2021-04-05-accounts

Charity number: 245061

The Batchworth Trust

Trustees' report and financial statements For the year ended 5 April 2021

The Batchworth Trust

Contents

	Page
Reference and administrative details of the Trust, its Trustees and advisers	1
Trustees' report	2 - 5
Independent auditor's report on the financial statements	6 - 9
Statement of financial activities	10
Balance sheet	11
Statement of cash flows	12
Notes to the financial statements	13 - 25

The Batchworth Trust

Reference and administrative details of the Trust, its Trustees and advisers For the year ended 5 April 2021

Trustees	Lockwell Trustee Limited, Corporate Trustee
	The following are directors of the Corporate Trustee:
	Mr J A N Campbell
	Miss G E Campbell
	Mrs J C Chalmers, Chairman
	Mr J M Campbell
	Mrs C M Percy
	Miss A Campbell
	Mr M Campbell
Charity registered number 245061 Principal office Springfield House Springfield Road Horsham West Sussex RH12 2RG Independent auditor Kreston Reeves LLP Chartered Accountants Statutory Auditor Springfield House Springfield Road Horsham West Sussex RH12 2RG Bankers Lloyds Bank Plc 1 West Street Horsham West Sussex RH12 1PA Investment Advisors Close Asset Management Limited 10 Exchange Square Primrose Street London EC2A 2BY

Page 1

Trustees' report For the year ended 5 April 2021

The Batchworth Trust

The Corporate Trustee presents their annual report together with the audited 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 and comply with the Charity Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in accordance with the Financial Reporting Standard applicable in UK and Republic of Ireland (FRS102).

Constitution

The Trust was established as a Charitable Settlement by a Deed dated 2 April 1965.

Trustees

The Corporate Trustee is Lockwell Trustees Limited, a Company registered in England and Wales No. 0843464. The Directors of Lockwell Trustees Limited during the year were:

Mrs J C Chalmers (Chairman) Mr J A N Campbell Mr J M Campbell Dr C M Percy Miss A Campbell Ms G E Campbell Mr M Campbell

Governance

The Trustee of the Batchworth Trust is a corporate body. The Directors of the Trustee Company recognise that their role is akin to that of a Trustee as if they were directly appointed to the role, and for the purposes of this report are referred to as the Trustees. The appointment of new Directors is governed by the Companies Act.

The present Board of Directors of the Trustee Company contain a broad range of legal, financial and specialist skills that greatly contribute to the running of the charity and they were largely appointed because of their intimate knowledge of the Trust's objectives prior to their appointment. Trustee appointment is made via Board of Directors' approval.

Any new appointees will be encouraged to meet separately with the charity's advisors to gain insight into the legal and financial nature of the charity and to attend courses run by appropriate organisations to fully acquaint themselves with Trustee responsibilities. Periodic assessments by the Trustees of their duties has lead to further training or meetings with advisors if necessary.

Risk management

The Corporate Trustee has assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

The Corporate Trustee is responsible for taking reasonable steps to ensure that:

• The charity is running efficiently and effectively;

• Its assets are safeguarded against unauthorised use or disposition;

• Sufficient records are maintained and financial information is reliable;

• The charity complies with the relevant laws and regulations.

The Trust has no employees. The organisations to which record keeping and investment management have been delegated have systems in place to ensure security and continuity of service. The Corporate Trustee is able to monitor these services through regular reporting.

The Corporate Trustee maintains a register of areas of risk that might affect the ability of the charity to meet its objectives. An estimate of the likelihood of an event arising is made, and the impact it might have on the charity. Measures are designed to mitigate the affect of the event.

Page 2

The Batchworth Trust

Trustees' report (continued) For the year ended 5 April 2021

The Corporate Trustee considers loss of income and investment returns to be a risk against the charitable objectives. The Corporate Trustee mitigates this risk with investment diversification, professional portfolio management and prudent investment policies.

Objectives, grant making policies and activities for public benefit

The Corporate Trustee is empowered, at their sole and absolute discretion, to pay, apply or appropriate the whole or any part of the Trust Fund Capital, and the income thereof, at any time for the benefit of any institutional qualified charity, or qualified charities, and if more than one, such shares and proportions between them, generally in such manner as the Trustees in their absolute discretion shall think fit. No grant payments are made direct to individuals.

Under the terms of the Deed of Settlement, a "qualified charity" means any purpose, organisation or objective in any part of the world, which under the law of England shall be recognised as exclusively charitable.

The Corporate Trustee confirms that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, in planning future activities, and setting the grant making policy for the year.

Review of activities

The Trust was able to benefit 70 charities this year (2020: 75) with total distributions amounting to £682,500 (2020: £1,090,500). Whilst the Trust maintains a policy of considering applications from a wide variety of charities, the emphasis has been to mainly support medical research, youth charities and welfare both here and abroad.

Grants to smaller charities remained a priority of the Trust during the year and in many cases the distributions made were provided to support an innovation or a critical issue.

Support for larger or national charities was predominantly to support either the ongoing work of the organisation or a particular initiative.

The Directors of the Corporate trustee meet twice each year but receive quarterly reports from the investment managers and administrator. Apart from making decisions concerning distributions to charities, a portion of each meeting of the Directors of the Corporate trustee is given over to reviewing legislation changes, investment reviews and other important information exchanges, which, together with the quarterly reports, ensures the Trustees are fully up to date with matters that affect the charity.

Investment policy and performance

The Corporate Trustee's policy is to ensure the trust maximises its income for distribution purposes whilst having regard for capital growth. The Investment Managers are instructed to maintain a reasonable balance between income and capital growth but taking opportunities to maximise income when special situations arise.

Reserves policy

The Trust's reserve policy is to maintain general unrestricted reserves which are neither allowed to become excessive as a result of the unjustifiable accumulation of income nor so low as to be inadequate to meet the grant making objectives. The Trust also has a social policy of not investing in tobacco related funds and arms.

The Trust operates its investment portfolio in two funds, one invested in higher income generating investments but with consequently lower growth potential and the other fund in equities to maintain the capital of the overall fund. The Directors of the Corporate trustee receive quarterly reports showing the amount of income available for distribution from the whole fund and they meet twice a year to distribute this in full.

This split-fund policy has been in operation for some years and has had the effect of maximising the income for distribution without depleting the value of the endowed fund. Distributions from capital are rare and have not significantly affected reserves.

Page 3

The Batchworth Trust

Trustees' report (continued) For the year ended 5 April 2021

In the opinion of the Corporate Trustee, the current level of reserves is considered well balanced to achieve the Trust's objectives.

Financial review

The year has seen a decrease in investment income from £484,677 to £387,260 a decrease of 20% representing a rise in the returns being offered in the markets on both Equities and Fixed Interest Securities. The Corporate Trustee has retained their policy of distributing a level of grant making in line with this income.

The fair value of the Trust's investments has increased by 10% from £12,851,004 in 2020 to £14,104,380 in 2021. The investments continue to generate significant income with which the Trust is able to continue to make grants to charities and support the beneficiaries of these charities.

The Corporate Trustee continued to include in its distribution policy both investment income and liquidated gains on investment sales as representing the pool of funds from which grants can be made to charities.

Key management personnel

There are no employees, but the Corporate Trustee's Board of Directors are key management personnel of the Charity in charge of directing and controlling the Charity. All Directors of the Corporate Trustee give their time freely and there was no remuneration, expenses or related party transactions in the year.

Future developments

The Corporate Trustee aims to continue to distribute funds in accordance with charitable objectives, at levels parallel to the last few years, plus aiming to support long term projects.

Corporate Trustee's responsibilities statement

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 year which give a true and fair view of the state of affairs of the Trust 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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and 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.

Page 4

The Batchworth Trust

Trustees' report (continued) For the year ended 5 April 2021

Disclosure of information to auditors

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

• so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Auditors

The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

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

Mrs J C Chalmers

Date: 4 February 2022

Page 5

The Batchworth Trust

Independent auditor's report to the Members of The Batchworth Trust

Opinion

We have audited the financial statements of The Batchworth Trust (the 'charity') for the year ended 5 April 2021 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:

• give a true and fair view of the state of the charity's affairs as at 5 April 2021 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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.

Page 6

The Batchworth Trust

Independent auditor's report to the Members of The Batchworth Trust (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:

• the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

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 7

The Batchworth Trust

Independent auditor's report to the Members of The Batchworth Trust (continued)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the company and industry, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to General Data Protection Regulations and anti-bribery. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investment properties and revenue recognition. Audit procedures performed by the engagement team included:

• Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations and fraud;

• Assessment of identified fraud risk factors;

• Making enquiries with appropriate personnel to gain further insight into the control systems implemented, and the risk of irregularity;

• Review of grant expenditure to confirm no evidence of personal benefit;

• Checking and reperforming the reconciliation of key control accounts;

• Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;

• Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;

• Reading minutes of meetings of those charged with governance;

• Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and

• Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

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.

Page 8

The Batchworth Trust

Independent auditor's report to the Members of The Batchworth Trust (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.

• Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Kreston Reeves LLP

Chartered Accountants Statutory Auditor Horsham 8 February 2022

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

Page 9

The Batchworth Trust

Statement of financial activities For the year ended 5 April 2021

Note Income Donations and legacies 4 Investment income 5 Total income Expenditure on: Raising funds: Investment Management Charitable activities 7 Total expenditure Net expenditure before investment gains/(losses) Net gains/(losses) on investments Net income/(expenditure) before other recognised gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2021 £ 7,960,000 386,748 8,346,748 60,833 709,799 770,632 7,576,116 1,785,312 9,361,428 9,361,428 12,609,450 9,361,428 21,970,878	Total funds 2021 £ 7,960,000 386,748 8,346,748 60,833 709,799 770,632 7,576,116 1,785,312 9,361,428 9,361,428 12,609,450 9,361,428 21,970,878	Unrestricted funds 2020 £ - 484,677
			484,677 68,036 1,118,397
			1,186,433 (701,756) (1,427,621)
			(2,129,377)
			(2,129,377) 14,738,827 (2,129,377)
			12,609,450

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

The notes on pages 13 to 25 form part of these financial statements.

Page 10

The Batchworth Trust

Balance sheet As at 5 April 2021

Note Fixed assets Investments 9 Current assets Debtors 11 Cash at bank and in hand 17 Creditors: amounts falling due within one year 12 Net current assets / liabilites Total assets less current liabilities Creditors: amounts falling due after more than one year 13 Net assets excluding pension asset Total net assets Charity funds Unrestricted funds Total funds	7,963,140 54,140 8,017,280 (130,782)	Unrestricted 2021 £ 14,104,380 7,886,498 21,990,878 (20,000) 21,970,878 21,970,878 21,970,878 21,970,878	4,396 40,927 45,323 (168,377)	Unrestricted 2020 £ 12,851,004 (123,054)
				12,727,950 (118,500)
				12,609,450
				12,609,450 12,609,450
				12,609,450

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

Mrs J C Chalmers

Date: 4 February 2022

The notes on pages 13 to 25 form part of these financial statements.

Page 11

The Batchworth Trust

Statement of cash flows For the year ended 5 April 2021

Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Proceeds from sale of investments Purchase of investments 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 17	2021 £ (518,723) 1,253,804 (721,868) 531,936 13,213 40,927 54,140	2020 £ (609,830)
		1,029,092 (422,847)
		606,245
		(3,585) 44,512
		40,927

The notes on pages 13 to 25 form part of these financial statements

Page 12

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

1. Legal status of the Trust

The Batchworth Trust is an unincorporated charity registered with the Charity Commission in England and Wales. The address of the registered office is Springfield House, Springfield Road, Horsham, West Sussex RH12 2RG.

2. Accounting policies

2.1 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 2019), 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 in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Batchworth Trust 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.

The financial statements are presented in Sterling which is the functional currency of the charity, and are rounded to the nearest £.

2.2 Going concern

The Trustees assess whether the going concern basis is appropriate and whether there are any material uncertainties related to events or conditions that may case significant doubt on the ability of the charity to continue as a going concern. The Trustees have considered the level of reserves held and the expected income and expenditure for a period of twelve months from finalisation of these financial statements. These considerations take into account the impact of Covid-19. There are no material uncertainties about the charity's ability to continue, and therefore the preparation of the financial statements on a going concern basis as outlined in the Statement of Trustees' responsibilities is appropriate.

2.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes.

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

2. Accounting policies (continued)

2.4 Income

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

For legacies, entitlement is taken as the earlier of the date on which either: the Trust 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 Trust has been notified of the executor's intention to make a distribution. Where legacies have been notified to the Trust, or the Trust 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.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Investment income and interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the Bank.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a 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. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

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

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities are costs incurred on the Trust's grant-making operations, including support costs and costs relating to the governance of the Trust apportioned to charitable activities.

Grants payable are charged in the year when the offer is made 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 year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

2. Accounting policies (continued)

2.6 Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all audit and non audit costs of the trust, and its compliance with regulation and good practice.

Governance costs and support costs are directly related to charitable activities.

2.7 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 using the closing quoted market price, 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.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

2.8 Gains and Losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

2.9 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.

2.10 Liabilities and provisions

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 Trust 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.

2.11 Financial instruments

The Trust 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

3. Critical accounting estimates and areas of judgement

Estimates and judgements 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. The nature of estimations is such that actual outcomes could differ significantly from those estimates.

The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

The Trustee considers that there were no judgements or sources of estimations that would have had a significant impact on the amounts recognised in the financial statements

4. Income from donations and legacies

	Unrestricted	Total	Total
	funds	funds	funds
	2021	2021	2020
	£	£	£
Legacies	7,960,000	7,960,000	-

Page 16

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

5. Investment income

Dividends - UK Equities Dividends - Non UK Equities Interest - Non UK Fixed Interest Securities Interest - UK Fixed Interest Securities Total 2021 Dividends - UK Equities Dividends - Non UK Equities Interest on Cash Deposits Interest - Non UK Fixed Interest Securities Interest - UK Fixed Interest Securities Total 2020	Unrestricted funds 2021 £ 141,643 170,321 19,913 54,871 386,748 Unrestricted funds 2020 £ 191,236 213,305 1,561 28,227 50,348 484,677	Total funds 2021 £ 141,643 170,321 19,913 54,871
		386,748
		Total funds 2020 £ 191,236 213,305 1,561 28,227 50,348
		484,677

6. Analysis of grants

Institutional grants paid Institutional grants paid	Grants to Institutions 2021 £ 682,500 Grants to Institutions 2020 £ 1,090,500	Total funds 2021 £ 682,500
		Total funds 2020 £ 1,090,500

Page 17

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

6. Analysis of grants (continued)

Name of Institution

Name of Institution	2021
	£
Action Ethiopia	7,000
Action on Hearing Loss	10,000
Age UK	10,000
Aspire	10,000
British Red Cross	30,000
Carlisle Youth Zone	5,000
Chest, Heart, Stroke Scotland	10,000
Christian Aid	22,500
Citizen Theatre Glasgow	10,000
City Harvest	10,000
Comar	3,000
Combat Stress	10,000
Crawley Open House	5,000
Cruse Bereavement Care	5,000
CURUFC	5,000
Dacorum Community Trust	6,000
DEC	30,000
Dementia UK	20,000
Epilepsy Research	5,000
Essence	7,500
Ethiopian Medical Project	10,000
Family Rights Group	10,000
Fullarton Theatre	5,000
Glenkens Community and Arts Trust	5,000
Grapevine	5,000
Haddo Arts	6,000
Helm	5,000
Help Musicians	10,000
Hope Children's Support Service	5,000
Just for Kids Law	10,000
Leonard Cheshire	10,000
MacMillan Cancer Support	30,000
Marmalade Trust	5,000
Maxie Richards Foundation	10,000
Maytree	15,000
Médecins Sans Frontieres	20,000
Metro Blind Sports	3,000
Mind	30,000
Multiple Sclerosis Therapy Centre Lothian	3,000
Nepal Youth Foundation	5,000
Off the Record	20,000
Orchestra of St John's	10,000
Practical Action	10,000
Refugee Council Children's Section	30,000
Rowan Alba	2,500
RSABI	15,000
Samaritans	10,000
School - Home Support	5,000
South Hill Centre	6,000
St George's Kidney Patients Association	3,000
St John's Ambulance	5,000
St Mungo's	5,000
St Peter's Hospice	10,000
Stella Maris	5,000
The Dash Charity	10,000

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

6. Analysis of grants (continued)

The Film and TV Charity	10,000
The Prince's Trust	5,000
The Refugee Bus	5,000
The Waterside Centre	5,000
Thrive	10,000
Tom Bowdidge Foundation	10,000
Trinity Community Arts	20,000
Trussell Trust	15,000
Unseen UK	10,000
VSA	20,000
WhaleArts	5,000
Wigtown Book Festival	5,000
Wilton's Music Hall	3,000
Young Minds	10,000
Youth Talk	10,000
	___
Grants to institutions	712,500
Grants cancelled:
Music for Autism	(30,000)
	___
Total Grants	682,500

7. Charitable Activities

Direct costs Direct costs	Grant funding of activities 2021 Support and governance costs 2021 Total Unrestricted funds 2021 £ £ £ 682,500 27,299 709,799 Grant funding of activities 2020 Support and governance costs 2020 Total Unrestricted funds 2020 £ £ £ 1,090,500 27,897 1,118,397	Grant funding of activities 2021 Support and governance costs 2021 Total Unrestricted funds 2021 £ £ £ 682,500 27,299 709,799 Grant funding of activities 2020 Support and governance costs 2020 Total Unrestricted funds 2020 £ £ £ 1,090,500 27,897 1,118,397
		Total Unrestricted funds 2020 £ 1,118,397

Page 19

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

7. Charitable Activities (continued)

Analysis of support costs

Support costs - bank charges Support costs - Auditors' non audit costs Governance costs - Auditors' remuneration Support costs - bank charges Support costs - Auditors' non audit costs Governance costs - Auditors' remuneration	Direct costs 2021 £ 114 13,863 13,322 27,299 Direct costs 2020 £ 197 13,296 14,404 27,897	Unrestricted 2021 £ 114 13,863 13,322
		27,299
		Unrestricted 2020 £ 197 13,296 14,404
		27,897

8. Net expenditure before investment gains/(losses)

This is stated after charging:

	Unrestricted	Unrestricted
	2021	2020
	£	£
Auditors' remuneration - audit	13,322	14,404
Auditors' remuneration - non-audit	13,863	13,296

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 5 April 2021, no Trustee expenses have been incurred (2020 - £NIL).

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

9. Fixed asset investments

Cost or valuation At 6 April 2020 Additions Disposals Change in market value At 5 April 2021 Net book value At 5 April 2021 At 5 April 2020	Listed securities £ 12,376,584 721,868 (1,077,601) 1,785,312 13,806,163 13,806,163 12,376,584	Cash deposits £ 474,420 - (176,203) - 298,217 298,217 474,420	Total £ 12,851,004 721,868 (1,253,804) 1,785,312
			14,104,380
			14,104,380
			12,851,004

At the year end the historical cost of the listed securities held by the Trust is £9,776,199 (2020 - £9,896,912).

Within listed securities are overseas investments with a fair value of £8,421,057 (2020 - £7,379,108). All other listed investments are at fair value within the United Kingdom.

Listed investment at fair value comprised

Fixed Interest Securities Equities Total	2021 £ 2,479,457 11,326,706 13,806,163	2020 £ 2,712,671 9,663,916 12,376,587

10. Investment risks

The main risks to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in dividend yield. The Trust holds international investments as part of its portfolio, and is therefore also exposed to exchange rate risk. Liquidity risk is anticipated to be low as all assets are traded on regulated markets and markets which have good liquidity and high trading volumes.

The Trust manages these investment risks by retaining expert advisors and operating an investment policy that is balanced between maximising income whilst also having regard for capital growth. The Trust only holds investments that are quoted on recognised stock exchanges, and the Trust does not make use of derivatives and similar complex financial instruments.

Page 21

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

11. Debtors

Accrued income Tax recoverable Legacies receivable 12. Creditors: Amounts falling due within one year Other creditors Accruals and deferred income 13. Creditors: Amounts falling due after more than one year Other creditors 14. Movement in recognised grants during the year Grants accrual recognised at the start of the year: New grant commitments charge to SOFA during the year Grant commitments cancelled and reversed to SOFA during the year Grants paid in the year Grants accrual recognised at the end of the year	2021 £ 1,856 1,284 7,960,000 7,963,140 2021 £ 96,000 34,782 130,782 2021 £ 20,000 2021 £ 252,000 712,500 (30,000) (818,500) 116,000	2020 £ 2,325 2,071 -
		4,396 2020 £ 133,500 34,877
		168,377 2020 £ 118,500 2020 £ 173,000 1,090,500 - (1,011,500)
		252,000

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The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Fixed asset investments Cash deposits Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2021 £ 13,806,163 298,217 8,017,280 (130,782) (20,000) 21,970,878	Total funds 2021 £ 13,806,163 298,217 8,017,280 (130,782) (20,000)
		21,970,878

Analysis of net assets between funds - prior year

Fixed asset investments Cash deposits Current assets Creditors due within one year Creditors due in more than one year Total	Endowment funds 2020 £ 12,376,584 474,420 45,323 (168,377) (118,500) 12,609,450	Unrestricted funds 2020 £ - - - - - -	Total funds 2020 £ 12,376,584 474,420 45,323 (168,377) (118,500)
			12,609,450

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

Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Unrealised (gains)/losses on investments Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities	2021 £ 9,361,428 (1,785,312) (7,958,744) (136,095) (518,723)	2020 £ (2,129,377) 1,427,621 10,534 81,392
		(609,830)

Page 23

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

17. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	2021 £ 54,140 54,140	2020 £ 40,927
		40,927

18. Analysis of changes in net debt

Cash at bank and in hand	At 6 April 2020 £ 40,927 40,927	Cash flows £ 13,213 13,213	At 5 April 2021 £ 54,140
			54,140

Page 24

The Batchworth Trust

Notes to the financial statements For the year ended 5 April 2021

19. Grant commitments

At 5 April 2020 the Trust had commitments as follows: Commitments in respect of grants approved for projects which have not been accrued in the financial statements but will form part of grants: Within one year Between one and two years Reconciliation of the Grant Commitment Opening grant commitment Charged to the Statement of Financial Activity in the year Grant commitments withdrawn New grant commitments in the year	2021 £ 36,000 36,000 72,000 2021 £ 25,000 (10,000) (5,000) 62,000 72,000	2020 £ 15,000 10,000
		25,000 2020 £ 30,000 (15,000) - 10,000
		25,000

Total charitable grants payable and committed

Accrued Commitment (above)	2021 £ 116,000 36,000 152,000	2020 £ 252,000 25,000
		277,000

The grant commitments detailed above are not recognised as accruals because as at the year end no obligations existed in respect of these grants. The Trust had not indicated its intentions to the grant recipients, therefore no valid expectation was created with the other parties.

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