HORNE FOUNDATION
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
REGISTERED CHARITY NUMBER 283751
HORNE FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 5 April 2021
Contents
| Trustees' report | 1 |
|---|---|
| Statement of trustees' responsibilities in respect of the Trustees' Report and the financial statements | 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 to 9 |
Registered number 283751
HORNE FOUNDATION COMPANY INFORMATION 5 April 2021
| Trustees | E J Davenport |
|---|---|
| R M Harwood | |
| C A Horne | |
| Secretary | R M Harwood |
| Principal office of charity | PO Box 6165 |
| Newbury | |
| RG14 9FY | |
| Bankers | National Westminster Bank Plc |
| 41 The Drapery | |
| Northampton | |
| NN1 2EY | |
| Independent Examiner | Debra Knighton FCCA |
| Spencer Gardner Dickins Limited | |
| 3 Coventry Innovation Village | |
| Cheetah Road | |
| Coventry | |
| CV1 2TL | |
| Investment Managers | Rathbones |
| Port of Liverpool Building | |
| Pier Head | |
| Liverpool | |
| L3 1NW |
HORNE FOUNDATION REPORT OF THE TRUSTEES for the year ended 5 April 2021
Trustees report
The trustees present their annual report and financial statements of the charity for the year ended 5 April 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and the Charities Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS102.
STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution
The foundation was established and is governed by a Trust Deed dated 23 October 1981. All of the trustees, who are shown on the previous page, served throughout the year. The foundation is a registered charity and has confirmed its charitable status with the Inland Revenue.
The power to appoint new trustees rests with the existing trustees.
Organisation structure
The trustees meet at three monthly intervals to agree donations and to monitor finances. Day to day administration is performed on an occasional basis from the trustees home.
Related Parties
Details of transactions between trustees and the charity are given in note 9 of the financial statements.
Risk review
The trustees have considered the major risks to which the charity is exposed, and procedures have been established to mitigate those risks.
OBJECTIVES AND ACTIVITIES
Objects of the charity
The objects of the charity are the advancement of education and other such charitable purposes as the trustees may determine.
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, in planning future activities, and setting the grant making policy for the year.
It is the future intention of the trustees to transfer the investments held by the organisation to a charity, or group of charities, where they would be better used to fulfil the objects of the charity.
Grant making policy
The policy of the trustees is to make substantial grants towards major educational projects that involve new buildings, once every few years. In addition, there are regular smaller donations to local projects in the Northampton and Oxfordshire area, and student bursaries for higher education through Northampton schools. One off donations to National Charities are also made when the trustees deem appropriate.
The trustees are aware that in recent years National Charities have been the main beneficiaries of the charity. However, it is their intention to transfer the investments held to a charity, or group of charities, that share The Horne Foundation's charitable objectives so that they can be better utilised.
ACHIEVEMENTS AND PERFORMANCE
Investment policy
It is the policy of the trustees to invest a substantial part of the charity's funds in a wide range of shares listed on the London and overseas stock exchanges, including fixed rate securities and equities.
Unrealised and realised gains on investments during the year represent 24% of the value of investments at the beginning of the year.
FINANCIAL REVIEW
Reserves policy
The policy is to normally distribute an amount approximately equal to the investment income received. This is not strictly adhered to since large donations towards building projects are not regularly spaced.
Financial
The financial progress of the foundation is disclosed in the financial statements. Details of the grants made are disclosed in note 4. Total investments at 5 April 2021 were £8,237,338 (2020 - £6,516,365) which resulted in an increase of £1,720,974.
The net assets of the fund, at 5 April 2021, are £8,252,016 (2020: £6,537,292).
PLANS FOR FUTURE PERIODS
The aim for the future is to continue to make grants towards educational projects and to continue to invest funds in shares listed on the stock exchanges.
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HORNE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES
for the year ended 5 April 2021
| Note Income from charitable activities Investment income 2 Total income Expenditure on charitable activities Cost of generating funds 3 Charitable expenditure Grants and donations 4 Governance costs 5 Total expenditure Net income before investment gains Net gains/(losses) on investments Realised Unrealised Net movement in funds Balance brought forward at 6 April 2020 Balance carried forward at 5 April 2021 |
Unrestricted funds Unrestricted funds 2021 2020 £ £ 210,423 111,587 |
|---|---|
| 210,423 111,587 |
|
| 28,324 27,783 20,000 10,000 3,415 3,603 |
|
| 51,739 41,386 |
|
| 158,684 70,201 108,590 (42,623) 1,447,450 (457,773) |
|
| 1,714,724 (430,195) 6,537,292 6,967,487 |
|
| 8,252,016 6,537,292 |
All income and expenditure has arisen from continuing activities.
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2/2/22
HORNE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2021
1 Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to the accounts. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS102.
The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year.
Going Concern
The financial statements are prepared on a going concern basis as the trustees are of the opinion that sufficient funds are available to enable the charity to continue operating
At the time of approving the financial statements, the trustees have assessed the charity's situation regarding the COVID‐ 19 pandemic and the likely impact on the charity. The trustees have a reasonable expectation that the charity has adequate resources and reserves to continue in operational existence for the foreseeable future to deal with the issues arising from the COVID‐19 pandemic. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Income
Dividends are accounted for on a receivable basis. Interest is accounted for on an accruals basis
Expenditure
Expenditure is classified under type of expense, and accounted for on an accruals basis. Grants payable are charged in the year when the offer is conveyed to the recipient, except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.
Costs of generating funds comprise investment management fees. Governance costs comprise costs for the running of the charity, itself, as an organisation.
Investments
Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
Funds
The unrestricted general funds represent 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 specific purposes.
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HORNE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2021
Realised 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 purchase value. Unrealised gains and losses are calculated as the difference between fair value at the year end and their carrying value.
2 Investment income
| 2 Investment income |
|||
|---|---|---|---|
| Dividend income received Interest received Interest from fixed rate investments Other investment revenue 3 Cost of generating funds Investment management fees 4 Grants and donations Donations Grants 2 grants to national appeals (2020:1) as follows: Crisis UK St Martins Housing Trust Grants to local appeals ‐ nil (2020:0): Grants to individual students ‐ nil (2020:0) |
2021 £ 92,464 3,253 24,706 90,000 210,423 2021 £ 28,324 £ £ ‐ 10,000 10,000 ‐ ‐ 20,000 20,000 2021 |
2020 £ 84,736 7,105 19,746 ‐ 111,587 2020 £ 27,783 £ £ ‐ 10,000 ‐ ‐ 10,000 10,000 2020 |
|
| 10,000 |
The normal policy of the trustees is to make substantial grants towards major educational projects that involve new buildings, once every few years. In addition, there are regular smaller donations to local projects in the Northampton and Oxfordshire area, and student bursaries for higher education through Northampton schools. In recent years however, this has not been possible and as a result one off donations to National Charities have been made when the trustees deem appropriate.
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HORNE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS ‐ CONTINUED for the year ended 5 April 2021
| 5 Governance costs Administration charge Accountancy fees Other costs 6 Investments Market value at beginning of year Acquisitions at cost Disposal at opening book value (Loss)/Profit on revaluation at end of year Cash awaiting investment Market value at end of year At market value: United Kingdom Overseas Bank and short term deposits |
2021 £ 366 2,988 61 3,415 2021 £ 6,473,941 1,059,638 (940,113) 1,549,799 8,143,265 94,073 8,237,338 Listed Other £ £ 5,306,553 ‐ 2,836,712 ‐ ‐ 94,073 8,143,265 94,073 2021 |
2021 £ 366 2,988 61 |
2020 £ 342 3,200 61 3,603 2020 £ 6,215,934 915,687 (161,239) (496,441) 6,473,941 42,424 6,516,365 Listed Other £ £ 4,076,769 ‐ 2,397,172 ‐ ‐ 42,424 6,473,941 42,424 2020 |
2020 £ 342 3,200 61 |
|---|---|---|---|---|
| 3,415 | 3,603 | |||
| 2021 £ 6,473,941 1,059,638 (940,113) 1,549,799 |
2020 £ 6,215,934 915,687 (161,239) (496,441) |
|||
| 8,143,265 94,073 |
6,473,941 42,424 |
|||
| 8,237,338 | 6,516,365 | |||
| 94,073 | 42,424 |
The historical cost of the investment portfolio was £5,620,119 (2020: £5,340,355).
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HORNE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ‐CONTINUED for the year ended 5 April 2021
| 7 Investment income receivable 8 Liabilities: Amounts falling due within one year Accruals 9 Related parties Prepayments and accrued income |
2021 £ 3,979 2021 £ 3,300 |
2020 £ 4,096 |
|---|---|---|
| 2020 £ 3,287 |
||
No trustees were paid salary for 2021 and 2020. There were no trustees expenses paid during the year (2020 ‐ 0). The average number of employees during the year was 0 (2020 ‐ 0).
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