**Charity registration number 326026**
**THE MICHAEL O'SULLIVAN CHARITABLE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022**
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|C M Austin|
|---|---|
||F O'Mahony|
||R Chamberlain|
|**Charity number**|326026|
|**Registered office**|Blue Hills|
||Three Gates Lane|
||Haslemere|
||Surrey|
||GU27 2ET|
|**Independant examiner**|Azets Audit Services|
||Gladstone House|
||77-79 High Street|
||Egham|
||Surrey|
||United Kingdom|
||TW20 9HY|
|**Bankers**|Barclays Bank Plc|
||1 Churchill Place|
||London|
||E14 5HP|
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Statement of cash flows|6|
|Notes to the financial statements|7 - 13|
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
The Trustees present their annual report and financial statements for the year ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed dated 15 January 1982, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).
## **Objectives and activities**
The charity's principal activity continues to be that of making grants to charitable or other organisations chosen by the trustees, within the UK, as a way of providing benefits.
The charity's aim is to support people with disabilities or epilepsy.
To further its aim, the charity makes donations to organisations that work with people with epilepsy or disabilities.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The charity donated funds totalling £81,377 (2021: £14,000) to six (2021: one) organisations during the year.
## **Financial review**
The charitable fund showed a surplus of £34,028 (2021: £3,878,336) for the year, resulting in overall reserves being carried forward of £4,408,704 (2021: £4,374,726). The surplus is primarily due to gains made on the charity's investment portfolios, rental income and a legacy.
As at 5 April 2022, the charity held £4,408,704 (2021: £4,374,676) of unrestricted funds and £50 (2021: £50) of restricted funds.
The charity's investment strategy during the year was to use moderate to low risk investment portfolios, managed through a fund manager, to provide a mixture of capital growth and income.
The charity does not raise funds from the general public and so is not registered with the Fundraising Regulator.
The trustees have set a formal reserves policy to ensure that income received is distributed annually via donation and/or grant, keeping a sum aside for routine expenses. These distributions will focus on charities who support people with disability or epilepsy.
With the receipt of a substantial legacy, the trustees will be reviewing the future activities and strategy of the charity in the 2022-23 and 2023-24 financial years. As part of that review, the reserves policy will also be re-evaluated.
The trustees do not currently maintain a risk register.
## **Structure, governance and management**
The Charity was established under Deed of Trust on 15 January 1982.
The Trustees who served during the year and up to the date of signature of the financial statements were: C M Austin
F O'Mahony R Chamberlain
In the process of appointing and recruiting new trustees into the charity, the existing trustees would seek recommendations from professional advisors.
- 1 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
The trustees meet in person or hold conference calls twice per year. Requests for donations are collated as received. and analysis of these and of the charities making the requests carried out. The trustees will then discuss the requests before deciding whether to approve donation. It is anticipated that the majority of donations will be made to charities chosen by the Trust, but the charity will be open to requests being made. C Austin carries out the day-to-day administration of the charity’s affairs.
The trustees are the key management personnel of the charity. The charity reimbursed one trustee for the amount of £2,879 for purchases made on the charity's behalf (2021: no trustees received reimbursed expenses).
The Trustees' report was approved by the Board of Trustees.
C M Austin
## **Trustee**
2 November 2022
- 2 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
I report to the Trustees on my examination of the financial statements of The Michael O'Sullivan Charitable Trust (the charity) for the year ended 5 April 2022.
## **Responsibilities and basis of report**
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements to be reached.
## **Paul Creasey FCA Azets Audit Services**
Gladstone House 77-79 High Street Egham Surrey TW20 9HY United Kingdom
Dated: 15 December 2022
- 3 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
62,936
-
Investments
**4**
47,891
-
**Total income**
110,827
-
**Expenditure on:**
Raising funds
**5**
4,162
-
Charitable activities
**6**
87,234
-
**Total expenditure**
91,396
-
Net gains/(losses) on
investments
14,597
-
**Net movement in funds**
34,028
-
Fund balances at 6 April 2021
4,374,676
50
**Fund balances at 5 April**
**2022**
4,408,704
50|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
62,936
3,789,350
-
47,891
9,345
-
110,827
3,798,695
-
4,162
3,789
-
87,234
18,200
-
91,396
21,989
-
14,597
101,630
-
34,028
3,878,336
-
4,374,726
496,340
50
4,408,754
4,374,676
50|**Total**
**2021**
**£**
3,789,350
9,345|
|---|---|---|
|||3,798,695|
|||3,789|
|||18,200|
|||21,989|
|||101,630|
|||3,878,336
496,390|
|||4,374,726|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **BALANCE SHEET**
## _**AS AT 5 APRIL 2022**_
|**Notes**
**Fixed assets**
Investment properties
**10**
Investments
**11**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**8**
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds
General unrestricted funds
Revaluation reserve|**2022**
**£**
**£**
985,000
3,397,387
4,382,387
579
28,187
28,766
(2,399)
26,367
4,408,754
50
4,052,791
355,913
4,408,704
4,408,754|**2021**
**£**
**£**
-
587,490
587,490
3,789,929
2,527
3,792,456
(5,220)
3,787,236
4,374,726
50
4,099,245
275,431
4,374,676
4,374,726|**2021**
**£**
**£**
-
587,490
587,490
3,789,929
2,527
3,792,456
(5,220)
3,787,236
4,374,726
50
4,099,245
275,431
4,374,676
4,374,726|
|---|---|---|---|
||||587,490
3,787,236|
||||4,374,726|
||||50
4,374,676|
||||4,374,726|
The financial statements were approved by the Trustees on 2 November 2022
C M Austin **Trustee**
- 5 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 5 APRIL 2022**_
|**2022**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash absorbed by operations
**19**
(31,281)
**Investing activities**
Purchase of investments
(2,799,792)
Proceeds on disposal of investments
2,808,842
Investment income received
47,891
**Net cash generated from investing**
**activities**
56,941
**Net cash used in financing activities**
-
**Net increase/(decrease) in cash and cash**
**equivalents**
25,660
Cash and cash equivalents at beginning of year
2,527
**Cash and cash equivalents at end of year**
28,187|**2021**
**£**
**£**
(20,789)
(6,152)
9,393
7,618
10,859
-
(9,930)
12,457
2,527|
|---|---|
- 6 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **1 Accounting policies**
## **Charity information**
The Michael O'Sullivan Charitable Trust is an unincorporated trust, registered with the Charity Commission in England and Wales. The principal office is disclosed on page 1.
## **1.1 Accounting convention**
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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, except for investments which are included at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **1.4 Income**
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to he income and the amount can be quantified with reasonable accuracy and are recognised in the period to which they relate.
Dividends and interest are included in the Statement of Financial Activities when received.
All income is shown net of any irrecoverable tax deductions.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accrual basis. All expenses including support costs and governance costs are allocated or apportioned to applicable expenditure headings.
- 7 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **1 Accounting policies**
## **(Continued)**
Resources expended comprise:
- Charitable Activities as disclosed in the SOFA are as follows: expenditure on charitable activities and other resources expended.
The costs of charitable activities include direct expenditure. The accounting treatments for these are as follows:
- The charitable activities flow from the Charity's vision and purpose, which are highlighted in the Trustees' Report.
## **1.6 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.8 Cash and cash equivalents**
Cash at bank and in hand includes cash and short term highly liquid investments with an original maturity date of three months or less.
## **1.9 Taxation**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **1.10 Creditors and provisions**
Creditors and provisions are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount to settle the past obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their transaction price after allowing for any trade discounts due unless the arrangement constituted a financing transaction in which case the transaction is measured at present value of future payments discounted at the prevailing market rate of interest. Other financial liabilities are initially measured fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest rate method.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
- 8 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Legacies receivable|62,936|3,789,350|
During the 2020-21 financial year, the Trust was notified of a legacy and recognised the income based on its expected receivable amount which was subsequently received in early 2022. The value of the cash and assets actually received exceeded expectations. The additional amount is reflected under legacies above.
## **4 Investments**
|**Unrestricted**
**funds**
**2022**
**£**
Rental income
40,375
Income from managed portfolio
7,515
Bank and other interest receivable
1
47,891|Total
2021
£
-
9,337
8|
|---|---|
||9,345|
## **5 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Investment management|4,162|3,789|
||4,162|3,789|
- 9 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **6 Charitable activities**
|Donations
Audit and Independent Examination fees
Repairs & maintenance
Legal & professional fees
Ground rent expense
**Auditor's remuneration**
The analysis of auditor's remuneration is as follows:
**Fees payable to the charity's auditor and associates:**
Audit of the charity's annual accounts
**Non-audit services**
Independent examination of the charity's annual accounts||**2022**
**£**
81,377
2,387
2,365
1,080
25
87,234
**2022**
**£**
-
2,400|**2021**
**£**
14,000
4,200
-
-
-|
|---|---|---|---|
||||18,200|
||||**2021**
**£**
4,200|
||||-|
## **7 Auditor's remuneration**
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. The Trustees are also the Key Management Personnel of the charity,
The charity reimbursed one trustee for the amount of £2,879 for purchases made on the charity's behalf (2021: no trustees received reimbursed expenses).
## **9 Employees**
No salaries or wages have been paid to employees, including the board of trustees, during the year.
## **10 Investment property**
|**Fair value**
At 6 April 2021
Additions
At 5 April 2022|**2022**
**£**
-
985,000|
|---|---|
||985,000|
- 10 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **10 Investment property**
## **(Continued)**
Investment property comprises of 47 Moreton Street, London, SW1V 2NY and 14 Beatrice Lodge, Beatrice Road, Oxted RH8 0QH. The fair value of the investment properties have been arrived at on the basis of valuations carried out at 13 August 2020 and 07 September 2020 by Egerton Chartered Surveyors & White and Sons, who are not connected with the charity. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The trustees consider the values of the properties at 30 April 2022 to be similar to the valuations made in 2020.
## **11 Fixed asset investments**
|**Cost or valuation**
At 6 April 2021
Additions
Valuation changes
Disposals
At 5 April 2022
**Carrying amount**
At 05 April 2022
At 05 April 2021
Investments at fair value comprise:
UK Quoted Corporate Bond
UK Quoted Unit Trusts
**12**
**Financial instruments**
**Carrying amount of financial assets**
Instruments measured at fair value through profit or loss|**Listed**
**investments**
**£**
587,490
5,604,142
14,597
(2,808,842)
3,397,387
3,397,387
587,490
**2022**
**2021**
**£**
**£**
86,892
92,374
3,310,495
495,116
3,397,387
587,490
**2022**
**2021**
**£**
**£**
3,397,387
587,490|
|---|---|
Income generated by the financial instruments is disclosed in note 4 to the accounts. Net gains or losses, including changes in fair value, are disclosed in the statement of financial activities.
- 11 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
|**13**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**14**
**Cash and bank**
General Fund - Reserve Account
General Fund - Current Account
Trust Capital - Current Account
**15**
**Creditors: amounts falling due within one year**
Trade creditors
Accruals and deferred income|**2022**
**£**
579
**2022**
**£**
25,187
2,950
50
28,187
**2022**
**£**
-
2,399
2,399|**2021**
**£**
3,789,929|
|---|---|---|
|||**2021**
**£**
(10)
2,487
50|
|||2,527|
|||**2021**
**£**
30
5,190|
|||5,220|
|**16**
**Unrestricted income funds**
**Balance at**
**6 April 2021**
**£**
General Funds
4,374,676
4,374,676|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Revaluations**
**gains and**
**losses**
**Balance at**
**5 April 2022**
**£**
**£**
**£**
**£**
110,827
(90,065)
14,597
4,410,035
110,827
(90,065)
14,597
4,410,035|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Revaluations**
**gains and**
**losses**
**Balance at**
**5 April 2022**
**£**
**£**
**£**
**£**
110,827
(90,065)
14,597
4,410,035
110,827
(90,065)
14,597
4,410,035|
|---|---|---|
|||4,410,035|
## **17 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
## **18 Non-cash transactions**
During the financial year ended 5 April 2021, the charity recognised a legacy receivable, comprising investment properties and a portfolio of listed investments. Legal title of the assets passed to the charity during the year ended 5 April 2022. The addition of these assets to fixed assets is a non-cash transaction.
- 12 -
## **THE MICHAEL O'SULLIVAN CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
|**19**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Movements in working capital:
(Increase) in debtors
(Decrease)/increase in creditors
**Cash absorbed by operations**|**2022**
**2021**
**£**
**£**
34,028
3,878,336
(47,891)
(9,345)
(14,597)
(101,630)
-
(3,789,350)
(2,821)
1,200
(31,281)
(20,789)|
|---|---|
## **20 Analysis of changes in net funds**
The charity had no debt during the year.
- 13 -