THE TUFTON CHARITABLE TRUST
REPORT AND ACCOUNTS
YEAR ENDED 31 DECEMBER 2021
Charity number: 801479
THE TUFTON CHARITABLE TRUST
I N D E X
Year ended 31 December 2021
| Page | |
|---|---|
| Report of the trustee | 2-4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the financial statements | 9-17 |
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THE TUFTON CHARITABLE TRUST
R E P O R T O F T H E T R U S T E E
Year ended 31 December 2021
The trustee presents their report and financial statements of the charity for the year ended 31 December 2021. The financial statements have been prepared in according with the accounting policies set out in note 1 of the financial statements and comply with the charity’s trust deed, with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Objectives, activities and achievements for the public benefit
The objectives of the Trust are to benefit any organisation recognised to be exclusively charitable. It carries this out by making donations to appropriate bodies and also making available premises which have been adapted and furnished as a religious institution, known as the Oast Houses, to provide accommodation for Christian groups wishing to hold retreats. The trustee confirms that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, in planning future activities, and setting the grant making policy. The trustee considers that the purpose of activities by the charity satisfy the public benefit requirement as set out in Section 4 of the Charities Act 2011.
Grant making policy
The Trust has established its grant making policy to achieve its objectives for the public benefit. The Trust invites applications for grants from charitable institutions and individuals and to make grants on a selective basis.
Achievement and performance
During the year, the Trust gave a number of grants and continued to operate the Christian retreat centre when coronavirus restrictions on hospitality and leisure permitted. Part of the retreat was permanently closed in early September, with the remaining accommodation closed from 31 December 2021, but the trustee intends to continue making grants to charitable organisations for the foreseeable future.
Financial review
The Trust’s work is reliant on income generated by the Oast Houses, income from investments and donations from Sir Christopher Wates, a director of the trustee company. Donations received in the year were £243,594 (2020 - £2,160), of which £241,579 represented the market value of investments donated by Sir Christopher.
Following the loss of key staff members and other difficulties arising following the coronavirus pandemic, the trustee made the decision to close the Oast House retreat permanently on 8 September 2021 and the remaining cottage from 31 December 2021. This caused a reduction in the retreat income, which totalled £63,098 (2020 - £80,521) and which was fully expended on operating costs. Coronavirus related grants of £39,248 (2020 - £46,938) were received from the government and the local council in the year. The majority of the charity’s staff were on furlough at the beginning of 2021.
The Charity has received a number of applications which meet its criteria. During the year, £694,642 (2020 - £794,125) was paid in grants to support various churches and other charitable organisations. Details of the grants made can be found in the notes to the accounts. An additional £40,000 (2020 - £60,000) of grants have been committed to as at 31 December 2021 in relation to future periods. These grants have been recognised in the Statement of Financial Activities and are shown in creditors as grants payable.
The unrestricted reserves at 31 December 2021 were £437,657 (2020 - £403,344) and the expendable endowment funds were £nil (2020 - £562,638), following the sale of investments to fund charitable donations.
The trustee has considered the charity’s ability to continue as a going concern and has concluded that this basis remains appropriate as the charity is expected to continue its activities for the foreseeable future. Following the closure of the Oast Houses, in the future the charity will rely on the charitable intentions of Sir Christopher Wates who will provide donations to the Trust to further its charitable objectives. In January 2022, Sir Christopher Wates donated investments with a value of £187,868 to the charity to assist with making further charitable grants.
Reserves policy
It is the policy of the trustee to maintain unrestricted funds, which are free reserves of the charity, for making grants to qualifying charities and to meet continuing administrative costs.
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THE TUFTON CHARITABLE TRUST
R E P O R T O F T H E T R U S T E E
Year ended 31 December 2021
Plans for the future
The Trustee will continue its policy to help any organisation through making donations where possible. Following the year end, the property owned by the trust which was previously used as part of the retreat activities was sold and the proceeds are to be used to make further donations.
Structure, governance and management
Governing document
The Tufton Charitable Trust is a trust established under a trust deed dated 10 November 1980. It subsequently became registered as a charity under number 801479 on 3 May 1989. The legal and administrative details of the trust are set out in this report.
Organisation
The trustee throughout the year and since the year end is Wates Charitable Trustees Limited. It has delegated the administration and day to day management of the charity to its directors who are, as described in the trust deed, appointed by it. These principal officers meet regularly to assess grant applications and recommend the approval or refusal of grants.
Risk management
The principal risks faced by the Trust lie in the operational risks from ineffective grant making and the capacity of the Trust to make effective grants.
The operational risk from ineffective grant awards is managed by retaining trustees of sufficient skill and expertise and through the quality of the institutions and people who the charity supports.
Reference and administrative details
Registered Charity number 801479 Registered address Tufton Place Ewhurst Lane Northiam Rye East Sussex TN31 6HL Trustee Wates Charitable Trustees Limited Principal Officers Sir Christopher Wates Lady Wates
The officers are directors of Wates Charitable Trustees Limited.
Independent Examiners
Bankers
Gregory Smye-Rumsby Dixon Wilson 22 Chancery Lane London WC2A 1LS HSBC Private Bank (UK) Limited 78 St James's Street London SW1A 1JB
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THE TUFTON CHARITABLE TRUST
S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S
Year ended 31 December 2021
| Discontinued Continuing Expendable Unrestricted Unrestricted Endowment Note funds funds funds £ £ £ Income and endowments from: Donations and legacies 2 41,263 - 241,579 Charitable Activities: Oast Houses 3 63,098 - - Investment Activities: Investment Income 4 - - - Total income and endowments 104,361 - 241,579 Expenditure on: Raising funds 5 - 1,199 Charitable activities: Oast Houses 6 177,508 - - Grants made 7 - 694,642 - Other 8 - 7,469 - Total expenditure 177,508 702,111 1,199 Net gains on investments - - 6,550 FX (loss)/gain on investments - 3 - Net (expenditure)/income (73,147) (702,108) 246,930 Transfers between funds 104,736 704,832 (809,568) Net movement in funds 31,589 2,724 (562,638) Reconciliation of funds: Total funds brought forward at 1 January 2021 408,844 (5,500) 562,638 Total funds carried forward at 31 December 2021 440,433 (2,776) - |
Total 2021 £ 282,842 63,098 - 345,940 1,199 177,508 694,642 7,469 880,818 6,550 3 (528,325) - (528,325) 965,982 437,657 |
|
|---|---|---|
Income and expenditure derives from both continuing activities and discontinued activities. Discontinued activities relate to the closure of the religious retreat known as the Oast Houses.
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| Note | ¿ | 2071I | î. | î 7470 |
|
|---|---|---|---|---|---|
| Fixedassets | |||||
| Tangibleassets | il | +¿t,¿r5 | +¿t,¿'/J | ||
| investments | l/. | J¿Ort t, | |||
| 427,293 | 753,4t2 | ||||
| Currentassets | |||||
| Debtors | t3 | 8,973 | 14,560 | ||
| Cashatbankand inhand | s0,429 | 345,t88 | |||
| 59,402 | 3t9,748 | ||||
| Liabilities | |||||
| Creditors:Amounts fallingdue withinone year |
t4 | (4e,038) | (t07,t/8) | ||
| Netcurrentassets | 10,364 | 2t2,570 | |||
| Totalassetslesscurrentliabilities | 437,657 | 965,982 | |||
| Netàssèts | 437,657 | 965,982 | |||
| The funds ofthecharity: | |||||
| Unrestrictedlncomefunds | t5 | 437,657 | 403,344 | ||
| ExpendableEndowmentfunds | t5 | 5ó2,638 | |||
| 437,657 | 965,982 |
THE TUFTON CHARITABLE TRUST
S T A T E M E N T O F C A S H F L O W S
Year ended 31 December 2021
| Expendable Unrestricted Endowment Note funds funds £ £ Cash flows from operating activities: Net cash provided by (used in) operating activities 16 (827,811) (1,199) Cash flows from investing activities: Purchase of fixed asset investments - - Proceeds from sale of fixed asset investments - 574,248 Interest received - - Fixed interest - - Dividends received - - Transfers between funds 809,568 (809,568) Net cash provided by (used in) investing activities 809,568 (235,320) Change in cash and cash equivalents in reporting period (18,243) (236,519) Cash and cash equivalents at the beginning of reporting period 68,669 236,519 Change in cash and cash equivalents due to exchange rate movements 3 - Cash and cash equivalents at the end of reporting period 50,429 - |
Total 2021 £ (829,010) - 574,248 - - - - 574,248 (254,762) 305,188 3 50,429 |
Total 2020 £ (1,029,849) (38,396) 708,542 737 15,506 1,258 - 687,647 (342,202) 647,394 (4) 305,188 |
|---|---|---|
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
1. Accounting policies
(a) Basis of preparation and assessment of going concern
The financial statements of the charity have been prepared in accordance with 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 (FRS 102), the applicable UK Accounting Standards and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.
The Trust constitutes a public benefit entity as defined by FRS 102.
The trustee has assessed the Trust’s ability to continue as a going concern in light of the coronavirus pandemic which continued to affect the Trust’s activities in 2021.
The Oast Houses reopened as a retreat from May 2021 following its previous closure under government guidelines to mitigate the spread of coronavirus. During this time, some expenses decreased in line with the reduction in activity, but there were a number of fixed costs which still needed to be met. The trustee mitigated the financial risks associated with the temporary closure of the Oast Houses by utilising the government’s Coronavirus Job Retention Scheme and by applying for other coronavirus related grants from the government and the local council.
Following the loss of key staff members and other difficulties arising after the reopening of the retreat, the trustee made the decision to close the Oast Houses permanently, with the majority of the activities ceasing from 8 September 2021. This contributed to the reduction of income and expenditure from these activities in 2021.
In future the charity will rely on the charitable intentions of Sir Christopher Wates who will provide donations to the Trust to further its charitable objectives. In January 2022, Sir Christopher Wates donated investments with a value of £187,868 to the charity to assist with making further charitable grants. In June 2022, the freehold property owned by the trust was sold to provide funds for further grants.
The trustee has committed to a number of grants to be paid in future years and there are sufficient funds within the Trust to meet these commitments. The majority of grants made each year are subject to the discretion of the trustee who will only make such grants if the charity has sufficient funds available.
Having considered the above, the trustee considers that the Trust is able to continue as a going concern and the accounts have been prepared on this basis.
(b) Income
Investment income is recognised when the charity becomes entitled to dividend and interest income in the period in which it is earned.
Donations and grants are recognised once the charity is entitled to receive them, receipt is probable and there is sufficient evidence that any attached conditions will be met, if any.
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.
(c) Expenditure
All expenditure is recognised where there is a legal or constructive obligation to pay. Where costs cannot be directly attributed to an expenditure heading, they will be allocated to activities on a basis consistent with the use of resources.
(d) Tangible Fixed Assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets other than freehold land and buildings at rates calculated to write off the cost or valuation each asset to its estimated residual value on a straight line basis over its expected useful life, as follows: Furniture, fittings and equipment - five to ten years
The freehold property is not depreciated because the residual value is estimated to be equal to or higher than the cost.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
1. Accounting policies (continued)
(e) Taxation
The charity is exempt from tax on its charitable activities. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
(f) Fund Accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
(g) Pension costs and other-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
(h) Financial asset investments
Investments are stated at market value at the reporting date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities.
2. Donations and legacies
| Continuing Expendable Unrestricted Endowment funds funds £ £ Donations 2,015 241,579 Furlough grant - CJRS 13,041 - Other government grants 26,207 - 41,263 241,579 |
Expendable Unrestricted Endowment 2021 funds funds £ £ £ 243,594 2,160 - 13,041 19,938 - 26,207 27,000 - 282,842 49,098 - |
2020 £ 2,160 19,938 27,000 |
|---|---|---|
| 49,098 |
Other government grants comprise coronavirus related grants received from Rother District Council in respect of the Oast House activities. None of the grants received in the year had conditions attached.
3. Income from charitable activities
The Oast Houses fee income
| 2021 £ 63,098 63,098 |
2020 £ 80,521 80,521 |
|---|---|
Income from charitable activities in both years was attributable to the unrestricted income fund.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
| 4. Investment income Dividend income Fixed interest income Deposit account interest |
2021 £ - - - - |
2020 £ 1,258 15,506 737 |
|---|---|---|
| 17,501 |
Investment income in both years was attributable to the unrestricted income fund.
| 5. Raising funds Investment management costs: Portfolio management |
2021 £ 1,199 1,199 |
2020 £ 6,547 6,547 |
|---|---|---|
Investment management costs in both years are attributable to the expendable endowment fund.
6. Charitable activity costs
| Oast Houses - Wages - Pensions - Operations (utilities, council tax, repairs etc.) Grants made |
Grant funding of Direct activities costs (see note 7) £ £ 70,754 - 1,508 - 105,246 - - 694,642 177,508 694,642 |
Total 2021 £ 70,754 1,508 105,246 694,642 872,150 |
Total 2020 £ 84,359 2,114 148,901 794,125 1,029,499 |
|---|---|---|---|
Charitable activity costs in both years are attributable to the unrestricted income fund.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
| 7. Grants payable Grants made Grants made to charitable institutions: Access 4 Alpha International Bob Champion Cancer Trust Church Revitalisation Trust Demelza Hospice Care for Children Frontiers Glyndebourne Productions Holy Trinity, Hastings HOPE Together LICC Mission Aviation Fellowship Off The Fence Relational Peacebuilding Initiatives ReSource Spinnaker Trust St Michael's Hospice Stowe School Foundation The Archbishops' Council The Bible Reading Fellowship The Ghurka Welfare Trust The London City Mission The Royal Free Charity Other grants below £5,000 |
2021 £ 694,642 694,642 5,000 60,000 5,000 150,000 - 5,000 20,000 57,000 - - 15,000 15,000 - - - - 250,000 - - - 30,000 73,642 9,000 694,642 |
2020 £ 794,125 794,125 - - - 150,000 5,000 - 20,000 191,636 20,000 - 15,000 30,000 5,000 7,500 7,000 30,000 - 14,000 10,000 5,000 - 269,389 14,600 794,125 |
|---|---|---|
Grants payable in both years were attributable to the unrestricted income fund.
| 8. Support costs Other resources expended: Governance costs Bank charges Governance Costs Accountancy Independent examination |
2021 £ 7,153 316 7,469 6,153 1,000 7,153 |
2020 £ 5,008 474 5,482 4,758 250 5,008 |
|---|---|---|
Support costs in both years were attributable to the unrestricted income fund.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
9. Trustees’ remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 (2020 - none).
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2021 (2020 - none).
| 10. Staff Costs Wages and salaries Other pension costs The average monthly number of employees during the year was as follows: Oast Houses operations No employees received emoluments in excess of £60,000. |
2021 £ 70,754 1,508 72,262 9 9 |
2020 £ 84,359 2,114 86,473 14 14 |
|---|---|---|
Staff costs were fully allocated to the Oast Houses expenditure.
11. Tangible fixed assets
| 11. Tangible fixed assets |
|||
|---|---|---|---|
| Freehold | Fixtures | Total | |
| property | and fittings | 2021 | |
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2021 | 427,293 | 142,643 | 569,936 |
| Disposals | - | (142,643) | (142,643) |
| ___ | ___ | ___ | |
| At 31 December 2021 | 427,293 | - | 427,293 |
| Depreciation | |||
| At 1 January 2021 | - | 142,643 | 142,643 |
| Charge for year | - | - | - |
| Disposals | - | (142,643) | (142,643) |
| - | ___ | ___ | ___ |
| At 31 December 2021 | - | - | - |
| Net book value | |||
| At 31 December 2021 | 427,293 | - | 427,293 |
| ___ | ___ | ___ | |
| At 31 December 2020 | 427,293 | - | 427,293 |
The freehold property owned by the Trust is occupied by an employee to assist with the Trust’s charitable activities and is therefore not classified as an investment property.
The freehold property is not depreciated because the residual value is estimated to be equal to or higher than the cost. The Trust rents the Oast Houses at an annual rent of one peppercorn.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
| 12. Fixed asset investments – listed investments Market value at start of year Additions Disposals Realised gains on investment assets Unrealised losses on investment assets Market value at end of year Historical cost as at 31 December 2020 Historical cost as at 31 December 2021 There are no investment assets at the year end. |
2021 £ 326,119 - (332,669) 6,550 - - 326,162 - |
2020 £ 990,896 38,396 (708,542) 7,201 (1,832) 326,119 980,367 326,162 |
|---|---|---|
| 13. Debtors: Amounts falling due within one year Trade debtors Other debtors |
2021 £ - 8,973 8,973 |
2020 £ 8,970 5,590 14,560 |
|---|---|---|
| 14. Creditors: Amounts falling due within one year Trade creditors Grants payable Accruals Other creditors |
441 40,000 4,395 4,202 49,038 |
6,055 60,000 8,813 32,310 107,178 |
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
15. Trust funds
Movement in funds:
| Unrestricted funds Expendable Endowment funds Total funds |
At 1 January 2021 £ 403,344 562,638 965,982 |
Incoming Resources Gains and resources expended losses £ £ £ 104,361 (879,619) 3 241,579 (1,199) 6,550 345,940 (880,818) 6,553 |
Transfer At between 31 December funds 2021 £ £ 809,568 437,657 (809,568) - - 437,657 |
|---|---|---|---|
Analysis of net assets:
| Expendable Unrestricted Endowment Funds funds £ £ Fixed assets 427,293 - Net current assets 10,364 - Total funds 437,657 - |
Total £ 427,293 10,364 437,657 |
|---|---|
Comparative for the movement in funds:
| Unrestricted funds Expendable Endowment funds Total funds |
At 1 January 2020 £ 818,120 1,036,905 1,855,025 |
Incoming Resources Gains and resources expended losses £ £ £ 147,120 (1,034,981) (4) - (6,547) 5,369 147,120 (1,041,528) 5,365 |
Transfer At between 31 December funds 2020 £ £ 473,089 403,344 (473,089) 562,638 - 965,982 |
|---|---|---|---|
Comparative for the analysis of net assets:
| Expendable Unrestricted Endowment Funds funds £ £ Fixed assets 427,293 326,119 Net current assets (23,949) 236,519 Total funds 403,344 562,638 |
Total £ 753,412 212,570 965,982 |
|---|---|
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects. Expendable Endowment funds comprise those funds which the trustees have invested in order to generate income to fund donations.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
16. Reconciliation of net income/(expenditure) to the net cash flow from operating activities
| Expendable Unrestricted Endowment funds funds £ £ Net expenditure for the reporting period (as per the statement of financial activities) : (775,255) 246,930 Adjustments for: (Gains)/losses on investments - (6,550) Bank interest received - - Dividends and interest received from investments - - Decrease/(increase) in debtors 5,587 - Increase in creditors (58,140) - Gift of shares from C Wates - (241,579) (Gains)/losses on foreign exchange (3) - Net cash used in operating activities (827,811) (1,199) |
Total Total 2021 2020 £ £ (528,325) (889,043) (6,550) (5,369) - (737) - (16,764) 5,587 (2,293) (58,140) (115,647) (241,579) - (3) 4 (829,010) (1,029,849) |
|---|---|
17. Pension commitments
The trust has a defined contribution scheme and at the balance sheet date £0 (2020 - £232) contributions were owed.
18. Related party disclosures
The short term leasehold land and buildings are being leased from Sir Christopher Wates, a director of Wates Charitable Trustees Limited. The current lease was renewed in 2014 at a peppercorn rent. The land and buildings are required to be used as a religious institution for educational purposes and for the spiritual and physical education and refreshment of visitors. Following the closure of the Oast Houses, the lease was terminated after the year end.
During the year, Sir Christopher Wates contributed £1,900 (2020 - £1,500) to the costs of the trust and donated investments with a value of £241,579 to assist in furthering the trust’s charitable objectives.
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THE TUFTON CHARITABLE TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2021
| 19. Financial instruments Financial assets measured at fair value through income and expenditure Financial assets measured at amortised cost Financial liabilities measured at amortised cost |
2021 £ - 59,402 59,402 48,996 |
2020 £ 326,119 317,582 643,701 106,513 |
|---|---|---|
Financial assets measured at fair value through income and expenditure comprised fixed asset investments.
Financial assets measured at amortised cost comprise cash at bank, debtors and accrued income.
Financial liabilities measured at amortised cost comprise accruals and grants payable.
20. Non-adjusting post balance sheet events
Following the closure of the Oast Houses, the freehold property owned by the Trust was sold on 29 June 2022 for gross proceeds of £620,000.
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