Letchworth Civic Trust - Charities report - 19.2

REGISTERED COMPANY NUMBER: 00135234 (England and Wales)

REGISTERED CHARITY NUMBER: 273336

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED

30TH JUNE 2019

FOR

LETCHWORTH CIVIC TRUST

(A COMPANY LIMITED BY GUARANTEE)

LETCHWORTH CIVIC TRUST

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2019

Page

Report of the Trustees

1 to 3

Report of the Independent Auditors

4 to 6

Statement of Financial Activities

7

Balance Sheet

8

Notes to the Financial Statements

9 to 13

LETCHWORTH CIVIC TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30TH JUNE 2019

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their

report with the financial statements of the charity for the year ended 30th June 2019. The trustees have

adopted the provisions 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives, Activities and Public Benefit

The objects of the trust are to promote and advance any charitable purpose for the benefit of the public of

Letchworth Garden City and its immediate neighbourhood.

The trustees have paid due regard to the guidance of the Charity Commission in respect of public benefit in

deciding on and conducting its activities.

This is achieved primarily by the distribution of income, which includes an annual contribution from the

Letchworth Garden City Heritage Foundation, by way of grants to individuals, schools, clubs and other

organisations living or operating in Letchworth Garden City.

The trust has continued its educational grant support to the university student population and other school

pupils and students in Letchworth Garden City. The trust also gives grants to a number of charitable

organisations. The number and size of grant applications received from charities during the year is similar to

the previous year. A website has increased awareness of the trust's existence.

The trust has no plans to change its objects or the means to achieve them.

Achievements and Performance

There has been a 20% increase in the number of students applying this year for educational support grants to

help them at university. There was a 12% fall in the previous year. There has also been a significant rise in

the number of applications on behalf of school pupils. The trustees also agreed in September 2018 to

increase the grant funding for 1st year university students to £500. There was just one substantial

institutional grant in the year.

The trust has made a deficit in the year.

No investments have been made during the year.The overall value of the investments has fallen during the

year.

FINANCIAL REVIEW

Financial Review

The trustees have noted the risks associated with changes in global markets and are closely monitoring the

returns on the trust's investments. Income for the year has been above that forecast, and also above that of the

previous year. Despite the possible impact of the UK's withdrawal from the European Union on financial

markets, the trust is in a healthy financial position.

Under the reserves policy of the trust, the trustees aim to maintain free reserves in unrestricted funds at a

level to meet the anticipated grant applications and governance costs in the period up to the receipt of

significant income from investments and grants. The balance held as unrestricted funds at 30th June 2019

was £131,995, all of which are regarded as free reserves, against anticipated expenditure of £25,000 up to

the end of October 2019. The trustees consider that these reserves will be adequate to meet the requirements

of the reserves policy.

The major investments are held primarily for their income potential and capital growth.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, the Memorandum and Articles of Association dated 15

April 1914 as amended 28 February 1977. The trust is established as a company limited by guarantee.

Decision making

The trustees:

- Adopt a policy of distribution of all income, net of expenses, by way of grants. The accumulated funds are

maintained so as to achieve future income at a level needed to maintain future expenditure.

- Approve all grant applications prior to payment, and all investment policy decisions, although the day to

day administration is undertaken by the secretary.

- Consider the major risk to be the diminution of the value of and returns on its investments. The trustees

review the investment policy and mitigate this risk by following a widespread investment policy.

The trustees hold four board meetings in each year. Where necessary, a sub committee of the trustees meets

in between board meetings to process additional grant applications.

Induction and training of new trustees

Trustees are either elected as term trustees or appointed by the Letchworth Garden City Heritage Foundation

(LGCHF), North Herts District Council (NHDC) or Herts County Council (HCC). No formal training is

given to new trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00135234 (England and Wales)

Registered Charity number

273336

Registered office

Broadway Chambers

Letchworth Garden City

Hertfordshire

Trustees

Mr K F Emsall

Mrs M Iredale

Mr P M Jackson

Chairman

Mr I Mantle

Mr M R Muir

Cllr L A Needham

Mr M J Rice

Mrs C A Rogers

Mr C Sparshott

Treasurer

Mrs J A Williams

Company Secretary

Mrs S Jenkins

Senior Statutory Auditor

Wayne Kingston FCA

Auditors

Keens Shay Keens Limited (Statutory Auditor)

Christchurch House

Upper George Street

Luton

Bedfordshire

LU1 2RS

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Letchworth Civic Trust for the purposes of company law) are

responsible for preparing the Report of the Trustees and the financial statements in accordance with

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true

and fair view of the state of affairs of the charitable company and of the incoming resources and application

of resources, including the income and expenditure, of the charitable company for that period. In preparing

those financial statements, the trustees are required to

-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy

at any time the financial position of the charitable company and to enable them to ensure that the financial

statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of

the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and

other irregularities.

In so far as the trustees are aware:

-

there is no relevant audit information of which the charitable company's auditors are unaware; and

-

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Keens Shay Keens Limited (Statutory Auditor), will be proposed for re-appointment at the

forthcoming Annual General Meeting.

Approved by order of the board of trustees on 24th September 2019 and signed on its behalf by:

Mr P M Jackson - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

LETCHWORTH CIVIC TRUST

Opinion

We have audited the financial statements of Letchworth Civic Trust (the 'charitable company') for the year ended 30th June 2019 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 30th June 2019 and of its incoming resources and application of resources, including 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 Companies Act 2006.

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 Auditors

responsibilities for the audit of the financial statements section of our report. We are independent of the

charitable company in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us

to report to you where:

-

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information

included in the annual report, other than the financial statements and our Report of the Independent Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we

identify such material inconsistencies or apparent material misstatements, we are required to determine

whether there is a material misstatement in the financial statements or a material misstatement of the other

information. If, based on the work we have performed, we conclude that there is a material misstatement of

this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors

of the charitable company for the purposes of company law) are responsible for the preparation of the

financial statements 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 financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company'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 charitable company or

to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms

part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of

Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the

charitable company's members those matters we are required to state to them in an auditors' report and for no

other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone

other than the charitable company and the charitable company's members as a body, for our audit work, for

this report, or for the opinions we have formed.

Wayne Kingston FCA (Senior Statutory Auditor)

for and on behalf of Keens Shay Keens Limited (Statutory Auditor)

Christchurch House

Upper George Street

Luton

Bedfordshire

LU1 2RS

2nd October 2019

LETCHWORTH CIVIC TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 30TH JUNE 2019

2019

2018

Unrestricted fund

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

15,000

15,000

Investment income

2

74,422

69,527

Total

89,422

84,527

EXPENDITURE ON

Charitable activities

Grants

78,192

37,556

Administrative costs

6,454

6,294

Total

84,646

43,850

Net gains/(losses) on investments

(11,348

)

48,562

NET INCOME/(EXPENDITURE)

(6,572

)

89,239

RECONCILIATION OF FUNDS

Total funds brought forward

1,044,285

955,046

TOTAL FUNDS CARRIED FORWARD

1,037,713

1,044,285

LETCHWORTH CIVIC TRUST

BALANCE SHEET

AT 30TH JUNE 2019

2019

2018

Unrestricted fund

Total funds

Notes

£

£

FIXED ASSETS

Investments

8

907,098

918,446

CURRENT ASSETS

Cash at bank

131,995

127,063

CREDITORS

Amounts falling due within one year

9

(1,380

)

(1,224

)

NET CURRENT ASSETS

130,615

125,839

TOTAL ASSETS LESS CURRENT LIABILITIES

1,037,713

1,044,285

NET ASSETS

1,037,713

1,044,285

FUNDS

10

Unrestricted funds

1,037,713

1,044,285

TOTAL FUNDS

1,037,713

1,044,285

These financial statements have been prepared in accordance with the provisions applicable to charitable

companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees on 24th September 2019 and were signed on its behalf by:

Mr P M Jackson -Trustee

Mr C Sparshott -Trustee

LETCHWORTH CIVIC TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2019

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102,

have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements

have been prepared under the historical cost convention with the exception of investments which are

included at market value, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to

the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation

committing the charity to that expenditure, it is probable that a transfer of economic benefits will be

required in settlement and the amount of the obligation can be measured reliably. Expenditure is

accounted for on an accruals basis and has been classified under headings that aggregate all cost

related to the category. Where costs cannot be directly attributed to particular headings they have

been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a

commitment but not accrued as expenditure.

Taxation

The charity is exempt from corporation tax on its charitable activities.

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.

2.	INVESTMENT INCOME

2019

2018

£

£

Letchworth Housing Investments Limited

56,700

54,000

Charifund

14,443

12,802

Deposit account interest

80

25

COIF Charities Investment Fund

3,199

2,700

74,422

69,527

3.	GRANTS PAYABLE

2019

2018

£

£

Grants

78,192

37,556

Grants to institutions

£

4 organisations received grants of between £1,000 and £7,000. The average was £2,550

10,200

10,200

Grants to individuals

£

162 university students received average grants of £357 for educational learning materials

57,800

60 school students with disadvantaged home backgrounds received average grants of £65

3,888

13 other individuals received average grants for educational, medical or sporting support of £485.

6,304

67,992

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2019

2018

£

£

Auditors' remuneration

1,476

1,368

5.	TRUSTEES' REMUNERATION AND BENEFITS

No fees were paid to the trustees.

Trustees' expenses

During the year, an honorarium of £3,000 and office expenses of £1,500 were paid to the secretary

(2018 - £3,000 and £1,500 respectively).

6.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2019

2018

-

-

No employees received emoluments in excess of £60,000.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

All comparative entries relate to unrestricted funds only.

8.	FIXED ASSET INVESTMENTS

Listed investments

Unlisted investments

Totals

£

£

£

MARKET VALUE

At 1st July 2018

463,446

455,000

918,446

Revaluations

3,652

(15,000

)

(11,348

)

At 30th June 2019

467,098

440,000

907,098

NET BOOK VALUE

At 30th June 2019

467,098

440,000

907,098

At 30th June 2018

463,446

455,000

918,446

There were no investment assets outside the UK.

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Accrued expenses

1,380

1,224

10.	MOVEMENT IN FUNDS

At 1.7.18

Net movement in funds

At 30.6.19

£

£

£

Unrestricted funds

General fund

1,044,285

(6,572

)

1,037,713

TOTAL FUNDS

1,044,285

(6,572

)

1,037,713

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Gains and losses

Movement in funds

£

£

£

£

Unrestricted funds

General fund

89,422

(84,646

)

(11,348

)

(6,572

)

TOTAL FUNDS

89,422

(84,646

)

(11,348

)

(6,572

)

Comparatives for movement in funds

At 1.7.17

Net movement in funds

At 30.6.18

£

£

£

Unrestricted Funds

General fund

955,046

89,239

1,044,285

TOTAL FUNDS

955,046

89,239

1,044,285

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Gains and losses

Movement in funds

£

£

£

£

Unrestricted funds

General fund

84,527

(43,850

)

48,562

89,239

TOTAL FUNDS

84,527

(43,850

)

48,562

89,239

A current year 12 months and prior year 12 months combined position is as follows:

At 1.7.17

Net movement in funds

At 30.6.19

£

£

£

Unrestricted funds

General fund

955,046

82,667

1,037,713

TOTAL FUNDS

955,046

82,667

1,037,713

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Gains and losses

Movement in funds

£

£

£

£

Unrestricted funds

General fund

173,949

(128,496

)

37,214

82,667

TOTAL FUNDS

173,949

(128,496

)

37,214

82,667

11.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30th June 2019.