2021-03-31-accounts - Gorham's Gift

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Charity Number: 230146

GORHAM’S GIFT

TRUSTEE’S ANNUAL REPORT AND FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021

GORHAM’S GIFT FINANCIAL STATEMENTS – 31 MARCH 2021

CONTENTS	PAGE
TRUSTEE’S REPORT	3 – 6
INDEPENDENT EXAMINER’S REPORT	7
FINANCIAL STATEMENTS	8 - 10
NOTES TO THE FINANCIAL STATEMENTS	11 –14

GORHAM’S GIFT (REGISTERED CHARITY NO: 230146)

Report for Financial Year ending 31 March 2021

This report has been drawn up in accordance with the requirements of the Charities Act 2011 and the 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 (FRS102) (effective 1 January 2015).

Governing Document

High Court Scheme dated 10 December 1935 (trust deed), as amended by schemes of the Charity Commissioners dated 30 April 1970, 25 April 1978, 20 May 2004 and 25 February 2020.

Registered Office

Brighton & Hove City Council Hove Town Hall Norton Road Hove BN3 3BQ

Trustees

Dr B. Hunt (Parochial Church Council representative) Lynne Martin (ex-officio for Chief Executive, Brighton & Hove City Council) Rev Tim Mills (ex-officio – Incumbent) Cllr Joe Miller Cllr Lizzie Deane Cllr Bridget Fishleigh

Co-opted Trustees

Mrs Pamela Stiles (Chair) Mr Brian Fitch

Managing Agents

Savills Chartered Surveyors Exchange House Petworth GU28 0BF

Independent Examiner

Hannah Doherty Cardens Accountants LLP, 28 Fourth Avenue, Hove, BN3 2PJ.

Others who attend meetings of the Trustees

Mary Grealish (Accountant, Brighton and Hove City Council) John Peel (Clerk, Brighton & Hove City Council)

At Brighton & Hove City Council’s full council meeting each year three Trustees from three different political parties are appointed to the Trust board. The Reverend of St Laurence’s Church in Telscombe village as well as a representative from the Parish Council also, sit on the board of Trustees. Up to two co-opted Trustees are appointed to the board who at present are appointed from previous Trustees because of their knowledge and understanding of the Trust’s history and affairs. A Brighton & Hove City council officer is appointed as an exofficio Trustee on behalf of the Chief Executive of Brighton & Hove City Council. Any new Trustees are briefed on their major duties which include scrutinising financial information and raising concerns or requesting further clarification on any matters relating to the Trusts activities. The Trustees meet at least twice a year.

The Trust is supported by officers of the council and the Managing Agents.

Background

Ambrose Gorham was a bookmaker and horse trainer, who was resident at Stud Farm in about 1890. Almost the entire village operated as a racing stable at one time and Ambrose acted as Squire and benefactor. He managed over twenty apprentices at the Stud and built the Village Club to provide for their social needs. In 1902 his horse Shannon Lass won the Grand National.

With winnings from the Grand National, he helped to restore St Laurence Church in Telscombe Village and in 1905 commissioned two murals, which can be seen today. Later he purchased land in the adjoining area to expand his interests, and on his death in 1933, bequeathed his property and land for charitable purposes.

Objectives and Activities

In accordance with his will a Trust was established. The purpose of the Trust is to keep Telscombe Village as Ambrose Gorham would have liked, and for the property as far as possible, to be of benefit to the people in the surrounding environs of Brighton and Hove including Telscombe Cliffs for their quiet and peaceful enjoyment.

The Trust’s objectives in liaison with the Charity Commission were amended in February 2020 to reflect modern times. The objects of the charity are as follows:

(1) The preservation and maintenance of the listed buildings in Telscombe Village for the benefit of the public.
(2) The provision and maintenance of a village hall for the use of the inhabitants of Telscombe, Piddinghoe, Peacehaven and Brighton without distinction of political, religious or other opinions, including use for:
(a) meetings, lectures and classes; and
(b) other forms of recreation and leisure time occupation, with the object of improving the conditions of life for the inhabitants.
(3) The prevention or relief of poverty in Telscombe, Piddinghoe, Peacehaven and Brighton by providing grants, items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty.
(4) To advance the education of the pupils at any school in the area of benefit by providing grants for education at the school.

(5) To maintain the Church of St Laurence in Telscombe Village.

The Trust owns 8 cottages in the Village and the whole of Stud Farm. It also owns some sheep ‘leazes’ which afford the right to graze over 200 sheep on Telscombe Tye. Telscombe Tye is owned and managed by Telscombe Town Council.

Trustees delegate their day to day work to Managing Agents who liaise with the tenant of Stud Farm and other tenants and are in contact with Telscombe Town Council on matters relating to the Tye.

The Village Club lease to Telscombe Town Council expired October 2015. Since that time the club has continued to be available for use by the wider community.

The Trustees have a programme of repairs and maintenance for their buildings and also consider proposals for development as they are made. Over the last few years the Trust has undertaken a major project to reconvert the Bank Cottages property from a building used by the YHA back to its original designation as 3 independent cottages 2 of which are residential and 1 a holiday rental cottage. Other recent improvements include roofing works to a barn under the stud farm tenancy, rewiring, new boilers and repairs to sash windows.

Trustees make at least one visit per year to the Village to inspect their properties, review the work undertaken on their behalf and to consider future proposals.

Public Benefit Guidance

The Trustees have complied with their duty under section four of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission and confirm that all the grants made within the period of these accounts support the aims and objectives of the charity as set out above.

Reserves policy and risk management

It is the Trustees’ policy to maintain sufficient reserves to ensure current levels of expenditure can be maintained for the foreseeable future regardless of donation or other income. At the year end the total unrestricted reserves amounted to £522,960 (2020: £408,581). The Trustees consider there are no evident risks to the continued operations of the charity at the current time.

COVID-19

Due to the outbreak of the COVID-19 virus the UK government put in measures to limit the spread of the virus which included urging people to remain at home wherever possible and to undertake social distancing measures. These measures meant that there was a slight decrease in holiday let income for the reporting period and there was a delay to the completion of repairs to one of the properties under the Stud Farm tenancy.

Financial Review and Achievements

The 2020/21 Accounts will be presented at a meeting of the Trustees in October 2021. The surplus for the year was £6,487.

Through the Trust’s agents, the properties and land continued to be let producing an annual income of £115,596 in the current year.

Savills, Property and Rural Estates, act as Agents for the Trust and ensure the upkeep of all Trust property in line with Ambrose Gorham’s wishes.

In the year 2020/21 £76,312 was spent on general repairs and maintenance. Properties under the Stud Farm tenancy incurred costs of £35,057 which included £22,584 for various works to a farm building and £11,106 on underground drainage issues. £6,074 was incurred at Box Tree Cottage for a new external boiler and £4,915 on a schedule of minor repairs at White Cottage which included Loft insulation and renewals of internal and external doors.

During the year the Managing Agents project managed the roof repairs for buildings under the stud farm tenancy, negotiated with the tenants, arranged new tenancies and advised the Trustees on a schedule of outstanding repairs.

The Trust scheme specifies how the annual surplus is distributed . The surplus in a year is not known until the end of that financial year, so can only be distributed in the following year after the financial statements have been approved at committee and the independent examination has taken place. Any deficits in any year reduce the net assets of the Trust and are not carried forward to the following year. In 2019/20 there was a surplus of £36,661 whereby the majority was distributed in 2020/21. Distribution is specified on page 8.

Investments held by the Trust have been acquired in accordance with the powers contained in the governing instrument of the Trust. Most of these investments are in COIF shares, and any cash surplus is invested in Brighton & Hove City Council.

There has been no change in accounting policies in the year.

The Trustees report was approved by the board of trustees on 19 October 2021 and signed on their behalf by:

Pamela Stiles (Chair) 19 October 2021

Independent Examiner’s Report to the trustees of Gorham’s Gift

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

· the accounting records were not kept in accordance with section 130 of the Charities Act; or

· the accounts did not accord with the accounting records; or

· the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Hannah Doherty FCCA Cardens Accountants LLP The Old Casino 28 The Fourth Avenue Hove East Sussex BN3 2PJ Date 31 January 2022

Statement of Financial Activities For the year ended 31 March 2021

Note Income and endowments from: Charitable activities 2 Investments 3 Total Expenditure on: Charitable activities 4, 5 Total Net income/(expenditure) Other Recognised gains/losses Distribution of previous years' surpluses 6 Net gains (losses) on investments 8 Net gains (losses) on tangible assets Net Movement in funds Reconciliation of funds: Funds balance brought forward Funds balance carried forward	Unrestricted Funds 2021 £ 115,797 6,511 122,308 115,821 115,821 6,487 (7,000) 114,622 0 114,109 408,581 522,690	Restricted Funds 2021 £ 0 0 0 0 0 0 0 0 0 0 4,345,000 4,345,000	Total Funds 2021 £ 115,797 6,511 122,308 115,821 115,821 6,487 (7,000) 114,622 0 114,109 4,753,581 4,867,690	Total Funds 2020 £ 112,500 6,384
				118,884
				82,223
				82,223
				36,661 (9,438) (6,184) 1,632,000
				1,653,039
				3,100,542
				4,753,581

Balance sheet at 31 March 2021

£ 4,345,000 523,675	2021 £ 4,868,675 (985)	£ 4,345,000 409,052	2020 £ 4,754,052 (471)
33,541 29,207 90,000 (37,969) (115,764)		40,865 1,612 90,000 (23,146) (109,802)
4,345,000
	4,867,690		4,753,581
	4,345,000 522,690		4,345,000 4,000 2,113 0 365,807 36,661
16,220 0 7,000 492,983 6,487

	4,867,690		4,753,581

The financial statements were approved by the Trustees on the 19 October 2021 and signed on their behalf by:

Pamela Stiles (Chair) 19 October 2021

Distribution Account

31st March 2021

2019/20 £ (14,877) (14,877) 7,438 0 2,000 4,000 0 1,439 14,877	Surplus/Deficit Available for Distribution (Surplus)/Deficit (previous year paid in the following year) Total Available for Distribution DISTRIBUTION Surplus Distribution was amended in February 2020 with the 2019/20 surplus distributed according to details in the Objectives and Activities section of the Trustees Annual Report. Incumbent of Parish of Telscombe (Diocese of Chichester) St Laurence Parish Council Maintenance of Church Transfer to Extraordinary Repairs Fund (ERF) Grants Reserve Transfer to Reserve Fund TOTAL DISTRIBUTION FOR YEAR	2020/21 £ (36,661)
		(36,661) 0 7,000 0 12,220 7,000 10,441
		36,661

Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Charities SORP ‘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 for (FRS102) (effective 1 January 2015)’ and applicable accounting standards.

(a) Accounting convention

The financial statements are prepared under the historical cost convention.

(b) Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net realised and unrealised gains and losses arising on revaluations and disposals throughout the year.

(c) Income

Income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Investment income received is accounted for on a receivable basis and Rent income is accounted for on an accruals basis.

(d) Expenditure

All expenditure is accounted for on an accrual basis.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and includes governance costs. Governance costs are those costs associated with meeting the constitutional and statutory requirements of the charity.

(e) Fund Accounting

The Trust has restricted and unrestricted funds.

Restricted funds are subject to specific restricted conditions imposed by donors. The Trust’s land and buildings are investment assets that must be permanently retained by the Trust. For the purposes of these accounts the land and buildings are classed as a capital fund called a permanent endowment.

Unrestricted general funds comprise those amounts received for use at the discretion of the Trustees in the furtherance of the general objectives of the charity.

Unrestricted designated funds are unrestricted amounts put aside by the Trustees for specific purposes. The Trust has set aside a fund called Extraordinary Repairs Fund which is used by the Trustees for specific repairs and maintenance of the Trust’s land and buildings. In 2019/20 the Trust’s surplus distribution was amended with the 1[st] Moiety Fund transferred into the Reserve Fund in 2020/21 and a new reserve was set up called Grants Reserve. The Grants Reserve is funds set aside for grants to organisations working to prevent or relieve poverty or to advance education in the area of benefit.

2. INCOME FROM CHARITABLE ACTIVITIES

Rent receivable Wayleaves Total 3.INVESTMENTS Share Dividends Total	2021 £ 115,596 201 115,797 2021 £ 6,511 6,511		2020 £ 112,500 0
			112,500
			2020 £ 6,384
			6,384

4. EXPENDITURE ON CHARITABLE ACTIVITIES

2021 £ General Repairs and Maintenance: Box Tree Cottage 9,197 Hawthorn Cottage 6,505 Village Hall 0 General Village maintenance 5,090 Oak Tree Cottage 5,653 Stud Farm (inc. Blackthorn Cottage) 35,057 White Cottage 7,158 Cow Shed 108 Holly Cottage 588 Church Cottage 1,465 Shannon Cottage (inc. holiday let expenses) 5,491 Management fees - Savills Professional fees – Savills	2021 2020 £ £ 3,396 3,155 1,584 2,590 3,048 23,943 308 0 495 396 2,983 76,312 10,200 21,259	2020 £
		41,898 10,945 18,638

Professional fees – Other Interest charge for cash overdrawn at BHCC Miscellaneous expenses Governance costs (see note 5 below) Total	2,510 624 11 4,905 115,821	5,329 1,279 10 4,124
		82,223

Savills (Chartered Surveyors) management fee covers day to day work in connection with the tenancies, arranging minor repairs and maintenance, collecting the rent income etc. They are the Managing Agents and were appointed on 1[st] April 2013.

Savills professional fees include project managing fees in respect of any contract over £5,000 whereby 10% of the total contract plus disbursements is payable to them. In 2020/21 this included replacement of the roof of a property under the Stud farm tenancy. Other Savills professional fees were incurred due to tenancy negotiations, lease renewals, reletting fees for Holly and Church cottages and completion of a schedule of works for tenders to local contractors.

Other professional fees include legal advice on tenancies.

5. GOVERNANCE COSTS

Administration fees - Brighton & Hove City Council Financial Committee Clerk Independent Examiner's fee Trustee expenses Total	2021 £ 2,400 1,391 1,080 34 4,905	2020 £ 2,400 1,440 250 34
		4,124

Brighton & Hove City Council charge the Trust administration fees for any work they do on the Trust’s behalf.

Financial charges include preparing the financial statements, the annual report, completing the Charity Commission annual form and providing trustees with any financial information when required. Also liaising with the Managing Agents and paying invoices on behalf of the trustees.

Committee clerk fees include time spent by the Administrator for preparation, clerking and minuting for the Trust’s meetings and providing advice to trustees on any matter. Also, includes printing, stationery and postage of the minutes and agendas.

Gorham’s Gift has no employees.

There was 1 related party disclosure. During the year a Trustee was reimbursed £34 for personal expenses incurred which included travel and administration costs.

None of the Trustees or any person connected with them has received or is due to receive any remuneration for the year.

6. DISTRIBUTION OF PREVIOUS YEARS SURPLUS AND TRANSFER FROM FUNDS

In 2020/21 the Trust distributed £7,000 that related to the 2019/20 surplus.

In 2019/20 the Trust distributed £9,438 that related to the 2018/19 surplus.

For further details of this please see the Distribution statement on page 8.

7. FIXED ASSETS – LAND & BUILDINGS

The land and buildings owned by the Trust were valued in April 2019 at the open market value of the freehold at £4,345,000. The land & buildings are investment assets that are to be held indefinitely by the Trust.

8. INVESTMENTS

----- Start of picture text -----
2021 2020
£ £ £ £
COIF
Market Value at 1 April 499,052 505,236
Additions 0 0
Deletions 0 0
Net Unrealised Gains 114,622 0
Net Unrealised Losses 0 6,184
Market Value at 31 March 613,674 499,052
Total Investments 613,674 499,052
----- End of picture text -----

COIF shares are funds invested in the Charities Official Investment Fund. These are written into the accounts at market value on 31[st] March 2021.

Shares to the value of £90,000 were due to be sold in March 2021 but, due to Covid-19 this has now been delayed till the COIF share value improved.

9. MOVEMENT IN FUNDS

Unrestricted funds Restricted funds Total Funds	Brought forward Incoming Resources Resources Expended Other Gains/Losses Carried forward £ £ £ £ £ 408,581 122,308 (115,821) 107,622 522,690 4,345,000 0 0 0 4,345,000
	4,753,581 122,308 (115,821) 107,622 4,867,690

10. POST BALANCE SHEET EVENT

In respect of the current COVID 19 situation the Trust has reviewed its activities and has been relatively unaffected by this and therefore have made no adjustments to the accounts.

We expect the situation not to have an impact on the Trust's ability to continue as a going concern. The Trustees continue to monitor the situation as it rapidly changes and will react to further developments.