## **The Summerfield Charitable Trust** 

## **Annual Report and Accounts** 

31 December 2022 

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 2022 

The trustees present their statutory report together with the accounts of The Summerfield Charitable Trust for the year ended 31 December 2022. 

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** David Owen was born and brought up in Gloucestershire before moving to university in Liverpool to study Business & Economics.  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 GFirst Local Enterprise Partnership and Director of Economy & Environment for Gloucestershire County Council.  He lives north of Cheltenham with his wife, Laura, their four daughters and their dog. 

**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. 

The Summerfield Charitable Trust **3** 



**Trustees’ report** 31 December 2022 

## **GOVERNANCE, STRUCTURE AND MANAGEMENT** (continued) 

## **Governance** (continued) 

**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. 

**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-todate 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 2022 

## **GOVERNANCE, STRUCTURE AND MANAGEMENT** (continued) 

## **Statement of trustees’ responsibilities** (continued) 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and 

- prepare the accounts on the 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 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 Summerfield Charitable Trust **5** 



**Trustees’ report** 31 December 2022 

## **GOVERNANCE, STRUCTURE AND MANAGEMENT** (continued) 

## **Structure and management reporting** (continued) 

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. 

## **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 

-  Operational 

-  Financial 

-  Reputational 

-  Laws, regulations, external and environmental 

_**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 Summerfield Charitable Trust **6** 



**Trustees’ report** 31 December 2022 

## **GOVERNANCE, STRUCTURE AND MANAGEMENT** (continued) 

## **Risk management** (continued) 

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

- Risk of improper use of funds through inappropriate grants. This risk is mitigated by careful review and consideration of all grant applications by the trustees as well as a programme of visits to potential recipients where grants of a significant sum are considered, to satisfy themselves as to the viability of the appeal. 

- The trust's principal asset and source of income comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet regularly with the investment managers and the manager's performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charity's needs - both now and in the future. The trustees are keeping returns closely under review as a result of the coronavirus pandemic and the current economic uncertainty that has hit investment holdings since March 2020. 

- The risk of a lack of direction and governance. This is mitigated by maintaining a body of trustees with the necessary experience and competence to supervise all aspects of the charity’s activity. The skillset of the trustees is monitored on a regular basis and training is arranged as required. 

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. 

The Summerfield Charitable Trust **7** 



**Trustees’ report** 31 December 2022 

## **OBJECTIVES, ACTIVITIES AND RELEVANT POLICIES** (continued) 

## **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 2022 of £9,595,306 (2021 - £11,962,668). The charity disposed of its commercial investment property in the year. 

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. 

## **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 

The Summerfield Charitable Trust **8** 



**Trustees’ report** 31 December 2022 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Review of activities** 

Total investment income (comprising income from listed investments, investment fee rebates, bank interest) received in the year amounted to £305,177. During the year, the trustees awarded grants totalling £174,296 (2021 - £254,516) 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 investment market performance (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. 

## **Investment performance** 

The trust achieved an income yield on its listed investments of 3.0% (2021 - 2.7%) 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. 

## **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 2022, total income amounted to £305,177 (2021 - £321,929), largely being income arising from the charity’s investment portfolio plus investment manager fee rebates. The cost of raising funds, comprising of property costs and managers’ fees, amounted to £38,244 (2021 - £58,105). The decrease in costs is due to the property being disposed during the year. 

The trustees made grants to 40 (2021 - 33) institutions totalling £174,296 (2021 - £254,516); and no grants were reclaimed (2021 - £3,000 reclaimed). A reconciliation of the grants payable and grant commitments is disclosed in note 4. Support and governance costs of the charity totalled £36,695 (2021 - £35,934).  Overall expenditure of the charity for the year totalled £249,235 (2021 - £365,555). 70% (2021 - 70%) 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 57% (2021 - 86%). The net income for the year before investment gains and losses was £55,942 (2021 - net expenditure of £43,626). 

The Summerfield Charitable Trust **9** 



**Trustees’ report** 31 December 2022 

## **FINANCIAL REVIEW** (continued) 

## **Results for the year** (continued) 

There was a net loss on the disposal and revaluation of listed investments during the year of £1,363,879 (2021 - net gain of £730,428) and also a loss on disposal of the investment property of £30,788 (2021 – £nil). This resulted in an overall net decrease in the funds of the charity during the year of £1,338,725 (2021 - net increase of £686,802). At 31 December 2022, all funds of the charity were unrestricted in nature and totalled £10,385,047 (2021 - £11,723,772). 

## **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 £10,385,047 (2021 - £11,723,772) which is represented by £9,595,306 (2021 - £11,692,668) of fixed asset investments and £789,741 (2021 - £31,104) of net current assets. 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. 

## **FUTURE PLANS** 

The trustees reviewed the level of the trust’s grant giving during the year due to the performance of investment markets and the reduction in market value of listed investments. This resulted in a lower level of grant giving in 2022 and the trustees continue to review the operations of the trust in the light of continuing market uncertainty.  The trust will continue with its goal to help the most deserving causes in Gloucestershire. 

On behalf of the trustees: 


Trustee , Mr D Owen 

Approved by the trustees on:    25 May 2023 

The Summerfield Charitable Trust **10** 



**Independent auditor’s report** 31 December 2022 

## **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 2022 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: 

-  give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended; 

-  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

-  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 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 2022 

## **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: 

-  the information given in the trustees’ annual report is inconsistent in any material respect with the accounts; or 

-  sufficient accounting records have not been kept; or 

-  the accounts are not in agreement with the accounting records and returns; or 

-  we have not received all the information and explanations we require for our audit. 

## **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 2022 

## **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: 

-  the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and 

-  we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011). 

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

-  making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and 

-  considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

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

-  performed analytical procedures to identify any unusual or unexpected relationships; 

-  tested cashbook entries to identify unusual transactions; and 

-  assessed whether judgements and assumptions made in determining the accounting estimate for the investment property valuation were indicative of potential bias. 

The Summerfield Charitable Trust **13** 



**Independent auditor’s report** 31 December 2022 

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

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

- ♦ review of the minutes of meetings of those charged with governance; and 

- ♦ 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. 


## 02 June 2023 

Buzzacott LLP 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 2022 

|Notes|**2022**<br>**Unrestricted**<br>**funds**<br>**£**|2021<br>Unrestricted<br>funds<br>£|
|---|---|---|
|**Income from:**<br>Investments and interest receivable<br>1<br>Other income<br>1<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>2<br>Charitable activities<br>3<br>**Total expenditure**<br>**Net income (expenditure) before gains and losses on investments**<br>**Gains and losses on investments**<br>Realised losses on disposal of listed investments<br>8<br>Unrealised (losses) gains on revaluation of listed investments<br>8<br>Realised losses on disposal of investment property<br>8<br>**Net income (expenditure) and net movement in funds for the year**<br>**Total funds brought forward at 1 January 2022**<br>**Total funds carried forward at 31 December 2022**|<br>**284,776**<br> <br>**20,401**|297,683<br>24,246|
||**305,177**|321,929|
||<br>**38,244**<br> <br>**210,991**|58,105<br>307,450|
||**249,235**|365,555|
||**55,942**<br> <br>**(3,521)**<br> <br>**(1,360,358)**<br> <br>**(30,788)**|(43,626)<br>—<br>730,428<br>—|
||**(1,338,725)**<br>**11,723,772**|686,802<br>11,036,970|
||**10,385,047**|11,723,772|



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** 31 December 2022 

|Notes|<br>**2022**<br>**£**|**2022**<br>**£**|2021<br>£|2021<br>£|
|---|---|---|---|---|
|**Fixed assets**<br>Investments<br>8<br>**Current assets**<br>Debtors<br>9<br>Cash at bank and in hand<br>10<br>**Creditors**: amounts falling due<br>within one year<br>11<br>**Net current assets**<br>**Total net assets**<br>**The funds of the charity:**<br>Unrestricted funds|<br> <br>**15,572**<br> <br>**930,611**|**9,595,306**<br>**789,741**|7,800<br>63,628|11,692,668<br>31,104|
||**946,183**<br> <br>**(156,442)**||71,428<br>(40,324)||
||||||
|||**10,385,047**||11,723,772|
|||**10,385,047**||11,723,772|



Approved by the trustees and signed on their behalf by: 

Trustee , Mr D Owen 


Approved on:  25 May 2023 

Charity Registration Number 802493 

The Summerfield Charitable Trust **16** 



## **Statement of cash flows** Year to 31 December 2022 

|Notes<br>**Cash flows from operating activities:**<br>Net cash used in operating activities<br>A<br>**Cash flows from investing activities:**<br>Dividends and interest from investments<br>Proceeds from the disposal of investment property<br>Proceeds from the disposal of listed investmentss<br>Purchase of investments<br>**Net cash provided by investing activities**<br>**Change in cash and cash equivalents in the year**<br>**Cash and cash equivalents at 1 January 2022**<br>B<br>**Cash and cash equivalents at 31 December 2022**<br>B|<br>**2022**<br>**£**|2021<br>£|
|---|---|---|
||<br>**(260,292)**|(330,568)|
||**(260,292)**|(330,568)|
||**284,776**<br>**839,016**<br>**19,200**<br>**(15,717)**|297,684<br>—<br>—<br>(16,886)|
||**1,127,275**|280,798|
||**866,983**<br> <br>**63,628**|(49,770)<br>113,398|
||<br>**930,611**|63,628|



## **Notes to the statement of cash flows for the year to 31 December 2022.** 

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

||**2022**<br>**£**|2021<br>£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**<br>**Adjustments for:**<br>Net losses (gains) on investments<br>Dividends and interest from investments<br>Decrease in debtors<br>(Decrease) Increase in creditors<br>**Net cash used in operating activities**|**(1,338,725)**<br>**1,394,667**<br>**(284,776)**<br>**(7,772)**<br>**(23,686)**|686,802<br>(730,428)<br>(297,684)<br>(720)<br>11,462|
||**(260,292)**|(330,568)|



## **B Analysis of cash and cash equivalents** 

|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2022**<br>**£**|2021<br>£|
|Cash at bank and in hand<br>Cash held by investment managers<br>**Total cash and cash equivalents**|**853,113**<br>**77,498**|8,522<br>55,106|
||**930,611**|63,628|



## **C     Analysis of changes in net debt** 

||At 1<br>January<br>2022<br>£|Cash<br>flows<br>£<br>844,591<br>22,392<br>866,963|**At 31**<br>**December**<br>**2022**<br>**£**<br>**853,113**<br>**77,498**<br>**930,611**|
|---|---|---|---|
|Cash at bank and in hand<br>Cash held by investment managers<br>**Total**|8,522<br>55,106|||
||63,628|||



The Summerfield Charitable Trust **17** 



## **Principal accounting policies** 31 December 2022 

## **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 2022. 

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. 

## **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. 

## **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. 

The Summerfield Charitable Trust **18** 



## **Principal accounting policies** 31 December 2022 

**Expenditure and the basis of apportioning costs** (continued) Expenditure comprises the following: 

- a. The cost of raising funds includes the fees paid to investment managers in connection with the management of the charity’s listed investments, and the fees paid to property managers in connection with the management of the charity’s investment property. 

- b. Charitable activities comprise grants payable which are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the accounts. 

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 2022 

|**1**|**Investments and interest receivable**|**2022**<br>**£**|2021<br>£|
|---|---|---|---|
||Income from listed investments<br>. Alternatives<br>Interest receivable<br>Investment manager fee rebates|**284,149**|297,656|
|||**284,149**|297,656|
|||**627**|28|
|||**20,401**|24,246|
|||||
|||**305,177**|321,930|



|**2**<br>**3**|**Raising funds**|**2022**<br>**£**|2021<br>£|
|---|---|---|---|
||Property costs|**38,244**|58,105|
|||**38,244**|58,105|
||**Charitable activities**|**2022**<br>**£**|2021<br>£|
||Grants payable (note 4)<br>Grants reclaimed (note 4)<br>Pledges committed (note 4)<br>Support costs (note 5)|**174,296**<br>**—**<br>**—**<br>**36,695**|254,516<br>(3,000)<br>20,000<br>35,934|
|||**210,991**|307,450|



The Summerfield Charitable Trust **20** 



**Notes to the accounts** 31 December 2022 

## **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: 

||**2022**<br>**Number**|**2022**<br>**Value**<br>**£**|2021<br>Number|2021<br>Value<br>£|
|---|---|---|---|---|
|Arts, museums and built heritage<br>Community work<br>Disadvantaged and vulnerable sectors<br>Education, sport and recreation<br>Environment and natural heritage|**3**<br>**7**<br>**21**<br>**6**<br>**3**|**14,400**<br>**32,910**<br>**89,986**<br>**24,000**<br>**13,000**|3<br>—<br>20<br>6<br>4|6,200<br>—<br>212,962<br>15,296<br>20,058|
||**40**|**174,296**|33|254,516|



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: 

||**2022**<br>**£**<br>**174,296**<br>**—**<br>**—**<br>|**2022**<br>**£**|2021<br>£<br>274,516<br>(3,000)<br>—|2021<br>£|
|---|---|---|---|---|
|Grant commitments at 1 January 2022<br>. Grants committed in the year<br>. Grants reclaimed<br>. Pledges withdrawn<br>Total grants to be paid<br>Less: Grants paid in year (net of reclaims)<br>Grant commitments at 31 December 2022<br>Grant commitments can be split as follows:<br>Commitments due within one year (note 11)||**20,000**<br>**174,296**||5,000<br>271,516|
|||**194,296**<br>**(194,296)**||276,516<br>(256,516)|
|||**—**||20,000|
|||**—**||20,000|
|||**—**||20,000|



The Summerfield Charitable Trust **21** 



## **Notes to the accounts** 31 December 2022 

## **5 Support costs** 

|**Support costs**|||
|---|---|---|
||**2022**<br>**£**|2021<br>£|
|Administrator’s fees<br>Postage, printing and stationery<br>Computer consultancy and support (including training)<br>Telephone<br>Insurance<br>Office rent<br>Other expenses<br>_Governance_<br>Auditor’s remuneration<br>. Statutory audit – current year<br>. Other services<br>Trustees’ meeting expenses|**12,764**<br>**460**<br>**2,542**<br>**982**<br>**1,914**<br>**3,259**<br>**3,073**|12,543<br>542<br>2,048<br>747<br>2,006<br>3,104<br>4,384|
||**24,994**|25,374|
||**5,458**<br>**6,182**<br>**61**|4,752<br>5,808<br>—|
||**11,701**|10,560|
||**36,695**|35,934|



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 2022 (2021 - none). 

During the year ended 31 December 2022, no out of pocket travel expenses were reimbursed to trustees (2021 - £nil). 

## **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 2022 fixed asset investments comprised: 

||**2022**<br>**£**|2021<br>£|
|---|---|---|
|Freehold investment property<br>Listed investments|**—**<br>**9,595,306**|730,000<br>10,962,668|
||**9,595,306**|11,692,668|



The Summerfield Charitable Trust **22** 



## **Notes to the accounts** 31 December 2022 

## **8 Fixed asset investments** (continued) 

Movements on each category of investment are summarised below. 

|**Freehold investmentproperty**|**2022**<br>**£**|2021<br>£|
|---|---|---|
|Market value at 1 January 2022<br>Disposal<br>Market value at 31 December 2022<br>Cost at 31 December 2022|**730,000**<br>**(730,000)**|730,000<br>—|
||**—**|730,000|
||**—**|1,106,417|



During the year, the trustees disposed of the investment property in Bristol for £720,000, excluding VAT. After accounting for costs incurred in disposing the property, the charity has recognised a loss on disposal of £30,788. 

|**Listed investments**|**2022**<br>**£**|2021<br>£|
|---|---|---|
|Market value at 1 January 2022<br>Additions at cost<br>Disposals at book value (Proceeds £19,200: Realised losses £3,521)<br>Net unrealised investment gains<br>Market value at 31 December 2022<br>Cost at 31 December 2022|**10,962,668**<br>**15,717**<br>**(22,721)**<br>**(1,360,358)**|10,215,354<br>16,886<br>—<br>730,428|
||**9,595,306**|10,962,668|
||**9,254,732**|9,258,208|



At 31 December 2022, 100% of the listed investments were held in Sarasins Endowments Fund Class A Inc. 

## **9 Debtors** 

||**2022**<br>**£**|2021<br>£|
|---|---|---|
|Other debtors<br>Prepayments|**14,447**<br>**1,125**|5,780<br>2,020|
||**15,572**|7,800|



## **10 Cash at bank and in hand** 

|**Cash at bank and in hand**|||
|---|---|---|
||**2022**<br>**£**|2021<br>£|
|Sarasin / Evelyn Partners<br>CAF Bank Ltd|**77,498**<br>**853,113**|55,106<br>8,522|
||**930,611**|63,628|



The Summerfield Charitable Trust **23** 



**Notes to the accounts** 31 December 2022 

## **11 Creditors: amounts falling due within one year** 

|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2022**<br>**£**|2021<br>£|
|Grants payable (note 4)<br>Accruals<br>VAT payable|**—**<br>**16,638**<br>**139,804**|20,000<br>20,324<br>—|
||**156,442**|40,324|



VAT payable in the year relates to the amount owed to HMRC arising from the sale of the investment property. 

## **12 Related party transactions** 

Kate Hicks Beach, a trustee of The Summerfield Charitable Trust, is also linked to Scrubditch Care Farm. During the year ended 31 December 2022, a grant amounting to £8,000 was awarded and paid to Scrubditch Care Farm. 

Kate Hicks Beach is also member of the advisory council of Gloucestershire Academy of Music. During the year ended 31 December 2021, a grant of £20,000 was pledged. The grant was paid during the year ended 31 December 2022. 

Roger Mortlock, a trustee of The Summerfield Charitable Trust, is also linked to the management at the Campaign to Protect England, Gloucestershire Branch. During the year ended 31 December 2022, a grant amounting to £3,000 was awarded and paid to the Campaign to Protect England, Gloucestershire Branch. 

Roger Mortlock is also linked to the management at Wild Dursley CIC. During the year ended 31 December 2022, no grants were awarded and paid to Wild Dursley CIC (2021: £2,888). 

The Summerfield Charitable Trust **24**