2021-04-05-accounts

Charity Registration No. 242328

THE SHELDON TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

THE SHELDON TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr J K R England
	Mr A P Bidnell
	Mrs R M Beatton
	Mrs R M Gibbins
	Mr P K England
Charity number	242328
Principal address	84 Eccleston Square
	Pimlico
	London
	SW1V 1PX
Independent examiner	Colin Dadswell FCA ACCA DChA
	Caladine Limited
	Chantry House
	22 Upperton Road
	Eastbourne
	East Sussex
	BN21 1BF
Bankers	CAF Bank
	25 Kings Hill Avenue
	Kings Hill
	West Malling
	Kent
	ME19 4JQ
Solicitors	Pothecary Witham Weld
	84 Eccleston Square
	Pimlico
	London
	SW1V 1PX
Investment advisors	Quilter Cheviot
	One Kingsway
	London
	WC2B 6AN

THE SHELDON TRUST

CONTENTS

	Page
Trustees' report	1 - 7
Statement of Trustees' responsibilities	8
Independent examiner's report	9
Statement of financial activities	10 - 11
Statement of financial position	12
Notes to the financial statements	13 - 23

THE SHELDON TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2021

The Trustees present their report and financial statements for the year ended 5 April 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Trust deed, the Charities Act 2011 and "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)".

Objectives and activities

The objects of the Trust are for such charitable purposes as shall from time to time be determined by the Trustees. In setting their grant making policy and when reviewing the Trust’s aims and objectives the Trustees confirm that they have had regard to the guidance provided by the Charity Commission on public benefit.

Grant Making Policy

The Trustees have established their grant making policy to achieve their objects for the public benefit. Following a merger with two other charities in the year ended 5 April 2013 the Trustees have continued to focus their grant giving in the West Midlands with particular emphasis on the following areas: Birmingham City, Coventry City, Dudley, Sandwell, Solihull, Wolverhampton and the County of Warwickshire but also now provide a limited number of grants nationally.

The main objective of the Trust - to relieve poverty and distress in society, especially in deprived areas, by providing grants to registered charities working with disadvantaged people - remains unchanged. In order to achieve this objective, grants are made to charities working in the following four areas:

1. Community Projects (West Midlands only): these would be primarily community-based organisations, run by local volunteers and/or some paid staff. They would be addressing identified local needs of an individual or a community nature.

2. Special Needs Groups (West Midlands only): these would be addressing the special needs of groups or individuals with age, health or learning issues which put them at a disadvantage within society.

3. Youth Development (nationally): these would support programmes which address the needs of 16-25 year olds, especially those not in education, employment or training (NEETs). While individuals will not be selected and supported directly, the Trustees will consider applications from programmes which encourage young people to expand their experiences and challenge their capacities.

4. Holidays for the disadvantaged (West Midlands or Greater London): the average value of these small grants is £1,000. The grants are for holidays for people living in the defined area who are disadvantaged due to age, disability or other special needs who would otherwise not be able to have a holiday. Holidays must take place in the UK.

The Trustees will consider applications for projects, salaries, equipment, furnishings and running costs.

The Trustees do not consider applications from charities with an annual income of over £1M and/or free unrestricted reserves to the value of more than six months of their annual expenditure.

In addition to the above the Trustees may put aside a portion of their income for grants for special projects of which they have personal knowledge or an organisation which they have supported in the past.

The Trustees only make grants to other registered UK charities as they consider that such charities, established as they are for the public benefit, are best placed to further the charitable objectives of the Trust. This also provides reassurance that the grants the Trustees make go to worthy, charitable and accountable recipients. Occasionally grants are made to non-registered charities but in these instances payment is made through a sponsoring third party registered charity.

• 1 -

THE SHELDON TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

The Trustees play a very active role in the Trust and review their policy and criteria regularly. Although they have a central policy, flexibility is retained to allow for reaction to changes in the environment and the community alike. The Trustees continue to commit a proportion of their income to multi-year grants for a period of two or three years which means they have less income to distribute for other charitable purposes in any given year. The Trustees keep the value of these continuing grants under review to avoid over committing their resources.

During the reporting period, given the current challenges resulting from COVID-19, the Trustees felt they needed to exercise further flexibility in regards to grant-making and encouraged applicants to highlight where they require support to help continue their important work.

Achievements and performance

The Trustees met twice during the year and authorised 24 grants of the total value of £170,915 as set out below.

Community Projects

Five grants were authorised under this category during the year totalling £42,920. This figure included one grant of £19,920 that would be paid over two years. Of the grants authorised under this category four were to charities previously known to the Trustees.

Youth Development

Eight grants were authorised under this category during the year totalling £61,000. This figure included one grant of £15,000 that would be paid over three years. Of the grants authorised under this category five were to charities previously known to the Trustees.

Special Needs Groups

Eight grants were authorised under this category during the year totalling £62,995. This figure included one grant of £15,000 that would be paid over three years, one grant of £9,000 that would be paid over three years and one grant of £10,000 that would be paid over two years. Of the grants authorised under this category five were to charities previously known to the Trustees.

Holiday Fund

The Trustees set aside funds in support of holiday projects for disadvantaged people each year and during the year three grants totalling £4,000 were authorised. All grantees had been previously supported by the Trust.

The Trustees sometimes make conditional grants in the year which are not accrued or included pending fulfilment of the conditions. There was one conditional grant at the year end.

The Trust focused its grants on charities which were delivering front-line services, to ensure that the targeted groups benefitted directly. Grants were authorised for all the main categories supported by the Trust.

Here below an analysis of how grants were distributed according to the grant criteria, geographical area, purpose of grants.

• 2 -

THE SHELDON TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021 PERCENTAGE OF GRANTS PER CATEGORY Holiday Fund 13% 33% Commw¥ty Projerts Ythrth • Neets • Yc4Xh Caekprwt ¥Convnwty prq￿ • VALUEOF GRANTS PERCATEGORY E4.CO) £42.920 £62.995 • Neets • YThAh t*ekprwrt thiConvnLnty pro￿ts • Find

THE SHELDON TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

The Trustees authorised grants throughout their target geographical area with the greatest concentration in the West Midlands.

• 4 -

THE SHELDON TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

This year the majority of funds contributed to project costs. The Trustees do not restrict their funding to this area and welcome applications for all purposes apart from capital building costs.

Monitoring

All successful applicants are requested to provide a report on the use of the funding provided and how it has benefited the target groups. An official monitoring form is provided for the purpose of reporting under all categories with the exception of the holiday funding. The charities in receipt of a holiday grant are asked to provide a short narrative on the holiday funded as well as photographs or other proof that the holiday has taken place, within a year of the grant receipt.

The Trustees actively encourage grant recipients to provide a report on the use of funding received. A system is in place by which each month Charities who are on their last month of the project are sent the monitoring form. Furthermore, on monthly basis charities that are late to submit their end of project report are contacted to be reminded that the report is due. It is a condition of funding that monitoring reports are provided and those charities not providing completed reports will not be considered for funding in the future. Of those reports that were returned the Trustees were satisfied that their funding during the year ended 5 April 2021 and before had been successful in reaching the groups they were targeting with their grant making policy.

During the reporting period 32 reports were reviewed relating to grants authorised from categories 1 to 3. Each report is graded for performance against the original aim of the funding. Of the reports received 38% were judged to have exceeded expectations, 59% had achieved their goals and 3% had been only partially successful. None were completely unsuccessful.

Each year an average of five charities are visited by either the Trustees or the Trust Administrator. Visits are very effective at monitoring the projects and learning what is working, what is not and what the impact of the supported projects are. However, in the reporting period, visits could not take place because of the Covid 19 pandemic. Trustees plan to resume these very invaluable visits as soon as it will be safe to do so.

• 5 -

THE SHELDON TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Risk Management

The Trustees have identified the risks to which the Trust is exposed and have implemented procedures to mitigate those risks. The principle risk to the charity is considered to be a dramatic downturn in capital value.

The Trustees consider the major financial risk to be variability of returns on their investments. This is mitigated by diversifying their investments between rental properties and an investment portfolio. The Trustees employ expert property and investment managers to manage their investments and receive regular reports from each.

The major operational risk faced by the Trust is misuse of grant funding by recipients. The Trustees have implemented procedures to manage this risk through thorough review of all applications, pre-grant assessments, and effective monitoring of grants made. All applications must include detailed financial information about the Applicant.

As a result of Covid 19 the Trustees have also considered to include such adversities in the Trust’s risk register and have discussed ways to mitigate such risks.

Financial review

The Trust’s work is dependent on income from its investments. The capital fund is an expendable endowment but it is the Trustees’ policy to maximise income from their investments whilst maintaining a capital fund. This policy is kept under review and if the need arises the Trustees will reconsider this decision.

Investment Policy

The capital fund of the Trust consists of both property and stock exchange investments and this balance enables the Trustees to be a little more flexible in terms of their stock exchange holdings than might otherwise be appropriate. The Trustees choose not to invest in companies where more than 25% of profit is derived from the production or sales of Alcohol, Tobacco, Armaments or Gambling. However, should this policy prevent the purchase of shares which the investment manager would normally recommend then this will be considered on a case by case basis. The Trustees will continue to keep their ethical policy under review, considering both the positive and negative impact of investments.

Reserves Policy

The Trustees have given consideration as how best to benefit those groups and individuals to whom its policies are targeted to help in the short and longer term. They keep under review the number of grants which include payments in future years to ensure that they have sufficient funds to meet needs as they arise. The Trustees anticipate increasing needs in the areas they support in future years and have determined that they will maintain the capital fund, with organic growth, as a source for future grants.

The charity had an unrestricted capital fund of £5,922,543 (2020 - £5,065,301) and an unrestricted income fund of £123,103 (2020 – £93,840) which included known liabilities for future approved grants amounting to £48,210 (2020 - £68,000) as at 5 April 2021. The Trustees regularly review the value of grants authorised for payment in future years and have implemented procedures to ensure they do not become overcommitted in this regard.

There is a restricted income fund for holiday funding of £70,214 (2020 - £73,507) as a result of the merger which took place in March 2013.

The Trustees have determined that all net income will be distributed by way of grants, with the proviso that approximately £20,000 of the income fund will remain undistributed to enable the charity to be managed efficiently and to provide working capital.

• 6 -

THE SHELDON TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 5APRIL 2021 Fundral8lng The Trust understands its duty to protect the public, incI￿1r￿a vulnerable people, tr￿rt unreasonably inlrusNe or persistent fvJndrai$ing approaches aTrY undue pressure to d￿ale, bul does not currently fundraise from the public or use any intemal fundraiser5 or extemal fvTrJraNng agenaes for either Idephone or face-￿laCe campalgns and receivgj no fund￿Sing COmp￿1n15 duriThJ the year. Future Plans The Trustees 1¢X￿ fomard to continuing to make grants an emphasis on communlty and Spe￿al needs proie¢ls and the SFeC1f￿ category for disadvantaged young peop￿. The Twstees will continue to relain ftexibility as lo the liming and scale of grant-makiThJ. In order to achieve this cbje¢tive the Trustees will conts'nue lo monitor theiT investments wth the Intents'￿ of maintaining capital gr￿th whilst PfovidirvJ income for grant funding. The TTUStee$ will COnt￿ue to make grants one and rn￿e yews as apPr￿nate. Th￿ will aso explore ways to reduce ovethead co8ts by making Some larger grants whi15t stiu ¢onts'nuing to support small grassroots charities. The Trustees wll keep under remew the possbilty d merging with cthr ¢harities wilh similar obj¥ts to their own with a view to prcportionalely reducing overhead costs. Structurn. gOv•Man￿ and managem•nt The Shelden Trust is an unincorporated trust established by a Trust Deed dated 9 April 1965 and registered with the Charity Commission on 12 May 1985. The TnJslees have the ptywer to spend ci retain both capital and income and so the funds of the Trust are dassed as expendable endcwmt. The Trust does not aclivety fvndraise and seeks to contsnue its ¢harita)le work through careful stvw¥tsh'p of rts existing resour¢eg. The Truslees who Served durirvj the yew aThl up to the date of signature crf the finandal statements were.. Mr J K R Englend MrA P 8idnell Mrs R M 8e8tton Mrs R M Gibbins Mr P K England App￿ntrnent of new trustees 18 by invitalh)n of the existng Irnslees. Prospective new trustees a￿ invil&J lo attend Trustee Meetings prior to frymal apwintryEnt for induction training purpose5. The day-to-day management of Trust 1rt1￿J1ng administr*h)n of grants the processing of applications prior lo Considerati￿ by the Trustee5 is carried out by the Trusfs solKrtor. Pothecary Wtham Weld. The Tnjslees, report was appr by the Board of Trustees. MrJ K R England Truslee Dated.. 1 Octcts 2¢f21

THE SHELDON TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2021

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• 8 -

THE SHELDON TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

Current financial year Unrestricted Unrestricted Restricted funds funds funds general capital 2021 2021 2021 Notes £ £ £ Income from: Donations and legacies 3 2 - 707 Investments 4 231,259 - - Total income 231,261 - 707 Expenditure on: Raising funds 5 - 20,105 - Charitable activities 6 201,998 - 4,000 Total resources expended 201,998 20,105 4,000 Net gains/(losses) on investments 11 - 877,347 - Net movement in funds 29,263 857,242 (3,293) Fund balances at 6 April 2020 93,840 5,065,301 73,507 Fund balances at 5 April 2021 123,103 5,922,543 70,214	Total 2021 £ 709 231,259 231,968 20,105 205,998 226,103 877,347 883,212 5,232,648 6,115,860	Total 2020 £ - 267,266 267,266 23,998 209,344 233,342 (560,261) (526,337) 5,758,985 5,232,648

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 10 -

THE SHELDON TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

Prior financial year

Unrestricted Unrestricted Restricted funds funds funds general capital 2020 2020 2020 Notes £ £ £ Income from: Investments 4 267,266 - - Total income 267,266 - - Expenditure on: Raising funds 5 - 23,998 - Charitable activities 6 202,694 - 6,650 Total resources expended 202,694 23,998 6,650 Net gains/(losses) on investments 11 - (560,261) - Net movement in funds 64,572 (584,259) (6,650) Fund balances at 6 April 2019 29,268 5,649,560 80,157 Fund balances at 5 April 2020 93,840 5,065,301 73,507

Total 2020 £ 267,266 267,266 23,998 209,344 233,342 (560,261) (526,337) 5,758,985 5,232,648

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 11 -

THE SHELDON TRUST STATEMENT OF FINANCIAL POSITION ASAT 5APRIL 2021 2021 2020 Notas Flxgd assgts Investment prcperties Investments 12 13 2.043.000 4,011.287 2.043,000 3.145,874 6,054.287 5,188,874 Current assots Trade and other fec&vable5 Cash al bank arKI in hand 14 21,617 130.161 30,204 142,630 151.778 180,2051 172,834 (115.8101 Curront Ilabllities 15 Net current assets 71,573 57.024 Total 08••t8 lom curront Ilabllltl 6.125.860 5,245,898 Nonurrant Ilabllltles 16 (10.CK)01 113,2501 Not a880ts 6.115.860 5.232.648 Income fund8 Restricted fvnds Unrestricted funds- capit Unrestricted funds- general 70,214 5,922,543 123.103 73.507 5,C65.301 93,840 6.115.￿0 5,232,648 The financial statements were approv by Trustees on 1 Oct()er 2¢f21 Mr J K R ErKJland Truste• Trustee

THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

Charity information

The Sheldon Trust is an unincorporated trust established by a Trust Deed dated 9th April 1965 and registered with the Charity Commission on 12th May 1965.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's Trust deed, the Charities Act 2011 and "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)". The Trust is a Public Benefit Entity as defined by FRS 102.

The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted income funds comprise of funds which are free for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

For management purposes, the trustees have designated that the Trust's capital and capital profits will be retained and carried forward in a Capital Fund. At the discretion of the Trustees, on specific occasions, a transfer from the capital fund to the income fund will be made, to utilise some of the investment portfolio's capital gains for grant making. The Income Fund and income profits are utilised for awarding annual grants.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of the investment portfolio. Income from Government Securities is recognised when it is received.

• 13 -

THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies (Continued)

Rental income under operating leases is charged to the profit and loss accounts on a straight-line basis over the terms of the lease.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds includes fees and charges for the management of the investment portfolio.

• Expenditure on charitable activities includes grants made in furtherance of the Trust's objects, governance costs and support costs.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the yearend are noted as a commitment, but not accrued as expenditure.

Where grants are payable by instalment, payment of subsequent instalments is conditional on satisfactory interim progress reports. The trustees consider it probable that satisfactory reports will be received and subsequent instalments are not, therefore, treated as conditional.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance and governance costs which support the Trust's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

1.6 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities.

1.7 Non-current investments

Fixed asset Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the midmarket quoted price (the difference between mid-market and bid price is deemed not to be material). The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

• 14 -

THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies (Continued)

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

• 15 -

THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

3 Donations and legacies

Unrestricted Restricted funds funds income 2021 2021 £ £ Donations and gifts 2 - Legacies receivable - 707 2 707	Total 2021 £ 2 707 709	Total funds 2020 £ - -
		-

4 Investments

	Unrestricted	Unrestricted
	funds	funds
	income	income
	2021	2020
	£	£
Rental income	138,564	144,182
Income from listed investments	92,680	122,953
Interest receivable	15	131
	231,259	267,266

5 Raising funds

Unrestricted Unrestricted funds funds capital capital 2021 2020 £ £ Property management charges 4,120 3,512 Other property expenditure 7,164 8,988 Investment management 8,821 11,498 20,105 23,998	Unrestricted Unrestricted funds funds capital capital 2021 2020 £ £ Property management charges 4,120 3,512 Other property expenditure 7,164 8,988 Investment management 8,821 11,498 20,105 23,998	Unrestricted Unrestricted funds funds capital capital 2021 2020 £ £ Property management charges 4,120 3,512 Other property expenditure 7,164 8,988 Investment management 8,821 11,498 20,105 23,998
	capital	capital
	2021 £ 4,120 7,164 8,821 20,105	2020 £ 3,512 8,988 11,498
		23,998

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

6 Charitable activities

Grant funding of activities (see note 8) Share of support costs (see note 7) Share of governance costs (see note 7) Analysis by fund Unrestricted funds Restricted funds Support costs Support costs Governance costs £ £ Administration charges 27,594 - Bank charges 69 - Audit fees - - Accountancy - 4,240 Administration charges - 3,180 Administration and trustee expenses - - 27,663 7,420 Analysed between Charitable activities 27,663 7,420	Total 2021 £ 27,594 69 - 4,240 3,180 - 35,083 35,083	Total 2021 £ 170,915 27,663 7,420 205,998 201,998 4,000 205,998 Support costs Governance costs £ £ 27,138 - 74 - - 4,293 - 3,021 - 3,445 - 304 27,212 11,063 27,212 11,063	Total 2020 £ 171,069 27,212 11,063
			209,344
			202,694 6,650
			209,344
			Total 2020 £ 27,138 74 4,293 3,021 3,445 304
			38,275
			38,275

7 Support costs

Governance costs includes payments to the Independent Examiner for accountancy and Independent Examination services of £2,900 and £1,340 respectively.

• 17 -

THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

8 Grants payable

Community Projects: Acacia Family Support Ackers Adventure Bentley Beginnings Enterprise Home Group Karis Neighbour Scheme New Heights Warren Farm Community Project Piers Road New Communities Centre Association Ryders Green Methodist Day Centre Sudden Productions Youth Development: All change Arts Limited Autism Bedfordshire Birmingham Opera Company Families United Network Helm Training Limited Mentor Link One in a Million Only Connect Southwick Neighbourhood Youth Project Sport 4 Life UK St Martin's Youth Centre The Cirdan Sailing Trust The Door Youth Project Voluntary Action Coventry	2021 £ 3,000 19,920 5,000 10,000 - - - 5,000 - 42,920 2021 £ 5,000 - 2,000 15,000 5,000 - - - - 10,000 - 10,000 10,000 4,000 61,000	2020 £ - - - - 5,000 1,825 5,000 - 5,000
		16,825
		2020 £ - 6,000 - - - 5,651 5,638 5,000 10,000 - 9,985 - - -
		42,274

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

8 Grants payable (Continued)

Special Needs Groups: Advocacy Matters Birmingham Centre for Arts Therapies Chris Westwood Charity for Children with Physical Disabilities Coventry Rubgy Community Foundation Entraide (Mutual Aid) Geese Theatre Company Gilgal Birmingham Halow (Birmingham) Hope Projects Hopetowns UK Kingswood Trust Motor Neurone Disease Association Solihull Action Through Advocacy St Anne's Hostel The Enterprise Club for Disabled People The House on the Corner Community The Spring Playgroup and Preschool The Women and Families Resource Centre Warwickshire Wheelchair Basketball Academy Holiday Projects: Brent Carers Centre Elim Life Entraide Happy Days Children Hopetown UK Parallel Youth Enterprise Sussex Association for Spina Bifida and Hydrocephalus (SASBAH) Total grants payable	2021 £ 9,895 15,000 - 5,000 - - 7,000 - 10,000 - 10,000 3,100 - - - 3,000 - - - 62,995 2021 £ - 1,000 1,000 - - 2,000 - 4,000 170,915	2020 £ - - 5,000 - 30,000 8,475 5,831 - 10,000 - - 10,000 5,000 9,750 - 9,000 6,564 5,700
		105,320
		2020 £ 1,000 - - 650 500 - 4,500
		6,650
		171,069

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

8 Grants payable (Continued)

Reconciliation of grants payable

Accrued at 6 April		68,000		94,519
New grant commitments made in the year		170,915		171,069
Grants paid during the year	(190,705) (197,588)
Accrued at 5 April		48,210		68,000
Payable as follows
Grants payable within one year (see note 15)		38,210		54,750
Grants payable after one year (see note 16)		10,000		13,250
		48,210		68,000

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year, reimbursed expense during the year totaled £Nil (2020 - 3 Trustees were reimbursed £304).

10 Employees

The average monthly number of employees during the year was:

	2021	2020
	Number	Number
Total	-	-

11 Net gains/(losses) on investments

	Unrestricted	Unrestricted
	funds	funds
	capital	capital
	2021	2020
	£	£
Revaluation of investments	807,429	(573,024)
Gain/(loss) on sale of investments	69,918	12,763
	877,347	(560,261)

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

12 Investment property

Investment property
	2021
	£
Fair value
At 6 April 2020 and 5 April 2021	2,043,000

The properties were revalued on an open market value for existing use basis by ehB Reeves Chartered Surveyors on 25 September 2018.

The Covid-19 pandemic has also caused some uncertainty around the values of the Investment Properties. As at the balance sheet date the Trustees believe that there had not been a significant material impact on these values such that a loss on fair value should be included. Due to the ongoing uncertainty around the economic outlook and its impact on future property prices, the Trustees considered it inappropriate at this time to use the Charity's funds to obtain an external valuation, which could prove unreliable in the long term.

13 Fixed asset investments

Listed investments £ Cost or valuation At 6 April 2020 3,132,648 Additions 435,797 Valuation changes 807,429 Movement in cash balances - Disposals (371,848) At 5 April 2021 4,004,026 Carrying amount At 05 April 2021 4,004,026 At 05 April 2020 3,132,648 Investments at fair value comprise: Equity investments Fixed interest Property funds Cash on deposit	Cash in portfolio £ 13,226 - - (5,965) - 7,261 7,261 13,226 2021 £ 3,331,976 273,931 398,119 7,261 4,011,287	Total £ 3,145,874 435,797 807,429 (5,965) (371,848) 4,011,287 4,011,287 3,145,874 2020 £ 2,552,293 260,561 319,794 13,226 3,145,874

Fixed asset investments revalued

All investments are shown at open market value at the balance sheet date.

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

14 Trade and other receivables Amounts falling due within one year: Trade receivables Other receivables 15 Current liabilities Notes Other taxation and social security Deferred income 17 Grants accrued Accruals 16 Non-current liabilities Grants accrued 17 Deferred income Arising from Rental income received in advance	2021 £ 21,611 6 21,617 2021 £ 3,715 34,570 38,210 3,710 80,205 2021 £ 10,000 2021 £ 34,570	2020 £ 25,200 5,004
		30,204
		2020 £ 3,780 34,975 54,750 22,305
		115,810
		2020 £ 13,250
		2020 £ 34,975

18 Restricted funds

Restricted Funds represent a holiday fund which is for the sole purpose of providing holidays for the disadvantaged, in both London and the West Midlands areas.

					Movement in funds	Movement in funds
		Balance at	Resources	Balance at	Incoming	Resources	Balance at
	6	April 2019	expended	6 April 2020	resources	expended	5 April 2021
		£	£	£	£	£	£
Holiday income fund		80,157	(6,650)	73,507	707	(4,000)	70,214

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THE SHELDON TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

19 Analysis of net assets between funds

Current financial year

Unrestricted Capital Fund Unrestricted Income Fund Restricted Income Fund 2021 2021 2021 £ £ £ Fund balances are represented by: Investment properties 2,043,000 - - Investments 3,941,073 - 70,214 Current assets/(liabilities) (61,530) 133,103 - Long term liabilities - (10,000) - 5,922,543 123,103 70,214 Prior financial year Unrestricted Capital Fund Unrestricted Income Fund Restricted Income Fund 2020 2020 2020 £ £ £ Fund balances are represented by: Investment properties 2,043,000 - - Investments 3,072,367 - 73,507 Current assets/(liabilities) (50,066) 107,090 - Long term liabilities - (13,250) - 5,065,301 93,840 73,507

Total 2021 £ 2,043,000 4,011,287 71,573 (10,000) 6,115,860 Total 2020 £ 2,043,000 3,145,874 57,024 (13,250) 5,232,648

20 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

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