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2021-04-05-accounts

Charity Registration No. 272948

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

CONTENTS

Page
Legal and administrative information 1
Trustees' report 2 - 3
Statement of trustees' responsibilities 4
Independent auditor's report 5 - 7
Statement of financial activities 8
Statement of financial position 9
Notes to the financial statements 10 - 14

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs J L Robertson Mr I O Robertson Mrs C M Shepherd Mr P M Shepherd Mr J O Shepherd Mr R O Robertson Mrs C E Robertson Mr M J Shepherd Miss A P Robertson Charity number 272948 Principal address West Mount 129 The Mount York YO24 1DU Auditor JWPCreers LLP Genesis 5 Church Lane Heslington York North Yorkshire YO10 5DQ Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their report and financial statements for the year ended 5 April 2021.

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 charity'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 published in October 2019".

The legal and administrative information page forms part of this report.

Objectives and activities

The Trust Deed permits the trustees to apply the Trust to such charities and for such charitable purposes and in such proportions and in such manner and subject to such terms and conditions as they may determine.

The Trust aims to provide financial contributions to organisations (whether voluntary or otherwise) whose purposes are deemed by the trustees to be of benefit to those less fortunate in society or to society in general, with particular emphasis on the North of England.

Under the Trust Deed the trustees have absolute discretion as to the investment of the charity’s funds. The Endowment Fund is represented by the unlisted company shares and therefore not available for reinvestment. Free reserve funds are generally placed on interest bearing deposits.

The policy of the trustees is to donate only to local charities or charities of which the trustees have close personal knowledge, interest or association and particularly those involving young people. Donations are not made to individuals (unless they are part of a group or organisation with charitable status) or local authorities.

All applications to the Trust are considered and responded to by the trustees who provide help and assistance on a purely voluntary basis. The trustees review their policy on donations from time to time.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Trust invests its funds cautiously taking advice as considered appropriate. The Trust does not undertake any activities to raise funds.

The Trust made 10 (2020: 16) donations to 10 charities totalling £320,000 (2020: £312,705) to a wide range of organisations and these are set out in detail in note 4 to the accounts.

Financial review

Reserves policy

The trustees consider that the charity requires an adequate level of reserves in order to protect its long term ability to maintain the level of regular charitable giving, having regard to the charity’s main sources of income. The trustees' future policy is to seek to fully distribute its net income after retaining sufficient to maintain the real value of the Trust’s accumulated reserves.

At 5 April 2021 free reserves were £493,718 (2020: £417,298).

Risk management

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity was established by Trust Deed dated 31 May 1973 and amended 7 March 2020.

Under the Trust Deed, Trustees have the power to appoint additional trustees from time to time.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

The trustees' r eport was approved by the Board of Trustees.

Mr P M Shepherd Trustee Date: 31 January 2022

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2021

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 charity and of the incoming resources and application of resources of the charity for that year.

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

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the 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.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

Opinion

We have audited the financial statements of The Patricia & Donald Shepherd Charitable Trust (the ‘charity’) for the year ended 5 April 2021 which comprise the statement of financial activities, the statement of financial position and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

Auditor's responsibilities for the audit of the financial statements

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

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

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

Our approach was as follows:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nigel Clemit ACA FCCA (Senior Statutory Auditor) for and on behalf of JWPCreers LLP

31 January 2022

Chartered Accountants Statutory Auditor

Genesis 5 Church Lane Heslington York North Yorkshire YO10 5DQ

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

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

Unrestricted
Endowment
funds
funds
2021
2021
Notes
£
£
Income
Investments
2
313,832
-
Expenditure
Charitable activities
3
323,343
-
Net expenditure before
transfers
(9,511)
-
Gross transfers between
funds
-
-
Net expenditure for the year
(9,511)
-
Other recognised gains and losses
Other gains or losses
7
85,931
-
Net movement in funds
76,420
-
Fund balances at 6 April
2020
417,298
18,691,660
Fund balances at 5 April
2021
493,718
18,691,660
Total
Unrestricted
Endowment
funds
funds
2021
2020
2020
£
£
£
313,832
226,829
-
323,343
314,158
-
(9,511)
(87,329)
-
-
-
-
(9,511)
(87,329)
-
85,931
(11,728)
-
76,420
(99,057)
-
19,108,958
516,355
18,691,660
19,185,378
417,298
18,691,660
Total
2020
£
226,829
314,158
(87,329)
-
(87,329)
(11,728)
(99,057)
19,208,015
19,108,958

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

All income and expenditure derive from continuing activities.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2021

Notes
Fixed assets
Investments
8
Current assets
Cash at bank and in hand
Creditors: amounts falling due within one year
9
Net current assets
Total assets less current liabilities
Income funds
Endowment funds
Unrestricted funds
2021
£
432,780
(326,000)
£
19,078,598
106,780
19,185,378
18,691,660
493,718
19,185,378
2020
£
119,791
(3,500)
£
18,992,667
116,291
19,108,958
18,691,660
417,298
19,108,958

The financial statements were approved by the Trustees on 31 January 2022

Mr P M Shepherd

Trustee

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

Charity information

The Patricia & Donald Shepherd Charitable Trust is an unincorporated charity registered in England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, "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) (issued in October 2019)" and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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 charity.

The financial statements have been prepared under the historical cost convention as modified for the fair value of investments. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Investment income is accounted for in the period in which the charity is entitled to receipt.

1.5 Expenditure

Expenditure is included on an accruals basis.

Support costs have been allocated in full to charitable activities.

Grants payable are accounted for as they are payable. The trustees correspond regularly to approve these grants.

1.6 Fixed asset investments

Investments listed on a recognised UK Stock Exchange are included in the accounts at the published fair value on the latest trading date in the reporting period and are reported in the accounts at the mid-price.

Unlisted investments were revalued in 2019 by a third party applying an appropriate valuation methodology and assessed for impairment regularly. These shares generate a regular return by way of dividend and their yield generating ability has remained consistently robust over the past years.

The surplus on revaluation to fair value at the year end is shown as gains or losses in the Statement of Financial Activities.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks .

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs .

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction pric e . Financial liabilities classified as payable within one year are not amortised.

2 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Income from investments 313,735 226,460
Interest receivable 97 369
313,832 226,829

3 Charitable activities

Charitable Charitable
Expenditure Expenditure
2021 2020
£ £
Grants payable (see note 4) 320,000 312,705
Reversal of old cheques (1,000) (200)
Share of support costs (see note 5) 2,543 193
Share of governance costs (see note 5) 1,800 1,460
323,343 314,158

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

4 Grants payable

Grants to institutions:
Age UK York
Antibiotic Research UK
St Nicks
SASH
Shepherd Group Brass Band
Special Boat Service Association
St Leonards Hospice
The Island
York Rescue Boat
York Early Music Centre
York Food Bank
York Museums Trust
York Theatre Royal
York Against Cancer
Grants and donations under £3,500
Support costs
2021
Support costs
Governance
costs
£
£
Bank charges
70
-
Other administrative costs
-
-
Legal fees
1,200
-
Accountancy fees
1,273
-
Audit fees
-
1,800
Independent examiners fee
-
-
2,543
1,800
Analysed between
Charitable activities
2,543
1,800
Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
-
10,000
25,000
25,000
-
5,000
30,000
35,000
12,000
24,000
50,000
50,000
40,000
100,000
22,000
12,000
45,000
-
-
4,205
-
10,000
45,000
-
-
30,000
50,000
-
1,000
7,500
320,000
312,705
2020
2021
Support costs
Governance
costs
2020
£
£
£
£
70
60
-
60
-
133
-
133
1,200
-
-
-
1,273
-
-
-
1,800
-
-
-
-
-
1,460
1,460
4,343
193
1,460
1,653
4,343
193
1,460
1,653
Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
-
10,000
25,000
25,000
-
5,000
30,000
35,000
12,000
24,000
50,000
50,000
40,000
100,000
22,000
12,000
45,000
-
-
4,205
-
10,000
45,000
-
-
30,000
50,000
-
1,000
7,500
320,000
312,705
2020
2021
Support costs
Governance
costs
2020
£
£
£
£
70
60
-
60
-
133
-
133
1,200
-
-
-
1,273
-
-
-
1,800
-
-
-
-
-
1,460
1,460
4,343
193
1,460
1,653
4,343
193
1,460
1,653
312,705
2020
£
60
133
-
-
-
1,460
1,653
1,653

5 Support costs

6 Trustees

None of the trustees received any remuneration or benefits from the charity during the year.

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

7 Other gains or losses
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Unrealised (losses)/gains on investment assets 85,931 (11,728)
8 Fixed asset investments
Investment assets
£
Valuation
At 6 April 2020 18,992,667
Unrealised gain 85,931
At 5 April 2021 19,078,598
Carrying amount
At 05 April 2021 19,078,598
At 05 April 2020 18,992,667

All investment assets are held in the UK.

The unlisted securities represent shares in Shepherd Building Group Ltd, who appointed PWC Chartered Accountants as independent valuers to place a fair value on the company shares in 2019. The price per share was determined to be £1,073.

Investments at fair value comprise:
UK Equity share
Other unlisted securities
9
Creditors: amounts falling due within one year
Accruals
2021
£
386,938
18,691,660
19,078,598
2021
£
326,000
2020
£
301,007
18,691,660
18,992,667
2020
£
3,500

THE PATRICIA & DONALD SHEPHERD CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

10 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Endowment
funds
2021
2021
£
£
Fund balances at 5 April 2021 are represented by:
Investments
386,938
18,691,660
Current assets/(liabilities)
106,780
-
493,718
18,691,660
Unrestricted
funds
Endowment
funds
2020
2020
£
£
Fund balances at 5 April 2020 are represented by:
Investments
301,007
18,691,660
Current assets/(liabilities)
116,291
-
417,298
18,691,660
Total
2021
£
19,078,598
106,780
19,185,378
Total
2020
£
18,992,667
116,291
19,108,958

11 Related party transactions

Mr P M Shepherd is a trustee for both the charity and York Against Cancer a grant beneficiary (note 4) . In 2021 the charity donated £50,000 to York Against Cancer with the balance outstanding at year end (2020: nil).