Monmouthshire Farm School Endowment Trust Fund
Annual report for the year ended 31 March 2021
Registered Charity Number: 525649
Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2020
Contents
| Trustees, officers and advisers | 1 |
|---|---|
| Report of the Trustees | 2 |
| Independent examiner’s report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 |
Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Trustees, officers and advisers
Trustees
R Edwards Monmouthshire County Council
P Murphy Monmouthshire County Council Commenced during year.
A Easson Monmouthshire County Council
D W.H Jones Monmouthshire County Council
B Thomas Blaenau Gwent County Borough Council
Dr W O C Symondson University of Wales College Cardiff
D Yeowell Torfaen County Borough Council Left during year
Professor J D Hayes University College Wales Aberystwth
Helen Morgan Director Usk Campus – Coleg Gwent Commenced during year
D Havard Caerphilly County Borough Council
M Feakins Mounmouthshire County Council
B Jones Monmouthshire County Council Commenced in year.
Secretary
Matthew Phillips Head of Legal Services Monmouthshire County Council
Registered Office County Hall, The Rhadyr, Usk, NP15 1GA
Independent Examiners
Audit Wales, 24 Cathedral Road, Cardiff, CF11 9LJ
Solicitors
Matthew Phillips Head of Legal Services Monmouthshire County Council
Investment custodian
Monmouthshire County Council
Bankers
Barclays Bank 1-5 St David’s Way St David’s Centre Cardiff CF10 2DP
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Monmouthshire Farm School Endowment Trust Fund
Annual report for the year ended 31st March 2021
Report of the Trustees for the year ended 31st March 2021
The Trustees present their annual report and the independently examined financial statements for the year ended 31 March 2021 of The Monmouthshire Farm School Endowment Trust Fund. The information with respect to the Trustees, officers and advisers set out on page 1 forms part of this report. The financial statements have been prepared in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and Charity Act 2011. The financial statements comply with the Charity’s trust deed.
Status and administration
The Charity is governed by the 1959 Principal Scheme as amended by the Altering Scheme of 1971, although the governing body may rightly claim a history stretching back to 1894. The Fund is registered with the Charity Commission under Charity number 525649. The Trustees also have regard to the Charity Commission’s guidance on public benefit.
Objects
The primary object of the Charity, as stated in its governing document, is to make awards to students in need of assistance to attend Usk Agricultural College, or at the discretion of the governing body, any other college, institution or university to pursue courses of study in agricultural subjects. The governing body can use its discretion to apply any unawarded income to provide funding towards the cost of facilities or amenities at Usk College which would benefit these students. The grants awarded have allowed the beneficiaries to pursue land based courses to enhance career opportunities. The area of benefit is clearly defined; household income is a consideration when making the award. The total grant awards were £14,678 (£26,517 in 2019/20).
Review of activities and future developments
The statement of financial activities for the year is set out on page 5 of the financial statements. A summary of the financial results and the work of the Charity are set out below.
The Fund has increased in value by £26,021 (£30,746 decrease in 2019/20) over the financial year as a result of incoming resources (from investments) exceeding outgoing resources.
Income consists of interest on investment stock and cash held of £26,510 (£26,508 in 2019/20), and £0 (£0 2019/20) in respect of the annual payment from the Roger Edwards Educational Trust. Expenditure of £16,401 (£29,063 in 2019/20) primarily comprised of grants payable of £14,678 (£26,517 in 2019/20) in line with the Charity’s objects. An unrealised investment gain of £15,912 (£28,191 loss in 2019/20) was made in relation to investments held.
The current strategy is to ensure that there are sufficient funds to meet the needs of beneficiaries. This income generation forms the main basis of the following year’s grant allocations to ensure continuity and nondegradation of the fund’s capital assets and to perpetuate the Charity as a going concern.
Investment powers, policy and performance
Under the terms of the Trust Deed, the Trustees have general powers of investment, subject to the provisions of the Trustee Act 2000. The Trustees have reviewed their investment strategy and produced an investment and fund strategy for 2019/20 which was approved by Monmouthshire County Council in its capacity as Trust administrator on 5[th] March 2020. Investments are strategically placed in low-risk investments. Investment performance is reviewed periodically in light of prevailing economic changes.
Grant making policy
Grants are made in pursuance of the Charity’s objectives in assisting students in need to attend Usk Agricultural College, or at the discretion of the governing body, any other college, institution or university to pursue courses of study in agricultural subjects.
Changes in fixed assets
The movements in fixed asset investments during the year are set out in note 7 to the financial statements.
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Reserves
The Fund consists primarily of the sale proceeds of the Former Monmouthshire Farm School by the governing body of the school to Monmouthshire County Council . The Fund are entitled to receive an annual payment from The Roger Edwards Educational Trust (Charity Number 525638) equivalent to two thirds of the annual investment and rental income accrued to the Trust.
The Trust has reviewed its fund strategy and produced an investment and fund strategy for 2020/21 which states that it is the Trust’s policy to maintain funds at approximately the current level and utilise the annual income received to fund its charitable expenditure. This was approved by Cabinet on the 5[th] March 2020.
Governance of the Charity
Representative Trustees appointed by Monmouthshire County Council have a term of office equivalent to the term of a County Council (five years); the other representative Trustees have a term of office of three years and the co-opted Trustees have a term of office of five years. County Council Trustees are elected to the board of Trustees. Trustees that represent other organisations are internally appointed. The Trustees are listed on page 1.
Risk management
Monmouthshire County Council as appointed administrator of the Trust Fund periodically review the major risks to which the Charity is exposed as part of the Authority’s overall risk management processes. The Roger Edwards Educational Trust has historically provided significant income to this trust to be used for the distribution of grants. This income is received after the independent examination of the accounts and therefore this is usually late in the financial year. A risk assessment policy was approved by Cabinet on 5th March 2019.
Independent examiners
The Audit Wales are the appointed independent examiners to the Charity.
Trustees’ responsibilities
The Trustees are required by Charity law 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 net incoming/outgoing resources of the Charity as at the end of the financial year.
The Trustees confirm that suitable accounting policies have been used and applied consistently, and reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31st March 2021 The Trustees also confirms that applicable accounting standards have been followed and that the financial statements have been prepared on the going concern basis.
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 1993. 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.
By order of the Trustees
Derek Havard
Trustee:
Date: 21st January 2022
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Report of the independent examiner to the Trustees of Monmouthshire Farm School Endowment Trust Fund
I report on the accounts of Monmouthshire Farm School Endowment Trust Fund for the year ended 31 March 2021, which are set out on pages 5 to 11.
Responsibilities and basis of report
As the charity's Trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act). You are satisfied that the accounts are not required to be audited by charity law and have chosen instead to have an independent
I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Act; In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
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:
-
accounting records were not kept as required by section 130 of the 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 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; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
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.
Adrian Crompton 24 Cathedral Road Auditor General for Wales Cardiff 24 January 2022 CF11 9LJ
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Statement of financial activities (Sofa) for the year ended 31st March 2021
| Notes 2021 Unrestricted Funds £ |
2020 Unrestricted Funds £ |
|---|---|
| Income & Endowments from: Investment income 2 26,510 |
26,508 |
| Total income & Endowments 26,510 |
26,508 |
| Resources Expended | |
| Charitable expenditure Costs of activities in furtherance of the Charity’s objects Expenditure on charitable activities 3 14,678 Other expenditure 3 & 4 1,723 |
26,517 2,546 |
| Total Resources expended 16,401 |
29,063 |
Gains/(losses) on investment assets 5 15,912 |
(28,191) |
Net Income / (Expenditure) 26,021 |
(30,746) |
Net movement in funds 26,021 Fund balances brought forward 1 April 2020 627,904 |
(30,746) 658,650 |
| Fund balances carried forward 31 March 2021 653,925 |
627,904 |
All incoming resources and resources expended are derived from continuing activities. There are no recognised gains or losses other than those disclosed above.
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Balance Sheet as at 31 March 2021
| Notes 2021 Unrestricted Funds £ |
2020 Unrestricted Funds £ |
|---|---|
| Fixed assets Investments 7 630,881 |
614,968 |
| 630,881 | 614,968 |
| Current assets Debtors: amounts falling due within one year 8 0 Cash at bank and in hand 23,761 |
245 16,615 |
| 23,761 | 16,860 |
| Current Liabilities | |
| Creditors: amounts falling due within one year 9 716 |
3,924 |
| Net current assets 23,045 |
12,936 |
| Net assets 653,925 |
627,904 |
| The Funds of the Charity: Unrestricted Funds 10 653,925 |
627,904 |
| Total Charity funds 653,925 |
627,904 |
The financial were approved by the Trustees on 19[th] July 2021 and signed on their behalf by:
Derek Havard
Trustee:
Date: 21st January 2022
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Notes to the financial statements for the year ended 31[st] March 2021
1 Principal accounting policies
Basis of accounting
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 Standards applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic (FRS 102) and Charity Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Incoming Resources
All income received is accounted for on a receivable basis and has been classified under the appropriate categories. The income from the Roger Edwards Educational Trust is an estimate of the income to be received for the year.
Grants payable
Grants payable are accounted for in full as liabilities of the Charity when approved by the Trustees and accepted by the beneficiaries.
Management and administration
Monmouthshire County Council administer the Trust Fund on behalf of the Trustees. Management and administration costs include expenditure on administration of the Charity and compliance with constitutional and statutory requirements, and an appropriate apportionment of support service recharges and overhead apportionments. The basis of the apportionment is a fixed fee agreed with the Trustees of £200 per year.
Debtors/ Creditors
Where revenue and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected.
Irrecoverable VAT
Any irrecoverable VAT is charged to the statement of financial activities, or capitalised as part of the cost of the related asset, where appropriate.
Recognition of liabilities
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
Fund accounting
General funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Investment income and gains are allocated to the appropriate fund.
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
Investments
Investments are included at market value at the balance sheet date. Any realised and unrealised gains and losses on revaluation or disposals are combined in the statement of financial activities.
Assumptions made about the future and other major sources of estimation uncertainty
The Statement of Accounts contains estimated figures that are based on assumptions made by the Trust about the future or that are otherwise uncertain. Estimates have been made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be different from the assumptions and estimates.
The items in the Trust’s Balance Sheet at 31st March 2020 for which there is a significant risk of adjustment in the forthcoming financial year are as follows:
The revaluation of investment property and property funds
Changes in the valuation assumptions used, together with significant changes in rental growth could affect (increase or decrease) the fair value of property-based investments. Indicative net asset statements for property funds are subject to uncertainty at the reporting date and the valuation for pooled property funds and investment property is less reliable than usual. As the investments are held on a long-term strategy basis, the fund does not foresee any long-term negative effect in the generation of future income streams.
Transition to FRS 102
The opening fund position at the date of transition has not been restated and no subsequent restatement of items has been required in making the transition to FRS 102. The transition date was 1 April 2016.
Cash flow statement
The Charity has taken exemption from preparing a cash flow under Charities SORP FRS 102 Update Bulletin 1.
2 Investment income
| 2021 £ |
2020 £ |
|---|---|
| Interest on cash balances 181 Interest on Investments 26,329 |
87 26,421 |
| 26,510 | 26,508 |
3 Expenditure on Charitable Activities
| 3 Expenditure on Charitable Activities |
|
|---|---|
2021 £ |
2020 £ |
| Grants payable 14,678 Management & administration 1,723 |
26,517 2,546 |
| 16,401 | 29,063 |
Grants payable comprise numerous payments to individual students in respect of full time and part-time courses attended. It is not possible to provide further details due to restrictions of confidentiality.
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
4 Governance Costs
| 4 Governance Costs |
|
|---|---|
| 2021 £ |
2020 £ |
| Net incoming resources is stated after charging: Independent Examiner’s remuneration 1,458 |
1,762 |
| 1,458 | 1,762 |
No indemnity insurance for Trustees liability has been purchased by the Charity. Though no specific indemnity insurance has been purchased by the Charity, the Fund is covered by Monmouthshire County Council’s fidelity guarantee insurance. Insurance covers financial losses incurred as a result of fraudulent acts conducted by Authority employees but does not cover the Trustees for any wrong decisions that may have been made. Governance costs have decreased during the year as a result of the Public Audit Wales Act and in particular the duty placed on the Wales Audit Office to ensure full cost recovery in its audit fees. The audit fee is included in the management and administration spend as per note 3.
5 Gains and losses on revaluation and disposal of investment assets
| Market Value | Market Value | Gain/(Loss) | |
|---|---|---|---|
| 2020 | 2021 | ||
| £ | £ | £ | |
| Charibond | 235,745 | 235,269 | (476) |
| OEIC | 159,116 | 177,442 | 18,326 |
| COIF | 220,107 | 218,170 | (1,937) |
| Total | 614,968 | 630,881 | 15,912 |
6 Taxation
The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.
The Charity falls with Monmouthshire County Council regulations for VAT, and therefore any liability is accounted for within Monmouthshire County Council.
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
7 Fixed asset investments
| 7 Fixed asset investments |
|
|---|---|
| Total | |
| £ | |
| Valuation at 1 April 2020 | 614,968 |
| Purchase | |
| Net revaluation gain | 15,912 |
| Valuation at 31 March 2021 | 630,881 |
Fixed asset investments solely consist of the quoted investments. All investments are stated at their market value at 31st March 2021. The historical cost of the investments at 31st March 2020 was £639,000. All of the Charity’s investments are quoted in the UK. The details of these are disclosed in the table below, being Charibond, COIF and OEIC Fund.
Investments with a market value greater than 5% of the total portfolio market value at 31st March 2021 are as follows:
| follows: | |
|---|---|
| £ | % |
| COIF 218,170 Charibond 235,269 OEIC Fund 177,442 |
34,6% 37.3% 28.1% |
The percentage shown above is the percentage of the total portfolio market value as at 31[st] March 2021.
8 Debtors
| 8 Debtors |
||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Amounts falling due within one year | ||
| HM Revenue and Customs | 0 245 | |
| 0 245 |
9 Creditors
| 2021 | 2020 |
|---|---|
| £ | £ |
Amounts falling due within one year
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Monmouthshire Farm School Endowment Trust Fund Annual report for the year ended 31st March 2021
| Accruals and deferred income | 716 | 3,924 |
|---|---|---|
| 716 | 3,924 |
The amounts owed relate to audit fees and payments to Monmouthshire County Council to administer the trust.
10 Unrestricted Funds
| Balance 1 April 2020 Incoming resources Resources Expended Investment Gain/(Loss) Balance 31 March 2021 £ £ £ £ £ |
Balance 1 April 2020 Incoming resources Resources Expended Investment Gain/(Loss) Balance 31 March 2021 £ £ £ £ £ |
|---|---|
| Permanent endowed funds 627,904 26,510 16,401 15,912 |
653,925 |
11 Related party transactions
No remuneration directly or indirectly out of the funds of the Charity was paid or payable for the year to any Trustees. Payments have been made to Monmouthshire County Council respect of management and administration expenses.
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