**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 prots • 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, incI1ra vulnerable people, trrt unreasonably inlrusNe
or persistent fvJndrai$ing approaches aTrY undue pressure to dale, bul does not currently fundraise from the
public or use any intemal fundraiser5 or extemal fvTrJraNng agenaes for either Idephone or face-laCe
campalgns and receivgj no fundSing COmp1n15 duriThJ the year.
Future Plans
The Trustees 1¢X fomard to continuing to make grants an emphasis on communlty and Speal needs
proie¢ls and the SFeC1f category for disadvantaged young peop. The Twstees will continue to relain
ftexibility as lo the liming and scale of grant-makiThJ. In order to achieve this cbje¢tive the Trustees will
conts'nue lo monitor theiT investments wth the Intents' of maintaining capital grth whilst PfovidirvJ income
for grant funding.
The TTUStee$ will COntue to make grants one and rne yews as apPrnate. 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
Appntrnent 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 1rt1J1ng 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
Non*urrant 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|
- 16 -
## **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|
- 18 -
## **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**|
- 19 -
## **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)|
- 20 -
## **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.
- 21 -
## **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|
- 22 -
## **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).
- 23 -