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2022-03-31-accounts

The Charity Service Limited

Report of the Trustees and Audited Financial Statements for the year ended 31 March 2022

Registered Company Number (England and Wales): 02538910

Registered Charity Number: 1011293

Ashby Berry Coulsons Chartered Accountants Scarborough

The Charity Service Limited

Contents of the Financial Statements for the year ended 31 March 2022

Page
Reference and administrative details 1
Report of the Trustees 2 to 8
Report of the independent auditors 9 to 11
Statement of financial activities 12
Balance sheet 13
Cash flow statement 14
Notes to the financial statements 15 to 25

The Charity Service Limited

Reference and Administrative Details for the year ended 31 March 2022

Trustees R G Dyson (Chair)
G R Bushell
P A Chorlton
J S Eckersley
K A Graham
S Griffiths
J Kiely (appointed 10th December 2021)
S Nazir (retired 11th November 2021)
Company secretary C D Mills
Registered office 8thFloor
111 Piccadilly
Manchester
M1 2HY
Principal address PO Box 155
Carnforth
LA5 5BR
Registered company number 02538910 (England and Wales)
Registered charity number 1011293
Auditors Ashby Berry Coulsons Limited
Statutory Auditor
2 Belgrave Crescent
Scarborough
North Yorkshire
YO11 1UB
Bankers Unity Trust Bank
Nine Brindleyplace
Birmingham
B1 2HB
Investment advisers Castlefield Investment Partners LLP
111 Piccadilly
Manchester
M1 2HY

Page 1

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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) issued in October 2019. This report has been prepared to meet the requirements for a directors’ report required by company law and has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Structure, governance and management

The Charity Service Limited is a charitable company limited by guarantee. The charity is governed by its Memorandum and Articles of Association. It is also a Trust Corporation within the meaning of Section 68(18) of the Trustee Act 1925.

The Board of Trustees has legal responsibility for the effective use of resources in meeting the charity’s objects and providing effective leadership and direction. The Trustees meet quarterly and additionally as circumstances require. All Trustees give their time freely. No Trustee has received any remuneration in either this or the preceding year. Trustees are required to disclose all relevant interests and withdraw from decisions where a conflict of interest may arise. Responsibility for operational matters and the implementation of policy is delegated to the Company Secretary.

Trustees are committed to improving the diversity of the board. Recruitment of new trustees is done openly. When a trustee vacancy arises, the role is advertised. Trustees encourage applications from all individuals regardless of age, gender, sexual orientation, disability, race, religion or belief. The Trustees work with the Company Secretary to select, interview and appoint suitable candidates. The board makes appointments according to relevant skills, competencies and experience. All new trustees receive an induction into the work of the charity.

All Trustees, their families and business partners are related parties by definition. Any details of transactions with related parties are disclosed in the financial statements.

Corporate trusteeship and funds held as trustee

The Charity Service Limited acts as sole corporate trustee of four separate charitable trusts. Details of these charitable trusts are provided in Note 21. The accounts of these charitable trusts are reported separately.

In its capacity as a corporate trustee, The Charity Service Limited holds investments on behalf of four charitable trusts. The investment assets for each trust are held in a separate portfolio.

Page 2

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

Objectives and activities for the public benefit

As determined by its Memorandum of Association, the principal objects of the charity are ‘to benefit any charitable institutions or charitable purposes wheresoever the same shall be established by provision of advice and assistance’.

The charity fulfils its objects in two main ways. Firstly, we provide a fee-based service to major donors who wish to manage their long-term charitable giving with a simple and cost-effective fund. We refer to these funds as ‘donor advised funds’ because we manage them on behalf of donors and make grants according to their wishes (providing that we have carried out all necessary due diligence checks and verified that the grants will be used for charitable purposes).

Secondly, we continue to manage various designated, restricted and charitable trust funds from which we make small grants to charities and community groups within the Greater Manchester area. We operate an open grant application process for all of the funds. We refer to these funds as ‘internally advised funds’ because decisions on whether or not to award a grant are made by a Grant Committee comprised entirely of the charity’s trustees.

The charity does not raise funds from the general public.

In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and to the obligations placed upon us by Section 17 of the Charities Act 2011 and confirm that we have complied with the duty placed on us by this Act.

Achievements and performance

Our strategic goal is to promote philanthropy and empower impactful charitable giving. We do this by managing donor advised funds, which enable philanthropists to make large one-off donations to the Charity Service and then use these funds to support long-term charitable giving.

In 2021, the charity undertook a strategic review of its activities. The review highlighted how the Charity Service provides valued support to philanthropists through its donor advised funds, and how philanthropists appreciated the charity’s personal touch. The review also highlighted opportunities for the charity to draw on its expertise in grant-making to offer more advice and support to philanthropists, thereby helping them to achieve greater impact through their charitable giving. As a result, the Charity Service will introduce a new philanthropy advice service in 2022/23. We also aim to increase the number of funds under management over the coming years.

During the year ended 31 March 2022, the charity managed 15 separate funds, consisting of 11 donor advised funds and 4 internally advised funds. 10 of these funds were operated as restricted funds of The Charity Service, 1 as a designated fund and 4 as separate charitable trusts. The details of the separate charitable trusts, of which The Charity Service is the sole trustee, are provided in Note 21 to the accounts.

Page 3

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

The Charity Service supports a wide variety of charitable causes through its internally and donor advised funds, and the charitable trusts of which it is a corporate trustee. Across all these funds and trusts, the charity made 204 grants in the year ended 31 March 2022 with a total value of £1.4m (2021: £1m). The charitable causes supported by these grants are summarised in the pie chart.

Page 4

Report of the Trustees For the year ended 31st March 2022

The Charity Service Limited

Financial review

The financial outcome for the year and its impact on the charity’s funds are set out in the statement of financial activities on page 12. Total net expenditure for the year was £364,057 (2021: net income of £429,735). Increased donations led to a higher total income of £826,556 (2021: £473,830), with investment gains of £213,491 (2021: 982,346) adding further to resources. Grant-making activity increased by 38% to £1,340,808 (2021: £968,430) and philanthropy advice and support remained steady at £56,916 (2021: £56,611). Total expenditure in the year was £1,404,104 (2021: £1,026,441).

At year end, net assets amounted to £5,072,210 (2021: £5,436,267) of which £76,663 (2021: £80,212) related to the unrestricted general fund, £207,242 (2021: £213,030) to the unrestricted designated fund and £4,788,305 (2021: £5,143,025) to restricted funds.

Investment policy and performance

Under its Memorandum of Association, the charity has the power to invest funds not immediately required for charitable purposes. Long term investments are placed with Castlefield Investment Partners LLP who specialise in ethical investment. The charity’s investment assets are managed to provide long term capital growth at moderate to low risk. The Trustees monitor investment performance on a quarterly basis by comparing total returns to an independently calculated benchmark comprising the investment portfolios of other charities with similar investment objectives and risk profiles.

Most of the charity’s funds are invested in Castlefield’s managed funds, with the majority held in the CFP Castlefield B.E.S.T Sustainable Portfolio Growth Fund. The funds take an ethical investment approach that seeks to take account of environmental, social and governance factors. Castlefield employs a proprietary methodology called B.E.S.T (standing for Business and Financial, Environmental and Ecological, Social Influence and Transparency and Governance), which acts as a framework for investment selection and risk management process. Castlefield applies a range of sustainability criteria to exclude unfavourable sectors of the world economy, whilst promoting activities deemed to have positive attributes.

During the year, the CFP Castlefield B.E.S.T Sustainable Portfolio Growth Fund returned a total return of +4.0%, compared to the +6.1% achieved by similar charities in the ARC Steady Growth Charity Index. The three-year performance was +23.0% against a benchmark of +21.4%

Reserves policy

The charity’s unrestricted reserves are allocated between a general fund and a designated fund. The general fund consists of monies made available for the charity’s day to day working capital needs and to cover costs if the charity was ever wound up. The designated fund includes monies not needed to sustain working capital, which is set aside for grant-making.

The Trustees aim to hold unrestricted reserves equivalent to at least 12 months of general fund expenditure. This policy is based on an assessment of the charity’s working capital requirements and the length of time needed to hand over its corporate trustee, fund management and grant administrator roles if the charity was ever wound up. As at 31 March 2022, the general fund stood at £76,663 (2021: £80,212), which represents approximately 13 months (2021: 15 months) of budgeted general fund expenditure for the next year.

Page 5

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

Grant-making policy

Grants are managed according to policies agreed by the trustees. One of two approaches is used, depending on whether the funds are donor advised or internally advised funds.

For donor advised funds, grants are paid to recipients nominated by the donors. Due diligence checks are performed on all grant requests to ensure all funds are distributed in accordance with eligible charitable purposes.

For internally advised funds, grants are paid to recipients selected by Trustees from applications received. These grants are made in accordance with relevant fund restrictions. They share, however, a common focus on helping disadvantaged people in the Greater Manchester area. Key priority areas include: preventing homelessness, reducing social isolation and the provision of support for vulnerable families & children.

Grants are available to support activity and project costs, capital costs and/or organisational core costs. This includes unrestricted and multi-year grants up to a maximum of 3 years. The maximum amount of grant for any one year is usually £3,000.

We normally focus our support on organisations that are working within one of our priority areas and:

The Trustees will not normally fund any of the following:

Most of our grants are to charities although we will consider applications from Community Interest Companies (CICs) but with greater scrutiny (e.g. we check closely for social purpose objectives, asset lock, governance arrangements, etc).

Any grant made by the Trustees is made at the absolute discretion of the Trustees.

Risk management

The Trustees continue to review the charity’s activities to identify the major risk exposure and to maintain the systems to mitigate these risks. Management controls are also reviewed to ensure they are operating effectively and meeting the needs of the charity.

The principal risks identified by Trustees are: a) reliance on key staff and b) a failure to grow earned income over the next five years. The steps taken by the Trustees to mitigate these risks as far as practicable are: a) the documentation of key systems, agreed recruitment processes, job descriptions, regular employee reviews and notice periods for all staff; and, b) the implementation of a marketing strategy to grow the number of donor advised funds under management.

Page 6

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

Plans for the future

The Trustees have agreed the following strategic aims to guide the charity’s work in the three year period of 2021-2024:

The charity will implement a new marketing strategy in 2022/23 with the aim of growing the number of donor advised funds under management. We will promote our donor advised funds to donors and their professional advisers. We will also launch our new philanthropy advice service to donors in 2022. Our marketing activity will be supported by a new website, which was launched in May 2022.

Statement of Trustees’ responsibilities

The Trustees (who are also the directors of The Charity Service 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. Under company law the 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 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

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 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:

Page 7

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2022

Auditors

Ashby Berry Coulsons Limited is deemed to be re-appointed under section 487(2) of the Companies Act 2006. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. TCS is still a small company although now a larger charity.

Signed on behalf of the Trustees on 10[th] November 2022.

C D Mills Company Secretary

Page 8

Independent Auditor’s Report to the Members of The Charity Service Limited

Opinion

We have audited the financial statements of The Charity Service Limited (the ‘charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 9

Independent Auditor’s Report to the Members of The Charity Service Limited

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, 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.

Auditor’s 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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our audit procedures include:

Page 10

Independent Auditor’s Report to the Members of The Charity Service Limited

We consider that these procedures, together with evidence acquired from our other audit work, provide an audit approach enabling a reasonable likelihood of detection of irregularities. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 auditor’s 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.

Anne Mead BSc FCA (Senior Statutory Auditor) for and on behalf of Ashby Berry Coulsons Limited Statutory Auditor 2 Belgrave Crescent Scarborough North Yorkshire YO11 1UB

21[st] November 2022

Page 11

The Charity Service Limited

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2022

Notes
Income from:
Donations and legacies
2
Charitable activities
3
Investments
4
Total income
Expenditure
Raising funds
6
Charitable activities:
Grant-making
7
Philanthropy advice and support
8
Total expenditure
5
Net gains / (losses) on investments
14
Net income and net movement of funds
11
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19
Operating result for the year before
gains/losses on investments		 Unrestricted
funds
£
-
55,183
3,044
58,227
5,762
24,602
42,743
73,107
(14,880)
5,543
(9,337)
293,242
283,905		 Restricted
funds
£
712,509
-
55,820
768,329
618
1,316,206
14,173
1,330,997
(562,668)
207,948
(354,720)
5,143,025
4,788,305		 2022
Total funds
£
712,509
55,183
58,864
826,556
6,380
1,340,808
56,916
1,404,104
(577,548)
213,491
(364,057)
5,436,267
5,072,210		 2021
Total funds
£
362,663
47,090
64,077
473,830
1,400
968,430
56,611
1,026,441
(552,611)
982,346
429,735
5,006,532
5,436,267

The notes on pages 15 to 25 form part of these financial statements.

Page 12

(Registered number: 02538910)

The Charity Service Limited

Balance Sheet at 31 March 2022

Notes
Fixed assets
Tangible fixed assets
13
Investments
14
Current assets
Debtors
15
Investments
16
Cash at bank and in hand
Creditors
Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted funds
Restricted funds
Total funds
18		 £
531
4,576,730
4,577,261
2,726
1,205
500,781
504,712
(9,763)
494,949
5,072,210
5,072,210
283,905
4,788,305
5,072,210
2022		 £
835
5,187,287
5,188,122
2,438
3,050
247,640
253,128
(4,983)
248,145
5,436,267
5,436,267
293,242
5,143,025
5,436,267

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 10th November 2022 and were signed on its behalf by

R G Dyson Chair of the Trustees

The notes on pages 15 to 25 form part of these financial statements.

Page 13

The Charity Service Limited

Cash Flow Statement for the year ended 31 March 2022

Note
Cash flow from operating activities
Cash provided from operations
(i)
Cash flows from investing activities:
Purchase of tangilble fixed assets
Transfers to investment portfolios
Transfers from investment portfolios
Equalisations
Dividends received
Net cash provided by / (used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
(ii)
Notes to the cash flow statement
(i) Reconciliation of net income to net cash flow from operating activities
Net income for the reported period (as per the SOFA)
Adjustments for:
Depreciation charges
New donations introduced as investments
Dividends received
Investment income retained in portfolio
Investment fees paid from cash accounts with investment manager
Net (gain) / loss on investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
(ii) Analysis of changes in net funds
At 1 Apr 2021
£
Net cash
Cash at Bank
247,640
247,640
Liquid resources
Current asset investments
3,050
3,050
Total
250,690		 2022
2021
£
£
(631,050)
(640,212)
-
(911)
(40,000)
(500,000)
865,277
735,988
361
-
58,553
64,329
884,191
299,406
253,141
(340,806)
247,640
588,446
500,781
247,640
(364,057)
429,735
304
76
-
(21,413)
(58,553)
(64,329)
(361)
(367)
618
951
(213,491)
(982,346)
(290)
5,807
4,780
(8,326)
(631,050)
(640,212)
Cash Flow
At 31 Mar 2022
£
£
253,141
500,781
253,141
500,781
(1,845)
1,205
(1,845)
1,205
251,296
501,986		 2021
£
(640,212)
(911)
(500,000)
735,988
-
64,329
299,406
(340,806)
588,446
247,640
429,735
76
(21,413)
(64,329)
(367)
951
(982,346)
5,807
(8,326)
(640,212)
500,781
1,205
1,205
501,986

Page 14

The Charity Service Limited

Notes to the Financial Statements for the year ended 31 March 2022

1. Accounting policies

General information

The Charity Service Limited is a charitable private company limited by guarantee incorporated in England and Wales. In addition, it is a Trust Corporation within the meaning of Section 68(18) of the Trustee Act 1925. Every member of the charitable company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are to benefit any charitable institutions or charitable purposes by provision of advice and assistance.

Basis of preparing the financial statements

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and 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 (FRS 102) published in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

Having considered the level of funds held and the expected level of income and expenditure for the next 12 months, the Trustees have, at the time of approving these financial statements, a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and they therefore continue to adopt the going concern basis of accounting in preparation of these accounts.

Judgements and key sources of estimation uncertainty

The Trustees consider that no judgements, apart from those involving estimates, have been made in the process of applying the above accounting policies which have had a significant effect on amounts recognised in the financial statements.

The Trustees consider that no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date have been made which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Funds

Unrestricted funds comprise the general fund and the designated fund. The general fund is available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. The designated funds represent charitable funds which the charity may use and distribute to appropriate charitable purposes agreed by the Trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 15

The Charity Service Limited

Notes to the Financial Statements for the year ended 31 March 2022

1. Accounting policies - continued

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Voluntary income

Voluntary income usually consists of small donations which are accounted for when received. The charity is not a legacy seeking organisation but will account for any legacies on the basis that entitlement is taken as the earlier of the charity being notified of an impending distribution or the legacy being received.

Investment income receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Income from charitable activities

Income from fees for accounting and management services is recognised when receivable.

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 settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. Non-staff costs are allocated directly to the applicable expenditure heading and staff costs are apportioned on the basis of time spent.

Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the charity and their associated support costs.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administrative and governance costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Grants payable

Grants are voluntary payments made to charitable institutions. Grants nominated by donors are accounted for when they are paid. Expenditure on other grants is included when the grants have been approved and any conditions attached by the trustees have been satisfied.

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.

Recognised gains and losses

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the statement of financial activities.

Page 16

The Charity Service Limited

Notes to the Financial Statements for the year ended 31 March 2022

1. Accounting policies - continued

Tangible fixed assets

Fixed assets costing more than £500 are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis at the following annual rates.

Computer equipment

33 1/3%

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value, which is taken as the market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Cash held by investment managers is classified as current asset investments.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity contributes to a defined contribution workplace pension plan for the benefit of its employees. Contributions are charged to the statement of financial activities in the period to which they relate.

Taxation

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

Page 17

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

2. Donations and legacies

Year ended 31 March 2022
Donations
Legacies
Year ended 31 March 2021
Donations
Legacies
3.
Income from charitable activities
Year ended 31 March 2022
Philanthropy support services
Year ended 31 March 2021
Philanthropy support services
4.
Investment income
Year ended 31 March 2022
Income from investment portfolios
Year ended 31 March 2021
Income from investment portfolios		 Unrestricted
funds
£
-
-
-
-
-
-
Unrestricted
funds
£
55,183
47,090
Unrestricted
funds
£
3,044
3,340		 Restricted
funds
£
687,509
25,000
712,509
362,663
-
362,663
Restricted
funds
£
-
-
Restricted
funds
£
55,820
60,737		 Total
funds
£
687,509
25,000
712,509
362,663
-
362,663
Total
funds
£
55,183
47,090
Total
funds
£
58,864
64,077

Page 18

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

5. Total expenditure

Note
Year ended 31 March 2022
Raising funds
6
Grant-making
7
Philanthropy advice and support
8
Year ended 31 March 2021
Raising funds
6
Grant-making
7
Philanthropy advice and support
8
6. Raising funds
Year ended 31 March 2022
Staff costs (note 9)
Portfolio management fees
Support costs (note 10)
Year ended 31 March 2021
Staff costs (note 9)
Portfolio management fees
Support costs (note 10)
7. Grant-making
Year ended 31 March 2022
Grants payable
Direct costs
Support costs (note 10)
Year ended 31 March 2021
Grants payable
Direct costs
Support costs (note 10)		 Unrestricted
funds
£
5,762
24,602
42,743
73,107
691
72,448
30,059
103,198
Unrestricted
funds
£
3,660
-
2,102
5,762
607
84
-
691
Unrestricted
funds
£
9,020
5,072
10,510
24,602
40,549
601
31,298
72,448		 Restricted
funds
£
618
1,316,206
14,173
1,330,997
709
895,982
26,552
923,243
Restricted
funds
£
-
618
-
618
-
709
-
709
Restricted
funds
£
1,297,033
19,173
-
1,316,206
894,741
-
1,241
895,982		 Total
funds
£
6,380
1,340,808
56,916
1,404,104
1,400
968,430
56,611
1,026,441
Total
funds
£
3,660
618
2,102
6,380
607
793
-
1,400
Total
funds
£
1,306,053
24,245
10,510
1,340,808
935,290
601
32,539
968,430

Page 19

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

7. Grant-making (continued)

Grants payable
Grants paid to organisations
Grants paid to individuals		 2022
£
1,265,429
40,624
1,306,053		 2021
£
896,016
39,274
935,290

A full list of grants payable to organisations is available on the charity's website at: https://charityservice.org.uk/wp-content/uploads/2022/08/List-of-grants-paid-to-organsations-2021-22.pdf Grants payable to individuals are not disclosed individually due to data protection requirements. During the year, no grants were made to related parties (2021: none).

8. Philanthropy advice and support

Unrestricted
funds
£
Year ended 31 March 2022
Staff costs (note 9)
34,335
Direct costs
-
Support costs (note 10)
8,408
42,743
Year ended 31 March 2021
Staff costs (note 9)
9,100
Direct costs
-
Support costs (note 10)
20,959
30,059
Staff costs
Salaries
Pensions costs
The average monthly number of employees during the year was:
Full time
Part time		 Restricted
funds
£
-
14,173
-
14,173
-
26,552
-
26,552
2022
£
46,111
2,276
48,387
2022
1
1
~~2~~		 Total
funds
£
34,335
14,173
8,408
56,916
9,100
26,552
20,959
56,611
2021
£
39,736
1,797
41,533
2021
1
1
~~2~~

9. Staff costs

Total staffing in the year ended 31 March 2022 was 1.4 full time equivalents (2021: 1.2). No employees received emoluments in excess of £60,000.

Page 20

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

10. Support costs

The charity allocates governance and support costs to charitable activities on the basis of the estimated time spent by staff on each activity. The allocation of supprot costs is set out below.

Raising Funds
£
Year ended 31 March 2022
Staff costs (see note 9)
1,039
Information technology
402
Office and admin costs
258
Governance
403
2,102
Year ended 31 March 2021
Staff costs (see note 9)
-
Information technology
-
Office and admin costs
-
Other
-
Governance
-
-
11. Net income (expenditure)
Net income / (expenditure) is stated after charging:
Audit fees - current year
Depreciation - owned assets
Investment gains / (losses):
Realised investment gains
Unrealised investment gains
Total investment gains / (losses)		 Grantmaking
£
5,196
2,012
1,286
2,016
10,510
31,826
-
-
713
-
32,539		 Philanthropy
Support
£
4,157
1,610
1,028
1,613
8,408
-
3,293
2,284
11,350
4,032
20,959
2022
£
4,032
304
49,511
163,980
213,491		 Total
£
10,392
4,024
2,572
4,032
21,020
31,826
3,293
2,284
12,063
4,032
53,498
2021
£
4,032
76
87,200
895,146
982,346

12. Trustees' remuneration and benefits and expenses

No trustee received or waived remuneration or other benefits for the year ended 31 March 2022 (2021: nil). No trustee was reimbursed for out of pocket expenses during the year (2021: one trustee received £76).

Page 21

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

13. Tangible fixed assets

Tangible fixed assets
Computer equipment
£
Cost
At 1 April 911
Additions -
At 31 March 911
Depreciation
At 1 April (76)
Charge for the year (304)
At 31 March (380)
Net book value
At 1 March 2021 835
At 1 March 2022 531

14. Fixed asset investments

Market value
At 1 April
Additions at cost
Carrying value of investments sold
Unrealised gains / (losses)
At 31 March
Analysis of investments
Multi-asset funds
Other assets
Historic cost of investments		 2022
2021
£
£
5,187,287
4,388,630
99,665
586,662
(874,202)
(683,151)
163,980
895,146
4,576,730
5,187,287
4,533,440
5,146,570
43,290
40,717
4,576,730
5,187,287
4,058,837
4,811,985
Listed investments		 2022
2021
£
£
5,187,287
4,388,630
99,665
586,662
(874,202)
(683,151)
163,980
895,146
4,576,730
5,187,287
4,533,440
5,146,570
43,290
40,717
4,576,730
5,187,287
4,058,837
4,811,985
Listed investments
5,187,287
5,146,570
40,717
5,187,287
4,811,985

There were no investment assets outside of the UK.

Page 22

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

15. Debtors
Prepayments and accrued income
Other debtors
16. Current asset investments
Cash accounts with investment manager
17. Creditors: amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
18. Analysis of net assets between funds		 2022
£
459
2,267
2,726
2022
£
1,205
2022
£
187
867
1,216
7,493
9,763		 2021
£
482
1,956
2,438
2021
£
3,050
2021
£
105
420
458
4,000
4,983
As at 31 March 2022
Tangbile fixed assets
Investments
Current assets
Current liabilities
As at 31 March 2021
Tangbile fixed assets
Investments
Current assets
Current liabilities		 Unrestricted
funds
£
531
199,276
93,861
(9,763)
283,905
835
193,733
103,657
(4,983)
293,242		 Restricted
funds
£
-
4,377,454
410,851
-
4,788,305
-
4,993,554
149,471
-
5,143,025		 Total
funds
£
531
4,576,730
504,712
(9,763)
5,072,210
835
5,187,287
253,128
(4,983)
5,436,267

Page 23

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

19. Movements in funds

Year ended 31 March 2022
Unrestricted funds
General fund
Designated - trustees' discretionary
Total unrestricted funds
Restricted funds
Human Rights & Nursing Awards
George James Pennington Bequest
Martin Family Charitable Trust
Dick Camplin Educational Trust
Gables End Trust
Castlefield Trust
Charity Cheque accounts
Earthsong Trust
Kelly Trust
Ripple Trust
Ann King Legacy
Total restricted funds
Total funds
Year ended 31 March 2021
Unrestricted funds
General fund
Designated - trustees' discretionary
Total unrestricted funds
Restricted funds
Human Rights & Nursing Awards
George James Pennington Bequest
Martin Family Charitable Trust
Dick Camplin Educational Trust
Gables End Trust
Castlefield Trust
Charity Cheque accounts
Earthsong Trust
Kelly Trust
Ripple Trust
Total restricted funds
Total funds		 At 1 April
£
80,212
213,030
293,242
742,328
459,009
5,303
10,001
307,776
2,546
45,079
2,050,066
1,440,714
80,203
-
5,143,025
5,436,267
84,343
221,139
305,482
622,346
433,392
9,319
14,990
310,626
2,546
45,079
1,441,914
1,728,027
92,811
4,701,050
5,006,532		 Incoming
resources
£
55,466
2,761
58,227
8,928
5,515
-
17,500
3,327
10,000
-
292,911
404,842
306
25,000		 Resources
expended
£
(59,015)
(14,092)
(73,107)
(32,826)
(91,340)
(5,303)
(11,124)
(121,164)
-
-
(108,627)
(857,638)
(83,127)
(19,848)		 Gains /
(losses)
£
-
5,543
5,543
29,680
13,659
-
-
17,577
-
-
60,703
83,711
2,618
-		 Transfers At 31 March
£
£
-
76,663
-
207,242
-
283,905
-
748,110
-
386,843
-
-
-
16,377
-
207,516
-
12,546
-
45,079
-
2,295,053
-
1,071,629
-
-
-
5,152		 Transfers At 31 March
£
£
-
76,663
-
207,242
-
283,905
-
748,110
-
386,843
-
-
-
16,377
-
207,516
-
12,546
-
45,079
-
2,295,053
-
1,071,629
-
-
-
5,152
283,905
748,110
386,843
-
16,377
207,516
12,546
45,079
2,295,053
1,071,629
-
5,152
768,329 (1,330,997) 207,948 - 4,788,305
826,556
47,090
3,340
50,430
9,783
7,694
98
15,000
25,808
-
-
352,011
12,463
543		 (1,404,104)
(51,221)
(51,977)
(103,198)
(23,546)
(75,702)
(5,500)
(19,989)
(85,878)
-
-
(77,158)
(608,468)
(27,002)		 213,491
-
40,528
40,528
133,745
93,625
1,386
-
57,220
-
-
333,299
308,692
13,851		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
5,072,210
80,212
213,030
293,242
742,328
459,009
5,303
10,001
307,776
2,546
45,079
2,050,066
1,440,714
80,203
423,400 (923,243) 941,818 - 5,143,025
473,830 (1,026,441) 982,346 -
5,436,267

Page 24

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2022

19. Movements in funds (continued)

Fund purposes

The general fund receives its income from the fees charged by The Charity Service Limited and provides the resources to support the running of the charity.

The designated fund represents unrestriucted funds set aside by the Trustees for grant-making.

All restricted funds, except for the George James Pennington Bequest fund, are donor advised funds. Grants are made from these funds at the request of donors (subject to appropriate due diligence checks). The George James Pennington Bequest fund provides grants to assist with activities, amenities or equipment that will improve general welfare. Beneficiaries must be resident within Manchester.

20. Related party disclosures

Mr J S Eckersley, a Trustee, is also a shareholder in Castlefield Partners Limited, in which the charity has a a small shareholding of non-voting class B shares. During the year ended 31 March 2022, the charity received a dividend from Castlefield Partners Limited of £283 (2021: £Nil).

Mr J S Eckersley is also a partner in Castlefield Investment Partners LLP (of which Castlefield Partners Limited is a Designated Member). The charity places with Castlefield Investment Partners LLP its investments and the investments of several charitable trusts managed by the charity and for which the charity is the sole trustee. During the year ended 31 March 2022, Castlefield Investment Partners LLP received investment management charges of £618 (2021: £793).

21. Funds held as trustee

The Charity Service Limited acts as sole trustee for the following charitable trusts:

Name Registered Objects
Charity Number
Chronicle Cinderella Home Fund 233536 Providing convalescent or recuperative holidays
for sick and convalescent children of poor persons.
Manchester and Salford Medical Charities 223079 Making grants to charities in the Manchester and
Fund Salford area, particularly for the provision of
comforts, amenities and assistance to the poor,
the sick and the infirm.
The Richard Budenberg Charitable Trust 267673 Making grants to charities.

In the capacity as sole trustee, The Charity Service Ltd is the custodian trustee for the investment portfolios held by the above trusts and managed by Castlefield Investment Partners LLP.

The Charity Service Ltd was sole trustee for the David Budenberg Chartiable Trust (registration no: 1006640) until that charity closed in January 2022. The Trust had spent all funds before closing.

Page 25