Charity registration number 326314
S O CHARITABLE TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
S O CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
N Ohayon S Ohayon A Ohayon
Charity number 326314 Registered office 19 Oxford Terrace Gateshead Tyne & Wear NE8 1RQ Independent examiner RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Bankers Lloyds Bank plc 15 West Street Gateshead Tyne and Wear NE8 1DP
S O CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 13 |
S O CHARITABLE TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 5 APRIL 2021
The trustees present their annual report and financial statements for the year ended 5 April 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, 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) (effective 1 January 2015)”
Objectives and activities
The S O Charitable Trust is constituted under trust deed and is a registered charity, number 326314.
The main object of the charity is to apply the income of the trust fund and so much of the capital of the trust fund as the settler determines to charity, at the trustees’ discretion, for a period of fifty years.
We have referred to the guidance in the Charity Commission general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Achievements and performance
During the year the charity continued to receive income by way of rents and investment income. The Trustees continue to look for suitable projects to support in the future.
Financial review
The Trustees have maintained the level of charitable donations made during the year out of cash reserves.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The Charity was formed as a trust under a trust deed dated 2 September 1982 and is registered with the Charity Commission - Registration number 326314.
The trustees who served during the year and up to the date of signature of the financial statements were: N Ohayon
S Ohayon A Ohayon
Asset cover for funds
The Trustees are satisfied that the assets of the charity are available and adequate to fulfil its obligations.
Covid-19 Risk
The ongoing COVID-19 pandemic continues to generate a significant level of uncertainty in the global economy. The trustees regularly assess the likely effects on the charity's operations in an attempt to mitigate the risk as far as possible.
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S O CHARITABLE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
The Trustees' r eport was approved by the Board of Trustees.
A Ohayon Trustee Dated: 26 May 2022
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S O CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF S O CHARITABLE TRUST
I report to the trustees on my examination of the financial statements of S O Charitable Trust (the charity) for the year ended 5 April 2021.
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
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:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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.
Stephen Slater (FCA)
Member of the Institute of the Chartered Accountants in England and Wales RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG
Dated: 26 May 2022
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S O CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021
| Notes Income from: Investments 2 Expenditure on: Raising funds 3 Charitable activities 4 Total resources expended Net gains on investments 8 Net movement in funds Fund balances at 6 April 2020 Fund balances at 5 April 2021 |
2021 £ 128,764 21,342 109,490 130,832 780 (1,288) 1,060,277 1,058,989 |
2020 £ 123,563 15,716 104,795 120,511 (2,113) 939 1,059,338 1,060,277 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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S O CHARITABLE TRUST
BALANCE SHEET
AS AT 5 APRIL 2021
| Notes Fixed assets Investment properties 9 Investments 10 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2021 £ £ 787,833 2,841 790,674 158,648 270,265 428,913 (160,598) 268,315 1,058,989 1,058,989 1,058,989 |
2020 £ £ 715,584 2,061 717,645 213,046 292,806 505,852 (163,220) 342,632 1,060,277 1,060,277 1,060,277 |
|---|---|---|
The accounts were approved by the Trustees and authorised for issue on ............................
A Ohayon Trustee
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
Charity information
The Charity was formed as a trust under a trust deed dated 2 September 1982 and is registered with the Charity Commission - Registration number 326314.
1.1 Accounting convention
The accounts have been prepared in accordance with 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 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments 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.
This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity's operations are mitigated. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. All income represents income received from properties and investment income.
1.5 Resources expended
Charitable expenditure relates to direct charitable activities.
Governance costs are general costs which have been incurred in order that the charity can operate effectively and to generate the information required for public accountability.
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
1.7 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.
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
2 Investments
| Rental income Income from listed investments Interest receivable Raising funds Fundraising and publicity Management charges Repairs and renewals Professional fees Insurance Rates, rent and electricity |
2021 £ 114,198 - 14,566 128,764 2021 £ 6,689 2,991 11,417 245 - 21,342 |
2020 £ 105,649 50 17,864 123,563 2020 £ 6,295 5,102 2,276 1,019 1,024 15,716 |
|---|---|---|
3 Raising funds
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
4 Charitable activities
| Donations and grants Share of support costs (see note 5) Share of governance costs (see note 5) |
2021 £ 107,834 936 720 109,490 |
2020 £ 102,788 1,407 600 104,795 |
|---|---|---|
5 Support costs
| Support costs Governance costs £ £ Depreciation - - Motor running costs 891 - Bank charges 45 - Accountancy - 720 936 720 Analysed between Charitable activities 936 720 |
2021 £ - 891 45 720 1,656 1,656 |
2020 Basis of allocation £ 250 Usage 1,157 Invoiced - 600 Invoiced 2,007 2,007 |
|---|---|---|
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
7 Employees
There were no employees during the year.
| 8 Net gains/(losses) on investments Revaluation of investments 9 Investment property Fair value At 6 April 2020 Additions through external acquisition At 5 April 2021 |
2021 £ 780 |
2020 £ (2,113) 2021 £ 715,584 72,249 787,833 |
|---|---|---|
The fair value of the investment property has been arrived at on the basis of the trustees' best estimate of market value.
Investment property comprises:
| Market value £ Blackhill, Consett - 7 John Street 25,000 Unit 1, Mill Lane, Skipton 60,000 Supermarket, Willow Street, Lancaster 82,000 11 Bumpers Lane, Sealand Industrial Estate, Chester 80,000 Seymour Parade, Seymour Lane, Southampton 200,000 31 Stephenson St, Gateshead 41,763 27 Berryhill Close, Blaydon, NE21 5JW 57,201 16a Whinneyfield Rd, Walkergate, NE6 4HX 62,328 70 & 72 Windsor Avenue NE8 4NG 107,292 47 Whitefield Terrace, Newcastle, NE6 5DU 72,249 787,833 |
Cost £ - 39,940 19,108 42,520 60,144 41,763 57,201 62,328 107,292 72,249 502,545 |
|---|---|
The property shown with no cost represents a gift at no consideration.
10 Fixed asset investments
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
| 10 | Fixed asset investments | (Continued) | |
|---|---|---|---|
| Listed | |||
| investments | |||
| £ | |||
| Cost or valuation | |||
| At 6 April 2020 | 2,061 | ||
| Valuation changes | 780 | ||
| At 5 April 2021 | 2,841 | ||
| Carrying amount | |||
| At 05 April 2021 | 2,841 | ||
| At 05 April 2020 | 2,061 | ||
| 11 | Financial instruments | 2021 | 2020 |
| £ | £ | ||
| Carrying amount of financial assets | |||
| Instruments measured at fair value through profit or loss | 2,841 | 2,061 |
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
| 12 Debtors Amounts falling due within one year: Other debtors Amounts falling due after more than one year: Other debtors Total debtors 13 Loans and overdrafts Loans from related parties Payable within one year 14 Creditors: amounts falling due within one year Loans from related parties Trade creditors Accruals and deferred income |
2021 £ 34,848 2021 £ 123,800 158,648 2021 £ 157,952 157,952 2021 £ 157,952 929 1,717 160,598 |
2020 £ 27,046 2020 £ 186,000 213,046 2020 £ 157,952 157,952 2020 £ 157,952 929 4,339 163,220 |
|---|---|---|
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S O CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
15 Related party transactions
Included within creditors due within one year is an amount of £157,952 (2020 - £157,952) owed to the trustees of the charity.
There are no set terms as to the repayment of this amount and no interest accrued thereon.
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