REGISTERED CHARITY NUMBER: 227375
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021
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 2021
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Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 12
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021
The trustees present their report with the financial statements of the charity for the year ended 31st December 2021. 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.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
Like last year, COVID continued to have some impact on the Trust in terms of rents collected, but this was less severe than in the previous 12 months.
The property renovation programme that has been in progress for some time and was delayed due to COVID has finally been completed and the full management of our remaining 4 houses including all future maintenance has been handed over to the YMCA DLG.
The property that became vacant last year and was on the market has been sold and the majority of the sale proceeds has been invested with the YMCA DLG on the same terms as the original investment in 2019.
Grants to various local charities of £59,570 were agreed for 2021 and were all paid out before the year end.
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021
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 subsidies 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 a second in 2021.
The policy aims to ensure that capital appreciation exceeds inflation and takes into account income requirements and the risk profile.
The 4 remaining houses were re-valued in October 2021 at £2,125,000 with market rental values of £6,600.00 per month. Our actual monthly rental income at the year end was £4,293.00 and we continue with the annual increment plan for each tenant with an aim to get to market rent eventually.
In addition, our investment income is £6,375.00 per quarter.
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.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number
227375
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THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021
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
Independent Examiner
John Thacker DChA FCA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Administrator.
Mrs A Hart
BANKERS
Barclays Bank plc PO Box 165 Crawley West Sussex RH10 1YX
Approved by order of the board of trustees on 22nd September 2022 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 2021.
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
28th September 2022
Page 4
THE ROSAZ CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021
| 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 RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 50,024 22,362 72,386 34,363 59,570 93,933 562,933 541,386 2,441,616 2,983,002 |
Endowment fund £ - - - - - - - - 5,701 5,701 |
2021 Total funds £ 50,024 22,362 72,386 34,363 59,570 93,933 562,933 541,386 2,447,317 2,988,703 |
2020 Total funds £ 44,175 17,910 |
|---|---|---|---|---|
| 62,085 | ||||
| 29,124 29,620 |
||||
| 58,744 | ||||
| - | ||||
| 3,341 2,443,976 |
||||
| 2,447,317 |
The notes form part of these financial statements
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THE ROSAZ CHARITY
BALANCE SHEET
31ST DECEMBER 2021
| 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 £ 2,119,299 850,001 2,969,300 14,785 20,777 35,562 (21,860) 13,702 2,983,002 2,983,002 |
Endowment fund £ 5,701 - 5,701 - - - - - 5,701 5,701 |
2021 Total funds £ 2,125,000 850,001 2,975,001 14,785 20,777 35,562 (21,860) 13,702 2,988,703 2,988,703 2,983,002 5,701 2,988,703 |
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 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 22nd September 2022 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 2021
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 October 2021 by Dean & Co Estate Agents 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 2021
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
| 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 Holy Cross Church One Church Turning the Tide Spear |
2021 £ 2 22,360 22,362 2021 £ 59,570 2021 £ 10,000 5,000 5,000 1,420 3,000 150 10,000 15,000 10,000 59,570 |
2020 £ 9 17,901 |
|---|---|---|
| 17,910 | ||
| 2020 £ 29,620 |
||
| 2020 £ - 10,000 - 1,120 1,500 - 5,000 12,000 - |
||
| 29,620 |
3. GRANTS PAYABLE
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.
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 INCOME 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 |
Total funds £ 44,175 17,910 |
|---|---|---|---|
| 62,085 | |||
| 29,124 29,620 |
|||
| 58,744 | |||
| 3,341 2,443,976 |
|||
| 2,447,317 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021
6. INVESTMENT PROPERTY
| FAIR VALUE At 1st January 2021 Disposals Revaluation At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 Fair value at 31st December 2021 is represented by: Valuation in 2021 |
£ 2,005,000 (320,000) 440,000 2,125,000 2,125,000 2,005,000 £ 2,125,000 |
|---|---|
The investment properties were revalued in October 2021 by Dean & Co Estate Agents based on an assessment of the current market.
7. SOCIAL INVESTMENTS
| MARKET VALUE At 1st January 2021 Additions At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 |
Other investments £ 450,000 400,001 850,001 850,001 450,000 |
|---|---|
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%.
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021
| 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Arrears of rent Other debtors 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Loan Accruals and deferred income 10. MOVEMENT IN FUNDS At 1/1/21 £ Unrestricted funds General fund 2,441,616 Endowment funds Permanent Endowment fund 5,701 TOTAL FUNDS 2,447,317 Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 72,386 (93,933) TOTAL FUNDS 72,386 (93,933) |
2021 £ 3,490 11,295 14,785 2021 £ - 20,000 1,860 21,860 Net movement in funds £ 541,386 - 541,386 Gains and losses £ 562,933 562,933 |
2020 £ 4,474 8,373 12,847 2020 £ 10,000 20,000 1,800 31,800 At 31/12/21 £ 2,983,002 5,701 |
2020 £ 4,474 8,373 12,847 2020 £ 10,000 20,000 1,800 31,800 At 31/12/21 £ 2,983,002 5,701 |
2020 £ 4,474 8,373 |
|
|---|---|---|---|---|---|
| 12,847 | |||||
| 2020 £ 10,000 20,000 1,800 |
|||||
| 31,800 | |||||
| 2,988,703 | |||||
| Movement in funds £ 541,386 541,386 |
|||||
| 541,386 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1/1/20 £ Unrestricted funds General fund 2,438,275 Endowment funds Permanent Endowment fund 5,701 TOTAL FUNDS 2,443,976 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 62,085 TOTAL FUNDS 62,085 |
Net movement in funds £ 3,341 - 3,341 Resources expended £ (58,744) (58,744) |
At 31/12/20 £ 2,441,616 5,701 |
At 31/12/20 £ 2,441,616 5,701 |
|---|---|---|---|
| 2,447,317 | |||
| Movement in funds £ 3,341 3,341 |
|||
| 3,341 |
11. RELATED PARTY DISCLOSURES
During the year, fees of £5,760 (2020: £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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