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2020-12-31-accounts

The Summerfield Charitable Trust

Annual Report and Accounts

31 December 2020

Charity Registration Number 802493

Contents

Reports

Reference and administrative information 2
Trustees’ report 3
Independent auditor’s report 11
Accounts
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Principal accounting policies 18
Notes to the accounts 20

The Summerfield Charitable Trust

Reference and administrative information

Trustees Mr D Owen (Chairman)
Mrs V Arbuthnott
Mrs K Hicks Beach
Mr R Mortlock
Mrs A Shield
Principal office P O Box 287
Cirencester
Gloucestershire
GL7 9FB
Telephone 01285 721211
Facsimile 01285 720843
Charity registration number 802493
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Investment managers Sarasin & Partners LLP
Juxon House
100 St. Paul's Churchyard
London
EC4M 8BU
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Property advisors 3Sixty Real Estate
16 Whiteladies Road
Bristol
BS8 2LG
Solicitors Charles Russell Speechleys LLP
Compass House
Lypiatt Road
Cheltenham
GL50 2QJ

The Summerfield Charitable Trust 2

Trustees’ report 31 December 2020

The trustees present their statutory report together with the accounts of The Summerfield Charitable Trust for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 19 of the attached accounts and comply with the charity’s trust deed, applicable laws and the requirements of 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 United Kingdom and Republic of Ireland (FRS 102).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

The Summerfield Charitable Trust is a charitable trust governed by a trust deed dated 1 March 1989 which was approved by the Charity Commission. The charity is registered under the Charities Act 2011, Charity Registration Number 802493. Following the death of the settlor, the statutory power of appointment of new trustees by the continuing trustees now applies.

The names of the trustees who served during the year are set out as part of the reference and administrative information on page 1 of these annual report and accounts. Brief biographical details of continuing trustees are given below:

Mr David Owen was born and brought up in Gloucestershire, studying at Brockworth School, before gaining a degree in Business Studies from Liverpool John Moores University. He spent ten years in the North West working across the education sector and as MD of a start-up, high-growth, training business. For the last twenty years he has worked in Gloucestershire, first as Director of Enterprise and Innovation at the University of Gloucestershire and now as Chief Executive of First Local Enterprise Partnership. He is currently a director of Gloucestershire Voluntary & Community Sector Alliance and Gloucestershire Enterprise Limited and is a member of the International Advisory Group of the Economic Development Council. He lives in Stroud with his two teenage daughters.

Mrs Vanessa Arbuthnott is from Cumbria, having gained a degree in nursing and SRN she became an intensive care nurse. Having married she retrained with a PGCE to become a primary school teacher in London. After having children, she attended art school to study surface print, which led to her starting her own fabric mail order company in 2000. In 2012 she created an artist residency in her house; she and her students take art classes out to vulnerable groups in the community. This work has given her an insight into needs in Gloucestershire.

Mrs Kate Hicks Beach lives near Cirencester. She went to Northleach Grammar School and gained a degree in Sanskrit and Religion at Edinburgh University, before going to the Royal Scottish Academy of Music to study singing. For twenty-five years she has worked as a professional singer, teacher and choir leader. Kate was on the board of the Gloucestershire Historic Churches Trust and was a Trustee of Home-Start Cotswolds. She runs a programme of Mindful Singing Groups for the Gloucestershire based charity Mindsong, recruiting, training and supporting volunteers to sing regularly with care home residents living with mid to late stage dementia. She works part time at Farmor’s School in Fairford and runs a 70 strong community choir in Coln St. Aldwyns.

The Summerfield Charitable Trust 3

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Mr Roger Mortlock joined Summerfield’s board of trustees in May 2019. He is CEO of the Gloucestershire Wildlife Trust, the county’s largest environmental charity with 28,000 members and over 60 nature reserves. He joined GWT in 2013 from the Soil Association where he was Deputy Director and Chair of the Food for Life Partnership. He is also Chair of the Soil Association Land Trust which holds productive land in trust for future generations and a Trustee of the Bat Conservation Trust and Hawkwood College. He is Vice Chair of the Gloucestershire Local Nature Partnership. He has a particular interest in ecological land management, and programmes that connect people and nature, especially in relation to health and wellbeing.

Mrs Antonia Shield joined The Summerfield Trust board of trustees in November 2020. Antonia is Managing Partner of BPE Solicitors in Cheltenham having previously spent 10 years heading up the firm’s large property team. Antonia has undertaken a wide range of commercial property work throughout her career including development and regeneration projects. Antonia did her first degree in Architectural History and she remains passionate about the built environment both historic and contemporary, enjoys art, antiques and gardening.

On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by their co-trustees on the history of the trust, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up-to-date on any changes in legislation. The trustees have agreed a succession policy and trustee specification. The policy states that the period of tenure for new trustees would normally be five years, after which it can be renewed for a further five years.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and accounts 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 accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The Summerfield Charitable Trust 4

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Statement of trustees’ responsibilities (continued)

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 accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity’s 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 financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. Board meetings are held throughout the year to review developments with regard to the charity, its grant giving activities and to make any important decisions. In addition, they periodically conduct a wide-ranging strategic review. This considers all aspects of grantmaking, and reviews the investment criteria and the asset allocation. When necessary, the trustees seek advice and support from the charity’s professional advisers including investment managers, solicitors and accountants. Mrs Lavinia Sidgwick, the trust’s administrator, is responsible for the day-to-day management of the charity’s activities, and the implementation of policies with responsibility to collate the various grant requests and payments and to maintain the accounting records. She co-ordinates a team of internal advisers who periodically assess applications on behalf of the trust.

The Summerfield Charitable Trust has no employees. The key management personnel comprise the trustees only. Trustees do not receive remuneration for their role as trustees.

The trust’s investment managers are Sarasin & Partners LLP, whose brief is to advise, develop and manage an investment portfolio on a discretionary basis, with due regard to certain ethical criteria selected by the trustees. At their meetings the trustees review the performance of investments, and the investment managers attend one meeting a year to update the trustees in detail on the portfolio.

The trustees review the proposals for grants to be made and approve such grants as appropriate. They also review progress on major on-going grant programmes.

The trustees have taken advice from the charity’s solicitors on whether or not to incorporate the charity and based on the advice provided, have decided against incorporation at this stage as the risks and costs of incorporating outweigh the consequences of remaining unincorporated.

The Summerfield Charitable Trust

5

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management

In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks affecting the trust. The trustees have identified five main areas where risks may exist:

Governance and management looks at the risk the trust might suffer from a lack of direction, the skills and training of the trustees and the good use of its funds.

Operational looks at the risk inherent in the trust’s activities including supporting unsuitable appeals from charities, continuity of staff, lack of a disaster recovery policy, etc.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputational looks at possible damage to the trust’s reputation, through association with unsuitable charities, or with inappropriate activities.

Laws, regulations, external and environmental looks at the effects of government policies, the consequences of non-compliance with laws and regulations and the effect of external matters on the trust’s principal asset, its investment portfolio.

The key risks facing the trust, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

The Summerfield Charitable Trust

6

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

Having assessed the major risks to which the charity is exposed, in particular those relating to its investments and its finances, the trustees believe that by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

OBJECTIVES, ACTIVITIES AND RELEVANT POLICIES

Charitable objectives and activities

The objects of the trust are generally charitable. The main activity is grant making. Charities applying to the trust must either be based in the county of Gloucestershire or they must be engaged in a project that is of specific benefit to residents of the county. Please check the charity’s website for more details.

The trustees currently aim to receive an income of approximately £300,000 per annum on their investments, and they then aim to make grants of a similar amount in accordance with the guidelines set out in the grant making policy below.

Public benefit

In setting the charitable objectives and planning future activities, the trustees have considered the Charity Commission’s guidance on public benefit. Significant activities undertaken in order to carry out the charity’s purposes for the public benefit are described under the “Grant making policy” section below.

Investment policy

The charity has a portfolio of listed investments with a market value as at 31 December 2020 of £10,215,354 (2019 - £9,861,277). It also has a commercial property with a market value of £730,000 (2019 - £1,000,000).

There are no restrictions on the charity’s power to invest. The investment strategy is agreed between the trustees and the investment managers, and is regularly reviewed. Sarasin & Partners have an exclusionary ethical policy in place for the Summerfield Charitable Trust. Details of this policy can be found in the Sarasin Guide to Ethical Exclusions accessible via the Sarasin & Partners website.

The Summerfield Charitable Trust

7

Trustees’ report 31 December 2020

OBJECTIVES, ACTIVITIES AND RELEVANT POLICIES (continued)

Grant making policy

The trustees are particularly interested in helping the arts, museums and the built heritage; the environment and natural heritage; community work; education, sport and recreation; and vulnerable or disadvantaged sectors of society. Potential applicants are asked to read the trust’s website which gives more details.

Applicants must complete an on-line application form. These will be acknowledged on receipt and applicants will be advised on the next stage. Contact details are as follows:

The Summerfield Charitable Trust Mrs Lavinia Sidgwick Administrator P.O. Box 287 Cirencester Gloucestershire GL7 9FB e: admin@summerfield.org.uk w: www.summerfield.org.uk Tel: 01285 721211

ACHIEVEMENTS AND PERFORMANCE

Review of activities

Total investment income (comprising income from listed investments, investment fee rebates, investment property and bank interest) received in the year amounted to £416,682 (2019 - £360,581), which equates to a yield of approximately 3.8% (2019 – 3.3%). During the year, the trustees awarded grants totalling £305,898 (2019 - £704,506) in accordance with the charity’s grant giving policy set out above. The level of grant giving has been lower this year due to a change in strategy being adopted in light of Covid-19 (further details provided in future plans). Details of the grants made are provided in note 4 to the accounts.

During the 2014 financial year the trustees of The Summerfield Charitable Trust were provided with the opportunity to acquire the assets of The Grace Fry Charitable Trust (Charity Registration number: 1114160) subject to certain conditions being satisfied in terms of how the funds may be distributed. The trustees agreed to take on this opportunity and assets of £314,536 were transferred in March 2015. As part of this transfer The Summerfield Charitable Trust has committed to awarding a grant of £10,000 each year to further the original aims of the Grace Fry Charitable Trust.

Investment performance

The trust achieved an income yield on its listed investments of 3.3% (2019 - 2.3%) based on the average market value of the portfolio. The trustees are satisfied with the performance of the investments and remain satisfied that their investment objectives are being met.

The Summerfield Charitable Trust 8

Trustees’ report 31 December 2020

FINANCIAL REVIEW

Results for the year

A summary of the year’s results can be found on page 15 of this report and accounts.

During the year ended 31 December 2020, total income amounted to £416,682 (2019 - £360,581), largely being income arising from the charity’s investment portfolio plus investment manager fee rebates. The cost of raising funds, comprising investment managers’ and property managers’ fees, amounted to £1,038 (2019 - £68,603). The is due to the receipt of investment fee rebates in 2020 (note 1) compared to the investment manager fees noted in 2019 (note 2).

The trustees made grants to 37 (2019 - 75) institutions totalling £305,898 (2019 - £704,506); however £55,000 worth of pledged grants were withdrawn (2019: £nil). A reconciliation of the grants payable and grant commitments is disclosed in note 4. Support and governance costs of the charity totalled £59,731 (2019 - £51,896). Overall expenditure of the charity for the year totalled £311,667 (2019 - £815,005). 98% (2019 - 86%) of the total annual expenditure therefore relates to direct grant giving. The grant expenditure when expressed as a percentage of the total income derived from the charity’s fixed asset investments equates to 73% (2019 - 195%). The net income for the year before investment gains and losses was £105,015 (2019 – net expenditure of £454,424).

There was a net gain on the disposal and revaluation of listed investments during the year of £581,191 (2019 - net gain of £1,381,111) and also a revaluation loss on the investment property of £270,000 (2019 – net gain of £175,000). This resulted in an overall net increase in the funds of the charity during the year of £416,206 (2019 – net increase of £1,101,687). At 31 December 2020, all funds of the charity were unrestricted in nature and totalled £11,036,970 (2019 - £10,620,764).

Reserves policy and financial position

Reserves policy

The Trust is operated as a grant giving charity, and the trustees’ policy is to seek to distribute the income arising in each financial year. The trustees also have power to utilise capital insofar as they shall think fit.

Financial position

The balance sheet shows total unrestricted funds of £11,036,970 (2019 - £10,620,764) which is represented by £10,945,354 (2019 - £10,861,277) of fixed asset investments, £91,616 of net current assets (2019 - £185,513 net current liabilities) and £nil (2019 - £55,000) of creditors due in more than one year. The charity’s sole source of funding is investment income from the investments which are wholly unrestricted. As stated in the reserves policy the trustees seek to distribute the income arising in each financial year. The size of the portfolio sustains and supports the level of grant making income, which the trustees would wish to maintain and enhance over time. The trustees consider that the level of reserves is adequate for this purpose but not excessive.

The Summerfield Charitable Trust 9

Trustees’ report 31 December 2020

FUTURE PLANS

The trustees reviewed the charity’s strategy in Autumn 2020, in the light of the Covid-19 pandemic, and have agreed a renewed focus on two key areas for 2021:

In 2021, the trustees expect to distribute most of the charity’s grants at less than £10,000 with one or two larger grants during one year.

On behalf of the trustees:

Trustee

Approved by the trustees on:

The Summerfield Charitable Trust

10

Independent auditor’s report 31 December 2020

Independent auditor’s report to the trustees of The Summerfield Charitable Trust

Opinion

We have audited the accounts of The Summerfield Charitable Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. 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 accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

The Summerfield Charitable Trust 11

Independent auditor’s report 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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 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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

The Summerfield Charitable Trust 12

Independent auditor’s report 31 December 2020

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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Independent auditor’s report 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

 enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. 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 auditor's 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.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Summerfield Charitable Trust 14

Statement of financial activities Year to 31 December 2020

Notes 2020
Unrestricted
funds
£		 2019
Unrestricted
funds
£
Income from:
Investments and interest receivable
1
Total income
Expenditure on:
Raising funds
2
Charitable activities
3
Total expenditure
Net income (expenditure) before gains and losses on investments
Gains and losses on investments
Realised gains and (losses) on disposal of listed investments
8
Unrealised gains on revaluation of listed investments
8
Revaluation (losses) gains on investment property
8
Net income and net movement in funds for the year
Total funds brought forward at 1 January 2020

Total funds carried forward at 31 December 2020
416,682		 360,581
416,682 360,581



1,038

310,629		 68,603
746,402
311,667 815,005

105,015



(3,427)


584,618


(270,000)
 (454,524)
262,349
1,118,762
175,000
416,206

10,620,764
 1,101,687
9,519,077
11,036,970 10,620,764

All recognised gains and losses are included in the above statement of financial activities.

All of the charity’s activities derived from continuing operations during the above two financial periods.

The Summerfield Charitable Trust

15

Balance sheet Year To 31 December 2020

Notes 2020
£		 2020
£		 2019
£		 2019
£
Fixed assets
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
10
Creditors: amounts falling due
within one year
11
Net current assets (liabilities)
Creditors:amounts falling due
after more than one year
12
Total net assets
The funds of the charity:
Unrestricted funds		 7,080
113,398		 10,945,354
91,616
—		 58,098
38,169		 10,861,277
(185,513)
(55,000)
120,478
(28,862)		 96,267
(281,780)
11,036,970 10,620,764
11,036,970 10,620,764

Approved by the trustees and signed on their behalf by:

Trustee

Approved on:

The Summerfield Charitable Trust

16

Statement of cash flows Year to 31 December 2020

Notes
2020
£		 2019
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
B
Cash and cash equivalents at 31 December 2020
B
**(547,436) **		 (893,761)
**(547,436) ** (893,761)

395,550
271,126
**(44,011) **		 304,581
10,259,053
(9,967,847)
622,665 595,787

75,229


38,169
 (297,974)
336,143

113,398		 38,169

Notes to the statement of cash flows for the year to 31 December 2020.

A Reconciliation of net movement in funds to net cash flow from operating activities

2020
£		 2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Net gains on investments
Dividends and interest from investments
Increase (decrease) in debtors
Decrease in creditors
Net cash used in operating activities		 416,206
(311,192)
(395,550)
51,018
(307,918)		 1,101,687
(1,556,111)
(304,581)
(49,174)
(85,582)
(547,436) (893,761)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2020
£		 2019
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 37,408
75,990		 18,074
20,095
113,398 38,169

C Analysis of changes in net debt

At 1
January
2020
£		 Cash
flows
£
At 31
December
2020
£
Cash at bank and in hand
Cash held by investment managers
Total		 18,074
20,095		 19,334
55,895		 37,408
75,990
38,169 75,229 113,398

The Summerfield Charitable Trust 17

Principal accounting policies 31 December 2020

Basis of accounting

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2020.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

No significant accounting estimates were required or made by the Trustees in the preparation of the financial statements.

The full impact of the global coronavirus pandemic that emerged in March 2020 is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, suppliers and the wider economy. Estimates used in the accounts, particularly with respect to the value of the investment property and listed investments (see note 8), are subject to a greater degree of uncertainty and volatility.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above.

Income

Income is recognised in the period in which the charity is entitled to receipt, receipt is probable and the amount can be measured with reasonable certainty.

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Principal accounting policies 31 December 2020

Expenditure and the basis of apportioning costs

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.

Expenditure comprises the following:

Support costs represent indirect charitable expenditure and governance costs.

Indirect charitable expenditure comprises costs necessary to carry out the primary purpose of the charity including the administrator’s fees, computer support, office rental, telephone and insurance costs.

Governance costs are the costs associated with the governance arrangements of the charity. Included within this category are costs associated with the strategic as opposed to day to day management of the charity’s activities.

Fixed asset investments

Fixed asset investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.

The Summerfield Charitable Trust

19

Notes to the accounts 31 December 2020

1 Investments and interest receivable 2020
£		 2019
£
Income from listed investments
. UK equities and unit trusts
. Government stock and UK fixed interest
. Overseas equities and unit trusts
. Overseas fixed interest
. Property funds
. Alternatives
Income from investment property
. Rental income
. Dilapidations
Interest receivable
Investment manager fee rebates		 —
—
—
—
—
339,082		 145,281
30,247
17,818
5,955
4,860
21,458
339,082 225,619
56,340
—		 77,651
56,000
56,340 133,651
128 1,311
21,132 —
416,682 360,581

2 Raising funds

Raising funds
2020
£		 2019
£
Investment managers’ fees
Property managers’ fees		 —
1,038		 36,094
32,509
1,038 68,603

3 Charitable activities

Charitable activities
2020
£		 2019
£
Grants payable (note 4)
Grants reclaimed (note 4)
Pledges withdrawn (note 4)
Support costs (note 5)		 305,898
—
(55,000)
59,731		 704,506
(10,000)
—
51,896
310,629 746,402

The Summerfield Charitable Trust

20

Notes to the accounts 31 December 2020

4 Grants payable

The charity makes grants to institutions in accordance with its grant making policy set out in the trustees’ report.

The grants payable during the year were for the following purposes:

Arts, museums and built heritage
Community work
Disadvantaged and vulnerable sectors
Education, sport and recreation
Environment and natural heritage		 2020
Number		 2020
Value
£		 2019
Number		 2019
Value
£
8
5
17
2
5		 48,670
20,430
203,798
14,000
19,000		 14
11
32
15
3		 72,528
52,650
317,398
54,704
207,226
37 305,898 75 704,506

A full list of the institutional grants is available from the charity’s principal office on request.

A reconciliation of the grants payable and grants commitments figures shown in these accounts is as follows:

2020
£
305,898
—
(55,000)
 2020
£		 2019
£		 2019
£
Grant commitments at 1 January 2020
. Grants committed in the year
. Grants reclaimed
. Pledges withdrawn
Total grants to be paid
Less: Grants paid in year (net of reclaims)
Grant commitments at 31 December 2020
Grant commitments can be split as follows:
Commitments due within one year (note 11)
Commitments due after one year (note 12)		 314,667
250,898		 704,506
(10,000)
—		 393,334

694,506
565,565
(560,565)		 1,087,840
(773,173)
5,000 314,667
5,000
—		 259,667
55,000
5,000 314,667

In addition to the above commitments at 31 December 2020, as a result of the donation of assets from the Grace Fry Charitable Trust, the charity is committed to granting a sum of £10,000 per annum to support the aims of the original Grace Fry Charitable Trust. This commitment has not been recognised above.

The Summerfield Charitable Trust 21

Notes to the accounts 31 December 2020

5 Support costs

Support costs
2020
£		 2019
£
Administrator’s fees
Postage, printing and stationery
Computer consultancy and support (including training)
Telephone
Insurance
Office rent
Other expenses
Governance
Auditor’s remuneration
. Statutory audit – current year
. Other services
Trustees’ meeting expenses		 19,110
836
3,512
1,142
1,986
3,104
19,164		 23,000
1,118
1,464
1,046
1,971
2,972
7,367
48,854 38,938
4,646
5,679
552		 4,635
5,500
2,823
10,877 12,958
59,731 51,896

All support costs are attributable to the charitable activities of the trust.

6 Trustees’ remuneration

No trustee received any remuneration in respect of their services as a trustee during the year ended 31 December 2020 (2019 - none).

During the year ended 31 December 2020, no out of pocket travel expenses were reimbursed to trustees (2019 - £565 to three trustees).

7 Taxation

The Summerfield Charitable Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

8 Fixed asset investments

At 31 December 2020 fixed asset investments comprised:

2020
£		 2019
£
Freehold investment property
Listed investments		 730,000
10,215,354		 1,000,000
9,861,277
10,945,354 10,861,277

The Summerfield Charitable Trust 22

Notes to the accounts 31 December 2020

8 Fixed asset investments (continued)

Movements on each category of investment are summarised below.

Freehold investmentproperty 2020
£		 2019
£
Market value at 1 January 2020
Revaluation (loss) gain
Market value at 31 December 2020
Cost at 31 December 2020		 1,000,000
(270,000)		 825,000
175,000
730,000 1,000,000
1,106,417 1,106,417

The trustees are of the opinion that the property in Bristol has an open market value of £730,000. This is based on negotiations held with a buyer in 2021 as discussed in note 14.

Less certainty, and a higher degree of caution, should be attached to the valuation of the investment property than would normally be the case. Given the unknown future impact that Covid-19 might have on the real estate market, the valuation of this property will remain under review.

Listed investments 2020
£		 2019
£
Market value at 1 January 2020
Additions at cost
Disposals at book value (proceeds: £271,126; loss: £3,427)
Net unrealised investment gains
Market value at 31 December 2020
Cost at 31 December 2020		 9,861,277
44,011
(274,552)
584,618		 8,771,372
9,967,847
(9,996,704)
1,118,762
10,215,354 9,861,277
9,241,322 9,460,776

At 31 December 2020, 100% of the listed investments were held in Sarasins Endowments Fund Class A Inc.

9 Debtors

9 Debtors
10 2020
£		 2019
£
Other debtors
Prepayments		 5,094
1,986		 56,000
2,098
7,080 58,098
Cash at bank and in hand
Cash at bank and in hand
2020
£		 2019
£
Sarasin / Smith & Williamson Investment Management
CAF Bank Ltd		 75,990
37,408		 20,095
18,074
113,398 38,169

The Summerfield Charitable Trust

23

Notes to the accounts 31 December 2020

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2020
£		 2019
£
Grants payable (note 4)
Accruals
VAT payable		 5,000
23,862
—		 259,667
15,890
6,223
28,862 281,780
Creditors: amounts falling due after more than one year 2020
£		 2019
£
Grantspayable(note 4) — 55,000

12 Creditors: amounts falling due after more than one year

13 Related party transactions

Roger Mortlock, a trustee of Summerfield Charitable Trust, is also a trustee of Hawkwood College. During the year ended 31 December 2020, a grant amounting to £8,870 was awarded to Hawkwood College - Hawkwood Centre for Future Thinking. The grant was paid in full during the year ended 31 December 2020.

The spouse of Vanessa Arbuthnott, a trustee of Summerfield Charitable Trust, is a trustee of New Brewery Arts. During the year ended 31 December 2020, a grant amounting to £6,667 was awarded to New Brewery Arts. The grant was paid in full during the year ended 31 December 2020.

James Millar, a trustee of Summerfield Charitable Trust until 31 October 2020, is also a trustee of Stroud District Action on Plastic. During the year ended 31 December 2020, a grant of £5,000 was awarded to Stroud District Action on Plastic. The grant was paid in full during the year ended 31 December 2020.

14 Post balance sheet events

Following the year ended 31 December 2020, the trust entered negotiations with regards to the sale of the investment property. As a result, the valuation of the investment property in note 8 has been updated to reflect the deemed realisable value.

The Summerfield Charitable Trust 24