The Bequest of Joseph Ewart
Report and Financial Statements
Year ended 31 March 2023
The Charity’s Accounts are detailed below and comprise:
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The Trustees Annual Report
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Accounting Policies
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Statement of Financial Activity – showing incoming resources and resources expended.
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Balance Sheet – showing assets and liabilities.
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Notes to the Accounts
The Trustees’ Annual Report
The Trustees present their report together with the Annual Accounts for the financial year ended 31 March 2023.
The annual report and accounts for the year ended 31 March 2023 have been prepared by the Trustee in accordance with 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 (FRS 102) (effective 1 January 2019) and the Charities Act 2011 and UK Generally Accepted Practice.
The Trustees have also complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
Charity name: Bequest of Joseph Ewart Charity number: 237580 Principal Office: Waverley Borough Council The Burys Godalming Surrey GU7 1HR Name of Trustees: Waverley Borough Council (address as above) Contact: Mr R Bates Bank details: The Trust currently uses the Bank Account of Waverley Borough Council. HSBC Bank plc 12a North Street Guildford GU1 4AF
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Independent Examiner:
Azets Audit Services Limited Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
Structure, governance and management:
The governing document is the last will of the late Joseph Ewart. The former Farnham Urban District Council inherited the bulk of the estate of the late Joseph Ewart in 1958. The monies were left in trust for the purchase of a piece of land in or near Farnham, the building and the subsequent maintenance of small dwellings suitable for elderly people of limited financial resources. In 2000/2001, following approval given by the Charity Commission, the Bequest financed the construction of a further three bungalows in Farnham, to provide additional accommodation on the same terms as the original Bequest. The three new bungalows were completed at the beginning of 2001/2002 and were originally reflected in the Balance Sheet at the construction cost, however, since then the District Valuer has revalued the properties and the revaluations are reflected in the accounts below.
Waverley Borough Council is sole trustee of the Trust. The last will of the late Joseph Ewart made the original Bequest to the former Farnham Urban District Council. Following the Local Government reorganisation in 1974, the Farnham Urban District Council was merged, together with several other district councils, to form Waverley Borough Council. Waverley Borough Council then became Trustee of the Ewart Bequest and fulfils its duty by ensuring that funds are spent in accordance with the terms of the Bequest.
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Decision taking: The day-to-day business of the Trust is the maintenance of the dwellings. This does not require decisions to be taken but in the event that a decision has to be made a report is taken to a Council meeting of Waverley Borough Council in its capacity as trustee. Approval is also sought from the Charity Commission. This is to ensure the proposed decision is appropriate.
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Risk Exposure: Consideration has been given to the major risks to which the Trust is exposed. In the event that the Ewart Bequest falls into difficulty it is reasonable to assume that Waverley Borough Council would step in to resolve the situation in line with its corporate priority of ‘Affordable Housing’.
Aims and Objectives of the Charity for the public benefit:
- The objectives of the Trust are the provision of homes or accommodation for elderly people with limited financial resources in Farnham, Surrey.
The properties held in the Trust are exempt from Right to Buy.
In line with the requirement to report on the charity’s public benefit, the Trustees have considered the Charity Commission guidance on public benefit including the guidance on geographical restrictions and restrictions based on charitable need. The restrictions imposed by the
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governing document and aims and objectives of the charity are deemed reasonable as they address a charitable need.
Achievements and Performance:
The dwellings were maintained so as to be fit for purpose as set out in the aims and objectives.
Expenditure totalled £45k (excluding depreciation) against income of £126k. The surplus of £81k was transferred to the Unrestricted Funds Account, which remains in surplus.
Reserves Policy: The Trust will hold reserves at a minimum level of £105k. The reserves of the Trust will be used entirely in the execution of its aims and objectives.
Plans for the future: For the continued provision of dwellings as set out in the last will of the late Joseph Ewart.
On 1 March 2016 the Trustee of the Bequest of Joseph Ewart approved the use of the Unrestricted Funds for the purchase of land and construction of three properties in furtherance of the aims and objectives of the Trust. The proposals required approval by the Charity Commission which has been given. However, land purchase and construction costs are estimated to exceed the original approval and unrestricted funds held so the Trustee is reviewing options to further the Trusts aims within the funds available.
Independent Examiner reappointment:
The Independent Examination of the Trust’s annual report and accounts was carried out by Azets Audit Services Limited. The reappointment of the Independent Examiner will be subject to review.
Richard Bates
Executive Head of Finance and Section 151 Officer of Waverley Borough Council
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Trustee's Responsibilities Statement
The trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and regulations.
The Charities Act 2015 requires the trustee to prepare financial statements for each financial year. The trustee has to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustee is required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2015, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustee confirms that:
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so far as the trustee is aware, there is no relevant audit information of which the charity's auditor is unaware; and
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the trustee has taken all the steps that it ought to have taken as a trustee in order to make itself aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The trustee is responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Statement of Main Accounting Policies
1. General Principles
The financial statements summarise the Bequest of Joseph Ewart Trust’s transactions for the 2022/2023 financial year and its position at the year-end on 31 March 2023. The accounts have been prepared in accordance with 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 (FRS 102) (effective 1 January 2019) and the Charities Act 2011 and UK Generally Accepted Accounting Practice. The accounting convention adopted is historical cost with the exception of the revaluation of certain categories of tangible fixed assets.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS102) effective from 1 January 2019.
No material uncertainties that may cast significant doubt about the ability of the entity to continue as a going concern have been identified by the trustee, therefore, the entity is expected to continue as a going concern for at least 12 months from the balance sheet date.
2. Funds Structure
The Charity has two funds, which are:
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Unrestricted Funds – these are funds which are available to the trustees to apply for the general purposes of the charity as set out in its governing document. These are ‘general funds’ which are free to be used for any of the charity’s purposes.
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Endowment Funds – these are held on trust to be retained for the benefit of the charity as a capital fund. This fund is formed from the initial gift and any subsequent increases or decreases.
The Endowment Funds of this charity are classed as Permanent Endowment Funds as the trustees must maintain the whole of the fund. The Endowment Funds comprise the monies left in trust from the last will of the late Joseph Ewart in 1958 and the subsequent dwellings built which form the fixed assets of the charity.
The analysis of the Charitable Funds is disclosed in note 8 on page 12.
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3. Incoming Resources
Activity is accounted for in the year that it takes place, not simply when cash is received. Where income has been recognised, but cash has not been received, a debtor for the relevant amount is recorded in the balance sheet.
Where the amount of an item of income relating to the financial year is not known at the 31 March, estimation techniques are applied to ensure that the accounts reflect the most likely position.
The following income is received:
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Investment income – the Ewart Bequest Trust uses Waverley Borough Council’s bank account. Interest is calculated on the working balance according to the interest rates obtained on Waverley’s investments. Interest earned for the year is credited at the year-end to the Ewart Bequest Trust.
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Rental Income – received from the residents residing in the Trust’s dwellings.
4. Resources Expended
Activity is accounted for in the year that it takes place, not simply when cash payments are made. Where expenditure has been recognised, but the payment not made, a creditor for the relevant amount is recorded in the balance sheet.
Where the amount of an item of expenditure relating to the financial year is not known at the 31 March, estimation techniques are applied to ensure that the accounts reflect the most likely position.
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Premises costs – these comprise mainly the cost of up keep of the dwellings.
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• The costs of administration is the charge from Waverley Borough Council for support services.
5. VAT
Irrecoverable VAT is charged to the category of resources expended to which it was incurred.
6. Tangible Fixed Assets
Tangible fixed assets have physical substance and are held for use in the provision of services or for administrative purposes on a continuing basis.
Recognition: Expenditure on the acquisition, creation or enhancement of tangible fixed assets is capitalised on an accruals basis provided that it yields benefits for more than one financial year. Expenditure that secures but does not extend the previously assessed standard of performance of assets (e.g. repairs and maintenance) is charged to revenue as it is incurred.
The de minimis level for the recognition of fixed assets is £10k for land and buildings.
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Measurement: Assets are initially measured at cost, comprising all expenditure that is directly attributable to bringing the asset into working condition for its intended use. Assets are then carried in the balance sheet using the following measurement bases:
- Land and buildings – fair value, determined using the basis of Existing Use Value for Social Housing
Assets included in the balance sheet at current value are revalued where there have been material changes in the value, but as a minimum every five years.
Impairment: following a determination of impairment, a loss in value is included in the Resources Expended section of the Statement of Financial Activities.
Depreciation: depreciation is provided for on all assets with a determinable finite life by allocating the value of the asset in the balance sheet over the periods expected to benefit from their use. It is accounted for in the Resources Expended section of the Statement of Financial Activities.
Depreciation is calculated on the following bases:
- Buildings – straight-line allocation over the life of the property as estimated by the valuer
Newly acquired/enhanced assets receive a full depreciation charge in their first year, regardless of the precise timing of the expenditure. Assets disposed of receive no depreciation charge in the year of disposal. Where an asset has major components with different estimated useful lives, these are depreciated separately.
Following a revaluation, a full year of depreciation is charged in the year of revaluation.
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Waverley Borough Council as Trustee of the Ewart Bequest
Statement of Financial Activities
| 2021/2022 | 2021/2022 | 2022/2023 | |||
|---|---|---|---|---|---|
| Unrestricted | Endowment | Total | |||
| Funds | Funds | Funds | |||
| £'000 | £'000 | £'000 | £'000 | ||
| Incoming Resources | |||||
| Incoming Resources from generated funds | |||||
| (9) | Investment Income (Interest on cash balance) | (25) | (25) | ||
| (82) | Rental Income | (101) | (101) | ||
| (91) | Total Incoming Resources | (126) | 0 | (126) | |
| Resources Expended | |||||
| Charitable activities | |||||
| 19 | Premises and fees | 32 | 32 | ||
| 2 | Independent examination fee | 0 | 0 | ||
| 11 | Support Costs | 13 | 13 | ||
| 31 | Depreciation | 17 | 17 | ||
| 63 | Total Resources Expended | 45 | 17 | 62 | |
| (28) | Net (incoming)/outgoing resources | (81) | 17 | (64) | |
| Transfer between funds | |||||
| 0 | Asset additions | 0 | 0 | 0 | |
| Other Recognised Gains | |||||
| (250) | (Gains)/Losses on Revaluation of fixed assets | 368 | 368 | ||
| (278) | Net Movement in Funds | (81) | 385 | 304 | |
| Reconciliation of Funds | |||||
| (3,174) | Funds brought forward as at 1 April 2022 | (1,511) | (1,942) | (3,453) | |
| (278) | Net Movement in Funds | (81) | 385 | 304 | |
| (3,452) | Funds carried forward as at 31 March 2023 | (1,592) | (1,557) | (3,149) |
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Balance Sheet as at 31 March 2023
The assets in this Balance Sheet comprise 16 dwellings in College Gardens, Farnham and 3 dwellings in Arthur Road, Farnham.
| 31 | March 2022 | 31 March 2023 | |||
|---|---|---|---|---|---|
| Unrestricted | Endowment | Total | |||
| Funds | Funds | ||||
| £'000 | £'000 | £'000 | £'000 | ||
| Tangible Fixed Assets | |||||
| 1,942 | Other Land and Buildings - Trust dwellings | 1,557 | 1,557 | ||
| Current Assets | |||||
| 0 | Debtors | 1 | 1 | ||
| 1,516 | Deposits with Waverley Borough Council | 1,594 | 1,594 | ||
| 1,516 | 1,595 | 0 | 1,595 | ||
| 3,458 | 1,595 | 1,557 | 3,152 | ||
| Less: Current Liabilities | |||||
| (6) | Creditors & Receipts in Advance | (3) | (3) | ||
| 3,452 | Total Assets less Current Liabilities | 1,592 | 1,557 | 3,149 | |
| The Funds of the Charity: | |||||
| (1,510) | Unrestricted Funds | (1,592) | (1,592) | ||
| (1,942) | Endowment Funds | (1,557) | (1,557) | ||
| (3,452) | Total Charity Funds | (1,592) | (1,557) | (3,149) |
The notes on pages 10 to 12 form part of these accounts.
Richard Bates
Executive Head of Finance and Section 151 Officer of Waverley Borough Council
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Notes to the Financial Statements
1. Related Party Transactions
Disclosure is required of any transactions which the Trust or any institution connected with it has entered into with a related party. Such transactions might inhibit the charity from pursuing its own separate interests.
Transparency is important to ensure the reported financial position and results do not include transactions influenced by interests other than the Trusts.
Waverley Borough Council is sole trustee of the Trust and, therefore, the only related party. As trustee, Waverley Borough Council conducts the business of the Trust in accordance with the terms of the Bequest. It does this through its own finance system and bank account.
There are no related party transactions as at 31 March 2023 except as disclosed in note 3.
2. Officers' and Trustees Emoluments
There are no employees with emoluments over £60,000 charged to the Ewart Bequest Trust in 2022/2023.
No remuneration was paid to the Trustee or persons connected with the Trustee.
3. Support Costs
Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. They cover costs incurred in supporting the governance of the charity as well as the general management, budgeting and accounting & human resources. The staff that support the Trust are paid by Waverley Borough Council and then recharged to the Trust accounts.
Charitable Activities 2021/2022 2022/2023 £'000 £'000 11 Support costs 13
The support costs are allocated at the year end on the basis of time spent on the charity. The charge includes overheads.
4. Independent Examiner Costs
The Ewart Bequest was subject to Independent examination for 2022/2023.
The fee charged to 2022/2023 is the accrued fee for the Independent examination of the 2022/2023 accounts.
| 2021/2022 | 2022/2023 | |
|---|---|---|
| £'000 | £'000 | |
| 2 | External Independent Examiner Fees | 0 |
| 2 | 0 |
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5. Fixed Assets
Movement on Fixed Assets
| Operational Assets Cost or Valuation At 1 April 2022 Additions/enhancement At 31 March 2023 Depreciation and Impairments At 1 April 2022 Charge for 2022/2023 Depreciation written out in the Endowment Funds At 31 March 2023 Balance Sheet amount at 31 March 2023 Balance Sheet amount at 31 March 2022 Revaluations increases/(decreases) recognised in the Endowment Funds |
Other Land and Buildings £'000 1,942 0 (385) |
|---|---|
| 1,557 0 (17) 17 |
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| 0 | |
| 1,557 | |
| 1,942 |
Depreciation Methods used
Land and Buildings
Depreciation on buildings has been calculated on a straight-line basis using asset lives estimated by Waverley Borough Council's Asset Investment Manager.
6. Valuation Information
The valuation of the Council's assets:
Land and Buildings
The land and buildings were valued by Waverley Borough Council's Asset Investment Manager, in accordance with the Royal Institute of Chartered Surveyors (RICS) Statement of Asset Valuation Practice and Guidance Notes (Red Book) as supplemented by the Manual of Valuation (White Book). The land and buildings are valued at current value in existing use. The de minimis level for land and buildings has been set at £10,000.
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7. Creditors
| 31 March 2022 Closing Balance £'000 (6) Accruals and deferred income (6) Total of Creditors |
31 March 2023 Closing Balance £'000 (3) |
|---|---|
| (3) |
8. Analysis of Charitable Funds
| Unrestricted Funds Endowment Funds |
1 April 2022 31 March 2023 Opening Incoming Resources Closing Balance Resources Expended Balance £'000 £'000 £'000 £'000 1,511 126 (45) 1,592 1,942 (368) (17) 1,557 |
|---|---|
| 3,453 (242) (62) 3,149 |
9. Approval of Accounts
The Accounts were approved by the Trustee and signed by Richard Bates, Executive Head of Finance and Section 151 Officer, of Waverley Borough Council on 11 December 2023.
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Independent Examiner's Report to the Trustee of The Bequest of Joseph Ewart
I report to the trustee of The Bequest of Joseph Ewart (“the charity”) on my examination of the accounts of the charity for the year ended 31 March 2023 which are set out on pages 1 to 12.
Responsibilities and basis of report
As the charity’s trustee, 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 charity’s accounts carried out under section 145 of the 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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts 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.
Alex Temlett CA CTA ACA
For and on behalf of Azets Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
11 December 2023