Giles Hospice Dr Francis Murray Trustee Family member
part paid connection
Grant approved & 15,000 Heart Care Sutton Carole Hancox Trustee Family member
paid Coldfield (until April connection
2021)
Grant approved 630 Glovers Trust Pam Johnston Staff Trustee
&paid Almshouses MBE JP
Grant approved 45,000 Whitehouse Jayne Luckett Trustee Professional
Common Primary connection
School
Grant approved & 9,946 Salus Fatigue Inge Kettner Trustee Trustee
part paid Foundation
Grant part paid 147 CPR Counts Dr Steve Martin Trustee A friend of the
founder
Purchase 37,210 Electronic Business Alison Trenfield Employee Acquaintance of
payments Systems Ltd (until May business owner
2021)

Page 31

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

11 NET INCOME/ EXPENDITURE FOR THE YEAR

This is stated after charging/ (crediting):

his is stated after charging/ (crediting):
2021 2020
£ £
Depreciation 50,382 50,383
Impairment 152,600 -
Operating lease rentals receivable:
Property 506,472 520,361
Auditor’s remuneration (excluding VAT)
Audit 13,738 10,792
Other services 1,487 14,858

12 TANGIBLE FIXED ASSETS

Freehold
Almshouses
£
Freehold
Almshouses
improvement
£
Security/
safety
equipment
£
Cost:
At 1 October 2020
496,333
1,900,984
101,182
Additions
-
-
-
At 30 September 2021
496,333
1,900,984
101,182
Depreciation:
At 1 October 2020
388,238
1,179,436
87,614
Impairment Charge
-
152,600
-
Charge for year
6,105
40,661
3,617
At 30 September 2021
394,343
1,372,697
91,231
Net book value:
At 30 September 2021
101,990
528,287
9,951
At 30 September 2020
108,095
721,548
13,568		 Total
£
2,498,499
-
2,498,499
1,655,288
152,600
50,383
1,858,271
640,228
843,211

The freehold Almshouses comprise seven blocks on the Trust’s main site in Walmley. The cost of constructing the most modern block (containing 8 units, completed in 1995) is included within the balance sheet. The construction cost of the older blocks which were completed between 1896 and 1974 (containing 38 units) are not included within the balance sheet due to the age of the properties and the consequent unavailability of reliable costing information. As it was the Trust’s policy to initially depreciate freehold Almshouses over 25 years, and the most recent of the non-capitalised assets were acquired in 1974, the assets, if they were included, would be fully depreciated at 30 September 2021 and would therefore have £Nil (2020: £Nil) impact on the balance sheet. However, the cost of subsequent improvement and renovation works is included.

Page 32

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

12 TANGIBLE FIXED ASSETS (continued)

The impairment charge of £152,600 (2020 : £nil) is in respect of kitchens and bathrooms which were previously being depreciated until 2038, but are now scheduled for replacement over the next two years.

13 INVESTMENTS (HELD AS FIXED ASSETS)

Investments (held as fixed assets) comprise the following:

Investments in Endowment Fund
Investment properties
Government stocks
Listed companies
Ordinary stocks and shares
Unit trusts
Cash held for re-investment
Investments in Charitable Fund
Unit trusts
COIF Charities Investment Fund Accumulation Units
Cash held for re-investment
Investments in the Cyclical Maintenance Fund
COIF Charities Investment Fund Accumulation Units
Investments in Extraordinary Repair Fund
COIF Charities Investment Fund Accumulation Units
Total investments
Analysed as:
Investment properties at fair value
Listed and other investments at fair value:
UK
Other
Cash held for re-investment		 2021
£
33,330,000
5,433,519
9,171,884
18,403,095
1,851,251
___
68,189,749
___
2,121,338
1,548,193
7
3,669,538
288,774
3,109,000
75,257,061
33,330,000
23,963,945
16,111,858
40,075,803
1,851,258
75,257,061		 2020
£
26,383,000
5,362,133
7,154,336
18,875,515
687,336
_
58,462,320
_
1,862,300
263,953
15
2,126,268
288,774
2,912,000
63,789,362
26,383,000
20,639,579
16,079,432
36,719,011
687,351
63,789,362

Page 33

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

13 INVESTMENTS (HELD AS FIXED ASSETS) (continued)

Cash held for re-investment is held for short term as a matter of timing difference whilst funds are re-invested.

Movement in fixed asset investments (2021)

2021 2020
Freehold Listed and Cash held
investment other for re-
properties investments investment Total Total
£ £ £ £ £
Market value at 1 October 26,383,000 36,719,011 687,351 63,789,362 61,521,900
Add: Additions at cost 1,814,591 8,699,345 1,163,907 11,677,843 11,773,733
Less: Disposal proceeds
(net) (15,250) (11,210,730) - (11,225,980) (11,718,924)
Net gains for year 5,147,659 5,868,177 - 11,015,836 2,212,653
Market value at 30
September 33,330,000 40,075,803 1,851,258 75,257,061 63,789,362

Movement in fixed asset investments (2020)

Comparative figures for the prior year are as follows:

2020
Freehold Listed and Cash held
investment other for re-
properties investments investment Total
£ £ £ £
Market value at 1 October 22,345,000 35,658,288 3,518,612 61,521,900
Add: Additions at cost - 11,773,733 - 11,773,733
Less: Disposal proceeds
(net) (15,000) (8,872,663) (2,831,261) (11,718,924)
Net (losses)/gains for year 4,053,000 (1,840,347) - 2,212,653
Market value at 30
September 26,383,000 36,719,011 687,351 63,789,362

The properties are independently valued every five years on the basis of open market value. In the year, Johnson Fellows and Nick Russell Associates undertook a full revaluation of the Trust’s properties as at 30 September 2021. This was due to be undertaken as at 30 September 2020 but, due to the difficulties faced by COVID-19 safeguarding measures and also the uncertainty of market valuations, the Trustees elected to defer the full review until 2021.

Included within investments are two properties with a market value of £10,000 ( 2020: £10,000 ) which are let on long leases for a peppercorn rent in furtherance of charitable objectives.

Page 34

Sutton Coldfield Charitable Trust

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

14
DEBTORS
Rentals receivable
Interest and dividends receivable
Prepayments and accrued income
Other debtors
15
BANK BALANCES AND SHORT-TERM DEPOSITS
Short-term deposits
Current accounts
Petty cash
16
ANALYSIS OF CURRENT LIABILITIES AND LONG-
TERM CREDITORS
Creditors under one year
Charitable grants payable
Rental income invoiced and payable in advance
Accruals
Taxation and social security
Other creditors
Creditors due after one year
Retentions
Charitable grants payable		 2021
£
81,943
54,981
30,133
350
167,407
2021
£
208,070
290,310
678
499,058
2021
£
1,030,398
159,931
216,799
16,009
91,587
1,514,724
2021
£
4,196
194,339
198,535		 2020
£
48,311
60,975
35,022
350
144,658
2020
£
431,964
751,265
251
1,183,480
2020
£
924,541
110,478
126,976
85,306
76,901
1,324,202
2020
£
-
320,976
320,976

Page 35

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

17
FINANCIAL INSTRUMENTS
Financial assets:
Fixed Asset Investments at fair value
Debt instruments measured at amortised cost
Financial liabilities measured at amortised cost
18a
FUNDS (2021)
Endowment
Fund
£
Unrestricted
Charitable
Fund
£
Designated
Extraordinary
Repair Fund
£
Balance at
1 October 2020
58,393,786
2,720,973
2,912,000
Income
-
1,755,814
-
Expenditure
(147,994)
(2,088,694)
-
Gains on investments
9,862,501
1,153,335
-
Transfers
-
(197,000)
197,000
Balance at
30 September 2021
68,108,293
3,344,428
3,109,000
18b
FUNDS (2020)
Endowment
Fund
£
Unrestricted
Charitable
Fund
£
Designated
Extraordinary
Repair Fund
£
Balance at
1 October 2019
55,678,425
3,508,646
2,715,000
Income
-
1,912,742
-
Expenditure
(111,549)
(1,806,158)
-
Gains on investments
2,826,910
(614,257)
-
Transfers
-
(280,000)
197,000
Balance at
30 September 2020
58,393,786
2,720,973
2,912,000		 2021
£
2020
£
40,075,802
36,719,011
137,274
109,637
40,213,077
36,828,648
1,537,319
1,557,116
Designated
Cyclical
Maintenance
Fund
£
Total
£
288,774
64,315,533
-
1,755,814
-
(2,236,688)
-
11,015,836
-
-
288,774
74,850,495
Designated
Cyclical
Maintenance
Fund
£
Total
£
227,074
62,129,145
-
1,912,742
(21,300)
(1,939,007)
-
2,212,653
83,000
-
288,774
64,315,533

The Endowment Fund represents those assets which must be held permanently by the Trust, principally investments. Income arising on the Endowment Fund can be used in accordance with the objects of the Trust and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the Endowment Fund. Investment management charges relating to the Endowment Fund have been charged against the Endowment Fund.

The Trustees have designated an Extraordinary Repair Fund to cover any major repairs, improvement or rebuilding of Almshouses or other properties which may be required. During the year, £197,000 ( 2020: £197,000 ) was transferred from the Charitable Fund.

Page 36

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

18 FUNDS (continued)

The Trustees have designated a Cyclical Maintenance Fund to cover ordinary repair and maintenance of the Almshouses or other properties. During the year, £nil was charged to the fund as expenditure ( 2020: £21,300) and £nil was transferred from the Charitable Fund ( 2020: £83,000 ).

19a ANALYSIS OF NET ASSETS BETWEEN FUNDS (2021)

Endowment
Fund
£
Tangible assets
101,990
Investments
68,189,749
Current assets
(147,049)
Current liabilities
(36,397)
Long term liabilities
-
Total net assets
68,108,293		 Unrestricted
Charitable
Fund
£
Designated
Extraordinary
Repair Fund
£
Designated
Cyclical
Maintenance
Fund
£
538,238
-
-
3,669,538
3,109,000
288,774
813,514
-
-
(1,478,327)
-
-
(198,535)
-
-
3,344,428
3,109,000
288,774		 Total
£
640,228
75,257,061
666,465
(1,514,724)
(198,535)
74,850,495

19b ANALYSIS OF NET ASSETS BETWEEN FUNDS (2020)

Comparative figures for the prior year are as follows:

Endowment
Fund
£
Tangible assets
108,095
Investments
58,462,320
Current assets
(139,639)
Current liabilities
(36,990)
Long term liabilities
-
Total net assets
58,393,786		 Unrestricted
Charitable
Fund
£
Designated
Extraordinary
Repair Fund
£
Designated
Cyclical
Maintenance
Fund
£
735,116
-
-
2,126,268
2,912,000
288,774
1,467,777
-
-
(1,287,212)
-
-
(320,976)
-
-
2,720,973
2,912,000
288,774		 Total
£
843,211
63,789,362
1,328,138
(1,324,202)
(320,976)
64,315,533

Page 37

Sutton Coldfield Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2021

20 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income (per SOFA)
Adjustments for:
Depreciation and impairment charges
Investment managers' fees
(Gains) on investments

Dividends, interest and rents from investments
(Increase) in debtors
Increase in creditors (excluding investment managers' fee)
Net cash used in operating activities
21
CAPITAL COMMITMENTS
Authorised and contracted for but not
provided for in the financial statements.		 2021
£
10,534,962
202,982
140,279
(11,015,836)
(1,529,267)
(22,748)
68,081
(1,621,547)
2021
£
16,608		 2020
£
2,186,388
50,383
131,754
(2,212,653)
(1,710,218)
(21,784)
238,636
(1,337,494)
2020
£
-

The commitment for capital projects of £16,608 at 30 September 2021 is for contract administration fees (including irrecoverable VAT) in respect of the 2021/22 Almshouse window, bathroom and kitchen replacement programme.

22 OPERATING LEASES

At 30 September 2021 the future minimum lease payments due to the Trust under non-cancellable operating leases are as follows:

Expiry date:
Due within 1 year:
Land and buildings
Between 2 and 5 years:
Land and buildings
More than 5 years:
Land and buildings		 2021
£
693,667
1,580,906
1,320,744		 2020
£
497,535
1,561,509
1,605,326

Page 38