**REGISTERED CHARITY NUMBER: 223800** **REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023** **FOR** **THE KENNETH HARGREAVES CHARITABLE TRUST** Thomas Coombs Limited Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB **THE KENNETH HARGREAVES CHARITABLE TRUST** **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023** **----- Start of picture text -----**
Page
Reference and Administrative Details 1
Report of the Trustees 2 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 12
Detailed Statement of Financial Activities 13
**----- End of picture text -----**
## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 5TH APRIL 2023** |**TRUSTEES**|N Roscoe| |---|---| ||K Parker| ||E Vickers| ||Dr V Herrod| |**PRINCIPAL ADDRESS**|69 Holgate Road| ||York| ||YO24 4AA| |**REGISTERED CHARITY NUMBER**|223800| |**INDEPENDENT EXAMINER**|Thomas Coombs Limited| ||Chartered Accountants| ||3365 The Pentagon| ||Century Way| ||Thorpe Park| ||Leeds| ||West Yorkshire| ||LS15 8ZB| |**BANKERS**|CAF Bank Ltd| ||25 Kings Hill Avenue| ||Kings Hill| ||West Malling| ||ME19 4JQ| |**INVESTMENT MANAGERS**|Quilter Cheviot Limited| ||Senator House| ||85 Queen Victoria Street| ||London| ||EC4V 4AB| Page 1 **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023** The trustees present their report with the financial statements of the charity for the year ended 5th April 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **HISTORY AND CONSTITUTION** The trust was created by a Trust Deed dated 19th July 1957, made by the late Brigadier Kenneth Hargreaves, and is registered with the Charity Commission under the registered number 223800. The trust was established to make funds available for charitable purposes. The trustees have chosen an accounting reference date of 5th April to coincide with the tax year and facilitate the efficient repayment of income tax suffered. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The trust is managed by the trustees and policy decisions are determined by consensus. Trustees are appointed based on recommendations from the current Trustees. The induction process for newly appointed Trustees comprises a series of meetings with the existing Trustees. ## **OBJECTIVES AND ACTIVITIES** The trust does not fund-raise and seeks to continue the philanthropic intentions of the donor through the careful stewardship of the existing resources. Grants are made at the discretion of the trustees and are normally made to charitable institutions in the following categories: Environment/animal welfare; Arts – principally in Yorkshire; Vulnerable; Current crises. Grants are paid out of income but the trustees may, if they feel it necessary, pay grants out of capital. ## **RISK MANAGEMENT POLICY** In view of the size and nature of the charity’s activities the trustees have concluded that there is no significant level of risk to the charity’s funds, other than that which can be managed by prudent book-keeping and budgetary procedures, annual independent examination or audit of the account and secure operation of the charity’s banking arrangements. Trustees additionally receive and respond to advice and information from investment managers and regularly review investment management arrangements to ensure that capital values are maintained. The trustees consider that the present arrangements are satisfactory. ## **GRANTS POLICY** All applications received, whether by post or email are put forward to the trustees at their next meeting. However, due to the general charitable purposes of the charity, a high proportion of applications are unsuccessful. As a small charity, trustees are keen to keep administrative costs to a minimum and therefore have reluctantly taken the decision that only successful applications will be acknowledged. However, an FAQ sheet is available, which aims to answer most commonly asked questions and outlines the Trust’s processes; this is available to all applicants on enquiry. In assessing applications, trustees’ focus is on the following areas of interest: the Arts, principally in Yorkshire; Environment and Animal Welfare; the vulnerable including social welfare, mental health, disability, health and; Current Crises support for UK charities only. ## **ETHICAL POLICY** In the interests of best practice, the trustees have resolved that personal opinion should not influence investment policy in case it is to the detriment of the value of the portfolio and consequently the work of the trust and therefore there are no specific restrictions on the type of investments made by the charity, other than that the investments should be suitable for trusts. ## **RESERVES POLICY** The trustees aim to keep a level of liquidity within the trust’s assets and to maintain adequate funds to support their grant giving aspirations. The income producing investments are maintained to generate future income. Page 2 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023** ## **INVESTMENT POLICY** The investments are managed so as to maintain a balance between capital growth and providing a regular income, which over the long term will endeavour to maintain the real value of the assets. The investments comprise a balanced portfolio of equities, with a medium risk profile, fixed interest investments and cash. ## **PUBLIC BENEFIT STATEMENT** The trustees of The Kenneth Hargreaves Charitable Trust confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. ## **TRUSTEES RESPONSIBILITY FOR THE FINANCIAL STATEMENTS** Charity law requires the trustees of the charity to prepare a Statement of Financial Activities and a Balance Sheet which gives a true and fair view of the state of affairs of the charity and of its income and expenditure. In preparing the financial statements, the trustees are required to: - Select suitable accounting policies and apply them consistently; - Make judgements and estimates that are reasonable and prudent; - Value assets and liabilities in accordance with the 2008 regulations and the Statement of Recommended Practice “Accounting and Reporting by Charities “ (Charities SORP (FRS102)); - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records, which are sufficient to: - Show and explain the charity’s transactions; - Disclose with reasonable accuracy at any time the financial position of the charity; - Enable them the ensure that any financial statements comply with the requirements of the Charities (Accounts and Reports) Regulations 2008. The trustees are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **FINANCIAL ACTIVITIES AND AFFAIRS** Total income for the year under review amounted to £25,329, a increase of £4,238 as compared with the previous year. Charitable donations amounting to £38,400 were made during the year (2022: 32,600). Net expenditure for the year amounted to £22,802, compared to net expenditure of £22,105 in the previous year. Capital losses realised on the sale of investments amounted to £(2,457) (2022: £1,751), and unrealised losses attributable to the change in market value of investments during the year amounted to £(98,509) (2022: £40,547). The overall net decrease in funds for the year amounted to £123,648, resulting in total funds of £868,687 to carry forward at 5th April 2023. During the year under review the charity purchased investments at a cost of £166,722 and received proceeds of £204,832 from the sale of investments. The market value of the charity’s investments at 5th April 2023 was £872,906. After adjusting for purchases and sales in the year this represents capital loss of the portfolio amounting to £98,509 as compared to the market value at the previous year end. The trustees receive no remuneration and charged expenses of £154 (2022: £344) whilst acting in their capacity as trustee or otherwise. ## **COMPLIANCE AND STATUTORY REQUIREMENTS** The trustees’ report has been prepared in accordance with the provisions of the Charities (Accounts and Reports) Regulations 2008 and Statement of Recommended Practice “Accounting and Reporting by Charities” (Charities SORP (FRS102)). Page 3 **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023** Approved by order of the board of trustees on 3[rd] November 2023 and signed on its behalf by: .............................................................................. N Roscoe - Trustee Page 4 **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE KENNETH HARGREAVES CHARITABLE TRUST** ## **Independent examiner's report to the trustees of The Kenneth Hargreaves Charitable Trust** I report to the charity trustees on my examination of the accounts of The Kenneth Hargreaves Charitable Trust (the Trust) for the year ended 5th April 2023. ## **Responsibilities and basis of report** As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act'). I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Christopher Darwin FCA Thomas Coombs Limited Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB Date: 3[rd] November 2023 Page 5 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5TH APRIL 2023** |**2023**
**Unrestricted**
**fund**
Notes
**£**
**INCOME AND ENDOWMENTS FROM**
Investment income
2
**25,329**
**EXPENDITURE ON**
**Charitable activities**
Grants awarded 3
**38,400**
Accountancy and examination
**1,320**
Management and administration
**1,751**
Investment management fees
**6,660**
**Total**
**48,131**
Net gains/(losses) on investments
**(100,966)**
**NET INCOME/(EXPENDITURE)**
**(123,768)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**992,335**
**TOTAL FUNDS CARRIED FORWARD**
**868,567**|_2022_
_Total_
_funds_
_£_
_21,091_| |---|---| ||_32,600_
_1,200_
_2,221_
_7,175_| ||_43,196_| ||_42,298_| ||_20,193_
_972,142_| ||_992,335_| The notes form part of these financial statements Page 6 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **BALANCE SHEET 5TH APRIL 2023** |Notes
**FIXED ASSETS**
Investments
6
**CURRENT ASSETS**
Cash at bank
**CREDITORS**
Amounts falling due within one year
7
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
8
Unrestricted funds
**TOTAL FUNDS**|**2023**
**Unrestricted**
**fund**
**£**
**875,439**
**12,848**
**(19,720)**
**(6,872)**
**868,567**
**868,567**
**868,567**
**868,567**|_2022_
_Total_
_funds_
_£_
_989,747_
_23,491_
_(20,903)_
_2,588_
_992,335_
_992,335_
992,335
992,335| |---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 3[rd] November 2023 and were signed on its behalf by: ............................................. N Roscoe - Trustee The notes form part of these financial statements Page 7 **THE KENNETH HARGREAVES CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. ## **Income** Investment income is included in the financial statements when received and is stated gross of any recoverable tax deducted at source. Other income is included in the accounts on an accruals basis. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Taxation** The charity is exempt from income and capital gains tax to the extent that income and gains are applied for charitable purposes. The trust is unable to recover value added tax on its expenditure and accordingly expenses are shown gross of value added tax. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Investments** Investments are stated in the balance sheet at their open market value. Both realised and unrealised gains and losses on investments are included in recognised gains and losses on the Statement of Financial Activities. Realised gains and losses on investments are calculated as the difference between disposal proceeds and carrying value at the date of disposal. Carrying Value is the sum of market value brought forward at the beginning of the accounting period and the cost of subsequent acquisitions. continued... Page 8 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023** ## **2. INVESTMENT INCOME** |**INVESTMENT INCOME**||| |---|---|---| |Income from investments
Interest|**2023**
**£**
**25,232**
**97**
**25,329**|_2022_
_£_
_21,091_
_-_| |||_21,091_| ## **3. GRANTS PAYABLE** |**GRANTS PAYABLE**||| |---|---|---| |Charitable activities
The total grants paid to institutions during the year was as follows:
2023
_2022_
Number
_Number_
4
_3_
4
_5_
2
_4_
4
_3_
-
_2_
19
_14_
33
_31_
Arts
Medical
Conservation
Animal Welfare
Children
Social Welfare|**2023**
**£**
**38,400**
**2023**
**£**
**3,000**
**9,200**
**3,950**
**2,250**
**-**
**20,000**
**38,400**|_2022_
_£_
_32,600_| |||_2022_
_£_
_1,950_
_5,250_
_3,650_
_1,700_
_1,500_
_18,550_
_32,600_| continued... Page 9 **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023** ## **4. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 5th April 2023 nor for the year ended 5th April 2022. ## **Trustees' expenses** Trustees expenses of £154 were paid for the year ended 5th April 2023 and £344 of expenses for the year ended 5th April 2022. ## **Independent examination fee** Within administration and accountancy costs is £600 (2022: £600) for the independent examination. ## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5TH APRIL 2022** ||Unrestricted| |---|---| ||fund| ||£| |**INCOME AND ENDOWMENTS FROM**|| |Investment income|21,091| |**EXPENDITURE ON**|| |**Charitable activities**|| |Grants awarded|32,600| |Accountancy and examination|1,200| |Management and administration|2,221| |Investment management fees|7,175| |**Total**|43,196| |Net gains on investments|42,298| |**NET INCOME**|20,193| |**RECONCILIATION OF FUNDS**|| |Total funds brought forward|972,142| |**TOTAL FUNDS CARRIED FORWARD**|992,335| continued... Page 10 **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023** ## **6. FIXED ASSET INVESTMENTS** |**MARKET VALUE**
At 6th April 2022
Additions
Disposals
Revaluations
At 5th April 2023
**NET BOOK VALUE**
At 5th April 2023
At 5th April 2022
There were no investment assets outside the UK.
Cost or valuation at 5th April 2023 is represented by:
Valuation in 2023
**7.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors
**8.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
**25,329**
**TOTAL FUNDS**
**25,329**|Listed
investments
£
**1,009,757**
**166,722**
**(205,064)**
**(98,509)**
**872,906**
**872,906**
_1,009,757_
**Listed**
**investments**
**£**
**872,906**
At 6/4/22
£
**992,335**
**992,335**
Resources
expended
£
**(48,131)**
**(48,131)**|Cash and
settlements
pending
£
**(20,010)**
**22,458**
**85**
**-**
**2,533**
**2,533**
_(20,010)_
**Cash and**
**settlements**
**pending**
**£**
**2,533**
**2023**
**£**
**19,720**
Net
movement
in funds
£
**(123,768)**
**(123,768)**
Gains and
losses
£
**(100,966)**
**(100,966)**|| |---|---|---|---| ||||| ||||| ||||| continued... Page 11 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023** ## **8. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Net
movement
At 6/4/21
in funds
£
£
972,142
20,193
972,142
20,193|At
5/4/22
£
992,335| |---|---|---| |||992,335| Comparative net movement in funds, included in the above are as follows: ||Incoming|Resources|Gains and|Movement| |---|---|---|---|---| ||resources|expended|losses|in funds| ||£|£|£|£| |**Unrestricted funds**||||| |General fund|21,091|(43,196)|42,298|20,193| |**TOTAL FUNDS**|21,091|(43,196)|42,298|20,193| ## **9. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 5th April 2023. Page 12 ## **THE KENNETH HARGREAVES CHARITABLE TRUST** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5TH APRIL 2023** ||2023|_2022_| |---|---|---| ||£|_£_| |**INCOME AND ENDOWMENTS**||| |**Investment income**||| |Income from investments|**25,232**|_21,091_| |Interest|**97**|_-_| ||**25,329**|_21,091_| |**Total incoming resources**|**25,329**|_21,091_| |**EXPENDITURE**||| |**Charitable activities**||| |Secretarial expenses|**1,525**|_1,869_| |Accountancy and examination|**1,320**|_1,200_| |Portfolio management|**6,660**|_7,175_| |Trustee expenses|**154**|_344_| |Direct charitable donations|**38,400**|_32,600_| ||**48,059**|_43,188_| |**Support costs**||| |**Finance**||| |Bank charges|**72**|_8_| |Total resources expended|**48,131**|_43,196_| |**Net expenditure before gains and losses**|**(22,802)**|_(22,105)_| |**Realised recognised gains and losses**||| |Realised gains/(losses) on fixed asset investments|**(2,457)**|_1,751_| |Unrealised gains/(losses) on fixed asset investments|**(98,509)**|_40,547_| |**Net (expenditure)/income**|**(123,768)**|_20,193_| This page does not form part of the statutory financial statements Page 13