## **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).
2
## **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.
3
## **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:
- Select suitable accounting policies and then apply them consistently,
- Make judgments and estimates that are reasonable and prudent,
- Follow applicable accounting standards and the Charities SORP, explaining and disclosing any departures in the financial statements and;
- 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.
4
## **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.
6
## **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
7
## **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**
- Examine the accounts under Section 145 of the Charities Act.
- 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.
- 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:
1. which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 130 of the Charities Act and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act,
- have not been met; or
2. 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
8
## **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
9
## **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
10
## **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.
11
## **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.
12
**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|
13
## **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|
|---|---|---|---|---|
14
## **THE CRAIG CHARITY FOR CHILDREN**
**----- Start of picture text -----**
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
**----- End of picture text -----**
## **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|
|---|---|---|
15