ANNUAL REPORT FINANCIAL YEAR 2022 — 2023
JOHN WILLIAM CHAPMAN EARLESMERE CHARITABLE TRUST
CHARITY NUMBER 223002
TRUSTEES:
Mr Mark John Hunter
Lady Neill DL
Mr Michael George Gornall
Mr David Geoffrey Kirk
Trustee/Chairman
Trustee
Trustee
Trustee
ADVISORS:
Mrs Rosemarie Sharp
Brewin Dolphin
WH Prior & Co.
Virgin Money
Grice & Hunter
Northwood(Doncaster ) Ltd
ADMINISTRATIVE OFFICES:
Solicitor
Financial Advisers
Accountants
Bankers
Property Advisers
Property Advisers
:
4 Priory Place, Doncaster, DN1 1BP
JOHN WILLIAM CHAPMAN EARLESMERE TRUST
Charity Number: 223002
Governed by a scheme made on the 17% October 2000
OBJECTS:
The objects of the Charity are for the relief of persons resident in the Borough of Doncaster who are in need, hardship or distress.
The Trustees may fulfil their objectives by:
- a. Making grants to persons in need;
b. Providing or paying for goods, services or facilities for persons in need; and c. Making grants of money to other persons and bodies to provide goods, services or facilities to those in need.
ADMINISTRATION:
The Trust currently operates with four appointed Trustees and a Chairperson is elected from that body, full meetings of the Trustees are held quarterlyat which time the general business and administration of the Trust is discussed. Distribution meetings which are attended by no less than two Trustees together with the Trust Visitor are held bi-monthly to deal with individual applications along with an additional provision for emergency applications.
The Trustees are elected by the members of the Charity Board with appointments and reappointments being decided on an annual basis.
The Trustees have the power to appoint New Trustees on an interim basis until the next AGM.
CHAIRPERSONS REPORT
Financial year 2022-2023
We approach the end of yet another year of uncertainty bringing with it a realisation that for the foreseeable future we all face a difficult economic climate driven by forces around the world alongside the domestic difficulties faced by the country and we have all during this year appreciated that this has a significant impact on almost every person but especially within our remit on the members of our community in need.
Rising inflation across the world driven by a plethora of factors ranging from the impact of covid, war impacting on energy supplies and the movement of goods, shortages of materials , unrest in the east and political impact of various policies and agendas in those countries closely aligned to us has had a significant impact and like many charities we have suffered a downturn in the capital and income of the funds that we use to support the community and the Trust assets which produce that income. Property portfolios have stagnated or fallen in value and financial investments have performed poorly. Encouragement came as interest rates rose to combat inflation with income paying stocks such as equities fairing a little better as we approach the year end. The overall impact has been to depress the availability of funds that are available during this year.
The property portfolio has not suffered quite as badly generally holding its values locally. However, the income pot is under pressure not only for the income required by our applicants but from the demands raised by the backlog of repairs which have been building during the covid period. Our year started with a change of property agents as a result of a change of ownership and while we initially viewed this with trepidation, we have subsequently been able to report a smooth handover and have been impressed to date by the efficiency of the property team now dealing with our portfolio. The freedom from Covid brought with it a renewed energy in the residential rental market. However, while that regeneration brought an increase in the rental incomes it also brought with it a demand for overdue repairs and improvements to the properties, many of which have had to be addressed in this financial year at a cost of £36,511. Hopefully the works that have been completed especially on the two Bentley properties and Chapman House will result in an overall benefit to the property portfolio going forward.
The Trustees have not been thwarted by the pressures brought on them and they have during the year actively sought solutions to the problems that have arisen so that they can continue to meet the needs of the community. As applications from individuals have grown, they have given a great deal of consideration to the nature of the help requested. It was noticeable that the trend which started in the previous year had continued and there were no longer a significant number of applications from single applicants under the age of 25 seeking clothing grants which in previous years accounted for a substantial percentage of the demand on the Trust funds. With the rise in inflation and shortages in the supply chains it is clear that families and the older community are now struggling to fund larger items such as beds, washers, cookers and most significantly carpets. The prediction in my last report that the cost of such items would rise significantly and in some cases such as carpets and white goods by up to 20% has proved to be the case. The Trustees have particularly found themselves overwhelmed by the demand for carpets from almost every applicant to the Trust and this has been a source of exasperation as the Trustees repeatedly find themselves
:
being asked to provide carpeting where the landlords of properties particularly in local authority and social housing have ripped out serviceable carpeting quite simply because of a change of tenant on the grounds of hygiene. Local appeals to cease this practice have to date fallen on deaf ears and it seems that this borough is not the only one suffering such a blatant waste of resources as similar reports are emerging around the country.
The Trustees have reacted to the increased demand along with escalating prices in a measured way and changes have been made to the policies followed by the Trustees in granting awards.
In particular
-
1} The Trustees will no longer provide hall, stair and landing carpets.
-
2) The Trustees will prioritise carpet grants for applicants who have children under the age of 5 or where there are medical or other meritorious grounds that specifically justify the granting of carpets.
-
3) The Trustees may decline applications where in their opinion the applicant has sufficient income to meet their own needs or where the applicant is of an age and has capacity on face value to work.
The Trustees hope that this change in policy will allow them to continue to meet the most urgent needs of the community within the availability of the Trust funds.
The Trustees are very aware that they are not the only local Charity to suffer a downturn in the availability of funds and in the past the Trustees have endeavoured to provide grants to other local charities with similar objectives. While the Trustees would still wish to provide that benefit they have as part of the current strategy, resolved that priority must be given to individual applicants who are in need in order to fulfil the Trust objectives.
The Trustees are fortunate in that they have a strong organisational base provided by Jordans Solicitors who have continued to provide an office presence throughout giving members of the community who are seeking help from the Trust a point of contact and access to the administration staff and Trust visitor who play an important role in our distribution of funds. The Trust visitor is vital in aiding the Trustees to make the right decision when reviewing applications and ensuring the help available goes to the neediest.
Notwithstanding all of the concerns that have faced the Trustees this year and the future market predictions we have remained confident having consulted with our financial advisors Brewin Dolphin that there is sufficient optimism in the market place that inflation will start to decrease and the economy will improve over the next 12 months allowing the Trust to maintain levels of income and growth sufficient to meets the demands of the community over the coming 12 months and beyond . Brewin Dolphin reported for this financial year an annual income of £ 40,950 which is under the income pre 2022 . However Brewin Dolphin are predicting an increased growth in 2024 and an income yield of 4.5% which will support the requirements for funding alongside the property portfolio which is fully occupied and is seeing an increase in rental incomes in the residential properties . Overall, this is still under inflation levels but an upward turn which is promising with an increase in rents to £160,725 this from the previous £148,525.
| | )
The commercial rentals again are subject to ongoing review and we have in this period had a number of units where rents have increased with a change of tenant which has been
encouraging, in that it has demonstrated that there is some interest in developing new businesses.
The objects of the Trust despite the difficulties encountered have been fulfilled throughout the year. Applications have increased and as noted there has been a marked change in the help being requested. A total sum of £31,829 was distributed directly in support of individual applicants during the course of this year.
Over and above the individual awards made by the Trust the Trustees have recognised the work of other Charity’s serving Doncaster and particularly Fare Share Yorkshire which has stepped up the provision to food banks and associated services within the community. In response, funding totalling £12,000 was provided to them this year.
In conclusion | and my fellow Trustees are satisfied that we have fulfilled our role in conducting the affairs of the Trust in a diligent manner. The financial affairs of the Trust have been prudently managed throughout the year, ensuring that notwithstanding the difficulties and challenges posed by the domestic and world economies now and as anticipated in the next twelve months, we will as a result of the strategies we have put in place, which we believe to be robust be placed in a position to find sufficient funds to meet the demands made on the Trust.
Mr M J Hunter
Chairman
FINANCIAL REPORT
|
The Trustees of the Charity present their annual and audited statement for the Financial Year ending 31* March 2023.
Trustees Responsibility Statement
The Trustees of the John William Chapman Earlesmere Trust Registered Charity are required to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Charity at the end of the financial year and of movements of funds for that period. The Trustees confirm that suitable accountancy policies have been used throughout in accordance with the statement of recommended practice issued by the Charities Commission. The Trustees are responsible for keeping proper accounting records and for taking responsible steps to safeguard the assets of the Charity in order to prevent and detect fraud or other irregularities and in order to comply with the Charities Act 2011 and Charities SORP 2015, they are also responsible for safeguarding the assets of the Charity
and taking reasonable steps for the prevention and detection of fraud and other irregularities.
RISK
The Trustees have carried out a review of the major risks to which the Charity may be exposed and have adopteda risk strategy plan in respect of these the policy will be subject to further review during the coming twelve months.
The Trustees are satisfied that there are no serious incidents or other matter which they should have brought to the attention of the Commission and has not done so already.
So far as the Trustees are aware there is no relevant audit information of which the Independent Examiners are unaware and each of the Trustees has taken all the steps that he or she ought to have taken as a Trustee in order to make himself aware of any Independent examination information and to establish that the Independent Examiners are aware of that information.
FIXED ASSETS
Any movements in Fixed Assets is reflected in the Accounts.
EVENTS SINCE THE BALANCE SHEET DATE
No events have occurred since the Balance date which have affected the Charity.
TRUSTEES
The Trustees of the Charity who served during the year and up to the date of this Report are set out on page 2 of this Report.
This report has been prepared in accordance with the Statement Recommended Practice Accounting and Reporting by Charities (SORP 2015)
This Report was approved by the Trustees Board on the
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3 { “day of January 2024 and signed by:
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SNa i
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Mr Mark John Hunter
On behalf of the Trustees of the John William Chapman Earlesmere Trust
J.W. CHAPMAN EARLESMERE TRUST (Registered Charity No. 223002)
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
J.W. CHAPMAN EARLESMERE TRUST
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2023
CONTENTS
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Page
Legal and Administrative Details 1
Independent Examiner’s Report 2
Statement of Financial Activities 3
Balance Sheet 4
Notes to the Financial Statements 5 - 8
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Pagel
J.W. CHAPMAN EARLESMERE TRUST
LEGAL AND ADMINISTRATIVE DETAILS
31ST MARCH 2023
Trustees Mr. M.J, Hunter, MRICS Lady Neill, DL. Mr. M.G. Gornall Mr. D.G. Kirk, FCA Correspondent & Clerk to Trustees Mrs. R. Sharp, LL.B. Administrative Offices 4 Priory Place, Doncaster. DNI iBP Charity Registration Number 223002 Governing Instrument Schemes of the Charity Commissioners made on 17" October 2000 & 27" June 2005 Solicitors Jordans Solicitors LLP, 4 Priory Place, Doncaster. DN] 1BP Independent Examiner R.A. Prior, FOCA, FCIE, DChA, W. H. Prior, Chartered Certified Accountants, Railway Court, Doncaster. DN4 5FB Principal Bankers Clydesdale Bank plc t/a Virgin Money , 19 St Sepulchre Gate, Doncaster. DNI 1TD Property Advisors Northwood 17a Sandringham Road, Doncaster. DN2 5HU Investment Advisors Brewin Dolphin Ltd, 34 Lisbon Street, Leeds. LS1 4LX
Page 2
J.W. CHAPMAN EARLESMERE TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE J.W. CHAPMAN EARLESMERE TRUST
I report on the accounts of the Charity for the Year Ended 31* March 2023 which are set out on pages 3 to 8.
This report is made solely to the Charity’s trustees, as a body, in accordance with the regulations made under the Charities Act 2011. My work has been undertaken so that I might state to the Charity’s trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body for this report.
Respective responsibilities of Trustees and Examiner
As the Charity’s Trustees, you are responsible for the preparation of the accounts; you consider that the audit requirement of Section 144(2) of the Charities Act 2011 (the 2011 Act) does not apply.
It is my responsibility
-
® examine the accounts under section 145 of the 2011 Act ; e to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 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 Commissioners. 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 conceming any 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 present 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 matter has come to my attention:-
-
(a) 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 2011 Act; and
-
® to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
have not been met; or
(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
R.A. Prior, F.C.C.A., F.C.LE., DChA
Chartered Certified Accountant Fellow of the Association of Charity Independent Examiners
W. H. Prior
Chartered Certified Accountants Railway Court,
Doncaster, DN4 5FB
Dated:- 25 January 2024
.
Page 3
J.W. CHAPMAN EARLESMERE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2023
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|||||||||
|---|---|---|---|---|---|---|---|
|Note|UnrestrictedFunds|Total2023|Total2022|
|£|£|£|
|Income|
|Donations|and|legacies|
|Investment Income|
|-|Interest|&|Dividends|3|40,950|40,950|42,752|
|-|Rental|income from|Investment Properties|3|160,725|160,725|148,525|
|TOTAL INCOME|201,675|201,675|191,277|
|eR|See|Saas|
|Expenditure|
|Expenditure on|raising funds|
|— Investment Management|Costs|4|95,298|95,298|75,885|
|Direct Charitable Expenditure|
|— Grants &|associated support costs|5|132,477|132,477|141,690|
|TOTAL EXPENDITURE|227,775|227,775|217,575|
|NET (EXPENDITURE) BEFORE|
|OTHER RECOGNISED GAINS/LOSSES|(26,100)|(26,100)|(26,298)|
|Realised Gains/(Losses)|on investment|assets|(6,851)|(6,851)|2,129|
|Unrealised|Gains/(Losses)|on investment assets|(108,227)|(108,227)|30,700|
|NET MOVEMENT|IN|FUNDS|(141,178)|(141,178)|6,531|
|Balances brought forward at|1“ April 2022|3,618,282|3,618,282|3,611,751|
|Balances carried|forward|at|
|31" March 2023|i|3,477,104|3,477,104|3,618,282|
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The notes on pages 5 to 8 form part of these financial statements
Page 4
J.W. CHAPMAN EARLESMERE TRUST
BALANCE SHEET AS AT 31ST MARCH 2023
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2023 2022
Note £ £ £
Fixed assets
Tangible Fixed assets-
Investments 8 3,490,064 3,586,260
Current assets
Debtors 9 21,815 58,480
Cash at Bank 3,266 10,012
25,081 68,492
Creditors ; amounts falling due
within one year 10 38,041 36,470
Net current assets (12,960) 32,022
Net assets 3,477,104 3,618,282
Representedby:
Unrestricted Funds :-
General Fund 11 3,477,104 3,618,282
Total Funds 3,477,104 3,618,282
= es
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The financial statements on pages 3 to 8 were approved by the Trustees on 25" January, 2024, and signed on their behalf by:-
Mr. M.J. Hunter
The notes on pages 5 to 8 form part of these financial statements
Page 5
J.W. CHAPMAN EARLESMERE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
- 1 Accounting policies
Basis of accounting
The financial statements have been prepared under the historical cost accounting convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to the these accounts. The financial statements have been prepared in accordance with applicable accounting standards, the Charities SORP (FRS102) and the Charities Act 2011.
Income
All income is treated as unrestricted income, unless the donor has placed restrictions on the manner in which the donation or grant may be spent, in which case it is treated as restricted income. Investment income is recorded when receivable.
Direct Charitable Expenditure
Direct charitable expenditure consists of all expenditure associated with the payments of grants to persons in need, providing or paying for goods, services or facilities for persons in need, and the making of grants to other persons and bodies to provide goods, services or facilities to those in need, Expenditure on grants is recorded once the charity has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier. The charity has not made any grant commitments of more than one year.
Investments
Investment properties
The investment properties are shown at their fair value as at the Balance Sheet date. The majority of the investment properties were revalued as at 31% March 2017 by Grice & Hunter, Chartered Surveyors, Doncaster, and one investment property was revalued 5" November 2019 by the same firm following improvements.
Listed Investments
Listed investments are shown at their value at the Balance Sheet date.
2 Taxation
The charity is a registered charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes.
| 3 | InvestmentIncomeAnalysis | 2023 £ |
2022 £ |
|---|---|---|---|
| Interest&Dividends | |||
| ListedInvestments(Dividends&FixedInterest) Bank Interest |
40,646 304 |
42,741 11 |
|
| 40,950 | 42,752 | ||
| Rental Income from Investment Properties Rentreceivable |
160,725 | 148,525 | |
| 160,725 | 148,525 | ||
| =eee | 2 |
Page 6
4
J.W. CHAPMAN EARLESMERE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
Expenditure on raising funds — Investment Management Costs
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Repairs toInvestmentProperties Gas,Electricity&WaterRates—VacantInvestment Properties |
36,511 2,258 |
24,219 1,178 |
|
| CouncilTax&Business Rates—VacantInvestmentProperties | 4,121 | 2,067 | |
| Property Insurance& LossofRentInsurance | 7,451 | 6,515 | |
| PropertyAgents’ Commission& Fees CostofEPC’s Legal feesreInvestmentProperties InvestmentAdvisor’s AdministrationFees |
22,303 403 15,000 4,251 |
20,090 170 14,106 7,540 |
|
| 95,298 | 75,885 | ||
| Se | SS eae | ||
| 5 | DirectCharitableExpenditure—Grants& Associated SupportCosts | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Grantstoand onbehalfofindividuals | 31,839 | 36,567 | |
| GrantstootherCharities(Note6) Administrationcostsredistributions |
12,000 33,233 |
20,000 34,109 |
|
| Salary costs& expenses relating toGrants | 8,819 | 7121 | |
| Website Databaseprocessing |
1,920 1,277 |
950 500 |
|
| IndemnityInsurance Sundry Expenses |
2,729 40 |
2,305 598 |
|
| Legal&professional fees | 35,100 | 34,200 | |
| IndependentExaminer’s&Accountancy Fees | 5,520 | 5,040 | |
| 132,477 | 141,690 | ||
| SS | eee | ||
| 6 | Analysisofgrantstoothercharities | 2023 | 2022 |
| £ | £ | ||
| FareShareYorkshire | 12,000 | 12,000 | |
| TheAlcohol&Drug Service | - | 3,000 | |
| Barnardo’s , |
- | 5,000 | |
| 12,000 | 20,000 | ||
| ee | Se | ||
| A | StaffCosts | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Salary costs | 8,819 | 7,121 | |
| 8,819 | 7,121 | ||
| US | pet |
The charity engages one part-time employee on secondment. No employce carned £60,000 per annum or more.
Page 7
J.W. CHAPMAN EARLESMERE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
8 Fixed Asset Investments
| Freehold | |||
|---|---|---|---|
| Investment Properties |
Listed Investments |
Total | |
| AtMarket Value | £ | £ | £ |
| MarketValueat lstApril 2022 Additions Disposals atOpening Value(Note a} |
2,450,000 - - |
1,136,260 116,878 (104,847) |
3,586,260 116,878 (104,847) |
| Netunrealised investmentgains/(losses) | - | (108,227) | (108,227) |
| MarketValueat31March2023 | 2,450,000 | 1,040,064 | 3,490,064 |
| —SseEao | =e | ee |
All investments are held primarily to provide an investment return for the charity and all are held in the UK. The investment properties were last revalued by Grice & Hunter, Chartered Surveyors, Doncaster on 31* March 2017 with one property being revalued by that firm on 5" November 2019.
| Freehold | ||||
|---|---|---|---|---|
| Investment Properties |
Listed Investments |
Total | ||
| Note (3) | ||||
| & | £ | £ | ||
| SaleProceeds | - | 97,996 | 97,996 | |
| Opening M.Value Realised Gain/(Loss) |
2 SS |
(104.847) —~{6,851) |
(104,847) —[6,851) |
|
| Debtors | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Tenants’ rent arrears | - | 2,425 | ||
| RentheldbyPropertyManagingAgents | 9,482 | - | ||
| FundsheldbyStockbrokers | 9,214 | 53,421 | ||
| Fundsheldon Solicitor’s ClientAccount | 673 | 673 | ||
| Prepayments | 2,446 | 1,961 | ||
| 21,815 | 58,480 |
9 Debtors
All debtors are due within one year.
Page 8
J.W. CHAPMAN EARLESMERE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023
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||||||
|---|---|---|---|---|
|10|Creditors —|Amounts falling due within one year|2023|2022|
|£|z|
|Creditors|30,745|29,280|
|Accruals|7,296|7,190|
|38,041|36,470|
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11. ~—_—~Unrestricted Funds
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|||||||
|---|---|---|---|---|---|
|Balance|Other Gains|Balance|
|1.4.22|Income|Expenditure|/(Losses)|31.3.23|
|£|£|£|£|£|
|Unrestricted|Funds|
|General Fund|3,618,282|201,675|(227,775)|(115,078)|3,477,104|
|Total Unrestricted Fands|3,618,282|201,675|(227,775)|(115,078)|3,477,104|
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The General Fund represents the balance held that may be applied for charitable purposes.
- —s Trustees The Trustees of the charity do not receive any remuneration, and did not claim any expenses during the year (2022: Nil)