The trustees present their report and financial statements for the period ended 31 July 2019.
The Orange Tree Trust is a family-founded grant making trust established in 2018 that supports individuals and charitable organisations in the UK and elsewhere.
The Trust supports activities in a number of different areas:
• Community development
• Refugees and the homeless
• Mental Health
• Medical research
• Academic studies and research in the arts, humanities and social sciences
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 charity's [governing document], 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)” (as amended for accounting periods commencing from 1 January 2016)
The Charity's objects are specifically restricted to such charitable purposes for the public benefit as are exclusively charitable according to the laws of England and Wales as the trustees may from time to time determine.
The objectives of the Charity are as follows:
a) to advance citizenship and community development by supporting projects that give voice to marginalised groups and communities in the UK and elsewhere.
b) to advance the well-being, education, culture, health and social needs of refugees in particularly as a result of recent and historical conflicts, the homeless and those suffering from mental health issues.
c) t o advance medical research.
d) t o advance academic study and research in the arts, humanities and social sciences, particularly under-funded or neglected areas of research .
The period to 31 July 2019 was mainly focussed on applying for UK charitable status. This process took longer than expected because of the Charity Commission’s backlog of applications and its increasingly rigorous requirements, which we attended to throughout the early part of 2019. As a consequence, the charity’s activities remained limited, such that the only donation during the period was for £6,000. This enabled the charity to open its first bank account with Barclays PLC.
Shortly after the year end, the charity received a donation of £100,000 for the specific purpose of providing funds to The Ahliyyah School for Girls, which was pledged prior to the balance sheet date. In relation to this income, the first instalment of the donation to the School of £58,000 was also paid shortly after the period end and committed to prior to the balance sheet date. The income and expenditure for this donation has been recognised in the accounts to 31 July 2019.
As a result of the surplus recorded in 2019 the charity had total funds as at 31 July 2019 amounting to £47,100.
Orange Tree Trust is a registered charity and Company limited by guarantee and is governed by its Articles of Association.
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
Currently, trustees are limited to the founding members and their legal counsel. The charity will in due course develop appointment policies to attract external expertise and community participation.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company.
No organisational structure was in place at the end of the report period.
The trustees r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Orange Tree Trust (the charity) for the period ended 31 July 2019.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
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 charity as required by section 386 of the 2006 Act; or
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 2006 Act other than any requirement that the accounts 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 accounts 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.
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
Orange Tree Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Edwardes Square, Edwardes Square, London, W8 6HE, England.
The financial statements have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable activities includes all costs relating to activities where the primary aim is part of the objects of the Charity, along with an apportionment of support costs.
Governance costs consist of the costs incurred in the management of the Charity and the costs of meeting its external reporting requirements.
Support costs consist of administration expenses incurred in the day to day management of the Charity, together with the cost of premises used for such activities. These costs are allocated across the categories of charitable expenditure, governance costs and costs of generating funds. Support costs are allocated on a labour basis, using the proportion of staff time allocated to certain activities, on the basis that this forms the fairest method of allocation of such costs.
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. Bank overdrafts are shown within borrowings in current liabilities.
The charity 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. The charity has no bank loans or other more complex financial instruments that require measurement at amortised cost using the effective interest method.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Charitable Expenditure
The average monthly number of employees (including directors) during the period was 3.
There were no disclosable related party transactions during the period .