Charity No. 1017345 The John Thacker Charitable Trust Trustees, Report and Accounts For the Year Ended 31 March 2021 frmha 400RE & SMALLEY
THE JOHN THACKER CHARITABLE TRUST CONTENTS Page Charty dètails Report of the trustees Independènt auditor's report to the irustees statemènt of financial aclimties BaSarce shèet Notes lo the accounts 10
THE JOHN THACKER CHARITABLE TRUST CHARITY DETAILS Tru$tee3 & key manag•ment personn•l Mr J G Chesworth Ichairmanl MrA E Harrison Mr J A Bonser Or F M Duncan Mr J Holdèn Mr M J Lough Ir T R Flier Mr P A Franks Mrs L Norris MrsMLCox Dr D T Shakespèare (appointed 31 July 20201 Ms A K Van Duyvenvoorde lappoinled 10 December 20101 Mr A M Ryder lapwinled 10 December 20201 Secretary Registered Offle& Mrs L A Kelly St Catherine's Hospice (Lancashi) Limited Loslock Lane L05toGk Hall Preston PR5 5XU Chartty Number 1017345 Registered Audltor MHA Moore and Srllalley Chartered Accountants Richard House nd(ley Squa Preston PR13HP InvgBtment managers Cazenove Capital Management 12 Moorgate Lon(lon EC2R SDA LGT Veslra LLP 14 Cotnhill London EC3V 3NR Page 1
THE JOHN THACKER CHARITABLE TRUST REPORT OF THE TRUSTEES The trustees have pleasure in presenting their report and accounts lor the year ended 31 Mar¢h 2021. The financial statements have been prepared in a¢cordance with the a(ountIng policies set out in notes lo the accounts and comply with the charity's trust deed, the Chaiiliès Act 2011, and Accounting and Reporting by Charities. Statement of Recomrrended Practice applicable to charities preparing their accounts in aceordancè with the Financial Reporting Standard applicablè in the UK and RepubliG of Ireland IFRS 1021 published in October 2019. Structure, gov&mance and managernènt The Tiust was created utilising a bequest left lo St Catheiille'5 Hospice ILancashirel Limited by John Thacker who died on 18 August 1991. The Trust 15 registered as a Charity with the Charity Commissioners. Goveinance arrangements are described in a Govemance Manual. The Governan Manual includes sections on the appointment ol Iru51ees. 11 describes the recruitrHent process, which for recent appointments has involved a recruitmènt agency with specialist knowledge of the sectoi. Appointments rnay be made by the board but they have lo be supported by the Association at the AGM. Induction of trustees indudes participation in the hospice's induction progiatnme for staff and volunteers as well as specific components lor their ro. There is a developrnent progiamme for trustees that include gUlar rewew. training l updating requirements, meeting with CEO I Chair of Ihe Board. attendance at staff and volunteer seminars. The trustees do ntsl receive ary remuneration 01 reimbursement of expense5. The tiuslees consider the board of trustees as comprising the key management pe150nnel of thè charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All tnjstees give ol their time freely and no Iruslee remuneration was paid in thè year. Furthei detail on struclure. governance and management ariangèments can be found within the trustees, report of the charity, St Catherine's Hospice ILancashirel Limited. Obj•ctives and activities for thè public benefit The trustees are required to hold the capital and income of the Tru51 Fund for the benefit of Sl Catherine'5 Hospice (Lancashirel Limited, which is a registered charity, number 512186. The trustees confirm that they have referred to the guidance oolltained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aim and objectives and in plannillg future activities. Further detail on how the Trust achieves these objectives can be found within the trustees, report of the charity, St Catherine'5 HoSpe (Lancashirel Limited Achievements and pèrforniance The Trust has a surplus of inGome for the year of £11.112 12020". £18,540) after deducting non-charitablè expenditure of £14.82812020'. £13,918). The net gains or losse5 on disposals of investments sold dLJring the year and on rÈvaluation of investments at the year-end amounted to net gains of £118.45512020.' net losses of £47,415). As a re5uII. lolal funds carrièd forward are £2,310.02712020.' £2.180,4601 Financial revièw and reserves policy Income is being accumulated by the trustees lo pay for futurè capital projects at the Hospice. Investment policy The Charitable Trust seeks lo preserve the valuè of its capital. keeping ri$k1evels low, whilst seeking lo ensurè a rate of return that exceeds that available by keeping the funds in an instant access bank account. To this end. trustees have opted to split the reserves up, investing a portion in instant access. noticè and fixed term bank accounts and investing some with experiencèd investment managers Page 2
THE JOHN THACKER CHARITABLE TRUST REPORT OF THE TRUSTEES Icontinuedl Investment policy Icontlnu•dl In 2015 adviseis Cowgill Holloway Wealth Managernenl were engagèd lo assi%t the trustees in selecting appropriate and experienced invèslrnenl rnanager5. Following a selection process that involved interviews with a number of prospective Investrrent managers, £1 million of reserves was split between two companies. Cowgill Holloway Wealth Management support the ItU51ees by regularly reviewing the performan¢e of these investments and reporting back. In 2019 one of the investtnents was under-performing and following advice from Ctswgill Holloway, the funds wore moved lo a different firm ol investment manager5. Perfomiance has since improved. Risk managément The principal risks fad by thè Trust lie in the perfOrnian of inveslrllents. This is mitlgaled by ielaining expert investrnent managers and having a dwersified investment portfolio. ans for future periods A new five year strategic plan is being dèvéloped lor St Catherine's Hospice and will include consideration of the organisation's facilities and are8s of growing demand for servrces. A strategic rèview of the hospice's InforTration Systems is planned In the next 12 months. It is also working with partners In the bcal heatth economy to enhance the community seNce and improve responsiveness and Integration wth other prowders. As stated above in the Financial Review section of this report. the trust is accumulating income lo fund the future plans outlined in the five year strategic plan. Trnstees. responsibilities The trustees are respon51ble for preparing the Trusteès. Report and the financial ststements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Aceepted Accounting Practicel. The law applicable to chaiilies hl England & Wales rÈquiies the trustees to prepare financial siatements for each financial year which give a true and fair view of the stale of affairs of the charity and of the Incoming resources and application of resour¢e5 of the charity for that pèriod. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them ¢on515tently', observe the rnelhods and principles in thè Charities SORP 2019 IFRS 1021." made judgements and estitnales that are reasonable and prudent.. state whether applicable acwunling standards have been followed, subject to any rnalerial departures disclosed and explained in the financial statements". and prepare the financial statements on the going concern basis unless rt Is inappropriate to prèsume thal the charity will continue in operation. Th8 trustees are responsible for keeping accounting records that disclosè reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial statements Cotnply with the Charities Act 2011, the Chanly (Accounts and Reports) Règulations 2008 and the provisions of the trust deed. They are also responsible lor safeguarding the assets ol the charity and hence for taking reasonable steps for the prevention and dètection of fraud and other irregularities. Page 3
THE JOHN THACKER CHARITA8LE TRUST REPORT OF THE TRUSTEES Icontinu•dl Auditor A resolution proposing that MHA Moore and Smalley be re-appointed as auditor of the charity will be put to the Annual General Meeting. Signed on behalf of the Charity Mr J G Chesworth - Chairman 11 October 2021 Page 4
THE JOHN THACKER CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Opinion We have audited the financial statements of The Jottn Thacker Charitable Trust Ithe '¢harity J for the year endèd 31 March 2021 which cornprise Ihe Statement of Financial Aclivilies, the Balance Sheet and notes lo the financial 51alements. induding a summary of $ignificanl accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom A¢¢ounling Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and RepublNc of Ireland (United Kingdom Generally Attepted A¢counling Practicel. In our opinion thè financial slalemenls.. gwe a true and fair view of thè slate of the charity's affairs as at 31 March 2021 and of ils incoming resources and application of reSoUrs, for the year then ended., have been properly prepared in accordance with United Kingdom Generalty ACpIe A¢UntIng Practtce,. and have been prepared in accordancè with the requirements of the Charilies Act 2011. Basis for oplnion We conducted our audit in accordance with Intèmaknonal Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audrtorfs responsibilitie5 for the audit of the financial statements section of our report. We are independent of thè charity In accordance with the ethical requirements that are relev8nt to our audit of the finanaal statèmènts In the UK, including the FRC'5 Elhic81 Standard, and we have fulfilled our tsther ethical responsibilities in accordance wrth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis fc our opinion. Conclusions relating to going concem In auditing the financial stslemen15. we have concluded that the trustees. use of the going concem basis of a¢¢ounting In the preparation of the financial statements is appropate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that. individually Of collectively, rnay cast significant doubt on the charity's ability lo continue as a going concern for a period of at least twelve months from when the financial stalefflents are authorised for issue. Our responsibilslies and the responsibilities of the trustees th rèspect lo going concern are described in the relevant sections of this report. Pagè 5
THE JOHN THACKER CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Icontinuedl 0th8r inforniation The other information comprises the inform3lion in¢lLJded in the trustees, annual report, other than the financi41 statements and our auditor's report Ihereon. The trustees are responsible for the olhei inft)trnalion ntaIned within the annual report. Our opinion on the financial statements does not cover the othei infotrnalion and, except lo the exlenl otherwise expIltIY slated in our report, we do not express any lorrn of assurance condusion Ihereon. Our responsibility is to read the other information and, in doing so. consider whether the other inforrvation is materially inconsistent wrth the financial slaletnenls or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we Identify such matèrial inconsistènaes or apparent material misstatements, we are required to delerrnine whether this gives risè to a material misstatèment In the financial statements themselves. If, based on the work we have performed. we conclude that there is 8 rllaterial misstatement of this othèr information, wè are required to report that fact. We have nothing to report in this regard. Matters on whi¢h we a requtred to report by •xcèptlon We have nothing to report in respect of the following matter5 in relation lo which the Charitie5 (Accounts and Rep(Ktsl Regulations 2008 require us to report lo you ff, in our opinion.. the information given in the fInarla1 statements is incon5IStÈnl in any matèrial rèspeel with the trustees. report., or the charity ha5 not kept adequate aocounling cOrds". or the financtal statements are not in agreement with the accounting record5 and returns.. crf we have not received all the InfortHalK)n and explanatitsns we qUIre for our audit. Rèsponsibilities of trustees As explained tnore fully in the Iiust8e5' responsibilitiès statement set out on page 3, the trustees are responsible lor the preparation of financial staternents which give a true and fair view. and lor such Internal control as the trustees determine is necessary to enable the preparation of financial staterrents that ale free from material misslaterrent, whelhei due lo fraud or error In preparing the financial statements, the trustees are responsible for assessing the ¢harity's ability lo Continue as 3 going concérn, discbsing, as applicable, matters related lo going concern and using the going concem basis ol accounting unless the Iru51ees either intend to liquidate the charity or to tsase operations, or have no realistic alternative but to do so. Audito$ r¢sponsibilltl•s for th• audit of the financial statements We have been appointed as auditor under Section 144 of the Charities Act 2011 and pOrt in afjwrdance wrth regulations made under s&¢tion 1 $4 of that Act. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo traud or error. and lo issue an audilorfs report that Includes our otj'nion Reasonable assuiance is a high level of assuranTr. but is nol a guarantee that an audrt conducted in accordance with ISAS IUKI will always delecl a tnatenal misstatement when it exists. Misstatements can arise from fraud or error and are considered rnalerial if, individually or in the aggregate, they could ieasonably be expected lo Influence the econom decisions of users taken on the basis of these finanaal statements. Page 6
THE JOHN THACKER CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Icontinuedl Irregularities. induding fraud. are instances (>f n(>n-compliance with laws and regulatK)ns. We design proCèduS n line with our responsibilities, outlined above, to detect rnaterial rnisslatements in respect of irregularities, including fraud. The spe¢ific procedures for this engagement and the extent to ¥vhich these are capable ol detecting irregularities, including fraud is detailed below-. Enquiriès wlh managèmènt, about any known or suspected instances of non-compliance with L4ws and regulation5 and fraud.. Challenging assumptions and judgements rnade by management, in particular in relab'on to fulure perfomance in light of the impact of Covid-19.' Auditing the risk of rnanagement ovèrride of contrr>ls. including through tests'ng joumal entriès and other adjustments for appropriateness., and Revwing board minutes. Because of the inherent limitations of an audit, therè is a risk that we will not detect all iiregularrties. including those leading lo a rnaterial misstatement in the financial staletllellls or non-corllpliance with regulation This risk increases the rn0 that compliance wrth a law or regulation is removed from the events and transactions reflected in the financial 51alefnenls, as we will be less likely to become aware of instances of non-compliancé. The fisk is also greater gardIng irregularities occurring due lo fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misreye5entalion. A further description of our responsibilities for the audit of the finanaal statements is located on the Financial Reporting Council's website al.. www.frc.org.uklaudilorsresptsnsibililie5. This description f01rn5 part of our udito¢s report. Use of our report This r8POrt is made solely to the charity's trustees. as 8 body. in accordance with Part 4 of the Charities IA¢¢ounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we mtghl state to the charity's trustees those matters we are required to state to them in an auditor's report and lor no other purpose. To the lullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the chaiity and the tharity's trustees as a body, for our audit work, for this report, or for the opinions we have fortned. 4 iTL S MHA Moore and Smalley Chartered Accountants & Ststutory Auditor Ri¢hard House nokley Square Preston PR1 3HP 10111121 Dale.. MHA Moore and Smalley is eligible to act as an auditor in temis ol section 1212 of the Companies Act 2006. Page 7
THE JOHN THACKER CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 Unrestrl¢ted In¢ome En(towmeftt lunds fund 2021 Totsl 2020 Total Note Income from Investments 25,940 25,940 32,458 Total incom 25,940 2S,940 32.458 Expenditure on Raosing funds". Inveslrnent managernent cos15 14.828 14,828 13.918 Total expenditure 14.828 14,828 13.918 Net income before gainsl Ilossesl on invèstm•nts 11.112 11,112 18.540 Net gainslllossesl on investments 118,455 118,455 147,4151 Net incomellexpefiditurel 11,112 118.455 129,567 128.8751 Transfers beeen funds Nèt mov•mont In funds 11,112 118.4SS 129,567 128,8751 Reconciliation of fund¥= Total funds brought forward 591,847 1,588,613 2,180.460 2,209,335 Total funds carried forward 602,959 1,707,068 2,310,027 2,180,460 The comparative statement of financial actwities can be found in note 8 lo the accounts. Page 8
THE JOHN THACKER CHARITABLE TRUST BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Nots Fixed asset investsnents 1,083,371 9e8,705 Curr•nt ass•ts Cash at bank Accrued income 2,219,739 6,917 2,207,653 4,102 2.226,656 2,211,755 Creditor5 - amounts falling due thin one year 1.IXIO,000 1,000,000 Net current assets 1,226,656 1,211.755 Net assets 2,310,027 2,180.460 Represented by: Unrèstrictèd incomé funds Unrestrided endowment fund 602,959 1,707.068 591,847 1,588,613 Total fvnds 2,310,027 2.180.460 These accounts were approved by the trusteès on 11 October 2021 and signed on its behalf MrJ G Chesworth- Chaimian PArs L Norris . Twstee Page 9
THE JOHN THACKER CHARITABLE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Accountlng policies Basis of accounting and general informatio The financial Statements have been prepared in accoidance with A¢eounting and Reporting by Charities". Statement ol Recornmended Practice applicable lo charities preparing their acuntS in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011 and UK Gener311y Accepted Aeeounting Practice. The financial statements have been prepared lo give a 'true and lairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the extent requiréd to provide 2.true and fair view,. This departure has Involved following Accounting and Réporting by Charities.. Slalement ol Recommended Practtce applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard appIable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Chaiilies". Statemènt of Recommènded Practice effective from 1 April 2005 whtt has since been withdrawn. Thè accounts have been prepad under the hiStOral cost convention as modified by the indusion of investments al rnarkel value. The Charity constitutes a public benefit entity as defined by FRS 102. Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no tnaterial uncertainly exists that casts doubt on the Charitable Trust's ability to continue lo operate. The Iruslees have con5ideied the level of funds héld and thè Èxpected level of income and expenditure for 12 months from aulhori51ng these financial 51alements Thè budgetèd Income and expendituré is sufficEnt with the level of reserves lor the charity to be able to continue as a going ¢onGern. The trustees expect that Covid-19 could continue to have some impact. though not signrficant, in relation to expected future performanee. or on future assèt valuations. The trustees have engaged Cowgill Holloway Wealth Mallagemenl lo rnonitor the pos11ion of the investments and lo advise accordingly. The trustees will lake appropriate action should the rksk of erosion of reserves values continue. Funds stru¢tur¢ The trustees hold the capital and income of the Trust Fund for the benefit of St Catherine's Hospice ILancashirel Limited whrch is a registered charity. number 512186. Although the trustees have the power lo distribute capital, the current policy i8 lo distribute only investment income. The unrestricted income fund on the Statement of Financial Actiwtie5 represents undisliibuted incotHe and the unrestricted endowment fund represents capital together with subsequent gain5 and lossè5 arising on disposal and rèvaluation. Income Incorne has beèn crèdited to thè income fund on an accruals basis. All incorne is recognised once the charity has enlitlernent to the income, there is suffiGienl certainty or leipt and $0 it is probable that the income will be received, and the amount of income receivable Gan be measured reliably Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate 811 costs related to the category. Where costs cannot be directly attributed lo particular headings they have been allocated to activities on a basi5 Gorisislenl with the use of the re50urTrs. Page 10
THE JOHN THACKER CHARITABLE TRUST NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl Investsnents Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balan sheet date using the closing quoted market price. The statement of financial activitie5 includes the nèt gains and losses arising on revaluation and disposals throughtsul the year. All gains and losses are taken lo the statement of finanaal activities as they anse. Realised gains and sses on investments are calculated as the difference betsveen sales proceeds and their opening arying valLJe or their purchase value if acquiied subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference belwe8n the lair value at the year end and their carrying value. Reali5ed and unrealised investment gains and losse5 are combined in the Statèment of Financial Activities. Oebto Trade and other debtS are recognised at the sett18mènt amount due after any trade dcOUnt ofFered. Prepayrnents ale valuod at the amount prepaid net of any trade diswunts duè. Credlto Creditors are renised where the charity has a present obligation reSu.n9 from a past event Ihat will probably result in the transfer of funds to a third party and the afflount due lo settle the obligation can be tneasured or estimated reliably. Creditor5 arè nom)ally recognised at their settlement arnount after alkiwing for any trade discounis due. Financial instruments Financial instruments are classified and accounted foi. aordIng lo the substance of the contractual arrangement. as finan¢ial asséts, financial liabilities or equity inslrumenls. An equty instrumènt Is any contract that evidence5 a residual interest of the charity after deducting all of 115 liabilities. Investsnent income 2021 2020 Investment account interest vidends 14,901 11.039 18.397 14,061 25,940 32,458 l income was credited to the unrestrictèd incomè fund in the current and previous year. Page11
THE JOHN THACKER CHARITABLE TRUST NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Fixed asset investments 2021 2020 Movement in fixed asset investments: Market valvè at 1 April 2020 Additions at cost Disposal proceeds Net investment gainslllossesl Movem&nl in ¢ash held on deposit by invesltllent agents 968.705 310,963 1335,1391 118.45S 20,387 1,015,977 785,748 1753.1081 147.4151 112,4971 Markat value at 31 fvlar¢h 2021 1,083,371 968,705 2021 2020 Invesknènts at mark•t valu• eomprls•d.. Equities Bonds Liquidity Alternatives Cash held by investment managers 367,027 450.764 20,000 150,608 94,972 302.140 430.964 39,812 121.204 74,585 Totsl Investments 1,083,371 968,705 ash at bank and in hand 2021 2020 Instant access accounts Fixed term deposit accounts 1,498.899 720,840 1.182.992 1,024,661 2,219,739 2,207,653 Page 12
THE JOHN THACKER CHARITABLE TRUST NOTES TO THE ACCOUNTS ICONTINUEOI FOR THE YEAR ENDED 31 MARCH 2021 Creditor 2021 2020 St Catherine's Hospice (Lancashirel Ltd 1,000,000 l,CQo.)O 1,000,000 1,CQO,000 Tran$a¢tions wlth trnsts•s and r•lated parties rijring the year the trustees reiVed no remuneratr'on, benefits in kind or reimbursed expenses12020'. £niD. There were no transactions with related parties. The Trust is consolidated into the accounts of St Calheiine's Hospice {LanShirel Lifflrted (Gompany number 01602467 and charity number 5121861. The consolidated finanaal statemenls of this group are available to the public and may be obtained from Companies House, Cardrff. Analysis of balances by fund Unrestricted Unrestricted income endowment funds fund Total fund 2021 Investmenls Current assets Creditors 1,083,371 1,623,697 11.000,0001 1.083,371 2.226,656 11,1100,0001 602,9S9 602,9S9 1,707,068 2.310,027 Unrestricted Unrestricted Incom• •ndowm•nt lunds lund Total funds 2020 Investments Current assèts Creditor5 968.705 1,619,908 11,000.0001 968.705 2.211,755 {1,000,0001 591,847 591,847 1,588,613 2.180,460 Page 13
THE JOHN THACKER CHARITABLE TRUST NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 ststement of financial activities - previous year Unrestricted Income Endowment fund5 fund 2020 Total 2019 Total Incomo from Inveslmellts 32.458 32,458 29,878 Totsl incorne 32.458 32,458 29,878 Exp•nditur• on Fiaising ndS.. Investment management costs 13,918 13.918 14,477 Total expenditure 13.918 13,918 14,477 Net income before gainsl Ilossesl on investments 18.540 18,$40 15,401 Net gainslllossesl on investments 147.4151 147,4151 8.379 N•t incom•ll•xp•nditurèl 18,S40 147.4151 128.8751 23,780 Tr8nsfers between funds Net movement in funds 18.540 147,41 $1 128,8751 23,780 Reconciliation of fvnds: Total funds brought forward 573,307 1,636,028 2,209,335 2,185,555 Total funds carried forward 591,847 1,588,613 2,180,460 2.209,335 Page 14