Charity registration number 257214
NORTHAM TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
NORTHAM TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mrs E J Brown Dr J A Jefferis B J Reid Rev. P D Strong Mr P Greenaway Mr M Bolt Administrator and Secretary HR & Finance Business Solutions Charity number 257214 Principal address Hall Close Main Street Loddington Kettering Northants NN14 1LA Independent examiner Azets Audit Services Thorpe House 93 Headlands Kettering Northants NN15 6BL Bankers NatWest High Street Kettering Northants NN16 8SZ Solicitors Wilson Browne Kettering Parkway South Kettering Venture Park Kettering NN15 6WN
NORTHAM 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 - 16 |
NORTHAM TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2022
The trustees present their annual report and financial statements for the year ended 5 April 2022.
The accounts have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’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 published in October 2019.
Objectives and activities
The charitable Trust was founded by Mr E A Timson deceased. It was established by a trust deed dated 25th January 1967, as amended by a further deed in 1975.
The Trust was established to alleviate the hardships of persons of limited means residing in the Borough of Kettering or elsewhere in Northamptonshire, principally by the provision of almshouses, houses, flats, lodgings or apartments at rents within their means or free of rents.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s objectives and in planning its future activities.
The Trust achieves its objective by providing 10 accommodation units at Northam Court, Kettering. The units comprise 6 flats and 4 bungalows which are let at a rent subsidised by income from the Trust’s investments. The Trust provides all fixtures and fittings for the accommodation and is also responsible for the provision of external redecoration, repairs, water heaters, insurance and general site maintenance.
The accommodation units are usually fully occupied. When vacancies arise, the election of new tenants is made at Trustees’ meetings. Tenants are such persons as the trustees shall at their absolute discretion consider to be eligible under the terms of the trust deed. Each applicant shall be considered on his or her respective merits and those of his or her spouse, regard being had to the factors listed below:
a) Advancing years b) Hardship c) Length of residence in the Borough of Kettering d) Length of residence in Northamptonshire e) Such other causes and matters and things as, to the Trustees, seem fit.
There have been no changes in activity since the date of the last report.
Achievements and performance
As reported in 2020, due to crack and movement damage, the Trustees decided that two of the four bungalows should be demolished and rebuilt. Work on the project commenced in the 2021, and by 5 April 2022, the project was approaching completion. Inevitably, this affected the occupancy rate which was 50% (2021: 60%) for the four bungalows, compared to just over 84% (2021: 97%) for the flats. One flat was vacant from December 2020 until late April 2021, during which time refurbishment works were carried out, and another became vacant from May 2021 to June 2022.
Despite the continuing commitment of the Trust to high levels of maintenance of both the buildings and grounds, we have been able to maintain residents’ contributions at a low level. Due to the matters discussed above, contributions this year totalled £18,058 compared to £19,640 for 2021. Expenditure, excluding governance costs, on the provision of accommodation totalled £18,270, excluding governance costs, for the current year and £37,792 for 2021.
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NORTHAM TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Financial review
Total incoming resources in the year increased from £24,304 to £74,190. Income from donations was £50,000 (2021: £Nil). Residents’ contributions decreased by £1,582 to £18,058 and investment income decreased by £59 to £4,605.
Total expenditure in the year was £23,077 (2021: £42,372). Property repairs fell by £7,396. Last year, property repairs included £8,748 for interior works on flat 1 and bungalow 9. In 2021, a loss on disposal of tangible fixed assets of £11,439 was incurred when bungalows 7 and 8 were demolished.
Net unrealised gains on investments were £2,698 (2021: £11,221).
Net income for the year was £53,811 (2021: net expenditure £6,847).
Reserves policy
General reserves freely available at 5 April 2022 were £70,574 (2021: £142,366). The free reserves comprise unrestricted funds not invested in tangible fixed assets. The freely available reserves invested at 5 April 2022 totalled £143,852 (2021: £141,154). These investments are classified as fixed assets and are held to ensure continuity in the level of rent subsidy provided to our tenants, who are the beneficiaries of the charity. A material reduction or withdrawal of the subsidy with little or no notice would, in our opinion, cause the very hardships which the charity aims to alleviate.
The balance of free reserves at 5 April 2022 totalled £Nil (2021: £1,212). The trustees have previously adopted a policy of maintaining free resources not earmarked for long term investment at a level which is approximately equivalent to twelve months of expected annual expenditure. This is estimated to equate to approximately £31,000 to £35,000 at 5 April 2022. At this level, the trustees consider that, in the event of a significant decrease in income, they would be able, in the short term, to continue to meet their obligations to residents, whilst maintaining their contributions at the present low level. It would obviously be necessary to consider how income would be replaced or activities changed. Although free reserves were below target level at the year end, as explained in the notes to the accounts, the Trust received a donation of £50,000 in the year, and a further £50,000 was received after the year-end, which has helped to finance the rebuild of bungalows 7 and 8. Income from resident’s contributions will increase once occupancy rates return to normal levels and free reserves are expected to increase towards target level over the medium term. The trustees will continue to review their reserves policy on a regular basis.
Investment policy and performance
The trustees have considered the most appropriate policy for investing funds and consider that specialised unit trusts designed for the charity sector, and a building society investment account, meet their requirement to generate both income and capital growth with a low level of risk. Income from these investments for the year was £4,605 (2021: £4,664). In 2020, the covid-19 pandemic triggered a significant fall in financial market prices resulting in an unrealised loss on the unit trust investments of £14,952. In 2021, market prices recovered with the result that there was an unrealised gain of £11,221. This compares to an unrealised gain of £2,698 in 2022.
The trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Future plans
The trustees’ objective is to continue to achieve high levels of occupancy by maintaining the current high standards of accommodation, whilst maintaining residents’ contributions at a low level.
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NORTHAM TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Structure, governance and management
The charity is an unincorporated charity registered with the Charity Commission for England and Wales.
The trust deed provides for a minimum of four and a maximum of ten trustees. The trustees have the power to appoint substitute or additional trustees. The trustees may, if it appears expedient and proper so to do, invite Northamptonshire County Council to nominate persons for consideration by the trustees in the appointment of new or additional trustees. Mr E A Timson deceased, the founder of the Trust, had the power, in the case of any vacancy in the number of trustees, to nominate not more than four additional trustees. This power now rests with Mrs E J Brown. The Trustees remain in office until they are removed.
Risk review
The trustees have reviewed the major risks to which the Trust is exposed. The main financial risk has been connected with investment management, but this has been mitigated by investment in specialised unit trusts designed for the charity sector. The main operating risk concerns that arising from the landlord and tenant relationship. This has been mitigated by proper procedures when dealing with tenancy matters, regular maintenance of the properties, employment of professionals when necessary and insurance.
The trustees' report was approved by the Board of Trustees.
Mrs E J Brown
Trustee Dated: 23 January 2023
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NORTHAM TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NORTHAM TRUST
I report to the trustees on my examination of the financial statements of Northam Trust (the Trust) for the year ended 5 April 2022.
Responsibilities and basis of report
As the trustees of the 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 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 charity 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 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 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 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.
Paul Tyler FCA
Institute of Chartered Accountants in England and Wales
Azets Audit Services Thorpe House 93 Headlands Kettering NN15 6BL United Kingdom
Dated: 24 January 2023
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NORTHAM TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 5 APRIL 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income and endowments from: Donations and legacies 3 - 50,000 Charitable activities 4 18,058 - Investments 5 4,605 - Other income 6 1,527 - Total income 24,190 50,000 Expenditure on: Charitable activities 7 23,077 - Net gains/(losses) on investments 11 2,698 - Net incoming/(outgoing) resources before transfers 3,811 50,000 Gross transfers between funds 50,000 (50,000) Net movement in funds 53,811 - Fund balances at 6 April 2021 199,220 - Fund balances at 5 April 2022 253,031 - |
Total Unrestricted funds 2022 2021 £ £ 50,000 - 18,058 19,640 4,605 4,664 1,527 - 74,190 24,304 23,077 42,372 2,698 11,221 53,811 (6,847) - - 53,811 (6,847) 199,220 206,067 253,031 199,220 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
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NORTHAM TRUST
BALANCE SHEET
AS AT 5 APRIL 2022
| 2022 Notes £ Fixed assets Tangible assets 12 Investments 13 Current assets Cash at bank and in hand 126,738 Creditors: amounts falling due within one year 15 (200,016) Net current (liabilities)/assets Total assets less current liabilities Income funds Unrestricted funds Total unrestricted funds 17 253,031 |
£ 182,457 143,852 326,309 (73,278) 253,031 253,031 253,031 |
2021 £ 39,289 (38,077) 199,220 |
£ 56,854 141,154 |
|---|---|---|---|
| 198,008 1,212 |
|||
| 199,220 | |||
| 199,220 | |||
| 199,220 |
The financial statements were approved by the Trustees on 23 January 2023
Mrs E J Brown Trustee
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Charity information
Northam Trust is an unincorporated charity registered with the Charity Commission for England and Wales.
1.1 Accounting convention
The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued 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 financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The charity constitutes a public benefit entity as defined by FRS 102. The charity’s financial statements present information about it as an individual undertaking.
1.2 Going concern
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. At the end of the reporting period, the most significant areas of financial uncertainty affect the carrying value of fixed asset investments held by the charity, the level of investment return and the performance of investment markets, as explained in the notes to the financial statements, and the ongoing cost of maintaining the Trust’s properties whilst maintaining residents’ contributions at a low level, which is partly mitigated by the reserves policy developed by the trustees. In assessing the appropriateness of the going concern assumption, the trustees have reviewed the financial position of the Trust, considering all reasonably foreseeable potential scenarios and uncertainties in relation to income and expenditure. Based on this information, the trustees have reasonable expectation that the Trust can meet its liabilities as they fall due.
1.3 Charitable funds
Trust capital comprises the value of property and certain investments gifted to the Trust by its founder, adjusted for subsequent additions to and disposals of the original assets, and realised and unrealised gains and losses on investments. Revenue reserves comprise accumulated income from Trust properties and investments, less amounts expended n the objects of the Trust. The funds are classified as unrestricted funds. Unrestricted funds can be spent at the discretion of the trustees in furtherance of any of the Trust’s objects. Restricted funds are funds held on specific trusts declared by donors. The specific trusts establish the purpose for which the Trust can use the restricted funds.
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
1.4 Income
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and the amount can be quantified with reasonable accuracy. Donations are recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Unit trust income is recognised when receivable and the amount can be measured reliably, which is normally upon notification of the amount paid or payable by the fund manager. Income from residents’ contributions towards upkeep is recognised on a straight-line basis over the term of the tenancy agreement.
1.5 Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. When the charity enters into a contract for the supply of goods or services, expenditure is recognised once the supplier has performed their part of the contract.
Expenditure is accounted for on an accruals basis, including irrecoverable value added tax where appropriate. All expenses, including governance costs, are allocated to the applicable expenditure heading in the statement of financial activities.
1.6 Tangible fixed assets
Tangible fixed assets are stated at cost.
Buildings under construction are accounted for at cost, based on valuations for works carried out and other directly attributable costs incurred in the year. They are not depreciated until they are brought into use. On the basis that the donated services cannot be measured reliably, construction costs do not include the value to the charity of project management services provided by a related party.
At the period end, the residual value of freehold properties in use was estimated to be at least equal to their cost and, as a result, the carrying value of the assets was not depreciated. The residual values will be reassessed annually.
Subsequent expenditure on properties is capitalised when, in the opinion of the trustees, the performance of the assets is enhanced by the expenditure. Expenditure which maintains the performance of the assets is recognised in the period when incurred.
An item of property is derecognised either on disposal or when no future economic benefits are expected from its use or disposal.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year.
1.8 Impairment of fixed assets
At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 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.
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
(Continued)
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.
Basic financial liabilities
Basic financial liabilities, including creditors 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 Trust’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the Trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Restricted funds 2022 £ Donations and gifts 50,000 Donations and gifts Exceptional donation - E A Timson Family Trust 50,000 50,000 |
Total 2021 £ - |
|---|---|
| - | |
| - |
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
4 Charitable activities
| Provision of | Provision of | |
|---|---|---|
| accommodation | accommodation | |
| 2022 | 2021 | |
| £ | £ | |
| Residents' contributions towards upkeep | 18,058 | 19,640 |
5 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Income from listed investments - Unit trust distributions | 3,679 | 3,442 |
| Interest receivable on cash deposits | 926 | 1,222 |
| 4,605 | 4,664 | |
| Other income | ||
| Unrestricted | Total | |
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Other income | 1,527 | - |
6 Other income
Other income comprises £300 for compensation received from the Trust's bankers and £1,227 leakage allowance received from the Trust's water supplier.
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
7 Charitable activities
| Provision of accommodation Provision of accommodation 2022 2021 £ £ Repairs to properties 6,694 14,090 Loss on disposal of tangible fixed assets - 11,439 Water rates 2,374 1,730 Council tax 309 1,960 Insurance 3,947 3,580 Light and heat 868 548 Garden maintenance 4,078 4,445 18,270 37,792 Share of governance costs (see note 8) 4,807 4,580 23,077 42,372 |
Provision of accommodation Provision of accommodation 2022 2021 £ £ Repairs to properties 6,694 14,090 Loss on disposal of tangible fixed assets - 11,439 Water rates 2,374 1,730 Council tax 309 1,960 Insurance 3,947 3,580 Light and heat 868 548 Garden maintenance 4,078 4,445 18,270 37,792 Share of governance costs (see note 8) 4,807 4,580 23,077 42,372 |
Provision of accommodation Provision of accommodation 2022 2021 £ £ Repairs to properties 6,694 14,090 Loss on disposal of tangible fixed assets - 11,439 Water rates 2,374 1,730 Council tax 309 1,960 Insurance 3,947 3,580 Light and heat 868 548 Garden maintenance 4,078 4,445 18,270 37,792 Share of governance costs (see note 8) 4,807 4,580 23,077 42,372 |
|---|---|---|
| 2022 £ 6,694 - 2,374 309 3,947 868 4,078 18,270 4,807 23,077 |
2021 £ 14,090 11,439 1,730 1,960 3,580 548 4,445 |
|
| 37,792 4,580 |
||
| 42,372 |
8 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Amounts payable to independent examiner - 2,190 Sundry expenses - 217 Administrative support - 2,400 - 4,807 Analysed between Charitable activities - 4,807 |
2022Support costs Governance costs £ £ £ 2,190 - 1,968 217 - 212 2,400 - 2,400 4,807 - 4,580 4,807 - 4,580 |
2021 £ 1,968 212 2,400 |
| 4,580 | ||
| 4,580 |
Governance costs are all allocated to the provision of accommodation activity.
Amounts payable to the independent examiner comprise the independent examiner’s fee of £354 (2021:£300) and a fee of £1,836 (2021: £1,668) for accountancy and other services.
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year or the previous year. No trustees were reimbursed expenses during the year (2021: £Nil).
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
10 Exceptional expenditure
In the year ended 5 April 2021, the Trust incurred a loss on disposal of tangible fixed assets of £11,439. The loss on disposal represents the elimination of the cost of two bungalows demolished during the year.
11 Net gains/(losses) on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Unrealised gain on the revaluation of investments | 2,698 | 11,221 |
12 Tangible fixed assets
| Freehold land and Cost At 6 April 2021 Additions At 5 April 2022 Carrying amount At 5 April 2022 At 5 April 2021 |
buildings £ 56,854 125,603 |
|---|---|
| 182,457 | |
| 182,457 | |
| 56,854 |
The freehold property is used to provide accommodation for the charity’s tenants, who are the beneficiaries of the Trust.
13 Fixed asset investments
| Listed investments Cash in portfolio £ Cost or valuation At 6 April 2021 94,154 47,000 Valuation changes 2,698 - At 5 April 2022 96,852 47,000 Carrying amount At 05 April 2022 96,852 47,000 At 05 April 2021 94,154 47,000 |
Total £ 141,154 2,698 |
|---|---|
| 143,852 | |
| 143,852 | |
| 141,154 |
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
13 Fixed asset investments
(Continued)
All investments are carried at their fair value. Listed investments comprise shares in professionally managed collective investment funds. The basis of fair value for listed investments is equivalent to the market value, using the daily prices published by the fund managers. All investment assets are held within the UK.
The significance of investments to the ongoing financial sustainability of the Trust is considered in the financial review section of the Trustees' report.
The main risk to the Trust from investments lies in the combination of uncertain investment markets and volatility in yield. The Trust is in part reliant on income yield to finance its work and the collective investment funds referred to above are primarily invested in UK deposits, UK government bonds, other sterling denominated fixed interest securities and UK stocks.
Liquidity risk is anticipated to be low. The Trust‘s investments are traded in a market with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions. A significant cash balance is held.
The Trust manages these investment risks by operating an investment policy that provides for diversification of holdings that are quoted on recognised stock exchanges and cash. The Trust does not make use of derivatives and similar complex financial instruments.
| 14 Financial instruments Carrying amount of financial assets Instruments measured at fair value through profit or loss 15 Creditors: amounts falling due within one year Borrowings Other creditors Accruals and deferred income |
2022 £ 96,852 2022 £ 100,000 71,201 28,815 200,016 |
2021 £ 94,154 |
|---|---|---|
| 2021 £ - - 38,077 |
||
| 38,077 |
During the year, to assist with the financing of the project to rebuild two bungalows owned by the Trust, a loan was received from E.A.T. (Holdings) Limited. The loan is interest-free and there are no other specific terms or conditions.
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
16 Restricted funds
The income funds of the charity included restricted funds comprising the following donations and grants held on trust for specific purposes:
| Movement | Movement in funds | Movement in funds | |||
|---|---|---|---|---|---|
| in funds | |||||
| Incoming | Balance at | Incoming | Transfers | Balance at | |
| resources | 6 April 2021 | resources | 5 April 2022 | ||
| £ | £ | £ | £ | £ | |
| Bungalow rebuild cost fund | - | - | 50,000 | (50,000) | - |
The Trust received a donation in the year to cover part of the costs associated with the demolition and rebuilding of two bungalows owned by the Trust.
The costs covered by the donation have been capitalised and added to the cost of freehold land and buildings, which are used for the general purposes of the Trust. The funds have therefore been transferred to unrestricted funds.
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| Unrestricted funds | The funds of the Trust include the following unrestricted funds: | Movement in funds Movement in funds |
Balance at Incoming Resources Revaluations, Balance at Incoming Resources Transfers Revaluations, Balance at |
6 April 2020 resources expended gains and 6 April 2021 resources expended gains and 5 April 2022 |
losses losses |
£ £ £ £ £ £ £ £ £ £ |
Trust capital 125,614 - - 11,221 136,835 - - - 2,698 139,533 |
Revenue reserve 80,453 24,304 (42,372) - 62,385 24,190 (23,077) 50,000 - 113,498 |
206,067 24,304 (42,372) 11,221 199,220 24,190 (23,077) 50,000 2,698 253,031 |
Trust capital comprises the value of property and certain investments gifted to the Trust by its founder, adjusted for subsequent additions to and disposals of the original | assets, and realised and unrealised gains and losses on investments. | Revenue reserves comprise accumulated income from Trust properties and investments, less amounts expended on the objects of the Trust. The transfer in represents | funds released from restricted funds which were spent on freehold property assets, which are used for the general purposes of the Trust. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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NORTHAM TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
18 Events after the reporting date
Since 5 April 2022, in connection with the project to rebuild two bungalows owned by the Trust, it has received further donations of £40,000 from the E A Timson Family Charitable Trust and £10,000 from Mrs E J Brown.
19 Related party transactions
During the year, the Trust received a donation of £50,000 (2021: £Nil) from the E A Timson Family Trust, a charity connected with Mrs E J Brown.
In connection with the project to rebuild two of the bungalows owned by the Trust:
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Perfecta assets Limited, a company in which Mrs E J Brown is materially interested as a director and shareholder, has provided in the year and previous year, free of charge, assistance with the management of the project and has settled certain costs directly attributable to the project.
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On the basis that the value cannot be measured reliably, construction costs classified as additions to tangible fixed assets in the year and in the previous year do not include the value to the charity of the management services provided by Perfecta Assets Limited.
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Additions to fixed assets include £93,990 (2021: £6,256) in respect of costs attributable to the project, which have been paid by Perfecta Assets Limited. Creditors at 5 April 2022 include £45,586 (2021: £6,256) owed to Perfecta Assets Limited. £54,660 (2021: £Nil) was repaid to Perfecta Assets Ltd in the year.
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E.A.T (Holdings) Limited, a company in which Mrs E J Brown is materially interested as a director and shareholder, settled certain costs directly attributable to the project.
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Creditors at 5 April 2022 include £52,240 (2021: £Nil) in respect of costs attributable to the project, which have been paid by E.A.T (Holdings) Limited. Since the year-end, all costs incurred by E.A.T (Holdings) Limited have been reimbursed in full by the Trust.
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Creditors also incude a loan of £100,000 received from E.A.T (Holdings) Limited in the year. The loan is interest-free and there are no specific terms or conditions.
There were no other related party transactions that required disclosure during the current or preceding year.
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