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2020-12-31-accounts

Charity number: 244823

THE EARLEY CHARITY

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE EARLEY CHARITY

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 12
Independent auditor's report on the financial statements 13 - 16
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20 - 36

THE EARLEY CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees Dr D G Jenkins, Co-opted
Dr D C Sutton, Vice Chairman, Reading Borough Council
Mr R E Ames, Chairman, Earley Town Council
Mr P Hooper, Co-opted
Mrs M Waite, Co-opted
Councillor T Maher, Earley Town Council
Councillor L Terry, Reading Borough Council
Charity registered
number
244823
Principal office
St Nicolas Centre
Sutcliffe Avenue
Earley
Reading
Berkshire
RG6 7JN
Senior management
team
Miss J Wittig, Clerk to the Trustees
Independent auditor
James Cowper Kreston
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS
Bankers
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
HSBC Bank Plc
26 Broad Street
Reading
Berkshire
RG1 2BU
Solicitors
Field Seymour Parkes Solicitors
1 London Street
Reading
Berkshire
RG1 4PN
Investment advisers and
managers
Investec Wealth & Investment Limited
30 Gresham Street
London
EC2V 7QN

Page 1

THE EARLEY CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report together with the audited financial statements of The Earley Charity (the Charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2015).

Objectives and activities

Policies and objectives

The Earley Charity is a grant making trust with an area of benefit local to Reading described as the Ancient Liberty of Earley and the neighbourhood thereof. This provides a population of benefit potentially in excess of 150,000.

The object of the Charity shall be to further all or any of the following charitable purposes:

  1. the relief of the aged, disabled or poor inhabitants of the area of benefit;

  2. the relief of distress and sickness among the inhabitants;

  3. the provision and support (with the object of improving the condition of life for the inhabitants in the interests of social welfare) of facilities for recreation and other leisure time occupations;

  4. the provision and support of educational facilities for the inhabitants;

  5. any other charitable purpose for the benefit of the inhabitants.

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit. All the charitable aims and all the charitable activities of The Earley Charity are for the public benefit as defined and described in the Charity Commission’s guidance Charities and Public Benefit.

The objects are achieved by making grants to local charitable, voluntary and community groups, especially where the beneficiaries are likely to be aged, disabled or poor, as well as grants to individuals living within the area of benefit.

Grant making activities are broken down into the following categories:

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and activities (continued)

Grant Making Policy

The Trustees have a grant making policy to achieve the Charity’s aims for the public benefit. The public benefit of The Earley Charity’s charitable aims can be described under 3 headings: general aim, current priorities, and occasional benefits. In the terminology of the Charities Act, the general aim of The Earley Charity is relief of need. This is explicit in all the Charity’s governance documents, and the widest possible interpretation of “need” is allowed for. The Charity’s current priorities include the relief of need by reason of age and the advancement of the arts, culture and heritage. Other charitable purposes as defined by the Charities Act which are occasionally met by The Earley Charity include the relief of poverty; the advancement of education; the advancement of health; the advancement of community development; the advancement of amateur sport; the advancement of environmental protection or improvement; and the relief of need by reason of ill-health or disability.

Grant applications for a specified purpose are welcomed from any individual living permanently in the area of benefit and experiencing need. Decisions on applications from individuals up to a value of £500 are taken by the Grants Panel. Applications over £500 are reviewed by the Grants Panel and determined at a Trustee Meeting.

Local charitable, voluntary and community groups, especially where the beneficiaries are likely to be aged, disabled or poor, are able to make grant applications for one-off non recurrent funding for specific projects. Applications from organisations are currently considered 4 times a year.

All applications need to comply with the objects of the Charity for a grant to be approved.

Achievements and performance

Review of Achievements and Performance

In 2020 The Earley Charity celebrated 200 years of active philanthropy since the inception of its predecessor – the Earley Poor’s Land Charity – by the Sonning Inclosure Act of 1816 which was implemented from 1820. To mark this milestone the Trustees had previously set up 2 major bicentenary funding commitments that are expected to have a lasting and positive impact in the area of benefit. These are to fund an extension to the Earley CResCent Resource Centre to provide much needed additional capacity as well as a self-contained office for the Earley Charity, and the Bicentenary Fund, a one-off fund of £200,000 (later increased by Trustee decision to £230,543) to support bricks and mortar projects such as new builds, extensions and large-scale refurbishments due to complete in 2020.

The onset of the coronavirus pandemic in March triggered significant falls in equity markets which resulted in a sharp drop in the value of the Charity’s permanent endowment. In line with Government guidelines the Charity’s office closed and the staff team moved to remote working from home which continued throughout the year. This necessitated making changes to systems and processes including moving the IT from an office-based server to the Cloud. Trustee meetings planned for April and May were cancelled while alternative arrangements could be established. Meetings resumed in June using video conferencing.

Trustees quickly recognised the impact the coronavirus lockdown would have on the local voluntary sector and the ability of charities to fundraise, and the anxiety this would cause. Their immediate response was to reassure partner organisations and existing grant-holders that all existing grant commitments would be met no matter what arrangements were having to be made during the periods of lockdown. Existing grant-holders whose work was affected by the pandemic were also able to apply for a review of the conditions or the timing of their grant and could expect a sympathetic and flexible response from Trustees.

In light of the fall in the value of the Charity’s investment fund plus the fact that it has no other source of income and the office could not be normally staffed, Trustees reluctantly decided that new applications from organisations could not be considered. Due to continuing uncertainty around the investments caused by the pandemic this was later extended to the whole of 2020 for major grant applications.

Trustees continued making grants to individuals throughout the pandemic. They recognised the increased burden the pandemic would place on low-income families and anticipated an increased need for the individual

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

grants programme. Processes were quickly adapted to enable grant making to individuals to continue as far as was possible. The supply of white goods was hampered for a while as initially social distancing measures impacted on the ability of suppliers to deliver and install appliances.

In July, the Charity carried out a survey of current and previous Earley Charity grant recipients. One hundred and seven local organisations were invited to take part in the survey to find out how they were managing in the COVID-19 pandemic. Most respondent organisations were facing reduced income, increased costs in adapting their services or adopting different ways of working, and an increasing demand for their services. In response to the outcome of the survey Trustees set up a new small grants fund - The COVID-19 Support Fund. This £40,000 fund launched in September to provide grants of up to a maximum £2,000 to help organisations respond to the immediate needs of relaunching or adapting their service and activities following lockdown. Trustees met frequently to determine applications on a rolling basis to provide a timely response to organisations as they began to resume services following the first lockdown.

At the beginning of December Trustees announced their general organisational grants programme would restart in 2021.

Despite the impact on the investments and the challenges of remote working the Charity made 65 new grant awards in 2020.

----- Start of picture text -----
Individuals Organisations
82 enquiries
104 enquiries
36 applications received
37 applications received
33 grants approved
(New applications suspended between 25
(2 were later withdrawn)
March to 9 September 2020)
31 grants awarded 32 grants awarded
£9,171 £117,610
----- End of picture text -----

Grants to Individuals

Individual grant awards are made to families and individuals in financial hardship to enable them to buy essential household items and appliances such as beds, cookers and washing machines. Individuals and families faced increased social isolation, reduced income and mental and physical health issues because of the pandemic.

Trustees saw an increased demand for individual grants in 2020. One hundred and four enquiries were received, of which just over a third (36%) were from people who either live outside the Charity’s area of benefit or were requesting items which are excluded from the Trustees grant making. Just over 12% of enquirers were sign-posted to other local grant making charities. Thirty-seven applications were received, an increase of 27% on 2019, from which 33 grants were approved.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Grants to Organisations

The year started normally with Trustees awarding 6 grants at their first meetings of the year. A number of ongoing grant commitments were also renewed. In March application for new grants was suspended due to the pandemic but Trustees continued to accept applications for renewal of grants where an ongoing funding relationship existed.

Eight requests from existing grant-holders for changes to project timings or repurposing funds were received and approved. A further 6 organisations declared suspension or delays on reporting/finishing projects.

Organisational grant awards totalled £117,610 in 2020 mainly in support of organisations responding to the pandemic and for repeat funding to partner organisations.

Bicentenary Grants

Extension to the CResCent Resource Centre

Work on the extension was planned to begin in the summer of 2020. The onset of the pandemic and the first lockdown impeded preparations and progress was slower than planned. The tender process got underway in the autumn and a contractor was selected. Tender submissions came in higher than the Quantity Surveyor’s estimate which had informed the original provisional budget. Trustees reset the budget at £1.42 million in response to the tender and not because of any additions to the plans. The pandemic and issues relating to certain consents has meant that building work is yet to get underway. It is hoped work will be able to start in the spring of 2021 and will complete in the autumn.

Bicentenary Fund

In 2019 Trustees selected 6 projects to receive grants totalling £230,543 under the Bicentenary Fund. Trustees had been impressed by the quality and range of the projects proposed and wanted to support as many as possible at the full amount requested. They agreed to increase the amount available to enable them to do so. Most of the grantees were able to progress their projects despite the pandemic and 5 of the 6 grant awards were paid in full in 2020. However, because of the pandemic events to celebrate opening the facilities funded by these grants and to mark the Earley Charity’s Bicentenary were not possible. The grants and projects supported by the Bicentenary Fund are:

Existing/On-going Commitments

Earley Charity Worker Grants

Established in 2000, the Charity’s innovative and much-praised ‘Earley Charity Workers’ scheme fully funds one worker in each of a number of key voluntary sector organisations in the area of benefit, and provides job security by guaranteeing the funding into the future over a 3-year period. The purpose of the scheme is to provide local voluntary sector organisations with key personnel who can work to create an equal and fair society by directing activity as much as possible towards those experiencing distress and hardship, and supporting professionals working with the dispossessed and those in need, while making best use of resources by encouraging partnership working and creating opportunities for people to share knowledge, experience and resources.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Posts at Berkshire Women’s Aid (BWA), Reading International Solidarity Centre and Reading Voluntary Action continue to be funded with a total of £127,297.80 being paid in the year. In 2020 Trustees agreed to extend the funding of all 3 posts until December 2022.

Creation of ‘Earley Charity Worker’ posts is undertaken proactively by the Trustees, following extensive research, and applications for this purpose are not accepted.

Community Centres

The Trustees’ commitment to the advancement of community development has become well established and continues to be a significant priority. They recognise the valuable contribution community centres make to local communities. Trustees have a major involvement with 2 local centres: Earley CResCent Resource Centre in Earley and Weller Centre in Lower Caversham and have pledged on-going grant support to both.

Earley CResCent Centre and Weller Centre each receive funding for a post through the Earley Charity Worker Scheme and grant support for learning and activity programmes. Funding to the 2 centres in 2020 totalled £187,580. Trustees agreed to extend the funding of all 4 grants until December 2022.

Charity Partners

Over the past few years Trustees have established an on-going funding relationship with a number of organisations they know well. These organisations run projects that are closely aligned with the Trustees’ current priorities. Support of this on-going work continued in 2020 with grants being paid and renewed during the year. Trustees were pleased that each organisation was able to adapt their programmes to enable activities to continue throughout the pandemic.

Trustee-Led Grants

Just one project was supported under the Trustee-Led programme in 2020 before Trustees agreed to suspend this stream of grant funding to divert funds to other areas of grant making. A grant of £20,000 was awarded to Aspire2 for the salary costs of a Development Worker and related project costs for one year. £10,000 was paid during the year.

Douglas Chilvers Memorial Bursary

No applications to this fund were received or considered in 2020.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

COVID-19 Support Fund

Grants from this new fund which was set up in response to the coronavirus pandemic were awarded to organisations to help them relaunch services following the first lockdown. The grants could be used to offset costs including those associated with implementing preventative measures, buying equipment, consultancies to assist with relaunch activities, training of trustees, volunteers or staff and developing marketing materials to promote relaunch or changes to service or activity. At year end 20 awards totalling £29,242.00 had been paid from the fund. Projects supported included:

The COVID-19 Support Fund remained open into 2021 and a further 6 grants were awarded in January.

Monitoring achievement

The performance of organisational grant making is monitored using a mix of presentations and reports from grantees. It is a condition of the grant award that organisations complete a progress report where a grant is paid in instalments and/or a final report at the end of the grant. As well as telling what the grant helped to achieve and the difference it has made, this information also helps Trustees ensure the grant making has been carried out in accordance with the charitable objects and informs future programmes. Where an on-going funding relationship exists renewal of funding is conditional on a satisfactory report being received.

In 2020 5 progress reports and 31 completion reports were received. Several organisations reported an underspend on their grant funding as they had to close or suspend their service during the pandemic. Trustees gave approval for grant balances to be repurposed or retained for when services can re-commence.

The performance of individual grant making is monitored by carrying out follow-up calls on a selection of grant awards. The follow-up will ascertain the difference the grant has made, check funds have been used for the purpose they were awarded and assess the recipient’s experience of the grant process.

Financial Review

The Charity is funded by income and investment returns generated by its permanent endowment. The Trustees received authorisation from the Charity Commission to adopt total return accounting in an Order dated 15 January 2007. In 2010 the Trustees agreed to have income generated by the Main Fund reinvested and to draw down sufficient funds each year to cover expenditure. These withdrawals are in the form of a regular monthly transfer and occasional annual lump sum. The amount of the lump sum is determined by the Trustees following consultation with their fund manager, when setting their budget for the coming year.

At the start of the year Trustees were holding £2 million in local funds and had agreed to limit the withdrawal from the investment fund to £480,000 to be taken in regular monthly instalments of £40,000. They were therefore in the fortunate position of not having to draw on the investment to fund their ambitious grant making programme planned for 2020 at a time when the value of the portfolio had dropped. This meant Trustees were

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

in a strong position to be able to honour all existing grant commitments when the pandemic struck without taking more than the regular monthly withdrawal.

The annual transfers since adopting total return accounting have been as follows:

Year Amount 2008 £851,574 2009 £684,000 2010 £810,000 2011 £575,000 2012 £658,000 2013 £740,000 2014 £520,000 2015 £825,000 2016 £1,430,000 2017 £821,000 2018 £1,144,000 2019 £858,000 2020 £881,111

Financial review

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Review of the Accounts

The Charity’s investment income has decreased by some 24% from last year. The Liberty of Earley House income decreased by £13,669 (2019: decreased by £616,907). Direct charitable expenditure on grants decreased from £958,871 in 2019 to £578,027 in 2020.

The Charity’s net incoming resources before investment gains and losses shows a deficit this year of £492,884 (2019: surplus of £503,109).

Reserves Policy

The adoption of the total return basis of accounting means that the Trustees have the ability to transfer funds from the unapplied total return to maintain unrestricted free reserves at a level considered appropriate to the needs of the Charity.

Having carefully considered expenditure obligations and the general needs of the Charity, Trustees have decided on an agreed level of unrestricted free reserves of £500,000, equating to around six-months’ expenditure.

Asset Cover for Funds

The Trustees consider that the assets of the Trust are fully adequate to meet the Charity’s obligations.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Policy and Performance

The Charity operates a total return approach to the investment of the permanent endowment. In accordance with the terms of the Order made by the Charity Commission, the Trustees confirm that:

The Trustees’ investment managers are instructed to invest in a portfolio which will maximise total return with a medium high risk profile and are managing the permanent endowment on a total return basis.

The investment objective of the fund is to invest for maximum return whilst taking into account the protection of the underlying capital of the fund.

The investment portfolio began the year strongly having risen by 17.2% in 2019. The outbreak of the coronavirus pandemic triggered significant falls in equity markets causing a substantial drop in the value of the Charity’s portfolio. At the start of the year the fund was valued at £11,770,105 but by the end of March it had fallen by £2,143,964 to £9,626,141, a fall of 18.2%.

There was a strong recovery in the second quarter and at the half year mark the portfolio value had risen to £10,588,635. Small gains in the third quarter and good growth in the last quarter saw the portfolio end the year at £11,364,295 having almost regained the early year losses.

The Trustees regularly review their strategy for withdrawing money from the Fund with their Investment Manager and are comfortable with the current practice.

As part of their Debt Advice and Management strategy, the Trustees made an investment of £14,500 as a Corporate Investor with Berkshire Credit Union in 2013. Investments by Corporate Members strengthen Berkshire Credit Union’s ability to lend to individuals in need at affordable rates thereby providing people with an alternative to more traditional, high-interest loan companies. No dividend was paid on this in 2020 and the value remained at £14,627.

Structure, governance and management

Constitution

The Earley Charity is regulated by a Trust Deed sealed 10 May 1990, which replaced that of 14 November 1933.

The body of Trustees consists of 4 nominated Trustees and 4 co-opted Trustees. Nominated Trustees are appointed, 2 by Reading Borough Council and 2 by Earley Town Council. Each appointment is made for a term of 4 years at a meeting convened and held according to the ordinary practice of the appointing council. Coopted Trustees are appointed for a term of 5 years by a resolution of the Trustees passed at a meeting of which not less than 21 days’ notice has been given. Appointments may not be made more than one month before the term of an existing co-opted Trustee expires with effect from the date of expiry. In accordance with the Charity’s Trust Deed, where a Trustee is co-opted to the board to replace another Trustee, he or she will continue to serve the outgoing Trustee’s term of office.

New co-opted Trustees may be sought by advertisement or through nomination. Any potential new Trustee may have an informal meeting with a Trustee or the Clerk to the Trustees before being invited for interview with the Trustees. Once appointed they are given copies of the minutes from the previous 3 meetings and the Charity Commission booklet The Essential Trustee: What You Need To Know.

New and existing Trustees are provided with details of appropriate training opportunities as they occur.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management (continued)

The following Trustees served during the year:

Dr D G Jenkins Dr D C Sutton Mr R E Ames (Chairman) Mr P Hooper Mrs M Waite Councillor T Maher Councillor L Terry

The full body of Trustees meets 4 times a year. The first meeting of each year includes the Annual Meeting. At each of these meetings the Trustees consider the operations of the Charity and take decisions on recommendations made by the sub-committees. Grant applications received from individuals for over £500 and those received from organisations for over £3,000 are determined at these meetings.

The Grants Panel has been delegated the power to take decisions on grant applications from individuals (currently up to a value of £500). Power to approve organisational grants to a value of £3,000 is delegated to the Community Development Sub-Committee. It is felt that the delegation of power to sub-committees to take minor decisions is an appropriate way to ensure that the increasing workload of the Charity is handled in an efficient and effective manner.

The sub-committees are as follows:

Grants Panel Sub-Committee: considers applications from individuals. The Panel has authority to award grants up to £500 and makes recommendations on amounts over £500.

Finance and Planning Sub-Committee: deals with finance and strategic planning for the Charity. It has delegated authority to take straightforward financial decisions in line with existing Charity policy or precedents and exceptionally, major financial decisions in situations of urgency.

Community Development Sub-Committee: determines applications from organisations for amounts of £3,000 and under; previews larger applications which fall within its remit; develops and oversees policies for support for the arts and for community activities; and receives the presentations from the Earley Charity Workers.

Additional sub-committees will be set up from time to time to deal with issues as appropriate.

The Trustees periodically arrange special whole day meetings to dedicate time to discussing policy and planning issues. They would also use these occasions for training and team building.

Key Management Personnel

The Trustees are responsible for directing and controlling the Charity and all give of their time freely. Details of any payments made to Trustees are shown in note 13 to the accounts.

Trustees and key management are required to disclose all relevant related party information, copies of which are held by the Clerk to the Trustees. Details of transactions with related parties are shown in note 29 to the accounts. At the start of every meeting Trustees are asked to declare any conflicts of interest and conflicts of loyalty on the business of the meeting. Where a conflict arises they are required to withdraw from the meeting and take no part in the discussion or decision.

The day-to-day running of the Charity is delegated to the Clerk to the Trustees.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management (continued)

The pay of the Charity’s key management personnel is reviewed annually and normally increased in line with average earnings.

Risk management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

The Trustees consider poor investment performance to be the Charity’s principal financial risk. To mitigate this risk the Trustees employ the services of a reputable investment manager to manage the permanent endowment. Funds are invested in a diversified investment portfolio which is measured against a customised benchmark. The Trustees have also decided to inflation-adjust the original investment by £100,000 per annum to safeguard the endowment for future beneficiaries. Operating on a total return basis helps to stabilise the financial resources available for the grant making programmes while giving the flexibility to make substantial grants for desirable projects.

The operational risk of awarding grants that are ineffective is managed by ensuring as much information as possible is available to the Trustees when making their decisions. This is collected by way of an application form and is backed up by the Trustees’ extensive knowledge of the area of benefit. All individual applications have to be sponsored by a professional to whom the applicant is known and who can verify the need. The credibility of applications is further checked by the Charity’s Officers. The Trustees operate systems to monitor and evaluate the benefit of their grant making from which they learn what aspects work and where risks might lie. The Trustees accept that on occasions they will be taking risks by supporting new organisation or those that are not well known to them but consider these risks to be worthwhile in the pursuit of the achievement of the Charity’s objects and their strategic priorities.

The Trustees employ the services of a firm to provide HR advice to manage risks associated with employment.

Plans for future periods

An extension to the Earley CResCent Resource Centre, which is being funded as part of the Charity’s Bicentenary celebrations, will also include a self-contained office suite that is to become the new permanent home of The Earley Charity. Work on the extension is planned to start in the spring of 2021 and should be completed in the autumn at which time the Charity will move to its new office.

Trustees had plans to review their strategy and priorities in 2020, following which they would review their grantmaking policies, processes and practices. This had to be postponed because of the coronavirus pandemic. Trustees intend to recommence this as and when restrictions allow.

Remote working because of the pandemic required changes to systems and processes including moving the IT from an office-based server to the Cloud. Further modernisation of the IT provision is planned. This will include development of a document library using SharePoint to provide Trustees with access to key areas of documentation. There are also plans to look into specialised grant management software to replace the Access database currently used to record grant information.

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THE EARLEY CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Trustees' responsibilities

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 & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are 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 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

The auditor, James Cowper Kreston, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

R E Ames Trustee Date: 12/7/2021

D C Sutton Trustee Date: 12/7/2021

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THE EARLEY CHARITY

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EARLEY CHARITY

Opinion

We have audited the financial statements of The Earley Charity (the 'charity') for the year ended 31 December 2020 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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THE EARLEY CHARITY

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EARLEY CHARITY (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 14

THE EARLEY CHARITY

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EARLEY CHARITY (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Page 15

THE EARLEY CHARITY

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EARLEY CHARITY (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

James Cowper Kreston

Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS

Date: 22/7/2021

James Cowper Kreston are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 16

THE EARLEY CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income and endowments from:
Charitable activities:
3
. Liberty of Earley House
Investments
4
Other income
5
Total income and endowments
Expenditure on:
Raising funds
6
Charitable activities:
7
Liberty of Earley House
Charitable grants
Governance
Support costs
Total expenditure
Net (expenditure)/income before net
(losses)/gains on investments
Net (losses)/gains on investments
Net (expenditure)/income
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
128
1,242
-
1,370
-
34
578,027
12,932
118,279
709,272
(707,902)
-
(707,902)
881,111
173,209
500,550
173,209
673,759		 Endowment
funds
2020
£
-
260,901
-
260,901
45,883
-
-
-
-
45,883
215,018
(177,818)
37,200
(881,111)
(843,911)
12,466,275
(843,911)
11,622,364		 Total
funds
2020
£
128
262,143
-
262,271
45,883
34
578,027
12,932
118,279
755,155
(492,884)
(177,818)
(670,702)
-
(670,702)
12,966,825
(670,702)
12,296,123		 Total
funds
2019
£
13,797
346,552
1,392,403
1,752,752
47,101
89,527
958,871
17,854
136,290
1,249,643
503,109
1,323,380
1,826,489
-
1,826,489
11,140,336
1,826,489
12,966,825

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

The notes on pages 20 to 36 form part of these financial statements.

Page 17

THE EARLEY CHARITY

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Endowment funds
21
Unrestricted funds
21
Total funds		 397
1,448,281
1,448,678
(490,333)		 2020
£
3,113
11,634,295
11,637,408
958,345
12,595,753
(299,630)
12,296,123
11,622,364
673,759
12,296,123		 862
1,945,426
1,946,288
(720,937)		 2019
£
4,994
12,031,212
12,036,206
1,225,351
13,261,557
(294,732)
12,966,825
12,466,275
500,550
12,966,825

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

R E Ames Trustee Date: 12/7/2021

D C Sutton Trustee Date: 12/7/2021

The notes on pages 20 to 36 form part of these financial statements.

Page 18

THE EARLEY CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Cash flows from operating activities
Net cash used in operating activities
25
Cash flows from investing activities
Dividends and interest from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Money invested
Drawdown
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
26
The notes on pages 20 to 36 form part of these financial statements		 2020
£
(1,332,779)
355,634
-
-
-
480,000
835,634
(497,145)
1,945,426
1,448,281		 2019
£
(1,395,610)
10,911
3,279,627
(1,312)
(1,073,556)
630,000
2,845,670
1,450,060
495,366
1,945,426

Page 19

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Earley Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Going concern

The Trustees have considered the ability of the Charity to continue operating for the foreseeable future. As the Charity is able to draw down sufficient funds each year from its permenant endowment, to cover the expenditure of its grant making activities, due to an Order dated 15 January 2007 from the Charity Commision to adopt total return accounting, the Trustees believe that the financial statements have been prepared appropriately on the going concern.

1.3 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.

Dividend income and interest on UK government stocks are included within the financial statements when they are paid.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to the third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Charity. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the Charity.

All expenditure is inclusive of irrecoverable VAT.

Page 20

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

1.5 Interest receivable

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 institution with whom the funds are deposited.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

1.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.10 Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

1.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 21

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

1.12 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

1.13 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

1.14 Fund accounting

2. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions included in the financial statements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3. Income from charitable activities

Care home fees
Total 2019		 Unrestricted
funds
2020
£
128
13,797		 Total
funds
2020
£
128
13,797		 Total
funds
2019
£
13,797

Page 22

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. Investment income

Unrestricted
funds
2020
£
Quoted securities
-
Short term deposits
1,242
1,242
Total 2019
1,811		 Endowment
funds
2020
£
260,901
-
260,901
344,741		 Total
funds
2020
£
260,901
1,242
262,143
346,552		 Total
funds
2019
£
344,741
1,811
346,552

5. Other incoming resources

Profit on the sale of the Liberty of Earley
House
Total 2019		 Unrestricted
funds
2020
£
-
79,246		 Endowment
funds
2020
£
-
1,313,157		 Total
funds
2020
£
-
1,392,403		 Total
funds
2019
£
1,392,403

6. Raising funds

Investment management fees
Total 2019		 Endowment
funds
2020
£
45,883
47,101		 Total
funds
2020
£
45,883
47,101		 Total
funds
2019
£
47,101

Page 23

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2020
£
Liberty of Earley House
34
Grants payable
578,027
Support costs
118,279
Governance
12,932
709,272
Total 2019
1,202,542
Grants
Grants payable to organisations
Grants payable to individuals
Grants to Earley Charity Workers
Grants for Earley CResCent Community Association Resource Centre		 Total
funds
2020
£
34
578,027
118,279
12,932
709,272
1,202,542
2020
£
315,487
8,041
174,956
79,543
578,027		 Total
funds
2019
£
89,527
958,871
136,290
17,854
1,202,542
2019
£
739,060
6,452
183,298
30,061
958,871

8. Grants

The Charity paid 32 (2019: 27) grants to individuals during the year.

Page 24

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The following grants were paid to Organisations and Earley Charity Workers by the Charity during the year:

2020
£
ABC to Read 1,000
Aspire 2 22,000
Berkshire Maestros 1,905
Berkshire Multiple Sclerosis Therapy Centre 745
Berkshire Women's Aid (BWA) 41,140
Challengers 1,368
Citizens Advice Reading 10,000
Community Savings & Loans (Berkshire Credit Union) 1,500
Earley CResCent Community Association 98,632
Earley Environmental Group 2,000
First Days Children's Charity 1,000
Food 4 Families 14,236
Free Legal Advice for Domestic Violence (FLAG DV) 4,400
Graft Thames Valley 10,000
Kick Twist Cheerleading 500
Launchpad Reading 7,000
Lower Caversham Community Partnership 2,000
Me2 Club 2,000
No5 Young People 2,000
Parents and Children Together (PACT) 2,000
Queen Victoria Institute (QVI) Foot Care 1,500
Rabble Theatre 5,040
Read Dance and Theatre College 1,000
Readifolk 500
Reading Community Learning Centre 2,000
Reading Film Theatre 1,150
Reading International Solidarity Centre (RISC) 64,783
Reading Mencap 1,904
Reading Repertory Theatre 50,000
Reading Sea Cadets 20,000
Reading Voluntary Action 60,129
Readipop 80,000
Real Time Video 1,000
Red Balloon Learner Centre Reading 7,258
Rockets Sport & Educational Foundation 13,863
Stepping Forward 25,000
The Conservation Volunteers 40,918
Ufton Court Educational Trust 926

602,397

Page 25

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Continued
University Of Reading
Utulivi Women's Group
The Weller Centre
YMCA Reading
84th Reading (1st Earley St Peter's) Scouts
Movement in 'grant approved not paid' creditor
9.
Support costs
Office costs
Bank charges
Professional fees
Wages and salaries
National insurance costs
Pension cost
Depreciation
10.
Governance costs
Audit and accountancy
Indemnity insurance		 2020
£
18,541
363
10,024
80,075
3,428
3,967
1,881
118,279
2020
£
10,800
2,132
12,932		 602,397
9,450
1,750
88,948
10,670
3,000
-
(225,772)
490,443
2019
£
15,867
415
18,721
89,563
5,957
3,881
1,886
136,290
2019
£
15,900
1,954
17,854

Page 26

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Auditor's remuneration

2020 2019
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 6,500 8,500
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above 4,400 7,400

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
80,075
3,428
3,967
87,470		 2019
£
141,227
9,144
5,668
156,039

Staff costs include redundancy and termination costs of £nil (2019: £nil).

The average number of persons employed by the Charity during the year was as follows:

Administration and welfare
Home care staff		 2020
No.
3
-
3		 2019
No.
3
5
8

No employee received remuneration amounting to more than £60,000 in either year.

The total employee benefits of the key management personnel were £47,267 (2019: £63,099).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 December 2020, no Trustee expenses have been incurred (2019 - £NIL).

Page 27

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Tangible fixed assets

Cost or valuation
At 1 January 2020
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Office
equipment
£
13,141
13,141
8,147
1,881
10,028
3,113
4,994

15. Fixed asset investments

Cost or valuation
At 1 January 2020
Additions
Disposals
Revaluations
Drawdowns
Income
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Listed
securities
£
11,620,566
1,836,034
(2,072,019)
(186,676)
-
-
11,197,905
11,197,905
11,620,566		 Cash held
on bank
deposits
£
149,539
(1,836,034)
2,072,019
-
(480,000)
260,901
166,425
166,425
149,539		 Unit Trusts
£
246,480
-
-
8,858
-
-
255,338
255,338
246,480		 Other fixed
asset
investments
£
14,627
-
-
-
-
-
14,627
14,627
14,627		 Total
£
12,031,212
-
-
(177,818)
(480,000)
260,901
11,634,295
11,634,295
12,031,212

Page 28

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Investments at market value comprise:

Listed securities
Cash held on bank deposits
Unit Trusts
Other fixed asset investments
Total market value
Total 2019		 UK
£
6,459,022
166,425
255,338
14,627
6,895,412
8,786,220		 Overseas
£
4,738,883
-
-
-
4,738,883
3,244,992		 2020
£
11,197,905
166,425
255,338
14,627
11,634,295
12,031,212		 2019
£
11,620,566
149,539
246,480
14,627
12,031,212

Page 29

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Application of the power of total return

The Charity Commission permitted the Charity to adopt the use of total return investment powers in relation to its permanent endowment investments by an order granted on 15 January 2007. The power permits the Trustees to invest the portfolio to maximise total return and to apply an appropriate proportion of the unapplied total return to income each year. Until the power is exercised to transfer a portion of unapplied total return to income (as disclosed in the fund transfers, note 23), the unapplied total return remains invested as part of the permanent endowment.

The investment fund and application of total return to permanent endowment funds:
Opening value of permanent endowment
Less: Original value of the gift
Excess on permanent building fund
Unapplied total return as at 31 December 2020
Add: Investment return: dividends and interest
Gains on investments - Endowment funds
Less: Investment management costs
Add: Profit on the sale of The Liberty of Earley House
Unapplied total return before transfer to income
Transfers of funds
Sub total: unapplied total return as at 31 December 2020
Decrease in excess on permanent building fund
Add: Original value of the gift
Excess on permanent building fund		 2020
£
12,466,275
(6,100,000)
-
6,366,275
260,901
(177,818)
(45,883)
-
6,403,475
(881,111)
5,522,364
-
6,100,000
-
11,622,364

17. Debtors

Other debtors
Prepayments and accrued income		 2020
£
-
397
397		 2019
£
108
754
862

Page 30

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Grants
19.
Creditors: Amounts falling due after more than one year
Grants
20.
Charitable commitments - grants
Commitments at the beginning of the period
Additional commitments entered into
Commitments met
Commitments at the end of the period		 2020
£
13,200
23,822
453,311
490,333
2020
£
299,630
2020
£
978,714
458,209
(683,981)
752,942		 2019
£
10,597
26,358
683,982
720,937
2019
£
294,732
2019
£
537,509
733,022
(291,817)
978,714

Page 31

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Statement of funds

Statement of funds - current year

Unrestricted
funds
General Funds
Endowment
funds
Permanent
Endowment
Funds
Permanent
Building Funds
Total of funds		 Balance at 1
January
2020
£
500,550
6,100,000
6,366,275
12,466,275
12,966,825		 Income
£
1,370
-
260,901
260,901
262,271		 Expenditure
£
(709,272)
-
(45,883)
(45,883)
(755,155)		 Transfers
in/out
£
881,111
-
(881,111)
(881,111)
-		 Gains/
(Losses)
£
-
-
(177,818)
(177,818)
(177,818)		 Balance at
31
December
2020
£
673,759
6,100,000
5,522,364
11,622,364
12,296,123

Page 32

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General Funds
Endowment
funds
Permanent
Endowment
Funds
Permanent
Building Funds
Expendable
Endowment
Funds
Total of funds		 Balance at
1 January
2019
£
750,238
4,100,000
2,086,722
4,203,376
10,390,098
11,140,336		 Income
£
94,854
471,286
851,052
335,560
1,657,898
1,752,752		 Expenditure
£
(1,202,542)
-
(1,061)
(46,040)
(47,101)
(1,249,643)		 Transfers
in/out
£
858,000
1,528,714
(2,938,422)
551,708
(858,000)
-		 Gains/
(Losses)
£
-
-
1,709
1,321,671
1,323,380
1,323,380		 Balance at
31
December
2019
£
500,550
6,100,000
-
6,366,275
12,466,275
12,966,825

The permanent building fund represented a recoupment fund as designated by the Charity Commissioners. Over a period of 60 years as the value of buildings reduced to nil, an annual transfer of £33,333 was being made to Investments to rebuild the original fund value. During 2019 the building was sold, the funds were repaid in full and the order with the Charity Commission was dissolved.

Page 33

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
3,113
Fixed asset investments
-
Current assets
1,448,678
Creditors due within one year
(478,402)
Creditors due in more than one year
(299,630)
Total
673,759		 Endowment
funds
2020
£
-
11,634,295
-
(11,931)
-
11,622,364		 Total
funds
2020
£
3,113
11,634,295
1,448,678
(490,333)
(299,630)
12,296,123

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2019
£
4,994
-
1,499,079
(708,791)
(294,732)
500,550		 Endowment
funds
2019
£
-
12,031,212
447,209
(12,146)
-
12,466,275		 Total
funds
2019
£
4,994
12,031,212
1,946,288
(720,937)
(294,732)
12,966,825

23. Fund transfers

The Charity engaged in correspondence with the Charity Commission in a previous financial year with the explicit intention of applying the total return approach to the investment of its permanent endowment. The investment power of total return was granted on 15 January 2007. Having considered their obligations under the duty of even handedness, during the year the Trustees made a transfer of £881,110 (2019: £858,000) unapplied total return to unrestricted funds in respect of the charitable activities of the Charity, taking account of the return on investment for the whole of the year and the income needs of the Charity.

24. Taxation

HM Revenue & Customs has accepted the Charity as a Charity within the definition of Part 11 Corporation Tax Act 2010 with the result that the exemptions afforded by Part 11 are available to the extent that income and gains are applicable and applied to charitable purposes only.

It is considered that all income and gains of the Charity are applicable and applied to charitable purposes only and on this basis, no provision for taxation has been made.

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THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends and interest from investments
Loss/(profit) on the sale of fixed assets
Decrease in stocks
Decrease in debtors
Decrease in creditors
Net cash used in operating activities
26.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
27.
Analysis of changes in net debt
At 1
January
2020
£
Cash at bank and in hand
1,945,426
1,945,426		 2020
£
(670,702)
1,881
(177,818)
(260,901)
-
-
465
(225,704)
(1,332,779)
2020
£
1,448,281
1,448,281
Cash flows
£
(497,145)
(497,145)		 2019
£
1,826,489
11,779
(1,323,380)
(346,552)
(1,392,403)
1,123
28,793
(201,459)
(1,395,610)
2019
£
1,945,426
1,945,426
At 31
December
2020
£
1,448,281
1,448,281

Page 35

THE EARLEY CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

28. Pension commitments

The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £3,967 (2019: £5,668). Contributions totalling £1,093 (2019: £1,012) were payable to the fund at the balance sheet date and are included in creditors.

29. Related party transactions

Funds belonging to the Charity amounting to £2,132 (2019: £1,954) have been used for the purchase of insurance to indemnify the Trustees against the consequence of any neglect or default on their part.

The Earley Charity appoints two of the Trustees of the Earley CResCent Community Association, Mr R Ames and Mr P Hooper. These appointments were made following a major grant award and as a condition of that grant award. During the year, The Earley Charity gave £98,632 (2019: £126,866) to the Earley CResCent Community Association with a further £182,014 (2019: 226,110) approved but unpaid at the balance sheet date and included within creditors. Additionally see note 30 for infomation on post balance sheet events in relation the Earley CResCent Community building extension.

Trustees, Dr D Jenkins and Dr D Sutton are on the Weller Centre management board. They are also members of the Weller Centre Advisory Board along with trustee, Mr P Hooper. These appointments were made following a major grant award and as a condition of that grant award. During the year, The Earley Charity gave £88,948 (2019: 40,977) to these organisations with a further £177,896 (2019: £94,948) approved but unpaid at the balance sheet date and included within creditors.

Trustee, Mrs M Waite is a partner of Aspire2. During the year, The Earley Charity paid £22,000 (2019: £10,000) in grants to Aspire2.

Trustees, Dr D Jenkins and Dr D Sutton are members of the Reading International Solidarity Centre. During the year, The Earley Charity paid £64,783 (2019: £46,609) in grants to the Reading International Solidarity Centre. At the year end £93,023 (2019: £93,218) was approved but unpaid and included within creditors.

Councillor L Terry is an elected member of Reading Citizen Advice. During the year, The Earley Charity paid £10,000 (2019: £6,503) in grants to the Reading Citizen Advice. At the year end £10,000 (2019: £20,000) was approved but unpaid and included within creditors.

There were no other material transactions with Trustees or connected persons during the year.

30. Post balance sheet events

Post year end the Charity signed a lease renewal in relation to their office accommodation at St Nicolas Centre which commences on the 1 March 2021 for a one year period. The total value of the lease is £7,800 per annum.

Additionally after the year end during February 2021 the charity signed a contract with a value of £1,030,141 which will lead to the building of an extension on behalf of Earley CResCent Community Association.

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