CHARITY REGISTRATION NUMBER: 230928
The Francis W Reckitt Arts Trust Unaudited Financial Statements 30 September 2024
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 2024
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 5 |
| Statement of financial activities | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 |
The Francis W Reckitt Arts Trust
Trustees' Annual Report
Year ended 30 September 2024
The trustees present their report and the unaudited financial statements of the charity for the year ended 30 September 2024.
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) Mr C Cook Mr I Archer Company secretary Mr D Stoll Independent examiner Jeffrey Kelly FCA The Old Wheelhouse 31/37 Church Street Reigate Surrey RH2 0AD
1
The Francis W Reckitt Arts Trust
Trustees' Annual Report (continued)
Year ended 30 September 2024
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-près 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 this year, the Charity's Board was composed of four Trustees, who represent branches of the Arts and/or have specialised knowledge of such practical matters as Law, Administration etc. A new potential Trustee has been approached and has agreed to be appointed during the next year.
There were four Trustee Meetings held during the year, two of which were conducted via conference call. This is permitted in our system and all meetings were quorate. The Trustees discussed the Charity's broad strategy and areas of activity; day to day management is always delegated to the Secretary. He remained in regular communication with the Chairman, and also with the Director of Hawkwood College and various professional advisors through the year.
Risk Management
The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems continue to ensure that any necessary steps can be taken to lessen these risks.
Furthermore, the unrestricted funds available to the Trust are at a sufficient level to cover administration and support costs and to respond to emergencies should they arise.
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. There are regular discussions regarding the best policies under changing circumstances, and Rathbones monitor the situation regularly and inform the Trust of any important matters arising.
2
The Francis W Reckitt Arts Trust
Trustees' Annual Report (continued)
Year ended 30 September 2024
Objectives and activities
Objectives and Aims
The Trust has continued its activity in 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.
The strict guidelines regarding 1] professional status and 2] need for assistance remained in place throughout the changing circumstances of the year.
Achievements and performance
Charitable Activities
A total of £120,230.00 was paid out as Grants over this financial year. During the year, Hawkwood College was allocated £112,500 for the HARP programme, and £4,900 was paid to other Charities which the Trust supports in furtherance of its Aims. Individual Artists received grants totalling £2,830 during this period
As predicted in last year's Report, the Trust distributed more than its Income this year, drawing from previously re-invested Income to ensure solid support for relevant beneficiaries at this difficult time for Artists. Disregarding money put aside in Savings for unexpected expenses in the coming year and investment management fees, the Trust's administration costs represented about 10% of the money drawn during the year.
Since beginning its Grant giving activities in 2016, the Trust has given a total of approximately £673,480 in Grants of various kinds, all in line with its declared aims.
Investment performance
Over the year to 30th September 2024, the total Income from the Fund was £112,244, supplemented by bank interest of £195 from the Savings Account. Regarding the Fund, the return of the Trust after fees was 11.5%, measured against the Rathbones Risk Level 5 Total Return Benchmark, which increased by 16.6%, and the ARC Charity Equity Risk peer group index of 13.8%. While the return in absolute terms is satisfactory, there is underperformance with respect to the benchmarks. Rathbones explains this as being due to 1] the focus on income-producing UK investments which have underperformed generally; and 2] a lower share of investment in the US technology sector, which, while being the market leaders, do not tend to pay dividends.
3
The Frnncls W Reckltt Arts Trust Tru8toe6' Annual Report I¢¥ Year ended 30 September 2024 Fln•nclal rnvl8w pollcy The unrestdctsj fund8 are at a knl to CLNer •JminhtratvJn arKI support ¢08ts and to respond lo emergencies shoubj they arise. The level of draw¢Syn during the year covwed all the minBtfative ¢ts of the Chanty. the balanco being u8od fty giving grants in accordance with the Tru$V8 aims. Inv••tm•nt polley and obl•dlv The Trusteos ha no r8strlclion t)n InveBtment and the admlni8tra¥on of tha portfollo is dokgated on a day to day basis to RalhtKJnes in a dealing and athisory capacty. Tha Fund manager. on behaff of the Trust. regulgrly monitor8 ffthments in the markets 8nd makes nwssary adi'ustments to the portfolD. Plan• for lutur• prfod• Thero are currentty no major plans fLY changirwJ the inv8Sttrtht pattem ¢)ver the coming year, though the situation of the markets will b8 watched ¢ar8fv1ty by Rathba& 8nd adju¥kn8nts made The Truste88, havNw (xrefvlly consbjered the figures and Ihe Situation, haN dechle4J to remain at Rk Level 5. Try aro keeping open, for the present, the possibilty of changing the baknce of Inve8tmnt8 ler in the coming y8ar io attract a sIahIty higher irKcrn. withln tha general requirement of at lea$1 rnhing inflation in rnising the value of Ihe Fund. The trustees, annual report was approv•J ty) .l.%...VJ... :'Lfand sigrd on behaw ol the board of tru8le65 by.. Mr D Stoll Charity Secretary
The Francis W Reckitt Arts Trust
Trustees' Annual Report (continued)
Year ended 30 September 2024
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 level of drawdown during the year covered all the administrative costs of the Charity, the balance being used for giving grants in accordance with the Trust's aims.
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.
Plans for future periods
There are currently no major plans for changing the investment pattern over the coming year, though the situation of the markets will be watched carefully by Rathbones and adjustments made as necessary.
The Trustees, having carefully considered the figures and the situation, have decided to remain at Risk Level 5. They are keeping open, for the present, the possibility of changing the balance of investments later in the coming year to attract a slightly higher income, within the general requirement of at least matching inflation in raising the value of the Fund.
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
Mr D Stoll Charity Secretary
4
The Francis W Reckitt Arts Trust
Independent Examiner's Report to the Trustees of The Francis W Reckitt Arts Trust
Year ended 30 September 2024
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 2024.
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:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
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
5
The Francis W Reckitt Arts Trust
Statement of Financial Activities
Year ended 30 September 2024
| 2024 | 2023 | |||
|---|---|---|---|---|
| Unrestricted | ||||
| fundsTotal funds | Total funds | |||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Investment income | 4 | 112,440 | 112,440 | 115,557 |
| ───────── | ───────── | ───────── | ||
| Total income | 112,440 | 112,440 | 115,557 | |
| ═════════ | ═════════ | ═════════ | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 5 | 19,531 | 19,531 | 18,279 |
| Expenditure on charitable activities | 6,7 | 152,860 | 152,860 | 140,418 |
| ───────── | ───────── | ───────── | ||
| Total expenditure | 172,391 | 172,391 | 158,697 | |
| ═════════ | ═════════ | ═════════ | ||
| Net gains on investments | 8 | (402,196) | (402,196) | (282,095) |
| ───────── | ───────── | ───────── | ||
| Net income and net movement in funds | 342,245 | 342,245 | 238,955 | |
| ═════════ | ═════════ | ═════════ | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 4,839,860 | 4,839,860 | 4,600,905 | |
| ──────────── | ──────────── | ──────────── | ||
| Total funds carried forward | 5,182,105 | 5,182,105 | 4,839,860 | |
| ════════════ | ════════════ | ════════════ |
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 8 to 13 form part of these financial statements.
6
The Francis W Reckitt Arts Trust
Statement of Financial Position
30 September 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 12 | 181 | 374 |
| Investments | 13 | 5,053,441 | 4,763,044 |
| ──────────── | ──────────── | ||
| 5,053,622 | 4,763,418 | ||
| Current assets | |||
| Debtors | 14 | 38,275 | 43,286 |
| Cash at bank and in hand | 92,708 | 37,956 | |
| ───────── | ──────── | ||
| 130,983 | 81,242 | ||
| Creditors: amounts falling due within one year | 15 | 2,500 | 4,800 |
| ───────── | ──────── | ||
| Net current assets | 128,483 | 76,442 | |
| ──────────── | ──────────── | ||
| Total assets less current liabilities | 5,182,105 | 4,839,860 | |
| ──────────── | ──────────── | ||
| Net assets | 5,182,105 | 4,839,860 | |
| ════════════ | ════════════ | ||
| Funds of the charity | |||
| Unrestricted funds | 5,182,105 | 4,839,860 | |
| ──────────── | ──────────── | ||
| Total charity funds | 16 | 5,182,105 ════════════ |
4,839,860 ════════════ |
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 8 to 13 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 2024
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.
8
The Francis W Reckitt Arts Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2024
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.
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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 2024
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 | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Income from listed investments | 97,991 | 97,991 | 100,660 | 100,660 |
| Bank interest receivable from deposit | ||||
| account | 195 | 195 | 125 | 125 |
| Other interest receivable | 14,254 | 14,254 | 14,772 | 14,772 |
| ───────── | ───────── | ───────── | ───────── | |
| 112,440 | 112,440 | 115,557 | 115,557 | |
| ═════════ | ═════════ | ═════════ | ═════════ |
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The Francis W Reckitt Arts Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2024
5. Investment management costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Portfolio Management | 19,531 | 19,531 | 18,279 | 18,279 |
| ════════ | ════════ | ════════ | ════════ |
6. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Charitable Activities | 144,601 | 144,601 | 131,808 | 131,808 |
| Support costs | 8,259 | 8,259 | 8,610 | 8,610 |
| ───────── | ───────── | ───────── | ───────── | |
| 152,860 | 152,860 | 140,418 | 140,418 | |
| ═════════ | ═════════ | ═════════ | ═════════ |
7. Expenditure on charitable activities by activity type
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Total funds | Total fund | |||
| directly Support costs | 2024 |
2023 | |||
| £ | £ | £ | £ | ||
| Charitable Activities | 144,601 | – | 144,601 |
131,808 | |
| Governance costs | – | 8,259 | 8,259 |
8,610 | |
| ───────── | ─────── | ───────── |
───────── | ||
| 144,601 | 8,259 | 152,860 |
140,418 | ||
| ═════════ | ═══════ | ═════════ |
═════════ | ||
| 8. | Net gains on investments | ||||
| Unrestricted | Total Funds | Unrestricted |
Total Funds | ||
| Funds | 2024 | Funds |
2023 | ||
| £ | £ | £ | £ | ||
| Gains/(losses) on other investment | |||||
| assets | 402,196 | 402,196 | 282,095 |
282,095 | |
| ═════════ | ═════════ | ═════════ |
═════════ | ||
| 9. | Net income | ||||
| Net income is stated after charging/(crediting): | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 193 | 193 | |||
| ════ | ════ | ||||
| 10. | Staff costs | ||||
| The total staff costs and employee benefits for the reporting period are analysed as | follows: | ||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Wages and salaries | 17,883 | 16,918 | |||
| ════════ | ════════ | ||||
| The average head count of employees | during the year was 1 (2023: | 1). |
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The Francis W Reckitt Arts Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2024
10. Staff costs (continued)
No employee received employee benefits of more than £60,000 during the year (2023: Nil).
11. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
One or more trustees has claimed expenses or had their expenses met by the charity. A total of £476 (2023 - £286) was reimbursed to 1 (2023 - 1) trustee in respect of travel expenses and a total of £nil (2023 - £575) in consultancy fees was paid to 1 trustee.
12. Tangible fixed assets
| Fixtures and | |
|---|---|
| fittings | |
| £ | |
| Cost | |
| At 1 October 2023 and 30 September 2024 | 2,804 |
| ═══════ | |
| Depreciation | |
| At 1 October 2023 | 2,430 |
| Charge for the year | 193 |
| ─────── | |
| At 30 September 2024 | 2,623 |
| ═══════ | |
| Carrying amount | |
| At 30 September 2024 | 181 |
| ═══════ | |
| At 30 September 2023 | 374 |
| ═══════ |
13. Investments
| Listed | Other | ||
|---|---|---|---|
| investments | investments | Total | |
| £ | £ | £ | |
| Cost or valuation | |||
| At 1 October 2023 | 4,762,944 | 100 | 4,763,044 |
| Acquisitions at cost | 588,196 | – | 588,196 |
| Disposals at opening book value | (643,396) | – | (643,396) |
| Net gains/(losses) on revaluations in the year. | 345,597 | – | 345,597 |
| ──────────── | ──── | ──────────── | |
| At 30 September 2024 | 5,053,341 | 100 | 5,053,441 |
| ════════════ | ════ | ════════════ | |
| Impairment | |||
| At 1 October 2023 and 30 September 2024 | – | – | |
| ════ | ════════════ | ||
| Carrying amount | |||
| At 30 September 2024 | 5,053,341 | 100 | 5,053,441 |
| ════════════ | ════ | ════════════ | |
| At 30 September 2023 | 4,762,944 | 100 | 4,763,044 |
| ════════════ | ════ | ════════════ |
All investments shown above are held at valuation.
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The Francis W Reckitt Arts Trust
Notes to the Financial Statements (continued)
Year ended 30 September 2024
13. Investments (continued)
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, £3,712,069 (2023 - £2,832,455) related to investment assets in the UK and £1,341,272 (2023 - £1,930,489) related to investment assets outside the UK.
14. Debtors
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Prepayments and accrued income | 38,275 | 43,286 | |
| ════════ | ════════ | ||
| 15. | Creditors: amounts falling due within one year | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Accruals and deferred income | 2,500 | 4,800 | |
| ═══════ | ═══════ |
16. Analysis of charitable funds
Unrestricted funds
| At | At | ||||||
|---|---|---|---|---|---|---|---|
| 1 | October | 20 | Gains and | 30 Septembe |
|||
| 23 | Income | Expenditure | losses | r 2024 |
|||
| £ | £ | £ | £ | £ | |||
| General funds | 4,839,860 | 112,440 | (172,391) | 402,196 | 5,182,105 |
||
| ════════════ | ═════════ | ═════════ | ═════════ | ════════════ |
|||
| At | At | ||||||
| 1 | October | 20 | Gains and | 30 September |
|||
| 22 | Income | Expenditure | losses | 2023 |
|||
| £ | £ | £ | £ | £ | |||
| General funds | 4,600,905 | 115,557 | (158,697) | 282,095 | 4,839,860 |
||
| ════════════ | ═════════ | ═════════ | ═════════ | ════════════ |
17. 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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