OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

JOHN MARTIN’S CHARITY

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Registered Charity Number 527473

JOHN MARTIN'S CHARITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Report of the Trustees
Aims, objectives and activities for the public benefit 1
Achievements and performance 3
Financial review 6
Investment policy and performance 6
Risk management 7
Reserves policy 8
Plans for the future and Coronavirus 9
Structure, governance and management 10
Reference and administrative details 11
Trustees’ responsibilities in relation to the financial 12
statements
Report of the Independent Auditors 13
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and financial statements of the Charity for the year ended 31[st] March 2021.

In preparing the annual report and financial statements of the Charity, the Trustees have:

AIMS, OBJECTIVES AND ACTIVITIES FOR PUBLIC BENEFIT

Aims

Under the terms of John Martin’s original Will and a Scheme approved by the Charity Commission, the overall aim of the Charity is to benefit the residents of the town and neighbourhood of Evesham, Worcestershire. This is achieved through the implementation of four main aims:

The Trustees have had due regard for the Charity Commission’s general guidance on public benefit and its three supplementary guides for the Advancement of Religion, Education and the Relief of Poverty. They are satisfied that the current aims, objectives and activities are for the public benefit and are comparable with the updated descriptions of charitable purposes detailed in the Charities Act 2011.

The objectives shown below are shaped by these four aims and they are detailed within the above mentioned Scheme.

Objectives

Religious support

To assist the Vicar in Hampton and Bengeworth and the three Parochial Church Councils within the town of Evesham.

Relief in need

To assist generally or individually, persons resident within the town of Evesham who are in conditions of need, hardship and distress.

Promotion of education

To promote education to persons residing within the town of Evesham and to provide benefits to schools in the town.

Health and other charitable purposes

The Trustees have wide ranging authority within the Scheme to provide such charitable purposes as they see fit, for either assisting beneficiaries within the town of Evesham or within the immediate neighbourhood. The Trustees mainly use this ability to support people with chronic and other related health issues across a wider beneficial area. This area is detailed on the Charity’s website.

Page 1

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Activities

The Trustees look to achieve the above objectives in a number of different ways and the following activities are specifically detailed within the Scheme:

After allowing for the Charity’s normal operating costs in respect of its administration and management, the total allocation between the above beneficiaries is not allowed to exceed 21% of the remaining income. This percentage has not been exceeded.

Other activities currently detailed include the provision of items and services calculated to reduce need, hardship or distress, either directly to individuals or to organisations that will provide such support. Local schools are assisted with funding for special educational benefits over and above those supplied by the Local Education Authority and individual students, aged from 4 to 65, are supported through the provision of grants to assist them in their education. People with chronic health and health related issues are also assisted with items or services which will either aid or help to alleviate their condition.

The Charity does not use volunteers for any of its activities.

Grant Making Policy

In providing benefits to Church of England Clergy, the Charity helps to ensure that pastoral care is available to those living within the specific parishes and by assisting the local Parochial Church Councils, that the churches’ mission and buildings are maintained. These are both in line with the benefactor’s original aims.

Assistance is not limited to the Church of England; other Christian groups are able to apply and some of these have been supported when their requests fall within the Charity’s “relief in need” criteria.

Within the terms of the Scheme, the Trustees have the authority to make such policies as they see fit in order to meet the specific objectives. These policies are reviewed on a regular basis to ensure that grants awarded still meet these objectives. They are also adjusted to take account of new legislation, best practice, grant trends or other matters. The Office assists in this process by making recommendations although the final decision is a matter for the Trustees alone.

The Charity invites applications through a variety of methods including; public notices, advertisements, leaflets, the website and via other agencies. Upon receipt, an application is checked against the specific criteria for that type of grant request and the applicant is interviewed. In some circumstances a home visit may also be undertaken. Once the relevant information has been obtained the application is detailed on an agenda for consideration by the Trustees. Applications falling outside the set criteria are rejected unless there are mitigating circumstances that warrant further consideration. Likewise, grant assistance is tempered if an applicant becomes over reliant on the Charity. This is in order to prevent any detriment or harm that the over reliance could cause, such as the loss of general community assistance for organisations or the cancellation of state benefits for individuals.

Page 2

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

With the exception of the Pensioners’ Winter Heating Award and the majority of Student Grants, applications can be made at any time throughout the year. The time restriction on Student Grants is to ensure that the overall budget allocation is divided fairly between all of the applicants.

In setting out their Policy the Trustees ensure that the public’s opportunity to benefit from charitable assistance is not unreasonably restricted. The town of Evesham is deemed to be a sufficiently wide area in which to distribute the majority of the funds, with a larger beneficial area being available for health related grants. Applications are accepted from anyone living within the beneficial area regardless of their religious, ethnic or national background, provided that they meet the specific criteria for the type of grant being requested. This ensures that the grants, where approved, relate directly to the Charity’s aims and objectives.

Financial assessments and specific grant criteria help the Trustees target assistance at applicants who fall within the stated aims; for instance, confirmation that a student is attending the agreed course is required before their grant is paid and evidence that state benefits have been applied for is required for other grants. Some grants are specifically targeted at those on a low income or who are in poverty, whereas others are awarded to recognise an individual’s achievement. In addition, whilst the Charity is always keen to use local suppliers for goods and services, specific contracts are not generally agreed to ensure that no one supplier is favoured over another. Any private benefit received either by the applicant or supplier is therefore incidental to the grant. The Charity does not charge fees for any of its services.

ACHIEVEMENTS AND PERFORMANCE

----- Start of picture text -----
Charitable Activities: How our funds were spent
Relief in Need
40%
Education
39%
Religious Support Health & Other Grants
12% 9%
----- End of picture text -----

Religious support

The Charity has continued to meet its objectives under the Scheme in supporting the nominated Vicar and Parochial Church Councils (P.C.C). The basic funding allocations are agreed at the budget meeting each year and then claims for expenditure are made against set criteria up to the agreed allocation. The three P.C.C’s each receive the same amount towards their general expenditure, with an extra one-off allocation being made every third year for special projects, such as lighting, furnishings, building repairs. The amounts are detailed in the attached financial statements.

Page 3

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Relief in need

The Charity approved 614 (2019/20 – 731) applications from individuals, distributing a total of £79,332 (£124,616). These applications were financially assessed in accordance with the Charity’s guidelines.

The grants took a variety of forms, for example; 20 cookers were provided to households who could not afford replacement facilities, 9 fridges and fridge freezers were provided to assist with food storage, 11 grants helped ease pressure on household budgets, 29 washing machines and 6 disability aids were purchased. When considering medical equipment, items are only provided when they are not normally available via the NHS and suitable advice and guidance has been received from appropriate medical practitioners.

Part of the funding under this objective was used to assist with the purchase of 41 (69) school uniforms and grants totalling £4,755 (£7,443) were approved. Uniform grants are considered twice at First and High School level and once at Middle School. Pupils requiring course specific clothing at College may also apply.

Within this objective ‘emergency grants’ were provided to applicants who, due to a variety of circumstances such as homelessness, unemployment, low income or debt issues, were considered to have an immediate need. 254 (537) requests were received with 215 (443) being approved. The grants normally covered a two-week period and consisted of food vouchers and a small amount of cash to cover pre-payment utility meters. The total approvals amounted to £14,680 (£27,400) and assisted 320 individuals when family members were also taken into account. However, the final expenditure was reduced to £12,080 (£24,873) because on some occasions an applicant’s circumstances changed prior to the full grant being paid, for instance, when a benefit payment was received earlier than originally expected.

The Trustees continued with the Pensioners’ Winter Heating Award to assist those on a limited income. The award was reduced by £70 to £130 due to the Charity’s reduced income. 288 (292) applicants were assisted at a cost of £37,310 (£54,800).

Applicants who qualified for the Heating Award are normally invited on a day trip to Weston-Super-Mare in June. Unfortunately due to COVID restrictions, the trips could not take place this year.

The Charity continues to use the services of businesses and other charities in the town to provide benefits to many applicants and their continuing co-operation is much appreciated by Trustees and staff. During the last year the Charity directed around 11 applicants to ‘Caring Hands in the Vale’ at the Vale of Evesham Christian Centre where they were able to collect a food parcel or have a hot meal. The Charity also referred 2 applicants to the Housing Department at Wychavon District Council and 5 applicants to other local agencies.

National charities have also been approached when it was found that longer term assistance was more appropriate. 45 single women over the age of 60 were referred in this manner and grants totalling £20,280 were obtained from this source to ease their household budgets.

A wide variety of local organisations have been supported and £68,000 (£66,692) was awarded to 12 (16) groups. In order to be considered, groups applying for assistance must provide benefit to local residents consistent with the aims and objectives of the Charity. The Trustees consider that grants provided to these organisations are an efficient means of assisting a large number of local people.

Organisation grants are detailed in the financial accounts. In particular, the Trustees provided a grant of £12,000 to the Evesham Volunteer Centre to help with their general running costs. The Worcester CAB/WHABAC run a housing project within Evesham and also provide support to homeless people moving into private rented accommodation and they received £8,850 to help fund this work. Yellow Scarf provides support to the local migrant population and a grant of £7,000 was issued in respect of advice sessions for the EU Settled Status scheme. Wallace House was supported in a variety of ways, £5,000 was provided for their Friday Youth Club, £1,000 for food parcels and £650 towards an internet access project for children and families.

Page 4

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Like many organisations that provide support work, Ourside Youth Centre actively contacted their users throughout the lock-down periods and the Board were pleased to provide funding of £17,000 over a three year period to support their mental health worker project.

In agreeing to longer term funding the Trustees aim to assist with the stability of services. However, in accordance with good practice, groups do have to comply with terms and conditions that are set out at the start of the grant process. This ensures that the Charity’s funds are being used correctly to deliver agreed services throughout the project. Grants can be reduced or withheld if agreed conditions have not been met.

In previous years, the Trustees have assisted other local charitable organisations by providing them with temporary meeting rooms without charge, together with the use of other office resources. Due to the COVID pandemic, this requirement largely ceased and the usage reduced to around 91 hours at an estimated value of £910.

Promotion of education

Just under half of the Charity’s expenditure is allocated towards educational awards for schools, colleges and individual students.

The local schools and college received grants totalling £30,701 (£64,943) to support special education needs and the School Governors have to apply each year with details of their proposed expenditure. The grants assist schools to purchase additional resources, such as books, equipment or teaching hours. Within the above amount, St Andrew's Church of England First School in Hampton receives an enhanced payment as benefits to that School are specifically mentioned within the Scheme that governs the Charity.

Student Grants - Individual students attending Degree and other courses throughout the country are able to apply for a grant to assist with their living and course expenses. When the Charity’s income expanded in recent years the grant also increased; the full grant moving from £884 in 2011/12 up to £1,160 by 2019/20. Unfortunately, as the Charity’s income contracted this year, the full grant had to be reduced to £750. However, the Trustees were able to remove the differential between students who live at home and those in halls of residence and both cohorts received the same award level.

Overall, grants totalling £164,520 (£255,635) were issued to 226 (249) students. 217 students received the full grant, 9 received a lower amount based on their type of course or financial circumstances.

The Trustees approved 14 (51) Miscellaneous Education Grants towards extra-curricular activities such as music, arts, sports, educational visits and club activities at a cost of £2,400 (£6,353). The majority of the activities were subsequently cancelled or postponed, including some pre-paid trips from the previous year. Following receipt of these refunds, the final cost was nil.

Health and other charitable purposes

Although the Trustees set a prudent budget each year, based upon the experience of previous applications and the current objectives, surplus funds will occasionally arise. These funds then become available to support the Trustees’ health objective. Whilst the funding for health related issues for Evesham residents is included under the general “Relief in Need” detailed on page 4, a further £3,938 (£4,728) was provided on grants to 9 (17) applicants who lived in the Charity’s wider beneficial area.

Organisations who provide treatment and support to residents from this area can also apply for a grant. £30,000 was awarded to St Richard’s Hospice to assist with the cost of providing specialist nurses who support residents in their own homes and £11,700 to Acorns Children’s Hospice as they also supported local residents during the year.

Page 5

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

General matters

Across all of the objectives, a total of 143 (195) applications were either withdrawn prior to consideration at a Trustees’ Meeting or rejected because they failed to meet set financial or other criteria. Applicants continue to be referred to other agencies such as Citizens Advice, Job Centre Plus, Wychavon Housing or Rooftop Housing when the possibility of additional or alternative assistance was identified.

FINANCIAL REVIEW

The Trustees’ Report for 31 March 2020 indicated that the Charity’s income was expected to fall in 2021 by some 40% due to the pandemic as a number of companies had either suspended or reduced their dividend payments. Whilst the investment income reduced from £832,201 in 2020 to £679,093 in 2021 the Trustees are pleased to report that this only amounted to an 18% fall.

The capital value of the investment portfolio also fell during the first two quarters of 2020 resulting in an unrealised loss of £2,241,839 as at 31 March 2020. The value has since recovered to show an unrealised gain of £3,660,518 over the year.

Investment Policy and Performance

The investments are currently held in a range of funds operated or monitored by the appointed Investment Managers, CCLA and Cazenove. Cazenove has delegated authority which allows them to move funds within their portfolio.

In accordance with good management the Trustees monitor the funds through a range of measures:

As reported in the 2016 Annual Report, following discussions at the annual investment review and in light of economic forecasts prevailing at that time, a revised Investment Policy was approved which took effect from 1 April 2016. The Policy was refined during the current year and currently includes:

The Charity is able to view portfolio values over a long time horizon and so the longer term performance objective was included in order to monitor the Policy’s overall effectiveness.

The following chart shows how the Charity’s combined portfolio has performed on a total return (income and capital) basis since June 2010, being the date that the investments were last moved between Investment Managers.

Page 6

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

(Source: Cazenove Capital and CCLA)

Despite the difficulties over the last year, the portfolio has performed well against the longer term indicators and remains in line with the revised benchmark. The income received from the investments during the year of £679,093 was also above the target of £583,000 and this has been achieved without unduly increasing the portfolio’s risk profile.

Risk Management

The Trustees have considered the major strategic, business and operational risks relevant to the Charity and have set out a Policy to manage those risks.

As virtually all of the Charity’s income is generated from investments, the Trustees consider that the risks to both the capital and income can be managed through the diversification of these investments. The funds are therefore divided between two Fund Managers and this method of managing the risk was upheld during comprehensive reviews of the investments in 2010 and 2016. The portfolio is also viewed in its entirety to ensure that the split between the various asset classes remains consistent with the Charity’s investment objective. This also ensures that the Charity is not overly exposed to any one particular area of the investment market.

The Trustees consider that the maintenance of a steady level of income is a main priority in order to ensure that grant programmes can be maintained. At the same time a balance is also struck to maintain the value of the investments for future generations. As such the Trustees are able to take a long term view regarding the endowment funds and accept that investment values will rise and fall over short time periods.

The effectiveness of this Policy is detailed in the following chart which, using a base line of 100, shows how the income stream has been maintained in a steady manner despite fluctuations in the valuation of the Charity’s balance sheet over the longer term. Whilst the Charity’s income fell during the year causing a reduction in some grant programs, the income is expected to recover over the next two years.

Page 7

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

In order to maintain and improve on the above strategy the portfolio is kept under review. In 2010 the investment managers were reduced from three to two and a third of the portfolio was transferred into new investments. This had the benefit of increasing the income during that year. A further re-alignment in 2013/14 provided a one-off increase in income and these additional funds were then used to supplement grant expenditure in 2014/15.

During the current year, part of the portfolio was repositioned to increase its exposure to overseas equities and investment transfers amounted to 21% of the initial portfolio valuation. These transactions created realised investment gains of £401,924 as detailed on page 26, Note 11.

Operational risk procedures and grant policies are also reconsidered on a regular basis to ensure that the combined needs of both the applicants and the Charity continue to be met.

The Trustees are satisfied that the required systems and procedures are in place and are being adhered to.

Reserves Policy

The Office monitors the level of reserves throughout the year and provides the Trustees with details of the Charity’s cash flow position. The Reserves Policy was subject to a full review in 2014/15 and amended to cover the following requirements:

General Fund - Given the grant-making nature of the Charity, the Trustees consider that it is prudent to maintain a reserve equal to the expected governance and support costs (less depreciation) as this will enable the Charity’s office to function and meet employment obligations. This reserve stood at £153,850 throughout the year and no adjustments were considered necessary.

Grant making reserve - The second requirement is to hold sufficient funds to allow the Charity to release general grants as they are approved and meet its commitments for the student and heating grants during the autumn and winter periods. Although the Charity’s income can be forecast, it is not received at a constant level throughout the year. It is therefore considered necessary to hold a reserve within the Restricted Income Fund of an amount equal to one quarter of the projected annual grants. This was set at £160,000 for 2020/21.

Page 8

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The balance in the Restricted Income Fund increased from £262,302 to £346,206 during the year as the Charity’s income was not as adversely affected by the pandemic as originally forecast and fewer grant requests were received. The reserve requirement was therefore maintained. The minimum level has been reduced to £140,000 for 2021/22 and the additional funds will therefore be available for health related grants and to subsidise general grant funding. In addition, in order to lessen the impact on the Charity’s reduced income on “Relief in Need” grant requests, for 2021/22 a further £25,000 has been placed into the Coronavirus Fund to ensure that vital support can still be provided.

As part of the Policy review it was decided to separate the value of the functional assets and any designated reserves from the General Fund and show these separately. This would enable the cash reserves to be more evident within the Financial Statements.

PLANS FOR THE FUTURE AND CORONAVIRUS

Prior to each financial year a budget is agreed which identifies the expected income together with key areas of expenditure. After allowing for support and governance costs the intention is to distribute the remaining income in accordance with the aims and objectives of the Charity.

The budget is based upon forecasts from the Office and Fund Managers and from the experience of previous years. It is then adjusted in line with known factors and any change of emphasis that the Trustees may wish to introduce in their grant making.

Coronavirus - Whilst the effect on the Charity’s income for 2019/20 was minimal as the lock-down procedures only occurred towards the end of March, the Charity’s operations during 2020/21 were more seriously affected. The Charity closed its Office on 23 March and re-opened on 11 May. During this time, the staff were not furloughed and were able to work from home. Grants were still being issued and applicants were directed towards the Government support schemes and other agencies. Additional financial support was provided to two local food banks as they were receiving an increased number of referrals. Grants to organisations that had been agreed earlier in the year were also reviewed; some grants that were subject to stage payments were subsequently released early in order to ensure that the organisations could continue to provide services to local residents.

During January to March 2021 the Office was closed again to general visitors and the staff worked on a rota basis with reduced hours to comply with government guidance. Throughout the year, dispensation provided by the Charity Commission was utilised to operate online systems for Trustee Meetings. This, together with revised working practices, ensured that the Charity could continue with its day to day operations and consider and provide support to local residents. The Charity also applied for and received some funding from the Government furlough scheme.

The Trustees and staff continue to review the support provided to the community of Evesham and seek to ensure that their work and policies reflect current needs. This review is achieved through regular meetings and contacts with other charities and support agencies to which referrals are often made. It has been noted that our own work can often be enhanced if other agencies can become involved and likewise, we are pleased to be able to support them by making joint grants. On many occasions the Charity has been constructive in obtaining monetary and practical assistance from other sources for the benefit of applicants. This is an area that the Charity will continue to develop to ensure that applicants can access the wide variety of help that is available from sources that are sometimes not widely known about.

The Trustees thank the Office staff for their work throughout the year and continued dedication to the Charity, particularly during the current pandemic when new working practices have had to be adopted.

Page 9

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity was created by the Will of John Martin of Hampton, Evesham, who died in 1714 and left his property in perpetuity for the benefit of local residents. Over the intervening years some of the property has been sold and the capital is now invested in order to generate the income which furthers John Martin’s original aims.

The Charity Commission approved a new Scheme on 17[th] March 1981 and this, together with amendments made on 28 February 1989, 17 July 1998, 19 November 1998, 8 July 1999, 13 December 2001, 13 February 2008, 22 January 2015 and 5 April 2018 sets out how the Charity is regulated.

The Scheme allows for up to thirteen Trustees and they are all drawn from the local community. The Vicar of the benefice of Bengeworth and Hampton with Sedgeberrow and Hinton on the Green is appointed Ex-Officio and serves whilst that position is held. Three Trustees are nominated, one by the Vicar detailed above and two by Evesham Town Council and they are appointed for three and four years respectively. The remaining Trustees are co-opted and their term of office is five years. All Trustees are eligible for re-appointment.

Following the Annual General Meeting in October, Mr Nigel Lamb decided to retire after serving on the Board for 35 years. Nigel had been an integral part of the Charity throughout that time having been Chairman since 1988 and the Board thanked him for his exemplary commitment to the Charity. In recognition of his long service a donation of £1,500 was made to Acorns Children’s Hospice and this is detailed in the Financial Statements.

The term of appointment for Mrs Gabrielle Falkiner ended in December. Gabrielle had served for three terms and the Board also expressed their thanks to her. She was presented with a gift in appreciation of her service. The Board were pleased to welcome Miss Sherraden Murphy as the Vicar of Hampton’s new nominee.

In accordance with the Scheme, Co-opted Trustees must have “special knowledge of the Parish of Evesham” and the Board normally appoints people to these positions following general advertisements and interviews. The Board also retains its ability to invite an individual to become a Trustee if it is felt that they possess a specific skill or knowledge that would benefit the Charity.

On appointment a Trustee signs a declaration of acceptance together with a statement of eligibility and completes an induction process which, in addition to meeting the other Trustees, consists of meetings with the Clerk and Office staff to discuss the grant process, the various policies and the Charity’s operating procedures. New Trustees also commit to a more formal governance training course during their first year.

A Trustees’ Manual is issued which includes a copy of the Charity Commission Scheme, Trustees’ Code of Conduct, Declaration of Interests Return, previous Annual Reports and Accounts, current policies and guidance notes from the Charity Commission. In accordance with that guidance, the Charity undertakes Disclosure and Barring Service checks on all Trustees and Staff.

The Board of Trustees normally meets once every three weeks to consider general business such as grant making, finance and policy matters. These Meetings moved to online methods during the Coronavirus pandemic to ensure that the Charity could continue to respond to grant requests. In addition to the Annual General Meeting, the Trustees also hold annual meetings to review the investments of the Charity and agree future strategy.

Sub-Committees, usually comprising of the Chair, Vice-Chair and three other Trustees, meet at various times in the year to discuss items that the Board see fit to specify. Recommendations are then made to the full Board.

The day to day administration of the Charity is conducted by the Clerk to the Trustees together with two staff. They undertake the initial discussions with applicants, which may include a home visit and then they present appropriate papers to the Board for consideration. In certain instances, such as when an application meets all prerequisite guidelines, the Office has authorisation to release grant payments and these grants are reported to the Board at a subsequent meeting.

Page 10

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Office keeps Trustees informed about relevant issues including those relating to the compliance of Charity Commission guidance, governance, employment law, insurance, investments and benefit changes. Trustees and Staff are also able to attend more formal training sessions provided by our advisors and other bodies and a number of these have occurred during the year.

The Charity’s office building is kept under review and the cost of any maintenance work is depreciated over a period of five years in order to reduce the impact on funding available for general grants.

Key management personnel remuneration

The Trustees consider that the Board of Trustees and Clerk to the Trustees comprise the key management personnel. Trustees are not remunerated and give their time without cost to the Charity. The level of staff remuneration is reviewed annually with the Board taking account of the Charity’s expected income and prevailing inflation rate. The remuneration package does not have a fixed link to any indices or benchmarks.

Trustee expenses, which only relate to travel costs for attending training courses and related party transactions, are disclosed in note 2 of the Financial Statements.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Number: 527473 Address: 16 Queen's Road Evesham Worcestershire, WR11 4JN Telephone: 01386 – 765440 Fax: 01386 – 765340 E-Mail: enquiries@johnmartins.org.uk Website: www.johnmartins.org.uk Trustees: Mrs Julie Westlake Chair Mr Stuart Allerton Vice Chair Mr Philip Airdrie The Reverend Mark Binney Mr Alan Booth Mrs Valerie Butler Mrs Gabrielle Falkiner Term of Office ended 16 December 2020 Mr Nigel Lamb Re-appointed 14 April 2020 Retired 2 November 2020 Miss Sherraden Murphy Appointed 14 January 2021 Mrs Janet Osborne Mrs Jo Sandalls Mr Cyril Scorse Mr John Smith, OBE Re-appointed 14 April 2020 Mr John Wilson Correspondents: Mr John Daniels Clerk to the Trustees Mrs Elizabeth Corbett Senior Administrator Mrs Jan Dodwell Accounts Administrator Auditors: Azets Audit Services Almswood House 93 High Street Evesham Worcestershire, WR11 4DU

Page 11

JOHN MARTIN’S CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Bankers: CAF Bank Limited Lloyds Bank Plc
25 Kings Hill Avenue 19 High Street
Kings Hill Evesham
West Malling Worcestershire
Kent ME19 4JQ WR11 4DQ
Property Bruton Knowles
Consultants: 42 Bull Street
Birmingham
B4 6AF
Investment CCLA Investment Management Ltd Schroder & Co Ltd T/as
Managers: Senator House Cazenove Capital
85 Queen Victoria Street 1 London Wall Place
London London
EC4V 4ET EC2Y 5AU
Solicitors: Anthony Collins LLP Saunders Roberts
134 Edmund Street 58 Bridge Street
Birmingham Evesham
B3 2ES Worcestershire WR11 4SG

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, of the Charity for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This Report was approved and adopted by the Board of Trustees at the Annual General Meeting held on 24 June 2021.

Signed by Julie Westlake – Trustee

Signed by Stuart Allerton – Trustee

Page 12

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF JOHN MARTIN’S CHARITY

Opinion

We have audited the financial statements of John Martin's Charity for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the Trustees’ annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of our audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page twelve, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Page 13

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF JOHN MARTIN’S CHARITY

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with regulations made under Section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of the audit report.

Use of our report

This report is made solely to the Charity's Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Azets Audit Services Almswood House 93 High Street Evesham Worcestershire WR11 4DU 24 June 2021

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

Page 14

JOHN MARTIN’S CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
funds
Note
£
INCOME AND ENDOWMENTS
Donations
3
-
Investment income
3
679,093
Government grants
3
5,489
_
Total income
684,582
EXPENDITURE
Costs of raising funds
Investment management costs 4
-
Charitable activities
6
Religious support
7,476
Relief in need
97,204
Promotion of education
37,387
Health
7,476
Total expenditure
149,543
Net income(expenditure) and
net movement in funds before
(gains)/losses on investments
535,039
Net (gains)/losses on
investments
11
-
_

Net income(expenditure)
535,039
Transfers between funds
15
(538,228)
Net movement in funds
(3,189)
RECONCILIATION OF FUNDS
Total funds brought forward
396,878
TOTAL FUNDS CARRIED
FORWARD
393,689		 Restricted
fund
Endowment
fund
Total funds
2021
Total funds
2020
£
£
£
£
-
-
-
150
-
-
679,093
832,201
-
-
5,489
-
_
_
_
_
-
-
684,582
832,351
-
52,021
52,021
56,733
64,441
-
71,917
86,131
146,732
-
243,936
285,844
196,973
-
234,360
359,947
46,178
-
53,654
58,543
454,324
52,021
655,888
847,198
(454,324)
(52,021)
28,694
(14,847)
-
(4,062,442)
(4,062,442)
2,190,813
_
_
_
_
(454,324)
4,010,421
4,091,136
(2,205,660)
538,228
-
-
-
83,904
4,010,421
4,091,136
(2,205,660)
262,302
21,714,875
22,374,055
24,579,715
346,206
25,725,296
26,465,191
22,374,055

The notes on pages 18 to 31 form part of these accounts.

Page 15

JOHN MARTIN’S CHARITY

BALANCE SHEET AS AT 31 MARCH 2021

Unrestricted
funds
Note
£
FIXED ASSETS
Tangible assets
10
207,331
Investments
11
-
Total Fixed Assets 207,331
CURRENT ASSETS
Stocks
-
Debtors
12
-
Cash at bank and in hand
12
204,996
Total Current Assets 204,996
LIABILITIES
Creditors falling due within one
year
13
(12,511)
NET CURRENT ASSETS
192,485
TOTAL ASSETS LESS
CURRENT LIABILITIES
399,816
Creditors falling due after one
year
14
(6,127)
NET ASSETS
393,689
THE FUNDS OF THE
CHARITY
15
Unrestricted funds:
General fund
153,850
Functional assets fund
207,331
Designated
32,508
Restricted funds:
Restricted funds -General
-
Restricted fund -Designated
-
Endowment fund
-
TOTAL CHARITY
FUNDS
393,689		 Restricted
funds
£
-
-
-
111
2,966
479,082
482,159
(135,953)
346,206
346,206
-
346,206
-
-
322,461
23,745
-
346,206		 Endowment
funds
£
-
25,330,516
25,330,516
-
-
394,780
394,780
-
394,780
25,725,296
-
25,725,296
-
-
-
-
25,725,296
25,725,296
 Total funds
2021
£
207,331
25,330,516
25,537,847
111
2,966
1,078,858
1,081,935
(148,464)
933,471
26,471,318
(6,127)
26,465,191
153,850
207,331
32,508
322,461
23,745
25,725,296
26,465,191		 Total funds
2020
£
210,520
21,690,649
21,901,169
257
4,878
596,610
601,745
(121,155)
480,590
22,381,759
(7,704)
22,374,055
153,850
210,520
32,508
233,527
28,775
21,714,875
22,374,055

The financial statements were approved by the Board of Trustees on 24 June 2021 and were signed on its behalf by:

Julie Westlake – Trustee

The notes on pages 18 to 31 form part of these accounts.

Stuart Allerton – Trustee

Page 16

JOHN MARTIN’S CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
Net cash used in operating
activities
17
Cash flows from investing activities
Payments to acquire tangible assets
Payments to acquire investments
Receipts from sale of investments
Interest received
Dividends received
Donations
Rents received from investments
Government grants
Net cash provided by investing
activities
Cash flows from financing activities
Net cash provided by financing
activities
Change in cash and cash
equivalents in the year
Cash and cash equivalent
brought forward
Cash and cash equivalent
carried forward

Cash and Cash equivalents consists of:
Cash at bank and in hand		 Total
funds
2021
£
(622,422)
___
(2,487)
(4,188,875)
4,611,450
160
677,728
-
1,205
5,489
__
1,104,670
-
___ _
-
482,248
596,610
1,078,858
1,078,858		 Total
funds
2020
£
(865,260)
___
(5,673)
(2,703,410)
2,658,431
2,003
828,878
150
1,320
-
___
781,699
-
___
-
(83,561)
680,171
596,610
596,610

The notes on pages 18 to 31 form part of these accounts.

Page 17

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Charity information

John Martin’s Charity is an unincorporated charity created by the Will of John Martin of Hampton, Evesham, who died in 1714.

The Charity Commission approved a new Scheme on 17[th] March 1981 and this, together with amendments detailed in the Trustees’ Report sets out how the Charity is regulated.

Accounting Convention

The financial statements have been prepared in accordance with the Charity’s Scheme, the Charities Act 2011, 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) and UK Generally Accepted Accounting Practice. The Charity is a public benefit entity as defined by FRS 102.

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

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include the revaluation of freehold property and to include investment properties and certain financial instruments at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The COVID-19 pandemic reduced the level of investment income received by 18% in the year ended 31 March 2021. The Trustees continually review the income and adjust the level of grants accordingly. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising 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.

Fund structure

The Charity received a permanent endowment of agricultural land through the will of John Martin in 1714. As parcels of this land have been sold, all proceeds have been reinvested in suitable financial investment funds, which must remain as endowed funds of the Charity. The income from the investments is wholly unrestricted, subject to the provisions of the Charity's scheme, which defines the beneficiaries of the income therefrom.

The restricted fund represents the income transferred from the unrestricted fund after meeting the Charity's support and governance costs. The remaining income is then applied to meet the grant making objectives of the Charity. Any surplus or deficit on the year is carried forward in the restricted fund, and is available for distribution in future years, in accordance with the 1989 Scheme of the Charity.

The unrestricted fund balance represents surplus income brought forward from the period prior to the adoption of the 1989 scheme. This fund can be expended at the Trustees' discretion.

Income recognition

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The notes form part of these financial statements Page 18

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES – continued

Income recognition continued

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt.

Government grants which do not specify performance conditions are recognised in income when the proceeds are received or receivable. A grant that specifies performance conditions is recognised in income when the performance conditions are met. A grant received before the recognition criteria are satisfied is recognised as a liability.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

For more information on this attribution refer to the Allocation of support and governance costs below.

Grants payable are payments made to individuals, schools or organisations in the furtherance of the objectives of the Charity. The grants are accounted for where either the Trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the Charity.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Allocation of support and governance costs

Overhead and support costs have been allocated first between charitable activity and governance. Overhead and support costs relating to charitable activities have been apportioned between the four main activities on the basis of the administrative time spent in assessing and awarding grants made within those activities, except where a specific cost is directly attributable to an activity.

Governance costs have been apportioned between the four main activities on the basis of the administrative time spent in assessing and awarding grants made within those activities, except where a specific cost is directly attributable to an activity.

The allocation of support costs, overheads and governance costs is analysed in note 5.

Costs of raising funds

The costs of generating funds consist of investment management costs and certain legal fees.

Charitable activities

Costs of charitable activities include grants made, governance costs and an apportionment of support costs and overheads as shown in note 6.

Tangible fixed assets and depreciation

The Charity's property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

In the cases where fixed assets have been acquired in previous years but not capitalised in those accounts, they have been valued by the Trustees at their estimated current value to the Charity.

The notes form part of these financial statements

continued...

Page 19

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES – continued

Tangible fixed assets and depreciation continued

Depreciation of fixed assets is calculated to write-off the cost or valuation to the assets’ residual value over their estimated useful lives as follows:

Property 2% straight line
Building renovation costs
20%		 straight line
Computer equipment
25%		 straight line
Fixtures and fittings 20% straight line

Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of market risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Current assets- non cash

Stock- A quantity of cookers, tents and sleeping bags were purchased during the year and undistributed at the year end. These items have been included at cost and will be distributed in the near future.

Vouchers held- As some grants are awarded in the form of gift vouchers the Charity holds some monies in the form of gift vouchers. These are included in the accounts at their cash value.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to its financial instruments.

Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets classified as receivable within one year, which include other receivables and cash and bank balances are measured at transaction price including transaction costs.

Basic financial liabilities

Basic financial liabilities, including trade and other payables 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.

Taxation

The Charity is exempt from tax on its charitable activities.

The notes form part of these financial statements Page 20

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES – continued

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 sales proceeds and 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 the fair value at the year end and their carrying value. Realised and unrealised gains and losses are combined in the Statement of Financial Activities.

Pensions

Employees of the Charity are entitled to join a defined contribution 'Money Purchase' Scheme. The Charity contribution is restricted to the contributions disclosed in note 8.

There were no outstanding contributions at the year end.

The costs of the defined contribution scheme are included within support and governance costs and charged to the statement of financial activities as they fall due.

The employees are members of a defined benefit scheme which is now closed to new members. See note 16 for information of this scheme.

Contingent liabilities

Grants - A contingent liability is identified and disclosed for those grants resulting from:

2. RELATED PARTY TRANSACTIONS AND TRUSTEES’ EXPENSES AND REMUNERATION

The Trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2020: £nil). The reimbursement of Trustees’ expenses was as follows:

Other 2021
Number
2
2		 2020
Number
2
2		 2021
£
1,550
1,550		 2020
£
103
103

Other expenses include a donation of £1,500 to Acorns Children’s Hospice in recognition of Mr N Lamb’s long service as a Trustee.

The following related party transactions occurred during the year.

The Vicar of Hampton and Bengeworth, as an ex-officio Trustee, is entitled to have his expenses of office paid in accordance with Clause 25(1) and 25(2) of the 1989 Scheme. These amounted to £5,741 (2020: £7,966) and £100 (2020: £100).

Mrs Diana Scorse, the wife of co-optative Trustee, Mr Cyril Scorse, receives fees as an organist at St Andrew's Church, Hampton. These fees are refunded to the Parochial Church Council under Clause 25(3) of the 1989 Scheme and total £521 (2020: £1,089).

Mrs Binney, the wife of ex-officio Trustee, Reverend Mark Binney, receives fees as a relief organist at St Andrew's Church, Hampton. These fees are refunded to the Parochial Church Council under Clause 25(3) of the 1989 Scheme and total £247 (2020: £244).

INVESTMENT INCOME

The notes form part of these financial statements

3.

continued...

Page 21

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Donations
Donated goods
-
-
-
-
-
-
Investment income
Rents receivable and
miscellaneous income
1,205
-
-
Dividends
677,728
-
-
Interest
160
-
-
679,093
-
-
Government Grants
5,489
-
-
5,489
-
-		 2021
Total
funds
£
-
-
1,205
677,728
160
679,093
5,489
5,489		 2020
Total
funds
£
150
150
1,320
828,878
2,003
832,201
-
-

All income was attributable to unrestricted funds in 2021 and 2020.

4. INVESTMENT MANAGEMENT COSTS

Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Management costs relating
to the investment land
-
-
1,145
Portfolio management
-
-
50,876
-
-
52,021		 2021
Total
funds
£
1,145
50,876
52,021		 2020
Total
funds
£
3,258
53,475
56,733

In 2021, all £52,021 (2020: £56,733) of the investment management costs were attributable to endowment funds.

5. ALLOCATION OF GOVERNANCE AND SUPPORT COSTS

The breakdown of governance and support costs and how these were allocated to charitable activities are shown in the table below:

Cost type
Governance
and support
£
Staff costs 114,643
Office costs 13,308
Premises costs 6,819
Advertising 1,256
Depreciation 5,676
Legal and professional fees 301
Auditors’ remuneration 7,540
149,543

The notes form part of these financial statements Page 22

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

5. ALLOCATION OF GOVERNANCE AND SUPPORT COSTS continued Governance costs:

Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Auditors' remuneration
7,540
-
-
Support costs
8,691
-
-
16,231
-
-
Allocation of governance and support costs:
Religious support
Relief in need
Promotion of education
Health and other charitable purposes

In 2021 and 2020 all of the expenditure on governance and support costs of £149,543 (2020: £145,643) was from unrestricted funds.

6. ANALYSIS OF CHARITABLE EXPENDITURE

Grant
funding of
activities
Support
costs
(See note 7)
(See note 5)
£
£
Religious support
64,441
7,476
Relief in need
146,732
97,204
Promotion of education
196,973
37,387
Health and other charitable purposes
46,178
7,476
454,324
149,543		 Totals
£
71,917
243,936
234,360
53,654
603,867

In 2021 the expenditure on charitable activities was £603,867 (2020: £790,465) of which £149,543 (2020: £145,643) was expenditure from unrestricted funds and £454,324 (2020: £644,822) was expenditure from restricted funds.

7. ANALYSIS OF GRANTS

Religious support
Relief in need
Promotion of education
Health and other charitable purposes		 2021
£
64,441
146,732
196,973
46,178
454,324		 2020
£
78,866
191,226
323,452
51,278
644,822

The notes form part of these financial statements Page 23

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

7. ANALYSIS OF GRANTS – continued

Analysis of grants to organisations and schools:

Religious support
All Saints’ PCC Evesham
St Andrew’s PCC Hampton
St Peter’s PCC Bengeworth
Relief in need
1st Evesham 1stHampton Scout Troop
Action on pre-eclampsia
Avonbank (Evesham) Brass Band
CAMEO
Caring Hands in the Vale
DIAL South Worcestershire
Evesham Bowling Club
Evesham Cardiac Rehab
Evesham Festival of Words
Evesham Homeless Partnership
Evesham Men in Sheds
Evesham Shop Mobility
Evesham Visually Impaired Bowls
Evesham Volunteer Centre
Footsteps Worcestershire
Freedom Day Centre
Home Farm Trust
Ourside Youth Association
Readeasy Evesham & Pershore
St Egwin Roman Catholic Church
Smile Café
South Worcestershire Citizens Advice Bureau
Wallace House Community Centre
Worcester Citizens Advice Bureau and WHABAC
Yellow Scarf CIC
Promotion of Education
Bengeworth CE Academy
Evesham College
Evesham Festival of Music
Prince Henry's High School
Hampton First School
St Egwin's CE Middle School
St Mary's Catholic Primary School
St Richard's CE First School
Swan Lane First School
The De Montfort School
Vale of Evesham School		 2021
£
16,000
16,000
26,600
58,600
-
-
-
(200)
2,000
-
2,000
-
(400)
-
-
5,000
-
12,000
1,000
-
-
17,000
1,000
5,000
500
-
6,650
8,850
7,000
67,400
3,030
2,240
-
7,170
6,400
2,131
1,010
-
1,910
5,040
1,770
30,701		 2020
£
32,200
19,300
19,300
70,800
700
(62)
2,500
700
1,000
2,892
-
750
500
(20)
1,600
6,500
500
-
-
2,000
5,000
-
-
-
700
26,000
-
10,350
5,000
66,610
6,050
4,993
(1,100)
14,440
10,600
5,040
2,130
3,920
3,920
10,080
3,770
63,843

The notes form part of these financial statements Page 24

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

7. ANALYSIS OF GRANTS– continued

2021 2021 2020
£ £
Health & other charitable purposes
Acorns Children’s Hospice 11,700 10,000
Brain Tumour Trust - 350
Breast Cancer Haven - 8,000
British Wireless for the Blind Fund 540 -
Hampton Flower Show - 150
Multiple Sclerosis Trust - (1,950)
St Richard’s Hospice 30,000 30,000
42,240 46,550
198,941 247,803
Analysis of grants to individuals
2021 2020
£ £
Religious support 5,841 8,066
Relief in need 79,332 124,616
Promotion of education 166,272 259,609
Health and other charitable purposes 3,938 4,728
255,383 397,019
ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL
2021 2020
£ £
Wages and salaries 99,670 97,007
Social security costs 6,718 6,813
Other pension costs 8,255 7,934
114,643 111,754
The average monthly number of employees during the year was as follows:
2021 2020
Fulltime employees 3 3

8. ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

All employee time is involved in providing either support to the governance of the Charity or support services to charitable activities.

The Charity considers its key management personnel comprise the Trustees and the Clerk to the Trustees. The total employment benefits including employer pension contributions of the key management personnel were £49,367 (2020: £48,048).

No employees received emoluments in excess of £60,000 (2020: nil).

9. AUDITOR’S REMUNERATION

The auditor’s remuneration constituted an audit fee of £7,540 (2020: £7,501).

The notes form part of these financial statements Page 25

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

10. TANGIBLE FIXED ASSETS

Freehold
property
Improvements
to property
Fixtures and
fittings
Computer
equipment
£
£
£
£
COST
At 1 April 2020
210,000
114,192
60,363
30,347
Additions
-
575
249
1,663
Disposals
-
-
-
-
At 31 March 2021
210,000
114,767
60,612
32,010
DEPRECIATION
At 1 April 2020
7,800
113,507
57,140
25,935
Charge for year
1,300
605
1,046
2,725
Disposals
-
-
-
-
At 31 March 2021
9,100
114,112
58,186
28,660
NET BOOK VALUE
At 31 March 2021
200,900
655
2,426
3,350
At 31 March 2020
202,200
685
3,223
4,412		 Totals
£
414,902
2,487
-
417,389
204,382
5,676
-
210,058
207,331
210,520

The Charity's freehold property was subject to an independent professional valuation at 9 June 2015. The valuation was undertaken by Roger Warrington FRICS, Chartered Surveyor on an open market basis. This valuation has been adopted as deemed cost on transition to SORP (FRS 102). These assets are being depreciated from 31 March 2014 and have a net book value of £200,900 (2020: £202,200). The historic cost equivalent of these assets is £200,000 (2020: £200,000).

All the above tangible fixed assets were used for direct charitable purposes.

11. FIXED ASSET INVESTMENTS

Movement in fixed asset listed investments
Market value brought forward at 1 April 2020
Additions to investments at cost
Disposals at carrying value
Realised gains
Net unrealised investment gains (losses)		 2021
£
21,495,649
4,188,875
(4,611,450)
401,924
3,660,518
25,135,516		 2020
£
23,641,483
2,703,410
(2,658,431)
51,026
(2,241,839)
21,495,649

Net cash released from investments in the year was £1,101,668 (2020: £787,222) 45% (2020: 59%) of the above investments were held in the UK.


Equities and fixed interest securities
Other investments		 2021
£
25,135,516
195,000
25,330,516		 2020
£
21,495,649
195,000
21,690,649

The notes form part of these financial statements Page 26

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

11. FIXED ASSET INVESTMENTS – continued

Material investments with a value of 5% or more of the Charity's funds were as follows:

Holding Fund 2021 2020
£ £
2,440,740 Cazenove Equity Income Trust for Charities 1,343,164
1,135,432
513,411 COIF Charities Investment Fund Income Units 7,610,291
9,185,693
1,267,093 COIF Charities Property Fund Income Units 1,439,798
1,420,664
944,175 Jo Hambro UK Equity income Units 811,046
1,172,665
1,066,413 Trojan Income Fund 1,741,133
1,875,928
31,641 Vanguard S & P 500 UCITS ETF 1,732,582
 1,610,549

All investments are carried at fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investments companies are at bid price. The basis of fair value for quoted investments is equivalent to the market value, using bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

Investments (neither listed nor unlisted) were as follows:

17.76 acres of land held for investment purposes 2021
£
195,000		 2020
£
195,000

12.

The investment land was professionally valued by Bruton Knowles, Chartered Surveyors, on 12 November 2010. The land was permanently endowed to the Charity as detailed in note 15 to the financial statements. ANALYSIS OF CURRENT ASSETS

Prepayments and accrued income
Cash at bank
Total		 2021
£
2,966
1,078,858
1,081,824		 2020
£
4,878
596,610
601,488

All prepayments related to restricted funds in both 2021 and 2020.

Cash and bank balances were represented by unrestricted funds £204,996 (2020: £206,049), restricted funds £479,082 (2020: £366,335) and endowment funds £394,780 (2020: £24,226).

13. ANALYSIS OF CURRENT LIABILITIES

Grants payable (restricted)
Sundry creditors and accruals
Total		 2021
£
135,953
12,511
148,464		 2020
£
109,168
11,987
121,155

Creditors were as follows:unrestricted funds £12,511 (2020:£11,987),restricted funds £135,953 (2020:£109,168).

The notes form part of these financial statements Page 27

continued...

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

14. ANALYSIS OF CREDITORS FALLING DUE AFTER ONE YEAR

Pension provision
Total		 2021
£
6,127
6,127		 2020
£
7,704
7,704

All creditors falling due after one year related to unrestricted funds both in 2021 and 2020.

15. ANALYSIS OF CHARITABLE FUNDS

At 1.4.20
Net
movement in
funds
£
£
Unrestricted funds
General fund
153,850
535,039
Functional assets fund
210,520
-
Designated computer software
30,000
-
Designated training provision
2,508
-
396,878
535,039
Restricted funds
Restricted fund General
233,527
(449,294)
Restricted fund Designated COVID-19
28,775
(5,030)
262,302
(454,324)
Endowment funds
Endowment fund
21,714,875
4,010,421
TOTAL FUNDS
22,374,055
4,091,136
Net movement in funds, included in the above are as follows:
Incoming
resources
Resources
expended
£
£
Unrestricted funds
General fund
684,582
(149,543)
Functional assets fund
-
-
Designated computer software
-
-
Designated training provision
-
-
684,582
(149,543)
Restricted funds
Restricted fund
-
(449,294)
Restricted fund Designated COVID-19
-
(5,030)
-
(454,324)
Endowment funds
Endowment fund
-
(52,021)
TOTAL FUNDS
684,582
(655,888)		 Transfers
between
funds
At 31.3.21
£
£
(535,039)
153,850
(3,189)
207,331
-
30,000
-
2,508
(538,228)
393,689
538,228
322,461
-
23,745
538,228
346,206
-
25,725,296
-
26,465,191
Gains and
losses
Movement in
funds
£
£
-
535,039
-
-
-
-
-
-
-
535,039
-
(449,294)
-
(5,030)
-
(454,324)
4,062,442
4,010,421
4,062,442
4,091,136

The notes form part of these financial statements Page 28

continued…

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

15. MOVEMENT IN FUNDS – continued

Transfers between funds

In accordance with the Charity Scheme, £nil (2020: £118) was utilised from the unrestricted designated training provision fund during the year for staff and trustee training. The functional assets fund was decreased by £3,189 (2020: decreased by £267), in line with the current value of the assets stated in the Balance Sheet at 31 March 2021. £nil (2020: £9,780) has been retained in the unrestricted general fund to maintain the minimum target level set in the Reserves Policy.

£30,000 was designated specifically for relief in need to a COVID-19 restricted fund in 2020. Grants of £5,030 (2020: £1,225) were issued in the year.

Permanent endowment fund

The Charity received a permanent endowment of agricultural land through the will of John Martin in 1714. John Martin had lived in Hampton, near Evesham, and bequeathed his lands on condition that they were to be held as a permanent endowment with the income arising being for the specific purposes of providing for a vicar in the parishes of Hampton and Bengeworth, assisting with the education of local children and for the relief in need of the people of Hampton, Bengeworth and Evesham. Since then, most of the original land has been sold and the proceeds re-invested in investment funds, which must also be retained as permanent endowment.

Significant expenses incurred in the administration of the remaining land are also charged to this fund, in accordance with the Statement of Recommended Practice, 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) issued in October 2019.

The Trustees, with the approval of the Charity Commission, have subsequently expanded the beneficial area to which the bequest relates as part of a series of Schemes. These dictate that all income arising from the permanent endowment is unrestricted in the first instance, to allow for reasonable running costs of the Charity to be met. Any surplus after that must be transferred to the restricted fund set out below to be distributed as grants in accordance with the rules of the Scheme.

Restricted fund

Under the rules of the 1989 Scheme, once costs of governance and administration have been deducted from the annual income, all remaining monies must be distributed as grants, subject to the restrictions laid out in the Scheme. Any monies not distributed within the same year must be carried forward within the restricted fund, which can only be distributed as grants in future years.

As a consequence of the COVID-19 pandemic a designated restricted reserve of £30,000 was allocated for the purpose of relief in need in March 2021. Grants of £5,030 (2020: £1,225) have been awarded during the year from this fund.

Unrestricted funds

General Fund

The general fund balance represents surplus income brought forward from the period prior to the adoption of the 1989 Scheme together with income arising from the permanent endowment fund which is available to be spent at the Trustees' discretion. The Policy is to maintain the fund at 100% of forecast annual governance and support costs (less depreciation) as this will assist cash flow and enable the Charity to operate and meet its obligations on a day to day basis. Funds held in excess of this requirement are transferred to the restricted fund.

Functional assets fund

The functional assets fund represents the tangible fixed assets detailed in note 10.

The notes form part of these financial statements Page 29

continued…

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

15. MOVEMENT IN FUNDS – continued

Designated funds

Within the unrestricted fund, the Trustees, from time to time, establish a small number of designated funds for specific items of expected future expenditure, as described by the name of the fund. These are reviewed annually and transfers made as appropriate in light of these expectations.

16. PENSION COMMITMENTS

SCHEME: The Pensions Trust – The Growth Plan

The Charity participates in the scheme, a multi-employer scheme which provides benefits to some 950 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the Charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum From 1 April 2019 to 31 January 2025: (payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2016 to 30 September 2025:[£12,945,440 per annum ] (payable monthly and increasing by 3% each on 1st April)

From 1 April 2016 to 30 September 2028:[£54,560 per annum ] (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities and the Charity’s deficit contributions amounted to £2,015 (2020: £1,957) in the financial year.

Where the scheme is in deficit and where the Charity has agreed to a deficit funding arrangement the Charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

The notes form part of these financial statements

continued…

Page 30

JOHN MARTIN’S CHARITY

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

16. PENSION COMMITMENTS continued

Present values of provision

2021
£
2020
£

Present value of provision
8,203
9,719
econciliation of opening and closing provisions
2021
£
Provision at start of period
9,719
Unwinding of the discount factor (interest expense)
218
Deficit contribution paid
(2,015)
Actuarial remeasurements - change in assumptions
281
Actuarial remeasurements - amendments to the contribution schedule
-
Provision at end of period
8,203
come and expenditure impact
2021
£
Interest expense
218
Actuarial remeasurements – change in assumptions
281
Actuarial remeasurements – amendments to the contribution schedule
-
Pension contributions
7,974
Contributions recognised in the statement of financial activities (note 8)
8.473
sumptions
2021
% per annum
2020
% per annum
%
Rate of discount
0.66
2.53
2019
£
11,790
2020
£
11,790
150
(1,957)
(264)
-
9,719
2020
£
150
(264)
-
8,198
8,084
2019
per annum
1.39

Reconciliation of opening and closing provisions

Income and expenditure impact

Assumptions

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. The Charity recognises a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement.

17. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021 2020
£ £
Net movements in funds 4,091,136 (2,205,660)
Donations - (150)
Dividends received (677,728) (828,878)
Rents receivable from investments (1,205) (1,320)
Government grants (5,489) -
Interest receivable (160) (2,003)
Depreciation of tangible fixed assets 5,676 5,940
Gains/losses on investments (4,062,442) 2,190,813
Decrease/(increase) in stock 146 (73)
Decrease/(increase) in debtors 1,912 (2,489)
Increase/(decrease) in creditors 25,732 (21,440)
Net cash used in operating activities (622,422) (865,260)

The notes form part of these financial statements Page 31