REGISTERED CHARITY NUMBER: 227375
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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 31 DECEMBER 2022
| 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 |
THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. 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 charity takes its name from a French gentleman, Chevalier François de Rosaz, who arrived in the UK after the 1848 French Revolution. He bequeathed a sum in consols, the proceeds of which were to be used to establish and run a local orphanage. Included in the conditions of the bequest was that children were to be brought up in the protestant faith.
Following de Rosaz's death in 1876 the amount of his bequest was deemed insufficient to support an orphanage so the funds were linked with the existing Brighton Female Orphan Asylum, founded in 1823, to form what eventually came to be known as the Rosaz Charity. This charity celebrates 200 years of operation in 2023.
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
The impact of COVID has significantly reduced but the UK in general has been hit with a 'cost of living' crisis, which has also had worldwide implications. Our tenants are not immune to these issues and the trustees decided to reduce the planned rent increases due to take effect from 1st April 2022 by 50%.
The management of the 4 remaining properties is being undertaken by the YMCA DLG.
The trustees are currently reviewing the relationships we have with our managing agents and legal representation."
Grants to various local charities of £65,223 were agreed for 2022 and were all paid out before the year end.
Page 1
THE ROSAZ CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW
Investment policy and objectives
The investment strategy since 1988 was to invest in residential properties to create an income and to provide accommodation for families with children in need. Rents were agreed below market levels to assist the tenants. Over time, some of the tenant families' circumstances changed and they fell outside of the charity criteria to benefit from the accommodation or rent discounts. In 2018, it was decided to review the rents being paid, with an aim to increase all rents to market levels. The Trust has taken a staggered approach to these rent increases, taking into account each tenants individual circumstances. We are already 4 years into this period of increase and it is likely to be at least another 4 years before the original aim is met.
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 revalued in October 2021 at £2,125,000.00 with market rental values of £6.600.00 per month. Our actual monthly rental income at the year end was £4269.00 and we continue with the annual increment plans as mentioned above.
In addition, our investment income was £6375.00 per quarter and this has been increasing as a result of the increasing bank of England interest rates.
Reserves policy
The trustees are to hold a balance of at least £10,000.00 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. In reality, there has not been any occasion when borrowing funds was required.
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 31 DECEMBER 2022
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 Dr Shona F Wardrop C.A 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 24 October 2023 and signed on its behalf by:
C A Stoker - Trustee
Page 3
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 31 December 2022.
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.
Dr Shona F Wardrop C.A The Institute of Chartered Accountants of Scotland
Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
24 October 2023
Page 4
THE ROSAZ CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| 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 £ 53,199 25,526 78,725 24,918 65,223 90,141 - (11,416) 1,207,516 1,196,100 |
Revaluation Reserve £ - - - - - - - - 1,630,486 1,630,486 |
Endowment fund £ - - - - - - - - 5,701 5,701 |
2022 Total funds £ 53,199 25,526 78,725 24,918 65,223 90,141 - (11,416) 2,843,703 2,832,287 |
2021 Total funds as restated £ 50,024 22,362 |
|---|---|---|---|---|---|
| 72,386 | |||||
| 34,363 59,570 |
|||||
| 93,933 | |||||
| 417,933 | |||||
| 396,386 2,447,317 |
|||||
| 2,843,703 |
The notes form part of these financial statements
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THE ROSAZ CHARITY
BALANCE SHEET 31 DECEMBER 2022
| Notes FIXED ASSETS Investments Investment property 7 Social investments 8 CURRENT ASSETS Debtors 9 Cash at bank and in hand CREDITORS Amounts falling due within one year 10 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES PROVISIONS FOR LIABILITIES 11 NET ASSETS FUNDS 12 Unrestricted funds Endowment funds TOTAL FUNDS |
Unrestricted fund £ 343,813 850,001 1,193,814 21,717 2,507 24,224 (1,938) 22,286 1,216,100 (20,000) 1,196,100 |
Revaluation Reserve £ 1,775,486 - 1,775,486 - - - - - 1,775,486 (145,000) 1,630,486 |
Endowment fund £ 5,701 - 5,701 - - - - - 5,701 - 5,701 |
2022 Total funds £ 2,125,000 850,001 2,975,001 21,717 2,507 24,224 (1,938) 22,286 2,997,287 (165,000) 2,832,287 2,826,586 5,701 2,832,287 |
2021 Total funds as restated £ 2,125,000 850,001 2,975,001 14,785 20,777 35,562 (1,860) 33,702 3,008,703 (165,000) 2,843,703 2,838,002 5,701 2,843,703 |
|---|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 24 October 2023 and were signed on its behalf by:
C A Stoker - Trustee
The notes form part of these financial statements
Page 6
THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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 31 DECEMBER 2022
2. INVESTMENT INCOME
| Deposit account interest Investment income 3. 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 St Richards Youth YMCA |
2022 as £ 26 25,500 25,526 2022 as £ 65,223 2022 as £ 5,000 13,881 5,000 1,342 5,000 - 5,000 10,000 5,000 10,000 5,000 65,223 |
2021 restated £ 2 22,360 22,362 2021 restated £ 59,570 2021 restated £ 10,000 5,000 5,000 1,420 3,000 150 10,000 15,000 10,000 - - 59,570 |
|---|---|---|
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
| 5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL Unrestricted fund £ INCOME AND ENDOWMENTS FROM Charitable activities Property income 50,024 Investment income 22,362 Total 72,386 EXPENDITURE ON Charitable activities Costs of running the properties 34,363 Grants to institutions 59,570 Total 93,933 Net gains on investments 122,933 NET INCOME 101,386 RECONCILIATION OF FUNDS Total funds brought forward 1,106,130 TOTAL FUNDS CARRIED FORWARD 1,207,516 |
ACTIVITIES Revaluation Reserve £ - - - - - - 295,000 295,000 1,335,486 1,630,486 |
Endowment fund £ - - - - - - - - 5,701 5,701 |
Total funds as restated £ 50,024 22,362 |
|---|---|---|---|
| 72,386 | |||
| 34,363 59,570 |
|||
| 93,933 | |||
| 417,933 | |||
| 396,386 2,447,317 |
|||
| 2,843,703 |
6. PRIOR YEAR ADJUSTMENT
The figures for the year ended 31st December 2021 have been restated for:
| £ | |
|---|---|
| Original net movements in funds | 541,386 |
| Net gains on investments reduced by | (145,000 ) |
Restated net movements in funds |
396,386 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
7. INVESTMENT PROPERTY
| FAIR VALUE At 1 January 2022 and 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 Fair value at 31 December 2022 is represented by: Valuation in 2021 |
£ 2,125,000 |
|---|---|
| 2,125,000 | |
| 2,125,000 | |
| £ 2,125,000 |
The investment properties were revalued in October 2021 by Dean & Co Estate Agents based on an assessment of the current market.
8. SOCIAL INVESTMENTS
| MARKET VALUE At 1 January 2022 and 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 |
Other investments £ 850,001 850,001 850,001 |
|---|---|
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 1% over the Bank of England's base rate subject to a minimum of 3%.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Arrears of rent Other debtors Prepayments and accrued income |
2022 as £ 5,882 9,460 6,375 21,717 |
2021 restated £ 3,490 11,295 - |
|---|---|---|
| 14,785 |
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Accruals and deferred income 11. PROVISIONS FOR LIABILITIES Provisions 12. MOVEMENT IN FUNDS Unrestricted funds General fund Revaluation Reserve 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 1/1/22 £ 1,207,516 1,630,486 2,838,002 5,701 2,843,703 Incoming resources £ 78,725 78,725 |
2022 £ 1,938 2022 £ 165,000 Net movement in funds £ (11,416) - (11,416) - (11,416) Resources expended £ (90,141) (90,141) |
2021 as restated £ 1,860 2021 as restated £ 165,000 At 31/12/22 £ 1,196,100 1,630,486 2,826,586 5,701 2,832,287 Movement in funds £ (11,416) (11,416) |
|
|---|---|---|---|---|
continued...
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THE ROSAZ CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
12. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Revaluation Reserve Endowment funds Permanent Endowment fund TOTAL FUNDS |
At 1/1/21 £ 1,106,130 1,335,486 2,441,616 5,701 2,447,317 |
Net movement in funds £ 101,386 295,000 396,386 - 396,386 |
At 31/12/21 £ 1,207,516 1,630,486 |
|---|---|---|---|
| 2,838,002 5,701 |
|||
| 2,843,703 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Revaluation Reserve TOTAL FUNDS |
Incoming resources £ 72,386 - 72,386 72,386 |
Resources expended £ (93,933) - (93,933) (93,933) |
Gains and Movement losses in funds £ £ 122,933 101,386 295,000 295,000 417,933 396,386 417,933 396,386 |
Gains and Movement losses in funds £ £ 122,933 101,386 295,000 295,000 417,933 396,386 417,933 396,386 |
|---|---|---|---|---|
| 396,386 | ||||
| 396,386 |
13. RELATED PARTY DISCLOSURES
During the year, fees of £6,000 (2021: £5,760) were paid to Mrs A Hart, the Administrator for the charity, who is the wife of Mr A Hart, one of the trustees.
Page 12