Charity Registration No: 326959 (England and Wales)
THE HEATHSIDE CHARITABLE TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
THE HEATHSIDE CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| Registered charity number | 326959 |
|---|---|
| Governing document | Trust deed dated 22 August 1985 |
| (and supplemental Trust deed | |
| dated 25 September 2017) | |
| Trustees | Sir Harry Solomon |
| Lady Judith Solomon | |
| L S Jacobs | |
| G R Jayson | |
| D M Solomon | |
| J K Solomon | |
| S J Jacobs | |
| J B Jacobs | |
| Auditor | RSM UK Audit LLP |
| Chartered Accountants | |
| 25 Farringdon Street | |
| London | |
| EC4A 4AB | |
| Bankers | Lloyds TSB Private Banking |
| PO BOX 46152 | |
| 3rdFloor | |
| 39 Threadneedle Street | |
| London | |
| EC2R 8AU | |
| Investment Managers | UBS Wealth Management |
| 5 Broadgate | |
| London | |
| EC2M 2QS | |
| Canaccord | |
| 41 Lothbury | |
| London | |
| EC2R 7AE | |
| Contact address | Hillsdown House |
| 32 Hampstead High Street | |
| London | |
| NW3 1QD |
THE HEATHSIDE CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees’ Report | 1 - 3 |
| Trustees’ Responsibilities | 4 |
| Independent Auditor’s Report | 5 - 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Cash Flow Statement | 10 |
| Notes to the Financial Statements | 11 – 16 |
THE HEATHSIDE CHARITABLE TRUST
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in notes 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 published on 01 January 2019.
Aims and objectives of the charity
The objects of the charity are making available funds for the benefit of such charitable institutions, or for such charitable purposes, as the trustees shall decide. The trustees identify organisations and projects it wishes to support and this generally arises from direct contacts rather than speculative applications.
The trustees have considered the principal risks to which the charity is exposed, and are satisfied that systems are in place to mitigate those risks.
Constitution and governance
The charity was established by a charitable trust deed on 22 August 1985 which was updated by a supplemental deed on 25 September 2017. The charity is registered with the Charity Commission under registration number 326959 and is an independent charity. The address of the principal office is 32 Hampstead High Street, London NW3 1QD. The Trustees are responsible for the overall management and control of the charity.
Trustees
The Trustees who served during the year are:
Sir Harry Solomon Lady Judith Solomon L S Jacobs G R Jayson D M Solomon J K Solomon S J Jacobs J B Jacobs
The number of Trustees shall never be less than two and an additional Trustee or additional Trustees may be appointed at any time but so that the total number of Trustees shall at no time exceed ten in accordance with a supplemental deed dated 25 September 2017. The Trustees have the power of appointing new or additional Trustees.
The only trustees are family and trusted advisers. All of the trustees have been heavily involved in the charity world for many years and are experienced in the requirements of charities.
The Charity owned the Investment properties which were held by the Trustees on its behalf.
Review of activities
The charity received donations of £258,075 (2019: 203,500) during the year. These included gifts of £70,455 (2019: £150,000) from Sir Harry Solomon, £129,268 (2019: £50,000) from Lady Judith Solomon and £18,500 (2019: £Nil) from Daniel Solomon. The charity has made donations to charitable causes in accordance with its objects totalling £382,476 (2019: £422,596) and these are referred to in note 5 to the financial statements. 62 grants were made to charitable organisations covering Health, Education, Cultural and other general causes. The Trustees are of the opinion that the financial position of the charity at the balance sheet date is sufficient to meet its on-going activities on a fund by fund basis. The net assets at the year end date amounted to £5,001,490 (2019: £5,009,362).
Investment powers
The Trustees have wide investment powers and investments are made in properties, shares and unit trusts.
1
THE HEATHSIDE CHARITABLE TRUST
TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Investment policy
The Trustees’ policy is to adopt a low risk investment strategy by spreading the Trust’s assets over the various types of investment. Currently the assets are invested in cash, property, equities and venture capital funds. The investment policy is designed to maximise income and capital gain within a low risk environment and the trustees consider a broad range of investments mentioned above to include bonds, ethical investments and sustainable funds. The trustees monitor the performance of investments against their objectives and are satisfied that such objectives are being met.
The Trustees meet periodically to review investment policy during the year. They consider income requirements along with the investment advisor’s view of market prospects. The current objective is an annual total return of between 5% to 8%. The Trustees consider that the investment performance of 5.7%, which was within this range in the year 31 December 2020, from the income and gains from funds invested was satisfactory given market conditions throughout the year.
Reserves policy
Whilst the Trustees wish to continue to make grants as they have done in the past, it is also their wish to maximise the Trust’s reserves in order to give a base from which the Trust can run charitable projects of its own. The Trustees review the level of reserves on an annual basis and consider the current level of reserves of £5,001,490 (2019 - £5,009,362) to be appropriate for the Trust to maintain. The Trustees aim to have reserves in due course producing sufficient income and gains to fund the proposed annual grant expenditure, without the need to obtain substantial support from donations. To achieve this withoutout restricting the Trust’s ability to make grants at the current rate, the Trustees have set the sum of £8m - £10m as their reserves target and aim to achieve this through their investment strategy and donations. There are no restricted reserves (2019 - £Nil).
Recruitment of trustees and training
The composition of the Charity’s board of trustees is reviewed regularly with a view to achieving a spread of expertise and age designed to facilitate the achievement of the Charity’s objects. The Trustees keep up to date on their responsibilities by various means, such as reviewing the Charity Commission web site, reading relevant periodicals and professional advice.
One of the Trustees would be made responsible for the induction of any new Trustee which involves awareness of a Trustee’s responsibilities, the governing document, administrative procedures, the history and philosophical approach of the Trust. A new Trustee would receive copies of the previous year’s annual report and accounts and appropriate publications from the Charity Commission.
Grant making policy
The trustees will consider making grants to organisations (not individuals) that fall within its charitable objectives and invite relevant applications, particularly from organisations introduced by reliable contacts of the trustees.
The Trustees have complete discretion to pay any grants which fall within the charity’s objects. Grants are considered on the basis of applications received and the Trustees meet four times a year to discuss and approve existing and new grants. They also communicate with each other at other times for this purpose should the need arise. Where grants, including overseas grants, are made for specified purposes, they are monitored by the Trustees to ensure that those purposes and any conditions attached to the grants are adhered to.
Key management personnel remuneration
The trustees consider the board of trustees as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year (2019 - £Nil).
Achievements and performance
The trustees made numerous donations to charitable causes in accordance with its objects during the course of the year. Further details are shown in note 5 to the accounts highlighting the number of grants made in the year being 63 (2019: 78). The trustees are satisfied that the organisations supported provide a good and valuable service to their beneficiaries.
2
THE HEATHSIDE CHARITABLE TRUST
TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Achievements and performance (Cont)
These included the furtherance of education, the care of the young, sick and elderly and the provision of community protection and other services.
The organisations supported are monitored by the Trustees by personal contact with officials of those organisations, review of the work actually carried out by them, and their published material and reputation.
Plans for future periods
The aim of the trustees for the next year is to continue making donations to various charities even though the donations may significantly exceed the income generated on the Trust’s investments, in which case they will be funded from the growth in the investment portfolio, reserves or future donations.
Going concern
The Trustees do not believe there to be a material uncertainty over going concern due to the level of unrestricted reserves and the fact that the vast majority of expenditure is grants paid on a discretionary basis.
Risk factors
The Board of Trustees is responsible for the management of the risks faced by the charity.
All major risks to which the charity is exposed have been identified, assessed and controls established as appropriate. Consequently the Trustees are satisfied that the major risks have been mitigated.
The Trustees consider that the main risk that the Trust faces is the recoverability of the investments held and whether they will continue to generate income in order to further the Trust’s objectives via the grant making policy. To manage the risk the Trustees continually review the investment strategy of the Trust to determine the spread of the investments, achieved performance and anticipated performance for the forthcoming year.
The charity has not been affected by Covid-19. Whilst the timing of the recovery from the pandemic is uncertain, the trustees do not consider there to be a material risk to the charity.
Public Benefit
The charity has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and in planning future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set.
The Charity does not engage in fund raising activities to meet its objectives or use any third party or commercial fundraisers and therefore has received no complaints.
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THE HEATHSIDE CHARITABLE TRUST TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020 The chglity tru8teets ar& ro8pon$lbl¢ for proparfng g trusl888' 8nnu81 report and financial 8tst8ments in ac0)rd89 WEth applica)la law and Unked kfjnglom lnts'r@ st8ndards, (United Inj0M Generalty ApIed Aco)unting PractiGel. The law appl[c8b to charities in England and Wale8 rgq¥Sr&s the trustees to prep&r& financi01 statem&8 for egch finarKt31 ygar whkh givg a tru& at)d fair view of the state of affairs of the charity and of the incomin9 resour5 and awlcation of r•sOUr ofth¢ th¥rtty foT that rfod. In preparlng the finanaal 8tatemen18, th8 trusle8s arè reQre to: lect Suitab accounling poUd8s and then appty th•m conslsl8nty.' ob$¢Ne the melht)ds and prinp in tha applicable tharitlas SORP: makèjudgemènts e¥tirnate8 that are reasonabb and prudent," statsvthethgr applkable aount1 5tandard8 and statsrnents of recommonded practic6 have been f(4kNmd, 8ublect to any deparbJr88 disclosed and explained In the financlal #tatem•ntb.' ond.. prepare the finanry818ts1errnts on the gThng concem basis unless tt is inapprowiate to prnsum& that th• charity will contlnue in opèration. The trust8tt5 ar• responsible for keeping accounting records %thlch dlsclose wlth reasonae ac(#Jracy at any tlme the financial Pos0n of th8 charity and which enable them to ensure that the financial statements ¢omply wlth the Gh8rf11 Act 2011, the Charity (Accounts and Reportsl Regulations and tho proYi6ions oftha trust d•od. The trustees ar8 r&swn$ibl• frJr 98leguarding the 8Bsets ofthe chBrity and hence fortaking rea80nable Btep8 for the prevention and det8dion of fraud and othef irregularities. Dl•¢loourn of Inforrnation to auditorn The trustees confimi th8t so far 8S th•y Brè 8W8r•, thèr8 no r8lev8nt aud¢t infomiation of which the audltOTS are unaware. They havè taken all the Stsps that they ought to have taken as Trust886 in ord&r to mak& th8msefve8 aware of any rel8vant audit infomith.on and to 88tsblish that tho d)arity'$ audtiors arg aware of that inftsm)ation. Rè-apFboinlm•nt of audltorn A resolullon to reopFolnt RSM UK Audll LLP. Chartered ACunt8nts. 88 8uditors I11 L put to a meotitra of th& Trustee8. By ordor th *oard Sir Harry Solomon TruBtee
THE HEATHSIDE CHARITABLE TRUST
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HEATHSIDE CHARITABLE TRUST
Opinion
We have audited the financial statements of The Heathside Charitable Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
• have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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THE HEATHSIDE CHARITABLE TRUST
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HEATHSIDE CHARITABLE TRUST
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees’ responsibilities set out on page 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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THE HEATHSIDE CHARITABLE TRUST
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HEATHSIDE CHARITABLE TRUST
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
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obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the charity operates in and how the charity is complying with the legal and regulatory framework;
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inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
-
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, the charity’s governing document, and tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to any new or unusual transactions which may not be in accordance with the governing documents, inspecting any correspondence with local tax authorities.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the use of overseas grants paid (The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, the Bribery Act 2010). We performed audit procedures to inquire of management and those charged with governance whether the charity is in compliance with these law and regulations and inspected correspondence with grant recipients to ensure controls over monitoring of grants are operating effectively.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
RSM UK Audit LLP Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB [Date] 27 October 2021
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
7
THE HEATHSIDE CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted | funds | ||
|---|---|---|---|
| Total | Total | ||
| 2020 | 2019 | ||
| Note | £ | £ | |
| Incoming from: | |||
| Donations | 258,075 | 253,500 | |
| Investments | 2 | 59,245 | 64,434 |
| _ | _ | ||
| Total | 317,320 | 317,934 | |
| _ | _ | ||
| Expenditure on: | |||
| Raising funds and property expenses | 3 | 17,756 | 12,376 |
| Charitable activities | 4 | 415,956 | 435,202 |
| ______ | ______ | ||
| Total | 433,712 | 447,578 | |
| ______ | ______ | ||
| Net expenditure before | |||
| gain on investments | (116,392) | (129,644) | |
| Gain on investments | 108,520 | 391,831 | |
| _ | __ | ||
| Net movements in funds | (7,872) | 262,187 | |
| Reconciliation of funds: | |||
| Total funds brought forward | 5,009,362 | 4,747,175 | |
| __ | __ | ||
| Total funds carried forward | 5,001,490 | 5,009,362 | |
| __ | __ |
All recognised gains and losses are included in the Statement of Financial Activities.
8
THE HEATHSIDE CHARITABLE TRUST BALANCE SHEET AS Af31 DECEMBER 2020 2020 2019 Flxtd a880ts Investments 4,253,197 4,411,224 CuTrent a8set• Debtor5 Cash at bank and in hand 374.140 391,405 376.111 268,379 Total current a88ets 765,545 644,490 Currnnt liabilitl•s Creditors.. amounts falling due wrthin one year 117.2521 {46.352) Net current a88•ts 748.293 598,138 N•t assets 5,001,490 5,009,362 FUNDS Unre8tricl8d fiJnd$ 10 5,001,490 5,009,362 These financial Statements were approved by the Board of Trustees on .. for Issue Ind slgned on its behaff by- Slr Ha Trustee Soltsmon son
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Cash flows from operating activities Net cash used by operations 11 Cash flows from investing activities: Interest receivable Dividends and rents from investments Acquisition of investments Disposal of investments Net cash from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2020 £ (202,765) 31,979 27,265 (682,225) 948,772 325,791 123,026 268,379 391,405 |
2019 £ (270,561) 35,975 28,459 (533,132) 936,603 467,905 197,344 71,035 268,379 |
|---|---|---|
10
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Accounting convention
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: 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 01 January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounts 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 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 01 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
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 whole £, except where otherwise indicated.
Public benefit entity
The charity constitutes a public benefit entity as defined by FRS 102. The charity (registered no. 326959) is a trust that is domiciled in England and Wales. The principal address of the charity is Hillsdown House, 32 Hampstead High Street, London, NW3 1QD.
Going concern
The trustees do not believe there is a material uncertainty over going concern due to the level of unrestricted reserves and the fact that the vast majority of expenditure is grants paid on a discretionary basis. Therefore the trustees are comfortable that the charity’s reserves will ensure it is able to endure any residual impact of the Covid-19 pandemic over a period of 12 months from the approval of these financial statements.
Accordingly, the Trustees do not consider there to be material uncertainties and continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities.
Income
Bank interest, rental income and dividends are accounted for on a receivable basis. All income is included in the accounts on a receivable basis when the SORP income recognition criteria of entitlement, probability and measurement have been met.
Donations made by way of Gift Aid are reflected in the year in which they are receivable.
Expenditure
Grants Payable
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to the grant is outside of the control of the Trust.
11
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
1 Accounting policies (cont)
Support and governance costs
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to audit and legal fees and are included in expenditure on charitable activities in the Statement of Financial Activities.
All costs are inclusive of irrecoverable VAT and are accounted for on an accruals basis.
Funds
Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.
Investments
Quoted investments are stated at market value at the balance sheet date.
Unquoted investments are held at historical cost unless there is evidence which the trustees deem gives a more reliable measurement of fair value.
Investment properties are stated at market value at the balance sheet date. The valuation of the properties are derived from online valuations of comparable properties by estate agents, current market rents and yields, adjusted if necessary for condition of the properties.
The investments are assessed for impairment at each reporting date and any impairment losses, or reversals of impairment losses are recognised immediately in the Statement of Financial Activities.
Profits and losses on disposals and unrealised gains and losses on revaluations of investments are shown in the Statement of Financial Activities as a single item under the heading “Gains on Investments”.
Donated Goods and Services
The Trust receives administrative support and accounting services through a company associated with the Trustees. The value of this support is considered to not be material and accordingly is not recognised in these financial statements.
Taxation
The Heathside Charitable Trust is a registered charity and as such its income and gains falling within sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent they are applied to its charitable activities.
Financial instruments
The Trust has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues”, of FRS102 in full, to all its financial instruments. Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets or financial liabilities. The Trust only has basic financial instruments.
Financial assets
Basic financial assets, which include accrued income, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
Financial liabilities
Basic financial liabilities, which include accruals, are initially measured at transaction price and are subsequently carried at amortised cost.
Foreign currency assets and transactions
Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. Bank balances denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All foreign exchange differences are taken to the Statement of Financial Activities.
12
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
1 Accounting policies (cont)
Critical judgements and accounting estimates and assumptions
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Apart from estimating the valuation of the investment properties, the Trustees do not consider there to be any significant accounting estimates or assumptions and judgements when preparing the financial statements.
2 Income from investments
| Dividends receivable (UK) Interest received Rental income 3 Expenditure on raising funds and property expenses Investment management costs Property expenses 4 Expenditure on charitable activities Grants payable – note 5 Bank charges Foreign exchange losses Audit fees current year Professional fees |
2020 £ 6,126 31,979 21,140 _ 59,245 _ 2020 £ 9,475 8,281 _ 17,756 _ 2020 £ 382,476 32 16,636 16,812 - __ 415,956 |
_ |
2019 £ 6,853 35,975 21,606 _ 64,434 _ 2019 £ 6,149 6,227 _ 12,376 _ 2019 £ 422,596 312 58 12,018 218 _ 435,202 |
|---|---|---|---|
The trustees are the key management of the charity. The charity employed no staff during the year (2019: none).
5 Grants payable
During the year the charity made 63 grants totalling £382,476 (2019: 78 grants totalling £422,596) to a variety of charities in accordance with the grant making policy. All grants were made to institutions.
A full list of grants paid is available on request in writing from the charity’s principal address which is shown on the page detailing legal and administrative information.
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NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
5 Grants payable (cont)
An analysis of the grants paid by the charity is shown below (%):
| Healthcare Education Welfare Other |
35% 37% 2% 26% 100% |
21% 40% 21% 18% 100% |
|---|---|---|
6 Trustees’ remuneration and connected party transactions
Trustees’ remuneration
No remuneration or reimbursed expenses were paid to the trustees (2019: £Nil)
Donations :
The charity received donations from Sir Harry Solomon of £70,455 (2019 - £150,000), Lady Judith Solomon of £129,268 (2019 - £50,000) and Daniel Solomon of £18,500 (2019 - £Nil) respectively. These were exclusive of Gift Aid recovered.
Grants :
The charity made grants totalling £50,000 (2019 - £50,000) to The Portland Trust, of which Sir Harry Solomon, is also a trustee.
There were also four grants totalling £25,500 (2019 - £45,449) to charities of which other Trustees are a trustee.
Other
During the year the Trust made an interest free loan of £803 (2019 - £3,976) to Qtec Analytics Limited, a company connected to Sir Harry Solomon. At the year end date, an amount of £41,998 (2019 - £41,195) was owed by the company to the Trust and is fully recoverable.
There were no other outstanding balances (2019 - £nil) with connected parties at the year end.
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NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
7 Fixed asset investment
| Investment Property Quoted Unquoted £ £ £ Market value at 1 January 2020 477,363 1,991,419 1,942,442 Additions - 682,225 - Disposals - (631,235) (317,537) Revaluation in year (77,363) 4,150 181,733 Market value at 31 December 2020 400,000 2,046,559 1,806,638 Cost at 31 December 2020 477,363 1,892,528 1,272,641 2020 £ Material quoted investments greater than 5% by value: UBS - Resolution Fund UK 576,780 UBS – Sustainable Funds Portfolio Artemis Alpha 1,079,532 150,311 The Trustees have adoted a policy of including Sustainable Funds in the managed portfolio. 8 Analysis of current assets 2020 £ Other debtors 374,140 Cash at bank and in hand 391,405 765,545 9 Analysis of current liabilities Creditors due within one year 2020 £ Accruals 17,252 ______ 17,252 |
Total £ 4,411,224 682,225 (948,772) 108,520 4,253,197 4,024,897 2019 £ 1,155,626 495,428 131,999 2019 £ 376,111 268,379 644,490 2019 £ 46,352 ______ 46,352 |
Total £ 4,411,224 682,225 (948,772) 108,520 4,253,197 4,024,897 2019 £ 1,155,626 495,428 131,999 2019 £ 376,111 268,379 644,490 2019 £ 46,352 ______ 46,352 |
|---|---|---|
| 644,490 |
||
| 2019 £ 46,352 ______ 46,352 |
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NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020
10 Movement in funds during the year
| Unrestricted funds Movement in funds during the prior year Unrestricted funds |
At 1 January 2020 £ 5,009,362 At 1 January 2019 £ 4,747,175 |
Income Expenditure Gains and losses At 31 December 2020 £ £ £ £ 317,320 (433,712) 108,520 5,001,490 Income Expenditure Gains and losses At 31 December 2019 £ £ £ £ 317,934 (447,578) 391,831 5,009,362 |
|
|---|---|---|---|
11 Reconciliation of net (expenditure)/ income to net cash flow from operating activities
| Net (expenditure)/income for the year Adjustments for: Dividends, interest and rents from investments Gains on investments Operating cash flows before movements in working capital Decrease/(increase) in other debtors Decrease in accruals Cash used in operations |
2020 £ (7,872) (59,245) (108,520) (175,637) 1,971 (29,100) (202,765) |
2019 £ 262,187 (64,434) (391,831) (194,078) (57,083) (19,400) |
|---|---|---|
| (270,561) |
12 Financial Instruments
The carrying amount of the Trust’s financial instruments at 31 December were:
| Financial assets: held at fair value |
2020 £ 3,853,197 |
2019 £ 3,933,861 |
|---|---|---|
16