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2020-12-31-accounts

Charity Registration No. 528713

TANWORTH EDUCATIONAL FOUNDATION

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

TANWORTH EDUCATIONAL FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees V A Hake
R King
S Hipkiss
R Muntz
J W H Brown
S Jones
D Burgess
P Pope
Charity number 528713
Registered office The Old Workhouse
Well Lane
Tanworth in Arden
Solihull
West Midlands
B94 5AH
Independent Examiner RSM UK Tax and Accounting Limited
Chartered Accountants
St Philips Point
Temple Row
Birmingham
West Midlands
B2 5AF
Bankers Lloyds TSB Plc
22 Bridge Street
Stratford-on-Avon
CV37 6AG
Solicitors Lodders
Elm Court
Arden Street
Stratford-on-Avon
CV37 6PA

TANWORTH EDUCATIONAL FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Investment Managers

Barclays Wealth 1 Colmore Square Birmingham B4 6AA

M & G Investments M & G Charities PO Box 9038 Chelmsford CM99 2XF CCLA Investment Management Limited COIF Charity Funds 80 Cheapside London EC2V 6DZ

TANWORTH EDUCATIONAL FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Trust Deed, the Charities Act 2011 and 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) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Objectives and activities

The object of the Charity is to “promote and advance the education of boys and girls in the parish of Tanworth and to serve other charitable uses”. The above purposes are principally served by the Trustees maintaining and improving the properties owned by the Charity and giving grants to the schools situated in Tanworth in Arden and on Salter Street, Earlswood.

The income of the Charity consists of dividends and interest from quoted securities, M & G Charifund Units and the Charities Official Investment Fund. The Charity also has investment properties from which rent is received.

The Trustees approve grants as they think fit that further the objects of the charity, acting within the terms of

the Trust Deed which governs the charity.

Achievements and performance

Income generated has been distributed to support additional teaching personnel at Tanworth and Salter Street Schools.

Financial review

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Total income for 2020 was £76,864 (2019: £68,458) derived from investment income.

Income generated has been distributed to support additional teaching personnel at Tanworth and Salter Street

Schools.

At the end of the year, the Charity had total net assets of £3,433,654 compared with £3,508,221 at the end of 2019. This decrease in total net assets of the trust of £74,567 was made up as follows:

2020 2019
£ £
Net deficit on activities in the year (26,533) (12,045)
(Decrease)/Increase in value of investments during the year (48,034) 115,486
─────── ───────
Decrease)/Increase in total net assets during the year (74,567) 103,441
════════ ════════

TANWORTH EDUCATIONAL FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are responsible for preparing the Trustees' Report and the 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 year.

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

The Trustees are responsible for keeping sufficient 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 Charity (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.

TANWORTH EDUCATIONAL FOUNDATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF TANWORTH EDUCATIONAL FOUNDATION

I report on the financial statements of the Charity for the year ended 31 December 2020, which are set out on pages 5 to 14.

Responsibilities and basis of report

As the trustees of the 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.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner's statement

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

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.

Paul Oxtoby (FCCA) RSM UK Tax and Accounting Limited Chartered Accountants St Philips Point Temple Row Birmingham West Midlands B2 5AF

21 October 2021

Dated: .........................

TANWORTH EDUCATIONAL FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Endowment
funds
funds
Notes
£
£
Income from:
Investments
2
76,864
-
Expenditure on:
Raising funds
3
19,078
-
Charitable activities
4
84,319
-
Total resources expended
103,397
-
Net (losses)/gains
6
-
(48,034)
Net movement in funds
(26,533)
(48,034)
Total funds brought forward
84,149
3,424,072
Total funds carried forward
57,616
3,376,038
Total
2020
£
76,864
19,078
84,319
103,397
(48,034)
(74,567)
3,508,221
3,433,654
Total
2019
£
68,458
24,193
56,310
80,503
115,486
103,441
3,404,780
3,508,221

2020 2020 2019 2019 2019
Notes £ £ £ mnriO
£
Fixed assets
Tangibleassets 7 • • 1,778,706 ^0&nnoass, 1,778,706
Investment properties 8 794,251 .shnew'WItesW 794^261
Investments 9 839,599 889,109
3,412,556 3,462,066
Current assets
Debtors 10 3,841 9,242 , ,1
Cashat bank and in hand 33,901 39,951 . -^^
37,742 49,193 o f
Creditors: amounts falling due Nwithin 11
one year (16,644) (3,038)
Net current assets 21,098 46,155
Total assets less current liabilities 3,433,654 3,508,221
Capital funds
Endowment funds 13 3,376,038 3,424,072
Unrestricted funds 14 57,616 84,149
3,433,654 3,508,221

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Tanworth Educational Foundation is a charitable Trust registered in England.

The address of the Charity’s registered office is The Old Workhouse, Well Lane, Tanworth in Arden, Solihull, West Midlands, B94 5AH.

Accounting convention

The financial statements have been prepared in accordance with the Charity's trust deed, the Charities Act 2011 and 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) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). The Charity is a Public Benefit Entity as defined by FRS102.

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

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

Going concern

The trustees have considered, in the context of the Covid-19 pandemic, the going concern concept and any associated material uncertainties, the basis of any significant judgements and the matters to consider when confirming the preparation of the financial statements on a going concern basis and the trustees are comfortable that there are not any adjustments required. The trustees expect the charity to continue in operation for at least 12 months from the date of signing the financial statements.

Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

The endowment fund represents those assets which are treated as being held permanently by the charity, principally properties and 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. In addition any grants receivable to fund improvements are included as income of the endowment fund.

Incoming resources

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

The dividends and interest receivable represents the gross income receivable in respect of the investment assets plus the interest receivable on the COIF Deposit and the monies held by the Portfolio Manager.

The gross rents and ground rents represent the rent receivable on the Charity's investment properties.

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

Allocation of Investment Income

Investment income and net gains and losses are allocated over the funds in accordance with the balances on those funds.

Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Expenditure on raising funds are those incurred in attracting voluntary income.

Charitable activities consist of the grants given to the schools at Tanworth in Arden and Salter Street, Earlswood.

Governance costs are included within support costs and comprise all costs involving the public accountability of the Charity and its compliance with regulations of good practice. These costs include costs related to independent examination and legal fees together with an apportionment of overheads and other support costs.

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

Tangible fixed assets

The properties owned and used for the purpose of the objects of the Charity have not been revalued. The cost of these properties is shown in the balance sheet at a figure that excludes the cost incurred to acquire or improve the property when incurred prior to 1 January 1962. The cost of any property acquired or improved post 1 January 1962 but pre 31 December 1995 only represents the Charity’s proportion of such cost where the balance is funded by the DfE. Any cost incurred post 1 January 1996 or in 1995 on projects ongoing in 1996, includes the total cost both to the Charity and outside funders.

No depreciation is charged in these financial statements in respect of properties used for charitable,purposes. It is the Charity’s policy to maintain these properties to a high standard to result in a residual value in line with cost and the costs of maintenance are charged in the statement of financial activities.

Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.

Fixed asset investments

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

Cash and cash equivalents

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

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of 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.

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost less any amounts settled.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price including transaction costs and are subsequently carried at amortised cost less any amounts settled.

Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The trustees consider the valuation of the charity’s investment properties on an annual basis. The valuation of the investment properties is inherently subjective, and the trustees consider the location and expected future rental revenues among other factors in order to determine the value on an open market existing use basis.

2 Investments

Dividends and interest receivable
Gross rents and ground rents receivable
2020
£
31,223
45,641
76,864
2019
£
34,324
34,134
68,458

Income relates to unrestricted funds £76,864 (2019: £68,458).

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Raising funds

Investment property expenses
Property insurance
Repairs
Portfolio management fees
2020
£
2,612
15,019
17,631
1,447
19,078
2019
£
2,465
20,149
22,614
1,579
24,193

Expenditure on raising funds relates to unrestricted funds £19,078 (2019: £24,193).

4 Charitable activities

Insurance
Grants payable to Tanworth in Arden School

Grants payable to Salter Street School

Clerks charges and expenses
Professional charges (governance costs)
2020
£
760
32,765
38,000
5,000
7,794
84,319
2019
£
851
34,889
13,000
2,700
4,870
56,310

Expenditure on charitable activities relates to unrestricted funds £84,319 (2019: £56,310).

Professional charges include fees payable to the independent examiner totalling £1,300 (2019: £1,200) and accountancy services totalling £1,580 (2019: £1,440).

5 Trustees Remuneration

The Trustees received no remuneration during the year (2019: £nil) and were not reimbursed for any of their expenses in the year (2019: £nil).

There were no employees of the trust during the year (2019: none).

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Net gains/(losses) on investments

Revaluation of investments
(Loss)/gain on sale of investments
2020
£
(47,911)
(123)
(48,034)
2019
£
115,323
163
115,486

Other recognised gains and losses relates to endowment funds £48,034 loss (2019: £115,486 gain).

7 Tangible fixed assets

Tamworth in
Arden School
Salter Street
School
£
£
Cost
At 1 January 2020
1,085,437
693,269
At 31 December 2020
1,085,437
693,269
Carrying amount
At 31 December 2020
1,085,437
693,269
At 31 December 2019
1,085,437
693,269
Total
£
1,778,706
1,778,706
1,778,706
1,778,706

The cost of property acquired by the Trustees prior to 1 January 1962, and capital improvements carried out before that date, are not included in the balance sheet.

As a result of the above policies the balance sheet does not necessarily include all the costs incurred on the Charity’s properties.

8 Investment property

Investment property
2020
£
Fair value
At 1 January 2020 and 31 December 2020 794,251

The investment properties were revalued as at 31 December 2011 by the Trustees at an open market value of £794,251. The Trustees reviewed this valuation during the year ended 31 December 2020, and believe it to still be a true reflection of the value of the properties.

The cost of the investment properties as previously recorded in the financial statements of the Charity was £66,020. It is unlikely that this truly reflects the cost of the properties as costs incurred pre 1962 were not included in the financial statements.

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Fixed asset investments

Listed
investments
Monies held
by portfolio
manager £
£
£
Cost or valuation
At 31 December 2020
887,541
1,568
Valuation changes
(48,035)
-
Management fees
-
(1,475)
Disposals
(1,392)
1,392
At 31 December 2020
838,114
1,485
Carrying amount
At 31 December 2020
838,114
1,485
At 31 December 2019
887,541
1,568
Listed investments at market value
The listed investments can be broken down as follows:-
2020
£
Quoted securities managed by Barclays Wealth UK Equities
528,472
M. & G. Charifund Units
218,270
Charities' Official Investment Fund - Income units
91,372
Total
838,114
10
Debtors
2020
Amounts falling due within one year:
£
Prepayments and accrued income
3,841
11
Creditors: amounts falling due within one year
2020
£
Accruals and deferred income
16,644
12
Financial instruments
2020
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,979
Equity instruments measured at market value
839,599
Listed
investments
Monies held
by portfolio
manager £
£
£
Cost or valuation
At 31 December 2020
887,541
1,568
Valuation changes
(48,035)
-
Management fees
-
(1,475)
Disposals
(1,392)
1,392
At 31 December 2020
838,114
1,485
Carrying amount
At 31 December 2020
838,114
1,485
At 31 December 2019
887,541
1,568
Listed investments at market value
The listed investments can be broken down as follows:-
2020
£
Quoted securities managed by Barclays Wealth UK Equities
528,472
M. & G. Charifund Units
218,270
Charities' Official Investment Fund - Income units
91,372
Total
838,114
10
Debtors
2020
Amounts falling due within one year:
£
Prepayments and accrued income
3,841
11
Creditors: amounts falling due within one year
2020
£
Accruals and deferred income
16,644
12
Financial instruments
2020
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,979
Equity instruments measured at market value
839,599
Listed
investments
Monies held
by portfolio
manager £
£
£
Cost or valuation
At 31 December 2020
887,541
1,568
Valuation changes
(48,035)
-
Management fees
-
(1,475)
Disposals
(1,392)
1,392
At 31 December 2020
838,114
1,485
Carrying amount
At 31 December 2020
838,114
1,485
At 31 December 2019
887,541
1,568
Listed investments at market value
The listed investments can be broken down as follows:-
2020
£
Quoted securities managed by Barclays Wealth UK Equities
528,472
M. & G. Charifund Units
218,270
Charities' Official Investment Fund - Income units
91,372
Total
838,114
10
Debtors
2020
Amounts falling due within one year:
£
Prepayments and accrued income
3,841
11
Creditors: amounts falling due within one year
2020
£
Accruals and deferred income
16,644
12
Financial instruments
2020
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,979
Equity instruments measured at market value
839,599
Total
£
889,109
(48,035)
(1,475)
-
839,599
839,599
889,109
2019
£
537,574
264,088
85,879
887,541
2019
£
9,242
2019
£
3,038
2019
£
4,109
889,109
2020
£
528,472
218,270
91,372
838,114
2020
£
3,841
2020
£
16,644
2020
£
2,979
839,599

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Financial instruments 2020 2019
(Continued)
Carrying amount of financial liabilities
Measured at amortised cost 16,644 3,038

13 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds 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 assets form part of the fund.

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources
Revaluations
Balance at 31
January resources expended gains and December
2020 losses 2020
£ £ £ £ £
Endowment fund 3,424,072 - - (48,034) 3,376,038
3,424,072 - - (48,034) 3,376,038

For the prior year, the opening balance on the endowment fund was £3,308,586. The only movement in the year related to net gains on investments of £115,486, giving a closing balance of £3,424,072. There were no incoming resources or resources expended.

14 Unrestricted funds

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

Movement in funds
Balance at 1 Incoming Resources Balance at 31
January resources expended December
2020 2020
£ £ £ £
Unrestricted fund 84,149 76,864 (103,397) 57,616
84,149 76,864 (103,397) 57,616

For the prior year, the opening balance on the unrestricted fund was £96,194. The net incoming resources were £68,458 and resources expended were £80,503, giving a net movement in unrestricted fund of £12,045 which leaves a closing balance of £84,149.

TANWORTH EDUCATIONAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15
Analysis of net assets between funds
Unrestricted
Funds
Endowment
Funds
£
£
Fund balances at 31 December 2020 are represented by:
Tangible assets
-
1,778,706
Investment properties
-
794,251
Investments
36,518
803,081
Current assets/(liabilities)
21,098
-
57,616
3,376,038
Analysis of net assets between funds - prior year
Unrestricted
Funds
Endowment
Funds
£
£
Fund balances at 31 December 2019 are represented by:
Tangible assets
-
1,778,706
Investment properties
-
794,251
Investments
37,994
851,115
Current assets/(liabilities)
46,155
-
84,149
3,424,072
Total
£
1,778,706
794,251
839,599
21,098
3,433,654
Total
£
1,778,706
794,251
889,109
46,155
3,508,221

16 Related party transactions

There have been no transactions with related parties during the year (2019: None).