2023-04-05-accounts

Charity registration number 267172

THE BALCOMBE CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

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

THE BALCOMBE CHARITABLE TRUST

CONTENTS

	Page
Trustees' report	1 - 3
Statement of Trustees' responsibilities	4
Independent auditor's report	5 - 7
Statement of financial activities	8
Statement of financial position	9
Statement of cash flows	10
Notes to the financial statements	11 - 20

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2023

The Trustees present their annual report and financial statements for the year ended 5 April 2023.

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)".

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.

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.

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.

• 1 -

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

During the year the Trust committed donations to 38 different charitable organisations amounting in aggregate to £877,471. 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.

Achievements and performance

The Trust’s key financial performance indicator is the return on investments held. In 2022/23, this amounted to 3.06% compared with 2.42% 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 £877,471.

Grants were awarded to 38 charities, some for multiple projects. It was the first year of funding from the Trust for 11 new charities.

There are regular Trustees’ meetings, either in person or online. In addition, the Trustees remain in contact outside of those meetings and all respond swiftly to matters raised. Where appropriate, one or more of the Trustees visit projects or they arrange for professional assessors to inspect on their behalf. The Trust also liaises with other funders to discuss appropriate needs and support strategies in different areas.

During 2022/23, the Trust continued to partner with many charities with which it already had an association. New or increased support was made to services for refugees and the homeless. The Trust increased its funding of counselling and benefits advice delivered via food banks across the country. The Trustees were delighted to see that this line of Charitable investment produced very significant returns in terms of access to unclaimed government benefits for those most disadvantaged.

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

Financial statements

The Trust is an endowed charity with investable assets of approximately £38 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 15 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 being able to meet 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 -

THE BALCOMBE CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

Financial review

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

Incoming resources comprised entirely of investment income receivable of £1,156,081 (2022: £957,456). This is an increase of £198,625 in investment income receivable. No donations were received during the year (2022: £1,458,305).

Investment management costs in the year totalled £201,862 which is a £48,896 increase from the prior year. Grants payable in the year were £877,471, compared to £665,046 in 2022. Governance costs fell to £76,329 from £122,310 in the prior year due to a fall in staff costs.

Total net losses, both realised and unrealised, from the investments held by the Trust amounted to £3,350,875 as compared to a gain of £2,789,521 for the previous year.

The statement of financial position on page 9 shows the financial position of the Trust as at 5 April 2023.

Total assets less liabilities amounted to £39,369,710 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.

Plans for the future

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

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

..............................

Mrs P.M. Kreitman

Trustee Dated: .........................

• 3 -

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2023

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:

• 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;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

• 4 -

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 2023 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:

• give a true and fair view of the state of the charity’s affairs as at 5 April 2023 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; 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 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:

• 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

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

• 5 -

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.

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:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those that relate to the reporting framework (FRS 102 as applied in the Charities SORP and the Charities Act 20211) and the relevant legislation in the United Kingdom including employment, environmental and health and safety regulations.

• We understood how the charity is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including board meeting minutes and correspondence with regulatory bodies.

• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of legal and professional expenses and review of board meeting minutes.

• We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the revenue recognised.

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

• 6 -

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.

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.

• 7 -

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023

Unrestricted Endowment funds funds 2023 2023 Notes £ £ Income from: Donations 2 - - Investments 3 1,156,081 - Total income 1,156,081 - Expenditure on: Raising funds 4 98,686 141,558 Charitable activities Education 5 101,334 3,558 Environment 5 52,296 1,836 Health and welfare 5 767,815 26,961 Total charitable expenditure 921,445 32,355 Total expenditure 1,020,131 173,913 Net (losses)/gains on investments 12 - (3,350,875) Net (expenditure)/income for the year 135,950 (3,524,788) Other recognised gains and losses Other gains/(losses) 13 - 17,270 Net movement in funds 135,950 (3,507,518) Fund balances at 6 April 2022 2,920,169 39,821,109 Fund balances at 5 April 2023 3,056,119 36,313,591	Total Unrestricted Endowment funds funds 2023 2022 2022 £ £ £ - 1,458,305 - 1,156,081 957,456 - 1,156,081 2,415,761 - 240,244 80,415 107,076 104,892 85,194 4,009 54,132 43,306 2,038 794,776 623,471 29,338 953,800 751,971 35,385 1,194,044 832,386 142,461 (3,350,875) - 2,789,521 (3,388,838) 1,583,375 2,647,060 17,270 - 15,041 (3,371,568) 1,583,375 2,662,101 42,741,278 1,336,794 37,159,008 39,369,710 2,920,169 39,821,109	Total 2022 £ 1,458,305 957,456
		2,415,761
		187,491
		89,203 45,344 652,809
		787,356
		974,847
		2,789,521
		4,230,435 15,041
		4,245,476 38,495,802
		42,741,278

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

All income and expenditure derive from continuing activities.

• 8 -

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2023

Notes Fixed assets Investments 15 Current assets Debtors 16 Cash at bank Current liabilities Creditors 17 Net current assets Total assets less current liabilities Capital funds Endowment funds 19 Income funds Unrestricted funds	£ - 1,635,917 1,635,917 81,091	2023 £ 37,814,884 1,554,826 39,369,710 36,313,591 3,056,119 39,369,710	£ 2,202 3,384,142 3,386,344 48,647	2022 £ 39,403,581 3,337,697
				42,741,278
				39,821,109 2,920,169
				42,741,278

The financial statements were approved by the Trustees and authorised for issue on ......................... and are signed on its behalf by:

.............................. .............................. Mr R.A. Kreitman Mrs P.M. Kreitman Trustee Trustee

• 9 -

THE BALCOMBE CHARITABLE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2023

			2023	2022
	Notes	£	£	£	£
Cash flows from operating activities
Cash (absorbed by)/generated from	22
operations			(1,142,127)		468,017
Investing activities
Purchase of investments		(5,489,768)		(4,949,509)
Proceeds from disposal of investments		3,727,589		4,500,683
Investment income received		1,156,081		957,456
Net cash (used in)/generated from
investing activities			(606,098)		508,630
Net (decrease)/increase in cash and cash
equivalents			(1,748,225)		976,647
Cash and cash equivalents at beginning of year			3,384,142		2,407,495
Cash and cash equivalents at end of year			1,635,917		3,384,142

• 10 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

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 19). 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.

• 11 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

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.

• 12 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

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

		Total	Unrestricted
			funds
		2023	2022
		£	£
	Dennis Curry Charitable Trust T49	-	1,458,305
3	Investments
		Unrestricted	Unrestricted
		funds	funds
		2023	2022
		£	£
	Income from listed investments	1,156,081	957,456

• 13 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

4 Raising funds

Unrestricted Endowment funds funds £ £ Foreign tax deducted 38,382 - Investment management fees 60,304 141,558 98,686 141,558 For the year ended 5 April 2022 Foreign tax deducted 34,525 - Investment management fees 45,890 107,076	Total 2023 £ 38,382 201,862 240,244	Total 2022 £ 34,525 152,966
		187,491
		34,525 152,966

5 Charitable activities

Education Environment Health and welfare £ £ £ Grant funding of activities (note 6) 96,500 49,800 731,171 Governance costs (note 7) 8,392 4,332 63,605 104,892 54,132 794,776	Total 2023 £ 877,471 76,329 953,800	Total 2022 £ 665,046 122,310
		787,356

• 14 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

6 Grants payable

	**Education **	Environment	Health and	Total	Total
			welfare	2023	2022
	£	£	£	£	£
YMCA Burton & District	-	-	-	-	17,346
The Jericho Foundation	20,000	-	-	20,000	20,000
Prison Radio Association	34,000	-	-	34,000	-
Trinity Winchester	-	-	-	-	10,000
Coram Fields	22,500	-	-	22,500	20,000
Money for Madagascar	-	-	30,727	30,727	36,400
Zoological Society of London	-	22,300	-	22,300	38,300
Durell Wildlife Conservation Trust	-	25,000	-	25,000	-
The Halo Project	-	-	20,000	20,000	20,000
The 999 Club & Lady Florence Trust	-	-	26,000	26,000	26,000
Medical Justice	-	-	25,000	25,000	25,000
Bone Cancer Research Trust	-	-	25,000	25,000	10,000
Assist Sheffield	-	-	15,000	15,000	20,000
The British Liver Trust	-	-	15,000	15,000	15,000
The Trussel Trust	-	-	290,000	290,000	200,000
The British Shalom - Salaam Trust	5,000	-	-	5,000	5,000
The Royal Marines Charity	-	-	29,000	29,000	29,000
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
Lewisham Foodbank	-	-	25,000	25,000	25,000
Housing Justice	-	-	16,500	16,500	10,000
In2Out	-	-	25,000	25,000	25,000
Refugee Community Kitchen	-	-	25,000	25,000	25,000
Bloody Good Period	-	-	15,000	15,000	15,000
Medical Aid for Palestinians	-	-	16,000	16,000	10,000
Asylum Matters	-	-	10,000	10,000	10,000
Asylum Support Appeals Project	-	-	-	-	10,000
The BACA Charity	-	-	5,000	5,000	5,000
The Vavengers	-	-	12,000	12,000	5,000
Friends of John Ball School	-	-	-	-	1,500
Crossness Engines Trust	-	-	-	-	1,500
Birth Companions	-	-	5,000	5,000	-
The Blackheath Society	-	-	8,500	8,500	-
Crisis UK	-	-	15,000	15,000	-
Doctors in Distress	-	-	9,100	9,100	-
Dorothy House	-	-	3,000	3,000	-
Greater Manchester Immigration Aid
Unit	-	-	25,000	25,000	-
The Happy Baby Community	-	-	7,000	7,000	-
Langdale/Ambleside Mountain Rescue
Team	-	-	10,000	10,000	-

• 15 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

6 Grants payable

Grants payable Nunhead's Voice Limited Passage 2000 Sex Education Forum Venice in Peril Fund CIO Read - The Reading Agency Governance costs Staff costs Audit fees Legal and professional fees Travelling expenses Irrecoverable VAT IT Costs Sundry expenses	- - - - 15,000 96,500	- - - 2,500 - 49,800	3,344 5,000 15,000 - -	(Continued) 3,344 - 5,000 - 15,000 - 2,500 - 15,000 - 877,471 665,046 2023 2022 £ £ 23,551 66,674 9,000 8,000 28,449 28,892 782 237 7,814 13,133 5,775 4,850 958 524 76,329 122,310
			731,171

7 Governance costs

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 £3,216 (2022: £nil) 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 £16,135 (2021: £14,467).

9 Employees

The average monthly number of employees during the year was:

Administration Employment costs Wages and salaries Other pension costs	2023 Number 1 2023 £ 22,812 739 23,551	2022 Number 1
		2022 £ 66,454 220
		66,674

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

• 16 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2023

10 Auditor's remuneration

Fees payable to the Trust's auditor and associates: Audit of the Trust's annual accounts Non-audit services Fees payable to the Trust's auditor for all other non-audit services	2023 £ 9,000 9,375	2022 £ 8,000
		10,375

11 Taxation

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

12 Net gains/(losses) on investments

		Endowment	Endowment
		funds	funds
		2023	2022
		£	£
	Revaluation of investments	(2,934,665)	2,591,621
	Gain/(loss) on sale of investments	(416,210)	197,900
		(3,350,875)	2,789,521
13	Other gains or losses
		Endowment	Endowment
		funds	funds
		2023	2022
		£	£
	Foreign exchange (losses)/gains	(17,270)	(15,041)
14	Financial instruments	2023	2022
		£	£
	Carrying amount of financial assets
	Instruments measured at fair value through profit or loss	37,814,884	39,403,581

• 17 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2023

15 Fixed asset investments

	Listed
	investments
	£
Cost or valuation
At 6 April 2022	39,403,581
Additions	5,489,768
Valuation changes	(2,934,665)
Disposals	(4,143,800)
At 5 April 2023	37,814,884
Carrying amount
At 5 April 2023	37,814,884
At 5 April 2022	39,403,581

Fixed asset investments revalued

The historical cost of the fixed asset investments held at the year end is £35,547,162 (2022: £33,430,202).

16 Debtors

Amounts falling due within one year: Other receivables 17 Creditors Amounts falling due within one year: Accruals and deferred income 18 Analysis of net assets between funds Unrestricted Income Fund Expendable Endowment Fund 2023 2023 £ £ Fund balances at 5 April 2023 are represented by: Investments 1,501,293 36,313,591 Current assets/(liabilities) 1,554,826 - 3,056,119 36,313,591	Total Unrestricted Income Fund 2023 2022 £ £ 37,814,884 - 1,554,826 2,920,169 39,369,710 2,920,169	Total Unrestricted Income Fund 2023 2022 £ £ 37,814,884 - 1,554,826 2,920,169 39,369,710 2,920,169	2023 £ - 2023 £ 81,091 Expendable Endowment Fund 2022 £ 39,403,581 417,528 39,821,109	2022 £ 2,202
				2022 £ 48,647
				Total 2022 £ 39,403,581 3,337,697
		2,920,169		42,741,278

• 18 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

19 Endowment funds

Endowment funds
Balance at 6 April 2021 £ Expendable endowments Expendable restricted funds 37,159,008 37,159,008	Incoming resources £ - -	Movement in funds Resources expended Investment gains/(losses) Foreign exchange gains/(losses) £ £ £ (142,461) 2,789,521 15,041 (142,461) 2,789,521 15,041	Balance at 5 April 2022 £ 39,821,109 39,821,109	Incoming resources £ - -	Movement in funds Resources expended Investment gains/(losses) Foreign exchange gains/(losses) £ £ £ (173,913) (3,350,875) 17,270 (173,913) (3,350,875) 17,270	Balance at 5 April 2023 £ 36,313,591
						36,313,591

The Trust's expendable endowment fund is attributable to the original amount settled on the Trust, subsequent settlements and the accumulated realised and unrealised gains (less losses) thereon. Under the terms of the Deed of Settlement, the endowment is expendable at the discretion of the Trustees on expenditure which meets the charitable objectives of the Trust.

• 19 -

THE BALCOMBE CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

20 Financial commitments, guarantees and contingent liabilities

At the year end, the Trust had made commitments to pay a further £260,000 (2022: £255,027) 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, £165,000 (2022: £214,027) would be payable within one year, while £95,000 (2022: £41,000) 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	2023	2022
		£	£
	(Deficit)/surpus for the year	(3,388,838)	4,230,435
	Adjustments for:
	Investment income recognised in statement of financial activities	(1,156,081)	(957,456)
	Foreign exchange differences	17,270	15,041
	Loss/(gain) on disposal of investments	416,209	(197,899)
	Fair value gains and losses on investments	2,934,666	(2,591,622)
	Movements in working capital:
	Decrease/(increase) in trade and other receivables	2,202	(2,202)
	(Decrease) in creditors	32,445	(28,280)
	Cash (absorbed by)/generated from operations	(1,142,127)	468,017

• 20 -