Annual Accounts and Finance Report

The Benevolent Society of Blues Treasurer’s report to the 2022 AGM By Stephen Treharne...........

Annual Accounts and Finance Report

The Benevolent Society of Blues Treasurer’s report to the 2022 AGM By Stephen Treharne...........

The Benevolent Society of Blues

Treasurer’s report to the 2022 AGM

By Stephen Treharne........

Before starting my report, I must first put on record my and the Board’s extremely grateful thanks
to Perry Kitchen for his skilfulstewardship as Treasurer of the BSB finances over very many years.
His is a very hard act to follow and I am very grateful to Perry for agreeing to stay involved with
the finance committee. His knowledge of the BSB finances is unrivalled.
One effect of the pandemic is that, because it has been difficult to hold AGMs when the Board
would ideally prefer, the November 2022 AGM is being asked to receive the Annual Report and
Accounts for the year ended 30 June 2021. I will discuss with the Board how we might return to
the position where AGMs are asked to consider accounts that are more recent in date.
The accounts for the year ended 30 June 2021 are summarised as follows, starting with income
and expenditure.

INCOME 2021 - 2020
Subscriptions 31,903 - 32,807
Donations and legacies 40,382 - 73,839
Dividends and interest 90,162 - 70,585
TOTAL INCOME 162,447 - 177,231

EXPENDITURE 2021 - 2020
Assistance for older beneficiaries 2,195 - 1,650
Grants to other beneficiaries 23,177 - 19,081
Support grants for pupils 42,565 - 59,863
Loans unlikely to be recovered 20,334 - 12,674
Salaries and support costs 59,269 - 39,348
Governance costs 5,000 - 5,000
TOTAL EXPENDITURE 152,540 - 137,616
NET INCOMINGS 9,907 - 39,615
Net gains/(losses) on investments 555,847 - (144,905)
NET MOVEMENT IN FUNDS 565,754 - (105,290)

Total income at £162,447 was lower by nearly £15,000 when compared to 2020. The reduction
is entirely accounted for by a decrease of over £33,000 in donations and legacies received. The
BSB is always very grateful to receive donations and legacies, but particularly as regards legacies
we cannot rely on this happening on a regular basis. This reduction, back to what might be
considered a more normal level, was offset by a pleasing increase of nearly £20,000 in the income
that we received from our investments. The third element of our regular income, subscriptions,
fell slightly by about £900, continuing the generally downward trend of recent years.
Total expenditure was £152,450, nearly £15,000 higher than in 2020. Assistance to beneficiaries,
made by way of grant or other monetary support, but excluding loans advanced, totalled £67,937
as against £80,594 in 2020. Despite the year under review coinciding with perhaps the worst
effects of the pandemic, we were surprised that we experienced a reduction in the number of
applicants seeking help. We received 28 applications for assistance (2020: 46) and 19 (2020: 38)
were met in part or in full. This year 2 individuals over the age of 60 (2020: 8 individuals) received
help. The number of pupils helped increased to 38 (2020: 33), and this year’s help included the
provision of laptops for online learning during Covid-19 lockdowns.
This year we contributed £40,255 to the Additional Costs Fund (“the ACF”) which is administered
by the school and used to support pupils on the highest levels of bursary by meeting necessary
costs such as clothes and travel which the pupil/family cannot afford. We have continued with
our recent policy of not making any payment to the school to fund a donation governorship as
we consider, at the present time, that supporting the ACF enables us to help a greater number
of pupils in a more immediate way.
It should be recognised that not all the assistance we give involves money. This year 30 applicants
(2020: 21) received advice and, in some cases, were referred to other agencies. A small number
were visited at home. None of this work is reflected in the figures, but forms an important part
of our work. It is greatly appreciated by those with whom we have contact: sometimes even just
a friendly voice over the phone is all that is required.
Recognising that the increasingly difficult financial climate bears more harshly on those in
greatest need, it was considered prudent to make provisions of £20,334 (2020: £12,674) against
our loan portfolio (which is discussed further below). Salaries, support costs and governance
costs were £64,269, almost £20,000 higher than in 2020. The majority of this increase arose
through the Board’s decision to incur expenditure of nearly £17,000 to bring the website and IT
up to date after many years when little or nothing has been spent under this heading. The new
website, which will be further developed, allows applications for assistance to be made and
reviewed online, safely and confidentially, and represents a quantum leap forward in the way in
which we interact with applicants. Further modernisation of our IT is planned.
Overall, there was surplus in 2021 of £9,907, some £29,700 lower than in 2020.

The balance sheet as at 30 June 2021 can be summarised as follows:

FIXED ASSETS 2021 - 2022
Investments 3,882,013 - 3,326,166
CURRENT ASSETS 2021 - 2022
Loans 80,316 - 122,269
Cash balances 96,859 - 39,839
Debtors 26,462 - 29,400
LIABILITIES 2021 - 2022
Creditors (11,604) - (9,382)
NET ASSETS 4,074,046 - 3,508,292
FUNDS 2021 - 2022
Unrestricted 2,328,126 - 2,012,362
Restricted 1,745,920 - 1,495,930
TOTAL FUNDS 4,074,046 - 3,508,292

Our endowment and non-endowment portfolios remain invested in a range of funds across a
number of different sectors. The portfolio is rebalanced from time to time. Surplus cash is
invested where possible, and when necessary investments are sold to generate cash to meet day
to day requirements. Over the year 2020/2021 the net effect of changes to our investments,
including a pleasing increase in the overall value of our holdings, reflecting global stock market
movements, resulted in our investments increasing by nearly £556,000 to £3,882,013. The total
return (capital and income) on our investments has been calculated at nearly 21% which
compares favourably with the increase of 23% in the FTSE All World Index over the same period.
The book value of our loan book continues to fall. This is a product of (1) a move over time by the
Grants and Loans Committee towards only granting interest free loans where there is a realistic
chance that repayment will be made, (2) a more systematic approach to seeking repayment of
outstanding loans, and (3) a prudent approach to providing against loans where repayment is
either uncertain or is likely to be protracted. In 2021, 4 new loans of £6,950 were advanced, a
significant decrease from 2020 when 10 new loans totalling £17,545 were advanced. Repayments
of loans in 2021 totalled over £28,000, virtually unchanged from 2020. Net provisions made
against the loan book were £20,334, a 60% increase over 2020. The overall effect was to reduce
the value of the book from £122,269 to £80,316.

Cash balances increased significantly during the year. It has been agreed that cash of around 2%
of our total assets should be held in cash to reduce the need to realise relatively small amounts
of cash at short notice.
Overall, in 2020/2021 our reserves increased by £565,754 to £4,074,046, the first time that the
£4 million threshold has been passed.
In this brief report I have not been able to cover every aspect of the BSB’s work and much more
detail, including financial information, is given in the full Trustees Annual Report and Accounts
which has been filed with the Charity Commission.
There were changes during the year under review in the composition of the Finance Committee.
In September 2020 I joined the Committee together with Mark Hutton. Two long serving
members of the Committee stepped down in November 2020. Roger Eades and Keith Mills acted
as members of the Committee for many years, bringing their extensive knowledge and
experience to the stewardship of the BSB’s investments. On behalf of the BSB I would like to thank them for everything that they have done.

Stephen Treharne FCA
9 September 2022

The Annual Accounts of 2021 can be found here:

Accounts and annual returns, BENEVOLENT SOCIETY OF BLUES – 207818, Register of Charities – The Charity Commission


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