THE CRAIG CHARITY FOR CHILDREN
LILY CROFT HEATON ROAD BRADFORD BD8 8QY
Trustees’ Annual Report & Financial Statements For the year ended 31 December 2020
Registered Charity No. 221575
THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
Legal, Administrative & Governance Information
The Craig Charity for Children is a Registered Charity and is administered in accordance with a Charity Commission Scheme dated 8[th] June 1998. The Charity is under the control of a committee of voluntary Trustees who are appointed at each Annual General Meeting. The day to day administration of the Charity is carried out by the Secretary.
Registered Office 44 Lily Croft, Heaton Road, Bradford, BD88QY Telephone 01274 543022 Registered Charity No 221575
| Committee | of Trustees |
|---|---|
| Dr E Senior (Chairman) | Mrs J Carter |
| Mr J Watson | Miss BY Craig |
| Mr CWD Sutcliffe, OBE DL | Miss I Templeton |
| (Vice Chairman) | |
| Trust Administrator | Mr DD Broughton |
| Investment Sub-Committee | Mr CWD Sutcliffe |
| Mr DD Broughton | |
| Bankers | Barclays Bank PLC |
| Investment Manager | Investec Wealth & Investment Limited |
| Independent Examiner | Whitesides Chartered Accountants |
Objectives and Activities
The purpose of the Charity is to provide or assist other organisations in the provision of facilities for children in need, primarily in the area of Bradford. Grants are provided in the interests of social welfare providing recreational trips, horse riding, swimming, holidays or other leisure-time occupation of children and adults resident in the City of Bradford and elsewhere. Those in need of such facilities by reason of their poverty or social and economic circumstances were assisted with the purpose of improving their conditions of life also gaining skills which in future may benefit the public through work or voluntary aid to the wider society. During the year twenty organisations submitted requests for assistance with funding. Bequests were made to these organisations and as a result hundreds of children and young adults from the Bradford area benefitted from the charity’s activities.
The trustees have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission (relating to public benefit).
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THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
Grant Making Policy
The trustees meet twice each year to consider requests for funding from groups and individuals in accordance with the objects of the charity. Organisations are informed of the dates of the trustees’ meetings and invited to submit their applications for consideration. Applications are rejected if they do not comply with the charity’s objects and it is sometimes necessary to scale back grants in order to make equitable grant making decisions within the bounds of available funds.
Achievements and Performance
The amount of funds available for distribution is dependent upon investment performance and varies from year to year. The charity made grants totalling £12,749 (2019: £23,755) during this year (see chairman’s report page 6). The grants enabled children who, by reason of poverty, social or economic circumstances would otherwise not have the opportunity to enjoy such activities, thereby improving their quality of life. This year the charity has contributed towards activities arranged for disadvantaged local children including days out, trips to the pantomime, and attending holiday clubs and sports groups. The charity has continued to support organisations who work with disabled children and young adults including Riding for the Disabled and Safe Anchor Trust. The charity has also contributed towards the cost of a family holiday for a number of families with disadvantaged children, making a real difference to their lives. We have been able to continue this support despite the difficulties faced with regard to Covid-19.
Plans for the Future
For the foreseeable future the plan is to continue our investment management in conjunction with the investment managers in order to provide a consistent income for grant making purposes and investment gains to protect reserves from the effects of inflation as far as possible.
Appointment & Induction of Trustees
The body of trustees consists of a maximum of 10 nominated members and up to 2 can be appointed by the organisation Sovereign Health Care who serve for a term of one year expiring after the Annual General Meeting. Any competent Trustee may be reappointed. Induction and training is achieved by meetings and discussions with trustees and by the provision of appropriate documentation.
Risk Review
The trustees examine the operational risks faced by the charity on a regular basis and confirm that procedures are in place to help minimize those risks.
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THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
Accounting and reporting responsibilities
Charity law requires that the trustees prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the year end and of its incoming resources and resources expended during that year. In preparing those financial statements the trustees are required to:
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Select suitable accounting policies and then apply them consistently,
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Make judgments and estimates that are reasonable and prudent,
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Follow applicable accounting standards and the Charities SORP, explaining and disclosing any departures in the financial statements and;
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Prepare financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue on that basis.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the relevant legislation. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Financial Review
During the year, the total income received amounted to £104,683 (2019: £27,628), £22,433 of which was from investment income. The trustees are thankful for the receipt of the legacy of Mrs Jean Leyland Whitehead of £82,000 during this financial period, which will provide a lasting benefit to the children of Bradford. The total bequests made to various causes was £12,749 (2019: £23,755). Reserves increased from £957,147 at the start of the year to £1,021,317 at the year end. due mainly to the legacy received. If the legacy had not been received during the year, reserves would have decreased by £17,830 due mainly to the decrease in the market value of the investments over the year.
Covid-19 has had a modest effect on the portfolio value and a significant detrimental effect on investment income, with income down approximately 20% compared to expectations at the start of the financial period. However the charity is extremely lucky to have been bequested a significant sum from estate of Mrs Jean Leyland Whitehead. Additionally, the grants given by the charity are discretionary and therefore the trustees continue to consider the charity a going concern.
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THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
Reserves Policy
The unrestricted General fund of £926,856 (2019: £862,809) consists of unexpended income plus the proceeds from the sale of the former Craig Home for Children. The Permanent Endowment fund of £94,461 (2019: £94,338) consists of legacies or bequests received in earlier years. These funds are invested to provide the principal source of income out of which the trustees are able make bequests in accordance with the objects of the charity. Capitals gains and losses are generally retained within the reserves to provide some degree of protection from inflation; thereby ensuring as far as possible that the work of the charity can continue without accumulating unnecessary cash reserves.
Investment policy
Investment strategy is set by the trustees and monitored on a regular basis by the committee in conjunction with the investment manager. Consideration is given to income requirements, capital growth, risk and the investment adviser’s view of the market prospects in the medium to long term.
Related Party Transactions
There are no related party transactions
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THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
Chairman's report
The Committee met twice during the year to consider appropriate requests for funding and a total of £12,749 was granted in bequests as follows:
| Bequests made during the year Bradford Sea Cadets Carrwood Primary Children's Charity Circle Dream Holiday Children with CF Lister Primary School Live Music Now! Miriam Lord Community Primary School Riding for the Disabled Rotary Club Bradford Blaize Safe Anchor Trust Victoria Primary School Zephaniah Trust Total |
£ 1,000 500 1,500 1,580 500 900 1,000 2,479 940 1,500 250 600 |
|---|---|
| 12,749 |
Investment income was down on the previous year, and the level of bequests made was lower. There has been a slight decrease in the value of our investments since the Covid-19 outbreak but investments are now recovering again which still leaves us in a good position from which to tackle the challenges of 2021.
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THE CRAIG CHARITY FOR CHILDREN Report of the Trustees for the year ending 31[st] December 2020
I would like to take this opportunity to express my sincere thanks to the Committee for the help they give and the interest they show in this charity and to our Trust Administrator for the excellent work done by him.
Dr E Senior (Chairman)
14[th] April 2021
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THE CRAIG CHARITY FOR CHILDREN Independent Examiner’s Report to the trustees of the Craig Charity for Children
I report on the accounts of the Trust for the year ended 31[st] December 2020 which are set out on pages 9 to 15.
Respective responsibilities of Trustees and Examiner
The Charity’s Trustees are responsible for the preparation of accounts. The Charity’s Trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is appropriate.
It is my responsibility to
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Examine the accounts under Section 145 of the Charities Act.
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To follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the Charities Act, and.
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To state whether particular matters have come to my attention.
Basis of Independent Examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts represent a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent Examiner’s statement
In connection with my examination, no material matters have come to my attention:
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which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with Section 130 of the Charities Act and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act,
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have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Sarah Greenwood Chartered Accountant (Regulated by the ICAEW)
Whitesides, Lister House, Lister Hill, Horsforth, Leeds LS18 5AZ 14[th] April 2021
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THE CRAIG CHARITY FOR CHILDREN
Statement of Financial Activities
For the year ended 31[st] December 2020
| Note Income and endowments from: Charitable activities Donations and legacies Investments 2 Total Income Expenditure on: Raising funds Investment management Charitable activities Grants to beneficiaries 3 Office & administration 4 Total expenditure Net gains on investments Net income / (expenditure) Other recognised gains / (losses) On revaluation of fixed assets 7 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricte d General Fund £ 250 82,000 22,433 104,683 4,620 12,749 3,331 20,720 222 84,185 (20,138 ) 64,047 862,809 926,856 |
Permanent Endowmen t Fund £ - - - - 357 - - 357 - (357) 480 123 94,338 94,461 |
Total Funds 2020 £ 250 82,000 22,433 104,683 4,997 12,749 3,331 21,077 222 83,828 (19,658 ) 64,170 957,147 **1,021,317 ** |
Total Funds 2019 £ - - 27,628 27,628 5,248 23,755 3,307 32,310 1,137 ( 3,545 ) (108,481 ) (104,936 ) 852,211 957,147 |
|---|---|---|---|---|
The notes form part of these financial statements
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THE CRAIG CHARITY FOR CHILDREN
Balance Sheet
| As at 31st December 2020 Note Unrestricted General Fund Permanent Endowment Fund Fixed Assets £ £ Investments 7 Fixed interest investments 163,207 24,085 Other investments 647,310 45,941 Cash held as investments - 1,102 Total Fixed Assets 810,517 71,128 Current Assets Cash on deposit 19,578 23,333 Cash at bank 98,065 - Total Current Assets 117,643 23,333 Creditors Due within one year 8 (1,304 ) - Net Current Assets 116,339 23,333 Total Net Assets 926,856 94,461 The Funds of the Charity: Unrestricted Income Fund Permanent Endowment Fund Balances brought forward 862,809 94,338 Net movement in funds 64,047 123 Total Funds 826,856 94,461 |
Total Funds 2020 £ 187,292 693,251 1,102 881,645 42,911 98,065 140,976 ( 1,304) 51,058 1,012,317 Total Funds 2020 957,147 64,170 **1,021,317 ** |
Total Funds 2019 £ 191,429 713,549 1,111 906,089 42,798 9,550 52,348 (1,290) 51,058 957,145 Total Funds 2019 922,295 70,084 957,145 |
|---|---|---|
The Trustees’ Report and the Financial Statements were approved by the committee on Wednesday 14 April 2021.
Dr E Senior - Chairman DD Broughton - Trust Administrator
The notes form part of these financial statements
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THE CRAIG CHARITY FOR CHILDREN
Notes to the financial statements
1. Accounting policies
The financial statements of the charity, which is a public benefit entity, have been prepared in accordance with the Charities Statement of Recommended Practice FRS102 (SORP FRS 102) 'Accounting and Reporting by Charities,’ Financial Reporting Standard 102 (FRS 102), the Charities Act 2011 and other charity law applicable in England and Wales.
Accounting convention
The financial statements are prepared on the accruals basis, under the historical cost convention, except investments which are shown at market value.
Going concern
There are no material uncertainties concerning the charity’s ability to continue as a going concern.
General Fund
This fund represents the unrestricted funds of the charity which the trustees are free to use in accordance with the objects of the Charity.
Permanent Endowment Fund
This restricted fund represents the Permanent Endowment of the Charity which must be held permanently and invested to provide income which in turn may be used in accordance with the objects of the Charity.
Support costs
The charity has two main activities: grant making and investing assets in order to provide the charity with income. Investment costs are attributed in their entirety to raising funds on the SOFA. Other support costs such as rent, administration and governance costs are attributed entirely to charitable activities. See the note below for further details.
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THE CRAIG CHARITY FOR CHILDREN
Notes to the financial statements
Departure from the SORP (FRS 102) – Support costs
A true and fair override has been used to apply the Charities SORP (FRS 102) under the Charities (Accounts and Reports) Regulations 2008.
Support costs are not allocated to separate charitable activities, but instead are disclosed in total, separately on the face of the SOFA. It is more useful to the users of these Financial Statements to show the costs separately, such that the cost of each grant making activity disclosed for each activity on the SOFA reflects the cost of the grants given. To follow the recommendations of the SORP (FRS 102) would require showing totals for the charitable activities with the governance costs allocated between them and included. These figures would not match the sums granted in the year, which is expected by the users of the financial statements. The trustees therefore consider that this departure from the SORP (FRS 102) allows the financial statements to give a true and fair view. The SORP (FRS 102) requires disclosure of the allocation of support costs to activities. The support costs are not being allocated to activities, and the other information that would have been contained in this disclosure is shown on the face of the SOFA, so this disclosure has not been provided. There is no financial effect of this departure. The total charitable expenditure remains the same as that which would be disclosed following the SORP (FRS 102).
Income
UK investment income : Income from investments is credited to the Unrestricted General Fund when received and consists of interest, dividends and transitional relief. Subscriptions and donations : These are credited to revenue when received and used at the trustees’ discretion.
Legacies : These are credited to Permanent Endowment or Revenue (according to the terms of the gift) when received.
Expenditure
Expenditure is accounted for on an accruals basis and includes value added tax.
Investments
All investments are valued at market value at the balance sheet date. Changes in value in the year are reported in the Statement of Financial Activities. Historical costs are disclosed separately by way of a note. Realised gains/losses are calculated as the difference between sales proceeds and the market value at the beginning of the period of account. Unrealised gains / losses represent the annual movement in portfolio values during the year.
Prepayments and accrued income
Prepayments are recognised when the associated payment has been made, until the associated goods or services have been received.
Accrued income is recognised as the charity becomes entitled to it and is measured at fair value.
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THE CRAIG CHARITY FOR CHILDREN Notes to the financial statements
Cash at bank and in hand
Cash at bank and in hand includes cash held only.
Creditors and provisions for liabilities
Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.
2. Investment income
| 2. Investment income | ||||
|---|---|---|---|---|
| Fixed interest Equity and other investments Bank interest 3. Grant making activities Grants to institutions |
2020 £ 6,953 15,368 **113 ** |
2019 £ 6,774 20,612 242 27,628 2019 £ 23,755 |
||
| **22,434 ** | ||||
| 2020 £ 12,499 12,499 |
||||
| 23,755 |
All grants are given to charitable institutions with a focus on those charities in Bradford and the surrounding area which give benefit to children in need. The full list of the institutions to which grants have been made is disclosed in the Trustees’ Annual Report under the heading ‘Chairman’s Report’.
4. Governance costs
Governance costs are included on the face of the Statement of Financial Activities under the heading ‘Charitable activities.’ They form part of office and administration costs as follows:
| Independent Examiner’s fee Rent Administration fees Office and administration |
Management costs - 400 2,067 2,467 |
Governance costs 864 - - 864 |
2020 £ 864 400 2,067 **3,331 ** |
2019 £ 840 400 2,067 |
|---|---|---|---|---|
| 3,307 |
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THE CRAIG CHARITY FOR CHILDREN
Notes to the financial statements
Independent examiner’s fees are entirely for external scrutiny and no other services are provided by the independent examiner.
5. Staff costs
There were no staff costs during the reporting period (2019: £nil) as there were no employees in the current or previous financial period.
Note that the administrator is not employed by the Craig Charity for Children and administration costs are shown as administration fees (see note 4).
6. Trustees’ remuneration
None of the trustees received any remuneration, expenses or benefits payments from the Charity in the current and previous financial periods.
7. Investments
| Market value 01/01/2020 Disposals Purchases Revaluation gains/(losses) Market value as at 31/12/2020 Historical cost Investments comprise: Fixed interest Listed investments Other investments Listed investments Cash held as investments Cash Total |
General Fund £ 835,432 (4,778 ) - 98,863 929,517 578,723 167,395 668,034 - 835,429 |
Permanent Endowment £ 70,657 - - 9,617 70,657 56,617 24,034 45,515 1,102 70,660 |
Total 2020 £ 906,089 ( 27,851) 25,154 108,480 906,089 635,340 191,429 713,549 1,102 **906,089 ** |
Total 2019 £ 800,306 ( 27,851 ) 25,154 (108,480 ) 906,089 640,330 191,429 713,549 1,111 906,089 |
|---|---|---|---|---|
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THE CRAIG CHARITY FOR CHILDREN
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7% Alternative
6% UK Assets
6% UK Fixed
Property
Interest
4% Far East 15% Overseas
Equity Fixed Interest
4% Japanese
Equity
15% North
American
Equity
9% European 34% UK Equity
Equity
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ANALYSIS OF INVESTMENTS
| 8. Creditors Amounts falling due within one year Accruals and deferred income |
2020 £ 1,304 **1,304 ** |
2019 £ 1,290 1,290 |
|---|---|---|
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