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2021-12-31-accounts

Charity number: 228031 Company number: 00616679

The Wharfedale Foundation

Report of the Managing Trustees and Financial Statements for the year ended 31[st] December 2021

Contents

Directors’ and Trustees’ Report for the year ended 31[st ] December 2021 ............................................ 3 Reference and Administrative Details of the Charity, its Trustees and Advisors .......................... 3 Structure, Governance and Management .................................................................................. 4 Objectives and Activities ............................................................................................................ 4 Finance Policies ......................................................................................................................... 5 Achievements and Performance ................................................................................................ 5 Financial Review ........................................................................................................................ 6 Statement of Trustees' Responsibilities ............................................................................................. 7 Small Company Rules ................................................................................................................. 7 Independent Examiner’s Report to the Trustees ................................................................................ 8 Statement of Financial Activities for the year ended 31[st] December 2021 .......................................... 9 Balance Sheet as at 31st December 2021......................................................................................... 10 Notes to the Financial Statements for the year ended 31[st ] December 2021...................................... 11

Page 2 of 17

Directors’ and Trustees’ Report for the year ended 31[st ] December 2021

The trustees present their report and independently examined financial statements for the year ended 31 December 2021.

Reference and Administrative Details of the Charity, its Trustees and Advisors

Reference and Administrative Details of the Charity, its Trustees and Advisors of the Charity, its Trustees and Advisors
Charity name The Wharfedale Foundation to 16/03/2022
The Wharfedale Foundation CIO from 16/03/2022
Company number 00616679 to 16/03/2022
Charity registration number 228031
Registered office Flat 2, Pool House
and principal operating address Main Street
Pool in Wharfedale
West Yorkshire
LS21 1LH
Trustees Iain Cloke
Mary Dawson
Hannah Dobson from 02/07/2021
Stewart Graham
Uell Kennedy Chair
Imran Nawaz to 03/07/2021
Nickie Prior from 15/03/2022
Sajda Shah Treasurer
Chris Taylor
John Wilson
Kaye Wilson Vice-chair
Secretary Rachel Boggs
Bankers Unity Trust Bank plc
Four Brindleyplace
Birmingham B1 2JB
Virgin Money
21 Manchester Road
Nelson
BB9 9SD
Barclays Bank UK plc
Leicester
LE87 2BB
Independent examiner Nigel Wyatt BSc. FCA
Wyatt & Co Chartered Accountants
125 Main St
Garforth
Leeds LS25 1AF

Page 3 of 17

Structure, Governance and Management

Governing body

For the year being reported the Board (also known as the Council), whose members are directors of the company and trustees of the charity, is the main governing body of the Charitable Company. Members are elected at full general meetings or by co-option at Council meetings in accordance with the Memorandum and Articles of Association (2009, amended 2015).

Directors (trustees) are usually appointed for a three-year term resulting in some stepping down each year. New trustees are given a copy of the Foundation’s governing documents and information about their roles and responsibilities; this includes relevant information from the Charity Commission as appropriate.

Organisational management

The Board meets at least four times a year to exercise strategic direction, fulfil its governance responsibilities, make decisions on the awarding of grants and oversee the affairs of the company. An annual away day is also held to decide strategic direction for the year ahead. Day to day administration is delegated to the Company Secretary/Administrator.

Objectives and Activities

Charitable objects and mission

The Wharfedale Foundation is a grant-making trust that has its roots in the Christian tradition. We recognise a common practical vision of a better world with those of other faith traditions and none. We therefore support initiatives that bring people together to gain understanding of other faiths and cultures and to work in partnership to improve the neighbourhoods in which they live.

We aim to fund projects that address the divisions in our society by developing greater understanding of social justice and diversity. We provide grants of up to £5,000 although most are for smaller sums.

The Trustees’ aim is to make grants each year of up to at least the equivalent to investment income.

In reviewing our aims and objectives, and in planning the expansion of our services, the trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission. The Foundation continues to provide public benefit by funding projects that:

Risk management

The trustees consider the major risks to which they believe the Foundation is exposed and ensure that appropriate measures are in place to mitigate and manage these risks.

The main risks encountered by the trustees during 2021 have been:

During the coming year the trustees will continue to review the risk assessment process in order to identify and prioritise any other risks to which it is subject and assess whether further controls are required.

Page 4 of 17

Finance Policies

The Trustees wish to manage The Wharfedale Foundation to optimise their ability to support projects that will transform communities in Yorkshire and the Humber. Accordingly, the following principles underpin the financial processes of the Foundation.

Investment policy

The Memorandum and Articles of Association of the charitable company (2009, amended 2015) permit the Council wide powers of investment. The investment policy that had been in place since the formation of the Foundation was to invest in a spread of risks to ensure that there was a reasonable return on investment while maintaining the value of the portfolio.

Grant-making policy

Our aim is to make grants each year of at least the equivalent of our investment income. However, in 2021 the total awarded was only £22,878 (2020: £25,079) against investment income of £35,032 (2020: £33,749).

Reserves policy

The Trustees’ policy is to maintain a working capital cash reserve of 6 months operating costs. The reserves are needed to meet the normal working capital requirements of the charity and the Board are confident that at this level they would be able to continue the current activities of the charity in the event of a reduction in funding.

Trustees’ expenses

We believe that it is right to ensure that no trustee is disadvantaged from offering to serve the Foundation for financial reasons. We therefore pay expenses to trustees to attend meetings and attend to the business of the Wharfedale Foundation at the standard mileage rate allowed by HMRC or the cheapest practical public transport, as appropriate. In 2021, all meetings were held online so this was £nil (2020: £146).

Achievements and Performance

Due to the on-going Covid pandemic, the Trustees’ main objective in 2021 was to continue to fund those organisations meeting our regular criteria who applied to us, whilst taking into account the Covid restrictions applicable at the time in order to safely deliver projects.

Publicising the fund was greatly affected by Covid, due to the reduction in face-to-face funding fairs and events. Online Zoom events became the main means of reaching possible applicants instead and proved to be efficient and effective. However, the number of applications was lower than in the past and fewer grant awards were made.

We had also aimed to generate income for the trust and planned to approach additional donors, but this proved problematic due to our main role as a grant giver, since donors and funders tend to prefer to fund groups providing direct services. We will continue to inform and encourage existing donors, although due to age these are becoming fewer in number over time.

The trustees have continued working towards becoming a Charitable Incorporated Organisation. The main driver for this was to reduce the bureaucratic burden of reporting to both Companies House and the Charity Commission. A draft constitution was developed based upon the Commission’s model Foundation constitution and submitted for review. Unfortunately, the Commission was experiencing a very significant processing backlog and it took several months for even minor amendments to be turned around. A final version was eventually submitted but at the year-end it was still awaiting approval. Approval was received on 16 March 2022, on which date the Wharfedale Foundation ceased to be a company and became a CIO.

Page 5 of 17

Financial Review

During the year total income amounted to £36,500 (2020: £35,572) of which investment income was the main component at £35,032 (2020: £33,749).

Expenditure during the year totalled £26,491 (2020: £33,135). The two main components of expenditure were charitable activities of £19,183 (2020: £25,922) and costs of raising funds of £7,308 (2020: £7,213). New grants totalling £22,878 (2018: £25,079) were awarded during the year however £3,995 of prior year grants were repaid or not drawn due to the impact of Covid restrictions on organisations’ activities.

The net operating profit for the year was £10,010 (2020: £2,437).

Non-operating income in the year totalled £144,973 (2020: £35,685) this being due to unrealised gains on revaluation of investment assets resulting in a net surplus of £154,983 (2020: £38,122).

At the balance sheet date, the Foundation had total equity of £1,194,405 (2020: £1,039,422).

Objectives for the Coming Year

As Covid restrictions are lifted and organisations resume their activities we are anticipating that the need for project funding will increase and application levels will pick up once again, gradually returning to pre-pandemic levels. The trustees are confident that with the reserves built up over the last two years, the foundation is well-placed to respond to the renewed demand and is ready to provide the funding required.

The trustees’ objectives for this year are to:

Page 6 of 17

Statement of Trustees' Responsibilities

Company law 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 company as at the end of the financial year and of the surplus or deficit of the company for that period.

In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking steps for the prevention and detection of fraud and other irregularities.

Small Company Rules

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board on 7[th] July 2022 and signed on its behalf.

Signed:

Uell Kennedy Trustee

Page 7 of 17

Independent Examiner’s Report to the Trustees

I report on the financial statements of The Wharfedale Foundation for the year ended 31[st] December 2021 which comprise the statement of financial affairs, the balance sheet and the related notes.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

This report, including my statement, has been prepared for and only for the charity’s trustees as a body. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body for my examination work, for this report, or for the statements I have made.

Basis of independent examiner’s statement

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Signed:

Date: 10/08/2022

Nigel Wyatt BSc. FCA - Independent Examiner Wyatt & Co Chartered Accountants, 125 Main St, Garforth, Leeds LS25 1AF

Page 8 of 17

Statement of Financial Activities

for the year ended 31[st] December 2021

Including summary income and expenditure account.

Note
Income and endowments
Donations and legacies
2
Investment income
3
Total
Expenditure
Raising funds
4
Charitable activities
5
Total
Surplus/(deficit) before gains/(losses)
Net gains/(losses) on investments
12
Net movement in funds
Transfer between funds
Total funds brought forward
16
Total funds carried forward
16
Unrestricted
Funds
Restricted
Funds
Total
Funds

2021
2021
2021
£
£
£
1,469
-
1,469
35,032
-
35,032
36,500
-
36,500


7,308
-
7,308
19,183
-
19,183
26,491
-
26,491
10,010
-
10,010
144,973
-
144,973
154,983
-
154,983
-
-
-
1,037,423
2,000
1,039,423
1,192,405
2,000
1,194,405
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
1,823
-
1,823
33,749
-
33,749
35,572
-
35,572
7,213
-
7,213
25,922
-
25,922
33,135
-
33,135
2,437
-
2,437
35,685
-
35,685
38,122
-
38,122
-
-
-
999,301
2,000
1,001,301
1,037,423
2,000
1,039,423

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 9 of 17

Balance Sheet

as at 31st December 2021

Note
Fixed Assets
Investments
12

Current Assets
Cash at Bank and in Hand
18
Debtors: Accounts receivable
14

Liabilities
Creditors: Accounts payable
amounts falling due within one year
13

Total current assets less current liabilities
Total net assets
15
Capital and Reserves
Unrestricted
16
Restricted
£
22,937
9,177
2021
£
1,166,008
£
21,956
8,553
2020
£
1,021,035
1,166,008 1,021,035
32,114
3,717
30,509
12,121

28,397 18,388
1,194,405 1,039,423
1,192,405
2,000
1,037,423
2,000
1,194,405 1,039,423

The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with SORP FRS102 and are for circulation to the members of the company. They were approved by the board of directors and trustees on 7[th] July 2021 and signed on its behalf by

Uell Kennedy Trustee

The notes on pages 11-17 form part of these accounts

Page 10 of 17

Notes to the Financial Statements for the year ended 31[st ] December 2021

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2020) (“Charities SORP (FRS 102)”), the Companies Act 2006 and the Charities Act 2011.

The Wharfedale Foundation meets the definition of a public benefit entity under FRS 102.

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 under the historical cost convention, modified to include certain financial instruments at fair value. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The principal accounting policies adopted are set out below.

b) Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the trustees have considered whether in applying the accounting policies required by Charities SORP (FRS 102) the restatement of comparative items was required. The trustees concluded that no restatement is required as any adjustment would be immaterial.

c) Going concern

The charity has sufficient cash reserves to meet its immediate requirements and the ability to reduce grants awarded in the future. Thus the Trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.

d) Income

All incoming resources are recognised as follows:

Page 11 of 17

Notes to the financial statements for the year end 31st December 2021 continued

e) Expenditure and irrecoverable VAT

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 the amount of the obligations can be measured reliably. Expenditure is classified under the following activity headings:

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others may be apportioned on an appropriate basis as set out in note 5.

f) Allocation of support costs

Support Costs are those functions that assist the work of the charity but do not directly relate to charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Foundation’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 9.

g) Operating leases

Rentals applicable in respect of operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred.

Page 12 of 17

Notes to the financial statements for the year end 31st December 2021 continued

h) Value added tax

The majority of the charity’s income is classified as either exempt or outside of the scope for the purposes of value added tax. The charity is not registered for VAT and is not required to be registered for VAT. It is therefore unable to reclaim the value added tax it suffers on its expenditure. Expenditure in these financial statements is therefore shown inclusive of value added tax.

i) Investments

Investments are valued at market value at the year end and any gains or losses on valuation are dealt with in the Statement of Financial Activities.

j) Stock

No account is taken of the stock of pamphlets, which are written off in the year of purchase and are of minimal value.

k) Debtors

Debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a maturity within the 12 months after the balance sheet date.

m) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfers of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value after allowing for any discounts which may be due.

n) Taxation

The Foundation is a registered charity and is exempt from any liability to taxation on its income and capital gains. Income tax is recoverable on donations and is treated as being received in the year in which the corresponding income is received.

o) Exceptional items

Exceptional items are material items, deriving from events or transactions within the ordinary activities of the charity, and which individually or in aggregate are disclosed because of their size or incidence in order that the financial statements give a true and fair view.

p) Financial instruments

The foundation only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 13 of 17

Notes to the financial statements for the year end 31st December 2021 continued

2. Income from donations and legacies

Donations
Legacies
3. Income from investments
Income from UK listed investments
4. Expenditure on raising funds
Bank service charge
Management fees
Miscellaneous
Mobile phone
Printing
Sundry administration costs
Website and IT
5. Expenditure on charitable activities
Grant funding activities
6
Governance costs
7,8
6. Analysis of grant funding activities
Grants awarded
Less previous year grant refunded
Less previous year grants awarded but not drawn down
2021
£
1,469
-
1,469
2021
£
35,032
35,032
2021
£
239
6,362
103
126
-
39
439
7,308
2021
£
18,883
300
19,183
2021
£
22,878
3,000
995
18,883
2020
£
1,823
-
1,823
2020
£
35,749
35,749
2020
£
185
6,362
48
102
-
30
486
7,213
2020
£
25,079
843
25,922
2020
£
25,079
-
-
25,079

Page 14 of 17

Notes to the financial statements for the year end 31st December 2021 continued

Small Grants Programme
Friends of Armana House
The Delphi Trust
Leeds Conversation Club
Westwood 2015
Beats Bus
CEAD
Main Grants Programme
ACross Country
DECSY
Calderdale VoS
Hull YFC
Blackley Centre
Mafwa Theatre
Total
£
£ 420
£ 500
£ 500
£ 500
£ 500
£ 474
£ 2,894
£
£ 4,000
£ 2,100
£ 4,000
£ 5,000
£ 2,700
£ 2,184
£ 19,984
£ 22,878

7. Net income/(expenditure) for the year is stated after charging/(crediting)

Independent examiner’s fee
8. Analysis of governance costs
Professional fees
Meeting room hire
Trustees’ expenses
Other expenses
2021
£
300
300
2021
£
300
-
-
-
300
2020
£
300
300
2020
£
300
84
146
313
843

9. Analysis of staff costs, staff numbers, trustee remuneration and expenses

There were no employees during 2021 (2020: none). No trustee received remuneration for their services during the year (2020: £nil). No trustees received reimbursed expenses during the year (2020: three, £146).

10. Related party transactions

There were no related party transactions during the year.

11. Taxation

The charity’s activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts.

Page 15 of 17

Notes to the financial statements for the year end 31st December 2021 continued

12. Fixed asset investments

Fixed asset investments
Valuation at 1stJanuary 2021
Revaluations
Valuation at 31stDecember 2021
Historical cost as at 31stDecember 2021
Listed
investments
£
1,021,035
144,973
1,166,008
637,000
Total
£
1,021,035
144,973
1,166,008
637,000

All fixed asset investments are held with CCLA in their COIF Charities Investment Fund (77.7%) and COIF Charities Property Fund (22.3%).

13. Creditors: amounts falling due within one year

Accounts payable
14. Accounts receivable
Debtors
15. Analysis of net assets between funds
Fund balances at 31stDecember 2021
as represented by:
Investment assets
Net Current assets
Unrestricted
funds
£
1,166,008
26,397
1,192,405
2021
£
3,717
3,717
2021
£
9,177
9,177
Restricted
funds
£
-
2,000
2,000
2020
£
12,121
12,121
2020
£
8,553
8,553
Total
funds
£
1,166,008
28,397
1,193,405

16. Funds

Balance Net gains Balance
Year ended 1 January on 31 December
31 December 2021 2021 Income Expenditure **Investment ** Transfer 2021
£ £ £ £ £ £
Unrestricted Funds
General 1,037,423 36,500 26,491 144,973 1,192,405
Restricted Funds
YLN micro-grants 2,000 - - - - 2,000

Page 16 of 17

Notes to the financial statements for the year end 31st December 2021 continued

Balance Net gains Balance
Year ended 1 January on 31 December
31 December 2020 2020 Income Expenditure
**Investment **
Transfer 2020
£ £ £ £ £ £
Unrestricted Funds
General 999,301 35,572 33,135 35,685 1,037,423
Restricted Funds
YLN micro-grants 2,000 - - - - 2,000

17. Legal status of the company

The company is limited by guarantee and has no share capital. The liability of each member of the Wharfedale Foundation on the company being wound up while they are members or within one year after they cease to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves shall not exceed £10.

18. Cash and cash equivalents

Barclays Bank
Unity Trust Bank
Yorkshire Bank
Bank and cash in hand
Financial instruments
Carrying value of financial assets:
Financial assets at fair value
2021
£
828
19,680
2,428
22,937
2021
£
1,166,008
2020
£
668
19,650
1,637
21,956
2020
£
1,021,035

19. Financial instruments

20. Post balance sheet events

The COVID-19 global pandemic has continued to impact the global and UK economies in 2021 however, the trustees do not believe that this will have a significant effect upon the Foundation.

The conversion of the legal status of the Foundation from a charitable company to a Charitable Incorporated Organisation (CIO) was completed on 16th March 2022.

Page 17 of 17