Charity registration number 252848
DEVONPORT CHARITABLE TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
DEVONPORT CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees The Rt Hon Terence Third Viscount Devonport The Rt Hon Dr M Pu Viscountess Devonport Mr David Andrew Gray Charity number 252848 Principal address Ray Estate Lynnheads Barn West Woodburn Hexham Northumberland NE48 2TU Independent examiner Stuart W Allister BA CA 17 Walkergate Berwick-upon-Tweed Northumberland TD15 1DJ Investment advisors Evelyn Partners 25 Moorgate London EC2R 6AY
DEVONPORT CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 15 |
DEVONPORT CHARITABLE TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 5 APRIL 2022
The Trustees present their annual report and financial statements of the Devonport Charitable Trust (Charitable Trust) for the year ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charitable Trust's Trust Deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning future activities.
The principal object of the Charitable Trust is to make gifts for such charitable objects or purposes as the Trustees or a majority of them shall from time to time in their absolute discretion determine.
Grant making policy
Grants are awarded from time to time at the absolute discretion of the Trustees.
Achievements and performance
The key financial performance indicator is to increase the capital base of the investments and generate sufficient income to make discretionary grant payments from time to time.
After making appropriate enquiries and considering the possible consequences of the COVID-19 pandemic as it might affect the Charitable Trust the Trustees have concluded that they have a reasonable expectation that the Charitable Trust 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.
Public benefit
In considering the operation, achievements and performance and finances of the Charitable Trust, the Trustees are satisfied that public benefit has been provided in accordance with the Charities Act 2011 and the guidance provided by the Charity Commission.
The main activity is to make discretionary grant payments from time to time to institutions which will benefit the general public in due course.
Financial review
The Trustees have made donations totalling £82,822 (5 grants) during the year (2021: £7,920 - 17 grants).
The Charitable Trust has made a surplus for the year of £8,180 before investment gains (2021: surplus of £27,344). After accounting for investment gains of £9,804, (2021: investment gains of £63,099) a surplus of £17,984 (2021: surplus of £90,443) was made in the year.
Risk review
The Trustees have assessed the major risks to which the Charitable Trust is exposed, in particular those related to the operations and finances of the Charitable Trust, and are satisfied that systems and procedures are in place to mitigate any exposure to the major risks.
Reserves policy
The Trustees believe that sufficient reserves must be held to enable larger donations to be made available as and when they are requested, and because the Charitable Trust receives income from donations which are not received evenly throughout and between years, look to make donations out of income previously received. The Charitable Trust's aim is to hold sufficient reserves to enable them to pay grants for the forthcoming 12 months.
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DEVONPORT CHARITABLE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Investment policy
The Trustees have agreed a policy for investing funds enabling them to maintain a strategic reserve of funds while providing funding for the expenditure of the Charitable Trust and have given investment managers discretion to manage the portfolio within an agreed risk profile.
Structure, governance and management
The Charitable Trust is an unincorporated charity established by a Trust Deed, dated 16 March 1967.
The Trustees who served during the year and up to the date of signature of the financial statements were:
The Rt Hon Terence Third Viscount Devonport The Rt Hon Dr M Pu Viscountess Devonport Mr David Andrew Gray
The Trust Deed provided that the Trustees were appointed by the founder during his lifetime. New trustees are now appointed by the existing Trustees.
There are no formal procedures for the induction and training of Trustees. Senior Trustees ensure, on an informal basis, that new Trustees are given adequate information to ensure that they have knowledge of the Charitable Trust and their role.
The Trustees have absolute discretion for dealing in and disposing of investments as they think fit to the extent that the Trustees shall have the same unrestricted powers of investing, varying and transposing investments as if they were beneficial owners of the monies in the Charitable Trust.
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 and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DEVONPORT CHARITABLE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
The trustees' report was approved by the Board of Trustees.
The Rt Hon Terence Third Viscount Devonport Trustee
23 November 2022
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DEVONPORT CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF DEVONPORT CHARITABLE TRUST
I report to the Trustees on my examination of the financial statements of Devonport Charitable Trust (the Charitable Trust) for the year ended 5 April 2022.
Responsibilities and basis of report
As the Trustees of the Charitable Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Charitable Trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the Charitable Trust has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard 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 now been withdrawn.
I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Charitable Trust as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no other concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Stuart W Allister BA CA
17 Walkergate Berwick-upon-Tweed Northumberland TD15 1DJ
Dated: 23 November 2022
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DEVONPORT CHARITABLE TRUST
BALANCE SHEET
AS AT 5 APRIL 2022
| 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |||
| Fixed assets | |||||||
| Investments | 10 | 269,130 | 259,832 | ||||
| Current assets | |||||||
| Debtors | 12 | 70 | 2,647 | ||||
| Cash at bank and in hand | 59,038 | 46,914 | |||||
| 59,108 | 49,561 | ||||||
| Creditors: amounts falling due within | |||||||
| one year | 13 | (6,240) | (5,379) | ||||
| Net current assets | 52,868 | 44,182 | |||||
| Total assets less current liabilities | 321,998 | 304,014 | |||||
| Charity funds | |||||||
| Endowment funds | 14 | 179,432 | 172,834 | ||||
| Restricted funds | 15 | 46,000 | 36,000 | ||||
| Unrestricted funds - general | 96,566 | 95,180 | |||||
| 321,998 | 304,014 |
The financial statements were approved by the Trustees on 23 November 2022
The Rt Hon Terence Third Viscount Devonport Trustee
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
Devonport Charitable Trust (Charitable Trust) is an unincorporated charity established by a Trust Deed dated 16 March 1967 and registered with the Charity Commission, Number 252848. The principal address is Ray Estate, Lynnheads Barn, West Woodburn, Hexham, Northumberland, NE48 2TU.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charitable Trust's Trust Deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Charitable Trust is a Public Benefit Entity as defined by FRS 102.
The Charitable Trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charitable Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charitable Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charitable Trust.
1.4 Income
Income is recognised when the Charitable Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Charitable Trust has been notified of the donation, unless performance conditions require deferral of the amount.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Investment income comprises dividends receivable during the year on listed investments held within the investment portfolio as well as interest receivable.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.5 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.
Support costs are the costs incurred directly in support of expenditure on the objects of the Charitable Trust.
Charitable activities and governance costs are costs incurred on the Charitable Trust's operations, including support costs and costs relating to the governance of the Charitable 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.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The Charitable Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charitable Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charitable Trust’s contractual obligations expire or are discharged or cancelled.
1.9 Realised 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 sale proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the carrying value at the period end and opening market value (or purchase date if later).
2 Critical accounting estimates and judgements
In the application of the Charitable Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| **Restricted ** | Unrestricted | Restricted | Total | |
|---|---|---|---|---|
| funds | funds | funds | ||
| general | ||||
| 2022 | 2021 | 2021 | 2021 | |
| £ | £ | £ | £ | |
| Donations and gifts | 92,000 | 161 | 36,000 | 36,161 |
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
4 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2022 | 2021 | |
| £ | £ | |
| Property income distributions | 357 | 359 |
| Income from listed investments | 24 | 2,062 |
| Income from unlisted investments | 9 | 9 |
| Interest receivable | 3,874 | 1,708 |
| 4,264 | 4,138 |
5 Grants payable
| Grants paid | Grants paid | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Grants to institutions: | ||
| 3H Fund | - | 500 |
| British Forces Foundation | - | 500 |
| Countryside Alliance Foundation | - | 320 |
| County Durham Community Fund | - | 500 |
| Crisis | - | 500 |
| Design for Disabled People | - | 500 |
| Guide Dogs Association | - | 200 |
| Gurka Welfare Trust | - | 300 |
| Lennox Children's Cancer Fund | - | 500 |
| Martin House | - | 500 |
| Myaware | - | 500 |
| Song Birds Survival | - | 500 |
| Speak Suicide Prevention | - | 500 |
| St Catherine's Hospice Limited | - | 100 |
| The Suicide Prevention Charity | - | 500 |
| World Cancer Research Fund | - | 500 |
| ZANE | - | 1,000 |
| Elizabeth Landmark Project | 78,000 | - |
| Trees on Line - Tilia section | 4,000 | - |
| Berwick Barracks Heritage Trust | 500 | - |
| Cancer Charity | 250 | - |
| Rye Winchelsea & District Memorial Hospital Ltd | 72 | - |
| 82,822 | 7,920 |
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
6 Support costs
| Support costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Support | Governance |
2022 | Support | Governance |
2021 | |||||||
| costs | costs | costs | costs | |||||||||
| £ | £ | £ | £ | £ | £ | |||||||
| Accountancy | - | 2,640 | 2,640 | - | 2,620 | 2,620 | ||||||
| Investment management | ||||||||||||
| fees | - | 2,418 | 2,418 | - | 2,046 | 2,046 | ||||||
| LEI fees | - | 72 | 72 | - | 72 | 72 | ||||||
| Bank charges | - | 132 | 132 | - | 76 | 76 | ||||||
| Accountancy under | ||||||||||||
| provision | - | - | - | - | 41 | 41 | ||||||
| RG - additional | ||||||||||||
| accountancy work | - | - | 180 | |||||||||
| - | 5,262 | 5,262 | - | 5,035 | 5,035 | |||||||
| Analysed between | ||||||||||||
| Charitable activities | - | 5,263 | 5,263 | - | 5,035 | 5,035 |
7 Trustees
None of the Trustees (or any persons connected with them) received any remuneration (2021: £Nil) or benefits (2021: £Nil) from the Charitable Trust during the year.
8 Employees
There were no employees during the year (2021: None).
9 Net gains/(losses) on investments
| **Endowment ** | Endowment | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Revaluation of investments | 9,804 | 63,099 |
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
10 Fixed asset investments
| Listed | |||||
|---|---|---|---|---|---|
| investments | |||||
| £ | |||||
| Cost or valuation | |||||
| At 6 April 2021 | 259,832 | ||||
| Additions | 19,076 | ||||
| Valuation changes | 10,434 | ||||
| Disposals | (20,212) | ||||
| At 5 April 2022 | 269,130 | ||||
| Carrying amount | |||||
| At 05 April 2022 | 269,130 | ||||
| At 05 April 2021 | 259,832 | ||||
| 11 | Financial instruments | 2022 | 2021 | ||
| £ | £ | ||||
| Carrying amount of financial assets | |||||
| Instruments measured at fair value through profit or loss | 269,130 | 259,832 | |||
| 12 | Debtors | ||||
| 2022 | 2021 | ||||
| Amounts falling due within one year: | £ | £ | |||
| Trade debtors | - | 2,647 | |||
| Prepayments and accrued income | 70 | - | |||
| 70 | 2,647 | ||||
| 13 | Creditors: amounts falling due within one year | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Trade creditors | 3,600 | - | |||
| Accruals and deferred income | 2,640 | 5,379 | |||
| 6,240 | 5,379 |
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
14 Endowment funds
Endowment funds represent assets which must be held permanently by the Charitable Trust. Income arising on the endowment funds can be used in accordance with the objects of the Charitable Trust and are included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
| Movement in funds | Movement in funds | Movement in funds | ||||||
|---|---|---|---|---|---|---|---|---|
| Balance at | Resources | Revaluations |
Balance at |
Resources | Revaluations |
Balance at |
||
| 6 | April 2020 | expended | gains and | 6 April 2021 |
expended | gains and | 5 April 2022 |
|
| losses | losses | |||||||
| £ | £ | £ | £ | £ | £ | £ | ||
| 112,762 | (3,027) | 63,099 | 172,834 | (3,206) 9,804 |
179,432 | |||
| 112,762 | (3,027) | 63,099 | 172,834 | (3,206) 9,804 |
179,432 |
15 Restricted funds
The income funds of the Charitable Trust include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | ||||||
|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Balance at | Incoming | Resources | Balance at | ||
| 6 | April 2020 | resources | 6 April 2021 | resources | expended | 5 April 2022 | |
| £ | £ | £ | £ | £ | £ | ||
| Elizabeth Landmark Project | - | 36,000 | 36,000 | 92,000 | (82,000) | 46,000 |
The Restricted Elizabeth Landmark Project Fund consists of donations received specifically for the purpose of the Elizabeth Landmark Project. The balance carried forward represents unspent funds which will be used in future periods.
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DEVONPORT CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
17 Related party transactions
There were no disclosable related party transactions during the year (2021: None).
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