THE NORTON FOUNDATION
REPORT and FINANCIAL STATEMENTS
YEAR ENDED 5 APRIL 2021
THE NORTON FOUNDATION REPORT OF THE TRUSTEES for the year ended 5 April 2021
The trustees present their report and financial statements for the year ended 5 April 2021
| The Norton Foundation | |
|---|---|
| CHARITY REGISTRATION NUMBER 702638 |
|
| PRINCIPAL OFFICE | The Norton Foundation |
| c/o The Paddock | |
| Bwlch Y Gwynt Road | |
| Llysfaen | |
| Colwyn Bay | |
| LL29 8DQ | |
| TRUSTEES | R.H.Graham Suggett - Chairman |
| Alan Bailey | |
| Michael R. Bailey | |
| Ms Mashkura Begum | |
| Miss Wendy J Carrington | |
| Mrs Jane Gaynor | |
| Mrs Sarah V. Henderson | |
| Richard G.D.Hurley | |
| Brian W. Lewis | |
| Richard C. Perkins | |
| William Pusey | |
| Mrs Louise Sewell | |
| AUDITORS | Thomas and Young Ltd |
| Chartered Accountants | |
| Statutory Auditors | |
| Carleton House | |
| 266-268 Stratford Road | |
| Shirley | |
| Solihull | |
| B90 3AD | |
| BANKERS | CAF Bank Ltd |
| 25 Kings Hill Avenue | |
| ME19 4JQ | |
| INVESTMENT MANAGERS | Barclays Investment Solutions Limited |
| One Snowhill | |
| Snow Hill Queensway | |
| Birmingham | |
| B4 6GN | |
| Web site | |
| www.nortonfoundation.org is the address of the Trust’s Website. | |
| The following officials can be contacted by email: | |
| Chairman | chairman@nortonfoundation.org |
| Correspondent | correspondent@nortonfoundation.org |
1
THE NORTON FOUNDATION
REPORT OF THE TRUSTEES for the year ended 5 April 2021 (continued)
The trustees present their report and financial statements for the year ended 5 April 2021.
The Trustees who served during the year and up to the date of this report are set out on page 1.
Structure, Governance and Management
Nature of Governing document
The Trust was created on 18 January 1990 by a Declaration of Trust.
The Objects of the Trust are to help children and young persons under the age of twenty five years who are in need of care or rehabilitation or aid of any kind, particularly as a result of delinquency, deprivation, maltreatment or neglect or who are in danger of lapsing or relapsing into delinquency. The area of benefit is the United Kingdom and in particular the Birmingham and Coventry areas and the County of Warwickshire. The trustees have had due regard to the guidance published by the Charity Commission on public benefit.
The Trust is registered with the Charity Commission, registration number 702638. The Trust has been accepted as a charity by the Inland Revenue and as such its income and capital gains are exempt from taxation.
Trustee induction and training
At the Annual General Meeting the Trustees retiring by rotation are Mr A Bailey, Mr M Bailey, Mrs Henderson and Mrs Sewell. They, being eligible, will be proposed for re-appointment as Trustees for a further term.
Under the terms of the Trust Deed, the Trustees have the power to appoint new Trustees and in doing so shall have regard to "the need to choose a person who through residence, occupation, or employment or who is otherwise personally or professionally qualified by his ability in, and practical experience of, the pursuit of the said objects or of trust management". New Trustees are provided with information of the Trust's objectives and policies at the time of appointment which can only be amended at future Trustees' meetings for which all Trustees are provided with agenda, appropriate papers and subsequently approved minutes.
Organisational structure
Grants to individuals are partly awarded by way of block discretionary grants to sponsors and partly at the discretion of the Correspondent. Sponsors are awarded block grants with the responsibility of awarding grants to individuals. It is considered that this process enhances the effectiveness of our awards to young persons in that prompt assistance is given at the time of need. This, together with the Correspondent's ability to award individual grants, minimises the amount of Trustee time involved in administration.
Full Trustee meetings are normally held four times a year and in addition to receiving detailed reports of all grants to individuals, whether via sponsors' discretionary block grants or made directly by the Correspondent, the Trustees will also consider, at each meeting, grants to be awarded to organisations for projects. Details of the amounts granted for each type of grant are detailed in note 4 to the financial statements. The Trustees also plan to continue awarding grants for capital projects. A Sub-committee of Trustees, comprising Mr A. Bailey as Chairman, Mr M. Bailey, Ms Begum, Mrs Sewell and Mr Suggett, has been formed to consider applications and recommend the award of the 2020 capital grant.
The Trustees have appointed a small number of Trustees as an Investment Sub-committee. This Sub-committee has been given the responsibility for advising the Trustees on all aspects of investment policy and monitoring the work of the Investment Managers appointed by the Trustees. It has been given the power to give instructions to the Investment Managers within the Trustees’ overall investment policy. It is the current policy of this Sub-committee to meet when necessary but at least twice each year. It is required to report its activities to the full body of Trustees. The present members of this Sub-committee are Mr Suggett as Chairman, Mr A. Bailey, Mr Hurley, Mr Lewis and Mr Perkins.
The day to day administration of the Trust is carried out by Richard Perkins & Company who were appointed as Correspondent and Administrator on 1st July 2004. Mr Richard Perkins, owner of Richard Perkins & Company, is also a Trustee.
The Correspondent may be contacted at The Paddock, Bwlch Y Gwynt Road, Llysfaen, Colwyn Bay, LL29 8DQ.
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THE NORTON FOUNDATION
REPORT OF THE TRUSTEES for the year ended 5 April 2021 (continued)
Risk Management
The Trustees have overall responsibility for the system of internal control, which includes ensuring that there are reasonable procedures in place for the prevention and detection of major risks, including fraud and other irregularities.
All such procedures are designed to mitigate (not eliminate) risks and to provide reasonable (not absolute) assurance against material errors or loss.
As a small charity with limited resources and personnel, it is impractical to institute a robust system of internal control. The charity has no employees and has employed the firm of Chartered Accountants owned by one of the trustees to act as Trust Correspondent. The only others involved in running the charity are the Trustees themselves.
Polices and procedures have been developed to cover matters such as, financial systems, investment management, awarding of grants, conflict of interest and other matters. These are regularly reviewed. In addition there is an annual budgeting process against which actual performance is monitored throughout the year at regular Trustees’ meetings.
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Principal risks and uncertainties Response
Internal
False accounting •Detailed written policy on financial systems
•Quarterly review of financial performance against agreed budget
•External statutory audit
Misappropriation of income •Almost all income is collected by investment advisors and controlled by them
•Insignificant and rare refunds of grants returned by direct to Norton
•Assurance reports on internal controls of custodians of our investments
Inflated expenditure •Detailed written policy on financial systems which includes requirement for all
payments to be approved by two trustees
•Investment managers fees are taken from funds held by them and amounts are
reviewed to ensure compliance with agreement
Misappropriation of assets -
Investments •Assurance reports on internal controls of custodians of our investments
Cash at bank •Monthly bank reconciliations
External
Loss in value of investments •External investment managers have discretion to manage our funds. However, the
risk remains that external economic and political influences cannot always be
foreseen and therefore mitigated
Fraudulent grant applications •Capital and project grants are reviewed by the board of trustees
•Grants to individuals are paid to sponsors who are charged with the responsibility
to ensure that grants are correctly used
•Trustees visit grantees or sponsors from time to time
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Objectives and Activities
It is the aim of the Trustees, both presently and in the future, to maximise the amount available for spending, consistent with the wish to maintain the real value of the permanent endowment of the Trust, in order to grant as much as possible, as quickly as practicable, to individuals the Trust was formed to help, either directly or indirectly through other institutions. In furtherance of this objective, the Trustees have, with effect from 6 April 2014, adopted the total return approach to investment in accordance with The Trusts (Capital and Income) Act 2013.
3
THE NORTON FOUNDATION
REPORT OF THE TRUSTEES for the year ended 5 April 2021 (continued)
Objectives and Activities (continued)
The total return basis of investment allows the Trust to consider providing more funds for spending each year based not only on the level of income earned but also taking into account the increased value of investments arising from both realised and unrealised gains. In making yearly assessments of the level of funds to be spent, the Trustees will have due regard to maintaining the real value of the original endowed funds. This is important to ensure even-handedness between current and future beneficiaries. The value of the investment fund (permanent endowment) has been valued at 1 April 1991, the date upon which the majority of the funds were received. A smaller amount of additional funds was received in 1992. All investment gains, both realised and unrealised, since receipt of these endowed funds have been allocated to unapplied total return. The total return on our investments for the year ended 5 April 2021 resulted in a surplus of £1,354,238 and the Trustees have allocated £54,822 to the income fund for spending. Reserves to meet future expenditure are not required as future yearly expenditure will be financed from unapplied total return. Future allocations to income will be carefully considered and balanced with the requirement to maintain the real value of our endowment and to maintain a fund of such proportion as will continue to provide the opportunity to produce satisfactory future returns.
It is the policy of the Trustees at a meeting of Trustees held in April each year to determine how much of the unapplied total return of the Trust shall be made available for grants for the ensuing financial year. However, due to Covid-19, in place of the regular April meeting, consultations between the trustees decided that grants to institutions would be deferred until it was safe for trustees to meet. This meeting was scheduled for July 2021. The amount available for grants is reviewed regularly throughout the year.
Once the amounts available are determined, grants are made up to these limits provided sufficient applications are received to justify the opinion that the Trust's support is appropriate. Where available funds are at any time insufficient, the Trustee's review the current year's budget at each meeting and make appropriate changes to allocations available for the different types of grants.
The Trustees have decided that, whilst the Trust Deed gives them the power to assist needy young people in the United Kingdom, at present grants will normally be restricted to the benefit of young people living within the Birmingham and Coventry areas and the County of Warwickshire.
Public Benefit
The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the Trust and in planning any future activities.
Achievements and performance
The income and expenditure is reflected in the Statement of Financial Activities on page 8.
The net increase in funds of £1,299,416 compares with a decrease in 2020 of £1,045,887, a change of £2,345,303. This can be explained by the higher returns on investments of £2,171,176 and a decrease in cost of grants of £171,229.
The Trustees consider that the management and other expenses are being controlled at an acceptable level.
The effect of adopting a total return basis of accounting to provide funds for grants and expenses for the year ended 5th April 2021 can be seen in note 10 to the accounts. The unapplied total return at 5th April 2020 amounted to £2,593,140 which has increased by £1,299,416 to £3,892,556 at 5th April 2021.
The trustees are of the opinion that all their objectives for the year have been met and they see no reason to alter their stated objectives for future years. The trustees consider that their grant giving policy continues to have significant impact for beneficiaries.
Coronavirus
The most significant indirect effect of Covid-19, was in last year to 5th April 2020 with a significant fall in value of £985,757 in our investments which reduced the excess margin, to some £147,000, between the current value of our funds and the real value of our original 1991/92 funds. Fortunately, in the year to 5th April 2021, there has been a subsequent significant recovery in the value of our investments to the extent that the fund value is now some £1.3million above the real value of the original funds. The Trustees are sufficiently comfortable that a return to modest increases to previous levels of grant giving, including the delayed 2020 Capital grant will now be sustainable. However, the Trustees intend to keep this recovery situation under constant review with the view of making any necessary changes to levels of grant giving. 4
THE NORTON FOUNDATION REPORT OF THE TRUSTEES for the year ended 5 April 2021 (continued)
Investment Policy
The Trust Deed imposes no restrictions on the investment powers of the Trustees.
The Trustees have approved an investment policy that requires the production of an adequate total return.
As can be seen in note 10 to the accounts, our investments showed an increase in total return for the year ended 5th April 2021 compared with the return in the previous year and this can be explained by the effect the vagaries of the market have had on our investments. The reason for the rise in investment value can be explained by recovery from the initial detremental effect of the pandemic had on the economy.
Reserves policy
It is the Trust's policy not to maintain any unrestricted reserves as ongoing funds are available from the endowment under the total return policy adopted. Any unspent portion of the grant budget is carried forward if unspent at the year end.
Trustees' responsibilities statement
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 & Wales requires 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 these financial statements, the Trustees are required to:
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(a) select suitable accounting policies and then apply them consistently;
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(b) observe the methods and principles in the Charities SORP;
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(c) make judgements and estimates that are reasonable and prudent;
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(d) state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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(e) prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 Charity (Accounts Reports) Regulations 2019 and 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.
Disclosure of information to the auditors
We, the trustees of the charity who held office at the date of approval of these Financial Statements each confirm, so far as we are aware, that:
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there is no relevant audit information of which the charity's auditors are unaware; and
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we have taken all the steps that we ought to have taken as trustees in order to make ourselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
Thomas and Young Ltd has expressed their willingness to continue in office and will be proposed for re-appointment at the Annual General Meeting.
R.H.G.SUGGETT
Chairman
21 October 2021
5
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE NORTON FOUNDATION
Opinion
We have audited the financial statements of The Norton Foundation for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet and 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).
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 2019. 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 this report, or for the opinions we have formed.
In our opinion the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 5 April 2021, and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the 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. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of the 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 2019 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE NORTON FOUNDATION
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement set out on page 5, the trustees are responsible for the preparation of financial statements which 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.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditors under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
j 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our audit approach included the following elements:
• Assessment of the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur.
• Assessment of the laws and regulations identified as being of significance in the context of the charity.
• We obtained an understanding of the charity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance.
• We ensured that our audit personnel have the experience and knowledge to identify or recognise noncompliance with laws and regulations.
Taking into account all of these points, our procedures are appropriate to detect material misstatements in respect of irregularities, including fraud.
Michael Edwin Vousden FCA
21 October 2021
Thomas and Young Ltd Chartered Accountants Statutory Auditors Carleton House 266-268 Stratford Road Shirley Solihull, B90 3AD
Thomas and Young is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
7
THE NORTON FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES for the year ended 5 April 2021
| Notes INCOME FROM Investment income Funds held by Investment Managers 3 Bank interest Total Income EXPENDITURE ON Raising Funds Charitable activities 4 Governance costs 4 Total Expenditure Net gain(loss) on investment assets NET (EXPENDITURE)INCOME Transfers NET MOVEMENT IN FUNDS TOTAL FUNDS brought forward TOTAL FUNDS carried forward 10 |
Unrestricted Permanent 2021 2020 Funds General Endowment Total Total £ £ £ £ - 157,859 157,859 200,978 - 2 2 - - 157,861 157,861 200,978 - 32,159 32,159 34,676 49,284 - 49,284 220,400 5,538 - 5,538 6,032 54,822 32,159 86,981 261,108 - 1,228,536 1,228,536 (985,757) (54,822) 1,354,238 1,299,416 (1,045,887) 54,822 (54,822) - - - 1,299,416 1,299,416 (1,045,887) - 4,652,770 4,652,770 5,698,657 - 5,952,186 5,952,186 4,652,770 |
|---|---|
All activities are the result of continuing activities.
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THE NORTON FOUNDATION BALANCE SHEET 5 APRIL 2021
| Notes FIXED ASSETS Investments 6 CURRENT ASSETS Debtors 7 Bank and cash LIABILITIES: Amounts falling due within one year 8 NET CURRENT ASSETS NET ASSETS FUNDS Permanent Endowment |
2021 2020 £ £ 5,794,101 4,604,739 126,386 45,511 35,365 6,160 161,751 51,671 3,666 3,640 158,085 48031 5,952,186 4,652,770 5,952,186 4,652,770 |
|---|---|
Approved by the Trustees on 21 October 2021 and signed on their behalf:
R.H.G. SUGGETT ) ) TRUSTEES B.W. LEWIS )
9
THE NORTON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS 5 APRIL 2021
1. ACCOUNTING POLICIES
a. Basis of accounting
The financial statements are prepared using the historical cost basis of accounting modified to include the revaluation of investments to market value.
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16th July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102.
The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. The most significant area of uncertainty that affects the carry value of assets held by the Trust is the level of future investment return and the performance of investment markets.
The financial statements are presented in sterling which is the functional currency of the charity.
b. Income
All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from investments, including any relevant taxation recoverable, is credited to income in the year in which it is receivable.
c. Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Investment Manager's management fees are charged in the year in which they become due. All other expenses are charged when the liability is incurred.
Where it is necessary to apportion expenditure between cost categories the apportionment is based, wherever possible, upon estimates supplied by the providers of the goods or services. Where this is not possible the Trustees use their own estimates. In either case the apportionment is carried out on a reasonable, justifiable and consistent basis.
d. Investments
Investments are stated at middle market prices at the financial year end.
Profits or losses arising on the revaluation or disposal of investments are added to or deducted from the Permanent Endowment of the Trust.
2. CHARITABLE STATUS
The Trust is a registered charity, in England & Wales, and is exempt from Income, Corporation, and Capital Gains Tax.
3. INCOME FROM FUNDS HELD BY INVESTMENT MANAGERS
| Income from investments listed on a recognised stock exchange Interest on cash held as part of the investment portfolio |
2021 2020 £ £ 157,859 200,978 2 - 157,861 200,978 |
|---|---|
10
THE NORTON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS 5 APRIL 2021 (continued)
4. CHARITABLE ACTIVITIES and GOVERNANCE COSTS
| Grants to individuals Grants to individuals - discretionary Grants to institutions Support costs Correspondent's remuneration Telephone, postage and stationery Bank charges Travelling expenses Data Protection fee Meeting expenses Website Governance costs Correspondent's remuneration Telephone, postage and stationery Travelling expenses Meeting expenses Auditors’ remuneration During the year grants to individuals have been made as follows: Purpose Clothing Education and training Household Holidays Grants made to institutions have been made as follows: Purpose Disability Educational programmes Equipment/buildings Holidays Social activity |
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|---|---|
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THE NORTON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS 5 April 2021 (continued)
4. CHARITABLE EXPENDITURE (continued)
In addition to the above grants awarded directly to individuals, block discretionary grants totalling £19,200 (2020 £24,110) were awarded to 7 (2020 15) sponsors who were responsible, at their discretion, to award grants to individuals in accordance with the foundation's general policy.
Reports received from sponsors have indicated that the average grant awarded to individuals has amounted to £62 (2020 £106).
| Block discretionary grants awarded during the year ended 5 April 2021 | 2021 |
|---|---|
| include payments of £1,000 or more to the following: | |
| South Birmingham Young Homeless Project | £14,000 |
| St. Basil's Centre Ltd | £3,990 |
| Citizens Advice Bureau | £1,210 |
5. REMUNERATION AND RELATED PARTIES
The Trust has no employees.
None of the Trustees receives remuneration or any other benefit from the Trust.
No Trustee received any reimbursement for travelling or other out of pocket expenses incurred on behalf of the Trust.
The Trustees have engaged Richard Perkins & Company as administrator and Correspondent. Mr Richard Perkins, owner of Richard Perkins & Company is a Trustee.
In accordance with powers granted in the Trust Deed, Richard Perkins & Company, a firm of Chartered Accountants has been paid fees and expenses of £13,465 (2020 £13,122) for professional services The amount owing to Richard Perkins & Company at 5 April 2021 was £40 (2020 £40).
6. INVESTMENTS
| Investments listed on a recognised Stock Exchange Add: Purchases during year Add: Net gain on revaluation DEBTORS Other Debtors: Cash in the hands of the Investment Managers Accruals LIABILITIES : AMOUNTS FALLING DUE WITHIN ONE YEAR Carrying value (market value) at 5th April 2020 Less: Disposals during the year at carrying value Carrying value (market value) at 5th April 2021 |
2021 2020 £ £ 4,604,739 5,559,614 2,340,386 1,104,487 (1,947,230) (1,053,767) 796,206 (1,005,595) 5,794,101 4,604,739 £ £ 126,386 45,511 126,386 45,511 3,666 3,640 3,666 3,640 |
|---|---|
7. DEBTORS
8. LIABILITIES : AMOUNTS FALLING DUE WITHIN ONE YEAR
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THE NORTON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS 5 APRIL 2021 (continued)
9. TOTAL RETURN TRANSFERS BETWEEN FUNDS
The Trustees have approved the adoption a total return approach to the management of its investment portfolio in accordance with "The Charities (Total Return) Regulations 2013".On 6th April 2014 the Trust adopted this approach and selected 1 April 1991 as the reference date from which the funds have been analysed between the Endowment and the Unapplied Total Return.
Under this approach, the Trust is permitted to release funds from the Unapplied Total Return to income (unrestricted funds) for spending. This task is essentially to exercise its statutory duty to be even-handed as between present and future beneficiaries, to maintain the balance of the unapplied total return at such a level that it will remain positive in order to maintain the real value of the original investment. The real value of the original investment at 5th April 2021 using the Retail Price Index as the measure of inflation was £4,636,379.
10. SUMMARY OF PERMANENT ENDOWMENT FUND
| SUMMARY OF PERMANENT ENDOWMENT FUND | |||||
|---|---|---|---|---|---|
| Unapplied | |||||
| Endowment | Total Return | Total | |||
| 2021 | 2021 | 2021 | 2020 | ||
| Aggregate value of the assets since the outset of total return | £ | £ | £ | £ | |
| Value at 1 April 1991 | 1,813,010 | - | 1,813,010 | 1,813,010 | |
| Additional endowed capital 1 April 1992 | 246,620 | - | 246,620 | 246,620 | |
| Gain in value | - | 2,593,140 | 2,593,140 | 3,639,027 | |
| Value at 6 April 2020 | Total | 2,059,630 | 2,593,140 | 4,652,770 | 5,698,657 |
| Movements in the year ended 5 April 2021 | |||||
| Gain(Loss) in value | - | 1,228,536 | 1,228,536 | (985,757) | |
| Net Investment income receivable | - | 157,861 | 157,861 | 200,978 | |
| Investment management costs charged against permanent endowment | - | (32,159) | (32,159) | (34,676) | |
| Net unapplied total return allocated to income for the year ended 5 April 2021 | Total |
- | 1,354,238 (54,822) |
1,354,238 (54,822) |
(819,455) (226,432) |
| Net movement for the year ended 5 April 2021 | - | 1,299,416 | 1,299,416 | (1,045,887) | |
| Value at 5 April 2021 | |||||
| Permanent endowment | 2,059,630 | 2,059,630 | 2,059,630 | ||
| Unapplied total return | 3,892,556 | 3,892,556 | 2,593,140 | ||
| Total | 2,059,630 | 3,892,556 | 5,952,186 | 4,652,770 |
The aggregate value of the unapplied total return continues to form part of the permanent endowment fund and does not constitute a separate fund for accounting purposes.
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THE NORTON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS 5 April 2021 (continued)
11. PRIOR YEAR COMPARATIVE OF FINANCIAL STATEMENT ACTIVITIES
| Notes INCOME FROM Investment income Funds held by Investment Managers 3 Bank interest Total Income EXPENDITURE ON Raising Funds Charitable activities 4 Governance costs 4 Total Expenditure Net gains on investment assets NET (EXPENDITURE)/ INCOME Transfers NET MOVEMENT IN FUNDS TOTAL FUNDS brought forward TOTAL FUNDS carried forward 10 |
Unrestricted Permanent 2020 Funds General Endowment Total £ £ £ - 200,978 200,978 - - - - 200,978 200,978 - 34,676 34,676 220,400 - 220,400 6,032 - 6,032 226,432 34,676 261,108 - (985,757) (985,757) (226,432) (819,455) (1,045,887) 226,432 (226,432) - - (1,045,887) (1,045,887) - 5,698,657 5,698,657 - 4,652,770 4,652,770 |
|---|---|
All activities are the result of continuing activities.
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