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2022-04-05-accounts

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

Charity Registration No. 267172

THE BALCOMBE CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr R.A. Kreitman
Mrs P.M. Kreitman
Mr E.N.W. Brown
Charity number 267172
Principal address Devonshire House
1 Devonshire Street
London
W1W 5DR
Auditor Citroen Wells
Chartered Accountants
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers Barclays Bank Plc
1 Churchill Place
London
EC14 5HP
Investment advisors Whitley Asset Management Limited
116 Princedale Road
London
W11 4NH
Vermeer Investment Management Limited
130 Jermyn Street
London
SW1Y 4UR

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12 - 21

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE 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 financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Trustees’ short term objectives are to ensure that all grant commitments are met out of investment income. In the long term the Trustees hope to make further grants as cash flow allows.

The Trustees’ grant making policy is to make grants to charities operating in the areas of health and welfare, environment and education. The Trustees assess the need of the recipient charity in terms of available funding and ensure various reporting requirements are put in place to ensure the grants are being used for their intended purpose. The Trustees closely monitor the use of funds by all recipient charities.

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 aims and objectives and in planning future activities and setting the grant making policy for the year.

There have been no changes in the policies adopted by the Trust during the year.

The Trust's objectives are met in such proportion and manner as the board of Trustees shall in their absolute discretion, from time to time, determine.

The Trustees hold the capital and income of the Trust upon trust to pay or apply the whole thereof to or towards or for the benefit or furtherance of such charitable purposes, charitable institutions or charitable foundations as they, from time to time, decide.

During the year the Trust committed donations to 30 different charitable organisations amounting in aggregate to £665,046. It is the usual policy of the Trustees to only make awards from the accumulated unrestricted fund.

Please note that the Trust conducts its own research with the help of an independent assessor and makes direct approach to charities of interest. The Trust does not accept unsolicited applications and will not acknowledge any received.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Achievements and performance

We are pleased to report that in December 2021, the Trust received an unexpected augmentation to its funds in the amount of £1,458,305.

This capital injection was occasioned by the termination of the Dennis Curry Charitable Trust T49 and the decision of one of its trustees, Patricia Edmond, that there was very substantial alignment between her own charitable objectives and those of the Trust.

This money was given on the understanding that the trustees have sole discretion to which charitable purposes it may be applied.

We are extremely grateful to Mrs Edmond for this huge vote of confidence in our governance and decision making.

The Trust’s key financial performance indicator is the return on investments held. In 2021/22, this amounted to 2.42% compared with 2.36% in the prior year. The Trustees monitor returns on investments closely and discuss strategies with their investment managers as required.

During the year, the Trustees made grant commitments totalling £665,046.

There are regular Trustees’ meetings, either in person or online, to discuss the grants made and future grant strategy and planning. During 2021/22, the Trust concentrated on continuing to support charities with which it already had an association in the most appropriate ways through an unprecedented challenge.

This included:

In addition, the Trustees decided to allocate funds to make major grants to food aid and mental health projects in the UK.

As previously decided, no unsolicited proposals for support were accepted although the Trustees continued to conduct their own research and approach charities with whom they were interested in supporting.

In total 30 grants were awarded, 15 of them to new charities.

Financial statements

The Trust is an endowed charity with investable assets of approximately £39 million. The Trust's portfolios of quoted securities are managed by Vermeer Investment Management Limited and Whitley Asset Management Limited. All quoted securities are held on behalf of the Trustees by the appointed custodians of the investment managers in pooled investment accounts. The investment portfolio managed by Whitley Asset Management Limited is under the custodian of Multrees Investor Services Limited and that managed by Vermeer Investment Management Limited is under its own custody. Changes in the Trust's investments during the year are shown in note 14 on page 18.

Whilst the Trustees are not prevented from making grants from the expendable endowment fund, they have consistently awarded grants within the unrestricted income fund and have also built up a surplus over the years. This has allowed the Trust to maintain its level of funding during the financial recession. Although some of the grants awarded last for more than one year, the Trustees are confident in meeting their financial commitments.

Costs are well controlled and remain relatively stable from year to year. They fall into four main areas:

  1. Investment fees

  2. Governance — including accountancy and legal fees

  3. Office management and support

  4. Travel expenses for meetings and project inspections

  5. 2 -

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Financial review

Details of income and expenditure for the year are shown in the statement of financial activities on page 8.

Incoming resources comprised a one off donation of £1.46 million from the Dennis Curry Charitable Trust T49 and also investment income receivable of £957,456, an increase of £58,103 when compared to the previous year.

The costs of managing and administering the Trust were £309,801 for the year compared to £245,863 for the previous year, mostly because of an increase in staff costs.

Total net gains, both realised and unrealised, from the investments held by the Trust amounted to £2,789,521 as compared to £6,552,094 for the previous year.

The statement of financial position on page 9 shows the financial position of the Trust as at 5 April 2022.

Total assets less liabilities amounted to £42,741,278 which are represented by the accumulated balances on both the expendable endowment and unrestricted income funds. The net assets of the Trust's expendable endowment fund are held to generate sustainable income in order to support the Trust's activities and to meet a proportion of the management and administration costs of the Trust. The net assets of the unrestricted income fund are held in order to meet the ongoing overheads and administrative expenses and also to be applied towards the Trust's charitable objectives.

The Trustees have reviewed the unrestricted reserves of the Trust and consider it prudent that these funds should be maintained and are sufficient to cover the management and administration costs for at least the next three years, and its ongoing conditional grant commitments.

There are currently no major commitments and the position together with the level of reserves is regularly reviewed by the Trustees.

The Trustees have the power to invest in such assets as they see fit.

The investment objective is to achieve real returns ahead of inflation.

The Trustees regularly review the major risks which the Trust faces and believe that maintaining the free reserves at the levels stated below, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the face of adverse conditions. The Trustees have also examined other operational risks which they face and confirm they have established systems to mitigate any significant risks.

Plans for future periods

The Trustees plan to continue grant-making activities for the foreseeable future.

Structure, governance and management

The Balcombe Charitable Trust is a registered charity and was established under a Deed of Settlement dated 27 February 1974. It is governed by this Deed of Settlement and by the Charities Act 2011.

The Trustees who served during the year were: Mr R.A. Kreitman Mrs P.M. Kreitman Mr E.N.W. Brown

The statutory power of appointing new or additional Trustees is vested in the settlor, Mr. R.A. Kreitman, during his life. Additional Trustees may be appointed at any time but the total number of the Trustees shall be not more than four.

The Trust's day to day activities are administered by the Trust, and it normally employs one person to provide administrative support. Its Trustees alone are responsible for the consideration and authorisation of the charitable donations made by the Trust.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

The Trustees' report was approved by the Board of Trustees.

.............................. Mrs P.M. Kreitman Trustee 19/12/2022 Date: .............................................

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BALCOMBE CHARITABLE TRUST

Opinion

We have audited the financial statements of The Balcombe Charitable Trust (the ‘Trust’) for the year ended 5 April 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust 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 Trust’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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BALCOMBE CHARITABLE TRUST

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 Trust’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE BALCOMBE CHARITABLE TRUST

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

20/12/2022

Citroen Wells .........................

Chartered Accountants Statutory Auditor Devonshire House 1 Devonshire Street London W1W 5DR

Citroen Wells is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022

FOR THE YEAR ENDED 5 APRIL 2022 FOR THE YEAR ENDED 5 APRIL 2022 FOR THE YEAR ENDED 5 APRIL 2022 FOR THE YEAR ENDED 5 APRIL 2022
Unrestricted Endowment
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
2
1,458,305
-
Investments
3
957,456
-
Total income
2,415,761
-
Expenditure on:
Raising funds
4
80,415
107,076
Charitable activities
Education
5
85,194
4,009
Environment
5
43,306
2,038
Health and welfare
5
623,471
29,338
Total charitable expenditure
751,971
35,385
Total expenditure
832,386
142,461
Net gains on
investments
11
-
2,789,521
Net income for the year
1,583,375
2,647,060
Other recognised gains and losses
Other gains or losses
13
-
15,041
Net movement in funds
1,583,375
2,662,101
Fund balances at 6 April 2021
1,336,794
37,159,008
Fund balances at 5 April
2022
2,920,169
39,821,109		 Total Unrestricted Endowment
funds
funds
2022
2021
2021
£
£
£
1,458,305
-
-
957,456
899,353
-
2,415,761
899,353
-
187,491
70,951
104,929
89,203
106,874
5,187
45,344
27,252
1,323
652,809
486,010
23,587
787,356
620,136
30,097
974,847
691,087
135,026
2,789,521
-
6,552,094
4,230,435
208,266
6,417,068
15,041
-
(160,705)
4,245,476
208,266
6,256,363
38,495,802
1,128,528
30,902,645
42,741,278
1,336,794
37,159,008		 Total
2021
£
-
899,353		 )
899,353
175,880
112,061
28,575
509,597
650,233
826,113
6,552,094
6,625,334
(160,705
6,464,629
32,031,173
38,495,802
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.

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

All income and expenditure derive from continuing activities.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2022

2022 2021
Notes £ £ £ £
Fixed assets
Investments 14 39,403,581 36,165,235
Current assets
Debtors 16 2,202 -
Cash at bank 3,384,142 2,407,495
3,386,344 2,407,495
Current liabilities
Creditors 17 48,647 76,928
Net current assets 3,337,697 2,330,567
Total assets less current liabilities 42,741,278 38,495,802
Capital funds
Endowment funds 18 39,821,109 37,159,008
Income funds
Unrestricted funds 2,920,169 1,336,794
42,741,278 38,495,802
The financial statements were approved by the Trustees and authorised for issue on ......................... and are
19/12/2022
signed on its behalf by:
.............................. ..............................
Mr R.A. Kreitman Mrs P.M. Kreitman
Trustee Trustee

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2022

2022 2021 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from/(absorbed by) 22
operations 468,017 (995,690)
Investing activities
Purchase of investments (4,949,509) (16,284,705)
Proceeds on disposal of investments 4,500,683 8,406,859
Investment income received 957,456 899,353
Net cash generated from/(used in)
investing activities 508,630 (6,978,493)
Financing activities
Settlement of derivatives - 34,839
Net cash (used in)/generated from
financing activities - 34,839
Net increase/(decrease) in cash and cash
equivalents 976,647 (7,939,344)
Cash and cash equivalents at beginning of year 2,407,495 10,346,839
Cash and cash equivalents at end of year 3,384,142 2,407,495

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Charity information

The Balcombe Charitable Trust is a registered, unincorporated charity. The correspondence address of the Trust is Devonshire House, 1 Devonshire Street, London W1W 5DR.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but 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 on the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. Fixed asset investments consist of quoted shares, traded bonds and similar investments. These are measured initially at cost and subsequently at fair value based on published market prices. The principal accounting policies adopted are set out below.

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 value of assets and liabilities within the next reporting period.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives and to meet ongoing overheads and administrative expenses.

The restricted capital fund comprises an expendable endowment fund (see note 17). The income generated by the funds held on this endowment are unrestricted and are, therefore, included as part of the unrestricted income funds for the year.

1.4 Income

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Investment income from interest on deposits and listed loan stocks is accounted for an accruals basis. Income from other investments is accounted for when received.

Voluntary donations are recognised on receipt.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are fulfilled.

1.6 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.

1.7 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the Trust becomes party to the contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts 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 trade and other receivables 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 trade and other payables, 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.

1.8 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.9 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

1.10 Investments

Investments are a form of basic financial instruments and are initially recognised at their transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price.

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

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.11 Irrecoverable VAT

Irrecoverable VAT is shown separately in the notes to the statement of financial activities for the convenience of the Trustees in monitoring expenses.

2 Donations and legacies

Unrestricted Total
funds
2022 2021
£ £
Donations and gifts 1,458,305 -
3 Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Income from listed investments 957,456 899,353

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

4 Raising funds

Unrestricted Endowment
Total
funds
funds
2022
£
£
£
Foreign tax deducted
34,525
-
34,525
Investment management fees
45,890
107,076
152,966
80,415
107,076
187,491
For the year ended 5 April 2021
Foreign tax deducted
25,981
-
Investment management fees
44,907
104,929
Charitable activities
Education
Environment
Health and
welfare
Total
2022
£
£
£
£
Grant funding of activities (note 6)
75,346
38,300
551,400
665,046
Governance costs (note 7)
13,857
7,044
101,409
122,310
89,203
45,344
652,809
787,356		 Total
2021
£
25,981
149,836
175,880
25,981
149,836
Total
2021
£
580,250
69,983
650,233

5 Charitable activities

During the year, the Trustees decided to award an employee a £30,000 ex-gratia payment on the occasion of their retirement. This is included under staff costs within governance costs.

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

6 Grants payable

Education Environment
Health and
welfare
Grants to institutions:
YMCA Burton & District
17,346
-
-
The Jericho Foundation
20,000
-
-
Prison Radio Association
-
-
-
Trinity Winchester
10,000
-
-
Coram Fields
20,000
-
-
Money for Madagascar
-
-
36,400
Zoological Society of London
-
38,300
-
Durell Wildlife Conservation Trust
-
-
-
The Halo Project
-
-
20,000
The 999 Club & Lady Florence Trust
-
-
26,000
Medical Justice
-
-
25,000
Bone Cancer Research Trust
-
-
10,000
Assist Sheffield
-
-
20,000
The British Liver Trust
-
-
15,000
The Trussel Trust
-
-
200,000
The British Shalom - Salaam Trust
5,000
-
-
CPSG (Conservation Planning
Specialist Group)
-
-
-
Celia Hammond Animal Trust
-
-
-
MIND (The National Association for
Mental Health)
-
-
-
The Royal Marines Charity
-
-
29,000
Freedom from Torture
-
-
-
St John of Jerusalem Eye Hospital
Group
-
-
-
International Disaster And Emergency
Aid with Long-Term Support
-
-
10,000
Demelza House Children's Hospice
-
-
10,000
Greenwich and Bexley Community
Hospice
-
-
10,000
London School of Hygeine and
Tropical Medicine
-
-
-
Lewisham Foodbank
-
-
25,000
Housing Justice
-
-
10,000
In2Out
-
-
25,000
Refugee Community Kitchen
-
-
25,000
Revitalise Respite Holidays
-
-
-
Liverpool School of Tropical Medicine
-
-
-
Bloody Good Period
-
-
15,000
72,346
38,300
511,400		 Total
2022
17,346
20,000
-
10,000
20,000
36,400
38,300
-
20,000
26,000
25,000
10,000
20,000
15,000
200,000
5,000
-
-
-
29,000
-
-
10,000
10,000
10,000
-
25,000
10,000
25,000
25,000
-
-
15,000
622,046		 Total
2021
6,000
20,000
10,000
17,500
35,000
21,750
-
20,000
-
-
-
20,000
-
-
200,000
3,000
5,500
3,000
20,000
16,000
3,000
20,000
-
10,000
10,000
5,000
25,000
10,000
25,000
25,000
30,000
3,500
-
564,250

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

6
Grants payable
(continued)
Medical Aid for Palestinians
Inspire! - New Hackney EBPL
Quaker Social Action
Asylum Matters
Asylum Support Appeals Project
The BACA Charity
The Vavengers
Friends of John Ball School
Crossness Engines Trust
7
Governance costs
Staff costs
Audit fees
Legal and professional fees
Travelling expenses
Irrecoverable VAT
IT Costs
Sundry expenses		 72,346
-
-
-
-
-
-
-
1,500
1,500
75,346		 38,300
-
-
-
-
-
-
-
-
-
38,300		 511,400
10,000
-
-
10,000
10,000
5,000
5,000
-
-
551,400		 (Continued)
622,046
564,250
10,000
-
-
8,500
-
7,500
10,000
-
10,000
-
5,000
-
5,000
-
1,500
-
1,500
-
665,046
580,250
2022
2021
£
£
66,674
24,480
8,000
7,980
28,892
27,380
237
414
13,133
7,202
4,850
2,094
524
433
122,310
69,983		 (Continued)
622,046
564,250
10,000
-
-
8,500
-
7,500
10,000
-
10,000
-
5,000
-
5,000
-
1,500
-
1,500
-
665,046
580,250
2022
2021
£
£
66,674
24,480
8,000
7,980
28,892
27,380
237
414
13,133
7,202
4,850
2,094
524
433
122,310
69,983		 (Continued)
622,046
564,250
10,000
-
-
8,500
-
7,500
10,000
-
10,000
-
5,000
-
5,000
-
1,500
-
1,500
-
665,046
580,250
2022
2021
£
£
66,674
24,480
8,000
7,980
28,892
27,380
237
414
13,133
7,202
4,850
2,094
524
433
122,310
69,983
580,250
2021
£
24,480
7,980
27,380
414
7,202
2,094
433
69,983

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year. One of the Trustees, Mrs P.M. Kreitman, was reimbursed £nil (2021: £1,991) for travelling and other expenses during the year.

The Trustee, Mr E.N.W. Brown, is also a consultant with BDB Pitmans LLP ("BDB"), a firm of solicitors. During the year the Trust paid BDB legal fees amounting to £14,467 (2021: £16,460).

9 Auditors' remuneration

The analysis of auditor's remuneration is as follows:

Fees payable to the Trust's auditor for the audit of the annual accounts
Fees payable to the Trust's auditor for all other non-audit services		 2022
£
8,000
10,375		 2021
£
7,980
9,520

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

10 Employees

The average monthly number of employees during the year was:

Administration
Employment costs
Wages and salaries
Other pension costs		 2022
Number
1
2022
£
66,454
220
66,674		 2021
Number
1
2021
£
24,480
-
24,480

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Endowment Endowment
funds funds
2022 2021
£ £
Revaluation of investments 2,591,620 6,934,302
Gain/(loss) on sale of investments 197,901 (382,208)
2,789,521 6,552,094

12 Taxation

No liability arises as the Trust is a registered charity and is, therefore, exempt from UK taxation on the income arising from its normal activities.

13 Other gains or losses

Other gains or losses
Endowment Endowment
funds funds
2022 2021
£ £
Foreign exchange (losses)/gains (15,041) 160,705

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

14 Fixed asset investments

Listed
investments
£
Cost or valuation
At 6 April 2021 36,165,235
Additions 4,949,509
Valuation changes 2,591,620
Disposals (4,302,783)
At 5 April 2022 39,403,581
Carrying amount
At 5 April 2022 39,403,581
At 5 April 2021 36,165,235

Fixed asset investments revalued

The historical cost of the fixed asset investments held at the year end is £33,430,020 (2021: £32,132,677).

15
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
16
Debtors
Amounts falling due within one year:
Other receivables
17
Creditors
Amounts falling due within one year:
Other payables
Accruals and deferred income		 2022
£
39,403,581
2022
£
2,202
2022
£
66
48,581
48,647		 2021
£
36,165,235
2021
£
-
2021
£
-
76,928
76,928

Docusign En¥ÈlopÈ ID". A4956DF1-11AB-442E-8EBE-B5B89DFD8980

DocuSign Envelope ID: A4956DF1-11AB-442E-8EBE-B5B89DFD8980

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

19
Analysis of net assets between funds
Unrestricted
Income
Fund
Expendable
Endowment
Fund
2022
2022
£
£
Fund balances at 5
April 2022 are
represented by:
Investments
-
39,403,581
Current assets/(liabilities)
2,920,169
417,528
2,920,169
39,821,109		 Total
Unrestricted
Income Fund
Expendable
Endowment
Fund
2022
2021
2021
£
£
£
39,403,581
-
36,165,235
3,337,697
1,336,794
993,773
42,741,278
1,336,794
37,159,008		 Total
2021
£
36,165,235
2,330,567
38,495,802

20 Financial commitments, guarantees and contingent liabilities

At the year end, the Trust had made commitments to pay a further £255,027 (2021: £280,000) in grants to certain charities but subject to specific future conditions being satisfied by those charities. As there is uncertainty as to whether those conditions will be satisfied, these future commitments have not been provided for in these financial statements. Of the total amount, £214,027 (2021: £135,000) would be payable within one year, while £41,000 (2021: £145,000) would be payable in more than one year.

21 Related party transactions

The only related party transactions during the current and comparative years have been disclosed in note 8.

22
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Foreign exchange differences
(Gain)/loss on disposal of investments
Fair value gains and losses on investments
Movements in working capital:
(Increase) in trade and other receivables
(Decrease) in creditors
Cash generated from/(absorbed by) operations		 2022
£
4,230,435
(957,456)
15,041
(197,901)
(2,591,620)
(2,202)
(28,280)
468,017		 2021
£
6,625,334
(899,353)
(160,705)
382,208
(6,934,302)
-
(8,872)
(995,690)