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2022-04-05-accounts

Charity No. 526206

The Harris Charity

Financial Statements

For The Year Ended

5 April 2022

THE HARRIS CHARITY

CONTENTS

Page
Charity Details 1
Trustees report 2
Independent examiner’s report 5
Statement of financial activities 6
Balance sheet 7
Notes to the accounts 8

THE HARRIS CHARITY

CHARITY DETAILS

Trustees: E J Booth CBE DL LLD - (Chairman)
P R Metcalf MBE FCA DChA - (Vice Chairman)
Dr A W Andrews
Mrs J Coulston–Herrmann BA Hons M.Ed
Mrs N M Fielden
Rev P Hamborg
S W J Huck LLB
K G Mellalieu
T J Scott FCSI
S B R Smith
Honorary Vice President W S Huck
Secretary D M Ingram FCA
Registered Address Richard House
9 Winckley Square
Preston
PR1 3HP
Charity Number 526206
Independent Examiner A Mills FCA MAAT
Chartered Accountant
James Todd & Co (NW) Ltd
Greenbank House
141 Adelphi Street
Preston
PR1 7BH
Investment Advisers Brown Shipley
U K Authorised Private Bank
3 Hardman Street
Spinningfields
Manchester
M3 3HF
Endowment Fund Incorporates Permanent Endowments from
the following charities:
Jacson Memorial Fund
Jacson Special Bequest
Victor Gatty Prize Fund
Rogerson Scholarship Trust
Lancashire Council for Voluntary Youth Service

Page 1

TRUSTEES’ REPORT

THE HARRIS CHARITY

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees present their report and financial statements of the charity for the year ended 5 April 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’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 published in October 2019.

Constitution, objectives and activities for the public benefit

The charity, which was originally known as “The Harris Orphanage” regulated by a scheme of the High Court of Justice of 23 January 1883, was re-organised in 1985 following the disposal of the Harris Orphanage premises in Garstang Road, Preston, to the Lancashire Polytechnic (now renamed University of Central Lancashire).

The proceeds of sale together with previously held investments have resulted in a substantial endowment which has been invested for the future benefit of young people under the age of twenty-five years resident in the County of Lancashire, with preference given to persons living in the City of Preston (formerly the Borough of Preston).

The Harris Charity is a registered charity governed by a scheme of arrangement dated 8 August 1985 approved by the Charity Commissioners. The Trustees’ powers of investment are determined by the Trustee Act 2000.

Financial assistance is given to relieve hardship or distress, for promoting training and education and to assist in the provision of facilities for recreation and leisure activities.

The trustees generally meet on a quarterly basis to address the business of the charity. The secretary handles the day to day running of the charity from the registered office.

Trustees and appointment of new trustees

The trustees who have served during the year and since the year end are set out on page 1 and are appointed in accordance with the trust scheme.

Trustees are appointed for five years by resolution of the body of trustees passed at a special meeting of which not less than twenty-one days’ notice has been given. The trustees look to appoint new trustees with expertise and knowledge and who have an involvement with the care of children and activities for which grants are sought. Any Trustee who is absent from all meetings of the trustees during a period of two consecutive years is considered to have determined their trusteeship.

The trustees, Mr E J Booth, Mrs J Coulston – Herrmann, Rev P Hamborg, Mr K Mellalieu and Mr S B R Smith were re-elected during the year.

Investment policy

An Investment Sub-Committee meets quarterly to review the investment portfolio of the charity and to discuss any proposals made by the investment advisers, Brown Shipley.

The trustees agree with the investment adviser that a realistic income target in the present circumstances is £100,000 per annum rather than the £120,000 figure that has been previously requested with an anticipation that the new income target will not be achieved in the short term as dividends continue to recover. The trustees continue to take a long term view on the investment portfolio and will keep the target figure under review as market conditions change.

Page 2

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

THE HARRIS CHARITY

Investment policy (continued)

The current Brown Shipley mandate in measuring investment performance is ‘Growth’ using the MSCI PIMFA Private Investor Growth Index as a benchmark. Investments are avoided where their products are harmful to children and young people who the charity serves. The policy is to generate income for the making of grants whilst maintaining capital growth to protect the value of the investments in real terms.

Grant-making policy

The charity invites applications from individuals under the age of 25 years and organisations which support persons under the age of 25 years, twice yearly in March and September. Applicants are invited to submit a summary of their proposals on a specific form. Each application is perused and grants are awarded at the trustees discretion. Each applicant is informed as to whether or not a grant has been awarded and if successful is asked to provide the Trustees with the relevant documents/invoices in order that funds may be released.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grantmaking policy for the year. Financial assistance is given to relieve hardship or distress, for promoting training and education and to assist in the provision of facilities for recreation and leisure activities for those under the age of twenty five years resident in the county of Lancashire, with preference given to persons living in the city of Preston. An analysis of the assistance provided is shown in note 5.

Review of activities – achievements and performance

During the year 23 grants awards (2021:39) have been made by the charity totalling £52,178 (2021:£197,889). Grants amounting to £190,696 (2021:£198,675) had been approved but not paid at the year end.

The Harris Charity continues to explore ways to provide help to young people in the Lancashire area who are living in challenged circumstances. It works closely with two local charities, Preston Relief in Need and Guild Initiative for Furniture Trust (Gift 92) in supporting young people and families setting up home.

Financial review

The charity’s income during the year amounted to £106,549 (2021:£84,365).

Total resources expended during the year amounted to £89,979 (2021:£224,626). Grants payable during the year totalled £44,365 (2021:£182,635). The overall result was an increase in the value of the unrestricted fund of £31,207 (2021:decrease of £108,098) to £349,180 (2021:£317,973) at 5 April 2022 after deducting (2021:adding) the unrealised loss of £9,306 (2021:gain of £10,435) on current asset investments held.

During the year the value of the endowment fund increased by £222,748 (2021:increase of £904,893) to £4,280,022 (2021:£4,057,274) at 5 April 2022. This occurred as a result of realised gains of £37,133 (2021: gains of £29,148) and unrealised gains of £209,558 (2021:gains of £897,473) and after deducting investment management costs of £23,943 (2021:£21,728).

Page 3

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

THE HARRIS CHARITY

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are free reserves of the charity, at a level that provides sufficient funds to cover grants payable and administration costs and to respond to emergency applications for grants which arise from time to time. The endowment fund is invested in order to generate the income necessary to provide for the grants that are awarded.

The trustees confirm that the free reserves of the charity at the year end were £539,877 (2021: £516,648).

This report was approved by the Trustees on 18 August 2022 and signed on its behalf:

E J Booth CBE DL LLD

Chairman of the Board of Trustees

Page 4

THE HARRIS CHARITY

INDEPENDENT EXAMINER’S REPORT TO THE

TRUSTEES OF THE HARRIS CHARITY

I report to the trustees on my examination of the accounts of The Harris Charity for the year ended 5 April 2022 set out on pages 6 to 16.

Responsibilities and basis of report

As the charity trustees of The Harris Charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and 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

I have completed my examination. I confirm that no material 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 accounts to be reached.

A Mills FCA MAAT Chartered Accountant James Todd & Co (NW) Ltd Greenbank House 141 Adelphi Street Preston PR1 7BH

Dated: 18 August 2022

Page 5

THE HARRIS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2022

Note
Donations and legacies
2
Investments
3
Total incoming resources
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Realised gains/(losses) on investments
Unrealised gains/(losses) on investments
6
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Income and endowments from:
Net income/(expenditure) before
gains/(losses) on investments
Unrestricted
funds
£
2,000
104,549
Endowment
funds
£
-
-
Total
Total
2022
2021
as restated
£
£
2,000
-
104,549
84,365
106,549
84,365
25,360
23,211
64,619
201,415
89,979
224,626
16,570
(140,261)
37,133
29,148
200,252
907,908
253,955
796,795
4,375,247
3,578,452
4,629,202
4,375,247
106,549 -
1,417
64,619
23,943
-
66,036 23,943
40,513
-
(9,306)
(23,943)
37,133
209,558
31,207
317,973
222,748
4,057,274
349,180 4,280,022

Page 6

THE HARRIS CHARITY

BALANCE SHEET

AS AT 5 APRIL 2022

Unrestricted
funds
Note
£
Investments
6
-
Total fixed assets
-
Current assets
Debtors
7
20,321
Investments
8
245,004
Cash at bank and in hand
285,351
Total current assets
550,676
Liabilities
Creditors:amounts falling due within one year
9
(201,496)
Net current assets
349,180
Net assets
349,180
Charity Funds
General fund
349,180
Endowment funds
-
Total charity funds
10,11
349,180
Fixed assets
Unrestricted funds:
Unrestricted
funds
£
-
Endowment
funds
£
4,202,333
Total
Total
2022
2021
as restated
£
£
4,202,333
4,071,365
4,202,333
4,071,365
20,321
18,712
245,004
254,310
363,040
254,726
628,365
527,748
(201,496)
(223,866)
426,869
303,882
4,629,202
4,375,247
349,180
317,973
4,280,022
4,057,274
4,629,202
4,375,247
-
20,321
245,004
285,351
4,202,333
-
-
77,689
550,676
(201,496)
77,689
-
349,180 77,689
349,180 4,280,022
349,180
-
-
4,280,022
4,280,022

Approved by the Board of Trustees on 18 August 2022 and signed on its behalf by:

E J Booth CBE DL LLD – Chairman of Trustees P R Metcalf MBE FCA DChA – Vice Chairman

D M Ingram FCA - Secretary

The notes on pages 8 to 16 form part of these financial statements.

Page 7

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Basis of preparation

The Harris Charity is a charity registered in England and Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 2 of the trustees report.

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and 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 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainty exists that casts doubt on the charity’s’ ability to continue to operate. The trustees have considered the level of funds held and the expected level of income and expenditure for the twelve months from the date of the authorising of these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The trustees expect that the Covid -19 virus will have some impact for the foreseeable future but they continue to take a long term view and will monitor the position of investments in conjunction with the investment adviser.

Income recognition

All income is recognised once the charity has entitlement to receipt and it is probable that the income will be received and the amount of income receivable can be measured reliably. All income is included in the Statement of Financial Activities.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds then the income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Investment income is recognised in the period in which the charity is entitled to receipt.

Page 8

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies (continued)

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been allocated to the fund to which it relates. Expenditure is recognised where there is a legal or constructive obligation to make payment, it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity is not registered for VAT, consequently, input VAT incurred is charged against the expenditure heading to which it relates.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Allocation of support and governance costs

Support costs are those costs incurred that assist the work of the charity but do not directly represent charitable activities. They are in sustained support of expenditure on the objects of the charity.

Governance costs are those costs relating to the public accountability of the charity and its compliance with regulations and good charity practices. The trustees have decided that all such costs be met from unrestricted funds.

Investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing quoted mid market price as quoted on the London Stock Exchange and, in the case of foreign investments, on their respective stock exchanges.

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between cost, if acquired during the year, their fair value at the previous year end and their fair value at the current year end.

Unrestricted fund

The unrestricted fund is a fund which is available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which has not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The charity currently has no designated funds.

Endowment fund

The endowment fund is a fund representing those assets which must be held permanently by the charity, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund.

Page 9

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Donations and legacies – unrestricted

Donations
Investment - unrestricted
Investment dividends and interest
Bank interest
Raising funds -
Investment management costs
2022
2021
£
£
2,000
-
2,000
-
2022
2021
£
£
104,539
84,323
10
42
104,549
84,365
2022
2021
£
£
25,360
23,211
25,360
23,211

.

£23,943 (2021: £21,728) of expenditure is allocated to the endowment fund and £1,417 (2021: £1,483) to unrestricted.

Page 10

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Charitable activities - unrestricted

Grants expenditure:
Grant related support costs:
Secretarial fees
Information commissioner's charges
Website and internet charges
Accountancy fees
Independent examiners fees - governance
Grants (see note 5b)
Note 5b
Balance payable brought forward
Previously awarded grants released
(7,813)
New grants awarded in the year
52,178
Net grant cost in the year (note 5c)
Grants paid in the year
Balance payable carried forward (note 9)
(7,813)
52,178
2022
£
198,675
44,365
2022
2021
£
£
as restated
44,365
182,635
44,365
182,635
13,900
13,670
40
40
1,212
170
2,600
2,400
2,502
2,500
64,619
201,415
2021
£
as restated
60,733
(15,254)
197,889
182,635
243,368
(44,693)
198,675
243,040
(52,344)
190,696

Page 11

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

5 Charitable activities (continued)

Note 5c
Charitable organisations
Educational
Recreational – scouts, youth clubs etc
Recreational – sports, playgroups etc
Individuals
Previously awarded grants released
Institutional
Preston
Lancashire
5 April
5 April
Area
Area
2022
2021
£
£
£
£
as restated
1,285
16,858
18,143
6,213
10,000
-
10,000
155,000
-
3,000
3,000
4,561
6,500
6,560
13,060
18,022
1,322
6,653
7,975
14,093
(2,843)
(4,970)
(7,813)
(15,254)
16,264
28,101
44,365
182,635

Fixed asset investments

Market value at 5 April 2021
Additions
Disposal proceeds
Net investment (losses)/gains
Market value at 5 April 2022
Historical cost at 5 April 2022
Investments at fair value comprised:
Equities
Bonds and gilts
Hedge and structured funds
Property funds
2022
2021
£
£
4,071,365
3,042,770
361,050
348,699
(439,640)
(217,577)
209,558
897,473
4,202,333
4,071,365
3,449,882
3,507,591
2022
2021
£
£
3,608,588
3,418,799
421,550
439,735
79,475
132,741
92,720
80,090
4,202,333
4,071,365

Page 12

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Debtors

Debtors
Accrued Income
Loans
2022
2021
£
£
6,996
5,087
13,325
13,625
20,321
18,712

The loans are interest free and will be repaid or reviewed before the 25[th] birthday of the recipient

Current asset investments

Market value at 5 April 2021
Additions
Disposal proceeds
Net investment (losses)/gains
Market value at 5 April 2022
Historical cost at 5 April 2022
Investments at fair value comprised:
Cash funds
2022
2021
£
£
254,310
-
-
243,875
-
-
(9,306)
10,435
245,004
254,310
250,000
250,000
2022
2021
£
£
245,004
254,310
245,004
254,310

Creditors – amounts falling due within one year

Creditors and accrued charges
Grants payable (note 5b)
2022
2021
£
£
as restated
10,800
25,191
190,696
198,675
201,496
223,866

Page 13

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Analysis of charitable funds

The unrestricted fund is available for use at the direction of the trustees in furtherance of the general objectives of the charity and which has not been designated for other purposes.

The investment fund is established from previously owned investments together with the proceeds from the disposal of the Harris Orphanage premises in 1985. The fund is kept as a permanent endowment with investments being held for their capital appreciation and also to generate revenue for the unrestricted fund.

Balance
at 6 April
2021
Income
Expenditure
£
£
£
as restated
Unrestricted
funds:
317,973
106,549
(66,036)
Endowment
funds:
4,057,274
-
(23,943)
4,375,247
106,549
(89,979)
Analysis of charitiable funds - previous year
Balance
at 6 April
2020
Income
Expenditure
£
£
£
as restated
Unrestricted
funds:
426,071
84,365
(202,898)
Endowment
funds:
3,152,381
-
(21,728)
3,578,452
84,365
(224,626)
Balance
at 6 April
2021
£
as restated

317,973
4,057,274
Income
£
106,549
-
Expenditure
£
(66,036)
(23,943)
Transfers
£
-
-
Balance
Gains and
at 5 April
losses
2022
£
£
(9,306)
349,180
246,691
4,280,022
237,385
4,629,202
Balance
Gains and
at 5 April
losses
2021
£
£
10,435
317,973
926,621
4,057,274
937,056
4,375,247
4,375,247 106,549 (89,979) -
Transfers
£
-
-
84,365 (224,626) -
3,578,452

Page 14

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Analysis of net assets between funds – previous year

Investments
Current assets
Creditors falling due within one year
Fund balances at 5 April 2021 are
represented by:
At
Unrestricted Endowment
5 April
funds
funds
2021
£
£
£
-
4,071,365
4,071,365
527,748
-
527,748
(209,775)
(14,091)
(223,866)
317,973
4,057,274
4,375,247

Related party transactions

Fees of £16,070 (2021:£17,150) for secretarial and accountancy services were payable to MHA Moore & Smalley LLP, Chartered Accountants, of which the secretary, Mr D M Ingram was a consultant during the year. The amount shown as outstanding at the year end was £8,600 (2021:£8,670).

Mr P R Metcalf is a trustee of the charities, Preston Relief in Need and the Guild Initiative for Furniture Trust (Gift92), both charities supporting persons under the age of 25 years. Due to the effects of the Covid -19 pandemic, Preston Relief in Need suspended its grant support consequently, no grants were awarded to them by the Harris Charity during the year (2021:£nil). Gift 92 was unaffected by the pandemic and the Harris Charity reimbursed them £602 (2021:£1,754) for appliances supplied by them to applicants who were grant aided by the Harris Charity.

During the year E.H. Booth & Co Limited donated £2,000 to The Harris Charity. One of the trustees E J Booth is a director of E.H. Booth & Co Limited.

Trustees' remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2021: £nil).

The trustees did not have any expenses reimbursed during the year (2021: £nil).

Page 15

THE HARRIS CHARITY

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Prior year adjustment

Funds as previously reported
Adjustments arising:
Recognition of grant creditors
Funds as restated
Net income as previously reported
Adjustments arising:
Grants awarded in the year ended 5/4/21
Previously awarded grants released
Net income as restated
Reconciliation of funds
Reconciliation of new income for the
previous financial period
6 April
5 April
2020
2021
£
£
3,639,185
4,573,922
(60,733)
(198,675)
6 April
5 April
2020
2021
£
£
3,639,185
4,573,922
(60,733)
(198,675)
3,578,452 4,375,247
2021
£
934,737
(153,196)
15,254
796,795

Notes to restatement

An adjustment has been made to accrue grants awarded in the the financial year and not yet paid by the year end. There are no conditions to prevent recognition.

Page 16