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2022-04-05-accounts

The M T & S D Burton Charitable Settlement

Annual Report and Financial Statements for the year ended 5 April 2022

Charity Commission Reference Number 327450

The Glebe House Sacombe Hertfordshire SG12 0JJ

The M T & S D Burton Charitable Settlement

Year ended 5 April 2022

Contents

Trustees’ Report 2 to 5
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 12

1

The M T & S D Burton Charitable Settlement

Trustees’ Report for the year ended 5 April 2022

Legal and administrative information

Charity number 327450 Trustees: Mark Timothy Burton Sally Denise Burton Jeremy John Burton Independent Examiner: Ross Preston - Chartered Accountant Accountants: Armstrong Watson Audit Limited Third Floor 10 South Parade Leeds LS1 5QS Bankers: Bank of Scotland plc 33 Old Broad Street London EC2N 1HW Barclays Bank plc 1 Churchill Place London E15 5HP Investment Managers: Rathbone Investment Management 1 Curzon Street London W1J 5FB Principal address: The Glebe House Sacombe Hertfordshire SG12 0JJ

The Trustees present their report together with the financial statements of the charity for the year ended 5 April 2022. 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, the Charities (Accounting and Reports) Regulations 2008 and the Statement of Recommended Practice "Accounting and Reporting by Charities" (Charities SORP (FRS102)).

Structure, governance and management

The trust is managed by the Trustees and policy decisions are determined by consensus. The capital fund is invested in a portfolio of equity based quoted investments. Investments are managed by the investment manager on a discretionary basis with the objective of obtaining an acceptable level of income with a reasonable prospect of medium term capital growth.

Appropriate policies are determined to achieve a balanced investment strategy taking account of the investment risks to which the portfolio is exposed.

Trustees are appointed based on recommendations from the family of the settlor and current trustees. The induction process for newly appointed trustees comprises of a series of meetings with the Trustees.

2

The M T & S D Burton Charitable Settlement

Trustees’ Report (continued) for the year ended 5 April 2022

Risk Management

The charity’s Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The Trustees hold regular meetings to consider the performance of the investment portfolio and the recommendations of the investment managers.

History and constitution

The trust is an unincorporated trust constituted under a trust deed dated 27 April 1987 and was established by an initial gift from Mark Burton.

During the lifetime of the settlor the income of the trust fund, and also so much of the capital of the trust fund as the settlor may direct, is to be applied to charities or for charitable purposes as directed by the settlor.

After the death of the settlor the settled funds are to be held upon trust for the benefit of such charities or for such charitable purposes as the Trustees may determine, having regard for the direction given or wishes expressed by the settlor.

The Trustees have chosen an accounting reference date of 5 April to coincide with the tax year and to facilitate the efficient repayment of any repayable income tax suffered.

The trust does not fund raise and seeks to continue the philanthropic intentions of the settlor through the careful stewardship of the existing resources.

The trust is registered with The Charities Commissioners under registration number 327450.

Objectives and activities

Donations are made at the discretion of the Trustees and charitable donations are normally made to health, arts, education and social need charities.

Donations to individuals will not be considered. Appeals should be in writing only to the trust managers. Unsuccessful appeals will not necessarily be acknowledged.

Donations are paid out of income, but the Trustees may, if they feel it necessary, pay donations out of capital.

Public benefit statement

The Trustees of the MT & SD Burton Charitable Trust confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Financial activities and affairs

Investment income during the year amounted to £84,728 (2021: £82,777). This represents a yield of 3.2% on the average market value of the investments during the year.

The trust made charitable donations of £55,435 during the year (2021: £58,040) and total expenditure for the year was £74,027 (2021: £75,210).

3

The M T & S D Burton Charitable Settlement

Trustees’ Report (continued) for the year ended 5 April 2022

Financial activities and affairs (continued)

Overall net income for the year was £10,701 (2021: £7,567).

Gains realised on the sale of investments amounted to £18,510 (2021: £58,184) and unrealised gains attributable to the change in the market value of investments amounted to £197,020 (2021: £374,488).

The overall net increase in funds for the year is £226,231, resulting in total funds of £2,892,018 to carry forward at 5 April 2022.

During the year under review, the charity purchased investments at a cost of £454,486 and received proceeds of £450,603 from the sale of investments.

The market value of the trust’s investments at 5 April 2022 amounted to £2,766,892 (2021: £2,547,479).

The investments of the trust are administered by the portfolio managers on a discretionary basis. Environmental and ethical considerations are given on an individual basis when changes to the investments are discussed with the managers.

The Trustees receive no remuneration and charge no expenses whilst acting in their capacity as trustee or otherwise.

Reserves policy

The Trustees aim to maintain the existing investment portfolio at current levels and to make charitable donations in line with their income each year.

Reserves at 5 April 2022 amounted to £2,892,018 and are held for the generation of income and furtherance of the charity’s objectives.

Plans for the future

The trust will continue to support charitable organisations that benefit health, arts, education and social needs.

Trustees' responsibility for the financial statements

Charity law requires the Trustees of the charity to prepare a Statement of Financial Activities and a Balance Sheet which gives a true and fair view of the state of affairs of the charity and of its income and expenditure.

In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping accounting records, which are sufficient to:

4

The M T & S D Burton Charitable Settlement

Trustees’ Report (continued) for the year ended 5 April 2022

Trustees' responsibility for the financial statements (continued)

The Trustees are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. As such, the investments are held by the investment advisers in a separate designated nominee account.

Compliance and statutory requirements

The Trustees’ Report has been prepared in accordance with the provisions of the Charities (Accounts and Reports) Regulations 2008 and the Statement of Recommended Practice "Accounting and Reporting by Charities" (Charities SORP (FRS102)).

Trustees Approval

The Trustees' Report was approved by the Trustees and signed on their behalf by

Mark Burton Trustee

Date: 7 October 2022

5

The M T & S D Burton Charitable Settlement

Independent Examiner’s Report to the Trustees for the year ended 5 April 2022

Charity Commission Reference Number 327450

I report to the Trustees on my examination of the accounts of the M T & S D Burton Charitable Settlement on pages 7 to 12.

Respective responsibilities of the Trustees and the Examiner

The Trustees are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed.

It is my responsibility to:

Basis of the Independent Examiner’s statement

My examination was carried out in accordance with 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 the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent Examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Ross Preston Chartered Accountant Armstrong Watson Audit Ltd Third Floor 10 South Parade Leeds LS1 5QS

Date: 12 October 2022

6

The M T & S D Burton Charitable Settlement

Statement of Financial Activities for the year ended 5 April 2022

Income
Note
Investment income
UK dividends
UK interest
Foreign dividends
Foreign interest
Property income distributions
Deposit interest
Total income
Expenditure
Direct charitable expenditure
Charitable donations
6
Administrative expenditure
Accountancy
Independent examination
Investment adviser's management fees
Total expenditure
Net income/(expenditure)
Other recognised gains and losses
Unrealised gains on revaluation of investments
Realised gains on disposal of investments
Total other recognised gains
Reconciliation of funds
Net movement in funds
5
Funds brought forward
Funds carried forward		 Capital
Income
fund
fund
2022
2022
£
£
-
42,851
-
9,439
-
18,353
-
7,060
-
7,025
-
-
Unrestricted funds		 Total
2022
£
42,851
9,439
18,353
7,060
7,025
-
84,728
84,728
55,435
1,890
1,890
14,812
74,027
10,701
197,020
18,510
215,530
226,231
2,665,787
2,892,018		 Total
2021
£
38,870
10,682
18,958
7,560
6,673
34
-
84,728		 82,777
-
84,728		 82,777
-
55,435
945
945
945
945
14,812
-		 58,040
1,800
1,800
13,570
16,702
57,325		 75,210
(16,702)
27,403		 7,567
197,020
-
18,510
-		 374,488
58,184
215,530
-		 432,672
198,828
27,403
2,566,917
98,870		 440,239
2,225,548
2,765,745
126,273		 2,665,787

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been presented.

See note 5 on page 11 for the historical cost income and expenditure.

The notes on pages 9 to 12 form part of these financial statements.

7

The M T & S D Burton Charitable Settlement

Balance Sheet at 5 April 2022

Note
Fixed assets
Investments
3
Current assets
Cash held by investment adviser
Cash at bank
Creditors: Amounts falling
4
due within one year
Net current assets
Net assets
Funds
Unrestricted funds
Total funds		 Capital
Income
fund
fund
2022
2022
£
£
2,766,892
-
1,716
4,888
2,795
123,275
4,511
128,163
5,658
1,890
(1,147)
126,273
2,765,745
126,273
2,765,745
126,273
2,765,745
126,273
Unrestricted funds		 Total
2022
£
2,766,892
6,604
126,070
132,674
7,548
125,126
2,892,018
2,892,018
2,892,018		 Total
2021
£
2,547,479
21,808
103,596
125,404
7,096
118,308
2,665,787
2,665,787
2,665,787

The notes on pages 9 to 12 form part of these financial statements.

The financial statements were approved by the trustees and signed on their behalf by

Mark Burton Trustee Date: 7 October 2022

8

The M T & S D Burton Charitable Settlement

Notes to the financial statements for the year ended 5 April 2022

1. Accounting policies

Charity information

The M T & S D Burton Charitable Settlement is a charity which is registered with the Charity Commission for England and Wales under the registered number 327450. The principal address is The Glebe House, Sacombe, Hertfordshire, SG12 0JJ. The charity is a public benefit entity.

1.1

Basis of accounting

The financial statements are prepared in accordance with FRS102 and The Charities SORP (FRS102), and are in compliance with the Charities (Accounts and Reports) Regulations 2008 issued under the Charities Act 2011.

The financial statements are prepared under the historical cost convention, modified to include investments at fair value.

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 £.

1.2 Going concern

There are no material uncertainties about the charity’s ability to continue as a going concern for a period of at least 12 months from the date of approval of the accounts. The charity has adequate reserves to meet its liabilities as they fall due.

1.3

Income

Investment income is stated at the amount receivable net of irrecoverable foreign tax and is accounted for when received by the trust. Other income is included in the financial statements on an accruals basis.

1.4 Direct charitable expenditure

Direct charitable expenditure is included in the financial statements as and when paid by the trust.

1.5 Other expenditure

Other expenditure is included in the financial statements on an accruals basis.

1.6 Taxation

The trust is exempt from UK income and capital gains tax to the extent that income and gains are applied for charitable purposes. The trust is unable to recover value added tax on its expenditure and accordingly expenses are shown gross of value added tax.

1.7 Investments

Investments are stated on the balance sheet at their open market value.

Both realised and unrealised gains and losses on investments are included in other recognised gains and losses on the Statement of Financial Activities.

Realised gains and losses on investments are calculated as the difference between disposal proceeds and carrying value at the date of disposal.

Carrying value is the sum of market value brought forward at the beginning of the accounting period and the cost of subsequent acquisitions.

2. Trustees' remuneration

None of the Trustees receive any remuneration or charge any expenses in connection with their work as a trustee.

9

The M T & S D Burton Charitable Settlement

Notes to the financial statements (continued) for the year ended 5 April 2022

3.
Investments
Market value brought forward
Additions at cost
Disposals at carrying value
Unrealised gains/(losses)
Market value carried forward
Historical cost at 5 April 2022
Investments are held within the following categories.
United Kingdom based organisations
Companies
Collectives
Government bonds
Overseas
Companies and collectives		 2022
£
2,547,479
454,486
(432,093)
197,020
2,766,892
2,143,413
2022
£
531,412
821,355
154,561
1,507,328
1,259,564
2,766,892		 2021
£
2,051,154
520,856
(399,019)
374,488
2,547,479
2,026,224
2021
£
510,951
815,824
144,729
1,471,504
1,075,975
2,547,479

All investments are listed on a recognised stock exchange. Investments are held in nominee accounts on behalf of the trustees but in all other respects are considered to be directly held investments.

4.
Accruals
Accountancy and examination fees
Investment management fees		 2022
£
3,780
3,768
7,548		 2021
£
3,600
3,496
7,096

10

The M T & S D Burton Charitable Settlement

Notes to the financial statements (continued) for the year ended 5 April 2022

5.
Note of historical cost income and expenditure
Net income for the year
Realised gains on investments calculated using cost
Historical cost income and expenditure
Difference between the historical cost gains arising from the
realisation of investments and the actual gain calculated using
carrying value
Unrealised gains on investments
Movement in funds on Statement of Financial Activities		 2022
£
10,701
113,307
124,008
(94,797)
197,020
226,231		 2021
£
7,567
7,621
15,188
50,563
374,488
440,239

6. Charitable donations

Aggregate grants made to charitable organisations during the year fell into the following categories.

Animals
Arts and Countryside
Cancer Treatment
Children and Young People
Community
Education
International
Medical
Mental Health
Poverty
Religion		 2022
2021
2022
2021
No. Grants
No. Grants
£
£
2
1
100
50
6
6
1,030
490
14
10
5,920
7,550
8
12
23,850
27,000
9
5
12,550
5,850
2
2
1,250
5,100
2
-
1,100
-
13
10
1,260
2,700
-
4
-
950
11
11
5,200
8,100
8
1
3,175
250
75
62
55,435
58,040

11

The M T & S D Burton Charitable Settlement

Notes to the financial statements (continued)

for the year ended 5 April 2022

7. Funds

The capital fund comprises investment assets held for the generation of income. The income fund comprises assets to fund charitable donations.

The trustees are free to use both the income and capital funds accordance with the objects of the charity.

8. Related party transactions

There were no transactions with related parties during the year.

12