Charity registration number: 307319
## William Price Charitable Trust
Annual Report and Financial Statements
for the Year Ended 31 March 2021
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1721
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**(www.pricestrust.org.uk)**
Avenue Business Services Chartered Accountants and Registered Auditor 5A The Gardens Fareham Hampshire PO16 8SS
## **William Price Charitable Trust**
## **Contents**
|Trustees' Report|1 to 5|
|---|---|
|Annex A - References and administrative details of the charity|6 to 7|
|Annex B - Grants made|8 to 9|
|Statement of Trustees' Responsibilities|10|
|Independent Auditors' Report|11 to 13|
|Statement of Financial Activities|14|
|Balance Sheet|15|
|Notes to the Financial Statements|16 to 25|
## **William Price Charitable Trust**
## **Trustees' Report**
The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 March 2021.
## **Background of the Charity**
William Price, a timber merchant of Fareham, drew up a will in 1721 which, after his death, founded a blue coat school in his town house. Price’s charity was formed to support the school which went through various phases, including relocation, before being closed in 1984. The Charity was reformed in 1989 as a grant making educational trust and in 1994 the school site in Fareham was sold to provide the permanent endowment of the new charity. In 2006, the permanent endowment was further enhanced when the proceeds of sale of a former Elementary School, also in Fareham, were transferred to the charity to administer.
## **Object of the Charity**
The object of the Trust is the promotion of education amongst persons under the age of 25 years who live in the area of benefit, defined as the three ecclesiastical parishes of St Peter & St Paul, Holy Trinity with St Columba and St John the Evangelist, all of Fareham. These three parishes have the same area as the original Fareham town parish, but do not cover the whole area of the Fareham Borough.
## **Public Benefit**
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake and are mindful of the need to ensure that the activities of the Trust provide public benefit.
## **Structure and Governance**
The Governing Document of the William Price Charitable Trust is the 1993 Charity Commission Scheme which appoints the William Price Trust Company as its trustee. Other than assets held in trust, the Trust Company holds no assets and with no financial transactions in its own right its accounts are dormant. Reference and administrative details of the Company members, who are also the charity trustees, and their professional advisers are shown at Annex A,
The Company’s Articles of Association register 19 Company members, of whom three are Incumbents of the Fareham town parishes, three are nominated by those parish councils and four others are nominated by appointing bodies – the Bishop of Portsmouth (1), Fareham Borough Council (2), and Hampshire County Council (1). A further nine members are co-opted, and these as far as practicable, through residence, occupation, employment or otherwise have special knowledge of the area or are, or have been, teachers in that area. Potential co-opted members are invited by Trustees to submit a curriculum vitae for consideration by them. If found acceptable, they are then invited by the Clerk to attend the first General Meeting of the Trust. Before attending this first meeting, they are required to sign and declare their willingness to act as a charity trustee and to act in the trust of the Governing Document. On appointment members are sent full information on the charity and given copies of the Governing Document and Memorandum & Articles of Association.
## **Management**
Day-to-day management is delegated to the Company Director and Company Secretary, who are Chairman and Clerk respectively of the Charitable Trust. The members of the Company (the Charity Trustees) have established three committees to advise separately on policy, finance and grants and of these, the Finance and Grants committees report every six months to a General Meeting of the Company. The composition of the committees is shown at Annex A.
The Chairman of the Trust is elected at the Annual General Meeting of the Trust Company by a majority of the Trustees. Similarly, Chairmen of the committees are elected at the first meeting following the AGM by a majority of the committee members.
The remuneration of the Clerk is decided by the Finance Committee at its first meeting following the anniversary of his appointment.
Page 1
## **William Price Charitable Trust**
## **Trustees' Report**
## **Risk Management.**
No major risks have been identified. Expenditure can be made by cheque or Business Card from the relatively small current account. The chequebook is under the control of the secretary and all cheques require two signatures. The Business Card is held by the Secretary only and rarely used.
## **Objectives of the Trustees.**
The Trustees place their emphasis on assisting and supporting both individuals and educational establishments in the study of those subjects and the pursuit of those activities which in the opinion of the trustees do not command adequate priority in education. The types of projects that are given priority are those that enrich the quality of life and widen horizons, encourage participation and appreciation of the arts, develop good citizenship and encourage help in the community and local environment.
## **Achievements and Performance** .
This has been a very difficult year with the Coronavirus epidemic affecting the whole of the UK and schools and churches closed for relatively long periods. Meetings have been non-existent with all correspondence regarding grants being carried out by e-mail. There are signs now that the situation is improving somewhat and that meetings will soon be carried out again normally.
For this year, the overall expenditure on grants was £160,558 much lower than last year when grants totalled £190,220. This was a result of a decision by the Trustees to keep costs down with a predicted fall in income.
Most schools have projects which require outside funding and to achieve these they apply for grants from the charity which are usually in excess of the money available. The main task for the trustees has therefore been to make choices from the applications in accordance with their objectives. In order to ensure an equable spread between the large and small schools the number of pupils in each school is taken into account in the decision-making. Overall the trustees are pleased that most grants shown in Annex B now fall within their objectives and consider that the charity is making a welcome addition to education of the young in the benefit area.
There are 18 schools, one college and four eligible churches substantially serving the area of benefit and these are canvassed for applications twice a year for projects which would fall within the provisions of the Governing Document. After scrutiny by the Grants Committee, the trustees at a General Meeting approved the grants shown in Annex B, where it will be seen that the expenditure on grants to the schools and churches was £160,558 a decrease on last year when these grants totalled £190,220.
There were only 4 eligible requests for individuals to receive hardship grants during the year, a large decrease on last year brought about by the coronavirus and schools being closed for long periods. The overall total for hardship grants was £456 (last year £7,886). Larger grants, for university/college/apprenticeship fees and overseas projects, were made to 18 individuals during the year and for these £17,110 was awarded (last year £23,500).
The trustees have established a bursary for the two private schools in the area (now one following the closure of Wykeham House School) offering one-off emergency help with fees on application by the schools, to give help for children whose parents have run into financial difficulty. There were no applications this year.
Page 2
## **William Price Charitable Trust**
## **Trustees' Report**
## **Fareham Welfare Trust** .
William Price’s original bequests were both to found a school and to assist the poor widows of Fareham. To cover the second bequest the Governing Document requires this Trust to make an annual payment to the Fareham Welfare Trust **,** into which the original Widows' Charity was merged. The Governing Document has been amended to enable the trustees to carry out an annual review of this payment and this year a payment of £11,000 was approved as requested by the Welfare Trust to assist with “hardship” grants.
## **Fareham College Agreement.**
Following an earlier commitment by the trustees, the Governing Document permitted payment of £1,000,000 of the sale proceeds from Price’s site towards the costs incurred by Hampshire County Council in improving and extending the buildings at Fareham College, subject to repayment in the event of change of use of the College. However before Price’s site was sold the 1992 Higher Education Act changed the ownership of the College buildings to a College Corporation and the commitment was therefore referred to the Education Assets Board to decide who should receive the payment and who should make repayment in the event of change of use. By the year 2000 the matter had been decided; the Trust paid £1,000,000 to Hampshire County Council and an agreement was made with Fareham College to repay to the Trust a sum equal to 7.33% of the then valuation of the College or proceeds of sale in the event of change of use. This represents a potential asset for the Trust. The College has sold a proportion of its land for housing to raise the capital necessary to fund major building and refurbishment work on the remainder of the site. A full valuation was made of the reduced site and its new and refurbished buildings in 2014 which has been valued considerably higher than the original valuation. The Trustees, after taking legal advice, agreed to this sale taking place retaining their 7.33% in the reduced site.
The Trust is required to recoup the above capital expenditure and to ensure, as far as is practicable, that by the end of a period of 30 years from 2002 the reduction in the real value of the assets is made good by the charity. This recoupment commenced in the financial year 2013/14 at a value of £29,000 and will continue annually until 2030/31.
## **Financial Review.**
The overriding financial objective of the trustees is to maintain long term growth of the capital fund to ensure that the Trust survives as a viable charity throughout the 21st century and beyond, and thus to be able to treat future beneficiaries even handedly with those of the present. In the medium term the aim is to adjust the investments in the light of changing economic conditions to ensure that sufficient funds are available to meet the present and future needs designated by its trusts, whilst maintaining the long-term growth. The Investment Adviser and Finance Committee meet at six monthly intervals to review the investment policy and any changes to investments in the endowment fund. The Committee also recommends the budget for grants from the income fund for the following period.
The Trust has a highly diverse asset allocation with holdings in fixed interest (government gilts and corporate bonds), equities (UK and international), commercial property and alternative assets in addition to the cash held. The investments are all held via collective investment schemes such as unit trusts, ETFs and OEICs and include some tax exempt Common Investment Funds. The collective investment schemes are held in order to diversify the risk of the investment portfolio. Following the closure of Wykeham House School and the disposal of its assets, its Trustees decided that the surplus funds (£156,789.60) should be given to the William Price Trust charity to assist in furthering its aims. These funds were allocated to a separate General Investment Account within Transact such that, in accordance with the conditions of the transfer of the funds, they remain identifiable. At the Finance Committee meeting on the 15th May 2018 it was decided that this cash should be invested with a mandate to produce a target income yield of 3% per annum with this income yield being utilised by the trustees to provide a specific bursary to students. The target income yield was met on a pro-rata basis across the initial investment period and the income is available to make an initial grant following the Trustees decision on its allocation.
Page 3
## **William Price Charitable Trust**
## **Trustees' Report**
The overall value of the endowment fund, General Fund, Expendable Endowment and Permanent Endowment, increased in value by £781,216 (£8,106,760 at 31st March 2021) across the year. In terms of the comparative performance the Investment Adviser has proposed a change in benchmarks from a blend between the AFI Balanced and AFI Cautious indices to a blend between the Investment Association 0% - 35% Shares sector (25%) and the Investment Association 20% - 60% Shares sector (75%) as it is felt this better reflects the assets and volatility of the Trust portfolio. The ARC Balanced Asset Charity Index is also used to measure relative investment performance as this represents actual portfolio performance from circa 35 charity investment managers encompassing over 4,000 discretionary charity portfolios. Despite the global pandemic the portfolio performance, including cash, was positive by +16.04% over the past year but this was slightly behind the benchmarks IA Mixed Investment blended benchmark and the ARC Balanced Asset Charity Index which recorded a positive performance of +18.43% and +18.98% respectively.
The overall annualised volatility (risk) of the portfolio was recorded at 6.62 (0 representing no volatility) which was slightly lower than the blended IA Mixed Investment benchmark which was recorded at 7.08 and the ARC Index at 7.48. By comparison, the volatility of the FTSE 100 Index was 15.84. The risk/reward relationship within the portfolio remains in line with our expectations. It should, however, be noted that volatility measured over short periods can be problematic as it is more influenced by short-term market movements. Over the longer term the relationship is also as we would expect. Over three years the annualised volatility is 8.47 relative to 8.29 in relation to the blended IA Mixed Investment benchmark and 8.34 in relation to the ARC benchmark with the Trust portfolio producing growth of +13.77% relative to +13.88% for the IA Mixed Investment benchmark and +16.43% for the ARC index.
The total income yield from investments and cash into the portfolio was £170,225 for the year representing a yield of 2.11% to include the Wykeham House Designated Fund. The Trust maintains the Total Return Approach to investing whereby grants are met via a combination of the natural income yield of the portfolio and accumulated capital growth within the Unapplied Total Return. The specific income yield into the Wykeham House Designated Fund represented 3.89% for the year and was therefore ahead of the 3% target income to meet the anticipated bursary.
## **Total Return Approach to Investments.**
A total return approach to investments was adopted from 1st April 2002 with a declared permanent endowment of £3,113,126, increasing to £4,638,126 with the transfer of the Fareham Educational Trust funds. Due to the recoupment policy, the permanent endowment was increased to £4,725,126 in 2016 and will increase annually by £29,000 as above. Any sum in the capital fund over that total is being treated as unapplied total return on investments and the trustees are permitted to decide how much of this is transferred to the income fund for use in the objects of the charity. They are aware that the amount transferred must be compatible with the requirement to be even handed in their treatment of present and future beneficiaries and also the 30-year requirement to recoup the above capital expenditure, both of which require inflation to be taken into account. As a result they have established a longer-term target for the capital fund to increase at least at a rate of 1% above inflation and to take this into account when deciding the size of transfers to the income fund. It is of course appreciated that this target may not be achieved due to varying market conditions but with advice from the Investment Adviser and a decision by the Finance Committee, a sum of £210,000 was allocated to the income fund to satisfy the requirement of the reserves policy (see below).
## **Reserves Policy.**
The trustees are also aware that if the value of the capital fund should fall below the declared value of the permanent endowment no transfers to the income fund will be permitted until the situation improves. The situation with the stock market has shown that such a fall in value could occur, hopefully only on a temporary basis, and that in this event a reserve in the income fund would be required to enable the charity to continue operating, albeit at a reduced level. The trustees have established a Reserves Policy to permit transfer of sufficient unallocated return to the income fund to build up to one year's income in reserve at the end of the financial year. The policy has been reviewed during the year and will be maintained for as long as is considered necessary.
Page 4
## **William Price Charitable Trust**
## **Trustees' Report**
## **- Winding Up of The Wykeham House School Trust**
Following the closure of Wykeham House School and the disposal of its assets, its Trustees decided that the surplus funds (£156,789.60) should be given to this charity to assist in furthering its aims. The funds have been invested in a separate account as requested by the liquidators. An interim recommendation to invest 98% of the Wykeham House cash was made and fund purchases completed in June 2018. The objective was to provide a 3% annual income yield to fund a bursary and grow the capital over a longer term. The portfolio has met the brief and cash is available to distribute. The award of a bursary has not yet been considered for the first time.
## **Designated Fund.**
In the short time that the Fareham Educational Trust was in existence there were four establishments named as beneficiaries of that charity, Fareham College and three schools, although none were due to receive any benefit until the Wickham Road school site had been sold and the proceeds invested. These four establishments are also beneficiaries of this charity and as such have received many grants to date. However now that the charities have amalgamated, to ensure that the establishments would not be at a disadvantage compared with two separate charities, the trustees have agreed to designate part of the income fund specifically for them. Further funding has been designated and payments from this fund have been made.
## **Conclusion.**
Overall the William Price Charitable Trust is in as good a shape as the current market conditions allow. The capital from the sales of the two school sites is invested in a diversity of assets and in the longer term this should provide the growth necessary for the charity to survive into the foreseeable future, as well as seeking to maintain grants to current beneficiaries. This income is being used to assist the education of the young who live in the Fareham town parishes, close to the original wishes of the benefactor, William Price.
Approved by the Trustees and signed on their behalf by:
**Mr John M Westbrook (Chairman)**
Dated:………………………………
Page 5
## **William Price Charitable Trust**
## **Annex A - References and administrative details of the charity**
William Price Charitable Trust / 307319 24 Cuckoo Charity Name / Registered No. Lane, Fareham, Hampshire. PO14 3PF Trustee / Registered No. William Price Trust Company / 2775695 Registered Office 24 Cuckoo Lane, Fareham, Hampshire, PO14 3PF Charity Commission Scheme of 31 December 1993 Governing Document (Amended 19/01/1999 and 24/11/2005) Charity Commission Orders - Investment Manager 14 March 1994 - Total Return Approach 11 January 2002 Administration of the property of Charity Commission Scheme of 8 August 2006 (for Fareham Educational Trust Charity no. 3963656) Director and Chairman of the Trust Mr John M Westbrook Company Sec & Clerk of the Trust Dr Christopher D Thomas
|Members of the Trust Company and|Charity Trustees|Committee|
|---|---|---|
|(at 31st March 2021)||Membership|
|Mr Fred Birkett|Nominee, Hampshire County Council|PF|
|Mrs Donna Irving|Nominee, Bishop of Portsmouth|G|
|Mrs Pamela Bryant|Nominee, Fareham Borough Council|G|
|Mrs Tina Ellis|Nominee, Fareham Borough Council|F|
|Mr Ian Cranstone|Nominee, PCC St John the Evangelist|G|
|Mrs Margaret Chappell|Nominee, PCC St Peter & St Paul|G|
|Mr John M Westbrook (Chairman)|Nominee, PCC Holy Trinity with St Columba|GPF|
|Rev Sally Davenport|Rector, Holy Trinity with St Columba|G|
|Rev Roger Jackson|Priest-in-Charge, St Peter & St Paul|G|
|Rev Bruce Deans|Vicar, St John the Evangelist|P|
|Mrs Anne Butcher|Co-opted|G|
|Mrs Tessa A Short|Co-opted|G|
|Mr Phillip Reynolds|Co-opted|F|
|Mr Derek Marlow|Co-opted|F|
|Mr Tim Geoghegan|Co-opted|F|
|Mrs Sara Heaysman|Co-opted|G|
|Mr David Luckett|Co-opted|F|
|Mr Neale Fray|Co-opted|G|
G = Grants Committee, P = Policy Committee, F = Finance Committee
Page 6
## **William Price Charitable Trust**
**Annex A - References and administrative details of the charity** Bankers: 1. CAF Bank Ltd, 25 Kings Hill Ave, West Malling, Kent, ME19 4JQ 2. Transact, 29 Clement's Lane, London, EC4N 7AE Solicitor: Brutton & Co, 288 West Street, Fareham, PO16 0AJ Investment Adviser:[Howard][Wealth][Management][Ltd,][Fareham][Innovation][Centre,][Office][18,][Merlin] House, 4 Meteor Way, Lee-On-The-Solent, PO13 9FU Auditors: Avenue Business Services, 5A The Gardens, Fareham, PO16 8SS Website: www.pricestrust.org.uk
Page 7
## **William Price Charitable Trust**
## **Annex B - Grants made**
|**Cat.**
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18|**School / College**
Orchard
Lee
Infant
Orchard
Lee
Junior
Ranvilles Infant
Ranvilles Junior
St Francis
Heathfield
Wallisdean
Infant
Wallisdean
Junior
St
Columba
CofE
Primary
Academy
Redlands
Primary
St
Jude’s
Primary
Wicor Primary
Boundary Oak
Henry
Cort
College
Fareham
Academy
Cams Hill
Harrison
Primary
Uplands Primary|**Projects Supported by Grants**
New
outdoor
area
for
Year
2.
Enrichment activity programme.
Daily
mile
All-weather
running
track.
Well-being
and
mindfulness.
Learning
outside.
Integral
IT.
Curriculum enhancement.
No applications.
Outdoor play equipment. Post 16
gym equipment.
Embedding vision and values.
Safari track and explore.
Yoga
mats.
Basketball
posts.
Football
goals.
WW2
workshop.
Upper
school
library.
Travelling
theatre pantomime.
Interactive whiteboard replacement.
Improving child opportunities.
Year
R
outside
area.
Classroom
iPads for year 5/6.
Ready to learn room.
Dictionaries.
Purpose
built
shed.
New
and
replacement
tools.
Replacement sound system for hall..
No applications.
Sewing machines for textile dept.
Science area refurbishment.
No applications.
New laser cutter for Design and
Technology.
Develop
outdoor
spaces.
Outdoor sensory area.
EYFS outdoor space design. Design
technology|**Grants**
£5,026
£10,000
£5,950
£0
£5,733
£300
£4,400
£4,778
£8,500
£8,500
£3,000
£8,355
£0
£18,165
£0
£17,000
£1,750
£14,700|
|---|---|---|---|
Page 8
## **William Price Charitable Trust**
## **Annex B - Grants made**
|19|Fareham College
Creative media production.
£7,200
**Churches**
St
John
Evangelist
£8,635
Holy Trinity
Promoting
Christian
education
amongst persons under the age of 25
years who live within the parishes
Shared
St Columba
between
St
Peter &
St
Paul
Churches
**£131,992**
**Individual**
**“Hardship”**
**Grants**
4 grants with an average of £114 per
grant
£456.00
**£456**
**Other**
**grants**
**for individuals**
College / University fees/Bursaries
(18 persons).
£17,110
**£17,110**
**Fareham Welfare Trust**
£11,000
**£ 11,000**|**2019/20**
**£147,834**
**7,886**
**£23,500**
**£11,000**|
|---|---|---|
|21
22
23
24|||
|25|||
|26|||
||||
||**TOTAL grants for the financial year**
**£160,558**|**£190,220**|
Page 9
## **William Price Charitable Trust**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mr John M Westbrook Trustee
Page 10
## **William Price Charitable Trust**
## **Independent Auditor's Report to the Members of William Price Charitable Trust**
## **Opinion**
We have audited the financial statements of William Price Charitable Trust (the 'charity') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
- In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its results for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 11
## **William Price Charitable Trust**
## **Independent Auditor's Report to the Members of William Price Charitable Trust**
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities [set out on page 10], 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.
Page 12
## **William Price Charitable Trust**
## **Independent Auditor's Report to the Members of William Price Charitable Trust**
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the charity audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
......................................
Colin Bielckus Esq (Senior Statutory Auditor) For and on behalf of Avenue Business Services, Statutory Auditor
5A The Gardens Fareham Hampshire PO16 8SS
Date:.............................
Page 13
## **William Price Charitable Trust**
## **Statement of Financial Activities for the Year Ended 31 March 2021**
|**Note**
**Income and Endowments from:**
Investment income
2
**Expenditure on:**
Charitable activities
Unrealised gain/(loss) on investments
Net (expenditure)/income
Gross transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13
**Note**
**Income and Endowments from:**
Investment income
2
**Expenditure on:**
Charitable activities
Unrealised gain/(loss) on investments
Net expenditure
Gross transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13|**Unrestricted**
**funds**
**£**
-
(219,361)
-
(219,361)
210,000
(9,361)
285,991
276,630
**Unrestricted**
**funds**
**£**
-
(252,305)
-
(252,305)
210,000
(42,305)
328,296
285,991|**Endowment**
**funds**
**£**
171,126
-
829,451
1,000,577
(210,000)
790,577
7,039,553
7,830,130
**Endowment**
**funds**
**£**
216,550
-
(566,961)
(350,411)
(210,000)
(560,411)
7,599,964
7,039,553|**Total**
**2021**
**£**
171,126
(219,361)
829,451|
|---|---|---|---|
||||781,216
-|
||||781,216
7,325,544|
||||8,106,760|
||||**Total**
**2020**
**£**
216,550
(252,305)
(566,961)|
||||(602,716)
-|
||||(602,716)
7,928,260|
||||7,325,544|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 13.
Page 14
## **William Price Charitable Trust**
## **(Registration number: 307319) Balance Sheet as at 31 March 2021**
|**Note**
**Fixed assets**
Investments
10
**Current assets**
Debtors
11
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
12
**Net current assets**
**Net assets**
**Funds of the charity:**
**Endowment funds**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
13|**2021**
**£**
7,434,345
220
675,650
675,870
(3,455)
672,415
8,106,760
7,830,130
276,630
8,106,760|**2020**
**£**
6,623,727
140
705,130|
|---|---|---|
|||705,270
(3,453)|
|||701,817|
|||7,325,544|
|||7,039,553
285,991|
|||7,325,544|
The financial statements on pages 14 to 25 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mr John M Westbrook Trustee
Page 15
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
William Price Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
## _**Investment income**_
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Grant provisions**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Page 16
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **Fixed asset investments**
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
## **Trade debtors**
are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Page 17
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
## **Financial instruments**
## _**Classification**_
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 18
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## _**Debt instruments**_
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
## _**Investments**_
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 19
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## _**Derivative financial instruments**_
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
## **2 Investment income**
|Interest receivable and similar income;
Interest - Transact Capital
Income from listed investments|**Endowment**
**funds**
**Expendable**
**£**
1,040
170,086
171,126|**Total**
**2021**
**£**
1,040
170,086
171,126|**Total**
**2020**
**£**
3,048
213,502|
|---|---|---|---|
||||216,550|
Page 20
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **3 Expenditure on charitable activities**
|Grants payable - institutions
Grants payable returned
Grants payable - individuals
Governance costs|**Unrestricted**
**funds**
**General**
**£**
142,992
(2,300)
17,566
61,103
219,361|**Total**
**2021**
**£**
142,992
(2,300)
17,566
61,103
219,361|**Total**
**2020**
**£**
157,984
-
32,236
62,085|
|---|---|---|---|
||||252,305|
Details of grants to institutions are shown in Annex B.
£219,361 (2020 - £252,305) of the above expenditure was attributable to unrestricted funds and £Nil (2020 - £Nil) to restricted funds.
## **4 Analysis of governance and support costs**
## **Governance costs**
|Staff costs
Wages and salaries
Audit fees
Audit of the financial statements
Legal fees
Portfolio management costs
Insurance
Printing, postage and stationery
Bank charges|**Unrestricted**
**funds**
**General**
**£**
21,046
3,450
35
35,800
390
306
76
61,103|**Total**
**2021**
**£**
21,046
3,450
35
35,800
390
306
76
61,103|**Total**
**2020**
**£**
20,731
3,450
113
37,007
418
306
60|
|---|---|---|---|
||||62,085|
## **5 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
Page 21
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **6 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries|**2021**
**£**
21,046|**2020**
**£**
20,731|
|---|---|---|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
|Management
No employee received emoluments of more than £60,000 during the year
**7**
**Auditors' remuneration**
Audit of the financial statements
**8**
**Taxation**|**2021**
**No**
1
**2021**
**£**
3,450|**2020**
**No**
1|
|---|---|---|
|||**2020**
**£**
3,450|
||||
The charity is a registered charity and is therefore exempt from taxation.
## **9 Tangible fixed assets**
|**Cost**
At 1 April 2020
At 31 March 2021
**Depreciation**
At 1 April 2020
At 31 March 2021
**Net book value**
At 31 March 2021
At 31 March 2020|**Furniture and**
**equipment**
**£**
1,161|
|---|---|
||1,161|
||1,161|
||1,161|
||-|
||-|
Page 22
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **10 Fixed asset investments**
## **Other investments**
|**Cost or Valuation**
At 1 April 2020
Revaluation
Additions
Disposals
At 31 March 2021
**Net book value**
At 31 March 2021
At 31 March 2020|**Listed**
**investments**
**£**
6,623,727
829,451
1,802,445
(1,821,278)|
|---|---|
||7,434,345|
||7,434,345|
||6,623,727|
## **11 Debtors**
|Prepayments
**12 Creditors: amounts falling due within one year**
Other creditors|**2021**
**£**
220
**2021**
**£**
3,455|**2020**
**£**
140|
|---|---|---|
|||**2020**
**£**
3,453|
Page 23
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **13 Funds**
|**Unrestricted funds**
General
Designated
**Total unrestricted funds**
**Endowment funds**
Permanent
Expendable
**Total endowment funds**
**Total funds**
**Unrestricted funds**
General
Designated
**Total unrestricted funds**
**Endowment funds**
Permanent
Expendable
**Total endowment funds**
**Total funds**|**Balance at 1**
**April 2020**
**£**
124,853
161,138
285,991
4,841,126
2,198,427
7,039,553
7,325,544
**Balance at 1**
**April 2019**
**£**
167,158
161,138
328,296
4,812,126
2,787,838
7,599,964
7,928,260|**Incoming**
**resources**
**£**
-
-
-
-
1,000,577
1,000,577
1,000,577
**Incoming**
**resources**
**£**
-
-
-
-
(350,411)
(350,411)
(350,411)|**Resources**
**expended**
**£**
(219,361)
-
(219,361)
-
-
-
(219,361)
**Resources**
**expended**
**£**
(252,305)
-
(252,305)
-
-
-
(252,305)|**Transfers**
**£**
210,000
-
210,000
29,000
(239,000)
(210,000)
-
**Transfers**
**£**
210,000
-
210,000
29,000
(239,000)
(210,000)
-|**Balance at**
**31 March**
**2021**
**£**
115,492
161,138|
|---|---|---|---|---|---|
||||||276,630|
||||||4,870,126
2,960,004|
||||||7,830,130|
||||||8,106,760|
||||||**Balance at**
**31 March**
**2020**
**£**
124,853
161,138|
||||||285,991|
||||||4,841,126
2,198,427|
||||||7,039,553|
||||||7,325,544|
Page 24
## **William Price Charitable Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **14 Analysis of net assets between funds**
|**14 Analysis of net assets between funds**||||
|---|---|---|---|
|Fixed asset investments
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
-
280,085
(3,455)
276,630|**Endowment**
**funds**
**Permanent**
**£**
7,434,345
395,785
-
7,830,130|**Total funds**
**£**
7,434,345
675,870
(3,455)|
||||8,106,760|
Page 25