THE BETH JOHNSON ENDOWMENT ANNUAL REPORT AND ACCOUNTS 31 DECEMBER 2021 Charity 271526
THE BETH JOHNSON ENDOWMENT Page Report of the Trustees Independent auditor's report to the Trustee Statement of financi activities Statement of fin1¢1&[ position io Statement of Cash flow$ Statement of accounting polickes 12 Notes to Lhe fllwici81 $tat¢m8nts 15 Appendix l Grants 19
THE BETH JOHNSON ENDOWMENT PEPORT OF TI& TRUSTEES Trustees A A Reeves M W Thowless-R¢¢v¢s REPool Auditors RSM UK Audil LLP St Philips Point Temple Row Bimjinghum BaDk¢rs Hand¢lsbat]k¢n plc l Lakeside Festival Park Sioke on Trent Investment mODqger$ Sorbus Partller8 LLP 41a E88tgale Slreet Stafford Reglstertd office The B Tadshaws Codsall Staffordshire L¢8al advl8¢rs Freeilis LLP Charfty 271526 EW40151
THE BEFH JOHNSON ENDOWMENT REPORT OF THE TRUSTEES Charity Statu5 The Endowmtnt wa5 eStablish¢d as The Beth Johnson Foundation by a Deed of Trnst on 22 August 1972, registered with tbe Charity Commission (charity number 271526) under the Charities Act 1900 and changed Èts nanie to The Beth Johnson Endowment {"the Endowment") on 14 ebnry 2008. The Trust deed was last varied as lo the objects of the Endowment on 13 December 2016. Objects The current objecls of the Endowment are now'the improvemenl ofthe condition or quality of life (including recreation, education and leisure) of any person living in tlie Ullited Kingdom, who is not less than seventy years of a8e. by the initialion of exploratory and ¢xp¢rimental research and service based projects and the evaluation and dissemination of the resuli of suLh research." Tl)¢ fndowmen¢ aims to achieve ils objectives by making grants to commission conduct and dis51nate r¢search. Aehievement$ Since establishment in 1972 the Endowment has mad¢ grants of £5.9m {Appendix l ) towards its objectives. Investments Pollcy PerformDce and Activities ffin tbe Year The Trni%tees have sel a long tem) invcstment obje¢tive for the bndowment fvnd of achieving capital growth consisleiit with increasing income by at least the equival¢nt of infialion. Having regard to tlie COVID -19 outbreak since March 2020 ihcrc has been $ome reduction of Ihe income received dLU'in¥ 2021. In relation to tli¢ gcneration of incoine and the preservation of the Capital of th¢ Endowment funds the Trustees obtain th¢ bcncfil of exlerndl professional advicc from Sorbu5 Partners LLP on tlie appropriatc asset allocation as b&ween quoted and ¢onunon charity funds, investments, cash on deposit and fixcd inlcrest and managed funds. The Endowment owns f8rn1land leased at market rents, quoted shares and in a eollective property fund. All tnve5tm¢nts held by the Endowment have been acquired in accordanee with the power5 Confe on the Trustees. The property investments funds of the Endowment are vested in The Beth Johnson Endowment Limited (company 01120137) as nominee for thc Endowment. Cash is on deposil with I.landelsbanken plc and Sorbus Partners LLP. The quoted investments are in the custody of Sorbu5 Partners LLP as nominee for the Endowmcnt. At the start of th¢ y¢ar the Endowment Funds were £4.7m. The income 8encrated was £100,699 which represented an overall yield of1.990/0. At the end of the year the pernianent endowment fimds (fixed asset investments) amounted lo a total of £4.9m and were repreSted as to 51.96 /0 investment property and a property fwid, 47.200/9 quoted and unquoted s¢¢urities and 0.960/0 cash less 0.180/0 current liabilities. The Endowment funds increased in value during 2021 by £158,236.
THE BETH JOHNSON ENDOWMEFrr REPORT OF THE TRUSTEES Ri$k PoIiey The Trustees have considered the major risk5 to which the Endowment is exposed aad have reviewed these risks and established systems and procedures to manage those risks. The Trustees consider variability of investment returns on the pcrmanenl endowment to constktute the Endowment's inajor financial risk. The risk of d¢pletion of the capilal PErmanent endowment inveslmcnl asscts is addressed by the use of Sorbus Pilt1ners LLP (a related party) as investment advisers who rcport on the capital and income perforn)an¢e of the quoted funds and investment strategy each quarter and which are then reviewed by the Trustees. In r¢lation to th¢ land and property the Trustees engage surveyors to advise on value and rentals. PlaDS for the Future The Trustees plan lo generate sufficient incom¢ from the Endowment funds whilst preserving e8Pltal values, to increase income and Continu¢ to make grants to achieve the objects. Publle Benefit Thc TNstccs havc due regard to the guidance published by Ihc Charity Commission in relation to public benefit requirements. Flnanclal Revlcw Tlie bldtement uf financial activities is on page 7. Total investment in¢ome for tILe period amounted to £100.699 (2020 .. £92.257). Gran18 of £32,000 (2020: £72,000) were madc which resulted in a net incrcase bvfvre other reco¥nis¢d gains of £211,305 (net deci'ea8e in 2020'.{£19,800)). Nct income and net movements in funds £201,842 (2020 -. (£102,086)) after nel gains on investments of £173.537 (2020 :(£82,286)). The Endowment nd blllance At 31 Deeember 2021 was £4,875,425 (2020 £4,730,644). 1.he unrcslricted fund balance Al 31 December 2021 was £177,309 (2020 £120,248). The tot81 funds of th¢ charity al 31 Deccmber 2021 werc £5,052.734 (2020 £4,850,892). Reserves Poll The reserves policy is that the income reserves of the Fndowment should reprcscnt six months inve5tmcnl income. At the year end this would require a minimum income reserve of £50,000 (2020 £46,000). Th¢ actual income reserves are £177.309 (2020.. £120,248). Trustees The Trust deed provides that there should be not less than two or more than six Trustees. The power to appoint new Trustees is vested in the existing Trustees. When there is a requirement for 8 new trustee. another trustee would be identified and appointed by the remainlng truslees. The Trustees are responsible for the induction and training of any new trnstee which involvcs cxplaining trustee's r¢sponsibiLilics. the governing document, administrative procedures. the history and philosophical approach of th¢ Endowm¢nl and the requirements of the guidance issued by the Charity Commission. Mr A A Reeves wds appointed a trnstee on 2 August 1972. Mr M W Thowless-Re¢ves on 5 October 2018. Mrs S R Beard resigned as a tNstce and Mr R E Poole appointed on 27 July 2021.
THE BETH JOHNSON ENDOWMEwr REPORT OF THE TRUSTEES Trnstees, Responsfibilities in re]ation to the FinAyJclal Statemevjts The Trnstees are responsible for preparing the Trn8tee9 Annual Report and the financial statem¢nls in a¢cordanc¢ with applicable law and United Kingdom Aeeount Standards (United Kingdom GeTherally Accepted Accounting Praclice). The low appli¢able to ¢h8rities in England alld Wales requires the TrusteGs to prepare finallcial staletnents for eacb fiiiancial year whicli give a tTU¢ and fair view of the state of affairs of the Endow]nenL and of the income resourc¢s and application of resoufGes of tli¢ charity for that pcriod. In preparing th¢8e financial statcmellts, the Trndees are Tequired io.. sd¢Gt SUjtabl¢ accounting policies and then apply tIwD CODSiStantly• observe tlie Tnetbod8 and prin¢ipl¢s sn the Charities SORJ?; niak¢ judg¢m¢nts and estimates that are i'eosonable artd prudent- slate whcihcr 8pplicable &¢countin8 St4ndords have be¢n followed, subject to any material departures disdosed and explained in Ilie financial statements.; and prepore tbe financial slalernenls on th¢ going concern basis uilless it is inappropriate to presume that thtt clritY will continue in busines8. The Trustee5 are responsible for keeping proper a¢¢ountinB reeords that disclose will) reasc>n8ble accuracy Ai any lime the financial posilion of the Endowment and enable tl)em to ellsur¢ that the fillanaial stsl'cments comply widi the Charities Aet 2011, tho ChllTity (Aecounls and Reports) Rcgmlations 2008 and the provisions of tlie tsust deed. They arc also respDnsiblc for 8af¢gu8rding th¢ ass¢ls of Ibe Endowrnenl alld hen¢¢ lor taking reasonable Ste for the prevention and d¢tcotion of fraud and othcr irrcguiaiitie8. Approved by the Truste¢s on 27 June 2022 and were signed by.. A A Reeves TDJStee W Thowles8-Reeve8 TTUSte¢ R E Poole Trustee
TIIE BETH JOHNSON ENDOWMwr INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BYfH JOIINSON EbTDOWMENr OplJJion We have audited tbe financial staten*Ats of The Bh Johnsott Endowment (the 'charity') for the year ended 31 DeceDkner 2021 wlueli Compris¢ th¢ Statem¢ni of Finan¢ial ActivitA¢5. 1h¢ Balance She¢t. th¢ Cas]1 Flow Statement and notes ll fmau¢ial 8ts1em¢nts, including SI]ficallt accounting policie$. Tlie finanei81 TCPOrting fram¢work that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including fRS 102 'The Financial Rcporting Standard applic4ble in the UK and Republic of treiand" (United Kingdom Generally Accepted Accounting Practice). In OUT opinion tbe financial st8tem¢nts'. give a tN¢ and fair vicw of the state of the charity's affairs as at 31 D¢cember 2021 and of ils incoming resouTces and application of resources for the year then ended; have been properly pr¢par¢d in accordance with United Kingdom Generally Accepted Accountin8 Practice. and have b¢¢n prepar¢d in accordance ivith the requireinents of the Charities Act 2011. Basls for oplnlon We have been appointed as auditorsunder section 145 of the Charities Act 2011 And report in 8ecord8ne¢ with regulations made under Section 154 of tbat Act. Wc coDduct¢d our audit in accordance with Jlltemational standd$ on Auditing IiiK) (ISAS (UK)) and 8pplicabl¢ law. OuTT¢sponsibilltie5 und¢r thos¢ standard5 are fijrtber d¢scribed ill t1 Auditor's r¢5ponsibilities for the audit of the financial statements section of our report. Wo are independent of the charity in accordance wlth th¢ ¢il)ical r¢quirements that &Tt relevant to our audit ofthe financial slatcment5 in the UK illoluding the FRC'S Ethical Siulldard and we have fijlfllled our other ethical r¢sponsibilities in accordan¢¢ witli tljese requirements. We believe t11 the 8udit evidence we have obtained is suffi¢i¢nt and appropriate to PTovid¢ basis for our opinion. Conclusions relatillg to golng Concern In auditing the finanoial slat¢ments, we have concluded Ihat the Injsiees, use of tbe going COnM btsis of a¢¢ounting in the preparatiok of die fiDan¢ial sthteinents is appropriate. Based on tbe work we have performed, we have not identified any material uncertainties relating to events or colldition5 thal imdividually or collcctivcly, may c8sI significant doubt on the chauty's ability lo continue as a going conc¢rn for a p¢riod of at least twelve monihs froni when the fillancial statements authorised for Èssu¢. Our SponSIbl11tieS and tlie responsibililies of the tntsle¢5 with respcct to going concern aTe deSibed in the relevant sections of this report. Other Informatlon The other inforniation comprises the Information included in the Annual Report other than the finaneial stat¢ments and our auditor'8 report ther¢on. Tlie trnstees are responsible for the other infonnation contained wiihin th¢ Annual Report. Our opinion on the financial slaten]ents does uot cover the other information an we do not express kny form of assurancv conclusion thereon.
THE BETH JOHNSON ENDOWMENT tNDEPENDEwf AUDrroR'S REPORT TO THE TRUSTEES OF THB BH JOHNSON ENDOWMENT Our responsibility É8 to read the other infornialion and, in doing so, consider wliether the oth¢r infonnation is malerially incctrnsistenl witb tlie financial statements or our knowledge obtained in the coutse of the audit or otlien¥ise appears to bc mAterially misstated. If we identify such material incon515t¢noies or apparent material misstatements. we are required to detern]ine whether this 8iv¢s rise to a material misstatement in il)e financial statements thernselveq. If, b&g¢d on thr work wp, have, perfornie.d, we. r,one.Iiide. tlial Ihewe. is a material mis$laiement of tllls other infomtio)). we are requiiEd to report that fact. We have notbing to report iJ] this regard. MAtt8rs on whl¢h we *r¢ r¢quired to report by exeeptton We have nothimg to report ill r¢speGt of th¢ following matters where (be Charities Acl 2011 requir¢s us to report to you if, iii our opinion.. the Tnfornialioll Biv¢n in the financial statements is tneonsisient in ally mataial rcspect with the Truste, Report; or Sufficient accounting records have not been kept; or the financial statements are not ln asreenwnl with the accounling r¢cords and retUrn8' or we have not received all the inforn)alion And explanations we require for OUT audit. Responslbllltles of trustees As cxplaincd rnore fijlly in the Ststement of Trustees. respon8ibilitie$ $¢1 out on page 4, tlie tnlstees are responsible for the prepgLr8tion of the filnCial statements and for bciJJg satisfied that tliey give a true and fair view, and for such internal ¢ontrol a5 the tn15tees delerniine is necessary to enable the prepAration of financial statements that arc fr¢¢ from mai¢rial misstat¢m¢Dt, whether due to fraud or ettor. In prtyaring the financial stst¢m¢nts, th¢ trustees are responsible for assessin8 the ehArity's ability to continue as a going con¢¢rn, disolosing, as applicable, matters i'¢laied to 80in8 concern and using the going ¢on¢¢rn basis of accounting unless the Iruslees eitlier intend to liquidate th¢ or to cease operations, or have no realistic altenwtive but to do so. Auditor's responsiThl]fide$ for tho audlt of the flnanclal statement$ Our objcctives an to obtain reasonable assurance about whethcr fin8ncial slal¢ments as a whole are free froin inaterial Misstatement, whether due to fraud oi ¢ttor, and to issue an auditor's report ihal includes our Opinio Reasonable aS$llnCe is 8 hi£h l¢vcl of assurance, but 18 not a guarottlee that An audit ¢onducted in accordance with ISAS (UK) will 8Iway5 detecl a materia] misstatement when it exists. Missialement6 can aris¢ from fraud or error and are considered material rf, iJ)dividually or in the aggregate. they could rea50nubly bc ¢xpected to influcncc the cconomi¢ d¢cisions of u5eTs taken on the basis of these financial $tat¢ments.
THE BETHJOIINSON EWDOWMENT INDEFENDENf AUDrroR'S BEPORT TO THE TRUSTEES OF THB BETH JOHNSON ENDOWME£ The extent to whleh the audlt was eonsldered CaPAble of detsetlng irrcgul8rities, Ineludlng fraud I¢guLaritieS ar¢ instances of non-compliaiice with laws 8iid r¢gulations. The objectives of our audit are to obtain sufficient appropriale audil cvidence regarding compliance with laws w)d regulations that hav¢ a direct ¢ff¢¢t on the determination of material amounts and dis¢losurc5 in the fjnanciaj statements, to perfoiTr audit procedures to heEp id¢nlify instances of non-collipliance witjj otbeT laws and r¢gulalions that J]]ay have a material effect on the fmancial statemettts, and to respond appropriately to identified or suspected non- compliance with18ws and r¢gulalion$ identified during th¢ audli. In relation to fraud, the objectives of our audit oje lo identify and assess tbe risk of material misstatement of tli¢ financial Siateinents due to froud, to obtsin suffi¢ienl appropriate audit evidencc regardittg ihe assessed risks ofmaterial mi$stAtement due to fraud through designing and implementing appropriate r¢spons¢s and io r¢spond appropriately to fraud or suspect¢d fraud identified during the audit. However. it 18 the primary responsibility ofmanagement, with the oversight ofthose chargtd with governance, to en8ure that ihe entity's operations are conducted in Rccordance with the provision8 of laws and r¢gulation8 and for lh¢ prev¢ntion and delection of fraud. identifying and assessin8 risks of matcri81 mis$latemenl in r¢spe¢i of iTh¢8ularilies, including frau the audit engagemeilt team: obtained an und¢rstAnding of th¢ naiure of die sector, includiDg the legal and regulatory framework, that the eharity op¢rates jll and how tlie cliarity i$ complying with the1¢881 and r¢8ulatory framciyork: inquired ofmanag¢menL and Ihose ¢barged with governan, about thelr own idenii£¢21ion and 4ssessm¢ni o( the risks olitTegulariLi¢s, including any known acffjal, suspected or alle8¢d in5tance5 offrau. discussed ynatt¥rs about non-compliance with laws and reguleiions and how fraud mi8ht o¢cur includin8 BSSe5sment of hoiv and wllere tha fllwnoi81 statements moy be sus¢eptibl¢ to frnud. A8 a result of these pr¢)c¢dures we consider the most sigaificant laws and regulations that have o dir¢¢t impact on th¢ fancial slalen]ellts are FRS 102, Charili¢s SORF (FRS 102), Cbarities A¢t 2011 and Ihe ¢barity' govcrning document. We perfonned audit prO¢Ur¢S to delcct llon-compliances which may have a material impact on the fin8nci81 slatemenl8 which included revi¢wing the financial Mat¢menls including the TTuslee$' Report and remaining alert to new or unusual tranwlions whlch may not be in accordance with the governing documents. The audit engagement team identified tlle risk of managem1 override of controls as the area where the r]nancial statements were most susceplibl¢ to material rnis8talement due to fraud. Audit procedures perforffled ineluded but w¢re Lot iimitedto testing mallual journal entries and other adjusttnent8, evaluating the business rationale tn relation to Si8nificattL unusual traD5a¢lions and transactions enlered into outside the nonnal¢outse of business and challenging judgments and estimates, A furtherd¢s¢riptionofourr¢sponsibilitiegforthe audit ofthe financial statements is provided Oll the Finatt¢ial ReportiDg Council's ivebsile at httpJlwww.frc.or8,ukJ#uditorsrcsponsibilities. This description fornis part of our auditor's rep()rt.
THE BEfH JOHNSON ENDOWMENT INDEPENDENT AiJDITOR'S REPORT TO THE TRUSTEES OF THB BFfH JOHNSON ENI)OWMENT Use of our report This report is made solely to the chaJity's trastecs as a body, in accordance ivith the Charities Act 2011. Our audit work has beeii undertaken so that we might slate lo the cbarity's tSle¢S thos¢ matt¢rs iv¢ are qUired to state lo them an auditor's report and for no other purpose. To tlie fidlest extent perniitted by law, we do not accept or assume responsibility to anyone other tb8n the charity ond tlie ebarity's tnistees as a body, for our audit worK for this report, or for Ilie opinions we have fomed. ESM QE A¢ilit LLP RSM UK Audit LLP StaNtory Auditor Chartered Accountants St Philips Point, Temple Row Birniingham, B2 SAF Date 27 June 2022 RSM UK Audit LLP is disible to act as all audtlor in tern15 of seelion 1212 of the Companies Act 2006.
THE BFfH JOIINSON ELDowmENT STATE OF FJNANCL4L ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 2021 Total 2020 Total Note Endomwment Fwid Ur&trICled Lljnds Income Investmellt incom¢ l(a) 100,699 100,699 92,257 Total itieome 100.699 100,699 92.257 Expendlture C05t of raisin8 fund5: vestment management costs l(b) 21.375 21,375 19,678 Fa¢ilili¢s and accountancy costs l(b) 7.381 11,638 19,019 20,379 Expenditure on charitable a¢iiviti¢s Grants c¢)mmitt¢d l(b) 32,000 32,000 72,000 Total Expelldlture (28,756) (43,638) (72,394) (112,057) Net iD¢ome/expelldlture before 4Falns and losses on lllvestments (28,756) 57,061 28,305 (19,800) Net gainsllosses on investments 173,537 173,537 (82,286) Net Ineome and net movement In funds 144,781 57.061 201,842 (102,086) R¢eon¢lJlatlon of funds: Bmught forward 4,730.644 120,248 4,850,892 4,952.977 Totsl funds of the Endowment carried f¢)rward 4,875,425 177.309 5,052,734 4,850,892 Thc incoming r¢sourc¢s and resources expended derive from continuing operations.All gains And losses are inclllded within the Statement ofFin8ncial Activities for the year.
THE BEfH JOHNSON EKDOWMENT STATEMwf OF FINANCIALPOSITION AS AT 31 DECEMBBR 2021 2021 2020 Note Capitol UDre8tricted Endowment Total Total r5xed asset$ Investments 4,887,659 4,887,659 4,729,423 Current A8sets Cash at Bank (3,234) 232,184 228,950 208,784 Current IIMbllldes CredAtors ajnounts fallin8 du¢ within one year (9,000) (54,875) (63,875) (87,315) Net eurrent as$et8 (12,234) 177,309 165,075 121,469 Net a$$ets 4,875,425 177,309 5,052,734 4,850,892 Th¢ fill8 of the charity: Capital F.ndownJent Unr¢slricted 4,873.425 4,875,425 177,309 4,730,644 120,248 177,309 TotRI charity funds 4,875,425 177,309 5,052,734 4,850,892 The financiol S¢Atements w¢r¢ approved by the Trustees and authorised for issuo 2022 and w i8ned by: on 27 June ve5 M W Thowless-Reeves Ttuslee E Pi)ol¢ Trustee Trnsle¢ io
THE BETH JOHNSON EbfDOWMENT STATEMENf OF CASH FLOWS AS AT 31 DECEMBER 2021 Nol¢ 2021 2020 CASH FLOWS FROM OPERATtNG ACTiVITJES: Net income/ {pendItUre) for th¢ r¢porting p¢riod Investmontl (gains)Ilosses (D¢¢r¢as¢)lincr¢as¢ IA credilors Jnv¢slment income received 201,842 (173,538) (23,440) (100,699) (102,086) 82,286 17,575 (92,257) NET rNCOME USED IN OPERATING ACTtvrriBS (95,835) (94,482) CASH FLOWS FROM INVESTING A[VITIES.. Investment income: Tnterest received 356 Dividends received 67,023 58,669 R¢nt rceeived 33,676 33,233 Proceeds from sale of inv¢sIMlS 1,658,815 558,665 Purobas¢ of investtn¢nls (1.643,513) (540.608) NET CASH GENERATED FROM INVESTtNG ACTIVITIES 116,IXIl 110,335 INCIiEASB fN CASH AND CASH EQUIVALENTS IN THE REPORTING PEIUOD 20,166 15,853 Cash and cash equivalents at the beginning of the reportin8 period 208.784 192,931 CASH AND CASH EQUtVALENTS AT THE END OF TEtE BEPORTING PERtOD 228.950 208,784 li
THE BETH JOHNSON ENDOWM STAfEMENf OF ACCOUNTING POLICIES FOR THB YEAIiENDED 31 DECEMBER 2021 Jjasls of Preparatio The ae¢oullls (finan¢ial 81¢ents) have been prepared in accordanee with the Statement of Recon]mended Practice.. AceouJting and R¢porting by Cbarites prcpaIi]Jg their accounts ill accordaiice with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 alld the Fin8llcial Reporting Siandard appli¢Able iii tlie United Kingdom and Republic of Ireland (fRS 102) and the Charitie5 Act 2011 and UK Geller8lly Accepted Practice as it applied froml Jatluary 2015, Th¢ principal accounting policies adopt iii the preparation of the a¢countin8 policies are sel out below. The a¢¢oullts (fiDancial 5tatemenls) havebeen prepared to give a'true and fair, view and have departed from the Charities (Aceollnts and Reports Re8ulatsons 2008 only to the exterLt required to provide a 'true and fair view,. This departure has involved following A¢counting and Reporting by Charitie8 preporing th¢1 accounts in accordance with the Finattcial R4)ortin8 Standard applicable in the UK and Republic of treland (FRS 102) issucd on l6 July 2014 rather I1[L tlie A¢¢ouzElin£ aad licporting by Charitics: Statement of R¢eommended Pra¢ti¢e effective frornl April 2005 whi¢li has sin¢¢ been witlidrawn. Th¢ fndowmenl metts Ilie definition of a public benefit enlily under FRS 102. Assets and liabil%tie5 are initially recognis¢d It hislori6al Cost or transaGtion value unless otheNisB stated in the relevant accounting policy note(s). The financial statements are pttpayed in sterling, which Is the nCtiOnal currency. Monetary amounts in these fmancial statemoots are rcunded to the ncarcst £. T]ie following ae¢ounling polici¢s hav¢ been applied comislently in dealin8 Wlth I$ whicli are considered Ixaterial ID relation to the Endowmenl8 6nan¢i8181aiun¢nl$. Golng Concern The Tste#S annually ass¢ss Ihe going concern status of the fJndDwm¢nl End tbe Trustecs do Dot believe there ate any indications that the charity will not continue io operate for itse foreseeable fiJrur¢, tl*r¢fore the 80ing con¢ern basis of accounting has been adopted. Fund$ Strneture The bndowment bas a single p¢mnent e]2(bwment, wluckn Tequired th¢ TNsiees lo invest th¢ capital in peo)¢tuity, the in¢omefrom which is wholly unrestricted. The Endownwnt fuuds ar¢ us¢d to SUPPOrttharities wh05¢ obje¢ls ar¢ similar to those of tlke Endowment described in the TTUStee5' Report on pa8e 2. General accumulated thnds are vnrestiicted fijnds availobls to the Endowment for its general purposes #nd includ¢ fijnds comttilted by the Endowment for grdnts. Ineoming Resources Investment illcome, rettts aod other income is IgnISed on anaccruals basis and 18 reported gross of r¢lat expendiiure. 12
THE BETII JOHNSON ENDOWMENT STATEMBNT OF ACCOUNTING POLICIES FOR THE. YEAR ENDED 31 DECEMBER 2021 Resources Expended EXpdItUTe is recognised on an accruals basi3 and Is rworted gross of rclated income on the following basis: ost of generating fuuds comprises Ilje c08tS 880ciated with the investment portfolio. governance CL)sls include those incurred in the goven)anee of the Endowment and its assets and are asc)r.iRte,d with c.nTh8lithtional and 8t¥Ltiitnry reqilire,met8. irrecoverablc VA'f ts charged agattist the ¢ale80ry of r¢sourccs ¢xpcllded for which it was incurted. Exp¢nditurc is allocated between fijnds based on all ossessm¢nt of timc spcnt on cach activity. Grant mtskitsg Policy The eurreiit policy of tlie Trnstees is lo pay available ii)come as grants to charitics lo ¢ondvcl wseanh iiito issues of 8gein8 whi18t preserviu8 Pital values in the Endowmenl and Sufficient revenue reserves. Fixed A$$e¢ Investments Tkn¢ investm¢uts held by thg Endowment are st&led at ¢urr¢nt fair value with realised and unreali8ed gaitt$ aud losses being dealt with in the statement of fmancial a¢livilics. Investment income and 8ains or losses on sal¢ of th¢ inv¢stm¢nt5 ar¢ debil¢d or credited directly to Ib¢ Slateml¢ of fwanoial activities when they are re¢eivedlin¢urred, Investment Propertlts Itsve8tment properties are held as as$cts forth¢irinvestment potential and hirv2lu¢ withthe longt¢rn) Intention of using tbese assels lo gcnerale r¢ntal incotll¢. Invcslmcnl properties are heLd at fair value (their Current markel value) and are revaluoj tri-annually by indepelld¢nt exlernal Value with internal reviews by th¢ Trnste¢s in between. Impalrment of Fixed A$$ets At each r¢porting end datc, the Endowment review the ¢arryAng aroounts of its tan8ible 88s¢ls to deler]ninc whether there is any indicationthat Iliose assets have suffered an inJpairni¢ttt loss, If any suck indication exists, tbe recoverdble Èmount of the asset is estimaled in order to det¢rnin¢ Ilie ¢xt¢ttt of the impairn]cnt loss if any. Where it is not possible to estimate the recoverable 8mouni of an illdividual asseL th¢ Endowment estimates the tteoverable amount of the ca8h-generatin8 unit lo which tbe asset belongs. Re¢overabl¢ arnount is the higher of fairvalue less costs to sell and value in usc. In assessing value ill use. the estimated tUr¢ cash flows are discounted to tlieir present value using a pre-tax discount rate that reflects OUent market assessments of thetime value ofmoaey and the risks spccific to Iheasset forwhich the estimates of cash flows have not been adjusted. If the LEcoverable amount of an asset (orcash-g¢netIllg unit) is Cstinled to be less than its ¢anying amounL the carrying amount of tbe asset (or c8sh-gcnerating unit) is reduced to its reooverabl¢ amount. An impairment 1085 is recognised immediately ill profit or loss. Rccognised impainnent losses Ther5ed if, and only if, the reasons for the impairmettt loss have ceased to apply. Wliere all irllpainneni loss subsequently reverses. the earryillg amount of the asset (or casb-generaling unit) is incTeased to the Tevised ¢8timate of its r¢cov¢rabl¢ amoual but so that the increased caTrying amount does not ¢xceed the carrykng amount that would hav¢been detern]ined had no impainnent loss been recognis¢d for the asset (or cash-generating unit) PriOT years. A reversal of impairnicni loss is recoguis¢d imm¢diatdy in profit or loss. 13
TEIE BErH JoirNSON EKDOWMENT STATEM OF ACCOUNTING POLICIES roR THE YEAR ENDED 31 DECEMBER 2021 Cash and CAsh equlv&lents C8sh 4Dd ¢ash equivalents include ca¥h in hand, deposits held at call with banks, and other short- term Ilquid investments witlL QTigino1 malllrilies of three montbs or le5S. aDCA&I in5truLuents The Endowmettt has elected to apply the provisions of Section I I 'Basio Financial In8mentS, and Section 12 '0ther Financial ]nstrum¢nts Issues, of FRS 102 to all of ils financial inslNmenls. Financial assets are recognised in th¢ Eaowment'S 8latthnellt of fjllaneial position when the Endowment beco111 party to the cOntracal provisions of the instnmient. Finan¢ial as$ets are ¢la8sifLed into specified oot¢gori¢s. The classification depeThd6 on th¢ nature and purpose of lh¢ f)Dan¢ial ass¢t5 and is delenniThed at the tim¢ of recolI10n. B8s1¢ IIn8nclal ass¢ts Basic financial assets, which include trade and otl)er reeeivables 2nd eash and bank balances, are initially measured at Irans8cLion price in¢luding transaction costs and are subsequendy Caled at amortised cosl usitig the effe¢tive inter¢8t method unless the anngement constitutes a financing Irall$aclio]J, where the financial asset is measured al the ptBseiil value of the tUre receipts di$¢ouDted at 8 market rote of int¢re$t. Tb¢ Endowment only has basic finan¢i81 ass¢ts. Impairment of financial assets Financial assets ar¢ Bs8¢5s¢d for indicatorg of Impatrn]t al ¢ach reporting end dale. Financial asset8 are impaired wher¢ tb¢r¢ is objcctive evidence thal, as a result of onc or morc events that occurred after the inilial recognilion ofthe finan¢ial asset, the estimated fvLur¢ cash flows have be affected. The impaArn]ent IOBS 18 recogtitsed in profit or loss. Classiflc*tlon of financial liabilities Financial liabilities and ¢quity InstmentS are Clgified according to the substance of tlie Contractual ng¢ment$ entered iDto. An ¢quily inslrument is any conlra¢t that eviden$ a residual interest in tkLe assets of the Endovnn¢nt after deducting all of its liabilitics. Baslc fiuAuclal114bllltles Basic financial liabilities at¢ initially measured at transaction pric¢. Thc Endowment only has basic finRncial liabilities. Derecognitloll of flnAnclal liabAllth8 Financial liabilities are derecognised when. aod o)Jiy wh#n, the EDdowmenl's contractrJ81 obligations Are dAscIrged, ¢an¢elled, or they expir¢. 14
THE BETH JOFINSON ENDOWMENT NOTES TO THB FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 l. Statement of fall¢la1 actiYitSe$ a) Inve5tin¢nt income Unrestrirted fuuds: 2021 2020 Bonds Equiti 4.426 56,311 7.636 46,644 Property (funds) Property (direct) 6,286 33.676 4,744 33,233 100,699 92.257 b) Total resouw¢s expended 2021 2020 Support C081s Total UnTC5tricled: Charitable a¢livitle5: Granls Facilities/accounlall¢y Costs 32,000 72.000 S04 43,638 84,504 Elldowm¢nt: Jnveglment managem¢nt and custodial Costs Facililieslaccountancy ¢osts 21,375 7,381 19,678 7,875 28,756 27,553 Total Res¢)ur¢cs ¢xp¢nd¢d 72.394 112,057 There were no employee8 (2020". nil) of the Endowment. The Thistees received no remuneraiion for being Trnstees (202Tr. £nil) and were noi reimbursed for any of tbeir expenses in tbe ycar (2020: £nil). l5
TME BEfH JOHNSON ENDOWME,wr NOTES TO THE FINANCIAL STATEMENTS roR THE YEAR ENDED 31 DECEMBER 2021 2. Net movement fin fiIT*ds 2021 2020 Net movement ill funds for lh¢ financial year is stated after ch8r8in8: Auditor's rell)uneration JndetDnity insurance of Thistees 7.200 942 6,840 942 3. nxed asset Investments Prop Prop (funds) (direct) Total Cash Bond8 Equitl¢S Al boginning of year 95,063 Gaiiis Additions Dxsposals at carryitig value 398,488 2,011,921 123,951 2,100.000 1,560 143,688 28,290 185,168 1.375,876 76,595 4,729,423 173,538 1,643,513 5,874 173.928 (335.065) (1.490,974) 16,704) (1,658,815) at end of year 268,991 250,151 2,040,511 222,132 2,105.874 4,887,659 Investment Prop¢rty t is the Trnstees, opinion that tbc valuation in Ihtt attounts is a reasooabA¢ estimate of th¢ fair value at 31 De¢ernb¢r 2021. The farlulattd and woods at Fradswell w¢re Valu on an open market basis at £2,Im in De¢emb¢r 2019 by BagshRw8. Other funds Property fithds, quot'ed fixed interest> quol¢d managed fimd and quoted itivesimenls canied at fair value (market value). Risk Profile Th¢ Tn1¢¢$ Teview the risk PTofae of the investments eaeli year and have regard lo the spread b¢twe¢n quoted. fixed interest and maDag¢d ptopertyquoted fimds and agricultural land 10 achieve an appTopIiat¢ Spread of risk. 16
THE BETIIJOHNSON ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 4. Credltors: Amounts falling due witbin one year 2021 Total 2020 Totsl Accrua18 and deferred income 15,875 15,315 Accrnals for grant$ payabl¢ in 2022123) 48,000 72,000 Total 63,875 87,315 Accrnals include deferred incoIne of 2021 £6.875 (2020 £6,875) which will be iEleased in Ilio next year and relates to farm rent r¢c¢iv¢d in advance. S. Analy81$ of charitable funds Cartied ExpenditLf¢ Gains I losses forward Bfivd Income Endowmeiit 4,730,644 (28,756) 173.537 4,875,425 Unrestricted fjJnd8 120,248 100,699 (43,638) 177,309 4,850,892 100,699 (72,394) 173,537 5,052,734 No restricted ineomc was receiv¢d in 2021. 6. Analysi$ of net a55ets between funds SJ)vestments Cash at Creditor8 Net assets tndowmenl 4,887,659 (3,234) (9.000) 4,875.425 Unrosti?cted 232 184 875 177 309 4,887,659 228.950 (63,875) 5.052.734 17
THE BETH JOHNSON ENDOWMEwr NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EKDED 31 DECEMBER 2021 Commitments Th¢T¢ were no capital commitments at th¢ end of tlie financial y¢ar(2020..£nil). Related paity trAn$a¢tlons The Trnstees are al80 the dire¢tors of The Beth Johnson FdoWm0nt Limited, 8 nominee Company for tILe Trustecs of the Endowment. The legal title of tlie land and ittv¢stmeTrls owned by the Elldowment 15 Vcstcd in The Beth Johnson Endowment Limited as bare trustee for the Endowm¢iit. MW Tbowless-R¢eves, a tstee of the Endowmejjt, is the Senior partner alld d¢sigueted member of Sorbus Partners LLP, who a¢1 os investThent managers lo the Elldowment. He is also a son of AA Reeves, a trust¢¢ of the Endoivment. During the year the End¢)wm¢nt was charged £21,175 (2020 £19,677) foi. investment manager fees for rn8lla8in8 the investment portfolio on behalf of the Endowment. 18
THE BETH JOHNSON ENDOWMEFTr APPEND I 31 DECEMBER 2021 Grants 1971- 1979 235,713 1980-1989 796,763 1990- 1999 1,345.000 2000- 2009 1,646,000 2010-2019 1,764,761 2020 56.000 2021 56,000 Total Grants 5,900,237 19