The Whitbybird Foundation - Charities report - 20.2

REGISTERED COMPANY NUMBER: 06849934 (England and Wales)

REGISTERED CHARITY NUMBER: 1129159

THE WHITBYBIRD FOUNDATION

(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Report of the Trustees

1

to

4

Statement of Trustees' Responsibilities

5

Statement of Financial Activities

6

Statement of Financial Position

7

to

8

Notes to the Financial Statements

9

to

14

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 31 March 2020. 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

a. Policies and objectives

The principle objects of the charity are to use funds for the benefit of or in furtherance of such charitable purposes or charitable institutions as in such manner and proportions as the trustees may from time to time in their absolute discretion determine.

In setting objectives and planning for activities, the Directors/Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

The strategies for achieving objectives are to collect information and data relating to engineering on a website.

c. Activities undertaken to achieve objectives

The company provides human resource, sponsors or undertakes research in the area of education, training, arts, culture, environment, conservation and heritage.

d. Grant-making policies

The Director-Trustees are establishing a grant-making policy for the charity to enable it to be satisfied that its grants meet its objects and deliver public benefit. All donee organisations must meet the Charity's objects and deliver a public benefit and are reviewed on a case by case basis in the light of the status of the applicant.

e. Main activities undertaken to further the company's purposes for the public benefit

During the year, The Whitbybird Foundation started work on the production of a publication about former Whitbybird employees. The purpose of this is to inspire and enthuse people and promote the role of engineering in society.

The charity relies on income generated through investments and donations in order to fund its operations. It continues to provide grants to other individuals and institutions in accordance with its charitable objectives and grant making policies.

ACHIEVEMENT AND PERFORMANCE

a. Key performance indicators

The results of the company are shown in the attached financial statements. The net deficit for the year before investment gains and losses was £(9,610) (2019 - £(35,960)).

b. Review of activities

During the year, the charity awarded grants £9,500 (2019 - £20,500), received bank interest £Nil (2019 - £Nil) and achieved investment (losses)/gains of £11,671 (2019 - £(6,720)).

c. Fundraising activities and income generation

It is the policy of the charity to maintain unrestricted funds at a level which the trustees consider sufficient to generate a regular income for distributions to be made to other charities at their discretion.

d. Investment policy and performance

One of the charity's main source of funding is from investments and its investment portfolio is structured to yield annual income and capital gains.

FINANCIAL REVIEW

a. Going concern

After making appropriate enquiries, the Directors/Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The trustees consider the assets of the charity sufficient to meet its future obligations. At the end of the period the company had general funds of £691,516 (2019 - £689,455).

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Constitution

The Whitbybird Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. It was incorporated on 17 March 2009.

The company was granted charitable status by the Charity Commission on 15 April 2009 under charity registration number 1129159.

b. Methods of appointment or election of Directors/Trustees

The management of the company is the responsibility of the Directors/Trustees who are elected and co-opted under the terms of the Memorandum of Association.

c. Organisational structure and decision-making policies

The charity is governed by a board of directors who are also the trustees and responsible for setting strategic direction of the company and for establishing policy. The directors meet as often as required for the operation of the charity.

d. Financial risk management

The Directors/Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

The Directors/Trustees will continue to work towards achieving the objects of the Charity. Any funds held or received will be applied for achieving the objectives in future.

Members' liability

The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06849934 (England and Wales)

Registered Charity number

1129159

Registered office

91-94 Lower Marsh

London

SE1 7AB

Trustees

M Whitby

S J Wood

M J Crane

A C Thorp

Company Secretary

A C Thorp

Approved by order of the board of trustees on 17 March 2021 and signed on its behalf by:

A C Thorp - Trustee

The Directors/Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Directors/Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Directors/Trustees to prepare financial statements for each financial year. Under company law the Directors/Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Directors/Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles of the Charities SORP (FRS 102);

- make judgments and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The Directors/Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Directors/Trustees on and signed on its behalf by:

A C Thorp

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Investment income

3

13,617

-

Other income

2,723

-

Total

16,340

-

EXPENDITURE ON

Charitable activities

Charitable activities

25,950

35,960

Net gains/(losses) on investments

11,671

(6,720

)

NET INCOME/(EXPENDITURE)

2,061

(42,680

)

RECONCILIATION OF FUNDS

Total funds brought forward

689,455

732,135

TOTAL FUNDS CARRIED FORWARD

691,516

689,455

CONTINUING OPERATIONS

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 9 to 13 form part of these financial statements.

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Investments

8

668,084

690,073

CURRENT ASSETS

Cash at bank

25,400

1,350

CREDITORS

Amounts falling due within one year

9

(1,968

)

(1,968

)

NET CURRENT ASSETS

23,432

(618

)

TOTAL ASSETS LESS CURRENT LIABILITIES

691,516

689,455

NET ASSETS

691,516

689,455

FUNDS

10

Unrestricted funds:

General fund

691,516

689,455

TOTAL FUNDS

691,516

689,455

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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 and authorised for issue on 17 March 2021 and were signed on its behalf by:

A C Thorp - Trustee

1.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Whitbybird Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

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

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

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

General funds are unrestricted funds which are available for use at the discretion of the Directors/Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

LIABILITIES AND PROVISIONS

Liabilities 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.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months

FINANCIAL INSTRUMENTS

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.or less from the date of acquisition or opening of the deposit or similar account.

2.	CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

In preparing the financial statements, the Directors/Trustees were not required to make any estimates or judgments which materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities.

3.	INVESTMENT INCOME

2020

2019

£

£

Investment income

13,617

-

4.	NET INCOME/(EXPENDITURE)

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

2020

2019

£

£

Surplus on disposal of fixed assets

(2,723

)

-

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended 31 March 2019.

TRUSTEES' EXPENSES

During the year, no Directors/Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 March 2020, no Director/Trustee expenses have been incurred (2019 - £NIL).

6.	STAFF COSTS

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

2020

2019

Non- remunerated Directors/Trustees

4

4

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

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

EXPENDITURE ON

Charitable activities

Charitable activities

35,960

Net gains/(losses) on investments

(6,720

)

NET INCOME/(EXPENDITURE)

(42,680

)

RECONCILIATION OF FUNDS

Total funds brought forward

732,135

TOTAL FUNDS CARRIED FORWARD

689,455

8.	FIXED ASSET INVESTMENTS

Listed

investments

£

Market value

At 1 April 2019

690,073

Disposals

(50,000

)

Revaluations

11,671

Profit on sale of investment

2,723

Investment income

13,617

At 31 March 2020

668,084

Net book value

At 31 March 2020

668,084

At 31 March 2019

690,073

There were all investment assets outside the UK.

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Accrued expenses

1,968

1,968

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

689,455

2,061

691,516

TOTAL FUNDS

689,455

2,061

691,516

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

16,340

(25,950

)

11,671

2,061

TOTAL FUNDS

16,340

(25,950

)

11,671

2,061

Comparatives for movement in funds

Net

movement

At

At 1.4.18

in funds

31.3.19

£

£

£

Unrestricted funds

General fund

732,135

(42,680

)

689,455

TOTAL FUNDS

732,135

(42,680

)

689,455

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

-

(35,960

)

(6,720

)

(42,680

)

TOTAL FUNDS

-

(35,960

)

(6,720

)

(42,680

)

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

Net

movement

At

At 1.4.18

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

732,135

(40,619

)

691,516

TOTAL FUNDS

732,135

(40,619

)

691,516

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

16,340

(61,910

)

4,951

(40,619

)

TOTAL FUNDS

16,340

(61,910

)

4,951

(40,619

)

11.	RELATED PARTY DISCLOSURES

During the year, the charity awarded a grant of £Nil (2019 - £18,500) to Engineering Timelines, an engineering and educational charity, in respect of its continuing programme to develop its website. The Directors/Trustees of The Whitbybird Foundation, M Whitby and A C Thorp, are also trustees of Engineering Timelines.

12.	MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.