Charity Registration No. 261397
MRS E.E. BROWN CHARITABLE SETTLEMENT TRUSTEES' REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
MRS E.E. BROWN CHARITABLE SETTLEMENT
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees M D Brown D B Brown N B Brown Charity number 261397 Principal address 2 Rutland Park Sheffield S10 2PD Accountants BHP LLP 2 Rutland Park Sheffield S10 2PD Bankers National Westminster Bank plc 21 The Square Retford Notts DN22 6DL Solicitors Wake Smith LLP No1 Velocity 2 Tenter Street Sheffield S1 4BY Investment advisors Brewin Dolphin 12 Smithfield Street London EC1A 9BD Independent examiner Rachel Heath FCCA DChA BHP LLP 2 Rutland Park Sheffield S10 2PD
MRS E.E. BROWN CHARITABLE SETTLEMENT
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7 - 13 |
MRS E.E. BROWN CHARITABLE SETTLEMENT
TRUSTEES' REPORT
The Trustees present their report and accounts for the year ended 5 April 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust Fund's 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 (second edition - October 2019).
Structure, governance and management
The Trust Fund arises from gifts made by Mrs Edna Elizabeth Brown by a deed of settlement dated 5 May 1970. Mrs Brown, who died in 2000, was either the mother or grandmother of the Trustees.
The Trustees who served during the year were:
M D Brown D B Brown N B Brown
Trustees are appointed in writing by the existing Trustees.
The Trustees regularly review the recipients and level of grants.
All Trustees give their time freely and no remuneration was paid in the year. No expenses were paid to the Trustees during the year.
The principal risks to which the charity is exposed are the security and the performance of the investments and cash and the Trustees are satisfied that they have arrangements in place to mitigate those risks.
Objectives and activities
The Trust Fund is to be applied by the Trustees to benefit such charitable institutions or objects or purposes as the Trustees may at their total discretion from time to time decide.
Within these obligations, it has been the Trustees' policy for a number of years to give regular support to a number of charitable organisations. These are mostly paid out by annual standing orders. The Trustees make other grants from time to time (but will not be considering direct appeals for assistance until further notice).
It is not the Trustees' policy to make grants to individuals or in respect of medical research.
Public benefit
The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Details of the activities carried out to deliver a public benefit are set out in the Achievements and performance section below.
Achievements and performance
During the year grants were paid to 44 organisations totalling £20,700 (2021: £21,700). Details of the ongoing support provided and the grants made are set out in the notes to the accounts.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
TRUSTEES' REPORT (CONTINUED)
Financial review
The attached accounts show the current state of the charity's finances.
Total income for the year was £34,141 (2021: £26,292).
Total expenditure for the year was £32,826 (2021: £33,653). Investment management costs were £7,859 (2021: £6,769). Grants to institutions were £20,700 (2021: £21,700). Support costs were £4,267 (2021: £5,184).
Net income for the year was £98,751 (2021: £156,515) after taking into account the gain on investment assets of £97,436 (2021: £163,876). There was a surplus on the unrestricted fund of £25,457 (2021: £20,158) and a surplus on the endowment fund of £73,294 (2021: £136,357).
Total funds carried forward at 5 April 2022 are £1,116,522 (2021: £1,017,771) of which endowment funds are £912,228 (2021: £838,934) and unrestricted funds are £204,294 (2021: 178,837).
The Trustees consider the overall finances of the Charity to be sound.
Reserves policy
At 5 April 2022 the charity had unrestricted reserves amounting to £204,294. The Trustees consider it to be prudent to hold income reserves of this order partly so that the level of grants in the immediate future can be sustained in the event of any unforeseen fall in incoming resources and partly to enable the Trustees to make one or more particularly substantial grants without prejudicing the normal pattern of grant making.
The Trustees have unrestricted investment powers.
Going concern
There are no material uncertainties in relation to going concern. Further details about the adoption of the going concern basis are given in note 1.10 to the accounts.
Investment policy
The expendable endowment fund assets are held predominately in quoted securities covering a diversified range of assets including Fixed Interest, UK and Overseas Equities, Commercial Property and Alternative Investments.
The investment objective is to maximise the funds of the charity through a mixture of the above assets, achieving a level of income commensurate to the asset mix and capital growth ahead of inflation over time. This objective should be achieved undertaking only a moderate level of risk. Currently around three quarters of the unrestricted income fund is held in quoted securities.
The unrestricted income fund is held in quoted securities and cash on deposit at the best interest rates available.
The Trustees' investments are managed by the investment advisors on a discretionary basis.
Asset cover for funds
Note 12 sets out an analysis of the assets attributable to the various funds. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
TRUSTEES' REPORT (CONTINUED)
Approved by the Trustees and signed on their behalf by:
M D Brown Trustee Dated: 11 November 2022
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MRS E.E. BROWN CHARITABLE SETTLEMENT
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF MRS E.E. BROWN CHARITABLE SETTLEMENT
I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2022, which are set out on pages 5 to 13.
Responsibilities and basis of report
As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared the accounts (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 Rebublic of Ireland (FRS102) 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 since been withdrawn.
We understand that 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.
I have completed my examination. I confirm that no material 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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accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records.
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the accounts 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 accounts to be reached.
Rachel Heath FCCA DChA BHP LLP 2 Rutland Park Sheffield S10 2PD
Dated: 3 February 2023
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MRS E.E. BROWN CHARITABLE SETTLEMENT
STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted Endowment Total funds funds 2022 Notes £ £ £ Income and endowments from: Investments and deposit interest 3 34,141 - 34,141 Expenditure on: Raising funds Investment management costs 4 - 7,859 7,859 Charitable activities Organisations - less than £1,000 5 11,700 - 11,700 Organisations - £1,000 or more 5 9,000 - 9,000 Support costs 6 4,267 - 4,267 Total expenditure 4 24,967 7,859 32,826 Net gains on investments 16,283 81,153 97,436 Net income - net movement in funds 25,457 73,294 98,751 Reconciliation of funds Total funds brought forward at 6 April 2021 178,837 838,934 1,017,771 Total funds carried forward at 5 April 2022 204,294 912,228 1,116,522 |
Total 2021 £ 26,292 6,769 12,700 9,000 5,184 |
|---|---|
| 33,653 | |
| 163,876 | |
| 156,515 861,256 |
|
| 1,017,771 |
All income and expenditure amounts relate to continuing activities.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
BALANCE SHEET
| Notes ixed assets nvestments 10 urrent assets ash at bank and in hand reditors: amounts falling due ithin one year 11 et current assets et assets 12 harity funds apital funds ndowment funds ncome funds nrestricted income funds |
2022 £ £ 1,050,106 69,920 69,920 (3,504) 66,416 1,116,522 912,228 204,294 1,116,522 |
£ 57,633 57,633 (3,102) |
2021 £ 963,240 54,531 |
|---|---|---|---|
| 1,017,771 | |||
| 838,934 178,837 |
|||
| 1,017,771 |
The accounts were approved by the Trustees on 11 November 2022
M D Brown Trustee
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
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 (FRS 102) 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 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 the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts with the Financial Reporting Standard applicaple in the UK and Republic of Ireland (FRS102) 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 E E Brown Charitable Settlement meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in sterling, which is the functional currency of the charity and rounded to the nearest £.
1.2 Income
Dividends and interest are taken into account in the year in which they are received.
1.3 Expenditure
Expenditure is included on an accruals basis inclusive of any irrecoverable VAT.
Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
All governance and secretarial costs are akin to support costs under SORP 2019. All costs other than investment fees are therefore shown as support costs under charitable expenditure.
1.4 Investments
Investments are included at their market value on 5 April and the unrealised net gains or losses arising from the revaluation are recognised in the Statements of Financial Activities.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
1.5 Fund accounting
Expendable Endowment Fund
This fund represents the value of the original gift to the charity in 1970, together with the net investment gains, realised and unrealised since that time. The Trustees are required to apply the income of the fund to such charitable objects and institutions as they at their absolute discretion decide. They are also empowered to apply the capital in the same way. However the Trustees consider that for the 80 year period of the trust the capital should be regarded as reasonably permanent and as such is shown in the financial statements as an expendable endowment fund.
Unrestricted Income Fund
These are the reserves which the Trustees are free to use in accordance with the charity's objectives.
1.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.
1.7 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of the acquisition or opening of the deposit or similar account.
1.8 Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
1.9 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.10 Going Conern
The financial statements have been prepared on a going concern basis as the trustees believe that nomaterial uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for the 12 months from authorising these financial statements.
The charity has sufficient reserves to enable it to continue for the forseeable future. Therefore, the trustees believe it is appropriate for the financial statements to be prepared on the going concern basis.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
2 Prior year's statement of financial activities
| 3 | Unrestricted Endowment funds funds £ £ Income and endowments from: Investments 26,292 - Expenditure on: Raising funds Investment management costs - 6,769 Charitable activities Organisations - less than £1,000 12,700 - Organisations - more than £1,000 9,000 - Support costs 4,344 840 Total expenditure 26,044 7,609 Net gains on investments 19,910 143,966 Net income - Net movement in funds 20,158 136,357 Reconciliation of Funds Total funds brought forward at 6 April 2020 158,679 702,577 Total funds carried forward at 5 April 2021 178,837 838,934 Income from investments 2022 £ Income from listed investments 34,134 Interest receivable 7 34,141 |
Total 2021 £ 26,292 |
|---|---|---|
| 6,769 12,700 9,000 5,184 33,653 |
||
| 163,876 | ||
| 156,515 861,256 |
||
| 1,017,771 | ||
| 2021 £ 26,266 26 26,292 |
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 4 Total expenditure Raising funds Investment management costs Charitable activities Organisations - less than £1,000 Organisations - £1,000 or more Support costs 5 Grants payable Organisations - less than £1,000 Organisations - £1,000 or more |
Other costs £ 7,859 - - 4,267 12,126 |
Grant funding £ - 11,700 9,000 - 20,700 |
Total 2022 £ 7,859 11,700 9,000 4,267 32,826 2022 £ 11,700 9,000 20,700 |
Total 2021 £ 6,769 |
|---|---|---|---|---|
| 12,700 9,000 5,184 |
||||
| 33,653 | ||||
| 2021 £ 12,700 9,000 |
||||
| 21,700 |
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 5 Grants payable, continued Grants to institutions relating to organisations - £1,000 or more comprise: Jewish Museum Magen David Adom Nightingale House The Royal Star & Garter Homes St. John's Opthalmic Hospital Victim Support SCOPE Jewish Care UCL Support costs Accountancy charges Independent examination fees Bank charges Legal charges |
2022 £ - 2,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 9,000 2022 £ 3,516 732 19 - 4,267 |
2021 £ 1,000 2,000 1,000 1,000 1,000 1,000 1,000 1,000 - 9,000 2021 £ 3,672 648 24 840 5,184 |
|
|---|---|---|---|
6 Support costs
Included within the accountancy charges is the independent examination.
7 Trustees
The Trustees (or any persons connected with them) neither received or waived any remuneration during the year (2021: £nil).
The Trustees (or any persons connected with them) did not have any expenses reimbursed during the year (2021: £nil).
8 Employees
There were no employees during either year.
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
9 Taxation
The charity is considered to pass the tests set out in Schedule 6, paragraph 1 of the Finance Act 2010 and therefore meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received with in categories covered by the Income Tax Act 2007, Part 10 S521 - S537 or S256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
10 Fixed asset investments
| Unrestricted Endowment Total Funds Funds 2022 Listed investments £ £ £ Market value at 6 April 2021 122,722 818,252 940,974 Disposals proceeds - (100,997) (100,997) Acquisitions at cost - 100,752 100,752 Change in value in the year 16,283 81,153 97,436 Market value at 5 April 2022 139,005 899,160 1,038,165 Investment cash - 11,941 11,941 At 5 April 2022 139,005 911,101 1,050,106 Historical cost: At 5 April 2022 96,830 503,536 600,366 At 5 April 2021 96,830 504,878 601,708 |
Total 2021 798,608 (144,568) 123,058 163,876 |
|---|---|
| 940,974 | |
| 22,266 | |
| 963,240 | |
| 11 Creditors: amounts falling due within one year Independent examination charges Accountancy charges |
2022 £ 732 2,772 3,504 |
2021 £ 648 2,454 |
|---|---|---|
| 3,102 |
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MRS E.E. BROWN CHARITABLE SETTLEMENT
NOTES TO THE ACCOUNTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2022
| 12 Analysis of net assets between funds Unrestricted funds Endowment funds £ £ Fund balances at 5 April 2022 are represented by: Investments 139,005 911,101 Current assets 68,793 1,127 Creditors: amounts falling due within one year (3,504) - 204,294 912,228 Fund balances at 6 April 2021 were represented by: Investments 125,336 837,904 Current assets 56,603 1,031 Creditors: amounts falling due within one year (3,102) - 178,837 838,934 Unrealised gains included above in the 2022 balances: On investments 42,175 395,624 42,175 395,624 Reconciliation of movements in unrealised gains Unrealised gains at 6 April 2021 25,892 313,374 In respect of disposals in year - 1,579 25,892 314,953 Net gains on revaluations in year 16,283 80,671 Unrealised gains at 5 April 2022 42,175 395,624 |
Total £ 1,050,106 69,920 (3,504) |
Total £ 1,050,106 69,920 (3,504) |
Total £ 1,050,106 69,920 (3,504) |
|---|---|---|---|
| 1,116,522 | |||
| 963,240 57,633 (3,102) |
|||
| 1,017,771 | |||
| 437,799 | |||
| 437,799 | |||
| 339,266 1,579 |
|||
| 340,845 96,954 |
|||
| 437,799 |
13 Related parties
There are no related party transactions in either year.
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