The ISA Charity
Trustees’ report, Independent Examiners report and financial statements
For the year ended 31 January 2021
Charity number 326882
The ISA Charity
Reference and administrative details of the charity, its trustees and advisors for the year ended 31 January 2021
| Registered charity number: | 326882 |
|---|---|
| Principal address: | E4 Albany |
| Piccadilly | |
| London | |
| W1J 0AR | |
| Trustees: | R Paice Esq |
| Mrs M Paice | |
| Mrs AP Kent | |
| Ms CL Grinling | |
| Bankers: | Handelsbanken |
| 35 Hay’s Mews | |
| London | |
| W1J 5PY | |
| Accountant: | Crowe U.K. LLP |
| 4thFloor St James House | |
| St James’ Square | |
| Cheltenham | |
| Gloucestershire | |
| GL50 3PR | |
| Solicitors: | Lawrence Stephens Solicitors |
| 50 Farrington Road | |
| London | |
| EC1M 3HE |
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The ISA Charity
Trustees’ report for the year ended 31 January 2021
The trustees submit their annual report, together with the accounts for the year ended 31 January 2021.
Governance
The charity was formed under the terms of a settlement deed dated 24 April 1985 between ISA (Holdings) Limited and the first named trustees.
Trustees
There were no changes to the board of trustees during the year. Those who acted for the charity are as stated on page one. The power for appointing new or additional trustees of the settlement is vested in ISA (Holdings) Limited.
Objects
To apply the capital and income of the trust fund to the benefit of such charitable purposes or charitable institutions or charitable foundations within the United Kingdom in such a manner and in such proportions as the trustees may from time to time in their absolute discretion determine, provided that the trustees may during such a period as is allowable by law accumulate any surplus income by investing the same and the resulting income thereof in any investment authorised by the deed and will hold the same as an increase to and as part of the trust fund.
Activities and achievements for the year
In planning our activities for the year, we kept in mind the Charity Commission’s guidance on public benefit at our trustee meetings. During the year, the charity continued to sponsor a number of projects including a Curatorial Fellowship for young curators and an initiative to support ex-offenders, addicts and those with mental health problems to secure sustainable employment.
The travel award runs in a number of universities across the U.K. and every year students are awarded funding to embark on an international experience that will broaden their horizons and further their field of interest.
Students and disadvantaged members of society have benefitted from the support provided through grants and campaigns funded by the charity. The activities have enabled the beneficiaries to access higher education, engage in international development projects, further their professional development and make the first steps towards sustainable employment. The trustees intend for the charity to continue to support the same beneficiaries in the future.
Financial review
Total income for the year was £46,429 (2020: £21,034) primarily by investment returns. Total expenditure was £89,949 (2020: £83,855) of which £48,514 (2020: £17,854) was grants and donations.
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The ISA Charity
Trustees report for the year ended 31 January 2021 (continued)
Reserves policy
It is the intention of the trustees to build up the trust fund with a view to establishing a significant charitable foundation when sufficient funds are available. The funds at the year-end were £1,505,453 (2020: £1,550,088).
Risk management
The trustees actively review the major risks faced by the charity on a regular basis, and having examined operational and business risks confronting it can confirm that they have established systems to mitigate the significant risks.
Investment policy
The Trustees’ Act 2000 now confers the charity’s investment powers. The charity aims to keep the majority of its funds in interest bearing bank accounts, and not to invest in any high-risk funds.
Going concern
The Trustees and management have been monitoring the potential impact of COVID-19 on its activities. The cash position is also being monitored on a more regular basis. As a result, at the date of signing, these financial statements indicate that the Charity will be able to continue to operate as a going concern.
Plans for future periods
The Trustees and management intend to continue with the current activities, providing grants to support travel and international development, supporting professional development in the visual arts and campaigning for the employment of ex-offenders.
Trustee’s Responsibilities Statement
The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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The ISA Charity
Trustees report for the year ended 31 January 2021 (continued)
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
It is the charity’s intention to continue to make grants in the areas of the arts, education, travel and similar charitable causes.
This report was approved by the Trustees, on 30 November 2021 and signed on their behalf by:
Mrs AP Kent Trustee
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The ISA Charity
Independent examiner's report to the trustees of The ISA Charity
I report to the trustees on my examination of the accounts of The ISA Charity for the year ended 31 January 2021 which are set out on pages 6 to 11.
This report is made solely to the charity’s trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity, the charity’s members as a body and the charity’s trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement- matter of concern identified
I have completed my examination. I confirm that no material 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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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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 confirm there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
Guy Biggin FCCA Crowe U.K. LLP 4[th] Floor St James House St James’ Square Cheltenham GL50 3PR Date: 30 November 2021
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The ISA Charity
| Statement of financial activities | |||
|---|---|---|---|
| for the year ended 31 January 2021 | Total funds | Total funds | |
| 2021 | 2020 | ||
| Note | £ | £ | |
| Income from: | |||
| Donations | 1,917 | 823 | |
| Investments | 3 | 44,512 | 20,211 |
| ───── | ───── | ||
| Total income | 46,429 | 21,034 | |
| ───── | ───── | ||
| Expenditure on: | |||
| Charitable activities: | |||
| Grants and donations | 4 | 48,514 | 17,854 |
| Administration costs | 5 | 41,435 | 66,001 |
| ───── | ───── | ||
| Total Expenditure | 89,949 | 83,855 | |
| ───── | ───── | ||
| Net (loss)/gains on investment assets | 2 | (1,115) | (897) |
| ───── | ───── | ||
| Net expenditure & net movement in | (44,635) | (63,718) | |
| funds | |||
| Reconciliation of funds: | |||
| Total funds brought | 1,550,088 | 1,613,806 | |
| forward | |||
| ───── | ───── | ||
| Total funds carried | |||
| forward | 1,505,453 | 1,550,088 | |
| ══════ | ══════ |
All of the charity’s funds are unrestricted funds.
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The ISA Charity
Balance sheet
as at 31 January 2021
| Balance sheet s at 31 January 2021 |
|||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| Note | £ | £ |
£ | £ |
|
| Investments | 2 | 1,100,533 | 808,561 | ||
| Current assets | |||||
| Debtors | - | 311 | |||
| Cash at bank | 408,804 | 742,772 | |||
| ────── | ────── | ||||
| 408,804 | 743,083 | ||||
| Creditors: amounts falling due | |||||
| within one year | 8 | 3,883 | 1,556 | ||
| ──── | ──── | ||||
| Net current assets | 404,921 | 741,527 | |||
| ────── | ────── | ||||
| Net assets | 1,505,454 | 1,550,088 | |||
| ═══════ | ═══════ | ||||
| Charity funds: | |||||
| ────── | ────── | ||||
| Unrestricted funds | 1,505,454 | 1,550,088 | |||
| ═══════ | ═══════ | ||||
| ────── | ────── | ||||
| Total funds | 1,505,454 | 1,550,088 | |||
| ═══════ | ═══════ |
The financial statements were approved by the trustees on 30 November 2021 and signed on their behalf by:
Mrs AP Kent Trustee
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The ISA Charity
Notes to the financial statements For the year ended 31 January 2021
1 Accounting policies
Basis of preparation
The ISA Charity is an unincorporated charity (charity number 326882) registered in England and Wales. The registered address is E4 Albany, Piccadilly, London, W1J 0AR. The financial statements have been prepared to give a ‘true and fair’ view and 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 Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommend Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: 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) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and The Charities Act 2011. The ISA Charity constitutes a public benefit entity as defined by FRS 102.
Going Concern
At the time of approval, the COVID19 virus continues to develop and has been designated a global pandemic by the World Health Organisation. Both short term and long term effects of the rapidly escalating situation are unknown but, as for many businesses at this time, the Trustees consider that there is potential for significant and enduring impact on the Charity's activities.
The charity has cash resources and no requirement for external funding. The Trustees have a reasonable expectation that the charity has adequate resources and that there are no material uncertainties about the charity’s ability to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the financial statements.
Income
Donations are recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Income from investments is recognised only if received or declared and receivable. Investment income is dividends and interest from investments.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include governance costs, investment management costs and other professional fees incurred as costs of running the charity. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure where the conditions attaching are fulfilled.
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The ISA Charity
Notes to the financial statements (continued) For the year ended 31 January 2021
Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.
Interest Receivable
Interest on funds is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid by the bank or payable by the bank.
Cash at Bank and in hand
Cash at bank and in hand includes cash held in current accounts.
Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount the charity anticipates it will pay to settle the debt.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
2 Fixed Asset Investments
Fixed Asset Investments |
||
|---|---|---|
| Listed | ||
| Shares | ||
| 2021 | 2020 | |
| £ | £ | |
| Market value at 1 February 2020 | 43,243 | 44.140 |
| Net gain / (loss) on revaluation | (1,115) | (897) |
| ────── | ────── | |
| Market value at 31 January 2021 | **42,128 ** | 43,243 |
| ────── | ────── | |
| Loans | ||
| 2020 | 2020 | |
| £ | £ | |
| 1,058,405 | 765,318 | |
| ────── | ────── | |
| Total Fixed Asset Investments | 1,100,533 | 808,561 |
| ══════ | ══════ |
Interest is charged at 4.5% above the Bank of England’s base rate and accrues during the period of the loan. The capital balance plus accumulated interest is repayable by 31 December 2025.
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The ISA Charity
Notes to the financial statements (continued)
For the year ended 31 January 2021
| 3 | Investment income | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Dividends received | 1,613 | 1,813 | |
| Bank interest received | 124 | 3,080 | |
| Loan interest received | 42,775 | 15,318 | |
| ───── | ───── | ||
| 44,512 | 20,211 | ||
| ══════ | ═════ | ||
| 4 | Analysis of grants and donations | ||
| 2021 | 2020 | ||
| Grants to individuals | 1,913 | 4,039 | |
| Grants to institutions | |||
| The Exceptionals | 5,943 | 7,034 | |
| Charleston Trust | 9,000 | - | |
| Holbourne Museum | 9,000 | - | |
| Craft Council | 7,500 | 2,500 | |
| Wellchild | - | 2,000 | |
| Other grants to institutions | 15,158 | 2,281 | |
| ───── | ───── |
||
| 48,514 | 17,854 | ||
| ══════ | ══════ | ||
| 5. | Analysis of Administration Costs | ||
| 2021 | 2020 | ||
| Governance & Professional Costs | 7,636 | 913 |
|
| Accountancy Fees | 780 | 780 | |
| Bank Fees | 84 | 59 | |
| Employment Costs (Note 9) | 32,935 | 64,249 | |
| ───── | ───── | ||
| 41,435 | 66,001 | ||
| ══════ | ══════ |
Amounts payable to the Independent Examiner in respect of accountancy services totalled £780 (2020: £780) .
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The ISA Charity
Notes to the financial statements (continued) For the year ended 31 January 2021
6. Trustees’ expenses
During the year Mrs AP Kent, a trustee, was paid a salary of £30,000 (2020: £57,500) for services provided to the charity. There were no other costs incurred by the trustees on behalf of the charity.
7. Related party transactions
During the year, the charity received donations totalling £1,917 (2020: £823) from ISA (Holdings) Limited, a company the trustees Mr R Paice, Mrs M Paice and Mrs AP Kent have shareholdings in.
See note 6 for related party transactions with Mrs AP Kent, a trustee.
During the year, the charity loaned ISA (Holdings) Limited the sum of £1,058,405 (2020: £765,318). The loan accrues interest at 4.5% above the Bank of England’s base rate and is repayable by 31 December 2025.
8. Creditors: Amounts falling due within one year
| 2021 | 2020 | |
|---|---|---|
| Accruals | 780 | 780 |
| Other creditors | 3,103 | 776 |
| ───── | ───── | |
| 3,883 | 1,556 | |
| ══════ | ══════ |
9. Analysis of employment costs
| 2021 | 2020 |
|---|---|
| Wages and salaries30,000 | 57,500 |
| Social security costs2,935 | 6,749 |
| ───── | ───── |
| 32,935 | 64,249 |
| ══════ | ══════ |
The average number of employees during the year was 1 (2020: 1). There were no higher paid employees and all salary costs are for Key Management Personnel
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