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2023-03-31-accounts

The Charity Service Limited

Report of the Trustees and Audited Financial Statements for the year ended 31 March 2023

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 2023

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 2023

Trustees R G Dyson (Chair)
G R Bushell (retired 31st January 2023)
P A Chorlton
J S Eckersley
K A Graham
S Griffiths
J Kiely
D E Newns (appointed 14th December 2022)
M S Ralph (appointed 14th December 2022)
K J Webster (appointed 2nd March 2023)
Company secretary C D Mills
Address Jactin House
24 Hood Street
Ancoats
Manchester
M4 6WX
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 2023

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 2023. 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. The Board is committed to maintaining high standards in governance and regularly assesses compliance against the Charity Governance Code for Smaller Charities.

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 creating a diverse 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, whilst also seeking to broaden trustee diversity. 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 three 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 three 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 2023

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 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 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. We operate an open grant application process for these funds.

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.

During the year ended 31 March 2023, the charity managed 13 separate funds, consisting of nine donor advised funds and four internally advised funds. Nine of these funds were operated as restricted funds of The Charity Service, one as a designated fund and three 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.

We also introduced a new philanthropy advice service in 2022/23. This allows us to draw on our expertise in philanthropic strategy and grant-making to offer enhanced levels support to philanthropists, thereby helping them to achieve greater impact through their charitable giving.

Page 3

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2023

The Charity Service supports a wide variety of charitable causes through its internally advised and donor advised funds, and the charitable trusts of which it is a corporate trustee. In the year ended 31 March 2023, across all these funds and trusts, the charity made 131 grants (2022: 204) with a total value of £1.4m (2022: £1.4m). The charitable causes supported by these grants are summarised in the pie chart below.

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 £397,655 (2022: £364,057). Increased donations led to a higher total income of £1,385,983 (2022: £826,556), which was achieved on the back of minimal fund fundraising expenditure of £9,966 (2022: £6,380). Grant-making activity increased slightly to £1,394,785 (2022: £1,340,808), as did philanthropy advice and support to £63,502 (2022: £56,916). Total expenditure in the year was £1,468,253 (2022: £1,404,104). Although losses on investments amounted to £315,385 (2022: gains of £213,491), investment funds are held for the long-term and are expected to recover their value over a full economic cycle.

As at 31 March 2023, total net assets amounted to £4,674,555 (2022: £5,072,210), comprising unrestricted funds of £231,686 (2022: £283,905) and restricted funds of £4,442,869 (2022: £4,788,305). Of the unrestricted funds, £161,601 (2022: £207,242) have been set aside and designated for grant-making, leaving £70,085 (2022: £76,663) in the unrestricted general fund.

Page 4

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2023

Investment policy and performance

Under its Memorandum of Association, the charity has the power to invest funds not immediately required for charitable purposes. The charity’s investments are managed with the objective of generating the best financial return within an acceptable level of risk. For funds with a long-term investment horizon of more than 5 years, the investment objective is to generate a return of at least inflation (as measured by the Consumer Prices Index) plus 4% per annum after expenses. For funds with a medium-term horizon of between 3 and 5 years, the investment objective is to generate a return in excess of inflation (as measured by the Consumer Prices Index) after expenses. In the absence of any specific legal restriction in respect of spending capital or gains, the charity generally adopts a total return approach to investing, which means returns can be generated from income and capital gains or losses.

The charity pursues an ethical approach to investing to ensure that its investments do not conflict with its charitable aims and ethos, and the values of its donors and beneficiaries. The charity requires its investment manager to utilise negative screening to avoid investments in companies that derive more than 10% of their revenue or operating profit from:

The charity also encourages (but does not require) its investment manager to use positive screening to make investments that promote health and wellbeing, education and environmental sustainability.

Investments are placed with Castlefield Investment Partners LLP who specialise in ethical investment. 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. The Trustees are satisfied that adopting an ethical approach will not be detrimental to long-term financial returns. Indeed, it is the Trustees’ belief that socially and environmentally responsible business practices will generate superior financial performance over the long-term.

Reserves policy

Charity reserves are funds that can be freely and readily spent on charitable purposes. They typically comprise unrestricted funds but exclude fixed assets and funds designated for specific purposes.

The charity aims to hold reserves at a level that manages financial risk and short-term volatility and ensures that financial commitments can be met as they fall due. Our reserves policy takes into account our 3-year financial plan and risk register. It also considers the risk of a significant unexpected fall in income, the risk of unforeseen and unavoidable expenditure, access to other sources of finance and the cost of meeting financial obligations if the charity is wound up. On this basis, the trustees assess that the charity requires reserves equivalent to at least 9 months of budgeted unrestricted expenditure, but not more than 12 months.

As at 31 March 2023, the level of reserves held by the charity was £69,858 (2022: £76,132), which represents approximately 11 months (2022: 13 months) of budgeted unrestricted fund expenditure for the next year. Trustees consider this level of reserves to be adequate because it falls within the paramaters of the charity's reserves policy.

Page 5

The Charity Service Limited

Report of the Trustees For the year ended 31st March 2023

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.

Donor Advised Funds

For donor advised funds, grants are paid to recipients nominated by the donors. In some cases, the charity provides assistance to help donors develop grant making strategy and select charities to support. Due diligence checks are performed on all grant requests to ensure funds are distributed in accordance with eligible charitable purposes.

Internally Advised Funds

For internally advised funds, the charity operates an open grant application process. Grants are paid to recipients selected by a Grants Committee made up of the charity’s trustees. These grants are made in accordance with relevant fund restrictions. The funds share 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).

All grants awarded are 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 2023

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 year ending 31 March 2024 will be the final year of this strategic planning period. This final year will see increased activity to market the charity’s philanthropy services and grow the number of donor advised funds under management.

The Trustees will also spend time in 2023/24 developing a strategic plan for the next planning period, which will build on progress made over the past three years.

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 2023

Auditors

During the year, the Trustees put out to tender the audit of the charity, receiving proposals from three firms. These were assessed by Trustees and a decision was made to reappoint Ashby Berry Coulsons Limited as 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 9[th] November 2023.

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 2023 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

22[nd] November 2023

Page 11

The Charity Service Limited

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2023

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
11
Net income and net movement of funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19
Operating result for the year before
gains/losses on investments		 Unrestricted
funds
£
-
63,101
3,244
66,345
9,689
45,079
49,202
103,970
(37,625)
(14,594)
(52,219)
283,905
231,686		 Restricted
funds
£
1,259,870
-
59,768
1,319,638
277
1,349,706
14,300
1,364,283
(44,645)
(300,791)
(345,436)
4,788,305
4,442,869		 2023
Total funds
£
1,259,870
63,101
63,012
1,385,983
9,966
1,394,785
63,502
1,468,253
(82,270)
(315,385)
(397,655)
5,072,210
4,674,555		 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

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

Page 12

The Charity Service Limited

(Registered number: 02538910)

Balance Sheet at 31 March 2023

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
18
Funds
Unrestricted funds
Restricted funds
Total funds
19		 £
227
3,632,116
3,632,343
168,105
33,311
894,484
1,095,900
(53,688)
1,042,212
4,674,555
4,674,555
231,686
4,442,869
4,674,555
2023		 2022
£
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

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 9th November 2023 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 2023

Note
Cash flow from operating activities
Cash provided from operations
(i)
Cash flows from investing activities:
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 2022
£
Net cash
Cash at Bank
500,781
500,781
Liquid resources
Current asset investments
1,205
1,205
Total
501,986		 2023
2022
£
£
(601,430)
(631,050)
0
(40,000)
930,620
865,277
1,501
361
63,012
58,553
995,133
884,191
393,703
253,141
500,781
247,640
894,484
500,781
(397,655)
(364,057)
304
304
(333,775)
0
(63,012)
(58,553)
(1,501)
(361)
277
618
315,385
(213,491)
(165,379)
(290)
43,926
4,780
(601,430)
(631,050)
Cash Flow
At 31 Mar 2023
£
£
393,703
894,484
393,703
894,484
32,106
33,311
32,106
33,311
425,809
927,795		 2022
£
(631,050)
(40,000)
865,277
361
58,553
884,191
253,141
247,640
500,781
(364,057)
304
0
(58,553)
(361)
618
(213,491)
(290)
4,780
(631,050)
894,484
33,311
33,311
927,795

Page 14

The Charity Service Limited

Notes to the Financial Statements for the year ended 31 March 2023

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 2023

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 2023

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 2023

2. Donations and legacies

Year ended 31 March 2023
Donations
Legacies
Year ended 31 March 2022
Donations
Legacies
3.
Income from charitable activities
Year ended 31 March 2023
Philanthropy support services
Year ended 31 March 2022
Philanthropy support services
4.
Investment income
Year ended 31 March 2023
Income from investment portfolios
Year ended 31 March 2022
Income from investment portfolios		 Unrestricted
funds
£
-
-
-
-
-
-
Unrestricted
funds
£
63,101
55,183
Unrestricted
funds
£
3,244
3,044		 Restricted
funds
£
1,259,870
-
1,259,870
687,509
25,000
712,509
Restricted
funds
£
-
-
Restricted
funds
£
59,768
55,820		 Total
funds
£
1,259,870
-
1,259,870
687,509
25,000
712,509
Total
funds
£
63,101
55,183
Total
funds
£
63,012
58,864

Page 18

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2023

5. Total expenditure

Note
Year ended 31 March 2023
Raising funds
6
Grant-making
7
Philanthropy advice and support
8
Year ended 31 March 2022
Raising funds
6
Grant-making
7
Philanthropy advice and support
8
6. Raising funds
Year ended 31 March 2023
Staff costs (note 9)
Direct costs
Support costs (note 10)
Year ended 31 March 2022
Staff costs (note 9)
Direct costs
Support costs (note 10)
7. Grant-making
Year ended 31 March 2023
Grants payable
Direct costs
Support costs (note 10)
Year ended 31 March 2022
Grants payable
Direct costs
Support costs (note 10)		 Unrestricted
funds
£
9,689
45,079
49,202
103,970
5,762
24,602
42,743
73,107
Unrestricted
funds
£
7,329
166
2,194
9,689
3,660
-
2,102
5,762
Unrestricted
funds
£
27,230
6,881
10,968
45,079
9,020
5,072
10,510
24,602		 Restricted
funds
£
277
1,349,706
14,300
1,364,283
618
1,316,206
14,173
1,330,997
Restricted
funds
£
-
277
-
277
-
618
-
618
Restricted
funds
£
1,326,201
23,505
-
1,349,706
1,297,033
19,173
-
1,316,206		 Total
funds
£
9,966
1,394,785
63,502
1,468,253
6,380
1,340,808
56,916
1,404,104
Total
funds
£
7,329
443
2,194
9,966
3,660
618
2,102
6,380
Total
funds
£
1,353,431
30,386
10,968
1,394,785
1,306,053
24,245
10,510
1,340,808

Page 19

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2023

7. Grant-making (continued)

Grants payable
Grants paid to organisations
Grants paid to individuals		 2023
£
1,303,926
49,505
1,353,431		 2022
£
1,265,429
40,624
1,306,053

A full list of grants payable to organisations is available on the charity's website at:

https://charityservice.org.uk/wp-content/uploads/2023/11/List-of-grants-paid-2022-23.pdf

Grants payable to individuals are not disclosed individually due to data protection requirements. During the year, no grants were made to related parties (2022: none).

8. Philanthropy advice and support

Unrestricted
funds
£
Year ended 31 March 2023
Staff costs (note 9)
40,428
Direct costs
-
Support costs (note 10)
8,774
49,202
Year ended 31 March 2022
Staff costs (note 9)
34,335
Direct costs
-
Support costs (note 10)
8,408
42,743
Staff costs
Salaries
Employers NI
Pensions costs
Other staff costs
The average monthly number of employees during the year was:
Full time
Part time		 Restricted
funds
£
-
14,300
-
14,300
-
14,173
-
14,173
2023
£
54,529
275
2,725
142
57,671
2023
1
1
~~2~~		 Total
funds
£
40,428
14,300
8,774
63,502
34,335
14,173
8,408
56,916
2022
£
46,111
-
2,276
-
48,387
2022
1
1
~~2~~

9. Staff costs

Total staffing in the year ended 31 March 2022 was 1.5 full time equivalents (2022: 1.4). 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 2023

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.

Year ended 31 March 2023
Staff costs (see note 9)
Information technology
Office and admin costs
Governance
Year ended 31 March 2022
Staff costs (see note 9)
Information technology
Office and admin costs
Governance		 Raising Funds
£
991
361
389
453
2,194
1,039
402
258
403
2,102		 Grantmaking
£
4,957
1,803
1,943
2,266
10,968
5,196
2,012
1,286
2,016
10,510		 Philanthropy
Support
£
3,966
1,442
1,554
1,813
8,774
4,157
1,610
1,028
1,613
8,408		 Total
£
9,914
3,605
3,885
4,532
21,936
10,392
4,024
2,572
4,032
21,020
11. Net income (expenditure)
Net income / (expenditure) is stated after charging:
Audit fees - current year
Depreciation - owned assets
Investment gains / (losses):
Realised investment gains / (losses)
Unrealised investment gains / (losses)
Total investment gains / (losses)		 2023
£
4,532
304
10,213
(325,598)
(315,385)		 2022
£
4,032
304
49,511
163,980
213,491

12. Trustees' remuneration and benefits and expenses

No trustee received or waived remuneration or other benefits in the year (2022: nil). No trustee was reimbursed for out of pocket expenses during the year (2022: nil).

Page 21

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2023

13. Tangible fixed assets

Tangible fixed assets
Computer equipment
£
Cost
At 1 April 911
Additions -
At 31 March 911
Depreciation
At 1 April (380)
Charge for the year (304)
At 31 March (684)
Net book value
At 1 March 2022 531
At 1 March 2023 227

14. Fixed asset investments

Market value
At 1 April
Additions at cost
Carrying value of investments sold
Gains / (losses) on revaluation
At 31 March
Analysis of investments
Multi-asset funds
Other assets
Historic cost of investments		 2023
2022
£
£
4,576,730
5,187,287
2,639,290
99,665
(3,329,511)
(874,202)
(254,393)
163,980
3,632,116
4,576,730
3,632,116
4,533,440
-
43,290
3,632,116
4,576,730
3,439,837
4,058,837
Listed investments		 2023
2022
£
£
4,576,730
5,187,287
2,639,290
99,665
(3,329,511)
(874,202)
(254,393)
163,980
3,632,116
4,576,730
3,632,116
4,533,440
-
43,290
3,632,116
4,576,730
3,439,837
4,058,837
Listed investments
4,576,730
4,533,440
43,290
4,576,730
4,058,837

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 2023

15. Debtors
Trade debtors
Prepayments
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
Accruals
18. Analysis of net assets between funds
As at 31 March 2023
Tangbile fixed assets
Investments
Current assets
Current liabilities
As at 31 March 2022
Tangbile fixed assets
Investments
Current assets
Current liabilities		 Unrestricted
funds
£
227
164,682
78,409
(11,632)
231,686
531
199,276
93,861
(9,763)
283,905		 2023
£
9,609
700
157,796
168,105
2023
£
33,311
2023
£
361
1,166
651
51,510
53,688
Restricted
funds
£
-
3,467,434
1,017,491
(42,056)
4,442,869
-
4,377,454
410,851
-
4,788,305		 2022
£
-
459
2,267
2,726
2022
£
1,205
2022
£
187
867
1,216
7,493
9,763
Total
funds
£
227
3,632,116
1,095,900
(53,688)
4,674,555
531
4,576,730
504,712
(9,763)
5,072,210

Page 23

The Charity Service Limited

Notes to the Financial Statements - continued

for the year ended 31 March 2023

19. Movements in funds

Year ended 31 March 2023
Unrestricted funds
General fund
Designated - Trustees' discretionary
Total unrestricted funds
Restricted funds
Ann King Legacy
D&E's Trust
Castlefield Charitable Fund
Charity Cheque accounts
Dick Camplin Educational Trust
Earthsong Trust
Gables End Trust
George James Pennington Bequest
Human Rights & Nursing Awards
Kelly Trust
Total restricted funds
Total funds
Year ended 31 March 2022
Unrestricted funds
General fund
Designated - Trustees' discretionary
Total unrestricted funds
Restricted funds
Ann King Legacy
Castlefield Charitable Fund
Charity Cheque accounts
Dick Camplin Educational Trust
Earthsong Trust
Gables End Trust
George James Pennington Bequest
Human Rights & Nursing Awards
Kelly Trust
Martin Family Charitable Trust
Ripple Trust
Total restricted funds
Total funds		 At 1 April
£
76,663
207,242
283,905
5,152
-
12,546
45,079
16,377
2,295,053
207,516
386,843
748,110
1,071,629
4,788,305
5,072,210
80,212
213,030
305,482
-
2,546
45,079
10,001
2,050,066
307,776
459,009
742,328
1,440,714
5,303
80,203
5,143,025
5,448,507		 Incoming
resources
£
63,282
3,063
66,345
-
818,750
9,764
-
14,375
32,516
350,324
5,254
10,984
77,671		 Resources
expended
£
(69,860)
(34,110)
(103,970)
(5,152)
(500)
0
-
(15,680)
(200,741)
(97,697)
(138,032)
(37,337)
(869,144)		 Gains /
(losses)
£
-
(14,594)
(14,594)
-
0
-
-
0
(146,886)
(9,660)
(27,179)
(57,811)
(59,255)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
£
70,085
161,601
231,686
-
818,250
22,310
45,079
15,072
1,979,942
450,483
226,886
663,946
220,901
1,319,638 (1,364,283) (300,791) - 4,442,869
1,385,983
55,466
2,761
58,227
25,000
10,000
-
17,500
292,911
3,327
5,515
8,928
404,842
-
306		 (1,468,253)
(59,015)
(14,092)
(73,107)
(19,848)
-
-
(11,124)
(108,627)
(121,164)
(91,340)
(32,826)
(857,638)
(5,303)
(83,127)		 (315,385)
-
5,543
5,543
-
-
-
-
60,703
17,577
13,659
29,680
83,711
-
2,618		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,674,555
76,663
207,242
283,905
5,152
12,546
45,079
16,377
2,295,053
207,516
386,843
748,110
1,071,629
-
-
768,329 (1,330,997) 207,948 - 4,788,305
826,556 (1,404,104) 213,491 -
5,072,210

Page 24

The Charity Service Limited

Notes to the Financial Statements - continued for the year ended 31 March 2023

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 costs 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 the general welfare of people in Manchester.

20. Related party disclosures

Mr J S Eckersley and Mr M S Ralph, both trustees of The Charity Service, are also shareholders in Castlefield Partners Limited, in which the charity has a small shareholding of non-voting class B shares. During the year ended 31 March 2023, the charity received a dividend from Castlefield Partners Limited of £181 (2022: £283).

During the year, the charity also received donations from Castlefield Partners Limited and its associated companies Castlefield Advisory Partners and Conbrio Fund Partners amounting to £9,764 (2022: £Nil). These donations were made to a restricted fund called the Castlefield Charitable Fund.

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 £277 (2022: £618).

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.

Page 25