## Sir Malcolm Stewart Bart. General Charitable Trust
(Charity Commission No 227785)
## Accounts
for the year ended 30 September 2023
Sir Malcolm Stewart Bart General Charitable Trust Registered Charity No 227785
## Reference and administrative information
## for the year ended 30 September 2023
|Settlor:|Sir Percy Malcolm Stewart, Baronet, OBE|
|---|---|
|Name of the||
|Charity:|Sir Malcolm Stewart Bart. General Charitable Trust|
||The principal governing document is a deed poll dated 10 July 1945. The|
||settlement is a private charitable trust controlled by its Trustees.|
|Trustees:|David John Szymanski (Chairman)|
||Malcolm Doggett Savory|
||Debra Jayne Hassall|
||Peter John Faulkner|
||Duncan Frank Edwards|
||Hannah Caroline Lawes|
||Keith Harold Stewart|
||When new or additional trustees are appointed by the existing trustees they will|
||be encouraged to receive appropriate training depending on their qualifications|
||and experience|
|Principal Office||
|Address:|Mercer & Hole Trustees Limited|
||72 London Road, St Albans, Herts AL1 1NS|
|Solicitors:|Birketts LLP, Kingfisher House,|
||1 Gilders Way, Norwich, Norfolk, NR3 1UB|
|Reporting||
|Accountants:|Mercer & Hole Trustees Limited|
||72 London Road, St Albans, Herts AL1 1NS|
|Independent||
|Examiner:|Steve Robinson|
||Mercer & Hole LLP|
||72 London Road, St Albans, Herts AL1 1NS|
|Bankers:|Barclays Bank plc,|
||326 – 328 High Holborn, London WC1V 7PE|
|Bursar:|Miss Debra J Hassall|
|Investment||
|Managers:|Rathbones, 8 Finsbury Circus, London EC2M 7AZ|
||The Trustees have wide powers of investment.|
||On 31 October 2000 the Trustees obtained an order under section 26 of the|
||Charities Act 1993 to appoint an Investment Manager and to delegate their|
||investment powers to such manager (including power to appoint a corporate body|
||as nominee to hold the investments of the Charity).|
||In accordance with this power Rathbones have been acting throughout the period|
||covered by these accounts.|
Page 1
## Sir Malcolm Stewart Bart General Charitable Trust
## Registered Charity No 227785
## Trustees’ Annual Report
## for the year ended 30 September 2023
The trustees present their annual report and financial statements of the charity for the year ended 30 September 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and 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 published in October 2019.
## Objectives of the Charity:
The Charity was established by deed dated 10 July 1945 as amended by supplemental deeds dated 26 January 1949 and 31 January 1951.
The 1945 deed provides that the objects of the Charity shall in general be to advance religion and education, to relieve poverty and promote other charitable purposes beneficial to the community and in particular the following purposes:
1. To establish a chapel for the village of Stewartby (including a mausoleum as a memorial to Sir Malcolm Stewart). The chapel having been constructed was transferred to a separate Charity with consent of the Charity Commissioners known as the Stewartby United Church in 1981. The charitable objects set out in the next clause by the 1951 deed were given precedence to the Chapel Trust. The 1951 deed provides that funds should only be made available for the Chapel Trust after full provision has been made for the objects relating to the under-mentioned homes and their occupiers.
2. The establishment maintenance and upkeep of homes at Stewartby for the occupation and use for persons in need as follows:
- (a) Existing or former servants of or connected with London Brick Company Limited (or relatives or dependants of such persons) and in considering candidates for benefit regard shall be had to length of service of such person (or the person to whom the candidate is related or dependant) with the Company.
- (b) The maintenance and support of poor persons occupying such homes.
- (c) If such persons shall be insufficient in number then for any persons whatever in need.
- (d) Should the above trusts fail totally or in part to apply the capital and income of the Charity for any other charitable purposes for the benefit of the inhabitants of Stewartby.
- (e) Subject to the above trusts the Trustees shall hold the capital or income should the prior purposes fail to apply the same towards such purpose or purposes falling within the legal definition of charity as they determine.
Page 2
Sir Malcolm Stewart Bart General Charitable Trust Registered Charity No 227785
## Trustees’ Annual Report
## for the year ended 30 September 2023 (continued)
The principal aims and activities for the trustees is the upkeep of the homes and gardens at Stewartby and to provide a safe and friendly environment for the people who occupy the homes. In order to achieve their objectives, the trustees use the trust funds to maintain the homes and gardens and the general running costs of the estate. The homes are gradually being modernised as appropriate planning permissions are obtained and as funds permit.
|Objectives of the||
|---|---|
|Charity:|The objects of the trust (see above) are clearly of public benefit both directly and|
||indirectly. The Trustees have complied with the duty in part 1, chapter 1, section|
||4 of the Charities Act 2011 to have due regard to public benefit guidance|
||published by the Charity.|
||The Trustees have the power to spend income and capital.|
|Achievements and||
|performance:|The Charity’s main activities and who it tries to help are described above. All of its|
||charitable activities are focussed on achieving its objectives and are undertaking|
||a
modernisation
programme,
subject
to
planning
permissions
and
funds|
||available, of the homes and pathways to further its work towards the benefit of its|
||beneficiaries.|
||The Trustees met three times this year to review the running of the Sir Malcolm|
||Stewart homes, the investment of the trust funds, the financial situation and any|
||other matters arising. They received reports from the bursar who liaises on a|
||regular basis with the other trustees.|
||The day to day running of the homes is in the hands of the wardens who live on|
||site and report to the bursar. The bursar is responsible for supervising the|
||maintenance of the estate.|
||The investment objectives/performance are stated below.|
|Investment||
|Policy:|The investment policy agreed with Rathbones, the Investment Manager, is to|
||generate optimum income for the maintenance of the homes whilst at the same|
||time seeking long term capital growth. For the year ended 30 September 2023,|
||the overall return increased by 3.30% (2022: decreased by 15.018%).|
|Risk Management:|Apart from the risks associated with property and the running of the homes which|
||are covered by comprehensive insurance, the Trustees do not consider that the|
||Charity is exposed to any major risk, other than market risks in relation to its|
||share portfolio.
The Trustees have delegated management of the portfolio to|
||professional managers, though they review their performance regularly.|
|Reserves:|The total reserves of the Charity have decreased by £182,789 during the year|
||ended 30 September 2023 (2022: £284,136). Total unrestricted reserves now|
||held
amount
to
£12,935,093
(2022:
£13,117,882)
and
are
held
for
the|
||maintenance and upkeep of the homes at Stewartby. The value of the|
||investments has decreased resulting in a depreciation of £48,782 (2022:|
||£31,801)
during
the
year.
As
indicated
under
the
Review
of
Financial|
||Transactions (see below) the trustees are taking steps to bring income and|
||expenditure into balance.|
Page 3
Sir Malcolm Stewart Bart General Charitable Trust Registered Charity No 227785
## Trustees’ Annual Report
## for the year ended 30 September 2023 (continued)
Unrestricted Funds: Included in the unrestricted funds is a painting received as part of the distribution from the Estate of Sir Ronald Stewart, who died on 26 January 1999, valued for probate at:
£
Oswald Birley “Portrait of Sir Malcolm Stewart” 500
The Birley is hung in the Community Hall.
In addition, in 2001/02 a portrait bust of Sir Ronald Stewart was commissioned at a cost of £9,988 and this brings the total value of the works of art, as shown on page 8 of the accounts to £10,488 (2022: £10,488).
Sir Ronald had been chairman of the trustees for many years and was a major benefactor of the trust.
Review of Financial Transactions: Against the background of substantial annual deficits, a reduction in the number of ex London Brick employees applying for bungalows and the need to modernise the Trust’s housing stock, the trustees have decided to reduce the size of the estate. They have decided that any bungalows on the west hand end of the estate (Nos 25-44 and 61-86) should be sold on very long leases as retirement homes when vacated by the present beneficiaries unless needed by a new well qualified beneficiary applicant. Purchasers are required to pay service charges for the maintenance of the estate and for the provision of warden services, as are any beneficiaries moving into bungalows on the rest of the estate.
Trustees’ Responsibilities: The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales 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 of the charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities 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 operation.
Page 4
Sir Malcolm Stewart Bart General Charitable Trust Registered Charity No 227785
## Trustees’ Annual Report
## for the year ended 30 September 2023 (continued)
Trustees’ Responsibilities (cont): The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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. Confirmation: The Trustees confirm that the accounts comply with the requirement of the Charity’s governing document and the requirements of SORP 2019 applicable to charities preparing their accounts in accordance with FRS 102.
Signed: .......................................... Date: DJ Szymanski on behalf of the trustees
Page 5
## Sir Malcolm Stewart Bart. General Charitable Trust Registered Charity No 227785
## Independent Accountants Report to the Tenants for the year ended 30 September 2023
This certificate is prepared for the purposes of section 21 of the Landlord and Tenant Act 1985.
Under section 21 of the Landlord and Tenant Act 1985 the landlord is responsible for the preparation of the section 21 statement of account and certificate, and the summary of rights and obligations of tenants relating to service charges. The trustees of the charity in their capacity as the landlord have undertaken responsibility for the section 21 statement.
The statement of account, together with a section 21 certificate, and a summary of the tenant’s rights and obligations in relation to service charges must be supplied to the tenant.
We have been asked to form an independent opinion of whether the section 21 statement of account deals fairly with the matters with which it is required to deal with under section 21 and any regulations, and to report our opinion to the trustees of the charity. This is based on our examination of the accounts, receipts and other documents produced to us on the service charge account.
In accordance with our terms of engagement, we have examined the statement of account in respect of The Sir Malcolm Stewart Bart General Charitable Trust for the year ended 30 September 2023 set out on pages 3 and 4.
We planned and performed our examination so as to obtain the information and explanations we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the statement of account deals fairly with the matters with which it is required to deal, and is sufficiently supported by accounts, receipts, and other documentations which have been made available to us. In view of the purpose for which this statement of account has been prepared, we did not form any opinion as to the reasonableness of costs or payments, or the standard of services or works provided.
In our opinion the section 21 statement of account for the accounting period deals fairly with the matters which it is required and is sufficiently supported by accounts, receipts and other documents.
Signed:
Steve Robinson FCA Mercer & Hole LLP 72 London Road St Albans Herts AL1 1NS
Page 6
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Statement of Financial Activities
## for the year ended 30 September 2023
|Notes
Income and endowments from
Income from charitable activities
Service charges receivable from tenants
2
Investment Income
Dividends
Interest from investment managers (gross)
Expenditure on
Costs of charitable activities
3
Cost of generating funds -
Investment manager's fees
Total expenditure
Net incoming(outgoing) resources before revaluations
and investment asset disposals
Net gains/(losses) on
Investments
6
Property - sales
Property - revaluation at 30 September 2023
5
Net income/(expenditure)
Reconciliation of funds
Total funds brought forward
Total funds carried forward|2023
2022
£
£
95,958
78,118
65,046
51,547
741
487
161,745
130,152
314,236
306,098
10,598
11,128
324,834
317,226
(163,089)
(187,074)
6,643
(412,008)
2,781
37,347
(29,124)
845,871
(19,700)
471,210
(182,789)
284,136
13,117,882
12,833,746
12,935,093
13,117,882|
|---|---|
The charity has no recognised gains or losses other than the results for the period as set out above. The accounting policies and the notes on pages 9 to 14 form part of these accounts. All funds of the charity are unrestricted.
Page 7
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Balance sheet
at 30 September 2023
|
Notes
Fixed Assets
Freehold Property at market value:
Sir Malcolm Stewart Homes and Community
Hall and land at Stewartby, at market value
5
Works of Art
5
Tangible assets
5
Investments
6
Total Fixed Assets
Current Assets
Debtors and prepayments
7
Balance with investment managers
Cash at bank
Cash in hand
Liabilities:amounts falling due within one year
8
Net Current Assets
Total Net Assets of Trust
Represented by
Unrestricted funds
9|2023
2022
£
£
10,548,711
10,353,450
10,488
10,488
5,915
7,756
2,316,372
2,365,154
12,881,486
12,736,848
49,991
24,761
(10,798)
81,311
59,230
313,179
872
873
99,295
420,124
(45,688)
(39,090)
53,607
381,034
12,935,093
13,117,882
12,935,093
13,117,882|
|---|---|
The accounting policies and the notes on pages 9 to 14 form part of these accounts.
Approved by the Trustees on ..……..……................................ and signed on their behalf by
…………………………….……….. DJ Szymanski - Trustee
Page 8
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Accounting policies
at 30 September 2023
1. a) Basis of preparation
- The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting period.
## b) Going Concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
- c) Funds Structure
The unrestricted funds represent the original capital gift to the charity, plus subsequent additions.
The trustees are entitled to use the unrestricted funds in furtherance of the general objectives of the charity at their discretion.
## d) Income
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Dividend income is included net of non-recoverable UK tax credits. Interest from investment managers is received gross and shown gross.
## e) Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and that the amount of the obligation can be measured reliably.
Expenditure consists of;
- Costs of raising funds relating to investments Costs
- Expenditure on charitable activities includes activities undertaken to further the purposes of the charity and their associated support costs.
## f) Freehold Property
The freehold property is included in the accounts at a valuation as determined by the trustees at 30 September 2023 based on recent sales made by the Trust. The buildings are maintained at a high standard for continuous occupation and no depreciation is charged as it would be immaterial in view of the length of the estimated residual life of the properties.
Page 9
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Accounting policies
## at 30 September 2023
## g) Fixed asset investments
- Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
- The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## h) Realised gains and losses
Realised gains represent the profit by comparing the net proceeds of sale of investment with the market value of that investment as at 30 September 2022 or subsequent cost. Unrealised gains represent the difference in market value at 30 September 2023 as compared with the market value at 30 September 2022 or subsequent cost.
i) Valuation, capitalisation and depreciation of other fixed assets The values of the Minibus, Tractor, Cultivator and Mower are depreciated at 25% per annum and the fixtures and fittings at 10% per annum.
The charity capitalises new assets with a value in excess of £250. Anything below this figure is written off as incurred.
The works of art are not depreciated in view of their estimated residual value.
## j) Debtors
- Debtors are amounts owed to the Charity and they are measured on the basis of their recoverable amount.
## k) Liabilities
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis.
## l) Cash at bank and cash in hand
Cash at bank is held to meet the day to day running costs of the charity as they fall due.
## m) Service charges
With effect from 1 July 2010 the trustees introduced a service charge payable by occupiers of all properties allocated after 1 July 2010. The initial service charge was based on the budget for expenditure incurred by the trust in insuring the property, providing wardens services, maintenance of the grounds, administrating the trust and running the community hall and minibus for the year ended 30 September 2011. The service charge for a two bedroomed property was £1,800 and £1,200 for a one bedroom property. With effect from 1 April 2014 this is now adjusted by the movement in the Retail Price Index in the previous year to 30 June.
## n) Pension contibution
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity contribution is restricted to the contributions disclosed in note 4. There were no outstanding contributions at the year-end. The costs of the defined contribution scheme are included within support costs and charged to the unrestricted funds.
Page 10
Sir Malcolm Stewart Bart. General Charitable Trust
## Registered Charity No 227785
## Notes to the accounts
|at 30|September 2023||||
|---|---|---|---|---|
|(continued)||2023||2022|
|||£|£|£
£|
|2.|Service charges receiveable from tenants||||
||Service charge received from tenants||94,502|77,038|
||Service charge due from tenants||1,456|1,080|
||||95,958|78,118|
|3.|Costs of charitable activities||||
||Costs of charitable activities||314,236|306,098|
||The breakdown of costs of charitable activities is as follows||-||
|||2023||2022|
||Upkeep of homes at Stewartby|£|£|£
£|
||Maintenance expenditure||89,570|62,779|
||(including Maintenance assistant's salary)||||
||Salaries||||
||Bursar|36,754||38,995|
||Wardens|30,256||33,644|
||Groundsman|35,904||37,900|
||Community Hall cleaner (inc supplies)|5,860||5,694|
||Groundsman's supplies|7,046||7,696|
||Other garden expenditure|4,308||7,864|
||Water charges|874||824|
||Street/Porch lights|3,713||4,160|
||Common Room Heating/lighting|3,230||2,606|
||Sundry Expenses|541||467|
||Vacant Home charges|12,462||19,075|
||Electricity for garage block|1,992||2,918|
||Properties insurance|32,587||22,730|
||Trustees indemnity insurance|1,463||1,264|
||Minibus expenses|1,468||1,473|
||Benefits to tenants|2,962||2,542|
||Contribution to Church expenses|1,200||1,200|
||||182,620|191,052|
||||272,190|253,831|
||Expenditure||||
||Accountants' charges||||
||Trust accounts|10,800||15,600|
||Independent examination|3,000||2,400|
||Auditor's charges (not previously provided)|-||4,560|
||Depreciation|1,841||2,438|
||Trustees' expenses|266||2,585|
||Administration costs|26,139||24,684|
||||42,046|52,267|
||Total costs of charitable activities||314,236|306,098|
Page 11
Sir Malcolm Stewart Bart. General Charitable Trust Registered Charity No 227785
## Notes to the accounts
at 30 September 2023 (continued)
## 4. Employees and Emoluments
The trustees employ three wardens, one maintenance staff, one cleaner, one bookkeeper and a groundsman. Their combined salary costs amounted to £82,667 (2022: £87,441), including employer's national insurance contribution of £5,238 (2022: £5,424) and pension costs of £1,197 (2022: £2,518).
There are no employees with emoluments above £60,000 (2022: None).
## 5. Fixed and Tangible Assets
## Fixed assets
The trustees have revalued the freehold land and buildings at 30 September 2023 based on recent sales of the bungalows.
|sales of the bungalows.|||||
|---|---|---|---|---|
|Book values
Opening balance
Less: Sale of homes during the year
Upgrading windows expenditure
Revaluation
Closing balance|Freehold
Land and
Buildings
£
10,353,450
(144,500)
368,885
(29,124)
10,548,711|Works
of
Art
£
10,488
-
-
-
10,488|2023
Total
£
10,363,938
(144,500)
368,885
(29,124)
10,559,199|2022
Total
£
9,905,268
(419,080)
31,879
845,871|
|||||10,363,938|
## Tangible assets
|Tangible assets||
|---|---|
|Furniture
fittings and
Tractors
2023
equipment
& Mowers
Minibus
Total
£
£
£
£
Cost
Opening balance
4,899
29,828
15,764
50,491
Closing balance
4,899
29,828
15,764
50,491
Depreciation
Opening balance
4,237
24,839
13,659
42,735
Charge for year
67
1,247
527
1,841
Closing balance
4,304
26,086
14,186
44,576
Net book values
Closing balance
595
3,742
1,578
5,915|2022
Total
£
50,491|
||50,491|
||40,297
2,438|
||42,735|
||7,756|
Page 12
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Notes to the accounts
## at 30 September 2023
(continued)
|6.
Fixed Asset Investments
Quoted Investments
Market value 30 September 2022
Additions
Disposals
Net realised investment gains/(losses)
Net unrealised investment gains/(losses)
Market value 30 September 2023
7.
Debtors and prepayments
Service charge due from tenants
Income tax recoverable
Dividend receivable
Property vacant home charges reimbursements
Insurance prepayment
8.
Liabilities: amounts falling due within one year
Maintenance expenditure
Salaries
Bursar
Maintenance Assistant
Groundsman's supplies
Street/Porch lights
Electricity for garage block
Vacant home charges
Replacement windows
Benefits to residents
Accountants' charges
Independent examiner's charges
Surveyors charges
Investment managers charges
Administration costs|2023
2022
£
£
2,365,154
2,396,955
1,027,162
1,216,406
(1,082,587)
(836,199)
(6,588)
(175,428)
13,231
(236,580)
2,316,372
2,365,154
2023
2022
£
£
1,456
1,079
4,466
1,728
522
659
370
1,638
43,177
19,657
49,991
24,761
2023
2022
£
£
5,578
966
2,666
3,008
102
-
64
1,143
759
1,176
-
681
-
579
18,779
-
8
247
10,800
21,600
2,400
6,000
1,821
-
2,560
2,681
151
1,009
45,688
39,090|
|---|---|
Page 13
Sir Malcolm Stewart Bart. General Charitable Trust
Registered Charity No 227785
## Notes to the accounts
at 30 September 2023
(continued)
## 9. Funds
|The unrestricted funds are represented by:
Accumulated Surplus
Revaluation Reserve|2023
2022
£
£
9,325,746
9,479,411
3,609,347
3,638,471
12,935,093
13,117,882|
|---|---|
## 10. Related Party Transactions
Debra Hassall received payment of £36,754 (2022: £38,995) for her services as the Bursar. Trustee expenses were reimbursed in the year totalling £266 (2022: £2,585).
The above payments are permitted by the trust deed and no other trustee received payment for their services as trustee.
The charity's property is registered in the names of the trustees.
## 11. Independent Examiner's remuneration
The remuneration constituted an independent examination fee of £3,000 including VAT (2022: £2,400).
## 12. Controlling Party
The charity is controlled by its trustees but no one trustee has overall control.
Page 14