THE THREE OAKS TRUST
TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
| CONTENTS | |
|---|---|
| Page | |
| Reference and Administrative Information Page | 3 |
| Trustees’ Report | 4-14 |
| Structure, governance and management | |
| Trustee’s responsibilities in relation to the financial statements | |
| Statement of public benefit | |
| Objectives | |
| Listing of donations | |
| The Trust’s Assets | |
| Investment strategy | |
| Grant making policy | |
| Strategic Report | |
| Auditor’s Report | 15-17 |
| Statement of Financial Activities | 18 |
| Balance Sheet | 19 |
| Notes to the financial statements | 20-27 |
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THE THREE OAKS TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
Reference and Administrative Information
Charity Registration Number: 297079 Corporate Trustee: The Three Oaks Family Trust Company Limited (Registered number: 1991868) Trustees: (i.e. directors of the Mrs E L D Chandy corporate trustee) Mrs S I Ellery Mrs P E Hobbs Mrs S A Kane Dr P Kane Mrs D M Ward Mr G D Wilkinson Mrs P A Wilkinson Principal office: The Three Oaks Family Trust Company Limited 65 Worthing Road Horsham, West Sussex RH12 1TD Auditor: Richard Place Dobson Services Limited 1-7 Station Road Crawley West Sussex RH10 1HT Bankers: CAF Bank 25 Kings Hill Avenue King’s Hill West Malling, Kent ME19 4JQ
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
The directors of the Corporate Trustee (herein referred to as “the trustees”) present their report with the financial statements of the charity for the year ended 30 September 2023. The trustees have adopted the provisions of 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 total value of donations in the year was £414,503 a substantial increase over the previous year and a new high for the charity. Income increased to £472,561 and the value of the charities’ assets remained stable at £16.8m. Both are good outcomes under prevailing market conditions and leave the Trust well placed to meet its objectives in 2024.
1. Structure, governance and management
The charity is constituted by a Deed of Trust dated 11[th] June 1987 and is registered with the Charity Commission, Charity Registration no. 297079. The fund originates from a single settlement from an individual donor. The object of the Charity is to provide funds for such charitable purposes as the Trustees in their absolute discretion think fit.
The statutory power to appoint new trustees lies with the trustees themselves.
The Charity is administered by the Directors of the Corporate Trustee (The Three Oaks Family Trust Company Limited) and does not have any employees. The Directors of the Three Oaks Family Trust Company Limited who served during the year are:
Denise Chandy, social worker, retired Susan Ellery, social work consultant, retired Polly Hobbs, trade union official, retired Sarah Kane, social worker, retired Paul Kane, consultant earth scientist, retired Dianne Ward, teacher, retired Pam Wilkinson, social worker, retired Giles Wilkinson, chartered civil engineer, retired
Three of the above have been Directors since the charity was founded in 1987.
The majority of the charity trustees are retired professionals and are mindful of the need to address the issue of continuity of the charity and the collective breadth and depth of expertise of the trustees. All trustees have access to past documentation, minutes, briefing notes, reports and accounts. The trustees are encouraged to attend courses which they feel are relevant to the development of their role and to keep up-to-date with changes in legislation.
The charity’s trustees are ultimately responsible for the policies, activities and assets of the charity. The charity holds regular meetings to discuss the business of the trust. The meetings have a standard format. Discussion of the minutes of the previous meeting is followed by the Chairman’s report which deals with current issues and a number of standing items including:
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
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Events in the last Quarter including visits and meetings
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Donations made in the last Quarter
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Trustees’ reports
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Donations pending
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Bank balances
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Investment performance and related matters
Trustees present their individual reports on their activities, including visits. There follows a review of applications for funding. Those trustees that make donations on behalf of individuals present any matters arising. Standing items on the agenda include a statement of investment activity and performance. Topics are introduced and discussed as they are indentified. On an occasional basis, the trustees invite speakers from organisations that the Trust either supports or is considering supporting.
The on-going task of liaising with the Trust’s professional advisors has been delegated to Dr Kane. Dr Kane is assisted in this role by Mr Wilkinson and Mrs Hobbs. Dr and Mrs Kane deal with the day to day administration of grants and the processing and handling of applications from registered charities and institutions between quarterly meetings. Mrs Kane, Mrs Wilkinson and Mrs Chandy have discretion to deal with applications for funding made on behalf of individuals.
The onset of the Covid pandemic in early 2020 necessitated a number of changes to the way in which the Trust operated. Now, after several years, the revised way of working has become the norm. Fewer in-person meetings now take place and the trustees continue to hold virtual meetings between themselves, with professionals and with supported charities. Generally, this has been satisfactory for all concerned – it has cut costs and made for the more efficient use of people’s time. It is recognised however that there is a downside in terms of social cohesion and relationships between trustees and charities. The trustees regard in-person meetings as an essential part of their work in monitoring the activities of the charities that they support.
All donations are now made by bank transfer with paperwork being received or sent electronically. Compared with pre-pandemic arrangements, the new ways of working have cut costs and reduced the time elapsed between applications being submitted and clients receiving support. The quantity of unsolicited requests and other communications received by post is modest, but annoyingly this is not the case for electronic traffic. All donations are made through CAF Bank and all require dual authorisation and electronic verification.
The charity does not engage in any fund-raising activities.
2. Trustees’ responsibilities in relation to the financial statements
The trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
The law applicable to charities in England and Wales requires the trustees to prepare accounts 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 accounts, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts 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.
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.
3. Statement on public benefit
The Trust is a grant making charity. It exists solely for the purpose of supporting other organisations and individuals in need. The trustees have taken account of the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees have considered how planned activities will contribute to the charity’s aims and objectives as described below. The trustees decide which causes to support on the basis of merit and the information available. The trustees manage the Trust’s funds in a sustainable way designed to ensure the Trust’s future and to maximise future public benefit.
4. Objectives
The stated aim of the charity is ‘To further the well-being of individuals and families who may for whatever reason be in distress’. This rather vague statement correctly identifies the beneficiaries of the Trust’s activities, but does little to describe how the charity works to meet this aim. This is best appreciated by reference to the pattern of donations that was established from the outset and which continues to date.
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
The charity provides support for individuals and families in the UK. The charity supports other charities that assist people with health, psychological and emotional difficulties. It also more directly supports individuals with these difficulties.
In summary, and for the current year:
The value of donations made this year totalled £414,503 (£339,095 in 2022). £245,265 (61%, 37 donations) (£216,717 in 2022) was donated to UK registered charities and institutions that promote the welfare of individuals and families. As in previous years, a number of small donations were made more directly for the benefit of individuals via statutory authorities and voluntary agencies. This year 519 (392 in 2022) such donations were made with a net value, taking account of refunds, of some £115,238 (28%)(£85,880 in 2022). Donations to charities and institutions whose focus of work is overseas were made to a value of £45,000 (11%, 6 donations)(£36,498 in 2022).
Donations made for the benefit of individuals by the Trust are seen as a major component in the support of families and individuals in the community. The Trustees have provided regular support to West Sussex County Council and to Surrey County Council for the specific requirements of individuals as recommended by health visitors and social workers. In this capacity the Trust also supports a number of housing associations and mental health teams.
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
5. Listing of Donations made to Registered Charities and Institutions
| LISTING OF DONATIONS TO CHARITIES AND INSTITUTIONS | |
|---|---|
| UK | Amount |
| BEAM,ESOL courses,London | 10,000 £ |
| Bramber Bakehouse - vulnerable women | 3,000 £ |
| Canaan Project -youngwomen,Tower Hamlets | 8,500 £ |
| Carer's Support West Sussex | 750 £ |
| CDA for familysupport work,Sussex | 10,000 £ |
| ChangingTunes - Fordprison | 6,000 £ |
| CrawleyOpen House for the homeless | 10,000 £ |
| Dementia Support - Outreach | 5,000 £ |
| Epsom & Ewell Refugee Network | 3,553 £ |
| Equine Partners - Bursary | 3,000 £ |
| FamilyFoundations Trust - Dalesdown - Bursary | 6,000 £ |
| Fellowshipof St Nicholas - foodpantry,East Sussex | 7,500 £ |
| Guild Care - TimeOut | 5,000 £ |
| HomeStart - early years support,Chichester | 7,500 £ |
| Homestart - early years support,Crawley | 10,000 £ |
| Horsham Matters - Foodbank | 10,000 £ |
| Horsham Refugee Support | 2,000 £ |
| Islington People's Rights | 5,000 £ |
| Leatherhead Youth Project | 10,000 £ |
| Macular Disease Society,support services,West Sussex | 3,000 £ |
| Makingit Out,ex-offenders,West Sussex | 4,896 £ |
| MindOut - LGBTQ mental health. Brighton and Hove | 8,316 £ |
| Nerve Tumours - support services | 10,000 £ |
| Phoenix Stroke Club,Horsham | 10,000 £ |
| Place2Be - family practitioner role,Croydon | 10,000 £ |
| QE2 school - Horsham | 1,250 £ |
| Rockinghorse - Hospital Youth Worker,Brighton | 5,000 £ |
| Support Through Court,legal support | 10,000 £ |
| Switchback -prison leavers | 5,000 £ |
| Ten Little Toes - babybank | 5,000 £ |
| The Masic Foundation,supportgroups | 3,000 £ |
| The Springboard Project,Horsham | 15,000 £ |
| Time to Talk Befriending,vulnerable olderpeople,Sussex coast | 5,000 £ |
| TurningTides - RoffeyPlace,Horsham | 10,000 £ |
| TurningTides - social workerpost | 10,000 £ |
| Waltham Forest Dyslexia Association | 10,000 £ |
| Windmills OpportunityPlaygroup,Burgess Hill | 6,000 £ |
| Value of UK Donations | 254,265 £ |
During the year, the Trust made a number of donations to charities and institutions whose focus of work is overseas. The charities or projects supported by the Trust are now only in areas where the trustees visit or can send representatives. The trustees take the view that close supervision and monitoring of overseas projects is essential because of the ever present risks arising from issues of governance, operational activities and financial controls. The Trust is reducing the number of overseas projects that it supports because of the difficulty of monitoring activities adequately. The following overseas activities were supported during the year.
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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
| Overseas | Amount |
|---|---|
| AmplifyingVoices - Kenya(Vox Radio) | 5,000 £ |
| Children on the Edge - Kachin State,Myanmar | 12,000 £ |
| John Fawcett Foundation - Bali,Indonesia | 6,000 £ |
| Juconi Ecuador | 5,000 £ |
| Purple CommunityFund - Philippines | 12,000 £ |
| Samara's Aid - Earthquake relief,Syria | 5,000 £ |
| Value of Overseas Donations | 45,000 £ |
6. The Trust’s Assets
At the year-end the Trust’s assets were valued at £16.8m (£16.5 in 2022). All the Trust’s assets are financial assets made up of cash held at CAF Bank, a portfolio managed by Quilter Cheviot and a group of CCLA COIF Funds.
Acquisition and disposals of fixed asset investments during the year are recorded in the notes to the accounts.
7. Investment strategy
There are no restrictions on the charity’s power to invest and the trustees have adopted a multi-manager policy and taken steps to mitigate identified risks from a variety of sources. The overall strategy is to hold the Trust’s assets in different portfolios with each managed in a different way. The managers are Quilter Cheviot and CCLA COIF. The trustees have discretion to allocate capital for the purposes of making donations and to this end all the funds are managed on a total return basis.
The Quilters portfolio is actively managed on a total return basis with a view to maintaining the value of the portfolio whilst paying out a sustainable income for the purpose of making donations. The manager and the trustees periodically discuss activity on the portfolio. The CCLA common investment funds are actively managed, but the Trust has no role in their management other than to decide whether to invest and how to allocate assets between the funds.
At the year-end 2023, the portfolio valuations were as follows:
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Portfolio of investments managed by Quilter Cheviot: £5.2m
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A group of Fund managed by CCLA COIF: £11.4m
The breakdown of COIF funds was as follows:
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Deposit Fund: £1.0m 9.1%
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Investment Fund: £5.3m 46.7% Global Equity Fund: £2.9m 25.3% Property Fund: £1.2m 10.1% Ethical Fund: £1.0m 8.7%
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
8. Grant making policy
Trustees provide funds for charitable purposes at their discretion. The Trust makes grants available to both individuals and organisations. Guidelines for grant-seekers are available on the charity’s web site. These guidelines are as follows:
8.1 For Organisations
Grants are made to organisations that promote the welfare of individuals and families. In general, the trustees intend to continue supporting the organisations that they have supported in the past. Periodically and generally bi-annually the trustees review the list of registered charities and institutions to which grants have been given and consider additions and deletions from the list. To save on administration, the trustees do not respond to requests from ‘new’ charities unless they are considering making a donation. Charities with whom the Trust has an established relationship are generally required to submit a new application each year. As highlighted above, the Trust will not respond to new direct requests from overseas.
8.2 For Individuals Direct applications from individuals will not be considered.
Applications from invited, local, statutory and voluntary organisations are considered. To save on administration, only organisations in these categories will receive a reply.
Grants are made on behalf of clients with, for example, the following problems - mental health, learning difficulties, physical handicaps, low-income families, single parents and the long-term sick. In the case of long-term difficulties, the trustees are most likely to be sympathetic to a request if the person or family on behalf of whom the request is being made, is able to reflect on whether there are any changes they could make to prevent the same problems reoccurring.
In the case of psychologically vulnerable client groups such as the mentally ill or those with learning difficulties, the trustees would like to know whether the client is being given support with budgeting from the statutory services and, if relevant, whether the client is able to make plans to avert future problems.
The trustees need to know the full cost of the grant needed, or in the case of larger items (up to £300), the trustees need to know what contribution is being requested of the Trust. The trustees would like to know which other Trusts have been approached for any specific request. Details of the agency to which the payment should be made should always be included in the application. The grants made may cover such items as basic furnishings, clothing, a contribution to the cost of household appliances, telephone connections and small grants for educational purposes.
In order to maintain consistency of approach and response from the Trust, an application form is available and can be downloaded from the website. The intention is that professionals should make use of the form in order that the trustees can make informed choices regarding donations.
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
The Trust does not intend to expand further the scope of donations made for the benefit of individuals. Currently all the applications made on behalf of individuals receive a response, but this would cease to be the case if applications substantially increased in number.
Although the Trust has an interest in overseas projects, it will not sponsor individuals in gap year work or similar activities. Applications (however well presented) will not be answered. The trustees wish to make this clear in order to prevent time being wasted on applications. Please note - individuals or charities should not assume a stamped addressed envelope will produce a reply.
STRATEGIC REPORT
9. Achievements and performance
The Trust’s record of history of donations, income and assets is illustrated in Figures 1-2.
The Three Oaks Trust donated £414,503 to charitable causes in the year ended 30 September 2023. The increase in income generated by the Trust’s COIF funds is now fully supporting the current level of donations as shown in Figure 1.
Of the total donated, 61% went to UK registered charities and institutions, 11% to organisations whose work is mostly overseas and 28% in the form of small donations for the benefit of individuals (Figure 2). Three of the trustees assess applications received on behalf of individuals and firmly believe that these small donations can make a big difference to the individuals involved and their families.
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THE THREE OAKS TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
The charities supported in the UK are variously local charities known to the trustees, or charities brought to the attention of the trustees through personal or professional contacts. The Trust tends to make annual donations to these charities subject to satisfactory feedback. Where the Trust contributes to the salary of a charity worker, the trustees will consider a commitment to multi-year funding. For the charities that the Trust gives significant donations to year after year, it is usual for the trustees to make visits.
The trustees are generally satisfied that the Trust is meeting its stated aim in a cost-effective manner.
10. Financial Review
10.1 Results for the year
The Trust is reliant on the income from its investments in order to make donations. At the year end the Trust held assets of £16.8m. The trustees are mindful of the need to manage investment risk and reduce costs and have adopted a multi-manager strategy. Donations to a total value of £414,503 were made during the year.
10.2 Future commitments
The charity rarely enters into specific written commitments regarding future funding. The trustees expect that the level of donations in the coming year will continue at or above the current level. The trustees are actively encouraged to seek out new funding opportunities with a preference for small, local charities.
10.3 Reserves policy
The Charity has sufficient funds to maintain its current distributions. The Trust’s investment policy seeks to maintain a balance between capital growth and income and operates on a Total Return basis. The policy seeks to maintain the value of the Trust’s investments in
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
real terms, whilst releasing money for donations. The trustees maintain a reserve separate from the investment managers to meet unexpected eventualities.
11. Future plans
The trustees will continue to pursue a multi-manager investment strategy. The trustees will continue to ensure that investment performance is optimised to balance asset protection and income and ensure that there are sufficient funds to meet the anticipated schedule of donations.
The trustees do not anticipate any significant changes to the charity’s grant-making strategy in the coming year and will continue to support many of the organisation that it has established relationships with. The trustees are mindful that, with the increase in income in recent years, they can increase the level of grants made and support additional causes.
12. Risk management
A risk assessment has been carried out for The Three Oaks Trust. This assessment considered a number of risks and appropriate systems and procedures for managing those risks. The main areas of risk considered were:
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Governance and oversight
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Operational activities; and
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Financial activities.
Issues considered under the heading of governance included continuity of the charity, the depth and breadth of expertise of the trustees and its charitable and investment policies. The trustees have acted to increase their number and the range of expertise available within the charity. The trustees’ skills and training are aligned with the charity’s objectives and activities, but are periodically reviewed to ensure that they are collectively suitable to deal with anticipated future developments and for the purpose of assessing the services provided by professional advisers.
Operational risks include the need to meet statutory and legal requirements, management, secretarial and administrative activities and the assessment and handling of donations. Risks arise both from the trustees’ activities and from the services provided by professional advisers. Steps have been taken to limit the risks arising from these sources.
Financial risks include loss of income, loss of capital and misappropriation of funds. These may arise from poor budgetary control, inappropriate spending or transfer of funds, poor accounting and inappropriate investment policies. Steps have been taken to limit the risks in all these areas.
Variability of investment returns constitutes a risk for the charity because it is a grant making charity dependent on its investments for income. To address this issue, the trustees are using a total return approach to investment which they consider will stabilise the resources available for grant making. The trustees have adopted a multi-manager investment strategy. It is hoped that this approach will reduce risk, cut costs and increase performance.
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THE THREE OAKS TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH SEPTEMBER 2023 The above assessment and its design is inlended lo address the obvious, readily identilioble ond every presenl risks bul ollers little protection ogainst 'black swan. evenls such as the 2020 Covid pandemic. The charities Ihol the Trust supports have oll been allected lo vorying degrees. Some by disruption ol their seNices ond their fund-raising oclivities, others by increased demond lor services. Depending on the noture ol their work, some have been forced 10 shul down, whilst others hove been oble lo make the transition lo remote working. The Three Ook5 Trusl hos been lortur)ale in being o gronl-moking chorily Ihal w05 lorluilou51y oble lo incre05e both the value ol ils asse15 and Ihe number and volue ol donations mode during the pondemic. Operationally. the Irusl hos always been run by ils Irv51ees from their homes. hos no employees and has Iransilioned lo virtual commvnicalions. The Tru51 has moved enlirely lo on-line bonking and greally reduced Ihg amount ol paperwork hondled. These changes have incre05ed solely, reduced coslsand Increased Ilexibilily ond responsiveness. TRUSTEE The Three Oaks Family Trust Compony Ltd wos the Trustee in ollice during the year. No Director ol the Three Oak5 Family Trust Company Ltd had any beneficial interest in any contract made with Ihe charily during the yeor. For and on beholl ol the Three Oaks Fomily Trust Company Ltd. Dr P. Kane Director Mrs S. A. Kane Director Dale ol approval by the Director5 of the Corporole Trustee.. 2024 RCN 297079 14
THE THREE OAKS TRUST AUDITOR’S REPORT FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
Opinion
We have audited the financial statements of The Three Oaks Trust (the ‘charity’) for the year ended 30 September 2023 which comprise the statement of financial activities, the balance sheet and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 30 September 2023 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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THE THREE OAKS TRUST AUDITOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We have made enquiries of management, and directors, regarding the procedures relating to identifying, evaluating and complying with
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laws and regulations and whether they were aware of any instances of non-compliance;
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detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
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the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
Discussion among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas:
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Management override of the controls in place
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Revenue Recognition
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business. Journals were reviewed for appropriate authorisation throughout the financial year as well as documentation over regular meetings between grant managers and directors. No evidence of management override of controls was found during the course of our audit work.
Revenue recognition was also identified as a significant risk which could lead to a material mis-statement due to fraud or error. Audit procedures performed included but were not limited to performing walk through tests to identify the control procedures in place and once an understanding of the investment income process was gained, a substantive test was carried out using a sample basis to ensure all dividends existed and were complete in the accounts. Cut off testing was also performed to ensure dividends were recorded in the correct period.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
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THE THREE OAKS TRUST AUDITOR'S REPORT ICONTINUEDI FOR THE YEAR ENDED 30rpi SEPTEMBER 2023 Otlter mxttirs Yoiir illl¢iition 1.% drdivn to Ilie faci ihat the cliaritN lias prLpared finaiicial 51#1eircnts in acLordan¢¢ lih 'Accouniing and Repvning b!. Lhariiie5.' Siam¥Dt of Recc)iTrmciided PrakLICL' appliedble iii cliarilies preping ihcir aethunl% in ttLcordynLL Ii'iih IhL lin?n¢ial RLsNifiin& %ianilard applicttblL in Ilie UK and Klpublic ot. Ii'il&nd IFR£ 1021" Idb din¢ndedl in preferin¢L' lo IliL ALC(iuniing and R¥p(>llinL b). Cliariii¢s.- %iaiLinLni Ll. ReLoiiim¢od¢d Praciii¢ Is5Utd tsn l April ?11115 which is TLlerred lo iii Ihe Lxlani rcgulaiion% bui hd.% noi4'17¢¢n '11[dWn. Thiq has bi¢n donc iii urdL'I' li)r Ihc lin¢incial Slalcm¢nis to providt ll iru¥ and fair vi¢iv in aL¢ordance wilh ¢urr¢ni GenLrfjlli' Use tsf oEtT reyori rL4uifLd Ici %laic Iliein in audIr,% r¢pon and fi)r no oihLf i?Lirp(>%e.'lti Ili¢ lulle.%l eyteni PL'rmill¥d by law,. i%-¥ d() not IlLLLI?I Darr¢n IIHI'di¥ A("J¥ FC'CA DC'h.I Istnior Sl8tu¢ory Aydliori IlschHrd PIAce Dobson S¥rvl¢¢s Idimii¥d T)#i¢'. ChTrYlered Acttsuntant5 StAiutorJ Auilitor RCN 297079
THE THREE OAKS TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30[TH] SEPTEMBER 2023
Current financial year
| Unrestricted Unrestricted funds funds general designated 2023 2023 Notes £ £ Income from: Investments 3 472,561 - Expenditure on: Raising funds Investment management 4 24,745 - Charitable activities 5 424,163 - Total expenditure 448,908 - Net gains/(losses) on investments 10 213,760 - Net incoming/(outgoing) resources before transfers 237,413 - Gross transfers between funds (330,389) 330,389 Net outgoing resources (92,976) 330,389 Other recognised gains and losses Other gains or losses 12 (33,481) - Net movement in funds (126,457) 330,389 Fund balances at 1 October 2022 357,154 16,273,901 Fund balances at 30 September 2023 230,697 16,604,290 |
Total 2023 £ 472,561 24,745 424,163 448,908 213,760 237,413 - 237,413 (33,481) 203,932 16,631,055 16,834,987 |
Total 2022 £ 446,230 27,302 337,340 364,642 (1,145,120) (1,063,532) - (1,063,532) - (1,063,532) 17,694,587 16,631,055 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE THREE OAKS TRUST BALANCE SHEE[ As al 301h September 2023 2023 2022 Ntri¢s Fixed asset5 InviSltnLnts 13 16,604,290 16.278.774 Current X55tts D¢bii)r5 Ca%li at bank and iii h211d 14 94.951 151.569 287,053 246.520 Crettilors.. Allloullts (Alling due wlthin one yl'Ar 368.(184 15 Nci cui'rL'III i55Ct% 23D.697 -152.281 16.1134.9%7 Incoihe funds 16 16.604.?90 230.fy97 Cieneral unrcstriCt¢d luNd.4 16.273,901 -357.154 16.834.987 16,834,987 'riiL linaii¥iJl SldlL'm¥nis' v'Lre dpproN'cd b>. Illl I rusi¢es on Trusttt RCN 297079 19
THE THREE OAKS TRUST
Notes to the financial statements For the year ended 30[th] September 2023
1 Accounting policies
Charity information
The Three Oaks Trust is a Trust which is is constituted by a Deed of Trust dated June 1987.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Trust Deed dated 11th July 1987, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities 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. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. 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.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be earned.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Investment income which includes dividends received, other listed investment income and interest receivable is included in the statement of financial activities in the year in which it is receivable.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
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THE THREE OAKS TRUST Notes to the financial statements (Continued) For the year ended 30[th] September 2023
1 Accounting policies
(Continued)
Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.
Resources expended comprise the following:
a) The cost of generating funds include the fees paid to investment managers in connection with the management of the charity's listed investments, and costs incurred in relation to the investment property.
b) Charitable activities comprise donations and grants payable to individuals, families and organisations who may be in distress, with the principal aim being to further their wellbeing. Grants and donations payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the accounts.
c) Governance costs include costs which are directly attributable to legal procedures necessary for compliance with statutory requirements.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.9 Fund Accounting
The unrestriced fund represent fund avaliable for the general charitable purposes of the charity which may be applied at the discretion of the trustees.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
1.10 Taxation
The charity is not subject to corporation tax or any other taxes on income or gains arising from its charitable objectives.
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THE THREE OAKS TRUST
Notes to the financial statements (Continued) For the year ended 30[th] September 2023
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Income from listed and unlisted investments | 435,063 | 439,176 |
| Interest receivable | 37,498 | 7,054 |
| 472,561 | 446,230 |
4 Raising funds
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Investment management | 24,745 | 27,302 |
| 24,745 | 27,302 | |
| Charitable activities | ||
| Charitable | Charitable | |
| Activities | Activities | |
| 2023 | 2022 | |
| £ | £ | |
| Grant funding of activities (see note 6) | 414,503 | 326,725 |
| Share of support costs (see note 7) | 300 | 275 |
| Share of governance costs (see note 7) | 9,360 | 10,340 |
| 424,163 | 337,340 |
5 Charitable activities
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THE THREE OAKS TRUST
Notes to the financial statements (Continued) For the year ended 30[th] September 2023
| 6 | Grants payable Charitable Activities Charitable Activities 2023 2022 £ £ Grants to institutions: Amplifying Voices 5,000 5,000 Basildon Community RC BEAM 10,000 - 10,000 10,000 Bramber Bakehouse 3,000 - Canaan Project 8,500 7,000 Carer's Support West Sussex 750 - CDAFSW 10,000 10,000 Changing Tunes 6,000 6,000 Children on the Edge 12,000 10,000 Crawley Open House 10,000 10,000 Dementia Support 5,000 - Deptford Action Group Dalesdown Bursary Scheme 6,000 Epsom and Ewell Refuge Network 3,553 - 3,000 5,899 5,800 Equine Partners 3,000 - Freedom of Torture FSN - Fellowship St Nicholas 7,500 Gatwick D Walking Group Guildcare 5,000 - 5,000 5,000 - 7,500 5,000 Homestart Chichester 7,500 - Homestart Crawley 10,000 5,000 Horsham Matters 10,000 - Horsham Refugee Support 2,000 - Islington People's Rights 5,000 - John Fawcett Foundation 6,000 5,000 Juconi Ecuador 5,000 5,000 Lifecentre Leatherhead Youth Project 10,000 Macular Disease Society 3,000 - 4,000 7,500 3,000 Making It Out 4,896 - MindOut 8,316 6,000 MS Society Nerve Tumours 10,000 Pheonix Stroke Club 10,000 Place2Be 10,000 Purple Community Fund 12,000 - 10,000 10,000 10,000 10,000 11,498 QE2 School 1,250 - QM Studios Rockinghorse 5,000 Salisbury Burns Unit - 6,030 5,000 - 2,600 Samara's Aid 5,000 - Support Through Court 10,000 10,000 Switchback 5,000 - Ten Little Toes 5,000 - The Masic Foundation 3,000 - The Springboard Project 15,000 10,000 |
|---|---|
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THE THREE OAKS TRUST
Notes to the financial statements (Continued)
For the year ended 30[th] September 2023
- 6 Grants payable
| Grants payable Time to Talk Befriending Turning Tides Waltham Forest Dyslexia Association Windmills Opportunity Playgroup Women's Aid Luton Grants to individuals |
(Continued) 5,000 - 20,000 10,000 10,000 10,000 6,000 6,000 - 1,388 299,265 253,215 115,238 85,880 414,503 339,095 |
(Continued) 5,000 - 20,000 10,000 10,000 10,000 6,000 6,000 - 1,388 299,265 253,215 115,238 85,880 414,503 339,095 |
|---|---|---|
| 253,215 85,880 |
||
| 339,095 |
7 Support costs
| Support costs Governance costs £ £ Sundry 13 - Website costs 82 - Bank charges 61 - Computer costs 144 - Audit fees - 9,360 300 9,360 Analysed between Charitable activities 300 9,360 |
2023 Support costs Governance costs £ £ £ 13 13 - 82 23 - 61 95 - 144 144 - 9,360 - 10,340 9,660 275 10,340 9,660 275 10,340 |
2022 £ 13 23 95 144 10,340 |
|---|---|---|
| 10,615 | ||
| 10,615 |
Governance costs includes payments to the auditor of £9,600 for audit and accountancy fees.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year.
9 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | ||
|---|---|---|
| 2023 | 2022 | |
| Number | Number | |
| Total | - | - |
| There were no employees whose annual remuneration was more than £60,000. |
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THE THREE OAKS TRUST
Notes to the financial statements (Continued) For the year ended 30[th] September 2023
10 Net gains/(losses) on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Revaluation of investments | 207,082 | (1,145,120) |
| Gain/(loss) on sale of investments | 6,678 | - |
| 213,760 | (1,145,120) |
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12 Other gains or losses
| Other gains or losses | ||
|---|---|---|
| Unrestricted | Total | |
| funds | ||
| general | ||
| 2023 | 2022 | |
| £ | £ | |
| Foreign exchange gains | 33,481 | - |
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THE THREE OAKS TRUST
Notes to the financial statements (Continued) For the year ended 30[th] September 2023
13 Fixed asset investments
| Listed investments Unlisted investments £ £ Cost or valuation At 1 October 2022 5,019,499 11,259,275 Additions 177,154 Valuation changes 245,836 (32,076) Cash movement (94,431) 200,000 - Disposals (170,967) - At 30 September 2023 5,177,091 11,427,199 Carrying amount At 30 September 2023 5,177,091 11,427,199 At 30 September 2022 5,019,499 11,259,275 |
Total £ 16,278,774 177,154 213,760 105,569 (170,967) |
|---|---|
| 16,604,290 | |
| 16,604,290 | |
| 16,278,774 |
The below investments held by the charity had a market value of more than 5% of the portfolio total at year end: COIF Investment Fund - £5,340,533
COIF Global Equity Income Fund - £2,894,906 COIF Ethical Investment Fund - £990,164
COIF Charities Property Fund - £1,156,595
14 Debtors
| 14 Debtors |
||
|---|---|---|
| Amounts falling due within one year: Other debtors 15 Creditors: amounts falling due within one year Other creditors Accruals |
2023 £ 94,951 2023 £ 6,224 9,599 15,823 |
2022 £ 81,031 |
| 2022 £ 5,500 10,303 |
||
| 15,803 |
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THE THREE OAKS TRUST Notes to the financial statements (Continued) For the year ended 30[th] September 2023
16 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Balance at 1 October 2021 £ Investment fund 17,474,119 17,474,119 |
Transfers Balance at 1 October 2022 £ £ (1,200,218) 16,273,901 (1,200,218) 16,273,901 |
Transfers Balance at 30 September 2023 £ £ 330,389 16,604,290 330,389 16,604,290 |
Transfers Balance at 30 September 2023 £ £ 330,389 16,604,290 330,389 16,604,290 |
|---|---|---|---|
| 16,604,290 |
The investment fund was set up to represent the funds the charity has tied up in investments. They use the income from these funds to make donations to individuals and charitable organisations.
17 Analysis of net assets between funds
| Unrestricted funds 2023 £ Fund balances at 30 September 2023 are represented by: Investments - Current assets/(liabilities) 230,697 230,697 |
Designated funds 2023 £ 16,604,290 - 16,604,290 |
Total Unrestricted funds 2023 2022 £ £ 16,604,290 4,873 230,697 352,281 16,834,987 357,154 |
Designated funds 2022 £ 16,273,901 - 16,273,901 |
Total 2022 £ 16,278,774 352,281 |
|---|---|---|---|---|
| 16,631,055 |
18 Grant Commitments
| At 30 September 2023 the charity had commitments as follows: Within one year Between one and two years |
2023 £ 53,000 61,000 114,000 |
2022 £ 25,000 2,000 |
|---|---|---|
| 27,000 |
19 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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