**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. - 1 - ## **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 - 2 - ## **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: - 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. ## **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 - 3 - ## **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. - 4 - ## **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** - 5 - ## **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. - 6 - ## **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. - 7 - ## **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** - 8 - ## **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. - 9 - ## **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** - 10 - ## **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| - 11 - ## **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| |---|---|---| - 12 - ## **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. - 13 -