2021-04-05-accounts - The Kelton Trust

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The Kelton Charitable Trust

Registered Charity No. 327363

Accounts

5 April 2021

The Kelton Charitable Trust

Reference and Administrative Information

Trustees

Richard Anthony Bettinson. Hayley Anne Bettinson.

Registered Charity Number

327363

Address

Somer Barns Camp Lane Shelsley Beauchamp Worcester WR6 6JQ

Accountants

G. C. Cooper Accountancy Ltd 5 Church Mews Barlby Selby North Yorkshire YO8 5LL

Bankers

National Westminster Bank Plc 1 St Philips Place Birmingham B3 2PT

Investment Managers

Adam & Company Investment Management Limited 6-8 George Street Edinburgh EH2 2PF

CCLA Investment Management Ltd COIF Charity Funds 85 Queen Victoria Street London EC4V 4ET

The Kelton Charitable Trust Trustees' Report for the year ended 5th April 2021

The Trustees present their annual report and Financial Statements of the Charity for the year ended 5th April 2021. The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Trust Deed, 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 (FRS102).

Structure, Governance and Management

Establishment

The Charity was established by a Trust Deed executed on the 31st December 1986 by Edith Mary Forsyth, a retired Physician who lived and worked in Birmingham for many years. The Charity's funds have since been added to by transfers from other Charitable Trusts.

The Charity is administered by the Trustees, who have the power to appoint their successors. Training is available for Trustees through membership of the Association of Charitable Foundations. The Charity has no Employees.

Risk Management

The Trustees confirm that systems are in place to examine and mitigate the Charity's exposure to its principal risks. The most significant risks identified by Trustees are potential falls in the value of the Charity's investments or in the income received from those investments. These risks, if they were to continue over the longer term, would impact on the Charity's ability to make grants. They are addressed by holding a diversified portfolio of investments.

Objectives and Activities

Objects of the Trust

The Charity is established for general charitable purposes. The Trust Deed provides that both the capital and income of the Charity shall be held and applied to such charities or for such charitable purposes and in such proportions as the Trustees shall determine.

When considering applications for grants, the Trustees continue to take these provisions into account and also have regard to the Charity Commission's guidance on public benefit. In almost all cases grants are made to other registered charities and emphasis is given to applications which support the elderly or areas of medical research.

With regard to grants to local or regional charities, the Trustees' policy is to prefer those in the Birmingham area because of the connection with the Forsyth family.

Review of Activities

The Trustees are pleased to report that there has been continued success in meeting the objectives of the Charity during the financial year. The results for the year are set out in the Statement of Financial Activities on page 5. Investment income decreased by 23.1% to £45,332, primarily as a result of a decrease in dividend income due to the impact of the Covid-19 pandemic. Grants made during the year, which are detailed in Note 5 to the Financial Statements, decreased by 5.1% to £46,500. Total funds carried forward at the end of the year increased by £321,785.

The Kelton Charitable Trust Trustees' Report for the year ended 5th April 2021

Investment Policy and Performance

The Trustees have full and unrestricted powers of investment. With the exception of the element invested with COIF, the investment portfolio is managed on a discretionary basis by Adam & Company Investment Management Limited in accordance with a policy set and reviewed at least annually by the Trustees.

The value of the Charity's Investment Portfolio, which is summarised in the table below, increased by 21.3% during the year.

Equities Government Securities Unit Trusts Cash Awaiting Investment Corporate Debentures & Loan Stocks	Original Cost Market Value 561,377 944,764 61,376 61,370 412,888 673,370 104,280 104,435 68,557 68,557 1,208,478 1,852,496

All investments are listed on the London Stock Exchange. With the exception of the investment in the COIF Charities Investment Fund (18.2%), no holdings represent more than 5.0% of the total portfolio.

Reserves Policy

Although the Trust Deed allows the Trustees to treat the capital of the Charity as expendable endowment, the current policy is to retain the capital as a fund in order to generate investment income for grant-making. As the Charity has no other sources of income, the Trustees aim to maintain a free reserve on its income fund at a minimum level equivalent to six months' grant-making and administrative costs.

The Trustees are satisfied that this gives the Charity sufficient flexibility to cover any temporary fall in investment income.

Going Concern

The Covid-19 pandemic initially led to a sharp drop in the value of the Charity's investment portfolio, however, this was more than recouped by the end of the financial year and has since improved further. The Charity's investment income also dropped significantly as a result of the impact of the pandemic, but has begun to recover since the financial year end. There was therefore some impact on the Charity's ability to fund its expenditure on charitable activities, but this appears to have been relatively short term. At present, the Trustees continue to have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Plans for Future Periods

The Trustees recognise the increasing level of applications to the Charity for grants and will endeavour to increase grant distributions for the coming year, subject to the expected improvement in investment income, and to keep tight control of administration costs.

Attention will continue to be paid to changes in charity legislation and to relevant guidance issued by the Charity Commission. Every effort will be made to ensure that the Charity complies with any new requirements that affect its work and status.

The Kelton Charitable Trust Trustees' Report for the year ended 5th April 2021

Trustees' Responsibilities

The Trustees are responsible for preparing the Trustees' Report and 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 and 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 the 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 (FRS102).
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.

Approved and signed on behalf of the Trustees

R. Bettinson

2 November 2021

The Kelton Charitable Trust

Independent Examiners' Report on the unaudited accounts of The Kelton Charitable Trust for the year ended 5th April 2021

We have examined the accounts of the Trust, for the year ended 5th April 2021, set out on pages 5 to 9.

Respective responsibilities of the Trustees and the Examiners

As the Charity's Trustees you are responsible for the preparation of the accounts. You consider that an audit is not required for this year under Section 144 of the Charities Act 2011 and that an independent examination is needed.

It is our responsibility:-

To examine the accounts under section 145 of the Act.

To follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Act and

To state whether particular matters have come to our attention.

Basis of Independent Examiners' Report

Our examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently we do not express an audit opinion on the view given by the accounts.

Independent Examiners' Statement

In connection with our examination, no matter has come to our attention which:

gives us reasonable cause to believe that in any material respect the requirements; to keep accounting records in accordance with Section 130 of the said Act; and
to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act

have not been met;

in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

G. C. Cooper Accountancy Ltd. Accountants

5 Church Mews Barlby Selby North Yorkshire YO8 5LL

02 November 2021

The Kelton Charitable Trust Statement of Financial Activities for the year ended 5 April 2021

Unrestricted Funds:- Income Investment Income Total Income Expenditure Direct Charitable Expenditure:- Grants and Donations Other Expenditure:- Administration Costs Total Expenditure Net (Outgoing) before Valuations Net Gains/(Losses)on Investments:- Realised Unrealised Total Gains/(Losses) Net Movement in Funds Total Funds brought forward Total Funds carried forward	Notes 4 5 6	2021 £ 45,332 45,332 46,500 10,608 57,108 (11,776) 52,729 280,832 333,561 321,785 1,611,753 1,933,538	2020 £ 58,929	2020

			58,929
			49,000 10,982
			59,982

			(1,053)
			25,587 (238,824)
			(213,237)

			(214,290) 1,826,043
			1,611,753

The notes on pages 7 to 9 form part of these Financial Statements. The Charity has no recognised gains or losses other than those stated above. All incoming resources and resources expended derive from continuing activities.

The Kelton Charitable Trust Balance Sheet as at 5 April 2021

Notes Assets:- Investments:- Quoted Securities 7 Current Assets:- Income receivable from the Investment Manager Income Tax Recoverable Cash at bank Total Assets Current Liabilities:- Creditors Total Liabilities Net Assets Represented by:- Total Unrestricted Funds:- Capital Fund Income Fund Revaluation Reserve Monies held by the Investment Manager awaiting Investment	2021 £ 1,783,939 68,557 1,852,496 321 - 84,925 85,246 1,937,742 4,204 4,204 1,933,538 1,069,934 219,586 644,018 1,933,538	2020 £ 1,513,350 14,221	2020
		1,527,571
		502 371 87,444
		88,317

		1,615,888
		4,135
		4,135

		1,611,753
		1,069,934 178,633 363,186
		1,611,753

Approved by the Trustees

R. Bettinson

H. Bettinson Trustees 2 November 2021

The notes on pages 7 to 9 form part of these Financial Statements.

The Kelton Charitable Trust Notes to the Financial Statements at 5 April 2021

1 Accounting Policies

i) Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention with the exception of investments, which are included on a market value basis. The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their Financial Accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

ii) Cash Flow

The Financial Statements do not include a cash flow statement because the Charity, as a Small Reporting Entity, is exempt from the requirements to prepare such a statement under the Charities SORP FRS 102.

iii) Preparation of Financial Statements on a Going Concern Basis

The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

iv) Investment Income

Investment income is accounted for in the period in which the Charity is entitled to receipt.

v) Resources Expended

Expenditure is included on an accruals basis and includes attributable VAT which cannot be recovered. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Charity.

vi) Fixed Asset Investments

Investments are included at their fair value at the Balance Sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

vii) Fund Accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity.

Capital Fund

The Trust Deed allows the Capital Fund of the Charity to be spent as income or retained as Capital at the Trustees' discretion. However, the Charity's current policy is to retain the Capital as a fund to generate investment income for grant-making. Investment gains or losses arising on disposal of fund assets are transferred to the Income Fund, while those arising on revaluation are held within a separate reserve forming part of the Capital Fund.

Income Fund

The Income Fund is an unrestricted fund and is expendable at the discretion of the Trustees in furtherance of the objects of the Charity. Income is derived from the investment of the Charity's Capital Fund.

2 Trustees' Remuneration and Related Party Transactions

The Trustees neither received nor were entitled to receive any emoluments in the year (2021: £nil). However, administration costs shown in Note 6 include £265 for reimbursement of travelling, subsistence and related expenses to one Trustee (2020: £265 to one Trustee).

The Kelton Charitable Trust Notes to the Financial Statements at 5 April 2021

3 General Declarations

The Charity does not have any endowment or restricted Funds.
The Charity does not have any material commitments not provided for in these accounts.
The Charity has not given any guarantees to third parties.
The Charity has not made or been granted any loans.
The Charity has not made any ex-gratia payments.
The Charity does not have any designated Funds.
The Charity does not have any subsidiary companies.
The Charity does not have any intangible assets.
Sufficient resources are held in an appropriate form to enable the Charity to carry out its activities.
The Charity does not have any material fixed assets which have not been capitalised and included on the balance sheet.

4 5	Investment Income Dividends received:- Equities etc Unit & Investment Trusts Interest received:- Government Securities Corporate Bonds & Loan Stocks Investment Manager's Client Account Grants Alzheimer's Research UK ASPIE B. I. D. Services Birmingham PHAB Camps Birmingham Samaritans Birmingham Women's Hospital Charity Bowel Disease Research Foundation British Heart Foundation British Wireless for the Blind Fund Cerebral Palsy Midlands Guide Dogs for the Blind Guts UK Home From Hospital Care InterAct Stroke Support Martineau Gardens Midlands Air Ambulance Charity Myaware Queen Elizabeth Hospital Birmingham Charity c/f	2021 £ 25,373 14,594 750 4,590 25 45,332 5,000 1,500 1,000 2,000 2,000 2,000 1,000 1,000 2,000 7,000 1,000 1,000 1,500 1,500 1,000 2,000 500 1,500 34,500	2020 £ 37,035 15,586 1,069 4,839 400	2020
			58,929
			5,000 2,000 1,000 2,500 2,000 2,000 1,000 - 1,500 7,000 1,000 2,000 1,500 2,000 1,000 2,000 - 1,500
			35,000

The Kelton Charitable Trust Notes to the Financial Statements at 5 April 2021

5 6 7 8	Grants bf Shropshire RCC St Mary's Hospice Birmingham St Mary's Youth Project The Cure Parkinson's Trust The Pituitary Foundation The Regal Tenbury Trust Wellbeing of Women Administration Costs Administration Charges Investment Manager's Fees Postages, Telephone etc. Examiner's Fees Investments Equities Government Securities Unit & Investment Trusts Corporate Bonds & Loan Stocks Analysis of the Changes in the Investments Portfolio during the year Market Value at beginning of Year Acquisitions at Cost Disposals at Carrying Value Net Increase/(Decrease) on Revaluation Market Value at end of Year	2021 £ 34,500 - 3,000 2,000 4,000 2,500 500 - 46,500 265 8,688 85 1,570 10,608 944,764 61,370 673,370 104,435 1,783,939 1,513,350 134,656 1,648,006 (162,443) 1,485,563 298,376 1,783,939	2020 £ 35,000	2020
			1,000 3,000 2,000 4,000 2,500 - 1,500
			49,000
			265 9,082 85 1,550
			10,982
			788,369 61,571 550,012 113,398
			1,513,350
			1,715,443 100,699
			1,816,142 (94,616)
			1,721,526 (208,176)
			1,513,350