REGISTERED CHARITY NUMBER: 227375
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
FOR
THE ROSAZ CHARITY
Chariot House Limited Chartered Accountants
44 Grand Parade Brighton East Sussex BN2 9QA
THE ROSAZ CHARITY
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
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Report of the Trustees 1 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 14
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THE ROSAZ CHARITY
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
In 1876, M. Francois de Rosaz, a French gentleman bequeathed to Trustees a sum in consols, the proceeds of which were to be used to establish and run a local orphanage. Included in conditions of the bequest was that children were to be brought up in the protestant faith. By 1988, government policy had focused on placing children in care with foster parents, and so unfortunately the opportunity no longer existed to provide a permanent residence and a Christian home life to children in need, and the home was closed and subsequently sold.
Following consultation and the advice of the Charity Commissioners, the aims of the Trust are now focused on giving financial support to children and young people throughout East and West Sussex, who are in need of care and attention by reason of being deprived of a normal home life. This financial support is often made through church groups and other charitable organisations that offer 'hands on' support to children and young people.
Public benefit
The Trustees have complied with their duty under section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commissioners and confirm that all the grants made within the period of these accounts support the aims and objectives of the Charity as set out above.
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
ACHIEVEMENT AND PERFORMANCE
Charitable activities
Like most organisations, the Trust has been affected by the COVID situation during the past 12 months, primarily in terms of rents received and our property renovations.
A substantial renovation programme was started in 2019 and the majority of the works were completed during that year. It was assumed that the final issues would have been finished early in 2020. Our planned starting dates that coincided with the better weather of the spring months was also the start of the first COVID lock down. All works were put on hold except for emergencies.
The renovations commenced in the autumn and 2 houses were completed. The outstanding jobs on the other 2 houses were planned for early 2021.
One property became vacant in July and was placed on the market with a view to invest the majority of the sale proceeds with the YMCA on the same arrangements that were made in the previous year. The sale is progressing and a completion is expected before March 2021.
Annual rent increases were due in April on 3 of the 4 properties and it was agreed to postpone these increases due to COVID for a 3-month period. It soon became apparent that the COVID situation was still serious and a further 3-month delay of the rent increases was offered and the rents eventually were increased in October 2020. Some rents were reduced on an individual basis, again as a result of potential hardship which was also COVID related.
Grants of £42500 were agreed for the financial year although only £10000 of payments were actually made before the year end. The other payments will be made as soon as possible in 2021 and will not have any bearing on future grants for next year.
The Trust agreed to close the Virgin Money savings account to simplify the banking arrangements.
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
FINANCIAL REVIEW
Investment policy and objectives
The investment strategy since 1988 was to invest in residential properties for income and to provide accommodation for families in need or Christians employed in Christian youth work where the Trust subsidised the rent. Over time, many of the tenant families occupying the houses fell outside the charity benefit criteria as children grew up and moved on. In 2018, it was decided to review the rents being paid, most of which were substantially discounted, with an aim to increase them to market rent. The Trust has taken a staggered approach to these rent increases, taking into account each tenants individual circumstances and the aim is likely to take 6 years to achieve.
At the same time, it was also agreed that some of the properties would be sold when they became vacant to enable the Trust to join in partnership with the YMCA DLG to provide supported housing for young people in housing need. Investing in such schemes supports the objectives of the Trust with income received from the investment enhancing our grant giving capacity. The first property was sold in 2019 and it is hoped that a second will be sold in 2020.
The policy aims to ensure that capital appreciation exceeds inflation and takes into account income requirements and the risk profile.
In June 2016, the trustees were advised that the current valuations of the 6 investment properties was £2,495,000 which they regarded as a fair value at the time. In 2019, the properties generated rental income of £49,509 and from which, grants were made of £37,500. The grant figure of £70,950 in these accounts includes grants from 2018 that were agreed in that year from rents of that year but not paid until early 2019.
During 2019, a substantial renovation programme was carried out on 4 of the houses. This was mainly funded from part of the sale proceeds of the sold house. There are further renovations planned for 2020.
On 1 August 2018 the trustees entered into a management agreement for the Rosaz properties to be managed by YMCA DLG who have considerable experience in managing residential properties.
Reserves policy
The trustees to hold a balance of at least £10,000 in reserve to meet any unforeseen expenditure. However, if necessary, they would consider going into a controlled overdraft to meet an urgent need, but at the same time, to ensure that debts never exceed 5% of the asset values.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
The Trust is constituted by a Deed of Charitable Trust dated 31 May 1996; registered Charity Number 227375. The full name of the Charity is The Rosaz Charity, but it operates under its working name of Brighton and Hove Girls Orphanage.
Organisational structure
The Trustees are responsible for the appointment of additional Trustees. The Trustees meet regularly to assess grant applications and manage the investment property portfolio. The day to day administration of the foundation is the responsibility of the administrator, who has authority to approve applications up to £1,000 in order to facilitate a prompt response. The Trustees monitor and receive regular reports from recipients of funds to test for accountability, efficiency and value for money.
Risk management
The Trustees have reviewed the major risks to which the trust is exposed and are confident that controls are in place to mitigate against those risks.
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 227375
Principal address
C/O Chariot House Limited 44 Grand Parade Brighton East Sussex BN2 9QA
Trustees
C C K Butler D Standing R J Overton-Hart C A Stoker A Hart (appointed 1/1/2020)
Independent Examiner
John Thacker DChA FCA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Chartered Surveyors
Mishon Mackay 170 Church Road Hove Sussex BN3 2DJ
Administrator.
Mrs A Hart
BANKERS
Barclays Bank plc PO Box 165 Crawley West Sussex RH10 1YX
Virgin Money PLC Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
Approved by order of the board of trustees on 10th June 2021 and signed on its behalf by:
C A Stoker - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ROSAZ CHARITY
Independent examiner's report to the trustees of The Rosaz Charity
I report to the charity trustees on my examination of the accounts of The Rosaz Charity (the Trust) for the year ended 31st December 2020.
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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
John Thacker DChA FCA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
20th July 2021
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THE ROSAZ CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
| Notes INCOME AND ENDOWMENTS FROM Charitable activities Property income Investment income 2 Total EXPENDITURE ON Charitable activities Costs of running the properties Grants to institutions Total Net gains on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 44,175 17,910 62,085 29,124 29,620 58,744 - 3,341 2,438,275 2,441,616 |
Endowment fund £ - - - - - - - - 5,701 5,701 |
2020 Total funds £ 44,175 17,910 62,085 29,124 29,620 58,744 - 3,341 2,443,976 2,447,317 |
2019 Total funds £ 49,509 108 49,617 115,390 70,950 186,340 56,775 (79,948) 2,523,924 2,443,976 |
|---|---|---|---|---|
The notes form part of these financial statements
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THE ROSAZ CHARITY
BALANCE SHEET 31ST DECEMBER 2020
| Notes FIXED ASSETS Investments Investment property 6 Social investments 7 CURRENT ASSETS Debtors 8 Cash at bank and in hand CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 10 Unrestricted funds Endowment funds TOTAL FUNDS |
Unrestricted fund £ 1,999,299 450,000 2,449,299 12,847 11,270 24,117 (31,800) (7,683) 2,441,616 2,441,616 |
Endowment fund £ 5,701 - 5,701 - - - - - 5,701 5,701 |
2020 Total funds £ 2,005,000 450,000 2,455,000 12,847 11,270 24,117 (31,800) (7,683) 2,447,317 2,447,317 2,441,616 5,701 2,447,317 |
2019 Total funds £ 2,005,000 450,000 2,455,000 9,932 8,858 18,790 (29,814) (11,024) 2,443,976 2,443,976 2,438,275 5,701 2,443,976 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 10th June 2021 and were signed on its behalf by:
C A Stoker - Trustee
The notes form part of these financial statements
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THE ROSAZ CHARITY
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, as modified by the revaluation of certain assets.
Financial reporting standard 102 - reduced disclosure exemptions
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
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.
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
The investment properties were revalued in June 2016 by Damien Dunford, Valuation Manager at Mishon Mackay based on an assessment of the current market.
Taxation
The charity is exempt from tax on its charitable activities.
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.
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
1. ACCOUNTING POLICIES - continued
Going concern - covid 19
The charity has prepared these accounts on a going concern basis, however there are material uncertainties in respect of COVID-19 and management have taken into consideration the existing and potential effects of coronavirus on the activities of the charity in the future.
2. INVESTMENT INCOME
3.
| Deposit account interest Investment income GRANTS PAYABLE Grants to institutions The total grants paid to institutions during the year was as follows: Off the Fence Kidz Club Brighton and Hove City Mission Bishop Hannington St Cuthmans Individually under £500 Holy Cross Church One Church Turning the Tide New Life Church Spear |
2020 £ 9 17,901 17,910 2020 £ 29,620 2020 £ - 10,000 - 1,120 1,500 - - 5,000 12,000 - - 29,620 |
2019 £ 108 - |
|---|---|---|
| 108 | ||
| 2019 £ 70,950 |
||
| 2019 £ 9,000 20,500 10,000 4,000 1,500 130 2,000 2,500 10,000 320 11,000 |
||
| 70,950 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
4. 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.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Charitable activities Property income Investment income Total EXPENDITURE ON Charitable activities Costs of running the properties Grants to institutions Total Net gains on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 49,509 108 49,617 115,390 70,950 186,340 56,775 (79,948) 2,518,223 2,438,275 |
Endowment fund £ - - - - - - - - 5,701 5,701 |
Total funds £ 49,509 108 49,617 115,390 70,950 186,340 56,775 (79,948) 2,523,924 2,443,976 |
|---|---|---|---|
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
6. INVESTMENT PROPERTY
| INVESTMENT PROPERTY | |
|---|---|
| FAIR VALUE At 1st January 2020 and 31st December 2020 NET BOOK VALUE At 31st December 2020 At 31st December 2019 |
£ 2,005,000 |
| 2,005,000 | |
| 2,005,000 |
The investment properties were revalued in June 2016 by Damien Dunford, Valuation Manager at Mishon Mackay based on an assessment of the current market.
7. SOCIAL INVESTMENTS
| MARKET VALUE At 1st January 2020 and 31st December 2020 NET BOOK VALUE At 31st December 2020 At 31st December 2019 |
Other investments £ 450,000 450,000 450,000 |
|---|---|
The social investment is a loan to YMCA DLG to assist with their charitable work.
The loan is for a period of 25 years and interest is payable at 3%.
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|
| Arrears of rent Other debtors |
2020 £ 4,474 8,373 12,847 |
2019 £ 4,984 4,948 |
| 9,932 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other creditors Loan Rents held in advance Accruals and deferred income 10. MOVEMENT IN FUNDS Unrestricted funds General fund Endowment funds Permanent Endowment fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
At 1/1/20 £ 2,438,275 5,701 2,443,976 Incoming resources £ 62,085 62,085 |
2020 £ 10,000 20,000 - 1,800 31,800 Net movement in funds £ 3,341 - 3,341 Resources expended £ (58,744) (58,744) |
2019 £ 7,200 20,000 850 1,764 29,814 At 31/12/20 £ 2,441,616 5,701 |
2019 £ 7,200 20,000 850 1,764 |
|---|---|---|---|---|
| 29,814 | ||||
| 2,447,317 | ||||
| Movement in funds £ 3,341 3,341 |
||||
| 3,341 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1/1/19 £ Unrestricted funds General fund 2,518,223 Endowment funds Permanent Endowment fund 5,701 TOTAL FUNDS 2,523,924 Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 49,617 (186,340) TOTAL FUNDS 49,617 (186,340) |
Net movement in funds £ (79,948) - (79,948) Gains and losses £ 56,775 56,775 |
At 31/12/19 £ 2,438,275 5,701 2,443,976 Movement in funds £ (79,948) (79,948) |
|
|---|---|---|---|
11. RELATED PARTY DISCLOSURES
At 31 December 2020, there were loans from trustees to the charity totalling £nil (2019: £7,200).
During the year, fees of £5,460 were paid to Mrs A Hart, the Administrator for the charity, who is the wife of Mr A Hart, one of the trustees
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