## **REGISTERED CHARITY NUMBER: 226675** 

## **Ann Watson's Trust** 

## **Financial Statements** 

**31st December 2020** 




**Ann Watson's Trust** 

## **Contents of the Financial Statements for the year ended 31st December 2020** 

||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Trustees**|2to3|
|**Report of the Independent Auditors**|4to6|
|**Statement of Financial Activities**|7|
|**Balance Sheet**|8|
|**Cash Flow Statement**|9|
|**Notes to the Cash Flow Statement**|10|
|**Notes to the Financial Statements**|11 to 18|





**Ann Watson's Trust** 

**Reference and Administrative Details for the year ended 31st December 2020** 

|**TRUSTEES**|A A Dunn Chairman (Resigned 19.1.2021)|
|---|---|
||P Overvoorde Co-opted Trustee|
||Miss P O'Brian Co-opted Trustee|
||Archdeacon A C Broom Nominated Trustee|
||Rev G Naylor Ex-officio Trustee|
||J M V Redman Chairman (appointed 19.1.2021) and Nominated Trustee|
||S Polko Ex-officio Trustee|
||N J Penton Ex-officio Trustee (appointed 19.1.2021)|
||Rev D Black (appointed 17.8.2020)|
|**PRINCIPAL ADDRESS**|Flat 4 The College|
||College Street|
||Sutton|
||Hull|
||East Yorkshire|
||HU7 4UP|
|**REGISTERED CHARITY NUMBER**226675||
|**AUDITORS**|Smailes Goldie|
||Chartered Accountants|
||Statutory Auditor|
||Regent's Court|
||Princess Street|
||Hull|
||East Yorkshire|
||HU2 8BA|
|**BANKERS**|Barclays Bank PLC|
||Hull Corporate Banking Centre|
||Hull|
||East Yorkshire|
||HU1 1RN|
|**SOLICITORS**|Gosschalks|
||Queens Gardens|
||Hull|
||HU1 3DZ|
||Loxley|
||Langford Mill|
||Wotton-under-Edge|
||GL12 8RL|
|**ADVISERS**|Land and Property Agents:|
||Dee Atkinson & Harrison|
||The Exchange|
||Driffield|
||East Yorkshire|
||YO25 7LJ|
||Stockbrokers:|
||Smith and Williamson Investment Management|
||25 Moorgate|
||London|
||EC2R 6AY|



Page 1 



**Ann Watson's Trust** 

## **Report of the Trustees for the year ended 31st December 2020** 

The trustees present their report with the financial statements of the charity for the year ended 31st December 2020. 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). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

The objects of the Charity are to provide accommodation and relief in need for poor women who are members of the Church of England, preference being given to such persons who are widows or unmarried daughters of clergymen of the Church of England and for the advancement of education in promoting the education of persons under the age of 25 who are residents of the East Riding of Yorkshire or who attend a school in that area and for providing any special benefits for schools in that area which will not have effect of relieving statutory expenditure. 

## **FINANCIAL REVIEW** 

## **Financial position** 

During the year the charity continued to apply its income to support and promote its objectives in providing education and grants to individuals, schools and similar organisations. The charity has continued to improve its residential care facility in Sutton having incurred further expenditure on refurbishment of living accommodation. 

The charity has net outgoing resources of £132,631 (2019 net incoming resources £1,118,387) including realised losses on investments of £66,264 (2019 gains £60,897), and unrealised losses on investments of £277,975 (2019 gains £913,749). 

The trustees have considered The Charity Commission's guidance on public benefit and are of the opinion that this is fulfilled by the charity's continued educational and care facilities. 

## **Investment policy and objectives** 

The portfolio of investments is managed by Smith and Williamson Investment Management who report to the trustees on a quarterly basis. 

The farm investment properties are managed by Land Agents Dee Atkinson & Harrison who report to the trustees on a periodic and quarterly basis. The trustees inspect these properties on an annual basis. 

The residential investment properties are split into two separate portfolios, these being the Holderness based properties and the urban properties. The Holderness based properties are managed by Dee Atkinson & Harrison and the urban properties are managed by Haller Evans. The trustees receive period reports from the Land agents for the residential properties. 

## **Reserves policy** 

The charity has free reserves defined as unrestricted funds of £21,802,059 and designated funds of £651,487 at  31st December 2020. 

The designated fund is the Extraordinary Repair Fund, the purpose of which is to ensure funds are separately available for improvement, maintenance and refurbishment of the properties owned by the charity. 

It is the charity's policy to retain sufficient funds to continue the long-term objectives as set out in this report. This requires sufficient reserves to be retained, in the form of investments, to produce a guaranteed income to maintain its assets and continue with its charitable activities for the foreseeable future. 

The trustees consider the funds are adequate for the purposes of the charity for the foreseeable future. 

## **FUTURE PLANS** 

The charity has been impacted by the Covid-19 pandemic and the control measures that were in place throughout most of 2020. 

The charity's investment portfolio has declined and its income from the portfolio also declined although the adverse effects were not as significant as might have been expected at the height of the pandemic in 2020. Despite this, the trustees do not plan to reduce the availability of grants payable in future. The charity has built up significant unrestricted reserves to be able to maintain its funding to the charities and deserving causes it supports, particularly at a time when that support is most needed. 

Despite lockdowns and the social distancing measures introduced to combat the spread of Covid-19, the charity has been able to continue most of its day to day activities, by alternative means where necessary. 

The process of reviewing the potential conversion of redundant farm buildings to residential use was disrupted by Covid19 and remains under consideration by the Trustees. 

Page 2 



**Ann Watson's Trust** 

## **Report of the Trustees** 

## **for the year ended 31st December 2020** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

Ann Watson's Trust was created by the Will of Mrs. Ann Watson dated 27th October 1720 and is subject to the regulation under a scheme approved on 31st August 1979 and as altered on 5th March 2002 and 20th February 2004 by the Charity of Commissioners. 

## **Recruitment and appointment of new trustees** 

The Nominated Trustees are appointed as representatives of the Archbishop of York and the Bishop of Hull. 

The Ex-officio Trustees are appointed in their capacity as vicars of Hedon, Hull Minster and of Sutton and Wawne. 

The Co-opted Trustees are appointed by personal introduction of existing trustees based on their skills and potential contribution towards the objectives of the charity. 

The Chair of the Trustees is responsible for the induction of any new trustee which includes awareness of a trustee's responsibility, the governing document and the history and philosophy of the Trust. A new Trustee receives copies of the relevant documentation, along with the previous year's accounts, annual report and the governing document. 

## **Organisational structure** 

The trustees meet on a quarterly basis to discuss future strategy and review the activities of the charity, consider matters arising and authorise grants and other expenditure. The Chairman of the Trustees is responsible for the day-to-day operation of the charity. 

The residential facilities provided at The College are usually inspected by a rota of trustees on a regular basis however such regular inspections were temporarily suspended as many of the elderly residents were shielding due to Covid-19. Inspection of the other properties by trustees was also suspended throughout the year. A salaried clerk/secretary who assists the Chairman of the Trustees carrying out these duties, particularly those associated with The College premises, remained in close contact with the Trust's elderly residents throughout the year. 

## **Risk management** 

The trustees have reviewed the major risks to which the charity is exposed and appropriate systems have been established to mitigate those risks. Operational risks are minimised by the employment of suitable professional advisers. The charity also has insurance policies in place which further mitigates risk to the charity. A strategic risk management review and a full review of all the Trust's property insurances is planned for 2021. 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 13th April 2021 and signed on its behalf by: 

J M V Redman - Trustee 

Page 3 



**Report of the Independent Auditors to the Trustees of Ann Watson's Trust** 

## **Opinion** 

We have audited the financial statements of Ann Watson's Trust (the 'charity') for the year ended 31st December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

- In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31st December 2020 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable   law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

Page 4 



**Report of the Independent Auditors to the Trustees of Ann Watson's Trust** 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

## **The extent to which the audit was considered capable of detecting irregularities including fraud** 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. 

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risk of fraud through management bias and override of controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; 

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 

- investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; 

- enquiring of management as to actual and potential litigation and claims; and 

- reviewing correspondence with HMRC, relevant regulators and the charity's legal advisors. 

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 

Page 5 



**Report of the Independent Auditors to the Trustees of Ann Watson's Trust** 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Smailes Goldie Chartered Accountants Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Regent's Court Princess Street Hull East Yorkshire HU2 8BA 

13th April 2021 

Page 6 



**Ann Watson's Trust** 

## **Statement of Financial Activities for the year ended 31st December 2020** 

|**Notes**<br>**INCOME AND ENDOWMENTS FROM**<br>Investment income<br>2<br>Other income<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>**Charitable activities**<br>Provision of accommodation<br>Advancement of education<br>Management and administration of the Charity<br>**Total**<br>Net gains/(losses) on investments<br>**NET INCOME/(EXPENDITURE)**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**<br>**fund**<br>**£**<br>**Designated**<br>**fund**<br>**£**<br>**2020 Total**<br>**funds**<br>**£**<br>**2019 Total**<br>**funds**<br>**£**<br>**466,119**<br>**26,405**<br>**492,524**<br>499,000<br>**-**<br>**-**<br>**-**<br>25,000|
|---|---|
||**466,119**<br>**26,405**<br>**492,524**<br>524,000<br>**101,950**<br>**-**<br>**101,950**<br>130,356<br>**47,293**<br>**-**<br>**47,293**<br>65,018<br>**92,770**<br>**-**<br>**92,770**<br>142,610<br>**38,903**<br>**-**<br>**38,903**<br>42,275|
||**280,916**<br>**-**<br>**280,916**<br>380,259<br>**(296,233)**<br>**(48,006)**<br>**(344,239)**<br>974,646<br>**(111,030)**<br>**(21,601)**<br>**(132,631)**<br>1,118,387<br>**21,913,089**<br>**673,088**<br>**22,586,177**<br>21,467,790|
||**21,802,059**<br>**651,487 **<br>**22,453,546**<br>22,586,177|



## **CONTINUING OPERATIONS** 

All income and expenditure has arisen from continuing activities. 

The notes form part of these financial statements 

Page 7 



**Ann Watson's Trust** 

## **Balance Sheet 31st December 2020** 

|**FIXED ASSETS**<br>Tangible assets<br>**Investments**<br>Investments<br>Investment property<br>**CURRENT ASSETS**<br>Debtors<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>Unrestricted funds<br>**TOTAL FUNDS**|Unrestricted<br>Notes<br>fund<br>£<br>11<br>**1,263**<br>12<br>**7,559,119**<br>13<br>**13,377,075**|Unrestricted<br>Notes<br>fund<br>£<br>11<br>**1,263**<br>12<br>**7,559,119**<br>13<br>**13,377,075**|<br>Designated<br>fund<br>£<br>**-**<br>**651,487**<br>**-**|<br>**2020**<br>**Total**<br>**funds**<br>**£**<br>**1,263**<br>**8,210,606**<br>**13,377,075**<br>**21,588,944**<br>**41,452**<br>**872,599**<br>**914,051**<br>**(49,449 )**<br>**864,602**<br>**22,453,546**<br>**22,453,546**<br>**22,453,546**<br>**22,453,546**|2019|
|---|---|---|---|---|---|
||||||Total|
||||||funds|
||||||£|
||||||-|
||||||8,325,221|
||||||13,377,075|
|||||||
||14|**20,937,457**<br>**41,452**<br>**872,599**|**651,487**<br>**-**<br>**-**||21,702,296|
|||||||
|||||||
||||||32,188|
||||||880,011|
|||||||
||15|**914,051**<br>**(49,449 )**|**-**<br>**-**||912,199|
|||||||
|||||||
||||||(28,318)|
|||||||
|||**864,602**|**-**||883,881|
|||||||
|||**21,802,059**|**651,487**|||
||||||22,586,177|
|||||||
|||**21,802,059**|**651,487**||22,586,177|
|||||||
||16|||||
||||||22,586,177|
|||||||
||||||22,586,177|
|||||||



The financial statements were approved by the Board of Trustees and authorised for issue on 13th April 2021 and were signed on its behalf by: 

J M V Redman - Trustee 

The notes form part of these financial statements 

Page 8 



**Ann Watson's Trust** 

## **Cash Flow Statement for the year ended 31st December 2020** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Purchase of fixed asset investments<br>Sale of tangible fixed assets<br>Sale of fixed asset investments<br>Interest received<br>Dividends received<br>Net cash provided by investing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|**2020**<br>**£**<br>**(18,493)**||2019|
|---|---|---|---|
||||£|
|||||
|||||
||||(135,090)|
|||||
||**(18,493)**||(135,090)|
|||||
||**(1,894)**<br>**(563,514)**<br>**-**<br>**333,890**<br>**1,251**<br>**241,348**|||
|||||
||||-|
||||(693,916)|
||||25,000|
||||579,380|
||||2,576|
||||257,426|
|||||
||**11,081**||170,466|
|||||
|||||
||**(7,412)**<br>**880,011**|||
||||35,376|
|||||
||||844,635|
|||||
||**872,599**|||
||||880,011|
|||||
|||||



The notes form part of these financial statements 

Page 9 



**Ann Watson's Trust** 

## **Notes to the Cash Flow Statement for the year ended 31st December 2020** 

## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**ACTIVITIES**|||
|---|---|---|
|**Net (expenditure)/income for the reporting period (as per the**<br>**Statement of Financial Activities)**<br>**Adjustments for:**<br>Depreciation charges<br>Losses/(gain) on investments<br>Profit on disposal of fixed assets<br>Interest received<br>Dividends received<br>(Increase)/decrease in debtors<br>Increase in creditors<br>**Net cash used in operations**|**2020**<br>**£**<br>2019<br>£<br>**(132,631)**<br>1,118,387<br>**632**<br>-<br>**344,239**<br>(974,646)<br>**-**<br>(25,000)<br>**(1,251)**<br>(2,576)<br>**(241,348)**<br>(257,426)<br>**(9,264)**<br>499<br>**21,130**<br>5,672||
||||
|||-|
|||(974,646)|
|||(25,000)|
|||(2,576)|
|||(257,426)|
|||499|
|||5,672|
||||
||**(18,493)**|(135,090)|
||||
||||



2. 

**ANALYSIS OF CHANGES IN NET FUNDS** 

|**Net cash**<br>Cash at bank and in hand<br>**Total**|At 1.1.20<br>£<br>Cash flow<br>£<br>**At 31.12.20**<br>**£**<br>**880,011**<br>**(7,412)**<br>**872,599**|
|---|---|
||**880,011**<br>**(7,412)**<br>**872,599**|



The notes form part of these financial statements 

Page 10 



**Ann Watson's Trust** 

**Notes to the Financial Statements for the year ended 31st December 2020** 

## **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** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

## **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. 

## **Charitable activities** 

Grants of an expenditure nature which are made to satisfy the objectives of the charity for the advancement of education of persons under the age of 25 who are residents of the East Riding of Yorkshire or who attend a school in that area and for providing any special benefit for schools in that area are charged to the statement of financial activities in the period in which they become payable. 

## **Allocation and apportionment of costs** 

Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with the use of the resource. 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. 

Computer equipment - 33% on cost 

## **Investment property** 

Freehold farm properties and other freehold investment properties are included at market valuation. No depreciation is considered necessary on these properties. 

No valuation has been included for the freehold property at Sutton College, College Street, Sutton which is used for charitable purposes. 

## **Taxation** 

Ann Watson's Trust is a U.K. registered charity, number 226675. All the Charity's income is applied to its charitable objectives and the Charity is, therefore, exempt under current legislation from most forms of taxation. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. The charity's general funds consist of funds which the charity may use for its purposes at its discretion. 

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. 

The Extraordinary Repair Fund is designated for the specific purpose of property improvements. The fund's assets are invested in NAACIF accumulation shares. Until 31st December 1993 an annual contribution of £4,000 was transferred from income account and is invested in the above mentioned shares. Due to the value accumulated in the fund the trustees have deemed that since that date no further transfers were necessary. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

Page 11 

continued... 



**Ann Watson's Trust** 

**Notes to the Financial Statements for the year ended 31st December 2020** 

## **1. ACCOUNTING POLICIES - continued** 

## **Pension costs and other post-retirement benefits** 

The charity contributes into the private penison scheme of its employee. Contributions payable to the pension scheme are charged to the Statement of Financial Activities in the period to which they relate. 

## **Listed investments** 

Listed investments are included in the accounts at market value. The variations between the valuation of investments at the balance sheet date and their purchase price if acquired during the year and the market value at the previous balance sheet date for investments held throughout the year are shown as unrealised gains or losses in the statement of financial activities. 

## **2. INVESTMENT INCOME** 

|Residential property rents received<br>Farm property rents received<br>Dividends received<br>Deposit account interest|**2020**<br>**£**<br>**49,532**<br>**200,393**<br>**241,348**<br>**1,251**<br>**492,524**|2019<br>£<br>50,363<br>188,635<br>257,426<br>2,576<br>499,000|
|---|---|---|



## **3. RAISING FUNDS Investment management costs** 

|<br>Investment portfolio management<br>Property management and rent collection<br>Property repairs<br>Property insurance<br>Legal and professional fees|**2020**<br>**£**<br>**25,735**<br>**21,216**<br>**17,208**<br>**15,392**<br>**22,399**<br>**101,950**|2019<br>£<br>27,980<br>21,229<br>62,623<br>14,990<br>3,534<br>130,356|
|---|---|---|



## **4. CHARITABLE ACTIVITIES COSTS** 

|**CHARITABLE ACTIVITIES COSTS**||||||
|---|---|---|---|---|---|
||||Grant|||
||||funding of|||
||Direct||activities|Support||
||Costs (see||(see note|costs (see||
||note 5)||6)|note 7)|Totals|
||£||£|£|£|
|Provision of accommodation|**47,293**||**-**|**-**|**47,293**|
|Advancement of education||**-**|**92,770**|**-**|**92,770**|
|Management and administration of the||||||
|Charity||**-**|**-**|**38,903**|**38,903**|
||**47,293**||**92,770**|**38,903**|**178,966**|



Page 12 

continued... 



**Ann Watson's Trust** 

## **Notes to the Financial Statements for the year ended 31st December 2020** 

## **5. DIRECT COSTS OF CHARITABLE ACTIVITIES** 

|Rates and water<br>Insurance<br>Light and heat<br>Telephone<br>Lifeline<br>Maintenance and repairs<br>Garden maintenance<br>**6.**<br>**GRANTS PAYABLE**<br>Advancement of education<br>The total grants paid to institutions during the year was as follows:<br>Holy Trinity Education Officer<br>Holy Trinity Children and Families Worker<br>Holy Trinity Music Support<br>Holy Trinity Youth Worker<br>Dyslexia Institute<br>St John Baptist Church<br>University of Hull<br>Other Institutions<br>York Diocesan<br>St Columba Church<br>HETA<br>St Marks<br>Rotary club of Humberside<br>St James Church<br>**7.**<br>**SUPPORT COSTS**<br>Finance<br>Management and administration of the<br>£<br>Charity<br>**496**|||**2020**<br>**£**<br>**2,563**<br>**7,167**<br>**8,516**<br>**935**<br>**2,050**<br>**21,137**<br>**4,925**||2019|
|---|---|---|---|---|---|
||||||£|
||||||3,450|
||||||6,880|
||||||8,408|
||||||1,805|
||||||2,257|
||||||37,084|
||||||5,134|
|||||||
||||**47,293**||65,018|
|||||||
|||||||
||||**2020**<br>**£**<br>**92,770**|||
||||||2019|
||||||£|
|||||142,610||
|||||||
||||**2020**<br>**£**<br>**4,000**<br>**3,000**<br>**4,000**<br>**8,000**<br>**17,442**<br>**-**<br>**-**<br>**5,983**<br>**-**<br>**5,000**<br>**20,000**<br>**-**<br>**-**<br>**6,500**|||
|||||2019||
|||||£||
|||||3,999||
|||||3,000||
|||||4,000||
|||||8,000||
|||||21,478||
|||||4,500||
|||||20,000||
|||||6,364||
|||||5,000||
|||||5,000||
|||||30,969||
|||||3,000||
|||||1,750||
|||||-||
|||||||
||||**73,925**|117,060||
|||||||
|||||||
||Governance<br>costs<br>£<br>**38,407**|||Totals<br>£<br>**38,903**||



Page 13 

continued... 



**Ann Watson's Trust** 

## **Notes to the Financial Statements** 

## **for the year ended 31st December 2020** 

## **7. SUPPORT COSTS - continued** 

Support costs, included in the above, are as follows: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2020|2019|
|Management|
|and|
|administration|
|of the|Total|
|Charity|activities|
|£|£|
|Bank charges|496|-|
|Wages|10,230|9,912|
|Pensions|1,830|1,830|
|Auditors' remuneration|6,415|6,415|
|Postage and stationery|2,745|1,300|
|Sundries (irrecoverable VAT)|9,681|14,119|
|Accountancy|6,020|7,845|
|Indemnity Insurance|854|854|
|Depreciation of tangible fixed assets|632|-|
|38,903|42,275|

**----- End of picture text -----**<br>


## **8. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019. 

## **Trustees' expenses** 

There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019. 

## **9. STAFF COSTS** 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2020|2019|
|£|£|
|Wages and salaries|10,230|9,912|
|Other pension costs|1,830|1,830|
|12,060|11,742|
|The average monthly number of employees during the year was as follows:|
|2020|2019|
|Administration and support|1|
|No employees received emoluments in excess of £60,000.|

**----- End of picture text -----**<br>


## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** 


**----- Start of picture text -----**<br>
|||||
|---|---|---|---|
|Unrestricted|Designated|Total|
|fund|fund|funds|
|£|£|£|
|INCOME AND ENDOWMENTS FROM|
|Investment income|473,168|25,832|499,000|
|Other income|25,000|-|25,000|
|Total|498,168|25,832|524,000|
|EXPENDITURE ON|
|Raising funds|82,387|47,969|130,356|
|Charitable activities|
|Provision of accommodation|65,018|-|65,018|

**----- End of picture text -----**<br>


Page 14 

continued... 



**Ann Watson's Trust** 

## **Notes to the Financial Statements for the year ended 31st December 2020** 

|**10.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**||||
|---|---|---|---|---|---|
|||Unrestricted|Designated||Total|
|||fund|fund||funds|
|||£|||£|
||Advancement of education|142,610|||142,610|
||Management and administration of the Charity|42,275|||42,275|
||**Total**|332,290|47,969||380,259|
||Net gains on investments|894,971|79,675||974,646|
||**NET INCOME**|1,060,849|57,538||1,118,387|
||**RECONCILIATION OF FUNDS**|||||
||**Total funds brought forward**|20,852,240|615,550||21,467,790|
||**TOTAL FUNDS CARRIED FORWARD**|21,913,089|673,088||22,586,177|
|**11.**|**TANGIBLE FIXED ASSETS**|||||
||||||Computer|
||||||equipment|
||||||£|
||**COST**|||||
||Additions||||**1,895**|
||**DEPRECIATION**|||||
||Charge for year||||**632**|
||**NET BOOK VALUE**|||||
||At 31st December 2020||||**1,263**|
||At 31st December 2019|||||
||Freehold land and buildings, being The College, 14 College Street, Hull, owned by the Charity||||and used for|
||charitable purposes have not been professionally valued and are included in the accounts at £nil|||value.||
|**12.**|**FIXED ASSET INVESTMENTS**|||||
||||||Listed|
||||||investments|
||||||£|
||**MARKET VALUE**|||||
||At 1st January 2020||||**8,325,221**|
||Additions||||**563,514**|
||Disposals||||**(400,154 )**|
||Decrease in market value||||**(277,975 )**|
||At 31st December 2020||||**8,210,606**|
||**NET BOOK VALUE**|||||
||At 31st December 2020||||**8,210,606**|
||At 31st December 2019||||8,325,221|



Page 15 

continued... 



**Ann Watson's Trust** 

## **Notes to the Financial Statements for the year ended 31st December 2020** 

## **12. FIXED ASSET INVESTMENTS - continued** 

|Analysis of investments:<br>UK Government Stocks<br>UK Equities and Unit Trusts<br>International Bonds<br>Investments exceeding 5% of market value of portfolio:<br>NAACIF 21,711 accumulation shares<br>**13.**<br>**INVESTMENT PROPERTY**<br>**FAIR VALUE**<br>At 1st January 2020<br>and 31st December 2020<br>**NET BOOK VALUE**<br>At 31st December 2020<br>At 31st December 2019|**2020**<br>**£**<br>**199,032**<br>**7,661,821**<br>**349,753**||**2019**|
|---|---|---|---|
||||**£**|
|||||
||||307,392|
||||7,672,382|
||||345,447|
|||||
||**8,210,606**<br>**2020**<br>**£**<br>**2,008,608**||8,325,221|
|||||
|||||
|||||
||||**2019**|
||||**£**|
|||||
||||2,074,629|
|||**£**<br>**13,377,075**||
|||**13,377,075**||
|||||
|||13,377,075||
|||||
|||||



Farm properties were valued on an open market value basis subject to existing tenancies as at 31st December 2017 by Dee Atkinson and Harrison, Chartered Surveyors. 

Other freehold properties were valued on an open market value basis at 31st December 2017 by Haller Evans Chartered Surveyors. 

The trustees confirm that to the best of their knowledge and having taken appropriate professional advice that the valuations above are consistent with the fair value of the properties at 31st December 2020. 

## **14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Rental debtors<br>Prepayments and accrued income|**2020**<br>**£**<br>**10,322**<br>**31,130**|2019|
|---|---|---|
|||£|
|||-|
|||32,188|
||||
||**41,452**|32,188|
||||



Page 16 

continued... 



**Ann Watson's Trust** 

## **Notes to the Financial Statements for the year ended 31st December 2020** 

## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||
|---|---|---|---|
|Trade creditors<br>VAT<br>Accrued expenses||**2020**<br>**£**<br>**1,657**<br>**9,964**<br>**37,828**|2019|
||||£|
||||756|
||||8,509|
||||19,053|
|||||
|||**49,449**|28,318|
|||||
|||||



## **16. MOVEMENT IN FUNDS** 

|**Unrestricted funds**<br>Unrestricted Fund<br>Designated fund<br>**TOTAL FUNDS**<br>Net movement in funds, included in the above are as follows:<br>Incoming<br>resources<br>£<br>**Unrestricted funds**<br>Unrestricted Fund<br>**466,119**<br>Designated fund<br>**26,405**<br>**492,524**<br>**TOTAL FUNDS**<br>**492,524**|At 1.1.20<br>£<br>**21,913,089**<br>**673,088**|Net<br>movement<br>At<br>in funds<br>£<br>31.12.20<br>£<br>**(111,030 )**<br>**21,802,059**<br>**(21,601 )**<br>**651,487**|
|---|---|---|
||**22,586,177**|**(132,631 )**<br>**22,453,546**|
||**22,586,177**|**(132,631 )**<br>**22,453,546**|
||Resources<br>expended<br>£<br>**(280,916 )**<br>**-**|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>**(296,233 )**<br>**(111,030 )**<br>**(48,006 )**<br>**(21,601 )**|
||**(280,916 )**|**(344,239 )**<br>**(132,631 )**|
||**(280,916 )**|**(344,239 )**<br>**(132,631 )**|



## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>Unrestricted Fund<br>Designated fund<br>**TOTAL FUNDS**|Net<br>movement<br>At<br>At 1.1.19<br>£<br>in funds<br>£<br>31.12.19<br>£<br>20,852,240<br>1,060,849<br>21,913,089<br>615,550<br>57,538<br>673,088|
|---|---|
||21,467,790<br>1,118,387<br>22,586,177|
||21,467,790<br>1,118,387<br>22,586,177|



Page 17 

continued... 



**Ann Watson's Trust** 

**Notes to the Financial Statements for the year ended 31st December 2020** 

## **16. MOVEMENT IN FUNDS - continued** 

Comparative net movement in funds, included in the above are as follows: 

||Incoming|Resources|Gains and|Movemen|
|---|---|---|---|---|
||resources|expended|losses|in funds|
||£|£|£|£|
|**Unrestricted funds**|||||
|Unrestricted Fund|498,168|(332,290 )|894,971|1,060,849|
|Designated fund|25,832|(47,969)|79,675|57,538|
||524,000|(380,259 )|974,646|1,118,387|
|**TOTAL FUNDS**|524,000|(380,259 )|974,646|1,118,387|



## **Unrestricted Fund** 

The charity's general funds consist of funds which the charity may use for its charitable purposes at its discretion. 

## **Designated Fund** 

The designated extraordinary repair fund is designated for the specific purpose of property improvements. The fund's assets are invested in NAACIF accumulation shares. Until 31st December 1993 an annual contribution of £4,000 was transferred from income account and is invested in the above mentioned shares. Due to the value accumulated in the fund the trustees have deemed that since that date no further transfers were necessary. 

## **17. RELATED PARTY DISCLOSURES** 

A related party transaction occurred between the charity and the daughter, Olivia Overoorde, of a trustee, Peter Overoorde, for services in relation to website design. The cost incurred by the charity in the financial year was £1,216.50 which was settled in full in the year. Three quotes were obtained for the provision of these services and a decision was made based on value for money and the applicant's knowledge of the charity. 

Page 18