Newcomen Collett Foundation Charity No. 312804
Financial Statements
for the year ended 30[th] September 2021
Newcomen Collett Foundation Index
Page
Governors, Officers and Advisers ................................................................................................................ 1 Report of the Governors ...................................................................................................................... 2 to 7 Report of the Independent Examiner ........................................................................................................... 8 Statement of Financial Activities .................................................................................................................. 9 Balance Sheet ........................................................................................................................................... 10 Statement of Cashflows ............................................................................................................................. 11 Notes to the Accounts ....................................................................................................................... 12 to 19 Analysis of Major Grants ............................................................................................................................ 19
1
Newcomen Collett Foundation
Governors, Officers and Advisers
GOVERNORS (are appointed by resolution of the remaining Trustees for a term of 4 years)
| FIRST APPOINTED | ||
|---|---|---|
| a b c | Alderman Tim McNally (Chair) | 14.12.17 |
| a c | Amir Eden Esq.(Vice Chair) | 28.09.17 |
| a | R Lovell Esq | 15.03.99 |
| a b | R V Ashdown Esq | 22.09.05 |
| A Leiffheidt Esq | 11.12.08 | |
| a | Mrs J Goodland | 13.12.13 |
| a | P MacFarlane Esq | 26.09.14 |
| Canon M Rawson | 10.03.16 | |
| a | Mrs Neha Jain | 09.03.17 |
| Ms Janet Simpson | 13.12.18 | |
| a Member of the Investment Committee |
||
| b Member of the Audit Committee |
||
| c Member of the Governor Selection Committee |
OFFICERS
Ms C M de Cintra BA ACA Clerk to the Governors Ms A Lamont Field Officer PRINCIPAL OFFICE Marshall House Tel : 020 7407 2967 66 Newcomen Street e-mail: clerk@newcomencollett.org.uk London SE1 1YT BANKERS Unity Trust Bank plc CAF BANK Nine Brindley Place PO Box 289, West Malling, Birmingham B1 2HB Kent ME19 4TA SOLICITORS INDEPENDENT EXAMINER Cripps Pemberton Greenish Lee Stokes FCA 22 Mount Ephraim Haysmacintyre LLP Tunbridge Wells 10 Queen Street Place TN4 8AS London EC4R 1AG
INVESTMENT MANAGERS
CCLA Cazenove Capital 85 Queen Victoria Street 1 London Wall Place London EC4V 4ET London EC2Y 5AU
2
Newcomen Collett Foundation
Report of the Governors for 2021
1. OBJECTIVES AND ACTIVITIES
Purposes of the Foundation
The Foundation was formed by the merger in 1988 of two much older charities. The Elizabeth Newcomen Educational Foundation was formed in 1685 and John Collett Educational Foundation in 1711. Both charities had been set up for the benefit of young people in and around Southwark.
The charitable purposes of the Newcomen Collett Foundation are:
-
a) relieving children with learning difficulties attending the Newcomen Centre at Guy's Hospital (The Newcomen Centre is now based at St Thomas' Hospital.).
-
b) making yearly payments to the Governors of the Parish School of the Cathedral Church of St Saviour and St Mary Overie, Southwark towards the rent, alterations and repairs to the premises of the School.
-
c) making payments to the Governors of any other Church of England Voluntary Aided School in the London Borough of Southwark towards the rent, alterations and repairs to the premises of the School.
-
d) promoting education of persons under the age of 25 years, resident in the London Borough of Southwark.
Public Benefit
The objects and purposes of the Foundation are set out in the first paragraphs of this Report. The Governors confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities and setting the grant-making policy for the year.
Activities
The principal area of activity is awarding grants using funds generated from investment assets. This is explained in more detail below.
For many years, the Foundation has shared the offices and costs with Marshall’s Charity, another grant-making charity. We will deal with this relationship further under the section on governance below.
A) Investment Management
As an Endowed Foundation one of the primary tasks of the Governors is to manage the investment assets. The Governors have adopted a policy of prudent diversification in relation to the investments and as such hold the investments in both property and equity assets.
The Investment Committee advises the Governors on Investment Policy for the Foundation. The aim is to balance the needs of current and future beneficiaries. The specific financial objectives of the Foundation are:
-
To grow the real value of the assets in order to:
-
Secure the long term existence of the Foundation; and
-
Meet the unfulfilled demand for grants;
-
To seek a return greater than RPI plus 4% and £65,000 net;
-
To dispose of underperforming assets as soon as practicable;
-
To source alternative forms of investment including accumulation funds;
-
To contain operating costs.
-
To operate at an acceptable level of risk.
The Governors have invested all securities in accumulation units in order to grow the endowment fund for future beneficiaries. Grants to current beneficiaries are made from unrestricted funds.
Property
Approximately 64% of the endowment is currently invested directly in property. The portfolio is diversified by size, location and class.
The Investment Committee continues to explore the development potential of all the properties in the portfolio. The Governors are also identifying which properties should continue to be held in the portfolio and are devising a strategy for selling properties identified for disposal.
The Foundation’s property portfolio is actively managed by the Surveyor to Marshall’s Charity.
3
Newcomen Collett Foundation
Report of the Governors for 2021
Securities
Approximately 36% of the current endowment is invested in securities.
The investment policy recommends diversification of risk, and as such the Foundation holds its funds in two Common Investment Funds: the Charity Multi-Asset Fund with Cazenove and the CCLA COIF Charities Investment Fund.
Each Fund Manager issues quarterly reports showing the performance of the Funds. The Governors continue to monitor performance and also to keep under review the level of securities held in relation to property investments.
B) Grant-Making
The objects of the Foundation, which are set out in section 1, provide for four types of grant.
In practice most of the grant-making activities fall within the fourth object. In relation to the first three objects:
-
There were no applications made by staff of the Newcomen Centre at St Thomas’ Hospital.
-
An annual grant of £2,000 is paid to the Governors of the Parish School of the Cathedral Church of St Saviour and St Mary Overie, Southwark.
-
There were no applications during the year for grants towards the rent, alteration and repairs of other Church of England Voluntary Aided schools.
The grants made under the fourth object fall into four categories: school uniform grants, grants to individuals, grants to organisations and emergency laptop grants.
School Uniform Grants
Each year a proportion of the available funds is made available for emergency grants to purchase school uniforms. Schools contact the Foundation to outline the pupil’s situation and request a grant. Grants are awarded under Clerk’s discretion and applications are usually turned around within 48 hours. The school is responsible for purchasing the items of school uniform and the Foundation reimburses the school.
Grants to Individuals
Individuals who are under the age of 25 and have been resident in Southwark for at least two years are eligible to apply for a grant towards the cost of their education. The majority of grants are awarded towards the costs of those attending tertiary or higher education. Priority is given to natives of Southwark, and to those embarking on their first post-school qualification. Grants to individuals under the age of 16 are usually only awarded in cases of exceptional talent or need. Individuals are eligible to apply once in any twelve-month period. The Governors do not make multi-year awards but will usually consider repeat applications from students for as long as they continue their studies.
Grants to Organisations
Organisations who work with young people in Southwark are eligible to apply for grants. Support is given towards a breadth of activities including residential trips, music productions and equipment, sports resources, arts projects, after school clubs and holiday clubs. Priority is given to organisations which are based in Southwark.
Emergency laptop grants
During the previous year the Governors made the decision to apply funds for emergency laptops in response to the national lockdown imposed in March 2020. These grants continued to be awarded up until March 2021 in response to the continuing need. The grants were awarded to individuals to purchase laptops to support educational activities primarily whilst children and young people were off school, or students were being taught remotely.
2. ACHIEVEMENTS AND PERFORMANCE
Achievements
The year ended 30 September 2021 was a busy and successful year for the Foundation. The Governors are pleased that the capital value of the investment assets has increased over the year. There were no Income returns from securities as all securities are in accumulation funds. However rental income from properties and the rundown of accumulated reserves enabled the Foundation to award grants of over £115k to 418 individuals and organisations.
The various achievements are explored in more detail below.
4
Newcomen Collett Foundation
Report of the Governors for 2021
A) Investment Management
Property
The capital values of the properties increased by 26% over the year.
Securities
Following a difficult time for equities in the previous year due to Covid-19 and the long period of lockdown, securities increased in value by 16% over the year.
In March, on the recommendation of the investment committee, the Governors decided to sell the holding in the Newton Growth and Income Fund for Charities due to its poor track record. The governors also approved the recommendation of the investment committee that the proceeds from this sale be invested in CCLA COIF Investment Fund. This was on the basis of ongoing uncertainty in the economy and thus potential volatility in the markets. The CCLA fund is smoothed and has a good track record. Following these transactions, the holdings in Cazenove and CCLA are now roughly equal.
Investment Managers provide regular reports on the performance of their funds, and the Governors review the performance of their investments on a regular basis. The Foundation compares performance to the individual fund's own benchmarks.
B) Grant-making
In the previous year, due to the pandemic, the Governors decided to pay grants to individuals to purchase laptops in order to support educational activities whilst children and young people were off school and students were being taught remotely. It had also been agreed to pause grants to organisations, as most schools and organisations were unable to run activities. In January 2021 the governors approved an allocation of £20,000 for emergency laptop grants to be allocated by the London Borough of Southwark. This policy continued for the first half of the current year.
As the country began to open up, the Governors reverted to the Foundation’s normal grant giving practice. The final emergency laptop grants were awarded in January. Organisations were able to apply for grants again from the March 2021 meeting.
The number of grants awarded during the year are set out below:
School Uniform Grants
157 (2020 – 67) grants were awarded for the purchase of school uniforms during the year.
Grants to Individuals
29 (2020 – 40) grants were awarded to individuals over the year and these were generally towards the living costs of those pursuing post-16 educational opportunities.
Grants to Organisations
32 (2020 – 41) grants were awarded to organisations for a range of projects covering the arts, drama, sports, school trips and holiday clubs.
Emergency Laptop Grants
200 (2020 – 223) grants were awarded for emergency laptops to individuals to support educational activities whilst children were off school or students were being taught remotely.
3. FINANCIAL REVIEW
Review of Finances
The Newcomen Collett Foundation incurred a deficit of £97,714 on its activities during the year, excluding gains on investments. The Governors had agreed a deficit budget for the year of £63,388 to reduce unrestricted reserves. The results reflect a change in the policy of accounting for rental income. Previously rental income was credited when receivable. However, in order to facilitate a future change in the accounting year end, rental income is now accounted for in the period to which it relates.
The freehold investment properties are revalued annually by the Surveyor to Marshall’s Charity. This year, in his view, there has been an increase in the value of the portfolio.
5
Newcomen Collett Foundation
Report of the Governors for 2021
Reserves Policy
The Governors have adopted a policy regarding free reserves which seeks to ensure that
-
a) free reserves should be less than twelve months’ overhead expenditure;
-
b) there are adequate funds to ensure that the Foundation is able to meet all current and known future liabilities.
Free reserves exclude restricted funds and designated funds. They also exclude any unrestricted funds held in fixed assets. At 30 September 2021 the target level of free reserves was £81,000. However, the actual level was £364,293. The governors have agreed to reduce the free reserves over a number of years by increasing the amount of grants awarded and hence setting budgets with a deficit. The budgeted deficit in 2021/22 is £34,451.
Going Concern
Having reviewed the financial performance for the year, the budget for the eleven months to 31 August 2022 and plans for future years, the Governors confirm that the financial statements for the year to 30 September 2021 can be prepared on the going concern basis.
Investment Policy
The Governors continued with the Investment Policy adopted in December 2018. Currently the Governors do not wish to impose any specific ethical investment policy; however potential investments are assessed to ensure congruence with the aims and ethos of the Foundation.
Plans for the Future
The Foundation has a long-term strategy to build up its asset base in order to provide more income for the important grant needs of the community it serves.
Risk
The Risk Register is considered in detail at each Governors meeting and appropriate actions are being taken to mitigate any risks identified.
As at 30 September 2021 there were no major risks facing the Foundation.
4. STRUCTURE, GOVERNANCE & MANAGEMENT
Governing Documents & Governors
The Foundation was set up under a Scheme of the Charity Commissioners dated 16 September 1988.
The Foundation is controlled by a body of Governors, who are the trustees of the Foundation, all of whom are members of the General Meeting of Governors. Governors are elected to serve for a four-year period and may be re-elected for subsequent four-year periods. There is a maximum of fourteen Governors, none of whom receives any remuneration or benefit from the Foundation.
One Governor may be appointed as a Representative Governor by the Governors of the Cathedral School and Janet Simpson is currently that Governor. One other Governor may be appointed as a Representative Governor by the Guy’s & St Thomas’ Charitable Trust and Tim McNally is currently that Governor.
The Governors are pleased that Canon Michael Rawson is currently a Governor. He is Sub Dean and Canon Pastor at Southwark Cathedral. The Foundation has had a long relationship with Southwark Cathedral and the Governors are delighted that the relationship continues, and that Michael is able to represent the concerns of the local community.
Governor Selection & Training
The Governor Selection Committee meets as necessary to consider new appointments of Governors. There are currently four vacancies for Governors on the Board.
The Foundation is fortunate to have many highly qualified and experienced Governors who are also active in other charities. In keeping with the need to maintain the highest levels of governance, the Foundation encourages all Governors to participate in training that is relevant and which will assist them in their roles. Through our membership of the Charity Finance Group and the Association of Charitable Foundations and also from professional advisers, various courses are available in many of the specialist areas that affect the Foundation.
6
Newcomen Collett Foundation
Report of the Governors for 2021
The management of the Foundation and its assets is largely undertaken by two experienced professional staff in the persons of the Clerk and the Surveyor of Marshall’s Charity, and the Foundation ensures that both of them undertake appropriate continuing professional education relevant to its needs. Both of them ensure that the relevant knowledge gained in this training is forwarded to the Governors.
Governance
As with the corporate world, the charity sector has recognised that good governance and transparency are key responsibilities in their relationship with the community they serve. The Newcomen Collett Foundation seeks to ensure that it meets the highest standards in these areas consistent with the size of its operations and funds. To this end, the Foundation seeks to ensure compliance with the Charity Governance Code.
There are currently three committees: an Investment Committee, an Audit Committee and a Governor Selection Committee. All committees have formal terms of reference and no committee has delegated powers to act without the authority of the General Meeting of Governors. The Governors rely greatly on the careful and thoughtful work undertaken by these committees which allows the General Meeting to deal more effectively with the many issues which are its concern.
The Foundation has a working agreement with Marshall’s Charity, together with a license to occupy the premises at Newcomen Street, which sets out the terms for sharing staff between the two charities.
In order to allow potential beneficiaries to find out more easily about the work of the Foundation and their ability to qualify for grants, the Foundation has its own website, www.newcomencollett.org.uk. As well as providing information about the Foundation, a link on this website allows applications to be processed online.
Audit Committee
There are normally two meetings each year of the Committee. One of the meetings is concerned with the planning of the independent examination to be carried out and identifying the areas of special interest which the Governors wish to be examined by the independent examiner. The other meeting reviews the annual accounts and the outcome of the independent examination work. In the absence of the Clerk, the independent examiner also has the opportunity to report to the Governors in confidence on any issues that might have arisen during the independent examination.
Management
The day-to-day management of the affairs of the Foundation is delegated to the Clerk and the Field Officer. The Governors believe that the operation of a Foundation with assets and income of this scale requires management by professionally trained staff with its necessary costs. They are immensely grateful to both the Clerk and the Field Officer for their dedication to the work of the Foundation, as well as the support given by Jim Keegan as Surveyor to Marshall’s Charity, who reports regularly to the Governors on matters related to the property portfolio of the Foundation.
Remuneration Committee
The pay arrangements for Foundation staff employed by Marshall’s Charity are dealt with by the Remuneration Committee of Marshall’s Charity. In view of the close working relationship between the charities, the Committee invites the Newcomen Collett Foundation to nominate representatives to join them for its meetings, and the Chair and Vice Chair of the Foundation attended in 2021. At its annual meeting the Committee receives a report from the Clerk on staff issues and performance, and then considers sector and national pay rates and conditions, and levels of inflation, before preparing its recommendations. The Chair and Vice Chair advise the Governors on salary reviews for its own members of staff.
Remuneration Policy
The Governors are grateful for the commitment and enthusiasm of the Foundation’s staff. The Governors take the view that it is essential to attract and retain staff with the appropriate skills and capabilities and reward them fairly for delivering the Foundation’s important work. In order to do this the Foundation reviews its salaries on a regular basis and this is done in conjunction with Marshall’s Charity Remuneration Committee.
Statement of Governors’ Responsibilities
The Governors are responsible for preparing the Report of the Governors and the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of its incoming resources and application of resources of the Foundation for that period.
In preparing these financial statements the Governors are required to:
- select suitable accounting policies and then apply them consistently;
7
Newcomen Collett Foundation
Report of the Governors for 2021
-
observe the methods and principles in the Charities SORP;
-
make judgements and accounting 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 Foundation will continue in operation.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Foundation’s transactions and disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Report) Regulations 2008 and the provisions of its Constitutional Scheme. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the Foundation’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislations in other jurisdictions.
Approved by the Governors on 10 March 2022 and signed on their behalf:
Tim McNally Chairman
Robert Ashdown Governor
8
Newcomen Collett Foundation
Independent Examiner’s Report to the Governors for 2021
I report to the Trustees on my examination of the accounts of Newcomen Collett Foundation for the year ended 30 September 2021 which are set out on pages 9 to 19.
Respective responsibilities of trustees and examiner
The trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.
I report in respect of my examination of the Trust’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Lee Stokes FCA Haysmacintyre LLP, 10 Queen Street Place London EC4R 1AG
Date: 10 March 2022
Newcomen Collett Foundation
9
Statement of Financial Activities for the year ended 30th September 2021
| Notes INCOME AND ENDOWMENTS FROM: Investment income Property rentals Dividends & other income 4 Total income EXPENDITURE ON: Raising funds 14 Charitable activities 14 Total expenditure Net income/(expenditure) before gains and losses on investment Net recognised gains / (losses) on investment Property - unrealised 2 & 7 Securities - realised & unrealised 3 Net income/(expenditure) after gains and losses on investment Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted Endowment Total Total Funds Fund 2021 2020 |
|---|---|
| £ £ £ £ 89,616 - 89,616 137,515 1,880 - 1,880 295 |
|
| 91,496 - 91,496 137,810 |
|
| 46,545 - 46,545 73,075 142,665 - 142,665 131,566 |
|
| 189,210 - 189,210 204,641 |
|
| (97,714) - (97,714) (66,831) - 563,854 563,854 78,219 - 257,385 257,385 4,670 |
|
| (97,714) 821,239 723,525 16,058 - - - - |
|
| (97,714) 821,239 723,525 16,058 462,007 3,396,868 3,858,875 3,842,817 |
|
| 364,293 4,218,107 4,582,400 3,858,875 |
All the above amounts relate to continuing activities and include all recognised gains and losses.
The notes on pages 12 to 19 form part of these accounts.
Newcomen Collett Foundation
10
Balance Sheet at 30th September 2021
| Notes FIXED ASSETS Investments - General Purposes Freeholds 2 Securities 3 CURRENT ASSETS Debtors and prepayments 5 Cash at bank and in hand Creditors: Amounts falling due within one year 6 Net current assets NET ASSETS FUNDS Unrestricted Fund Endowment Fund 7 TOTAL FUNDS |
2021 | 2021 | 2020 | 2020 |
|---|---|---|---|---|
| £ 2,967 101,816 |
£ 2,710,000 1,822,213 |
£ 39,950 149,520 |
£ 2,144,920 1,564,828 |
|
| 3,709,748 149,127 |
||||
| 104,783 54,596 |
189,470 40,343 |
|||
| 3,858,875 | ||||
| 462,007 3,396,868 |
||||
| 3,858,875 |
Approved by the Governors and authorised for issue on 10 March 2022 and signed on their behalf:
Tim McNally
Tim McNally Governor Robert Ashdown Governor
The notes on pages 12 to 19 form part of these accounts.
Newcomen Collett Foundation
11
Statement of Cash Flows for the year ended 30th September 2021
| Notes Cash flows from operating activities: Net cash provided by (used in) operating activities 15 Cash flows from investing activites: Dividends, interest and rents from investments Addition to property Proceeds from the sale of investments Purchase of investments Net cash provided by (used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 2020 |
|---|---|
| £ £ (137,974) (242,554) 91,496 137,810 (1,226) (50,701) 507,779 200,000 (507,779) (100,000) |
|
| 90,270 187,109 (47,704) (55,445) 149,520 204,965 101,816 149,520 |
12
Newcomen Collett Foundation
Notes to the accounts for the year ended 30th September 2021
1. Accounting Policies
-
a) The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2015) (Second Edition effective 1st January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.
-
b) The Foundation constitutes a public benefit entity as defined by FRS102.
-
c) The governors considered that there are no material uncertainties about the Foundation's ability to continue as a going concern. This includes consideration of the impact of Covid-19.
-
d) All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. In previous years rental income was credited when receivable. The revised policy accounts for rental income in the period to which it relates.
Security income is credited on an accruals basis.
-
e) Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Repairs and renewals to property are charged to the Statement of Financial Activities when incurred. Grants are treated as expenditure when authorised by the governors and communicated to the beneficiaries, not when the grants are paid.
-
f) Staff pension contributions are made under defined contributions schemes, and the funds are held by fully independent insurance companies. No liability exists under the scheme except for the amount of the contributions charged in the year.
-
g) Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
-
h) All staff support costs have been allocated on the estimated basis of time spent on those categories. All other overheads have then been allocated between the categories on the basis of the total staff costs.
-
i) All securities (general purposes) are shown at bid value and properties are valued at open market value. All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sales' proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
-
j) The Foundation has a single permanent endowment. The governors have the powers to invest the capital in perpetuity and apply the income to the general purposes of the Foundation, namely to provide educational grants to young people in the London Borough of Southwark.
-
k) In the application of the accounting policies, governors are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the valuation of properties and are discussed below.
13
Newcomen Collett Foundation
Notes to the accounts for the year ended 30th September 2021
In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
- l) Basic cost instruments are initially recognised at transaction value and subsequently measured at amortised with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.
14
Newcomen Collett Foundation
Notes to the accounts for the year ended 30th September 2021 (continued)
2 Freehold properties
| Freehold properties | |
|---|---|
| Opening balance at 1st October 2020 Additions during the year Revaluation of properties at year end Closing balance at 30th September 2021 |
2021 2020 |
| £ £ 2,144,920 2,016,000 1,226 50,701 563,854 78,219 |
|
| 2,710,000 2,144,920 |
The property portfolio has been valued by Mr J Keegan, who is the Surveyor to Marshall's Charity. The valuation is on the basis of open market value.
3 Securities - UK Managed Funds
| Securities - UK Managed Funds | |
|---|---|
| Market value at 1st October 2020 Additions during the year Disposal during the year Surplus/(loss) on sale of securities Net gain on revaluations during the year Market value at 30th September 2021 Historical cost at 30th September 2021 Securities consisted of the following holdings: |
2021 2020 |
| £ £ 1,564,828 1,660,158 507,779 100,000 (507,779) (200,000) 45,275 (4,544) 212,110 9,214 |
|
| 1,822,213 1,564,828 |
|
| 1,457,179 1,150,022 |
|
| 2021 2020 Market Value |
|
| £ £ - 462,504 980,560 856,678 841,653 245,646 |
Newton Global Growth & Income Fund units Cazenove Capital Charity Multi-Asset Fund CCLA COIF Charities Investment Fund
| Market Value | Market Value |
|---|---|
| 2021 | 2020 |
| £ | £ |
| - | 462,504 |
| 980,560 | 856,678 |
| 841,653 | 245,646 |
Newcomen Collett Foundation
15
Notes to the accounts for the year ended 30th September 2021 (continued)
| 4 Dividends and interest on securities Other interest received and other income |
2021 2020 |
|---|---|
| £ £ 1,880 295 |
|
| 1,880 295 |
5 Debtors and prepayments
| Debtors and prepayments | |
|---|---|
| Rents due from tenants and agents Other debtors Rents due from tenants and agents |
2021 2020 |
| £ £ - 39,950 2,967 - |
|
| 2,967 39,950 |
- 6 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | |
|---|---|
| Grants authorised but unpaid Value Added Tax Other creditors |
2021 2020 |
| £ £ 34,706 32,174 1,659 6,345 18,231 1,824 |
|
| 54,596 40,343 |
16
Newcomen Collett Foundation
Notes to the accounts for the year ended 30th September 2021 (continued)
7 Endowment Fund
| Balance brought forward from previous year Adjustment to market value of properties Adjustment to market value of securities Profit/(Loss) on sale of securities |
2021 2020 |
|---|---|
| £ £ 3,396,868 3,313,979 563,854 78,219 212,110 9,214 45,275 (4,544) |
|
| 4,218,107 3,396,868 |
8 Governors and Related Party Transactions
-
a) In 2021 £NIL ( 2020 - £NIL ) was paid to Governors for travel expenses. No remuneration was paid to Governors by the Foundation, nor were any expenses re-imbursed to Governors by payment to a third party (2020 - £NIL).
-
b) Governors were not involved in any transactions, except where the Foundation made grants to organisations or individuals within schools with which a Governor is involved. In those cases, the Governor involved did not vote. This was the situation for the following grants:
-
i. Grant made to the Cathedral School of St Saviour & St Mary Overie for £2,000, where Janet Simpson is the Chair of Governors and Canon Michael Rawson is the Vice Chair of Governors. ii. Uniform grants made to pupils at St James' Church of England Primary School where Tim McNally's partner is a governor.
-
iii. Grant made to Bede House for £1,000 where Tim McNally's firm supplies ICT services.
-
c) There were no other related party transactions during the year.
9 Independent Examiner fees
Fees paid to the Independent Examiner in the year totalled £1,500 (2020 - £1,450) and were all in respect of independent examination services.
10 Analysis of Net Assets between Funds
| Restricted Funds Endowment Fund Unrestricted Funds Unallocated Income |
2021 2020 |
|---|---|
| Net Net Investments Current Investments Current General Assets/ Total General Assets/ Total Purposes (Liabilities) Purposes (Liabilities) |
|
| £ £ £ £ £ £ 4,218,107 - 4,218,107 3,396,868 - 3,396,868 314,106 50,187 364,293 312,880 149,127 462,007 |
|
| 4,532,213 50,187 4,582,400 3,709,748 149,127 3,858,875 |
Newcomen Collett Foundation
17
Notes to the accounts for the year ended 30th September 2021 (continued)
11 Analysis of staff costs and remuneration of key management personnel
| Salaries and assessable benefits Social security costs Other pension contributions Average number of staff (including full-time and part-time staff) Field Officer |
2021 2020 |
|---|---|
| £ £ |
|
| 13,466 13,866 478 524 2,160 2,370 |
|
| 16,104 16,760 |
|
| 1 1 |
|
| 1 1 |
In 2021, no employees received remuneration above £60,000 (2020- 0).
12 Allocation of support costs
The breakdown of support costs and how these were allocated between Governance and other support costs is shown below:
| Cost type Staff costs Office costs & overheads |
2021 Governance Other related support costs TOTAL Basis of Apportionment |
|---|---|
| £ £ £ 2,171 48,038 50,209 1,673 22,310 23,983 3,844 70,348 74,192 Staff time Staff time |
| Cost type Staff costs Office costs & overheads |
2020 Governance Other related support costs TOTAL Basis of Apportionment |
|---|---|
| £ £ £ 1,850 47,513 49,363 1,618 14,225 15,843 3,468 61,738 65,206 Staff time Staff time |
All staff support costs have been allocated on the estimated basis of time spent on those categories. All other overheads (except independent examination costs, which have been charged to Governance) have been allocated between the categories on the basis of the total staff costs.
13 Allocation of support costs
| ation of support costs | |
|---|---|
| Investment Management Grants |
2021 2020 |
| £ £ |
|
| 36,170 29,695 |
|
| 38,022 35,511 |
|
| 74,192 65,206 |
18
Newcomen Collett Foundation
Notes to the accounts for the year ended 30th September 2021 (continued)
14 Expenditure
| Cost of raising funds Investment Management Property costs Charitable activities Grant costs available (see note 16) |
Direct Allocated 2021 Direct Allocated 2020 costs support TOTAL costs support TOTAL costs costs |
|---|---|
| £ £ £ £ £ £ - 36,170 36,170 - 29,695 29,695 10,375 - 10,375 43,380 - 43,380 |
|
| 10,375 36,170 46,545 43,380 29,695 73,075 104,643 38,022 142,665 96,055 35,511 131,566 |
|
| 115,018 74,192 189,210 139,435 65,206 204,641 |
15 Reconciliation of net movement in funds to net cash from operating activities
| Net income for the reporting period (as per the statement of financial activities) (Gains) on investments Dividends, interest and rents from investments Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities |
2021 2020 |
|---|---|
| £ £ |
|
| 723,525 16,058 |
|
| (821,239) (82,889) |
|
| (91,496) (137,810) |
|
| 36,983 (20,630) |
|
| 14,253 (17,283) |
|
| (137,974) (242,554) |
19
NEWCOMEN COLLETT FOUNDATION
Notes to the accounts for the year ended 30th September 2021 (continued)
16 Major grants during the year
| Major grants during the year | ||
|---|---|---|
| Recipient Pembroke House South London Strings Cathedral School Acet UK ONG Africa Association Mousetrap Theatre Projects Goose Green School Inspire New Creative Performing Arts Mountview Academy of Theatre Arts Bounce Forward Flautotonic Echoes of Hope Southwark Playhouse Camberwell After School Project Southwark African Initiative Develop. Friars Primary (Foundation) School National Theatre Afro-Brazilian Arts & Cultural Exch. The Young Vic Sacred Heart Catholic School Camelot Primary School Lyndhurst Primary School Hollydale Primary School Team Up Bede House Snowsfields Defibrillator Theatre Southwark Travellers Action Group Other grants to organisations & individuals - 390 Less: Cancellations Total net grants |
2021 £ Recipient 3,000 Cathedral School 2,350 Alfred Salter Primary School 2,000 Brunswick Park School 2,000 Pilgrims Way School 2,000 The Young Vic 2,000 St Thomas the Apostle School 2,000 Southwark Playhouse 2,000 Cathedral Primary School 2,000 John Ruskin Primary School 2,000 Oliver Goldsmith School 2,000 Youth Learning Network Ltd 1,800 Bizzie Bodies CIC 1,800 Black Heroes Foundation 1,700 Angel Oak Academy 1,363 Multi-Story Music 1,360 Unicorn Theatre 1,350 STEP 1,000 Lamb. & South. PS Football 1,000 Half Moon Theatre 1,000 London Children's Book Project 1,000 The Intrapreneurs Charity 1,000 1,000 1,000 1,000 1,000 1,000 1,000 43,723 71,601 Other grants to organisations & individuals - 351 115,324 (10,681) Less: Cancellations 104,643 Total net grants |
2020 |
| £ 2,000 2,000 1,200 1,160 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 |
||
| 23,360 94,410 |
||
| 117,770 (21,715) |
||
| 96,055 |