Charity number: 268066
THE FARTHING TRUST
UNAUDITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
THE FARTHING TRUST
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 - 25 |
THE FARTHING TRUST
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2022
| Trustees | Mrs J Martin |
|---|---|
| Mrs A White | |
| Mr J J Martin | |
| Ms E Bell | |
| Charity registered number 268066 Principal office PO Box 277 Cambridge CB7 9DE Accountants Whitings LLP Greenwood House Greenwood Court Skyliner Way Bury St Edmunds Suffolk IP32 7GY Bankers Lloyds Bank Plc Minister Place Ely Cambridge CB7 4EN Solicitors HCR Law 50 - 60 Station Road Cambridge CB1 2JH |
Page 1
THE FARTHING TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2022
The Trustees present their annual report together with the financial statements of the Charity for the year ended 5 April 2022.
Objectives and activities
a. Policies and objectives
The Charity was formed as a vehicle to meet charitable causes in any area of the world. Although all manner of charitable causes are supported, the main beneficiaries are in the areas of education, health and human rights and the reconciliation/promotion of religious or racial harmony/equality/diversity, as well as the relief of those in need.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Activities undertaken to achieve objectives
The activities for the year are set out in the attached financial statements. The Trustees have reviewed each grant payment during the year in conjunction with the Charity Commission guidance on Public Benefit. Many grant payments are deemed to have been made to institutions or individuals that fulfil more than one charitable purpose.
c. Grant donation making policies
Some of the grants and donations awarded during the year are to individuals and organisations that are known or have become known to the Trustees personally or through their acquaintances. Smaller grants and donations have to be agreed by at least two Trustees, whilst larger payments must be approved by all Trustees. Other applications received are considered carefully by the Trustees, with references being sought where considered necessary in order to verify the nature of the application. There are no financial or geographical restrictions placed on grant applicants.
Page 2
THE FARTHING TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Achievements and performance
a. Main achievements of the Charity
During the year, the Charity received donations and gifts of £26,784 (2021 - £55,550) and investment income of £29,355 (2021 - £180,464). Grants payable during the year amounts to £342,384 (2021 - £162,288) with support and governance costs of £6,321 (2021 - £6,765). Outgoings on investment properties was £1,707 (2021 - £27,936) and costs for investment advisers and other charges was £9,854 (2021 - £8,275), leaving net expenditure of £304,126 (2021 - net income of £30,750) before net gains on investments of £81,505 (2021 - £1,341,371).
Once again, numerous individual grant payments were made during the year and the nature of these payments is further explained in note 6 to the Financial Statements.
b. Investment policy and performance
The Charity's investments are chosen based on ethical considerations, as well as being invested with the intention of producing a balance of growth and income.
An area of land in Littleport, which the Charity had a 23% interest in, was sold for development during 2020. The Charity will receive £2,408,688 in total, part of which will not be received until 2023, 2025 and 2027. The delayed consideration has been included within other debtors (see note 13).
Further potential land sales are being negotiated, which will be reflected in the accounts for 2022/23 or future accounts, depending on the timing of the transactions.
The Trustees undertook a full review of the Charity's portfolio of investment land and property and these accounts reflect any changes to valuations deemed appropriate.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
As at 5 April 2022 the Charity has free reserves (unrestricted funds excluding investments and debtors due outside one year) of £1,015,335 (2021 - £849,314).
The listed investments and investment properties held by the Charity are structured so as to produce income available to be drawn to further the charitable objects. The programme related social investments are structured to further the charitable aims themselves and are not primarily used to produce an income for the Charity.
At the end of the year, the Charity has net assets of £5,286,391 compared with £5,509,012 at the end of the previous year.
Page 3
THE FARTHING TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Structure, governance and management
a. Constitution
The Farthing Trust is unincorporated and was formed by a Trust deed, dated 24 June 1974.
The Trustees who served during the year were:
Mrs J Martin Mrs A White Mr J J Martin Ms E Bell
b. Methods of appointment or election of Trustees
The Trustees are recruited and appointed by the Board of Trustees and are not subject to periodical re-election.
c. Organisational structure and decision-making policies
The Trustees set out the general policy of the Charity. The day-to-day affairs of the Charity are run by Mrs A White, with responsibility for financial investments resting with Ms E Bell, investment assets with Mr J Martin and property with Mrs J Martin.
d. Related party relationships
The Trustees are also shareholders in J H Martin & Sons (Littleport) Limited. Related party transactions during the year are detailed in note 20.
Page 4
THE FARTHING TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022
Statement of Trustees' responsibilities
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 & 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) 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 business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Mrs A White Trustee Date: 1 December 2022
Page 5
THE FARTHING TRUST
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 5 APRIL 2022
Independent examiner's report to the Trustees of The Farthing Trust ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 5 April 2022.
Responsibilities and basis of report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
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. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated: 1 December 2022
Jonathan Moore FCCA
Whitings LLP Greenwood House Greenwood Court Skyliner Way Bury St Edmunds Suffolk IP32 7GY
Page 6
THE FARTHING TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022
| Note Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Raising funds 5 Charitable activities 7 Total expenditure Net (expenditure)/income before net gains on investments Net gains on investments Net (expenditure)/income Transfers between funds 16 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward 16 |
Unrestricted funds 2022 £ 22,504 29,355 51,859 11,561 344,685 356,246 (304,387) 81,505 (222,882) 261 (222,621) 5,509,012 (222,621) 5,286,391 |
Restricted funds 2022 £ 4,280 - 4,280 - 4,019 4,019 261 - 261 (261) - - - - |
Total funds 2022 £ 26,784 29,355 56,139 11,561 348,704 360,265 (304,126) 81,505 (222,621) - (222,621) 5,509,012 (222,621) 5,286,391 |
Total funds 2021 £ 55,550 180,464 |
|---|---|---|---|---|
| 236,014 | ||||
| 36,211 169,053 |
||||
| 205,264 | ||||
| 30,750 1,341,371 |
||||
| 1,372,121 - |
||||
| 1,372,121 | ||||
| 4,136,891 1,372,121 |
||||
| 5,509,012 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 9 to 25 form part of these financial statements.
Page 7
THE FARTHING TRUST
BALANCE SHEET AS AT 5 APRIL 2022
| Note Fixed assets Investments 11 Social investments 12 Investment property 10 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
1,403,448 547,759 1,951,207 (3,240) |
2022 £ 1,041,084 204,840 2,092,500 3,338,424 1,947,967 5,286,391 - 5,286,391 - 5,286,391 5,286,391 |
1,400,058 873,825 2,273,883 (7,621) |
2021 £ 1,039,317 208,933 2,012,500 3,260,750 2,266,262 5,527,012 (18,000) 5,509,012 - 5,509,012 5,509,012 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Mrs A White
Trustee Date: 1 December 2022
The notes on pages 9 to 25 form part of these financial statements.
Page 8
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1. General information
The Farthing Trust is an unincorporated charity, registered in England. The registered address is PO Box 277, Cambridge, CB7 9DE. The charity registration number is 268066.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Farthing Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
There were no significant estimates or judgements made by the Trustees in preparing these financial statements other than producing the valuation of investment properties and the Trustees valuation of the unlisted investments.
2.2 Going concern
The Trustees have reviewed the financial position of the Charity including the impact of COVID-19 and have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the forseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis.
2.3 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 9
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Rent is included in the Statement of Financial Activities in the period to which it relates. Any outstanding rent at the year end is accrued for within debtors and any rent received in advance is carried forward as deffered income in creditors.
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.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.5 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.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Expenditure on investment advice and investment properties includes amounts payable to MM Wealth as the investment broker as well as legal fees and other costs in respect of the investment properties.
Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
Page 10
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
2. Accounting policies (continued)
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. The notes to the accounts disclose the valuation bases used for investment properties and listed investments.
Programme related investments represent loans made in special circumstances to those in need, which are deemed to be made in furtherance of the Charity's charitable objectives. The terms may vary between the loans, from 0% interest and no fixed repayments to a 10 year term with a fixed interest rate of 2% per annum. The Trustees reserve the right to review and amend the interest rate during the term of the loan.
2.7 Debtors
Debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Gains and losses
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 acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between fair value at the year end and their carrying value. Realised and unrealised gains and losses are combined in the Statement of Financial Activities.
Page 11
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Donations 22,504 Total 2021 50,000 |
Restricted funds 2022 £ 4,280 5,550 |
Total funds 2022 £ 26,784 55,550 |
Total funds 2021 £ 55,550 |
|---|---|---|---|
An unrestricted donation of £18,000 relates to loans written off by trustees. Further information is available in note 20.
4. Investment income
| Unrestricted funds 2022 £ Rents receivable 18,517 Dividends receivable 10,116 Bank, building society and other interest 722 29,355 Total 2021 180,464 |
Total funds 2022 £ 18,517 10,116 722 29,355 180,464 |
Total funds 2021 £ 17,423 162,204 837 |
|---|---|---|
| 180,464 | ||
Page 12
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
5. Investment management costs
| Unrestricted funds 2022 £ Outgoings on property investments 1,707 Investment management fees 9,854 11,561 Total 2021 36,211 |
Total funds 2022 £ 1,707 9,854 11,561 36,211 |
Total funds 2021 £ 27,936 8,275 |
|---|---|---|
| 36,211 | ||
Page 13
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
6. Analysis of grants
| Grants to Institutions 2022 Total funds 2022 £ £ Grants payable 342,384 342,384 The Charity has made the following material grants to institutions during the year: 2022 £ Grants payable Need - UK Individual 45,116 Need - UK Organisation 51,775 Need - Local 7,000 Need - International Individual 4,800 Need - International Organisation 77,500 Education - International Organisation 4,000 Education - UK Organisation 2,800 Religion - International Individual 4,000 Religion - Local 1,200 Religion - UK Organisation 12,019 Emergency Services - UK Organisation 500 Human Rights - UK Organisation 6,000 Health - International Organisation 13,000 Health - UK Organisation 1,000 Community Development - Local 9,500 Community Development - UK Organisation 30,500 Community Development - International Organisation 71,674 342,384 |
Total funds 2021 £ 162,288 |
|---|---|
| 2021 £ 38,398 7,000 4,000 4,800 18,000 - - 14,000 400 28,690 500 18,000 1,500 - 5,000 16,000 6,000 |
|
| 162,288 |
Page 14
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
7. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2022 £ Charitable activities 344,685 Total 2021 163,928 |
Restricted funds 2022 £ 4,019 5,125 |
Total funds 2022 £ 348,704 169,053 |
Total funds 2021 £ 169,053 |
|---|---|---|---|
8. Analysis of expenditure by activities
| Charitable activities Total 2021 |
Grant funding of activities (note 6) 2022 £ 342,384 162,288 |
Support costs 2022 £ 6,321 6,765 |
Total funds 2022 £ 348,705 169,053 |
Total funds 2021 £ 169,053 |
|---|---|---|---|---|
Analysis of support costs
| Sundry expenditure Travel and secretarial expenses Accountancy fees (governance) Independent Examiner's fees (governance) Legal fees |
Total funds 2022 £ 380 45 2,770 500 2,626 6,321 |
Total funds 2021 £ 1,201 360 2,404 500 2,300 |
|---|---|---|
| 6,765 |
Page 15
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
9. Independent examiner's remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's independent examiner for the independent | ||
| examination of the Charity's annual accounts | 500 | 500 |
| Fees payable to the Charity's independent examiner in respect of: | ||
| All other services not included above | 2,386 | 2,404 |
10. Investment property
| Valuation At 6 April 2021 Surplus on revaluation At 5 April 2022 |
Freehold investment properties £ 2,012,500 80,000 |
|---|---|
| 2,092,500 |
The market value is based on the Trustees' best estimate of their respective values in the absense of professional valuations, or where appropriate, may be based on information from professional valuations relating to parcels of land within which the Charity has a partial interest. When properties are valued by estate agents during the year, these valuations have been used in the accounts.
Page 16
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
11. Fixed asset investments
| Cost or valuation At 6 April 2021 Additions Disposals / movement in cash at broker Revaluations At 5 April 2022 Net book value At 5 April 2022 At 5 April 2021 |
Listed investments Unlisted UK investments (associated undertaking) £ £ 479,494 300,000 261,941 - (29,972) - (2,599) - 708,864 300,000 708,864 300,000 479,494 300,000 |
Cash held within portfolio £ 259,823 - (227,604) - 32,219 32,219 259,823 |
Total £ 1,039,317 261,941 (257,576) (2,599) 1,041,083 1,041,083 1,039,317 |
|---|---|---|---|
Page 17
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
11. Fixed asset investments (continued)
All the fixed asset investments are held in the UK.
The listed UK investments are all managed funds and are listed on the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The Charity engages with investment advisers to assist with their investment policy to produce a balance on income and growth. The Charity has obtained investment advice in 2021/2022 from M M Wealth Ltd.
The investment in an unlisted UK company was gifted to the Charity some years ago and the original acquisition value is unknown. It represents 75,000 ordinary £1 shares in J H Martin & Sons (Littleport) Ltd, which equates to 25% of the issued share capital. The shares were last valued by J H Martin & Sons (Littleport) Ltd in 2013 and this valuation is reflected in these accounts. No new valuation has been undertaken recently. The company's accounts to 31 December 2021 disclosed closing net assets of £6,786,315.
The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report. The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. The Charity is reliant on investment income to finance its work and this leads to a greater exposure to risk than holding funds in cash.
The construction of any investment portfolio and its continued maintenance is a very specialist and complex area, which is why the Trustees use professional advisers to assist with this aspect. Asset allocation is the practice of diversifying assets between different classes and is recognised as the most important part of the process of building a portfolio.
The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions. The Charity operates an investment policy that provides for a high degree of diversification of holdings within investment asset classes, including listed and unlisted investments as investment property. The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return.
Page 18
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
12. Social investments
| Programme related investments £ Cost or valuation At 6 April 2021 208,933 Interest charges 707 Loan repayments (4,800) 204,840 Net book value At 5 April 2022 204,840 At 5 April 2021 208,933 Debtors 2022 £ Due after more than one year Other debtors 932,632 Due within one year Other debtors 466,316 Tax recoverable 4,500 1,403,448 |
Total £ 208,933 707 (4,800) 204,840 204,840 208,933 2021 £ 1,398,948 - 1,110 1,400,058 |
|---|---|
13. Debtors
Other debtors represent deferred consideration payments relating to the sale of land partially owned by the Charity. The consideration is payable in three tranches in 2023, 2025 and 2027.
Page 19
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
14. Creditors: Amounts falling due within one year
| Other creditors Accruals and deferred income |
2022 £ - 3,240 3,240 |
2021 £ 2,240 5,381 |
|---|---|---|
| 7,621 |
15. Creditors: Amounts falling due after more than one year
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Other loans | - | 18,000 |
In 2021 two loans were made to the Charity, these were interest free and had no fixed repayment dates. During the year, these amounts were gifted to the charity. Further details are provided in note 20.
Page 20
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
| 16. Statement of funds Statement of funds - current year Balance at 6 April 2021 £ Income £ Unrestricted funds General Funds 5,509,012 51,859 Restricted funds Norwich Reformed Church - 4,280 Total of funds 5,509,012 56,139 |
Expenditure £ (356,246) (4,019) (360,265) |
Transfers in/out £ 261 (261) - |
Gains/ (Losses) £ 81,505 - 81,505 |
Balance at 5 April 2022 £ 5,286,391 |
|---|---|---|---|---|
| - | ||||
| 5,286,391 |
Page 21
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
16. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Restricted funds Norwich Reformed Church Total of funds |
Balance at 6 April 2020 £ 4,136,891 - 4,136,891 |
Income £ 230,464 5,550 236,014 |
Expenditure £ (200,139) (5,125) (205,264) |
Transfers in/out £ 425 (425) - |
Gains/ (Losses) £ 1,341,371 - 1,341,371 |
Balance at 5 April 2021 £ 5,509,012 |
|---|---|---|---|---|---|---|
| - | ||||||
| 5,509,012 |
The restricted funds represent monies collected specifically for and paid over to the NRC.
Page 22
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
17. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 6 April 2021 £ 5,509,012 - 5,509,012 |
Income £ 51,859 4,280 56,139 Income £ 230,464 5,550 236,014 |
Expenditure £ (356,246) (4,019) (360,265) Expenditure £ (200,139) (5,125) (205,264) |
Transfers in/out £ 261 (261) - Transfers in/out £ 425 (425) - |
Gains/ (Losses) £ 81,505 - 81,505 Gains/ (Losses) £ 1,341,371 - 1,341,371 |
Balance at 5 April 2022 £ 5,286,391 - |
|---|---|---|---|---|---|---|
| 5,286,391 | ||||||
| Balance at 5 April 2021 £ 5,509,012 - |
||||||
| Summary of funds - prior year | ||||||
| General funds Restricted funds |
Balance at 1 April 2020 £ 4,136,891 - 4,136,891 |
|||||
| 5,509,012 |
18. Analysis of net assets between funds Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Fixed asset investments 1,041,084 Investment property 2,092,500 Social investments 204,840 Debtors due after more than one year 932,632 Current assets 1,018,575 Creditors due within one year (3,240) Total 5,286,391 |
Total funds 2022 £ 1,041,084 2,092,500 204,840 932,632 1,018,575 (3,240) |
|---|---|
| 5,286,391 |
Page 23
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
18. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Fixed asset investments Investment property Social investments Debtors due after more than one year Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 2021 £ 1,039,317 2,012,500 208,933 1,398,948 874,935 (7,621) (18,000) 5,509,012 |
Total funds 2021 £ 1,039,317 2,012,500 208,933 1,398,948 874,935 (7,621) (18,000) 5,509,012 |
|---|---|---|
19. Contingent liabilities
The Charity has a possible obligation to pay grants within the following categories:
Local charities - £3,000 per annum potentially for an indefinite period.
This possible obligation does not have sufficient certainty for the Trustees to include them as a commitment in these accounts.
Page 24
THE FARTHING TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
20. Related party transactions
The Charity considers its key management personnel to be the Trustees. All Trustees give their time and expertise freely with no remuneration or other benefit in kind, either directly or indirectly from the Charity. The following related party transactions arose during the year:
a) Trustees' expenses - During the year, £45 was paid to one Trustee (2021 - £nil) in connection with secretarial and travel expenses. The Trustees have waived expenses relating to postage, which are minimal in monetary terms.
b) The Trustees are shareholders in J H Martin and Sons (Littleport) Limited. Mrs J Martin, Mr J Martin and Mrs E Bell are also directors of J H Martin & Sons (Littleport) Limited. During the year the Charity received a dividend from the company of £nil (2021 - £157,500).
c) One property in which the Charity holds a minority equitable interest is let to J H Martin and Sons (Littleport) Limited for the sum of £4,000 per annum.
d) £1 was paid to J H Martin & Sons (Littleport) Ltd for rent of the Highbridge site.
e) In 2021 Mrs J Martin and Mr R White (Husband of Mrs A White, trustee) made loans to the Charity totalling £18,000. These loans were interest free and had no repayment date. During the year, the loans were gifted to the charity. They have been included in donations in the year through the Statement of Financial Activities.
f) The Charity holds a 7.32% interest in the Waterbeach Trust. Some Trustees of the Charity are also beneficiaries of the Waterbeach Trust. Included in these financial statements is the value of this Charity's share of the land held in Trust of £1,392,500 and is included in investment property. The Charity also receives an annual rent of £2,477 which is included in investment income.
Page 25