2021-12-31-accounts - The Norman Trust

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

THE NORMAN TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2021

Charity Registration Number: 327288

THE NORMAN TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2021

CONTENTS	Page
Legal and administration	1
Trustees’ report Independent Examiners’ report Statement of financial activities Balance sheet Notes to the financial statements	2 - 3 4 5 6 7 - 14

THE NORMAN TRUST

LEGAL AND ADMINISTRATION

Trustees:
	Mr C J Norman
	Mr C W Norman (Resigned 1/3/2022)
	Ms L Norman
	Mrs A Sharrocks
Registered office:	S D Knee
	Chartered Accountants
	10 Bath Road
	Swindon
	SN1 4BA
Charity registration number: Investment Advisors: Bankers: Solicitors: Independent Examiner: Governing document:	327288 Waverton Investment Management Limited 21 St James’s Square London SW1Y 4HB National Westminster Bank plc 186 Brompton Road London SW3 1XJ Hogan Lovells International LLP Atlantic House Holborn Viaduct London EC1A 2FG Haysmacintyre LLP Chartered Accountants 10 Queen Street Place London EC4R 1AG Trust Deed dated 27th October 1986

THE NORMAN TRUST

TRUSTEES’ REPORT

YEAR ENDED 31ST DECEMBER 2021

The trustees present the annual report and audited financial statements for the year ended 31st December 2021.

Objectives and activities

In setting the objectives and planning for activities the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. The main aims of the Trust are to support the Roundhouse Trust in its objectives of running the Roundhouse in London as a performance venue and a Creative Centre for young people, and to provide other help to disadvantaged young people through the encouragement of the arts. The Trust also makes donations to other charitable causes which are considered suitable by the Trustees.

Achievements and performance

The Norman Trust has maintained its intention to build up an endowment of £5M to support the Roundhouse Trust. The current value of the endowment is £5M and during 2015 the assignment of a parcel of land to the Roundhouse with an estimated value of in excess of £1.5m has now met the original intention in value terms. During the year the Norman Trust donated £71,391 (2020: £76,199) to the Roundhouse Trust for general purposes.

During the year the Norman Trust made payments totalling £0 (2020 £7,686) for the design and development of a vehicle created to benefit communities in Africa and the underdeveloped world who have no means of efficiently and cheaply transporting water, food, medicine and farming supplies. The vehicle was formally launched to the press and public at The Roundhouse in September 2016.

Financial review

At 31 December 2021 the charity had unrestricted reserves of £818,549 endowment funds of £5,066,622

Reserves policy

The reserves of the charity at the year-end were £5,885,171 of which £5,066,622 was held as endowment and restricted funds, leaving a balance of £818,549 in unrestricted funds.

The endowment fund was restructured during 2014 and in represented by:

Investments held by Waverton Investment Managers
Cash

The unrestricted fund will continue to be applied to support its ongoing charitable activities.

Investment policy and performance

During the year the investments generated income of £82,609 (2020: £87,850) in line with expectations.

Risk Review

The trustees have considered the risks affecting the charity and consider that as the key object of the charity is to raise money to support the Roundhouse Trust and to ensure that the GVT project is completed, the key risk is in terms of the return on its investments as the Charity is largely dependent on its investment income.

THE NORMAN TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 31ST DECEMBER 2021

Structure, governance and management

The Charity is governed by its trust deed dated 26th October 1986 as amended by special resolution dated 1st October 1991. The Board has the power to appoint new Trustees. Trustees are provided with relevant training when required.

Related parties

The Trustees are also Directors of the incorporated Norman Trust Ltd, which was incorporated on 10 May 2019 and is a registered charity number 1192419. The trustees have applied for a uniting direction with the charity commission for administrative purposes for the two entities to report as one. The trustees are currently awaiting the approval of the uniting order before proceeding. It is intended that the unrestricted funds, freehold property and other assets where appropriate are transferred to this incorporated body. The Norman Trust will continue to exist holding title to the permanent endowment of the trust.

Remuneration of key management personnel

The Norman Trust’s key management are its Trustees who are unremunerated.

Statement of trustees' responsibilities

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:

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles in the Charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that 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.

Signed on behalf of the trustees:

……………………………………………..

C. J. Norman

Approved by the trustees on: 6 October 2022

THE NORMAN TRUST

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF

YEAR ENDED 31[ST] DECEMBER 2021

I report to the Trustees on my examination of the accounts of The Norman Trust for the year ended 31 December 2021 which are set out on pages 1 to 14.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

I report in respect of my examination of the Trust’s accounts as carried out under section 44 (1) ( c) of the 2005 Act and section 145 of the 2011 Act. In carrying out my examination I have followed 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 giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the accounts do not accord with those records; or
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 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 accounts to be reached.

Jane Askew Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

6 October 2022 Date:

THE NORMAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST DECEMBER 2021

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Restricted| |Unrestricted|Restricted|Total|Total| |Endowment| |2021|2021|2021|2021|2020| |INCOME AND EXPENDITURE|Notes|£|£|£|£|£| |Income from:| |Interest and dividends receivable|11,218|-|71,391|82,609|87,866| |----------------|----------------|----------------|----------------|----------------| |Total income|11,218|-|71,391|82,609|87,866| |----------------|----------------|----------------|----------------|----------------| |Expenditure on:| |Charitable activities:| |Development expenditure|-|-|-|-|7,686| |Donations|-|-|71,391|71,391|76,199| |Management and administration|38,082|-|-|38,082|32,384| |----------------|----------------|----------------|----------------|----------------| |Total expenditure|5|38,082|-|71,391|109,473|116,269| |-----------------|-----------------|-----------------|-----------------|-----------------| |Net (expenditure) for the year before| |net gains on investments|(26,864)|-|-|(26,864)|(28,403)| |Gains on investments|85,892|-|533,628|619,520|349,050| |----------------|----------------|----------------|----------------|----------------| |Net income|59,028|-|533,628|592,656|320,647| |Unrealised loss of investment property|-|-|-|-|-| |----------------|----------------|----------------|----------------|----------------| |Net movement in funds|59,028|-|533,628|592,656|320,647| |Transfers between funds|11|-|-|-|-|-| |Balances brought forward at| |1st January|759,521|-|4,532,994|5,292,515|4,971,868| |--------------------|--------------------|--------------------|--------------------|--------------------| |Balances carried forward| |at 31st December|£818,549|£-|£5,066,622|£5,885,171|£5,292,515| |==========|==========|==========|==========|==========|

----- End of picture text -----

The notes on pages 7 to 14 form part of these accounts.

All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.
Comparative figures for 2020 are shown in note 15.

THE NORMAN TRUST

BALANCE SHEET

AT 31ST DECEMBER 2021

			2021
	Notes	£	£ £	£
FIXED ASSETS
Tangible Investment Asset	6		-	-
Investments	7		5,640,986	5,036,940
			-------------------	------------------
			5,640,986	5,036,940
CURRENT ASSETS Debtors (£340,676 due in more than one	8	351,612 351,981
year) Cash at bank and in hand			7,844 15,014
		--------------------- ---------------------
		359,456 366,995
CREDITORS: amounts falling due within one year	9	(115,271) (111,420)
NET CURRENT ASSETS		-------------------- -------------------- 244,185		255,575
			---------------------	---------------------
NET ASSETS			£5,885,171	£5,292,515
			==========	==========
REPRESENTED BY: Unrestricted funds: General funds			818,549	759,521
Endowment funds	10		5,066,622	4,532,994
			---------------------	---------------------
			£5,885,171	£5,292,515
			==========	==========

The notes on pages 7 to 14 form part of these accounts.

Approved by the trustees on 6 October 2022

Signed on their behalf by:

………………………………….

C.J. Norman

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition-effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity has taken advantage of the disclosure exemptions in FRS 102 section 1A including the exemption from preparing a Statement of Cash Flows.

The Norman Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Preparation of accounts on a going concern basis

The trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future.

Income

All income is credited to the statement of financial activities once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Expenditure

Direct charitable expenditure comprises direct expenses incurred on the defined charitable purposes of the charity and includes an allocation of the general management and overhead costs.

Administration costs include expenditure on general administration, and management and of compliance with constitutional and statutory requirements.

Fund accounting

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. Designated funds are monies set aside out of general funds and designated for specific purposes by the Trustees.

Tangible fixed assets

The fixed asset in the year ended 31[st] December 2014 consisted of a plot of land adjacent to the Roundhouse in Chalk Farm, London. Its resale value was not considered to be less than its carrying value of £2.7m. During the year ended 31[st] December 2014, this plot of land was subject to a revised lease to extend the lease period, as a result of which the accounts have written off this value to reflect the fact that the trust is now only owns a reversionary interest (see note 7).

All tangible fixed assets were fully depreciated at the year end.

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

Cash flow

The financial statements do not include a Statement of Cash Flows because the charity, as a small reporting entity with income under £500,000, is exempt from the requirement to prepare such a statement under FRS 102 section 1A and the SORP (FRS 102).

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.

Investments

Investments are stated at market value. Any realised and unrealised gains or losses are reflected in the Statement of Financial Activities in the year in which they occur.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2.	NET (EXPENDITURE)/INCOME 2021	2020
	FOR THE YEAR £	£
	Independent Examination £4,440	£3,700
	======	=======

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

3. EMPLOYEES AND STAFF COSTS

The Norman Trust did not employ any staff during the year.

During 2020 and 2021The Norman Trust’s key management were its Trustees who are unremunerated.

4. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES

No trustee received remuneration for their services during the year (2020: £Nil).

No trustees received reimbursement of expenses in the year (2020: £Nil).

5. TOTAL EXPENDITURE

Staff costs Other Depreciation	Total
2021 2021 2021	2021
£ £ £	£
Direct charitable expenditure: Donations - 71,391 -	71,391
Management and administration - 38,082 -	38,082
----------------- -------------- ------------	----------------
£- £109,473 £-	£109,473
======== ======== ======	========
Staff costs Other Depreciation	Total
2020 2020 2020	2020
£ £ £	£
Direct charitable expenditure: Development expenditure - 7,686 -	7,686
Donations - 76,199 -	76,199
Management and administration - 32,384 -	32,384
----------------- -------------- ------------	----------------
£- £116,269 £-	£116,269
======== ======== ======	========

	2021	2020
Management &	£	£
Administration consists of:
Accountancy	4,440	3,700
Governance costs: auditor’s Remuneration	2,400	2,000
Investment Charges	31,318	24,581
Professional Fees	-	375
Foreign exchange (gains) / losses	(76)	1,728
	-----------------	---------------
	£38,082	£32,384
	========	========

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

6. TANGIBLE FIXED ASSETS

The Norman Trust is the freehold owner of the Roundhouse and granted a 99 year lease of it to the Roundhouse Trust for a lease premium of £3,100,000 during 2004. In accordance with FRS5 the substance of the transaction was the sale of the building and the value of the building has been reduced to £nil. The remaining freehold property consists of a plot of land adjacent to the Roundhouse. During 2014 the Trust granted an extension to the lease over this plot to mirror that of the Roundhouse lease and assigned a final portion of land. The substance of the transaction is as for the Roundhouse itself and so the accounts now reflect its value at nil.

7.	INVESTMENTS	2021	2020
		£	£
	Listed investments Market value at 1st January 2021	4,358,752	4,241,420
	Additions	875,987	879,225
	Disposals	(730,394)	(1,239,664)
	Net unrealised investment gains	568,089	477,772
		-------------------	-------------------
	Market value at 31st December 2021	5,072,434	4,358,753
	Cash	568,552	678,187
		-------------------	-------------------
	Total investments held	£5,640,986	£5,036,940
		=========	=========
	Cost of investments at 31st December 2021	£4,413,233	£4,222,752
		=========	==========
8.	DEBTORS	2021	2020
		£	£
	The Global Vehicle Trust	340,677	340,676
	Other debtors	10,935	11,305
		----------------	----------------
		£351,612	£351,981
		========	========
9.	CREDITORS: amounts falling
	due within one year	2021	2020
		£	£
	Trade creditors	2,400	210
	Accruals and deferred income	16,461	21,191
	The Roundhouse Trust	86,410	80,019
	Sir Torquil Norman	10,000	10,000
		----------------	----------------
		£115,271	£111,420
		========	========

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

10. ENDOWMENT FUNDS

Balance at			Revaluation	Balance at
1st January	Income	Expenditure	&	31st December
2021	2021	2021	Transfers	2021
£	£	£	£	£
Roundhouse Endowment
Fund £4,532,994	71,391	(71,391)	533,628	£5,066,622
----------------------	------------------	-------------------	-------------------	-------------------
£4,532,994	£71,391	£ (71,391)	£ 533,628	£5,066,622
==========	========	=========	=========	===========
Balance at			Revaluation	Balance at
1st January	Income	Expenditure	&	31st December
2020	2020	2020	Transfers	2020
£	£	£	£	£
Roundhouse Endowment Fund £4,226,079	76,199	(76,199)	306,915	£4,532,994
----------------------	------------------	-------------------	-------------------	-------------------
£4,226,079	£76,199	£(76,199)	£306,915	£4,532,994
==========	========	=========	=========	===========

The endowment fund is made up principally of Investments held by Waverton, a loan made to the Roundhouse Trust and other balances held in cash.

Interest and dividends earned on the investment portfolio, together with interest charged on the loan will be paid back to the Roundhouse trust by way of grant each year.

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2021

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

	Unrestricted	Restricted	Restricted
	General		Endowment
ANALYSIS OF NET ASSETS	Funds	Funds	Funds	Total
BETWEEN FUNDS	2021	2021	2021	2021
	£	£	£	£
Fund balances at 31st December 2021
are represented by: Fixed assets	730,652		- 4,910,334	5,640,986
Current assets	203,168		- 156,288	359,456
Current liabilities	(115,271)		- -	(115,271)
	---------------------	--------------------- ---------------------		---------------------
Net assets	£818,549		£- £5,066,622	£5,885,171
	==========	========== ==========		==========
ANALYSIS OF NET ASSETS	Unrestricted General Funds	Restricted Funds	Restricted Endowment Funds	Total
BETWEEN FUNDS	2020	2020	2020	2020
	£	£	£	£
Fund balances at 31st December 2020 are represented by: Fixed assets	640,723		- 4,396,217	5,036,940
Current assets	230,218		- 136,777	366,995
Current liabilities	(111,420)		- -	(111,420)
	---------------------	--------------------- ---------------------		---------------------
Net assets	£759,521		£- £4,532,994	£5,292,515
	==========	========== ==========		==========

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2021

___________________

12. TAXATION

The Norman Trust is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

13. RELATED PARTY TRANSACTIONS

During the year the Norman Trust made a donation of £71,391 (2020: £76,199) to The Roundhouse Trust, a charity of which C J Norman is a trustee.

During 2004 the Norman Trust granted a 99 year lease of the Roundhouse and part of the adjoining land to the Roundhouse Trust for a consideration of £3.1 million.

During 2004 the Norman Trust also granted to the Roundhouse Trust a 25 year lease at a nominal rent of land adjacent to the Roundhouse. This was renegotiated and the lease now mirrors that of the Roundhouse lease above.

At the year end the Norman Trust owed the Roundhouse Trust £86,410 (2020: £80,019)

As at 31[st] December 2021 the Global Vehicle Trust a company of which C W Norman is a director owed the Norman Trust £340,677 (2020: £340,677). The debt is considered to be fully recoverable through future trading activities of the entity.

At the 31[st] December 2021 the Norman Trust owed Sir Torquil Norman £10,000. (2020: £10,000).

THE NORMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31ST DECEMBER 2021

14. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

----- Start of picture text -----
||||| |---|---|---|---| |Restricted| |Unrestricted|Total| |Endowment| |2020|2020|2020| |INCOME AND EXPENDITURE|£|£|£| |Income from:| |Interest and dividends receivable|11,667|76,199|87,866| |----------------|----------------|----------------| |Total income|11,667|76,199|87,866| |----------------|----------------|----------------| |Expenditure on:| |Charitable activities:| |Development expenditure|7,686|-|7,686| |Donations|-|76,199|76,199| |Management and administration| |32,384|-|32,384| |----------------|----------------|----------------| |Total expenditure|40,070|76,199|116,269| |-----------------|-----------------|-----------------| |Net expenditure for the year before net gains on investments|(28,403)|-|(28,403)| |Gains on investments|42,135|306,915|349,050| |----------------|----------------|----------------| |Net movement in funds|13,732|306,915|320,647| |Balances brought forward at| |1st January|745,789|4,226,079|4,971868| |--------------------|--------------------|--------------------| |Balances carried forward| |at 31st December|£759,521|£4,532,994|£5,292,515| |==========|==========|==========|

----- End of picture text -----