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2022-04-05-accounts

Charity registration number 327644

THE CRESCENT TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

THE CRESCENT TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R A F Lascelles J C Tham Charity number 327644 Principal address 7-12 Sloane Square London SW1W 8EG Independent examiner Sam Thomas Azets Audit Services Trinity Court 34 West Street Sutton Surrey SM1 1SH

THE CRESCENT TRUST

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 16

THE CRESCENT TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2022

The trustees present their annual report and accounts of the charity for the year ended 5 April 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the trust'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 (FRS 102)" (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

The purpose of the Trust, both long-term and short-term, is to benefit charities in general, but particularly charitable causes relating to the works of Sir Geoffrey Jellicoe. The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, and setting the grant making policy for the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Independent Examination should undertake.

The principal activity of the trust during the year was to provide cash donations to a number of other charities and to provide public access to the Trust's land. Donations to other charities are shown under Donations to Institutions in Expenditure within the Statement of Financial Activities. The trustees decide on an annual basis which charities they will support with emphasis on the areas mentioned above.

Achievements and performance

During the year, donations of £80,717 (2021 - £466,217) were received. As a result, the Trust has continued to make donations of £35,998 (2021 - £41,536) during the year which are outlined in note 8 to the financial statements.

Financial review

Income decreased substantially during the year due to the level of donations received. As a result, there has been an overall net decrease in funds of £98,545 (2021 - £487,659) before any investment gain or losses. Donations to charities are made when funds allow and all funds are considered to be unrestricted.

The unrestricted reserves, excluding investments and money designated for capital commitments, is £194,416 (2021 - £510,439) as at 5th April 2022. No reserves policy is in place as the level of donations to institutions and activity is dependent on the donations received and investment income. Overall, the fund balance has decreased in the year but the trustees believe sufficient reserves exist.

The trustees have assessed the major risks to which the Independent Examination is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

The trustees intend to operate the charity in a similar manner for the foreseeable future, but with continued focus on the encouragement of the public to appreciate gardens and the work of Sir Geoffrey Jellicoe.

The trustees anticipate a continued level of donations and investment income over the next 12 months.

Structure, governance and management

The Independent Examination is a registered charity, number 327644, and is constituted under a charitable trust deed dated 10th September 1987.

The trustees who served during the year and up to the date of signature of the financial statements were: R A F Lascelles J C Tham

THE CRESCENT TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022 The charitys current pollcy concerning the payment of trade creditors is to follow th8 C81,5 Prompt Payers Code (copies are availabl8 from th8 CBI. Centre Point. 103 New Ox*ord Street, Lonth)n WC1A 1DUI. The charity's eurrent policy conceming thg payment of trade creditors is to.. • s8tt18 thè tarms of p8yment with suppliers when agreeing the temis of 9ach Iransaclion: • ensure that suppliérs arè madè awarè of the terms of payment by inclusion of th8 relgvant terms in c47ntracts', an pay in accordancè with the charity's contractual and other legal obligations. The twslees consldgr the board of trustees to be key personnel of the Charity in charge of direcfing and controlling Ihe charity. Al deGi5ions are rnade by the trustees for which no ￿MUn￿ratiOn is paid. Nts appointnwnts or rasignatitsns o¢ixJrred during the year and there is no fomial Pfocess for Rcruiting. appointing or Iraining trustees. The tNsts ort was approved by the Board of Trust•8s. R A F L8s¢elles Trustee Date..

THE CRESCENT TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CRESCENT TRUST

I report to the trustees on my examination of the financial statements of The Crescent Trust (the Independent Examination) for the year ended 5 April 2022.

Responsibilities and basis of report

As the trustees of the Independent Examination you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Independent Examination’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

Sam Thomas Azets Audit Services Independent Examiner ICAEW

28/06/2023 Dated: .........................

Trinity Court 34 West Street Sutton Surrey SM1 1SH

THE CRESCENT TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2022

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income and endowments from:
Donations and legacies 3 80,511 466,217
Investments 4 1,208 10,746
Other income 5 40,003 132,380
Total income 121,722 609,343
Expenditure on:
Raising funds 6 49,455 14,474
Charitable activities 7 170,812 107,210
Total expenditure 220,267 121,684
Net gains/(losses) on investments 13 17,828 4,523
Net (expenditure)/income for the year/
Net movement in funds (80,717) 492,182
Fund balances at 6 April 2021 1,654,053 1,161,871
Fund balances at 5 April 2022 1,573,336 1,654,053

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE CRESCENT TRUST BALANCE SHEET ASAT5APRIL 2022 2022 2021 Nots$ Fwxed assets Tangible assets Investlngnts 14 15 145.364 1,233,558 135,D58 1,008,556 Current ass¢ts Stock$ Dgblors Cash at bank and in hand 1,378,920 1,143,614 17 18 247,500 164.153 104.441 198,364 31.227 229,591 Cmditors: amounts falling due wIthin one yoar 516,094 19 135,1751 15,655} Net current assets 194.416 510.439 Total as59ts less current Ilablllti•$ 1,573.336 1.654,053 Income funds un Designatad funds General unrestricted fijnds Revaluation resarve 20 18.750 1,279.787 355.516 1.217,820 355,516 1,573.336 1,654.053 1,573,336 1.654,053 Thefin 2810612023 tatements were approvèd by the Trustees on ......................... R A F Lascellès Tru$teg

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Charity information

The Crescent Trust is constituted under a charitable trust deed dated 10th September 1987.

1.1 Accounting convention

The accounts have been prepared in accordance with the Independent Examination's charitable 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Independent Examination is a Public Benefit Entity as defined by FRS 102.

The Independent Examination has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Independent Examination. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Independent Examination has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the Independent Examination is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Independent Examination has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Independent Examination has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Governance and support costs, which are the costs associated with the governance arrangements of the trust and relate to the general running of the trust, have been apportioned between charitable activities based on the direct costs involved.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Land for conservation is carried at its valuation and reviewed for any gains or impairment losses on an annual basis.

Plant and machinery

20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Valuation of land and buildings held as an investment property has not been valued by an independent valuer.

1.8 Impairment of fixed assets

At each reporting end date, the Independent Examination reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The Independent Examination has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Independent Examination's balance sheet when the Independent Examination becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Independent Examination’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Independent Examination is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.14 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.

1.15 Grant funding

Grants expended to charities are accounted for on the basis of the date they are paid to the charity.

1.16 Taxation

As a registered charity, the trust is generally exempt from income tax and capital gains tax, but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

2 Critical accounting estimates and judgements

In the application of the Independent Examination’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The trustees have used judgement when deciding how to allocate support and governance costs across the two activities. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 80,511 466,217

4 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Rental income 1,208 10,740
Interest receivable - 6
1,208 10,746

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

5 Other income

Claim for repayment of income tax
CJRS income
Sale of art
Raising funds
Investment management charges
Investment property expenditure
2022
£
18,750
6,253
15,000
40,003
2022
£
167
49,288
49,455
2021
£
118,750
13,630
-
132,380
2021
£
1,352
13,122
14,474

6 Raising funds

Included within investment property expenditure is repairs and maintenance of £36,741 (2021 - £4,679), insurance of £1,986 (2021 - £956), rates of £2,298 (2021 - £nil), letting agent fees of £nil (2021 - £273) and staff costs of £8,263 (2021 - £7,214).

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

7 Charitable activities

Donations
to
Institutions
Gardens &
Nature
Conservation
2022
2022
£
£
Staff costs
-
12,848
Depreciation and
impairment
-
4,153
Gardens & Nature
conservation
-
59,230
Foreign exchange loss
(9)
-
Loss on sale of art
22,500
-
Research costs
28,480
-
Art donations
-
-
50,971
76,231
Grant funding of activities
(see note 8)
35,998
-
Share of support costs (see
note 9)
299
235
Share of governance costs
(see note 9)
3,964
3,114
91,232
79,580
Total
2022
Donations
to
Institutions
Gardens &
Nature
Conservation
2021
2021
£
£
£
12,848
-
11,256
4,153
-
1,051
59,230
-
11,488
(9)
19
-
22,500
-
-
28,480
2,520
-
-
25,750
-
127,202
28,289
23,795
35,998
41,536
-
534
778
260
7,078
9,677
2,875
170,812
80,280
26,930
Total
2021
£
11,256
1,051
11,488
19
-
2,520
25,750
52,084
41,536
1,038
12,552
107,210

8 Grants payable

Grants to institutions:
Chalke Valley History Trust
PMSA
The Garden Museum
Victoria & Albert Museum
Longborough Festival Opera
UNICEF
Team Domenica
Royal Marsden
Other
Grants to individuals
2022
£
5,000
-
10,000
5,000
-
7,500
-
-
3,795
31,295
4,703
35,998
2021
£
-
29,124
-
-
3,500
-
2,500
2,500
2,912
40,536
1,000
41,536

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

8 Grants payable

(Continued)

All of the above grants are in line with the general objectives of the trust and its trustees.

Grants that are in excess of 5% of the total grants for the period are shown separately.

9 Support costs

Support
costs
Governance
costs
£
£
Printing, Postage &
Stationery
534
-
Audit fees
-
4,800
Legal and professional
-
2,258
Bank charges
-
20
534
7,078
Analysed between
Charitable activities
534
7,078
2022Support costs Governance
costs
£
£
£
534
1,038
-
4,800
-
5,304
2,258
-
7,248
20
-
-
7,612
1,038
12,552
7,612
1,038
12,552
2021
£
1,038
5,304
7,248
-
13,590
13,590

Governance costs includes payments to the Independent Examiners of £4,800 (2021- £5,304) for independent examiner fees.

10 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

Independent Examination
Non-audit services
All other non-audit services
2022
£
4,800
1,685
2021
£
5,304
1,093

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

12 Employees

Number of employees

The average monthly number of employees during the year was:

2022 2021
Number Number
2 2
Employment costs 2022 2021
£ £
Wages and salaries 20,468 18,049
Social security costs 464 283
Other pension costs 179 138
21,111 18,470

Staff costs attributable to Gardens & Nature Conservation of £12,848 (2021 - £11,256 ) include wages and salaries of £12,205 (2021 - £10,835), social security costs of £464 (2021 - £283) and pension costs of £179 (2021 - £138). Staff costs attributable to investment property expenditure of £8,263 (2021 - £7,214) include wages and salaries of £8,263 (2021 - £7,214 ) and social security costs of £nil (2021 - £nil).

No employees received emoluments of more than £60,000 p.a.

13 Net gains/(losses) on investments

2022 2021
£ £
Fair Value adjustments to financial instruments 17,828 4,523

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

14 Tangible fixed assets

Cost
At 6 April 2021
Business combinations
At 5 April 2022
Depreciation and impairment
At 6 April 2021
Depreciation charged in the year
At 5 April 2022
Carrying amount
At 5 April 2022
At 5 April 2021
Plant and
machinery
Land for
conservation
£
£
6,306
129,803
14,459
-
20,765
129,803
1,051
-
4,153
-
5,204
-
15,561
129,803
5,255
129,803
Total
£
136,109
14,459
150,568
1,051
4,153
5,204
145,364
135,058

15 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 6 April 2021
361,501
Additions
225,000
At 5 April 2022
586,501
Carrying amount
At 05 April 2022
586,501
At 05 April 2021
361,501
Land &
Buildings
£
647,055
-
647,055
647,055
647,055
Total
£
1,008,556
225,000
1,233,556
1,233,556
1,008,556

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

16
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
Carrying amount of financial liabilities
Measured at amortised cost
2022
£
163,426
5,116
2021
£
155,927
5,005

Financial instruments at fair value through profit or loss which are not held as part of a trading portfolio and are not derivatives

Financial instruments measured at fair value have been calculated using the retail price index as stated in the contract details. A fair value increase of £17,828 (2021 £4,523) has been recognised through the statement of financial activities.

17 Stocks

17
Stocks
Finished goods and goods for resale
18
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
2022
£
-
2022
£
179,516
18,848
198,364
2021
£
247,500
2021
£
163,426
727
164,153

Prepayments and accrued income includes accrued rental income of £559.

19
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income
2022
£
(357)
30,732
4,800
35,175
2021
£
44
524
5,087
5,655

THE CRESCENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds
Incoming Resources Balance at Resources Balance at
resources expended 6 April 2021 expended 5 April 2022
£ £ £ £ £
Publication funds 21,000 (2,250) 18,750 (18,750) -
21,000 (2,250) 18,750 (18,750) -

Some of the donations received in the year have been set aside by the trustees to fund educational and research costs in relation to a future publication on porcelain. These designated funds are spent as the costs are incurred.