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2021-04-05-accounts

A J B HUDSON MEMORIAL CHARITY

Registered Charity Number 227925

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TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENT

YEAR ENDED 5 APRIL 2021

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Reference and Administrative Information

Trustees

The Colonel of The Mercian Regiment (ex-officio) represented by Colonel Harry John Lowles C.B.E., formerly of The Worcestershire Regiment*

Charles Alexander Burnell Hudson Colonel John Hamlyn Bryant, formerly of The Worcestershire Regiment Captain David James Bezzant, formerly of The Worcestershire Regiment Adam Elliot Knowles David Charles Waldron, County Chairman, Worcestershire Royal British Legion* Gabriel Charles More Hudson

Treasurer

Neil Smith

Secretary

Dr Amanda Tanfield

Chaplain

The Reverend Canon Roger Spiller

Principal Office

Wyke Manor, Main Street, Wick, Pershore, Worcestershire, WR10 3NZ

Charity Number: 227925

Accountants

Folkes Worton, 15-17 Church Street, Stourbridge, West Midlands, DY8 1LU

Bankers

CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ

Investment Managers*

M&G Charities, PO Box 9038 Chelmsford, CM99 2XF

CCLA Investment Management Ltd, COIF Charity Funds, 85 Queen Victoria Street, London, EC4V 4ET

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Report of the Trustees for the Year Ended 5 April 2021

  1. The Trustees present their annual report and financial statement for the Trust for the year ended 5 April 2021. The financial statements have been prepared in accordance with the Trust’s governing document, the Charities Act 2011 and the Charities Statement of Recommended Practice (FRS 102).

Structure, Governance and Management

  1. The Trust is a registered charity, registered with the Charity Commission on 4 November 1965 under registered charity number 227925, and is constituted by Schemes of the Charity Commission dated 15 April 1958, 25 August 1965, 11 March 1997 and 12 September 2001, and the Resolution adopted on 6 October 2020.

  2. Up until 6 October 2020, the composition of the Trustee Board was as set out in the Scheme of the Charity Commission dated 11 March 1997. This provided for a minimum of eight Trustees, made up of one ex-officio Trustee, two nominated Trustees and five co-opted Trustees. Co-opted Trustees served a term of five years and nominated Trustees served a term of four years. Under the amending Resolution adopted on 6 October 2020 (see paragraph 13), the Trust will have a minimum of five and a maximum of eight Trustees (currently there are seven). The categories of ex-officio and nominated Trustees were abolished. Existing Trustees were reappointed for periods of three, four or five years; future Trustees will be appointed for five years.

  3. At the regular Trustees’ meetings, the Trustees agree the broad strategy and areas of activities for the Trust, including consideration of investment, reserves and risk management policies and performance. The Trustees meet twice a year and as/when required. The day-to-day administration is delegated to the Secretary.

  4. New Trustees are appointed by the existing Trustees. The Trust complies with the ICSA guidance note Charity Trustee Recruitment . Trustee recruitment takes into account experience, empathy and knowledge of the Trust as well as the need to maintain the skills and composition of the Trustee Board. The Trustees actively seek those with a knowledge of the local regiments and/or service.

  5. On appointment, Trustees sign a declaration of acceptance and of willingness to act in the trusts of the Charity, in accordance with the Trust’s governing document. The induction process follows the ICSA good practice guide, with the induction programme for a newly-appointed trustee being led by the Secretary, to include a meeting with the Chairman and Secretary on the powers and responsibilities of the Trustee board and the Trust’s assets, investments, policies and activities. The welcome pack includes, amongst other information and guidance, a brief history of the Trust, Trustee board composition and recent board minutes, the last three years’ annual reports and accounts, a copy of the Trust governing document, and a copy of the Charity Commission guidance booklet, The essential trustee: what you need to know, what you need to do . Trustees and officers are also required to sign the Trust’s Code of Conduct and Data Protection Policy.

  6. All Trustees give of their time freely and no Trustee remuneration was paid during the year. Details of Trustee expenses and related party transactions would be disclosed in the accounts. There were none to be disclosed in this financial year. Trustees are required to disclose all relevant interests and register them with the Secretary and, in accordance with the Trust’s policy, to withdraw from decisions where a conflict of interest arises.

2

Objectives and Activities for the Public Benefit

  1. The Trust was established through the Will of the late Caroline Elizabeth Hudson of Wyke Manor, Wick, near Pershore, Worcestershire, in memory of her son, Lieutenant Alban John Benedict Hudson, who died in action during the first World War.

  2. The object of the Trust is the assistance of disabled ex-service personnel of the Armed Forces of the Crown and ex-service personnel who are in need. The Trust does not actively fundraise and seeks to continue the charitable work desired by the Settlor through the careful stewardship of its existing resources, the income to be applied for the relief of ex-service personnel of the Armed Forces of the Crown who are disabled and/or in need (preference being given to ex-members of The Worcestershire Regiment and descendant Regiments, currently The Worcestershire and Sherwood Foresters Regiment and The Mercian Regiment).

  3. The charity achieves its object through the provision of affordable Trust housing, situated in Wick. As well as paying for the upkeep and repair of the Trust’s properties, Trust income may be applied for the upkeep and repair of the chapel at Wyke Manor (consecrated in Lieutenant A J B Hudson’s memory) and the performance of divine service therein, so long as services remain open to Trust residents and staff.

  4. The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and when considering their approach to applications from prospective tenants of the Trust properties.

Achievements and Performance

  1. The year has been dominated by the ongoing Covid-19 pandemic. The beginning of lockdown necessitated the cancellation of the April 2020 meeting of the Board of Trustees. Essential business was completed by email. The Trustees met by videoconference in October 2020. Although there is no provision for virtual meetings in the Trust’s constitution, which predates the widespread availability of IT, this is allowed under Charity Commission Covid-19 guidance. Trustees are in the process of considering a constitutional amendment to give the Board the permanent option of conducting business electronically.

  2. Last year, the Trust reported that it was pursuing an amendment of its governing document to give it more flexibility on the Trustee Board size and composition. It was proving impossible to find a second nominated Royal British Legion representative, and similar problems were anticipated in finding a new ex-service member of The Worcestershire Regiment (which has been subject to two mergers since the Trust was founded) to act as the ex-officio representative, both of which were constitutional requirements. Trustees therefore adopted a Resolution on 6 October 2020 to abolish the categories of ex-officio and nominated Trustee and set the Board size at 5-8 Trustees. The Board will, if possible, include an ex-service member from Worcestershire; a representative nominated by the Worcestershire County Committee of the Royal British Legion; and a member of the Hudson (Settlor’s) family.

  3. The Resolution adopted by Trustees on 6 October 2020 also amended the constitutional provisions governing financial investments, which were archaically worded, hard for the layperson to interpret, and in parts obsolete. Investment powers are now simply aligned with the latest government legislation, currently the Trustee Act 2000.

3

  1. Financial turmoil associated with the Covid-19 pandemic brought to a head Trustees’ long-standing dissatisfaction with the performance of the Trust’s unit trust investments, managed by M&G Charities and CCLA Investment Management Ltd., in comparison with expected returns on investment property. In September 2020, an ideal investment property in Wick village came onto the market. At their 6 October 2020 Board meeting, Trustees formally decided to liquidate the unit trust portfolio and use the proceeds to purchase this property. The purchase completed in February 2021 and tenants were found the same month. The projected annual rental income is more than double that received from the unit trusts.

  2. There has been no turn-over of Trust beneficiary tenancies over the past year, with all seven Trust beneficiary properties being let for the full period. A number of routine maintenance and refurbishment tasks have been completed. Rents for these seven properties are currently set at some two-thirds below market rates.

Financial Review

  1. The Trust’s work is entirely reliant on rental income and, until October 2020, investment return from its unit trust portfolio. As reported in paragraph 15, the Trust reinvested its unit trust portfolio into an investment property. The Trust’s gross income for the year amounted to £28,626 and expenditure to £10,435. Liquidation of the unit trust portfolio produced a gain of £52,951. Details are shown in the accounts for the year. The balances in the Trust’s CAF bank accounts at the year-end were as follows:

  2. CAF Bank – Gold Account £6,645

  3. CAF Bank – CafCash Account £1,000

Reserves Policy

  1. The Trustees maintain an Extraordinary Repairs Fund, as authorised by the Scheme dated 11 March 1997. The Trustees maintain revenue reserves at a level which allows the Trust to meet short term operating requirements (planned and unforeseen maintenance and other operating expenses of its estate) and to cover any periods of reduced rental income, and to fund larger projects, such as property improvements, in the longer term. Trustees are currently working on amending the Trust’s reserves policy and constitutional provisions in line with the investment decisions reported in paragraph 15.

Approved by the Trustees and signed on their behalf by:

Charles Alexander Burnell Hudson

Chair of Trustees

4

B.HU 792 Folk¢s Wollon LLP 15-17 Cbvrch Sire Stourbridge Wc5t Midlands DY8 ILU

AJ.& HUDSON MEMORIAL TRUST CONTENfs OF THE STATEMENTS OF ACCOU FOR THE YEAR ENDED 5 APRIL 2021 Poge Accountants, report Income and expenditure account B81ance sheet Notes to tht F￿a￿e1a] statements

J.B. HUD ORI ACCOUPUANTS. REPORT HEYE REND We report on the accounts for the period ended 5 April 2021 set out 011 Pages 2 to 5. Re5pectlve r¢sponslbllltles of trnstees And 8etollntants The ¢harity'S trustees arc responsible for thc prcparauon of tbe financial statemcnts. Thc charity's truyiccs ¢on5ider that an audit l5 Eiot requircd for this year (under Section 144 {21 of the Charities Act 2011} and that all illdepeudent examination is required. It is our responsibility to.. - exa￿Ulle the accounts under Section 145 ofilie 2011 ACL - follow the procedures laid down in the Gener81 Directions 8iven by the Charity Commission {uDder Section 145 {5llb) of the 2011 Aci)., alld - Éiale whether ptirticu12r matters have ¢ome to our attet)tiott. Basffis 0(our report Our ¢xaminxiion was fj8rri¢d out iu ¢¢ordaTh￿ with th¢ G¢net81 Dir¢¢uon$ given by Th¢ Charity Commis$ion. n]snation inGlud¢5 a r¢vscw of th¢ aGGounting T¢rords kwt bythe ¢h8rity and a ¢o]rp8rison of th¢ a¢¢owits prescnted with those records. It a150 inch]dc8 consideratioTh of any unusual ims or disc105ur65 in the accounts, and seeking explanations from you as tN5tces conccrning such nutters. The procedures undertaken do not provide all th¢ ¢vid¢tt¢e tbat would bc requir¢d in an audit. and consequently no opinion is given as to whether th¢ &¢counts pr¢s¢nl a'tru¢ and fair view. and th¢ T¢POrt i$ limited lo those matters set out in the statements below. Reporting &¢countonts' 5taternent In cotjncction with our cxaminatiotl, no matt¢r h•¥ ¢tsJn¢ lo our att¢ntion.' (11 which giv¢s us rrfystsnabl¢ ¢ay$¢ to b¢li¢ve thar in Any m2ierial ￿speCt the requrenwits - to kecp accountills records accordance with sectio￿ 41 of the A¢t' - ￿ prepare 8ccounts in accord with the accounting record5 and to colnply with the accounting wuireTneThts of the 2011 Act Ikav¢ not be¢n m¢L or (2) in which. in our OPiEJion. atttntion Should be drawn in ord¢r to enoble proper understanding of th¢ a￿O￿nts 10 be ￿￿ched. Folkes Worton LLP ChArterod Actountants 15-17 Church Street Slourbridge West Midlands DY8 ILU S O¢tober 2021 Pa￿]

A.J.B. HUDSON MEMORIAL TRUST STATEMEINT OF FINANCIAL ACTIVITI FOR THE YEAR ENDED 5 APRIL 202 Unrc8trictcd Restricted iticome income nd8 fijnds Total bjnds 2021 Total fijiids 2020 Endovrnient futtds Notes COME Rents received Ibeneficiariesl Rents teceiv¢d linvtStrrKnt) Garage rental Uividend Income trom urtit twsts CAF & COIF inieresr 23,847 1.670 468 2.615 26 23.847 1.670 468 2,615 26 23.489 4,280 65 TOTAL IPICOME 28,626 28.626 27.834 Salary and cxpense5 of secretary Audii and attourtiAttcy charges Professional fees ttiting frcs In$uThnr¢ Repairs attd maititeJJaD¢¢ of Trust Hous¢ Bank charges Chaplain's ¢xpEns TOTAL EXPENDITURE 1,700 696 1.457 615 2.362 3,136 69 400 1,700 696 1,457 615 2 J62 3.136 69 400 1.700 672 2,260 8202 60 400 10,435 10.435 13,294 NET INCOMEI{EXPENDITURE) N¢1 gainFJllosses} on investnieni$ NET MOVEMENT IN FUNDS 14,540 52.951 71,142 71,142 14.S40 RECOIYCILIATION OF FUNDS Total fund5 bTOUEhi forward TOTAL FUNDS CARIUED FORWARD 221.771 292,913 221.771 292913 207 31 221,771 Page 2

A.J.B. HUDSON MEMORIAL TRUST T SAPIUL202 2021 2020 Notes FtXED ASSETS Tangible a8sets Inves￿ents at hi5tOTLcal cost 296 J21 66,321 105,597 296J21 171,918 CURRENT ASSETS Debiers Cash at bank 4.100 7,645 2,630 50,5(X) 11,805 53,130 CREDrroRS Amounts fallin8 due within one year IL>ng terni 7,213 8,000 3,277 15.213 3.277 NET CURRENT ASSETS 13.408} 49.853 NET ASSETS 292.953 221.771 CAPITAL AND RESERVES Capital aecouLI Extraordinary r¢paiT5 fwid Rev¢nu¢ r¢5¢rv¢5 124.111 2.314 166.488 2.254 95.406 TOTAL FUNDS 2929L3 221771 The finkneiil stAtettrrtts on pages 2 to 3 were approved by the trustees on 5 Ociober 2021 and signed on their behalf by.. on 07110r21 é 14.. Mr C.A.B. Hudson IChlnnan) The notes on p8es 4 to 5 form part of th¢s¢ fiJ)aDrial stat¢m¢nts. Page 3

FOR THE YEAR ENDLD 5 APRIL 2021 I CHARITY EXPENDITURE ANALYSIS 2021 2020 salary a￿] exp￿￿¢5 of S￿retary 1.7(KJ The SeeteEary{siw¢ Awil 2017) 1$ th¢ Chairfs sisier-in-iaw. 2 TANGIBLE FIXED ASSETS Hou5e5, land Chapel ond ¢Dttages Fumiiure & I Wick Total COST Ai 6 April 2020 Addi110115 66,320 234).000 65 66,385 230,0(KI At 5 Aptil 2021 65 DEPRECIATION At 6 Apnl 2020 Chor8e foryear 64 At 3 Ay,;1202I 04 NET BOOK VALUE Ai 6 April 2020 66,321 At 5 Arffil 2021 290.321 Market value at 051tMr2021 MarkeE vakne at 05104121)20 2,690,ODO 1.419.766 A new propcrty was PUT¢hased in February 2021. N.B. Pmious yearpropertyvaluaiions used UWTanc¢ T¢buitd estimate5. This yetr8 fwte is A fiLll tDark£tvllh]3tion' the Tebuild esllmate for CODJparisoll is £1.643.071 3 1TrUANGIBLE FIXED ASSETS M3Tk¢¢ Market V81u¢ 21 v*hw at 0510412021 0610412020 Cost at 0&0412020 Addition4 Prvfit I l(k85 disposals OD sale Cost at 05A)412021 V#riAblE Inv¢stuwn COIF Chaiitics Inve51menl Fund Income ShÈrys (4.4651 48,743 176,6831 27,940 64,156 COIF IDvesttDent Accumujation ShaTes12721 21,217 153,2051 31,988 43.835 Clwsfund- E4uitiE8 Investsnethi Ful￿{2.381) 35,637 I28.6(￿) 16.977) 27,328 TOTAL INVESTMXNTS 158548 135319 All Unit Trusts were sold in October 2020 and the PToceeth reinvtsted proptxty. Page 4

HUDS NOTES TO THE ACCOUNTS FOR THL YEAR ENDED 5 APRIL2021 4 DEBTORS.. AMouTrns FALLING DUE W￿HIN ONE YEAR 2021 2020 Prepaid insurdnce D¢posii Proiects(fft Schemc 2J84 .776 4.160 2.110 520 5 CASH AT BANK 2021 2020 CA V ChaTlty S¥ivI￿¥ A¢L(K4ni COIF ChaTiliBs Account CAF Gold A¢¢ouni 1.00 67 49.433 6.645 7.645 50,500 Th¢ COIFCharititt% A¢couDI was ¢knsed in thiobtr 2020. 6 CREDITORS: AMOUNTS FALLING DVE WITHIN ONE YEAR 2W21 2020 A¢¢Ned maintenane¢loth Accrued accounthncy fc¢ Prepaid 8aTrgE re￿ts1 inrtin TenanL D¢posits 2,401 696 1340 1,776 1085 672 520 7 CREDITORS: LONG TERM 2020 8,000 8.000 The Chainnan I0￿ed £12,000 inter¢51 free for Property purchas¢ in Oerober 20201£4.0(M) 5in¢t r¢paidl. 8 CAPITAL AND RESEKVES ExtrAorditiary rePa￿S Iljnd C8pitsI attounl Revenue yeserves Toial At 6 April 2020 SurplU￿(dericItl for the yeDr A2￿Ual ¢onttibution 2,254 95,406 71.142 1601 221,771 71,142 At 5 April 2021 2,314 166,488 292,913 Pige 5