Sutton Coldfield Charitable Trust TRUSTEES, REPORT AND FINANCIAL STATEMENTS for the year ended 30 September 2022 Charity No. 218627 Sutton Coldfield Charitable Trust TRUSTEES AND PRINCIPAL ADVISORS for the year ended 30 September 2022 Constitutlon Sutton Coldfield Charitable Trust I'lhe TrusV'I is ￿gUlated by a Scheme of the Charity Commissioner5 (revised and updated dated 25 February 20211 I￿giStered number 2186271 I'the Scheme"). The Trust is a registered charity and complies with the Charities Act 2D11. The financial slalemenls 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 ac￿Unts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland. Trusteos The Trustees who served during the year were.. Board of Trustoes Grants Committee Property Cornmlttge Almshouse Committee Flnance Commlttoe Nominatod By: Birrningham City Council Royal Sutton Coldfield Town Council Keith Dudley (Chair from 9 Februarv 20221 Inge Kettner {Vice Chair from 9 February 2022) "IChair} 'lfrom9 February 2022 . Ifrom 9 February 2022 Chair (until 9 February 20221 Neil Andrews Andrew Burley (Chair until 9 February 20221 Malcolm Cornish Iresiqned 20 May 20221 Councillor Diane Donaldson Ranjan Hoath resi ned 18 Ma Ja ne Luckett Dr Sle hen Martin Andrew Morris Councillor Jane Mosson 'IChairl (until 9 February 20221 2022 '{from 10 Auoust 2022) Dr Francis Murra Councillor David Pears (appointed 18 August 2022 John Routh (resigned I January 20231 Councillor Simon Ward Amarjit Singh (resigned 25 October 2022 Chair 'Ifrom 11 August 2021 until 25 Octobei 20221 "lfrom 11 November 2021 until 25 October 20221 Page I Sutton Coldfield Charitable Trust TRUSTEES AND PRINCIPAL ADVISORS (continued) for the year ended 30 Septernber 2022 Principal officers rina Swani MBA FCIM (Chief Execulivel Rob Semple ACMA (Financial Controller) Pamela Johnston MBE JP (Almshouse Manager) David Cole ACIB (Grants Manager until 15 December 20221 Clare Haines BA (Grants Manager from 15 November 20221 Helen Kimmet (Administration Manager) Reglstered address Lingard House Fox Hollies Road Sutton Coldfield West Midlands B76 2RJ Telephone number." 0121 794 0970 Advisovs Auditor Bankers Sayer Vincent LLP Chartered Accountants Invicta House 108-114 Golden Lane London EC1YOTL HSBC Bank plc 67 The Parade Sutton Coldfield West Midland$ 872 1PD Investment Managers Propety M8n8gers Rathbone Investment Management Limited 8 Finsbury Circus London EC2M 7AZ Johnson Fellows LLP Charter House 163 Newhall Street Birmingham B3 1SW CCLA Investment Management Senator House 85 Queen Street London EC4V 4ET EOS Surveyors Ltd Arion Business Centre Harriet House 118A High Street Birmingham B23 SBG Investment Consuttants Stsnhope Consulting LLP 35 Portman Square London W1H6LR Nick Russell Associates Lavender Cottage Lucton Leominster Herefordshire HR6 9PH Insurance Brokers Solicitors Endsleigh Insurance {Brokers) Ltd Shurdington Road Cheltenham Gloucestershire GL514UE Gowling WLG IUKI LLP Two Snowhill Birmingham B4 6WR Page 2 Sutton Coldfield Charitable Trust TRUSTEES. REPORT for the year ended 30 September 2022 The Trustee$ present their annual ￿port and audited financial statements for the year ended 30 September 2022. History of the Trust The Trust's origins go diwtly back to Bishop Vesey, an inhabitant of Sutton Coldfielé, born in the town. who persuaded Henry Vlll to grant a Charter in 1528 establishing a Warden and Society {Corporationl to govern the Town. The Corporation was obliged to use Tental and other income to provide poor relief and improve the locality. Over the next four centuries, other bequests and endowments carne within the Corporation's oversight These included charities in memory of Thomas Jesson in the 1700s to provide apprenticeships for boys and to distribute b￿ad lo Sutton's poor. After a long and famous legal action, the Corporation's charities were reorganised in the 1820$ and enriched by lands acquired in the 1825 Enclosu￿ Award. From this time, Almshouses were built and the charities provided elementary schools lineluding teaching and uniforms) for Sutton's child￿n. Practical necessities such as coal, blankets and boots were widely distributed. In pre-welfare slate days, the charities financed nursing and medical care for people in need and made grants lo 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 in the 1890s from a bequest by Fran￿ Lingard. When Sutton Coldfield became part of Bimiingham in 1974, the independence of the Trust was safeguarded which ensured the continuing provision of benefits for individuals and organisab'ons within the foTrner Borough boundaries. Although the separate historic charities have been consolidated into one charty, the Trustees, fundamental aims and priorities are stsll very similar to those pursued by Bishop Vesey and his successors over nearly five centuries. Vlslon The wsion of Sutton Coldfield Charitable Trust is to enhance the qualty of life for all in Sutton Coldfiekl. Mission statoment Sutton Coldfield Charitable Trust aims lo alleviate hardship and improve the quality of life for residents of the Royal Town of Sutton Coldfield through the provision of housing and grant awards to support indwiduals and community organisations. Value8 The Trust strives to be responsible,. inclusive,. earing,. transparent and sustsinable in all our activities. What ourvalues moan Responsible applies lo all matters including being a good employer. caring for the environment. protecting our assets and good govemance. In¢luslve relates to our operations, beneficiaries. staff and all those we work wrth.. embracing equality, diversity and inclusion. Caring reflects the helping nature of the Trust and ils core purpose. Transparont demonstrates our commitsment to openness and sharing. Sustainable ensures the Trust continues to make a lasting contribution and remains in good shape for the centuries ahead. Objectives and actlviti88 for th8 public benefit The principal objectives of the Trust a￿ the provision of Almshouses and 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. Page 3 Sutton Coldfield Charitable Trust TRUSTEES. REPORT (continued) for the year ended 30 September 2022 Objectives and activities for the publlc benaflt {contlnuedl The Trustee5 confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the Trusvs aims and objects.ves and in planning future activities and setting grant making policies. They consider the information which is contained in this report about the Trusvs obJe¢tives, activities and achievements demonstrates the benefits to its beneficiaries and, through them to Ihe public, that arise from those activities. Grant maklng poll¢y 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- The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage," Making awards to institutions or organisations for the-. prevenbon or relief of povety., advancement of education., advancement of religion., advancement of health or the saving of lives., advan￿ment of citizenship or community development.. advancement of the arts, culture. heritage or sctence., repair of historic buildings., advancement of amateur sportr, advancement of environmental protects'on or improvement., other purposes that are currenfjy recognised as charitable or are in the spirit of any purposes currenuy recognised a5 charitable. Grnnt appliution process The Trust deals with all grant applications as quickly as possible and without unnecessary bureaucracy. An email, a telephone call, or 8ven an answer-phone message. is all that is needed to make contact. Applicants receive clear written guidelines, helping them to assemble the information required by the Trustees. The Grant5 Committee meets regularfy lat least eight bmes each yearl and receives carefvlly researched ￿pOrtS from the Trust's staff. who present evidence from meetings, visits, documents and accounts. Applicants usually meet Trust staff, either virtually, at the Trust's offices, or at their own locations. 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 obloation involving all Trustees and staff. A risk register is used for Ihe on-going review of risks and controls, by the Risk Management Sub- Committee. which meets al least ￿lce a year, Finance Committee and the Board of Trustees, to ensure that the risk management process is operating satisfactorily. The risks are recorded and assessed in tems of impact and probability and a traffic light system is employed to highlight areas of particular concem. The Trustees adopt a flexible approach, responding to newly identsfied areas of risk as well as evaluating progress in mitigating risks previously identth'ed. The Trustees have identified the following key strategic risks to the charity. Actions to mitigate against these risks a￿ also detailed.. Risk: Loss of key staff. resulling in loss of corporate knowledge and delay to operational projects and priorities. Page 4 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Risk man•goment Icontinuod Mltlgatlon.. This risk is managed by operating flexible working practices (in¢luding cover as needed). appropriate nob-ce periods for all staff, written procedures and electron storage and sharing of key records Financial risks including high inf121ion, loss of capital and income on the permanent endowment and over dependence on key income sources. Risk: Mitigation.. This risk is managed by appropriate investment pOI￿leS. management of the Tnjsts assets by professional advisers, scrutiny of advisers via Board and Committees, having a suitable reserves policy and regular budgeting, monitoring and reporting on financial perf0mlan￿. Risk: COVID-19 pandemic with associated risk to Almshouse Tesidenls, staff and visitors as well as an operational and financial impact on the Trust. Although this is having a lower impact than before, it is still a significant risk to the Trust. Mltigatlon.. This risk is man8ged by planning le.g. Disaster Recovery Plan), risk assessment and guidance lo staff and residents and implementing COVID-19 protocols and pr￿du￿$, including input from extemal advisors and insurers where appropriate. The financial impact is managed through budgeting. forecasting. in-year monitorsng of financial results and reports from investment advisers. Pay and remuneratlon of Key Management Personnel The pay and remuneration of key management personnel are set wrth reference to published pay market data, including the Xpert HR Voluntary Sector Annual Salary Survey. A Remuneration Su Committee of the Board appraises pay annu211y and makes recommendattons to the Finance Committee and the full Board. Structure, governance and manag•m•nt lnfornats.on relating to referen￿ and administrative matters are set out above {pages 1-21. The Board comprises a minimum of 12 and a maximum of 16 Trustees, 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 8irmingh2m City Council and Royal Sutton Coldfield Town Council for terms of four years. Trustees may serve a maximum of three terms, following wh￿h at least 12 months must expire before reappointment The Board seeks Trustees who will diversify, baLqnce and complement the range of skills and experience among their members wrth the qualities and expertise fftquired for the attainment of its charitable and strategic objectives. That expertise has included medicine, law, property, industy, faith, education, engineering. human resources. science, sheltered housing, town planning, marketing, accountancy and Local Govemment. Trustees have an inducb'on to familiarise them wth their responsibilities and the purpose of the Trust. Al Trustees have a ts¥o-yearly review with the Chair or Vice Chair. New Trustees also have a review in their first year. The Board of Trustees is responsible fcr all of the TrusV5 activities and rneets quarterly to receive report5, make decisions, and determine strategy. The aim is lo hold a strategy day at least every hvo years, suppSemenled 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 ils responsibilit￿s. The Board oversees the financial health of the Trust, ensuring that management of its investments and accounts are robust, effective controls are in place and funding is sufficient to meet the demands of the Almshouses and grant-making programmes as the tsvo core purposes of the Trusl. Page 5 Sutton Coldfield Charitable Trust TRUSTEES, REPORT {continued) for the year ended 30 September 2022 Structure, govemancg and management Icontinuedl Every Trustee is a member of one or mor8 of the following Committees.. Almshouse Committee Grants Committee Finance Committee Property Committee Remuneration Sub-committee Risk Management Sub-committee Whilst each Committee has ils 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 lo provide guidance on Complian￿ matters such as safety requirements and other specialist expertj'se. Working groups may be sel up for spe¢ifi¢ purposes. Over the past year, these have included a Social Needs Review Group. a Grants Strategy Working Group, a Governance Working Group and a Strategic Planning Group. An extensive review of governance and Complian￿ was undertaken in 2019, with many action points already addre55ed. This review was refreshed in 2021122 following the publication of the revised Charity Governance Code late in 2020 with all aGlion5 in progress. This has included act￿}nS relating lo equality, diversity and inclusion IEDII. Trustees have also made EDI an embedded theme throughout the SCCT Five Year Plan. Progress againsl the actions is regularly reported to the Board of Trustees. The Strateg￿ planning process and g0Veman￿ reviews have supwrted cLqrity of planning to enhance charitable benefil al a time of continued and increasing adversity and uncertainty. The Trust wll continue to work collaboratively with local stakeholders. including the NHS and Town Council to build an ongoing understanding of changing needs in the Royal Town during a time of extensive and escalating hardship. Trustees will also explore how the Trust can improve its environmental impact. Fundralslng The Trust (Joes not undertake any fundraising activities in its own right or through third parties and so does not consider it necessary lo register wth the Fundraising Regulator or comply with any voluntary code of practice related to fundraising. The Trust has not received any complaints relating to fundraising. Review of actlvltles and achievements During the past year. the Trust has conb'nued lo put in place measures to prepare for what will be a turbulent year for many. As ever, the Trust's focus is on making a pcsibve impact during ongoing Un￿rtaInty and hardship. especially as the energy crisis and rising costs make it so hard for many people to make ends meet. During the year, the Trust continued lo make grants for communty purposes, individual, educational and personal needs. and for school clothing. In 2022 Trustees awarded £1,083.000 in grants (2021.. £1,092,000). Page 6 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Review of activltles and achievements (continued) A full list of grants made by the Trust is included in its Annual Review, available on the Trust's website www.suttoncoldfieldcharilabletrust.com or from the registe￿d address. A summary of the grants awarded by the Trust for community and individual purposes during the year can be found below.. 2022 £000 224 258 59 103 226 53 140 20 2021 £000 133 364 77 266 Relief of those in need Advancement of education Advancement of religion Advancement of health or the saving of lives Advancement of citizenship or communty development Advancement of the art5, cUttU￿, heritage and science Advancement of amateur sp)rt Advancement of environmentsl protection or improvement 130 58 Total grants awarded Awarded grants unclaimed or cancelled 1,083 11271 1,093 1152) Net grants awarded (note 7 to the financial statements) 956 941 As awards have remained al thi8 level over the past 10 years, Trustees were Con￿rned to ensure that the Trust budgeted for at gmnts totalling £1,000,DOO. This resulted in a cash deficit budget in 2021122. which was funded from unrestricted reserves. The Trust has worked with other agencies to improve the Trust's impact and extend our ability to meet growing need. For example, some Almshouse residents have learned to use digital communication and IT devices through Age UK'S digital inclusion project As reported previously, the Trust commissioned a university research team {originally from the University of Bimiingham. now novated to the University of Nottinghaml to review the social needs aGr05s Sutton Coldfield {Ihe °Social Needs Revie￿1. Over 600 Sutton Coldfield residents Pa￿'e1PaleJ. The Trust's Chief Executive has shared pre-launch findings of the research with stakeholders in the NHS and Town Council. so that the results may infomi local health and wellbeing plans. The final reFJOrt will be published in 2023. The Trust has conbnued to maintain, improve and modemise its Almshouse accommodation. In 2021122 the Trust completed the refurbishment of kitchens and bathrooms of 24 Almshouses, with the furbishment of the remaining Almshouse5 already underway for eomplelion in 2023. Trustees consider that social isolation is hugely detrimental to the mental health of older people. Regular Almshouse social activities are held throughout the year and this year the residents also celebrated the Queen's Platinum Jubilee with a Special lunch. Alongside adversity, the past year has also been one of celebration. Trustees and stsff joined teachers and pupils of Little Sutton School. the local police cadets, and the Chair of Sutton in Bloom, to plant a yew tree in the centre of Manorial Woods, to celebrate the Queen's 70th Jubilee. Trustee annual visits to grant beneficiaries took place in October 2022. This was an opportunity for Trustees to see at first hand, the diverse impact grants are making such as the improvement of g￿en spaces,. access to sports.. extending welfare guidan￿ and adviGe,' suslaining food banks,. upgrading early years play facilities: and addressing loneline$5. Page 7 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Rèview of actlvltles and aehigvements (conlinued) Following the sad death of Her Majesty Queen Elizabeth 11, it was an honour for SCCT Trustee, Councillor Jane Mosson in her role as Deputy Mayor of Sutton Coldfield, io read the proclamation of the accession of King Charle$111, at Holy Trinity SC. Cllr Mosson was joined al the dais by R8vd Canon John Routh, Rector of Holy Trinity Sutton Coldfield and Trustee of SCCT. The Trustees would like to thank Malcolm Cornish, who stepped down after long Servi￿ on the Board of Trustees and to welcome new Trustee, Councillor David Pears who was nominated to the Board by Birmingham City Courlcil in August 2022. This year also saw the departure of Ranjan Hoath and Amafjil Singh from the Board and Trustees would like lo thank them for their service and support to the Trust. They also thank the Chief Executive and all staff for their hard work and achievements during such a challenging year. Following almost five years. serviGe as the Trust's Grants Manager, the Trustees wish David Cole a long and happy retirement and welcome his successor. Clare Haines. Monltoring achlevemenl Payment of grants is carefully managed and the Trust operates a robust forrnal monitoring process. The Trust maintains close contact with organisab'ons lo ensure that the anlicipaled benefits from the grant have been achieved. For example, has the purchase of a minibus been effective in transporting the elderly to events or $¢out groups to camp? Has investment in supporbng children wrth auts'sm met the needs of both children and parents? Has investment in the local primary school outdoor education facilities provided benefit to the school? A formal monitoring pr(xess is also in place. Dependent on the value of the award, this is achieved by completion of a Monitoring Fomi al the conclusion of the Proje¢L Where necessary, further interim reports are produced. Trust officers also evaluate impaGI through meetings, telephone discussions and visits to grant beneficiaries. Grants Committee receive regular monitoring reports on larger projects. In-person visits to beneficiaries recommenced this year following the COVID-19 Lockdowns. However, a number of other monitoring methods remained in place for overseeing projects i.e. online video meetings, virtual tours and photographs that show progress and completion of projecls. A review wa5 undertaken in the year lo enable the grants programme lo evolve in line with the outcomes identified in the recent Social Needs Review. Forward planning is undernay for the next five years. Financial revlew The year under review saw a marked improvement in the Trusys operating income as the COVID-19 pandemic subsided, resutting in fewer void properties and higher rental income and investment income. Total income in the last year was £2,344,000 (2021.. £1,756,OOOJ and total expenditure was £1,916,000 (2021.- 2,237,000) including granls (net of cancelled grants) of £956.000 (2021.. £94t,000) This resultsd in net income of £428,000 (2021.. net 8xpenditure £481.OOOJ. The Trust spent over £450,000 in capital expenditure on the first of phases of new kitchens and bathrooms for our Almshouses. The second phase is underway and is due for completion in 2022123. The Trust's work is dependent on income and investmenl returns from its endowment. Th8 past year saw a decrease in non-propety investh)enl asset values due to challenging world market conditions. The Trust reported a loss on investment assets of £3,197,000 (2021.. gain of £11.016.000), which in bjrn gave rise to an overall net decrease in the tolal fund$ of the Trust of £2.769,000 (2021.. increase of £10,535,000). At 30 September 2022, totsl Trust Funds amounted lo £72,081,000 (2021.. £74, 850,000). In the year the Trust sold its site at Brockhurst fam) as part of the Lan95ey Sustainable Urban Extension {Langley SUE). Poge 8 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Finan¢ial roviow l¢ontinu¢d) Following a detailed review the Trust changed its acGounting policy to include all the Almshouse built estate within the Pemianent Endowment fund as 'funclional permanent endowment, rather than within the Unreslricled Charitable Fund. This has no impact on the total assets of the TrusL bul changes the allocation be￿een funds. Details of this accounting poli¢y change and its impact on the financial statements are set out in note 2110 the accounts. Continuing with carefvl financial management and disciplines, combined with appropriate support from the Trusys 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 a￿ 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 Twsl's investment objectives are lo generate an a￿pIable level of income to facilitate grant giving and maintenance of the Almshouses, whilst also seeking to preserve capitsl 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 propety 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 lo meet current and future ¢haritsble objeth.ves whilst seeking preservats.on of Capital in real terms. The restricted and unrestricted funds may be invested in any type of investment except direct investrnents in tobacco. The major part of the Trust's investment portfolio ha5 been rnanaged over a number of years by Rathbone Investment Management Limited. A smaller portfolio Ithe Charitable Funds} has been invested in the CCLA COIF Charities Investment Fund Since April 2021. During the last ￿e1ve months, global investment markets have fallen due lo concerns about surging inflabon, rising interest rates and slowing economic growth, particularly in the Context of Russia's invasion of Ukraine in February 2022. The Trustees are supported by Stsnhope Con$ulting, the appointed investment advisers, in their assessment and monitoring of the investment managers. According to Slanhope's calculations. the total investment portfolio generated retums of -8.4°h over the year to 301h September 2022. reflecting the weakness in bond and equity marf(ets over the period. Given the surge in UK inflation over the year, the portft)lio ￿tUrn has heavily lagged the long term objectNe of CPI +4Vo which returned 14.5Vo over the same period. The main Ralhbones portfolio generated a negative return of -9.2% Inet of fees) in the year to September 2022 compared to the CPI +4% benchmark return of 14.50h12021.' 17.2¥0 vs 7.3%). The Charitable Funds portfolio Iwhich is invested in the CCLA COIF Charities Investment Fund) generated a negative return of -2.8% Inel of fees) over the year but outperformed the COIF Fund's composite benchmark relum of -5.5%. The Trustees have reduced manager specific risk by having two managers who have different investment approaches and are aware that the increase in inflation has distorted the long term objective in the short term. Reserves pollcy and going con¢em The Endowment Fund represents capital funds which the Trustees have no power to convert into income. At 30 September 2022, this fvjnd amounted to £63,714,000 12021.. £66,644.000 re-stated) The income generated from this fund is utilised to fvrther the Trust's chantable objectives and is included as unrestricted income. The Trustees periodically review the level of reserves ￿taIned in un￿str￿ted funds. The Trustees tain these reserves to the extent considered necessary to ensure that adequate funds are available lo cover future expenditure items, which may not otherwise be ¢overed by incoming resources. During the year, Trustees have reviewed the level of these reserves and ¢onsider that they shoukl not, other than in exceptional circumstances. drop below £750,00012021." £750,000), which would be regarded as a contingency reserve to meet ongoing revenue commitments. Page 9 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Regerves policy •nd going concern Iconlinuodl The Trustees are mindful that inveslmenl income, wh￿h is the Trusys main source of incorne. is suscepts'ble to variation through market changes. Trustees therefore wnsider it appropriate to hold free funds to meet both the Trusys ¢ommilment to oulstsnding grants, which can be over £1,000.000 at any one lime and to cover its obligation5 to support the Almshouses, administratson and govemance costs. In addition, Trustee5 hold fre8 funds in anticipation of significant spe¢ial projects for the benefit of the public. The undesignated Charitable Fund at 30 September 2022 amounted lo £7,685.000 (2021.- £4,808, 000 -statedJ, which the Trustees believe is sufficient given the Trust's foreseeable commitments and fund strategic initiatives in future as required. In 2021 the Trust was holding I￿0 unrestricted designated reserves as follows.. Extraordinary Repair Fund (for exlraordinary repair, improvement or re•building}. It is requirement of the Trusfs Scheme to maintain this reserve. Cyclical Maintenance Fund (for ordinary repair and maintenance of the Almshouses and other property of the charity). This is an optional reserve under the Trust's Scheme. Because all Almshouses assets are now within the Endowment Fund (see note 211, the cost of all future enhancement51 capitsl improvements will also be within the Endowment Fund. The Trustees therefore agreed that the Extraordinary Repair fund shoukl be used for future planned maintenance and should at least cover the estimated value of the Amshouse planned maintenance programme for the next 5 years (including Irr￿)verable VAT and inflation). Trustees will review this annually and adjust the reserve as appropriate. The Extraordinary Repair Fund al 30 September 2022 amounted lo £640,000 which represents estimated planned mainlenance cosls for the next five years, 12021.. £3.109,000- including rebuildl capital costs, which will now be met from within the Endowment Fund}. The Cyclical Maintenance Fund is an optional reserve in accordance wth the Scheme clause 261211. This is no longer necessary and Trustees have decided to merge it into the Extraordinary Repair Fund. In 2021 the balance was £289,000. In 2022 Trustees established a new unrestrthd designated Environment Management Fund. of £42,00012021.' £nill to be used for maintaining the Trusys rural and woodland eslale. Tnjstees have a rolling fwe-year financial plan. Based on this plan, Trustees ￿VIeW the reserves to ensure appropriate amounts are set aside. Based on this work. the Trustees consider thal the￿ are no material uncertainties about the Trust's ability to continue as a going con￿rn. Future plans and objectives The Soaal Needs Review of Sutton Coldfield has continued lo guide the Trust's long-term strategic decisKins and plans. The Trust has published a summary of the Review and has held dissemination in the past year. The full report will be published in 2023. Based on the emergin9 Outcomes of the Social Needs Review and the prospect of financial returns from land sales within the Langley Sustainable Urban Extension area, the Trust has produced its new SCCT Five Year Plan I'Looking forward to 2028"}, with an updated vision, rnission and values (see above). The Fwe-year Plan sets out the Trust's 5 strategic aims to set the direction for the planning period.. 1. Almshouses research and a55essrnent of future need., 2. Grants programme expansion.. 3. Supporting heritage, green spaces and community., 4. Being well run, efficient, ac￿Ssible and inclusive., 5. Good managemenl of assets and their use. Page 10 Sutton Coldfield Charitable Trust TRUSTEES, REPORT (continued) for the year ended 30 September 2022 Future plans and objectives leontlnuedl SCCT staff and Trustees will now work through the 5 strategic aims to fomi long-lerm delivery plans that maintain longewty of the Trust and enhance its support for residents of Sutton Coldfield. The Trustees have approved a budget for the current finanaal year, 2022123, and plan to award grants at a similar or increased level lo previous years goin9 fomard. Audltor Sayer Vincent LLP was re-appointed as the Trusfs auditor during the year and has indicated its willingness to continue in that capacity. On behalf of the board Keith Dudley Chair 8 February 2023 Page 11 Sutton Coldfield Charitable Trust TRUSTEES. RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS The Trustees are ￿spOnSible for preparing the Trustee5' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accountsng Practice). The law applicable to charities in England and Wales requires the Trustees lo 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 foltow besl Practi￿ and.. select surtable accounting policies and then apply them consistently- observe tho methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards and ststements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial ststements., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any b'me the financial position of the Trust and enable them tu ensure that the financial statements comply wtth 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 a￿ 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 ststements rnay diff8r from legislation in other jurisdi¢tions. Page 12 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 Ithe'charity'l for the year ended 30 September 2022 which comprise the statement of financial activities, balance shee( statement of cash flows and notes to the financial stslements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United ngdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial ststements.. Give a true and fair view of the stste of the eharity's affairs as al 30 September 2022 and of its incoming resources and application of resources, for the year then ended Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice Have been prepared in accordance with the requirements of the Charities Aot 2011. Bas15 for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI {1ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial ststements 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 ethi¢al 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 concem In auditing the financial statements, we have concluded that the trustees, use ofthe going concem basis of accounting in the preparation of the financial statements is appropriate. 8ased on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significanl doubt on Sutton Coldfield Charitable TnJsl's ability to eontinue as a going coneem for a period of at least ￿1Ve months from when the financial ststemenls are authorised for i$5ue. Our responsibilities and the reswnsibilib'es of the trustees with respect to going concem are described in the relevant sections of this report. other informatlon The other information comprises the information included in the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise expli¢itly staled in our report, we do not express any form of assurance ¢on¢lusion Ihereon. Our responsibility is to read the other information and, in doing 50, ¢onsider whether the other information is materially inconsistent with the finanGial statements or our knowwge obtained in the course of the audit or otherwise appears to be materially mi55tsted. If we identify such material inconsisiencies or apparent material misstatements, we are required to determine whether this gives rise to a material rni5Statemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this regard. Page 13 Sutton Coldfield Charitable Trust INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF su￿ON COLDFIELD CHARITABLE TRUST (continued) Mattors on whlch we are required to report by exceptlon We have nothing to report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. The infomation gnien in the trustees, annual report is inconsislenl in any material re$pectwith the financial Statements., Sufficient accounting records have not been kept,. or The financial statements are not in agreement with the accounting records and returns,. or We have not received all the information and expLqnations we require for our audit. Responslblliiie$ of trustees As explained more fully in the stalement of Irustee$' responsibilities set out in the trustees, reF>Ort, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control a5 the Iru5tees delermine is necessary to enable the preparation of financial ststements that are free from material mis5tstement, whether due to fraud or error. In preparing the financial statements, the twslees are responsible for assessing the Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or to cease operations, or have no realistic altemative bul to do so. Auditor's re8ponslblllties for the audft of the flnanclal statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objects'ves are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to ISSU8 an auditorfs report that includes our opinion. Reasonable assurance 1$ a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstalemenl when il exists. Misslatemenls can arise from fraud or error and a￿ considered material if, individually or in the aggregate. they could reasonably be expected to influence the e¢onomi¢ decisions of users taken on the basis of these financial ststements. Irregularrf(ies, including fraud, are instances of non