2021-09-30-accounts

CHARITY REGISTRATION NUMBER: 230928

The Francis W Reckitt Arts Trust Unaudited Financial Statements 30 September 2021

COVENEY NICHOLLS

Chartered accountants The Old Wheelhouse 31/37 Church Street Reigate Surrey RH2 0AD

The Francis W Reckitt Arts Trust

Financial Statements

Year ended 30 September 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	6
Statement of financial activities	7
Statement of financial position	8
Notes to the financial statements	9

The Francis W Reckitt Arts Trust

Trustees' Annual Report

Year ended 30 September 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 30 September 2021.

Reference and administrative details

Registered charity name The Francis W Reckitt Arts Trust Charity registration number 230928 Principal office Hawkwood College Painswick Old Road Stroud Gloucestershire GL6 7QW United Kingdom

The trustees

Mrs M Clark Mr C Green (Chairman) Ms K Danielson Mr C Cook Ms S Clapp Company secretary Mr D Stoll Independent examiner Jeffrey Kelly FCA The Old Wheelhouse 31/37 Church Street Reigate Surrey RH2 0AD

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The Francis W Reckitt Arts Trust

Trustees' Annual Report (continued)

Year ended 30 September 2021

Structure, governance and management

Governing Document

The charity is controlled by its governing document, a deed of trust established by Francis William Reckitt in 1929, and constitutes an unincorporated charity.

A scheme, modifying the original deed, was issued by the Charity Commission on 10 March 2016, allowing the Charity to use its funds for revised objects, cy-pres to the original ones, in supporting artists with temporary board and accommodation either at Hawkwood College or in other places of their choice.

Trustees

During most of this year, the Charity's Board was composed of five Trustees, who represent branches of the Arts and/or have specialised knowledge of such practical matters as Law, Administration etc.

Previously, there had usually been four Trustee Meetings in the year, when the Trustees agreed the broad strategy and areas of activity, and which also served as Grant Allocation Meetings. However, because of major changes in circumstances caused by the outbreak of the Coronavirus pandemic, and the various government instructions in response to it, only one 'normal' meeting was held, in December 2019.

The Secretary was in very regular communication with the Chairman, and also with the Director of Hawkwood College, through 2020. Important topics were put to virtual Trustee discussion by email, phone calls and video-conferencing, the main occasions being an e-mail meeting in March 2020, a Secretary's Report in July 2020 and a Zoom Conference in September 2020. All these deliberations were properly documented and archived. It is not currently known when actual face-to-face Meetings will be allowed to resume.

Day to day management is delegated to the Secretary.

Risk Management

The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Finance

The Charity is supported by investment income from the Trust Fund established by the benefactor. The Trustees hold annual meetings with Rathbones, as investment managers for the charity, to discuss and decide ongoing investment policy. During the current crisis, there has been regular discussion regarding the best policies under changing circumstances.

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The Francis W Reckitt Arts Trust

Trustees' Annual Report (continued)

Year ended 30 September 2021

Objectives and activities

Objectives and Aims

The Trust has endeavored as far as possible to continue its activity as providing and allocating Grant finance to allow for the temporary accommodation of Artists, alone or in groups, for rest, recreation, convalescence, study, research or quiet work. Generally, the Trust has a policy of supporting Artist Residencies at Hawkwood College as its major beneficence - the Hawkwood Artists Residency Programme (HARP) - and funding the bed and board costs of Artists working or resting away from home through other established specialist Charities or paid directly to places of residence chosen by individual artists.

When the restrictions regarding travel and accommodation rendered the Trust's usual activities impossible, any grants in progress were guaranteed to remain available for as and when they could be taken. It was also announced that no further grant applications would be accepted or grants given to charities and individual artists until the spring of 2021 at the earliest.

However, having paid all the HARP costs for residencies so far taken, an emergency HARP project was established to allow Hawkwood to continue its residencies as soon as the Government allowed; these began again in September 2020.

The strict guidelines regarding 1] professional status and 2] need for assistance remained in place throughout the changing circumstances of the year.

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The Francis W Reckitt Arts Trust

Trustees' Annual Report (continued)

Year ended 30 September 2021

Achievements and performance

Charitable Activities

A total of £51,650 was paid out as Grants over this period, though other Grants were allocated for taking up after the end of this financial year.During the year, Hawkwood College was allocated £19,125 for the HARP a given to individual Artists are always paid to the place of accommodation and never directly to the Artists.

Since beginning its Grant giving activities in 2016, the Trust has given a total of £226,029.30 (actual grants paid as opposed to offers made - not all are taken up) up to the end of the financial year 19-20.

Investment performance

Over the year to 30th September 2020 the total return after fees was -5.14%. This was rather better than the Trust's benchmark which fell by 11.93%; this was a difficult year for markets because of the Covid 19 pandemic.

For several months earlier in the year, the Trust continued to re-invest a small but significant part of the Income. However, since the changed circumstances, and given the reduced Income, the Trust has been spending almost all of that Income on charitable activities and administrative costs. This practice will be carefully monitored, considered and adjusted in the light of evolving circumstances.

Financial review

Reserves policy

The unrestricted funds are at a sufficient level to cover administration and support costs and to respond to emergencies should they arise. The current level of drawdown covers all the administrative costs of the Charity, the balance being used for giving grants in accordance with the Trust's aims. The intention for the near future, however, is to restore reserves, which have become depleted as a result of the emergency needs arising from the pandemic. Grants will not be given for a short while, and the Trustees will reconsider the situation after a few months in the light of circumstances and regulations at the time.

Investment policy and objectives

The Trustees have no restriction on Investment and the administration of the portfolio is delegated on a day to day basis to Rathbones in a dealing and advisory capacity. The Fund manager, on behalf of the Trustees, regularly monitors movements in the markets and makes necessary adjustments to the portfolio.

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The Francis W Reckitt Arts Trust

Trustees' Annual Report (continued)

Year ended 30 September 2021

Plans for future periods

There are currently no major plans for changing the investment pattern or the level of drawdown, though the situation of the markets over the coming months will be watched carefully by Rathbones and adjustments made as necessary.

The Trustees had intended during the year 2019-2020, to fund a project out of Income, and some initial payments were made in preparation. However, circumstances have delayed the continuation of that project. This, and other similar projects are under consideration in the light of the needs arising for artist accommodation during and following the pandemic, and it is likely that there will be a draw on Capital as well as Income during the next financial year.

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Mr D Stoll Charity Secretary

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The Francis W Reckitt Arts Trust

Independent Examiner's Report to the Trustees of The Francis W Reckitt Arts Trust

Year ended 30 September 2021

I report to the trustees on my examination of the financial statements of The Francis W Reckitt Arts Trust ('the charity') for the year ended 30 September 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements 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 giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the financial statements do not accord with those records; or

3. the financial statements do 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.

Jeffrey Kelly FCA

Independent Examiner

The Old Wheelhouse 31/37 Church Street Reigate Surrey RH2 0AD

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The Francis W Reckitt Arts Trust

Statement of Financial Activities

Year ended 30 September 2021

		2021		2020
		Unrestricted
		fundsTotal funds		Total funds
	Note	£	£	£
Income and endowments
Investment income	4	109,922	109,922	113,123
		─────────	─────────	─────────
Total income		109,922	109,922	113,123
		═════════	═════════	═════════
Expenditure
Expenditure on raising funds:
Investment management costs	5	19,220	19,220	17,822
Expenditure on charitable activities	6,7	131,116	131,116	80,510
		─────────	─────────	─────────
Total expenditure		150,336	150,336	98,332
		═════════	═════════	═════════
Net (gains)/losses on investments	8	(780,208)	(780,208)	334,421
		─────────	─────────	─────────
Net income/(expenditure) and net movement in funds		739,794	739,794	(319,630)
		═════════	═════════	═════════
Reconciliation of funds
Total funds brought forward		4,399,878	4,399,878	4,719,508
		────────────	────────────	────────────
Total funds carried forward		5,139,672	5,139,672	4,399,878
		════════════	════════════	════════════

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

The notes on pages 9 to 15 form part of these financial statements.

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The Francis W Reckitt Arts Trust

Statement of Financial Position

30 September 2021

		2021	2020
	Note	£	£
Fixed assets
Tangible fixed assets	13	847	1,127
Investments	14	4,986,007	4,294,289
		────────────	────────────
		4,986,854	4,295,416
Current assets
Debtors	15	53,650	59,228
Cash at bank and in hand		102,168	48,234
		─────────	─────────
		155,818	107,462
Creditors: amounts falling due within one year	16	3,000	3,000
		─────────	─────────
Net current assets		152,818	104,462
		────────────	────────────
Total assets less current liabilities		5,139,672	4,399,878
		────────────	────────────
Net assets		5,139,672	4,399,878
		════════════	════════════
Funds of the charity
Unrestricted funds		5,139,672	4,399,878
		────────────	────────────
Total charity funds	17	5,139,672 ════════════	4,399,878 ════════════

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Mr C Green (Chairman) Trustee

The notes on pages 9 to 15 form part of these financial statements.

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements

Year ended 30 September 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Hawkwood College, Painswick Old Road, Stroud, Gloucestershire, GL6 7QW, UK.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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 (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

3. Accounting policies (continued)

Incoming resources (continued)

• income from donated goods is measured at the fair value of the goods unless this is impracticle to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliabily measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

• investment income from interest and dividends is recognised when received.

Resources expended

Costs of generating funds consist of the management costs relating to the investment portfolio. The direct costs of providing services to guests are categorised as charitable activities. Governance costs comprise the expenditure associated with strategic management and compliance with statutory requirements.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 10% straight line

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

3. Accounting policies (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Income from listed investments	108,109	108,109	109,941	109,941
Bank interest receivable from deposit
account	1	1	17	17
Other interest receivable	1,812	1,812	3,165	3,165
	─────────	─────────	─────────	─────────
	109,922	109,922	113,123	113,123
	═════════	═════════	═════════	═════════

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

5. Investment management costs

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Portfolio Management	19,220	19,220	17,822	17,822
	════════	════════	════════	════════

6. Expenditure on charitable activities by fund type

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Charitable Activities	107,119	107,119	72,403	72,403
	Support costs	23,997	23,997	8,107	8,107
		─────────	─────────	────────	────────
		131,116	131,116	80,510	80,510
		═════════	═════════	════════	════════
7.	Expenditure on charitable activities by activity type

		Activities
		undertaken		Total funds	Total fund
		directly	Support costs	2021	2020
		£	£	£	£
	Charitable Activities	107,119	–	107,119	72,403
	Governance costs	–	23,997	23,997	8,107
		─────────	────────	─────────	────────
		107,119	23,997	131,116	80,510
		═════════	════════	═════════	════════
8.	Net gains/(losses) on investments
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Gains/(losses) on other investment
	assets	780,208	780,208	(334,421)	(334,421)
		═════════	═════════	═════════	═════════
9.	Net income/(expenditure)
	Net income/(expenditure) is stated after charging/(crediting):
				2021	2020
				£	£
	Depreciation of tangible fixed assets			280	281
				════	════
10.	Independent examination fees
				2021	2020
				£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial statements			2,400	2,400
				═══════	═══════

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

11. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2021	2020
	£	£
Wages and salaries	16,705 ════════	16,300 ════════

The average head count of employees during the year was 1 (2020: 1).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

12. Trustee remuneration and expenses

One or more trustees has claimed expenses or had their expenses met by the charity. A total of £79 (2020 - £243) was reimbursed to 1 (2020 - 1) trustee in respect of travel expenses.

13. Tangible fixed assets

	Fixtures and
	fittings
	£
Cost
At 1 October 2020 and 30 September 2021	2,804
	═══════
Depreciation
At 1 October 2020	1,677
Charge for the year	280
	───────
At 30 September 2021	1,957
	═══════
Carrying amount
At 30 September 2021	847
	═══════
At 30 September 2020	1,127
	═══════

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

14. Investments

	Listed	Other
	investments	investments	Total
	£	£	£
Cost or valuation
At 1 October 2020	4,294,189	100	4,294,289
Acquisitions at cost	595,821	–	595,821
Disposals at opening book value	(618,026)	–	(618,026)
Net gains/(losses) on revaluations in the year.	713,923	–	713,923
	────────────	────	────────────
At 30 September 2021	4,985,907	100	4,986,007
	════════════	════	════════════
Impairment
At 1 October 2020 and 30 September 2021		–	–
		════	════════════
Carrying amount
At 30 September 2021	4,985,907	100	4,986,007
	════════════	════	════════════
At 30 September 2020	4,294,189	100	4,294,289
	════════════	════	════════════

All investments shown above are held at valuation.

Financial assets held at fair value

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Of the listed investments held, £3,303,477 (2020 - £3,262,717) related to investment assets in the UK and £1,682,430 (2020 - £1,031,572) related to investment assets outside the UK.

15. Debtors

		2021	2020
		£	£
	Prepayments and accrued income	53,650	59,228
		════════	════════
16.	Creditors: amounts falling due within one year
		2021	2020
		£	£
	Accruals and deferred income	3,000	3,000
		═══════	═══════

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The Francis W Reckitt Arts Trust

Notes to the Financial Statements (continued)

Year ended 30 September 2021

17. Analysis of charitable funds

Unrestricted funds

			At					At
	1	October	20			Gains and	30	Septembe
			20	Income	Expenditure	losses		r 2021
		£		£	£	£		£
General funds		4,399,878		109,922	(150,336)	780,208		5,139,672
		════════════		═════════	═════════	═════════		════════════
			At					At
	1	October	20			Gains and	30	September
			19	Income	Expenditure	losses		2020
		£		£	£	£		£
General funds		4,719,508		113,123	(98,332)	(334,421)		4,399,878
		════════════		═════════	════════	═════════		════════════

18. Contingencies

During the year the charity agreed to pay grants to individuals of £1,445 (2020 - £1,870) that remained unpaid at the year end. These grants are due to expire within 1 year. In addition the charity agreed to pay an amount of £5,000 to Hawkwood for use after the year end.

19. Related parties

There were no related party transactions during the reporting period that are required to be disclosed under FRS 102.

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