Charity Number: 266998
The Stephen Clark Charitable Settlement
1965
Report and financial statements For the year ended 31 December 2021
The Stephen Clark Charitable Settlement 1965
Contents
For the year ended 31 December 2021
Reference and administrative details .............................................................................................. 1 Trustees’ annual report ................................................................................................................... 2 Independent auditor’s report ......................................................................................................... 6 Statement of financial activities .................................................................................................... 11 Balance sheet ............................................................................................................................... 12 Statement of cash flows …………………………………………………………………………………………… 13 Notes to the financial statements ................................................................................................. 14
The Stephen Clark Charitable Settlement 1965
Reference and administrative details
| For theyear ended | 31 December | 2021 |
|---|---|---|
| Charity number | 266998 | |
| Registered office | 25 Westwood Park | |
| and operational | London | |
| address | SE23 3QG | |
| Trustees | Trustees who served during the year and up to the date of this report were | |
| as follows: | ||
| Mrs H Hall | Chair | |
| Ms A Clark | ||
| Mr M Hall | ||
| Ms H Lynn | ||
| Trust Secretary | Ms S Blackwell | |
| Bankers | CAF Bank Ltd | |
| Kings Hill | ||
| West Malling | ||
| Kent | ||
| ME19 4TA | ||
| Auditor | Haines Watts Bristol Limited | |
| Chartered Accountants and Statutory Auditors | ||
| Bath House | ||
| Bath Street | ||
| BRISTOL | ||
| BS1 6HL |
1
The Stephen Clark Charitable Settlement 1965
Trustees’ annual report
For the year ended 31 December 2021
The Trustees present their report and the audited financial statements for the year ended 31 December 2021.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the charity's trust deed and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019.
Objectives and activities
Purposes and aims
The governing document of the Trust defines its objects as:
The main activity is the provision of financial grants for general charitable purposes; education and training; disability; the prevention or relief of poverty; overseas aid/famine relief; environment/conservation and heritage and economic/community development/employment to further the charity’s purpose for the public benefit.
The Trustees review the aims, objectives and activities of the charity each year. This review looks at what the charity has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and activities remain focused on its stated purposes.
The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.
The charity does not fundraise; its income is almost entirely from investments with occasional gifts and bequests. It aims to distribute its surplus income (after administrative expenses) in the form of grants for charitable purposes or to other charities. The Trustees, in making decisions on which charitable causes to support, have had due regard to the commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant.
Achievements and performance
The charity's main activities and who it tries to help are described below. All its charitable activities focus on grant giving and are undertaken to further the charitable purposes for the public benefit of the Stephen Clark Charitable Settlement 1965.
2
The Stephen Clark Charitable Settlement 1965
Trustees’ annual report
For the year ended 31 December 2021
The Trust supports organisations that:
-
Demonstrate accountability
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Have an appropriate governance structure and sufficient capacity to carry out the project
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Have a clear vision of how to achieve their intended results
In 2021 the Trust made 25 grants totalling £40,998, compared with 27 totalling £63,000 in 2020. A list by recipient of the grant expenditure is given in note 7. The lower amount for donations reflects a fall in the Trust’s income through a combination of factors affecting Clark’s dividends.
The Trust gave 3 grants of £6,000 or more, the rest being for amounts of £3,000 or less. 6 were for conservation; 5 for education; 1 for the arts; 5 for social justice and 8 were for health/disability. The larger number of health/disability projects was in part due to the Trust continuing to prioritise work involving Covid 19.
Support for projects working overseas included 3 larger grants to charitable projects working in Bangladesh, South Sudan and Malawi. These 3 grants were specifically for work to mitigate the impact of Covid 19. In Niger the Trust supported work to improve the ecosystem of Park W. The project helps rural communities to develop sustainable tree-based livelihoods to increase household income, whilst protecting vital forest resources. Finally, in Uganda we supported work helping farmers to grow more and waste less food.
4 grants were made to Canadian charities, 2 of which were for education, 1 for health and 1 for social justice. The remaining grants went to projects based in the UK.
The range of work supported in the UK included conserving endangered beetles; work with gangs and young offenders; support for homeless women; a project to support people with mental health issues; a cycling project for people with disabilities; an arts project for refugees; a wildlife conservation project and a range of projects for young people on the autistic spectrum.
The Trustees choose to give grants to charities whose aims align with theirs. They do not, on the whole, respond to requests for grants, preferring to seek out organisations whose aims accord with theirs. The Trustees receive reports on the activities undertaken by the recipients of grants and are satisfied that in furthering the work of the grant receiving charities they further the aims of the Stephen Clark Charitable Settlement 1965.
The trustees believe that in concentrating the resources on these identified areas it not only benefits those directly involved in projects that the receiving charities undertake, but also benefits the wider public in helping mitigate climate change, fostering greater social cohesion and educating for the future.
Financial review
The Trust was the beneficiary of the residuary estate of Marianna Clark who died on 2[nd] November 2020. During the year the Trust received just over £2.3m. A further £200,000 was received in
3
The Stephen Clark Charitable Settlement 1965
Trustees’ annual report
For the year ended 31 December 2021
early 2022 (and has been included in these accounts). There is another amount due (less than £10,000) which has not yet been quantified.
Apart from the above sums, income has reduced from £106,425 in 2020 (which included a oneoff donation of £100,000) to £6,306 in 2021. No dividend income was received in 2021 from the C&J Clark Limited shares (2020 £NIL). Administrative and governance costs have increased by £6,281 almost entirely due to the requirement to have an audit for 2021.
A debtor of £200,000 was raised for the amount received in March 2022 from the estate of Dr Clark. Accruals have increased from £10,373 to £14,979, mainly due to the need to have an audit for 2021. Current asset investments of £2,335,608 (2020 - £30,444) include the legacy from Dr Clark being received in December 2021.
In October 2021 the C & J Clark Limited shares were valued at 46p each. This is a considerable reduction from the £2.85 per share that they were stated at in the 2020 accounts. This has led to a reduction on value of the Trust’s shareholding of £1,514,287 in the year.
The Berenberg portfolio of investments made realised net gains during the year of £1,322 and an unrealised gain on revaluation of the investments at the year-end of £79,671.
Principal risks and uncertainties
The Trustees acknowledge their responsibility to identify, assess and manage risks. The Trust has developed a risk strategy identifying business risks and strategies for management in the context of the increase in endowment and the Trust’s strategic plans.
Investment in C&J Clark Ltd, a private company, brings risk of lack of liquidity and uncertainty of income. However, the Trustees are mindful of the requirements of s.3 of the Trustee Act 2000. This and risk to reputation are two areas of risk that have been identified by Trustees.
The Trustees have considered the impact the Covid 19 pandemic will have on the charity’s current and future financial position and still believe there is no significant impact.
Reserves policy and going concern
We are a charity that has no need to keep reserves as we generally aim to distribute our income each year. We currently have no forward commitments for grant giving and have no policy to make such commitments.
4
The Stephen Clark Charitable Settlement 1965
Trustees’ annual report
For the year ended 31 December 2021
Plans for the future
We aim to formalise a grant giving strategy for the following three years. The Trustees do not intend to diverge from grant giving as the only activity.
Structure, governance and management
This charity was formed under a Deed of Settlement in March 1965, became exclusively a charity under a Declaration of Trust in February 1973, and adopted the provisions of the Roger and Sarah Bancroft Clark Charitable Trust dated 31 March 1960. The Trustees have complete discretion over the distribution of the funds of the Settlement, both as to the distribution of funds and to the choice of beneficiary. They have however, chosen to retain some funds, and to deem the rest as distributable. During 2013, the Charity received investments in the form of an endowment. They have recently had legal advice that has led them to restate this fund as distributable.
The Trustees also have complete discretion as to the appointment of new Trustees. Any new trustees are trained and inducted by the remaining trustees. All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.
Related parties and relationships with other organisations
We are not related to any other parties or organisations.
Statement of responsibilities of the Trustees
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
-
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to Select suitable accounting policies and then apply them consistently
-
Observe the methods and principles in the Charities SORP
-
Make judgements and estimates that are reasonable and prudent
5
The Stephen Clark Charitable Settlement 1965
Trustees’ annual report
For the year ended 31 December 2021
-
State whether applicable UK Accounting Standards and statements of recommended practice 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 charity will continue in operation
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees and signed on their behalf by
Mrs H Hall Chair of Trustees
25 October 2022
6
Independent auditor’s report
To the members of
The Stephen Clark Charitable Settlement 1965
Opinion
We have audited the financial statements of The Stephen Clark Charitable Settlement 1965 (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In our opinion the financial statements:
-
give a true and fair view of the state of the charity's affairs as at 31 December 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 Auditors' 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 UK, including the FRC'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.
However, not all future events or conditions can be predicted. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity's trade, customers, suppliers and wider economy. The Trustees' view on the impact of Covid-19 is disclosed in the Trustees' Report.
7
Independent auditor’s report
To the members of
The Stephen Clark Charitable Settlement 1965
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
-
sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
8
Independent auditor’s report
To the members of
The Stephen Clark Charitable Settlement 1965
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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
(i) We obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which it operates. We determined the following laws and regulations of most significance were: Charity SORP 2019 and UK GAAP.
(ii) We obtained an understanding of how the charity complies with those legal and regulatory frameworks by making inquiries of management. We corroborated our enquiries through our review of board minutes and other relevant meeting minutes.
(iii) We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - identifying and assessing the effectiveness of controls management has in place to prevent and detect fraud;
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understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
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challenging assumptions and judgements made by management in its significant accounting estimates;
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identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;
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and assessing the extent of compliance with the relevant laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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Independent auditor’s report
To the members of
The Stephen Clark Charitable Settlement 1965
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 auditors' 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 the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Haines Watts Bristol Limited
Bath House 6-8 Bath Street Bristol BS1 6HL
25 October 2022
10
The Stephen Clark Charitable Settlement 1965 Statement of financial activities
For the year ended 31 December 2021
| Note Income and endowments from: 3 5 6 8 Reconciliation of funds: Total expenditure Charitable activities Total funds brought forward Total funds carried forward Grant making Other expenditure - losses (gains) on currency translation Net (expenditure) and net movement in funds Net income before net gains / (losses) on investments Net (losses)/gains on investments Investments Total income and endowments Expenditure on: Donations and legacies |
Unrestricted £ 2,526,300 6,306 - |
2021 £ 2,526,300 6,306 - |
Restated and unaudited 2020 £ 100,000 6,425 - |
|---|---|---|---|
| 2,532,606 | 2,532,606 | 106,425 | |
| 62,632 38,246 |
62,632 38,246 |
79,695 (1,347) |
|
| 100,878 | 100,878 | 78,348 | |
| (1,433,294) 2,431,728 |
(1,433,294) 2,431,728 |
48,512 28,077 |
|
| 998,434 2,474,486 |
998,434 2,474,486 |
76,589 2,397,897 |
|
| 3,472,920 | 3,472,920 | 2,474,486 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.
11
The Stephen Clark Charitable Settlement 1965 Balance sheet
As at 31 December 2021
| As at 31 December 2021 | As at 31 December 2021 | |||
|---|---|---|---|---|
| Note £ Fixed assets: Tangible fixed assets 12 13 Current assets: 200,000 2,335,608 32,245 2,567,853 Liabilities: 14 (14,979) 15a 16a 3,434,006 38,914 Total unrestricted funds Total charity funds Creditors: amounts falling due within one year Net current assets Total net assets The funds of the charity: Unrestricted income funds: General funds - distributable Retained Investments Cash at bank and in hand Debtors Investments |
2021 £ 1 920,045 |
- 30,444 76,895 |
Restated and unaudited 2020 £ 133 2,377,387 |
|
| 920,046 2,552,874 |
2,377,520 96,966 |
|||
| 2,567,853 (14,979) |
107,339 (10,373) |
|||
| 3,434,006 38,914 |
2,233,385 241,101 |
|||
| 3,472,920 | 2,474,486 | |||
| 3,472,920 | 2,474,486 | |||
| 3,472,920 | 2,474,486 |
Approved by the trustees on 25 October 2022 and signed on their behalf by
H. Hall Trustee
12
The Stephen Clark Charitable Settlement 1965 Statement of cash flows
For the year ended 31 December 2021
Reconciliation of net income to net cash flow from operating activities
| Depreciation charges Net cash provided by / (used in) operating activities Note Purchase of fixed assets Net income for the reporting period (as per the statement of financial activities) (Gains)/losses on investments Dividends, interest and rent from investments Receipt of shares (non-cash items) Decrease/(Increase) in debtors Increase/(decrease) in creditors Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and cash equivalents in the year Cash flows from operating activities Net cash provided by / (used in) investing activities Proceeds from sale of investments Purchase of investments Net cash (used in) operating activities Cash flows from investing activities: Dividends, interest and rents from investments |
£ £ 2,230,160 6,306 - 157,636 (133,588) 30,354 2,260,514 107,339 2,367,853 2021 |
£ £ 2,230,160 6,306 - 157,636 (133,588) 30,354 2,260,514 107,339 2,367,853 2021 |
2021 £ 998,434 132 1,433,294 (6,306) - (200,000) 4,606 |
Restated and unaudited 2020 £ 76,589 131 (48,512) (6,425) - - (284) |
|---|---|---|---|---|
| 2,230,160 | 21,499 | |||
| 2,260,514 107,339 |
33,719 73,620 |
|||
| 2,367,853 | 107,339 |
13
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
1 Accounting policies
a) Statutory information
The Stephen Clark Charitable Settlement 1965 is an unincorporated charity established by deed.
The registered office address is 25 Westwood Park, London, SE23 3QG.
b) Basis of preparation
The financial statements of the charity 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.
The accounts (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 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. 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 the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
d) Going concern
The financial statements have been prepared on the basis of being a going concern. The Trustees do not have any concerns about the Charity's ability to continue as a going concern as there are sufficient resources in reserve to meet any liabilities that may fall due for at least 12 months from the date that these financial statements are approved. In particular, in response to the Covid-19 pandemic, the Trustees have considered the impact on the Charity of possible scenarios brought on by the impact of Covid-19 alongside measures they can take to mitigate the impact.
e) Critical accounting judgements and key sources of estimation uncertainty
Key judgements that the charity has made which have a significant effect on the accounts include estimating the value of the shares in C & J Clark Limited, a private limited company. Valuations are usually prepared by the company. Preparation of the company accounts has been delayed as a Creditors Voluntary Arangement was in place. Additional investment has now been received. As a result the trustees have decided, for the time being, to use the last available valuation. As at September 2020 the shares were valued at £0.45 per share.
Apart from this, the trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
f) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
g) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
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The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
Accounting policies (continued)
h) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are investment income, donations and other incoming resources received or generated for the
i) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs of making donations to other charities undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
j) Grants payable
Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Grants payable are charged to the statement of financial activities in the year in which 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 as accrued as expenditure.
k) Allocation of support costs
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the overhead costs of the central function, is apportioned on the following basis which are an estimate, based on time, of the amount attributable to each activity.
| Support costs | 87.2% | |
|---|---|---|
| � | ||
| � | Governance costs | 12.8% |
| Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, | ||
| � | Grants made | 100% |
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
l) Unlisted and listed investments
Unlisted investments have been valued to reflect valuations carried out by PricewaterhouseCoopers, Chartered Accountants, at a date closest to the balance sheet in order to comply with the recommendation of the SORP (see critical accounting judgements).
Fixed asset investments in quoted shares, traded bonds and similar investments are valued initially at cost and subsequently at fair value (their market value) at the year end. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.
Current asset investments reflect cash held in investment portfolios in the short term prior to investment in listed investments.
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The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
Accounting policies (continued)
1
m) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
n) 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.
o) Financial instruments
The Charity 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 Charity's Balance Sheet when the Charity becomes party to the contractual 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 bank balances, are initially measured at transaction price including transaction costs and 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 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 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 receipts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled.
p) Investment Powers of Trustees
The Trustees have complete discretionary power of investment, and a specific power to retain the existing shares in C&J Clark Ltd. In addition, the Trustees have complete power to retain or distribute the investments of the Settlement.
16
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
2 Detailed comparatives for the statements of financial activities
| Stephen Clark Charitable Settlement 1957 Unrestricted legacy Income from donations and legacies Total funds carried forward Income and endowments from: Donations and legacies Investments Total income and endowments Net income / (expenditure) and endowments before Expenditure on: Charitable activities Total expenditure Net gains / (losses) on investments Net expenditure and net movement in funds Total funds brought forward Other expenditure - losses (gains) on currency translation |
Unrestricted £ 100,000 - 6,425 |
2020 £ 100,000 - 6,425 |
|---|---|---|
| 106,425 | 106,425 | |
| 79,695 (1,347) |
79,695 (1,347) |
|
| 78,348 | 78,348 | |
| 28,077 48,512 |
28,077 48,512 |
|
| 76,589 2,397,897 |
76,589 2,397,897 |
|
| 2,474,486 | 2,474,486 | |
| 2021 £ 2,526,300 |
2020 £ 100,000 |
3 Income from donations and legacies
Unrestricted legacy
This includes £200,000 which was received in March 2022. The whole donation is was part of a bequest from Dr Marianna Clark. This satisfied the conditions for entitlement, certainty and the ability to be quantified.
4 Income from investments
| Dividends Interest |
2021 Total £ 5,083 1,223 |
2020 Total £ 5,324 1,101 |
|---|---|---|
| 6,306 | 6,425 |
All investment income is unrestricted.
17
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
6a Analysis of expenditure (current year)
| LEI (London Stock Exchange) Support and governance costs Accountancy Auditors' remuneration Total expenditure 2021 Grants made (note 7) Administration charges Printing, stationery etc Bank charges Investment management fees Legal fees Depreciation |
Charitable activities Grants made £ 40,998 16 |
Governance costs £ - 1,094 510 780 4,596 |
Support costs £ - 7,454 345 110 6,519 132 78 |
2021 Total £ 40,998 8,548 345 126 6,519 510 780 132 4,596 78 |
2020 Total £ 63,000 6,942 374 72 6,838 - 760 131 1,500 78 |
|---|---|---|---|---|---|
| 41,014 21,618 |
6,980 (6,980) |
14,638 (14,638) |
62,632 - |
79,695 - |
|
| 62,632 | - | - | 62,632 | 79,695 |
18
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
6b Analysis of expenditure (prior year)
| Depreciation LEI (London Stock Exchange) Support and governance costs Total expenditure 2019 Grants made (note 7) Administration charges Accountancy Examiner's/auditors' remuneration Printing, stationery etc Bank charges Investment management fees Legal fees |
Charitable activities Grants made £ 63,000 - - 11 - - - - - - |
Governance costs £ - 889 - - - - 760 - 1,500 - |
Support costs £ - 6,053 374 61 6,838 - - 131 - 78 |
2020 Total £ 63,000 6,942 374 72 6,838 - 760 131 1,500 78 |
|---|---|---|---|---|
| 63,011 15,337 |
3,149 (3,149) |
13,535 (12,188) |
79,695 - |
|
| 78,348 | - | 1,347 | 79,695 |
19
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
7 Grants made
| Good Law Project HealthBus Trust Julian House Park Lane Stables RDA Richmond AID Quaker Service Northern Ireland Sydenham Garden Tree Aid Total grants made The St Matthews Project Wheels for Wellbeing SPIRES Centre York University Human Rights Department Skylarks MENCAP The Big Issue Foundation Colin Neighbourhood Partnership Centraide of Greater Montreal Ebony Horse Riding Club TAG Youth Group McGill University Otakar Kraus Music Trust Prisoner's Education Trust Richmond Carers Centre Superkidz Somerset Wildlife Trust Woodland Trust AGE UK Somerset Arthritis Society Bath Industrial Heritage Belfast Hills Partnership RUILS Black Box Belfast Farmers Overseas Action Group Bug Life Clark Foundation Coppleston Centre Katherine Low |
Grants to institutions £ 500 1,000 1,000 6,666 2,000 1,000 1,000 6,666 1,000 2,500 500 500 500 500 1,000 500 1,000 1,000 1,000 1,000 1,000 6,666 1,000 1,000 500 |
2021 £ - 500 - 1,000 1,000 - 6,666 2,000 1,000 - 1,000 - 6,666 - - 1,000 - 2,500 500 500 500 - 500 1,000 500 1,000 - 1,000 1,000 1,000 1,000 - 6,666 1,000 1,000 - 500 |
2020 £ 3,000 500 2,500 - 1,000 10,000 - 2,500 - 1,000 - 1,000 - 1,000 10,000 14,000 1,000 3,000 500 1,500 1,000 1,000 500 1,000 500 1,000 500 - 1,000 - 1,000 1,000 - 1,000 - 1,000 - |
|---|---|---|---|
| 40,998 40,998 |
40,998 40,998 |
63,000 63,000 |
The charity makes grants to organisations who meet its grant strategy twice a year following a meeting of the Trustees.
20
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
8 Net expenditure for the year
| This is stated after charging / (crediting): | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Auditors' remuneration | ||
| Audit fee | 4,596 | 1,500 |
9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
The charity does not employ any staff.
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).
No Trustee was reimbursed for any expenses (2020: £Nil).
10 Related party transactions
There were no related party transactions for the year ended 31 December 2021.
During the year an aggregate of £2,526,300 (2020- £100,000) was received in donations and legacies from related parties.
11 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
21
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
12. Tangible fixed assets
| Berenberg Portfolio C & J Clark Shares £ £ 571,647 1,805,740 133,588 - (157,636) - 1,322 - 79,671 (1,514,287) 628,592 291,453 Disposal proceeds Investments held as at 31 December 2021 and that are material in that they represent 10% or more Charity's holdings are as follows: Additions at cost Equities: UK registered companies Bonds Fair value at the end of the year Fair value at the start of the year Unlisted shares in UK registered companies Net gains/(losses) on disposals of investments : Non-UK registered companies Investments Cost At valuation At the start of the year Additions in year Charge for the year At the end of the year Net book value At the end of the year At the start of the year Investments comprise: Number of C & J Clark shares held at 31 December 2021 Berenberg Portfolio At the end of the year Depreciation At the start of the year Net gain / (loss) on change in fair value at 31 December 2021 |
Berenberg Portfolio £ 571,647 133,588 (157,636) 1,322 79,671 |
C & J Clark Shares £ 1,805,740 - - - (1,514,287) |
2021 Total £ 2,377,387 133,588 (157,636) 1,322 (1,434,616) |
Computer equipment £ 394 - |
|---|---|---|---|---|
| 394 | ||||
| 261 132 |
||||
| 393 | ||||
| 1 | ||||
| 133 | ||||
| 2020 Total £ 2,334,670 191,288 (197,083) 5,272 43,240 |
||||
| 628,592 | 291,453 | 920,045 | 2,377,387 | |
| 2021 £ 151,615 118,964 358,013 291,453 |
2,020 £ 136,291 117,314 318,042 1,805,740 |
|||
| 920,045 | 2,377,387 | |||
| 633,593 | 633,593 |
13 Investments
| 2021 | 2,020 |
|---|---|
| £ | £ |
| 291,453 | 1,805,740 |
C & J Clark Limited
At 31 December 2021 the Trustees held a total of 633,593 £1 ordinary shares in C & J Clark Limited. They were valued by PricewaterhouseCoopers LLP in September 2020 at a price of £0.46 per share.
22
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
14 Creditors: amounts falling due within one year
Accruals and creditors
| 2021 £ 14,979 |
2020 £ 10,373 |
|---|---|
| 14,979 | 10,373 |
15a Analysis of net assets between funds (current year)
| Creditors Current asset investments Fixed Assets Net assets at 31 December 2021 C& J Clark Ltd Berenburg portfolio Net current assets CAF - CAF Cash Investments Debtors |
Unrestricted retained £ 38,914 - - - - - |
Unrestricted distributable £ 1 252,539 628,592 200,000 2,335,608 32,245 (14,979) |
Total funds £ 1 291,453 628,592 200,000 2,335,608 32,245 (14,979) |
|
|---|---|---|---|---|
| 38,914 | 3,434,006 | 3,472,920 |
15b Analysis of net assets between funds (prior year)
| Fixed Assets Creditors Unrestricted funds: General funds - distributable Investments C& J Clark Ltd Berenburg portfolio Net current assets CAF - CAF Cash Net assets at 31 December 2020 Movements in funds (current year) Total funds Total unrestricted funds Retained Current asset investments |
Restated At 1 January 2021 £ 2,233,385 241,101 |
Endowment £ - |
Unrestricted retained £ 241,101 - - - - |
Unrestricted distributable £ 133 1,564,639 571,647 30,444 76,895 (10,373) |
Total funds £ 133 - 1,805,740 571,647 30,444 76,895 (10,373) |
|---|---|---|---|---|---|
| - | 241,101 | 2,233,385 | 2,474,486 | ||
| Income and gains £ 2,533,928 - |
Expenditure and losses £ (100,878) - |
Investment revaluation £ (1,232,429) (202,187) |
At 31 December 2021 £ 3,434,006 38,914 |
||
| 2,474,486 | 2,533,928 | (100,878) | (1,434,616) | 3,472,920 | |
| 2,474,486 | 2,533,928 | (100,878) | (1,434,616) | 3,472,920 |
16a Movements in funds (current year)
Transfer - See Prior Year Adjustment (Note 17)
23
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
16b Movements in funds (prior year)
| Movements in funds (prior year) | ||||||
|---|---|---|---|---|---|---|
| Retained Endowment funds: Distributable Unrestricted funds: Total unrestricted funds Total funds |
At 1 January 2020 £ 1,467,975 |
Prior year adjustment £ (1,467,975) |
As restated £ - |
Income and gains £ - |
Expenditure and losses £ - |
Restated At 31 December 2020 £ - |
| 688,821 241,101 |
1,467,975 - |
2,156,796 241,101 |
154,937 - |
(78,348) - |
2,233,385 241,101 |
|
| 929,922 | 1,467,975 | 2,397,897 | 154,937 | (78,348) | 2,474,486 | |
| 2,397,897 | - | 2,397,897 | 154,937 | (78,348) | 2,474,486 |
24
The Stephen Clark Charitable Settlement 1965 Notes to the financial statements
For the year ended 31 December 2021
17 Prior Year Adjustment
During the year, the trustees revisited the nature of the assets gifted from the Nathan Fund. Previously, it was considered that the funds should be reflected in an endowment fund. Following legal advice, it was determined that the funds were not subject to restriction or endowment and therefore should have been reflected as general fund income
The comparatives have been restated to reflect all assets as unrestricted.
25