Chlrlty reglstratlon numbgr 229237 COVENTRY FREEMEN'S CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
COVENTRY FREEMEN'S CHARITY LEGAL AND ADMINISTRATIVE INFORMATION Trust•8S Mr D Handlord Mr D Mason Mr J Parry Mr M Rawson Mr R Smrth Mi G M Wilkinson Mr D Bullman Mr D C Mander Mr P Rosier Mr R Bansal Mr J Wilkinson Mr S J Rawson Charity number 229237 Reglster¢d offleè 3hAc Middlemarch Business Park Siskin Drive CovÈntry CV3 4FJ Auditor Dafferns LLP Hsrry Weston Road Binley Business Patk Coventry Llnmed Kingdom CV3 2UB 8anker5 HSBC 55 Corporalon Strè8t Coventry CV1 IQJ Solicito Mander Hadley Lirniled Solicilors 1 The Quadrant Covèntry West Midlands Ullited KingdorTt CV1 20W Investment advlsorn Quilter Ctteviol Ltd Provincial House 37 New Walk Leister LE16TU United Kingdom
COVENTRY FREEMEN'S CHARrrY CONTENTS Pjge Trustees, report statement of trustees. respon&bilities Independent audilorfs report ststem•nl of financial activitiès Balance sheet Statement of cash flo¥ Notes to the financial statements 11- 19
COVENTRY FREEMEN'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their annual report and finanaal statements for the year ended 31 December 2023 The financial 5ts1ements have be8n prepar8d in accordance with the accountin9 pdicies sèt out in note 1 to the financial statements and comply wth the charity's govern*ng document, the Charities Act 2011 and Accounting and Repothng by Chanties.. Statement of Recommended Pracbce applicable to chanlies preparing their accounts in accordance with the Financial RepDrting Standard applicable in the UK and Republic ol Ireland IFRS 1021" leffective 1 January 20191. ObjectNes and activities The aims and objectives ol the Charity for the period under review were as follows-. al The payment ol pen51Dns to needy Freetnen of the City of Coventry and their dependanls and the widows, widowers and other former dependants ol a deceased Fmman. who are resident within the existing boundary of the City of Coventry. or within a radius of seven miles from Sl Ma$ Hall. bl Relief in need. relieving either generally or individually, persons having 5irnilar types of qualifications to the pensloneis of the Ch8Mty. The tru51ee5 have considered ihe Charity Commission's general guidance on public benefit and cOnder that the chanty has achièved ils objèc1rè5 during the penod under review. The trustees have paid due regard lo guidance issued by ttte Charty Commission in deciding what actiwtie5 the chanty should undertake. Achievements and perforn)an Pensloner5 The number of person5 reGeNing pensions urKJer lal above al 31 st December 2023 was 2.403. This was rnade up of Freemen an¢J women 1,772, Vlfidows 623, and special cases 8. Payments made to pensioners totalled £525,812 which compares with £511.364 in 2022. During the year no additional relief was granted12022- nill. After discharging all liabilities and taking into account adjustments for gains and105ses on both inveslTnents and investment properties, the Charity was left with a surplus of £426,514 as Shown in the Statement of Financial ActNitles. on page 8. The rest ol the Charity's Financial Statements are explained in the notes on pages 11 to 19 and there are no 1tems requiring special attentson. Fundraising Regulator Statemenl Df Compliance Coventry Freemen's Charity does not conlract wth a third party to undertake any fvndraising On its behalf. Hence, we have received no fundraising cornplainls during the year. Investment parfomianc• The charity continued to pertorm well then measured against its targets and obiectwes for the year. The pnneipal objèctivè of paying pensions and hardship alleviation to freemen was made possible by the continuing generation of incorne from the propety and investment portfolio. The porffolios of property and Investments continued to generate sufficient tUrnS to enable the principal objeth.ves to be met, and the trustees consider Ihat perfornance was satisfactory for the year. Bad dèbts relating to rental income of £11,66812022, £9.8211 were written off during the year.
COVENTRY FREEMEN'S CHARITY TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Financial r•¥iew Investment policy and objectives Th8re are no restrictions on the Charity's power to invest. The investment strategy Is sel by the Trustees for a peri¢)d of five years and lakes account of recent demand lor funds The Tiuslees consider the income requirements. the risk profile and the Investment managerfs view ol the market prospects in thè medium term. This slratggy is set hwthin an overall policy. which states that the endowment fund is lo be Invested in low and medium nsk invesirnenls with a view to en$uring that capital appreciation of the eK¢èed8 inflation over each five year penod. The unrestricted and restricted funds may be inv85ted in any type of imiestm¥nt. Our strategy is rev1ewed with our Investtnent managers annually. The Charity has a broad based inveslmenl policy and relies tsn the advice of tts brokers Quilter Cheviot Limked for ttte mana9emenl of Ils investments. The Instructions given are to invest for income and medlum to low risk Stocks. The Chanty has Mnsiderable investments in properbes whTth are rnanaged by the surveyors. Loveitts. The Trustees are satisfied that the income and capilal value of all Investments ha8 risen during the year in line wilh known martet Indices. The Charity's Inve5ttnent managers are Comrnitted to responsible Investment and consider social. environmental and ethical factors In Ihalr investment strategy. Reserves poIIcy The en¢Jowmenl funds represenl the capital of the Charity upon formatioll which 1$ to be maintained indefinf(ely. It Is intended thAt tho lovel cif unrestricted funds represent•d by 8ccumulated siJrplus95 are lo equate to at reast gnÈ y&ar's expenditure but not moTe than . This is considered a prudent level of unrestricted reserves, since rt allows current cotnmilmenls to be mel whilst maintaining the ffexibility to deal wilh unforestrell events. Thp current reserve5 are £1,780.472 in the unrestricted fund which are the free reserve5 and £17,592.252 on the endowrnent tjnd. The tot35 funds held were £19,352,724. These are held lo enable the charity lo rneet it5 ongoing commitment tD m¢mbers. No funds h8d been ¢Je$ignaled a5 al the year end. There were no prDgramme related investments at the ar end. The Un1ncted fvnds held are In accordance wfth the reserves policy, Source5 of fundlng The main source ol funding continued to be the propety and investmènt portfolio. Risk management Tho Trustees have exarnin&d the major strategic. businass and operational risks whl¢h the Charity 13ces and ¢onfim that systems have been established lo enable regular reports to bé produced so that the nKessary steps ¢an be lak&n lo lessen thesè risks. The ri$k management is reviewed annually by Ihg Trustees. New and fvture dgvelopmonts There have baen no major new developments in th? year and thè Trustees at present gnv15age that the Charity 11 continue to operate In the future in it5 present fom. Structure, governance and management The Charity ss constituted undgT a scheme ordered by th8 Charity Commissioners for England and Wales sealed on 29th Decèmber 1978 embracing the charities formerty knovm as" The FeMen.$ Seniority Fund b. The Estates of the Freemen and Widows of Freemen of the City of Coventy c. The Estates of the Freernen of the City of Coventry.
COVENTRY FREEMEN'S CHARITY TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2023 Trustees The Iruste2s who served during the year were, Mr D H8ndford Mr D Mason Mi J Parry Mr M Rawson Mr R Smith Mr G M Wilkinson Mr D Bullman Mr D C Mander Mr P Rosier Mr R Bansal MT J Vffjlkinson Mr S J Raw5Qn How decislons are made The board of trustees meets regularfy for the purposes of discussing the charity's affairs and deci8i(5n tnaking. Inductlon and tralnlng of trustoes New trusLees undergo a period ol orientab'on lo brief them on Iheir legal obligab.ons under charity law. the conlènl of the governing document, the crynmitiee and decision making processes. the business plan and recent financial performance of the Charity. Dunng the induct they rneet key personnel and other tru5tee5. Trustees are encouraged to attend appropriate external training events where these svill faThlitale the undertaking of their role. lees. report approved by th• Board of Trusteès. Trustee Dated..
COVENTRY FREEMEN'S CHARITY STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees are responsible lor preparing the Trustees, Report and the financial slalemenls in accordance wrth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practic81. The law applieèblè to th8rikÈs in England and Walos requirès Ihe trustees to pr$Pa finanaal statements for each financ181 year which give a true and falr view of the state of affairs of the charity and of the incorning rosour¢9$ gnd application of resources of the charity for that year. In preparing th•se financial slalemenls, the Irustees are rèquired lo. select 5Ultable accounting policie5 and then apply them consislendy., observe the methods and principles In the Chanlies SORP., mak8 judgements and estimates that ar? reasonable and prtjdent., state whether applicable accounting standards have been followed, Subject lo any material departures disclosed and explained in the financial statemenlg.. and Ppare the finanoal slalements on the going roncem basis unlèss il is inappropriate lo presume that the charity will contlnue in operation. The trustees are sponslble for keeping sufficient accounting record5 that disclose wth re850nable a¢¢uia¢y at any tlme the financial posits.on of the charity and ènable 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 h8nce lor taking reasonable steps for the prevention and detection of fraud and other irregularities.
COVENTRY FREEMEN'S CHARITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF COVENTRY FREEMEN'S CHARITY Oplnlon Wè have audilad thè financial statements of Coventry Freemen's Charity (the 'charty'l lor thè year ended 31 December 2023 which compris8 the Statement of financial aclvldes. thé balance shèèt. the slalemenl of cash flows and the notes lo the financial slalemenls, Including 8 summary of significant accounting poliaes. The financial reporting framework that has been applied in their pieparalion is applicable law and United Kingdom Accounling standards, including Financial Reporting Standard 102 The Financ1al Reporting Standard applitable In the UK and Republie of Irèland (United Kin9dom GenerallyAccepled Accounting Pr8cbrel. In our opinion, the flnancial slatements.. give a true and fair of the 51ale of the charity's affairs as at 31 December 2023 and of ts InrnIng resources and appliCatn of reSoUrs, for the year then ended., have been properfy prepared in accordance wth United Kingdom Generalty Aepted Accounting PiactiC8." and have bgen prvpared in accordance with Iho requiremgnts of the chgrib.es A¢t 2011. Basls for oplnlon Wè conductèd our sudrt In atcord8nce with International Standards ttn Auditing (UK) IISAS IUKII 8nd applicable law. Our resp(>nsibililies undèr those slanclards are further described In the Auditorfs r8spofisJblltiias for the atjdit ol the financial stalernents 5¢dion pf our report. We alè Independent of thè charity In arxordance with tha ethical quiremÈnts that are relevant to our audit of the financial statèmant5 in the UK, inclvding the FRC'S Ethical Standard, and we have fuffilled rjur other ethical r?sponsibilrties in aGwrdance wtlh these requirements VVE believe that the audit evidence we have pblained is 8uThoent 3nd appropri8te ID pfDvide a b88is for our opinion. Conclu8lon8 relatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going COnM basis of accounting in the preparation ot the finanaal statements is appropriate. Based on Ihe work we have performed, we have not idenlrfied any material unCertntieS relal'ng lo events or condib'ons that. individually or collectively. may cast significant doubt on the challtr¢s ability to continue a5 a going concgm Yor 8 pedod of at least e1ve rnonths Irom when the fin8ncial Staletngnls are authorised for issue. Our responsibilitiès and IhÈ resF)onsibilibes of the trustees with respect to going concern are described in the relevant sections of Ihis ieport. Othor inforniation The other infoffnation compnses Ihe Information Included in the annual report other Ihan the llnanclal statements and our auditorfs report thereon The trustees are responsible for the otrer information contained wrthin the annual report Our opinion on he financial statements does not cover the other Inforrnation and we do not express any form of assurance condusion Iheretsn. Our responsibility is lo read the olher infomiation and, in dcing so, congder whether the other Information is materially Inconsistent with the financial statemerits or our knoedge obtsined In the course of the audit, 01 OtheIse appears to be materially mL8staled. If we Identify such material inconsistencies or apparent matErial rnisslatements. we a required to detemiine whether this gNes nse to a material misstatement In the financi81 slaternenls Ihems$lves. If, ba$ed ¢n the work we have perftsrméd. wa eoncluda tmat there is a material misslatemenl of this other Infctrmation. we are required lo report that lact. We have nothing to report in this regard. Mattors on whlch wo are requSred to report by excoptlon have nothing to réport in raspact ol thè lollowng matters in ralation to which tho Chariltrs (Accounts and Rèportsl Regulations 2008 require us to report to you if, in our opinion. the information given in the finan¢ial statements is inconsistent in any material respect wth the trustees, report.. or sufficient accounb.ng record5 have not been kept., or the financial statements are rK)t in agreement wlh the a(UntIng records." or we have not received all the infomiation and explanations we require for our audit
COVENTRY FREEMEN'S CHARITY INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF COVENTRY FREEMEN'S CHARI Responsibllitles of trustee$ As explained more fully in the Slalement of Trustees, Responsibilities. the trustees are responslble for the preparation of the accounls an¢J for being 5atlsfled that they give a true and fair view. 3nd for such intemal control as the directors delennine is necessary to ertabl8 the prepafalion of accounts that are free trom rn3terial misslalemenl, wheth¢r due to fraud or error. In pr8paring the accounts. the trustees are respon&bl8 fDr assessing the charity's ability to Continue as a going concem. disclosing, as applicable. matters related lo going concern and using the going concem basis of accounting ue$S the trustees éither intend lo cease operations. or have no realistic altemalive bul lo do so. Auditor's r•5poiisiblllties for th audrt of the flnancial statements We have been appointed a5 aLJditor under section 144 of the Charities Acl 2011 and report in accordance with regulations made under section 154 01 that Act. Our objectives are lo obtain reasonable assurance about whether thè financial statements as a whtrle are free from Illalerial misstatement. whether due to fraud or error, and la i$8ug an 4udittsr's report thAt include8 our Opinion. Reasonable assurance is a high level ol a55urance, but 15 not a guarantee that an audit conduded in accordance with ISAS IUKI w11 athays detect a material rnisslalement wtten It Èxists. Misstatements can arise from fraud or errof and are considered material if. individually or in the aggregate. they could reasonably be expected to Influence the economic decisKins of users taken on the basis of these financial statémenls. Irregularrties. Includlng fraud. are instances of nowomplkince l?w3 and regulations. We design procedures in line wth our re5ponsibililies. oullined abcsve. lo detect rnalenal misslatsments in respect of irregularitie5. Including aud. The etent lo which our piocedures are capable of detecting IrguIaritiOS, in¢ludlng fraud s$ detailed befow.. Enquiry of management and those charged with governance around actual and potential litifation and Clairns Enquiry of entrty staff in compliance functions to identify any instances of non-compliance with laws &nd regulations Reviewing minutes of meetings of those charged with governance. Reviewing financial statement disclosLJres and testing to supporting documantation lo assess compliance with applicable law5 and regLJlalitsn51 Perforrning audit work pver the risk of rnanagernent ovemde ol controls, incsuding testing of joumal entries and other arjjustments for appropriateness, eviiluating the bu$lness rationale of signtficanl transactions outside the noirnal course of business and reviewing accounting estirnales for bias_ Because of thg inherent limitations of an aLKlit, Ihwe is a risk that we wlll not detect 811 inegularitr8s, indLKJing those le8ding to a material mis8lalement in the ftnanaaj statements or northcompllance with fe9ulallon. This rfsk Increases thé more that cornpliance with a law or regulation is removed frorn thè events and transacti¢ns rgfle¢tèd in the financial statements. as we will be less likely lo become aware of instan¢es Cf non-comp114nce. The risk 1$ also greater regarding igular¢S o¢cutring due to fraud rather than errol. ay tsud inVoe$ intentional ccnc8almenl. forgery. Gollusion. oml$on or misreSentstI0n. A further description of our responsibilities is available on the FRC'S web51te at. https.IlwwN.frc.019.ukl auditorsresponsibilities .Thi5 description forms part ol our auditor's report.
COVENTRY FREEMEN'S CHARITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COVENTRY FREEMEN'S CHARITY Use of our r8POrt Thi5 report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Fieportsl Regulations 2008. Our audit work has been underteken so that we ffiight state to the charity's tmstees those matters we 31e required to stale lo them in an audiloi's r8port and for no other purpose. To Ihe fullest ex¢8nt peThitted by law, we do not accept or a85urne re5ponsibllily lo anyone other than the charity and the thanty's trustees as a body. for our audit work. lor this report, or for the opinions we have formed. LLP Dafferns LLP Chartered Accountants Statutory Audltor Hary Weston Road Binley Busine55 Park CDventy United ngdoM CV3 2UB Daffems LLP is eligie for appointrnenl as auditor ol the charity by virtue of its eligibilty lor appointment 8s auditor of a company under section 1212 of the Companies Ad 200S.
COVENTRY FREEMEN'S CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unr¥5tricled Endovmiènt furrds funds 2023 2023 Total Unrestrlcted Endowment funds funds 2022 2022 Total 2023 2022 Notes Donatsons and legaues Investments 70,000 1,099.198 70,000 1,099.198 972.731 .972,731 Total Income 1,169.198 1,169,198 972,731 972,731 ondltu Charilable activitS 897,232 897.232 871.387 871,387 Net gainsllb5sesl on investments 72,574 81.974 154,548 157,8471 179,4261 1137.2731 Net movement In funds 344,540 81.974 426,514 43,497 179,4261 135,9291 Fund balances at 1 January 2023 1.415.932 17.510.278 18,928.210 1.372.435 17.589,704 18,982,139 Fund balances at 31 December 2023 1,760.472 17.592.252 19,352,724 1,415,932 17,510,278 18,926,210 The slalemenl of finan¢ial activities includes all gains and losses recognised in the year. l income and expenditure denve from continulng 8ctniilies.
COVENTRY FREEMEN'S CHARITY BALANCE SHEET AS A T 31 DECEMBER 2023 2023 2022 Notes Flxod assetB Investsn¢nl property Investmènts 11 12 16.262,427 2.789,953 16,063,242 2,728,147 19,052,380 18,791,389 CurTent assets Debtor5 Cash al bank and in hand 14 51,317 292.219 45,889 129,204 343.536 175,093 CNdltors: amounts falllng du• wlthln one year 15 143,1921 140.2721 Nel currenl assets 300.344 134,821 Total assets less current liabllitles 19,352,724 18.926,210 Capital funds EndoWent fiJnd5- general InGome funds Unrestricted fijnds 17,592,252 17,510,278 1,760.472 1.415,932 19,352,724 18,926,210 Thgfln ncigl statements were approved by the Trust on ..... Trustee
COVENTRY FREEMEN'S CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from tsporattng a¢tlvltles Cash absortjed by oparations 21 1829.7401 1875.2951 Investing activities Investrnenl income Incorne from li51ed investmènts Interest receable Purchase of Investment propety Purchase of other investrnenls Proceeds on dispD5al ol other inv?strnents 1,000,564 95,357 3,277 1199,1851 1343.6581 436.400 880,728 91,S43 360 1173,2421 1460,0101 532,225 Net cash generat•d ftom Investlng acti¥lYo8 992,755 871.704 Net cash u$ed In flnanclng a£tlvltles Net Increasel{decrea5el In cash and cash equlvalents 163,015 {3,5911 Cash and cash equivalents al beginning of year 129,204 132,795 Cash and cash equivalents at gnd of year 292,219 129,204 Anatysi5 of cash and cash equlvalents Bank balances and short tami daposrts 292.219 129,204 10
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounttng pollcies Charity infomiation Coventry Freemen's Charity is a charitable trust constituted under a scheme ordered by the Charity Commissioners for EnglarTd and Wales sealed on 29th December 1978 See reference In the trustees. report. 1.1 AccOntIng convention The financial staternents have been prepared in accordance with the charity's goveming document, the Chaiilies Aci 2011 and "Accounting and Reporting by Charities. Statement of Re¢ommended Practice applicablè to charrties praparing thèir accounts In accordance with thè Financial Reporting Standar applicable In the UK and Republic of Ireland IFRS 1021 leffe¢liv? 1 January 20191" The charity is a Public Bénefit Ernb'ty 8s dèfined by FRS 102. The financial slatements have departed from Ihe Charities (Accounts and Reports) Regulabons 2008 only to the extent re9uifEd tts providè a true and falr view. This departure has involv2d followng the Staternenl of Recornmended Practice for chaiilies applying FRS 102 rather than the version of the Slalernent ol Récommended Practicè which is referred lo in the Regulstions but which h85 since been withdrawn. The financial slalements are prepared in sterfiro, which Is the fundTonal currency of the charity. Monetary amounts irt these financial statements are rounded to th8 nearest £. The financial statements have been prepared under the hi5toncal cost convention, modlfied to indud8 the revaluation of freehold properties and to indude investment pioperties and certain financi81 instruments at fair v*ue. The principal accountin9 policies adopleil are Set out below. 1.2 Going concern The financial statements have been prepa& on a going concern basis as ttte Trustee5 believe that no matprial uncertainties exist. The Tmstees have CDnsideied the level Df fund5 held and the expected level of income and expenditure for 12 months from authorising these financial stalements. The budgeted Incomo and expenditure is sufficient wth the IEvet of reserves for the charity tD be able to continue as a going concern. 1.3 Charltable fvnds Unrestrided funds are availabk for us8 at the discretion of the trustees in fvrtherance of their charitable obiecl'ves. Restricted funds are subject to specific condib"on5 by donor5 a5 to how Ihey may bé used_ The purposes and use5 01 tre restricted funds are set out In the notes to the financial statements. Endowmernt furnds are subject to specific conditions by donors that the caprtal must be maintained by th8 thanty. 1.4 Income Income is recognised when the charity is legally entsded lo it after any perforrnance conditions have been mel, the amounts Can be measured reliably. and it is probable that incorne will be received. Lagacies are racognisad Dn ¢IPt or othemise If Ihe charity has been notified of an impending distribution, tha amount is known, and receipt Is probable. If the amount is not known. the le9aEy 15 treated as a contingent asset. Rental incorne frgm operating leases Is rectsjnised in the statement of ffinancial a¢b"wbes on 8 Straighl-line basis over the lease lerrn 11
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting pollcles Icontlnuedl 1.S Expenditure All expenditure Is accounted for on an accruals basis and has been cl8S51fi8d untler headings that aggiegate all cos15 ielated lo the category. Expenditure 15 recognised where there is a legal or con5tructivfr obligation to make payments lo third parties, It Is probable that Ihe settlement will be required and the amount of the bligalion can be measured reliably. It Is calegorised under the following headings.. Expenditure on charitable activitie5,' Other expenditure represents those items not falling Into the categories above. Irrecoverable VAT Is charged as an expense against the acli¥rily lor which expenditure arose. Grants paYae lo third parties are within the charilable objeIveS. Wnere unconditional grants are offered. this Is accmed as soon as Ihe recipient is notified of the grant. as this gives rise to a reasonable expedalion that the iecipient will receive the grants. Where grants are conditional relating to performance then the grant Is only acGrued when any unfvSfilled conditions are outside ol the control of the charily. 5uppon Costs allocation Support costs are those that assist the work ol the charity but do not directly represent charitable activities and Include office costs. governance Gosts. 8drninistrative payroll costs. They are Incurred directly In support of expenditure on the objects of the chanty. Where support costs cannot be directly attiibutad lo particular headings they have been allocated lo Cost of raising funds and expenditure on charitable aclivits.es on a basis consistent wth use of the resources. The analysis of these costs is included In note 5. 1.6 Investment propety Investment property, 1¢h is propety held to earn renlals andlor for capital appreciation. Is inithally recognised al cost. which includes the purchase cost and any directly attributable expenditure. Subsequendy It is measured at fair value al the reporting end date. The surplus or deficit on reyalualion is recognised in profit 01 Ios5. 1.7 Flxed asset Inve5trnent5 Fixe¢Y a55et inve51mènls are Initially measured at Iransadion price excluding transaction costs. and are subsequently measured al fair value at each reporting dale. Changes in fair value are recogn15ed In net IDcomellexpenditurel Yor the year Transaction costs are expensed as 1ncurred. 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with bank5, Other short-term liquid Investments with original maturitie5 of thre8 month5 or less. and bank overdrafts. Bank overdrgfts are shown thin borrowings in current liabilitie5. 1.9 Financial in$trumonts The Eharity has elected to apply the provisions of Section 11 'Basic Financial Instrumen15' and Section 12 'other Financial Instrument5155ues' of FRS 102 to all of Ils financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becornes paty to the contractL)a1 provisions of the instrument. Financial assets and liabilities are DffsÈt. wth thè nèt amounts presented in the financial statements, when there is a legally enforceable nghl to set off th6 recognised amounts and there is an intention lo settl8 on a net basis 01 to realise the asset and settle the liability simultaneously. Basic financial assets Basic finall81 assèts, which Inclu(Je debtors and cash alld bank bolance5. are initllY measured al transaction price Induding transaction costs and are subsequendy earried at amortised cost using the effective int8re5t method unless the arrangement conslitute5 a financing tiansaction. where Ihg tiansaction Is rnea5ured at the present value of triè future receipts discounted at a market rate of inleresL Financial assets classffied as receivable wthin one yeaT are not amortised. 12
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policl•s Icondnuedl Basic finaftcial liabilities Basic financial liabililieg, includin9 cieditors and bank loans are inilialty recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt inslrumernt Is measured al the present value of the future payments discountett 21 a market rate of interest. Financial liabilities classified a5 payab within one year are nol amortised. Debt in5trurnen15 are 5ub5equently carried al amortised cost. using the effective intèrèst rate metfTrod. Trade creditor5 are obligations to pay lor goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities If payment Is due within one year or less 11 not. they are presented as non-currenl liabilities. Trade creditors are recognised Init1ally al transaction pn and subsequently measured at arnortised c051 u51ng the effective interest method. Derecognition of financial Ilabilities Financial liabilities are derecognised when the tharity'5 contractual obligations expire or are discharged or cancelled 1.10 Taxation The tax expense represents the sum of the tax curienlly payable and deferred tax. The charity is nol liae to incorne tax on it'5 charitable activities. 1.11 Employee benefits The cost of any unused holiday ènlillement is recogni$ed in the period in which the èmployee's services ale received. Termination benefits are recognised immediately 85 an expense when the charty Is demonstrat¢ly committed ta teminate the employment ol an employee or to provide termination benefits. Critlcal accounting &5tiTnates and judgements In the application of the chartty's accountsng policies. the trustees are required to mak8 judg8ments. estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assurnplion5 are based on historical experience and other factors that are considered to be relevant. Actual re5uIt5 m3y differ from these estimates. The estimates and underlyifig assurnplions are reviewEd on an ongoing basis. Revi810ns to accounting estimates are recooni5ed in the period In which the esb.mate is revised where the revision affe¢ls only that period. 01 In the peTiod ol the revi510n and future penods where the revision affects both current and future periods. Donations and legacles Unrestrlcted lund$ Totsl 2023 2022 Legacies receivèd 70,WO 13_
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Investments unstrICted Unrestrlcted funds fvnd5 2023 2022 Rental Income Income from listed investments Building leases Acknowledgements Inte$t receivable 1,000,380 95,357 60 124 3.277 880,544 91,643 80 124 360 1,099,198 972,731 Income from Investrnenl incorne was wholly attributable to unrèstrfcted funds in the current and precoding year. Charliable &ctlvftles 2023 2022 InveslJnent brokers Commissions paid Pioperty repairs Rates and water Lighl and heat Surweyor5 lees Legal fees Seniorty payrnerrt5 Insurance Bad debt 5,391 82,853 123,300 1.971 3.929 37.209 12,672 525.812 44,102 11.668 5,511 73,845 117,812 12,050 2,571 34,834 21,311 511.364 37.062 9,821 848,907 827,081 Share of support costs (see note 81 Share of govefnance ctssts (see note 61 26,75S 21,570 23.654 20,652 897,232 871,387 Expenses within charitable aciivthes was wholly attributable lo unre51ricted funds in the Current and prècedirtg year. 14-
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Support Gov8rnance costs costs 2023 Support Governance costs costs 2022 Seniority Soare Sundry expenses Clerk and finance costs Legal expenses Bank charges 480 2,817 14,880 7,109 1,469 480 2,817 14,880 7.109 1,469 360 e97 14,280 6,872 1,445 360 697 14,280 8,872 1,445 Audit lees Clerk and flnance c08ts 6,690 14,880 6.690 14.880 6,372 14,280 6,372 14.280 26,765 21,570 48,325 23.654 20.852 44,306 Analysed between Charitable ath"vrties 26.755 21,570 48.325 23.654 20,652 44,306 Govemance costs Includes payments to the auditors of £6.69012022- £6,372) for audit fees. Truste•s There were no trustees, remuneralign or other benefils for the year ended 31 Decernber 2023 fKsr 2022. Truste•s' Èxpens•s None of the Injslees received any expenses In ttte year ended 31 DeGernber 2Q23 nor 2022. Employees The avÈrage monthty number of employees durin9 the year was.. 2023 Number 2022 Number Clerk There were no employees whose annual remuneralion was rnor& than £60.000. 15-
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 Net gainslllossesl on Investments UnrestTl¢t•d Endowment funds fund$ general 2023 Total Tplal 2023 2023 2022 Revaluation ol inve$trrents 72.574 81,974 154,548 1137.2731 For thg year ended 31 December 2022 157,8471 179,4261 1137,2731 10 Taxation The charty is exempl from lax on incomè and 9ains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 10 the extent that these are applied to its charitable objects. 11 Investment proporty 2023 Falr value At 1 January 2023 Additions ihrough external acquisition 16.063.242 199.185 At 31 Dec8mber 2023 16.262,427 The land and buildings were rValued by Loveitts, Chartèred SuNeyor5. a5 at 31st December 2021 on an open rnarket basis in accordance with the guidelines issued by the Royal Insty"tution of Chartered Survey¢rs. 12 Fixed asset inv•5tmènts Listrd investments Cost or valuatlon Al 1 January 2023 Additions dlualion changes Disposals 2.728,147 343.658 1 $4,548 1436,4001 Al 31 D¢mber 2023 2.789,953 Carrying amount At 31 Decembei 2023 2,789,953 Al 31 December 2022 2,728,147 16-
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 13 Flnancial instruments 2023 2022 Carrylng amount of flnancial assets Debt instruments rneasured at amortised cost Equity irwtruments rneasured at lair value 51,317 2,789,953 45,889 2.728,147 Carryiftg amount ol flnanclal liabilltl•8 Measured at amortised ¢ost 37.694 38.702 14 Debtors 2023 2022 Amounts falllng due wlthln on• y•ar. Ottter debtors 51,317 45.889 115 Crèditors= amtsunts fallÉng due wlthln ono year 2023 2022 Olher taxation and social secuiity Other creditors Accruals and deferred Income 5,498 26,568 11,126 1,570 27.605 11,093 43,192 40,272 16 Endowinent funds Endowment lunds represent assets which musl be held permanently by the tharity. Incorne arising on the endowment fund5 can be used In accordance with the (kniect5 of the charity and 15 included as unrestricted incorne. Any capital gains or losses arising on the assets forn part ot the fund. Balince at Revaluation3 Balae rt Revaluations 1 JanuAry 2022 gainB and1 Janry 2023 gain• 4n# 31 105$95 losgos Balance at 2023 17,589.704 179,4261 17,510,278 81,974 17,592,252 17,589,704 179,4261 17,510.278 81.974 17,592,252 This fJnd consists of the original endowment incorporated in the Indosuro Awards dated 2nd Now$mber 1860 and dated 22nd June 1875 logathèr with the accumulated gains or losses an&ng on disposal of tt)e Charity. investments and may only be applied in the acquisits.on of other investments. 17-
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 17 Analysls of net assots betwetrn funds Unrestrlcted Endowm•nt 202J 2023 Total Unrestrlcted Endowmont 2023 2022 2022 Totsl 2022 Fund balance5 at 31 December 2023 arè represented by.. Investmenl properties Investment$ Current asse151lliabilib-esl 16,262,427 16.262,427 1,329.825 2,78S,953 300,344 16,063,242 18,063,242 1,447.036 2,728.147 134.821 1.460,128 300,344 1,281,111 134,821 1,760.472 17.592,252 19.352.724 1,415,932 17,510,278 18.928,210 18 Fin4nclal commitrnènts, guarantees and contingent liablliti¢s Commitments of £56.938 12022.. nil) for a replacement roof on a property owned by the charity h8¥6 been contracted but not provided for in Ihe f nancial statements. 19 OpÈratlng lease commltments Lessor The operating leases represent leases of varying lemis to third parties. Some of the leases indud8 a provi0 lor periodic upward rent reviews accgrding to prevailing markèt eondltions. At the rtporting end date the charity had contracted with tenan15 foi the follong rninimum lease payments.. 2023 2022 Within one year Between two and five years In over five years 472,631 1.077,264 2,369.138 373,901 992,842 2.472,782 3.919.033 3,839,525 20 Relatod party transactions Transactions vAth related partles During thè year the charity entered Into the following transaction8 wilh i¢lated partigs". P Roder a trustee of the charity 15 a shareholder ol Lovéitty. Ihe property management compgny. Loveitts charged rnanagerrent ¢ommission and lee$ 01 £120.06112022 - É125,2331. At the balance sheet date. Loveitt5 owed the charrty £1.840 12022 - £01 in fee cr6dits. Loveitts also hold £5,00012022 £5.0001 within a dient account for the chanty. 18
COVENTRY FREEMEN'S CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 21 Cash generated from operations 2023 2022 Sutpluslldefi(itl for the year 426,514 135,9291 Adjustments for. Invgstment incoma recognisad in statemènt ol ffinanci81 adivrtie5 Fair value gains and losses on investrnonts 11,099.1981 1154,5481 1972,7311 137,273 Movem?nt5 in working capital: Ilncfeasel In debtors Increase in creditors 15.4281 2,920 19,2661 5.358 Cash absorbed by operations (829,740) 1875,2951 22 Analy515 of chan98s in Det funds At 1 January 2023 Catsh At 31 1)e¢embgr 2023 Cash at bank and in hand 129,204 163,01 S 292.219 129,204 163,D15 292.219 129,204 163.015 292,219