The Members of the Council present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The Freshgate Trust Foundation seeks to distribute substantially all of its net income after expenses each year. An application form is completed by all applicants. Completed application forms are reviewed by the Secretary and sorted according to the sphere into which each appeal falls. These applications are then considered at the Members of the Council meetings by the full board of Members of the Council and the level of appropriate grants determined according to a set of criteria established by the Members of the Council.
The Members of the Council have identified five specific spheres in which they feel that the objectives of the charity can best be met as follows:-
Education (including travel and training)
Heritage, restoration and environment
Music and the arts
Recreation (including holidays and sport)
Welfare, health and social care
The Members of the Council make grants to organisations with activities falling within the five spheres identified above. The grants awarded are summarised in note 5. The focus of the grants awarded is aimed to ensure the widest coverage of beneficiaries within those five spheres of activity.
The Freshgate Trust Foundation's objects to make grants to a variety of charitable causes have to be balanced with the need to maintain and grow a capital base which generates the income to enable The Freshgate Trust Foundation to make grants. The Members of the Council are satisfied with the performance achieved during the year. In meeting their objectives for the year, the Members of the Council have met at three main grant making meetings during the year to discuss the operation of the charity, review its activities and authorise payment of 59 grants awarded totalling £95,360 (2023 - 55 grants totalling £87,900). A summary of the beneficiaries of these grants is detailed in note 5 to the accounts. As outlined above, each application is reviewed initially by the Secretary in order to assess its eligibility within the trusts objectives and then is considered by the Members of the Council to determine the amount of any grant awarded.
The Freshgate Trust Foundation's income is generated from investments listed on the London Stock Exchange. These are managed on a discretionary basis by investment advisors who seek to achieve a balanced return of both income and capital growth. The performance of the stock market is outside the control of The Freshgate Trust Foundation and therefore the resultant income generated , and capital performance of its investments may impact on the level of grant income The Freshgate Trust Foundation is able to distribute.
Each application for grant aid is considered on its own merits. However the quantity of applications received and the level of grant aid requested is outside the control of The Freshgate Trust Foundation.
Gross income for the year of £101,008 (2023 - £91,928) is approximately 10% higher than last year.
Net expenditure after charitable grants and administrative expenses for the year is £40,638 (2023 - net expenditure of £41,863). Net gains on investments amounted to £253,682 (2023 - £149,658 ). The total unrestricted income funds at the year end was £3,732,926 (2023 - £3,519,882).
It is the policy of The Freshgate Trust Foundation to maintain liquid unrestricted funds, which are the free reserves of The Freshgate Trust Foundation, at a level which equates to at least six months unrestricted expenditure excluding grants, currently around £23,000. This provides sufficient funds to cover management and administration and to respond to emergency applications for grants which arise from time to time. Liquid unrestricted funds were maintained above this level throughout the year and at the year end amounted to £60,982 cash.
The Members of the Council have appointed regulated investment managers to manage the investments on a discretionary basis with a medium/high attitude to risk. The portfolio asset allocation and benchmark indices are reviewed annually by the investment sub committee. The investment objectives are achieved by investing prudently in a broad range of fixed interest securities and equities which are quoted on a Recognised Investment Exchange and unit trusts and OEIC’s which are authorized under the Financial Services and Markets Act 2000. No initial investment shall exceed 10% of the total value of the funds under management. Actual income received during the year was £101,008 (2023 £91,928).
The Members of the Council have considered areas of risk and have concluded that they have little exposure to risk save for stock market volatility. In this respect, they have appointed competent fund managers who are regulated and the Members of the Council have set the investment risk as "medium/high". The Members of the Council have competent professional advisors all of whom carry professional negligence insurance. The Secretary is a Partner in a firm of Chartered Accountants who is likewise insured in this office through her firm's cover. The Freshgate Trust Foundation's bankers are substantial and are regulated. The Freshgate Trust Foundation is purely a grant maker and does not give advice to any grant applicants save where else they can apply for funds or how else they might improve their award opportunity from The Freshgate Trust Foundation.
The Members of the Council intend to keep under continual review the operations of The Freshgate Trust Foundation in order to adapt to changes in the investment markets and in the areas of need for grant aid whilst being mindful of the original intentions of The Freshgate Trust Foundation when this was established by Harry Brearley over 80 years ago.
The charitable company is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association.
The Members of the Council who served during the year, or have been appointed subsequently, were:
None of the Members of the Council has any beneficial interest in the company. All of the Members of the Council are members of the company and guarantee to contribute £1 in the event of a winding up.
New Members of the Council are appointed from time to time. Suitable candidates are selected who have skills and work experience which compliment those provided by existing Members of the Council. Members of the Council are selected by personal recommendation and they are interviewed by a sub committee who make recommendations to the full board of Members of the Council for their consideration.
Once selected, new Members of the Council meet with the sub committee to be instructed on the duties and responsibilities and to provide any further training deemed appropriate.
The Freshgate Trust Foundation is administered by a board of Members of the Council with day to day matters being administered by the Secretary. All investments are managed by regulated investment managers who report to an investment sub committee comprising of five Members of the Council, however all decisions concerning investment of resources and award of grants are made by the full board of Members of the Council.
The Members of the Council have been significantly strengthened through the appointment of new Members over recent years drawn from the worlds of medicine, industry, education, finance and management. The commitment of the Members, the knowledge base and willingness to become involved in the investigation of unusual appeals, augurs well for the future.
The Members of the Council all give their time voluntarily and receive no benefit from The Freshgate Trust Foundation. Any expenses reclaimed are set out in note 8.
The Secretary, who is not a Member of the Council, is a partner in a firm of Chartered Accountants which charges a fee for her services and the services of the firm which undertakes all the secretarial duties, preparation of annual accounts and provides meeting facilities for the Members of the Council.
The Council Members' Report was approved by the Board of Members of the Council.
I report to the Members of the Council on my examination of the financial statements of The Freshgate Trust Foundation (the charitable company) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Investments
Investment management costs
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure is unrestricted. All income and expenditure derive from continuing activities.
The Freshgate Trust Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is The Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S9 1XU.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements 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 UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include the revaluation of investments.
The financial statements are presented in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The principal accounting policies are set out below.
At the time of approving the accounts, the Members of the Council have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Members of the Council continue to adopt the going concern basis of accounting in preparing the accounts.
Unrestricted funds are available for use at the discretion of the Members of the Council in furtherance of their charitable objectives.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Expenditure is included on an accruals basis.
Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions are fulfilled.
Support costs are the running of The Freshgate Trust Foundation itself as an organisation.
Gold pocket watch and chain formerly owned by Harry Brearley, at a cost of £1,500 (2023 - £1,500). This is currently on loan to The Company of Cutlers in Hallamshire.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
Investments
Investment management costs
Investment management fees
Charitable expenditure
Charitable expenditure
Website design costs
Bank charges
Secretarial fees
Independent examination fee
The Freshgate Trust Foundation does not award grants to individuals except in the case of educational prizes to students. This amounts to nil this year ( nil in 2023).
The average monthly number of employees during the year was:
None of the Members of the Council (nor any persons connected with them) received any remuneration during the year. There were no travel expenses reimbursed to any Member of the Council in 2024 (2023 - £nil).
The Secretary, who is not a Member of the Council, is a partner in a firm of Chartered Accountants. Fees of £19,200 are charged for her services and the services of the firm which undertakes all of the secretarial duties, preparation of annual accounts and provision of meeting facilities for the Members of the Council.
The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
The historical cost of the fixed asset investments is £3,058,002 (2023 £3,154,686).
The revaluation fund represents the amount by which investments exceed their historical cost.
The general fund represents the original gift and subsequent gifts and undistributed surpluses, together with realised gains and losses on investments, all of which may be applied without restriction in furtherance of the objects of the Foundation.
Transfers are to adjust the balance on the revaluation fund so it represents the difference between the total historic cost and the market value of the investments.
During the year grants were made to Sheffield Family Holiday Fund of £3,000 (2023- £3,000) and St Luke's Hospice of £1,700 (2023 £2,000), Miss E S Murray is a Trustee of Sheffield Family Holiday Fund; Mr N A MacDonald OBE was a Trustee of St Luke's Hospice until December 2023.
There were no other disclosable related party transactions during the year (2023 - none).