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2022-03-31-accounts

The City of London Charities Pool

Annual Report and Financial Statements for the year ended 31 March 2022

Charity registration number 1021138

CONTENTS

Structure and Governance ............................................................................................... 2 Achievements and Performance ....................................................................................... 5 Financial Review .............................................................................................................. 6 Trustee’s Responsibilities ................................................................................................. 9 Independent Auditor’s Report ......................................................................................... 10 Statement of Financial Activities ..................................................................................... 14 Balance Sheet ................................................................................................................ 15 Cashflow Statement ....................................................................................................... 16 Notes to the Financial Statements .................................................................................. 17 Reference and Administration Details ............................................................................ 28

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TRUSTEE ANNUAL REPORT STRUCTURE AND GOVERNANCE GOVERNING DOCUMENTS

The governing documents are the scheme approved by the Charity Commission on 23 January 2012, which replaced a previous governing Scheme dated 20 July 1967.

GOVERNANCE ARRANGEMENTS

The Mayor and Commonalty and Citizens of the City of London (also referred to as ‘the City Corporation’ or ‘the City of London Corporation’), a body corporate and politic, is the Trustee of The City of London Charities Pool. The City Corporation is Trustee acting by the Court of Common Council of the City of London in its general corporate capacity and that executive body has delegated responsibility in respect of the administration and management of this charity to various committees and subcommittees of the Common Council, membership of which is drawn from 125 elected Members of the Common Council and external appointees to those committees. In making appointments to committees, the Court of Common Council will take into consideration any particular expertise and knowledge of the elected Members, and where relevant, external appointees. External appointments are made after due advertisement and rigorous selection to fill gaps in skills.

Members of the Court of Common Council are unpaid and are elected by the electorate of the City of London. The Key Committee which had responsibility for directly managing matters related to the charity during 2021/22 was the Finance Committee which has delegated its authority to the Financial Investment Board (one of its subcommittees). The Board is responsible for the Investment Strategy of the Charities Pool including the monitoring of the professional investment manager, Artemis Investment Management, which manages the investments on a daily basis. The above committees are ultimately responsible to the Court of Common Council of the City of London. Most of the Committee’s meetings are held in public, enabling the decisionmaking process to be clear, transparent and publicly accountable. Details of the membership of Committees of the City Corporation are available at www.cityoflondon.gov.uk.

The trustee believes that good governance is fundamental to the success of the charity. A comprehensive review of governance commenced is ongoing to ensure that the charity is effective in fulfilling its objectives. Reference is being made to the good practices recommended within the Charity Governance Code throughout this review. Focus is being placed on ensuring regulatory compliance and the ongoing maintenance of an efficient and effective portfolio of charities that maximise impact for beneficiaries.

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ORGANISATIONAL STRUCTURE AND DECISION-MAKING PROCESS

The charity is administered in accordance with its governing instruments and the City Corporation’s own corporate governance and administration framework, including Committee Terms of Reference, Standing Orders, Financial Regulations and Officer Scheme of Delegations. These governance documents can be obtained via a request to the email address stated on page 28.

Each Member by virtue of their membership of the Court of Common Council, its relevant committees and sub-committees, has a duty to support the City Corporation in the proper exercise of its functions and in meeting its duties as trustee of the charity by faithfully acting in accordance with charity law, the Terms of Reference of the relevant committee or sub-committee, and the City Corporation’s agreed corporate governance framework as noted above, backed up by its standards regime.

INDUCTION AND TRAINING OF MEMBERS

The City Corporation makes available to its Members, seminars and briefings on various aspects of its activities, including those concerning the charity, to enable Members to carry out their duties efficiently and effectively. Induction meetings are provided on specific aspects of the work of The City of London Charities Pool. If suitable seminars or other training options are identified that are relevant to the charity, Members are advised of these opportunities.

OBJECTIVES AND ACTIVITIES

The key objective of the charity is to provide small charities linked with the City of London the opportunity to obtain better returns than could generally be achieved if investments were made individually.

In so doing, the Charities Pool provides income to enable these small charities to pursue their respective objectives.

Investment Policy

The investment policy is to seek an absolute return over the long term in order to provide for the outlay to meet the needs of the unitholders, whilst preserving the fund’s capital base in real terms. In pursuance of the objective, the City Corporation has adopted an investment strategy using bonds, equities and cash. The fund had no direct investments in bonds as at 31 March 2022 (31 March 2021: Nil).

The charity considers proactive engagement with the companies in which it invests to be the most effective means of understanding and influencing the social, environmental and governance policies of those companies. It expects investment managers to take steps to ensure that these factors are adequately addressed in the selection, retention and realisation of investments as far as such factors may affect investment performance.

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Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes”. The City of London Charities Pool does not undertake fundraising activity, hence the charity does not consider it necessary to design specific procedures to monitor such activities.

Public benefit statement

The Trustee confirms that it has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing The City of London Charities Pool’s aims and objectives and in planning future activities. The purpose of the charity is to provide small charities linked with the City of London the opportunity to obtain better returns than could generally be achieved if investments were made individually. Consequently, the Trustee considers that the charity operates to benefit the general public and satisfies the public benefit test.

REFERENCE AND ADMINISTRATIVE DETAILS

The administrative details of the charity are stated on page 28.

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ACHIEVEMENTS AND PERFORMANCE

Over the course of 2021/22 the Charities Pool investment strategy delivered an absolute return (gross of fees) of 11.1% which was below the FTSE All Share Index benchmark return of 13.0%, although this followed a period of outperformance in the prior year (the investment strategy gained 30.7% in 2020/21 versus 26.7% from the benchmark). The Charities Pool invests in an actively managed, high conviction strategy where performance is expected to be volatile over the short term.

The charity distributed a total of £1,198,994 to unitholders during the year (2020/21: £905,952) which is used by the participating charities to meet their objectives.

PLANS FOR FUTURE PERIODS

The effects of the global pandemic of Coronavirus were still being experienced in 2021/22, and continued to impact upon the value of the investments held by the charity, but the fund manager still reported an increase in market values from the position at 31 March 2021. A recession is also widely predicted in the global stock markets. These factors will impact upon the level of distributable income available to meet the grant-making objectives of the charity.

The Trustee is monitoring the situation and will continue with the running of the Charities Pool and with distributing the fund’s net income to the underlying charities.

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FINANCIAL REVIEW

Overview of Financial Performance

Review of the Charity’s Financial Position

The Charities Pool is invested in a strategy which predominantly holds UK equities. The market value of UK equities as at 31 March 2022 increased in value to £22,939,193 (2020/21: £21,734,914). The investments continue to be managed effectively and as such the charity remains a going concern.

Principal Funding Sources of the Charity

The sole source of funding for the Charities Pool is the dividend and interest income from the underlying investments.

Income

In 2021/22 the charity’s total income for the year was £1,502,683, an overall increase of £125,556 against the previous year (2020/21: £1,377,127). This was due to an increase in dividend payouts and new subscriptions in 2021/22 compared to 2020/21 (see below).

Income comprised £1,329,966 from investments (2020/21: £1,027,355), being £1,329,726 from managed investments (2020/21: £1,027,240) and £240 from interest receivable (2021/22: £115). New unit subscriptions to the fund totalled £172,717, with 2 unitholders contributing (2020/21: 3 unitholders, £349,772). Further information on new subscriptions is stated in Note 16.

Expenditure

Total expenditure for the year was £1,340,550 (2020/21: £1,272,259), with charitable activities expenditure in the year totalling £1,198,994 (2020/21: £1,171,529). Distributions for the year, paid out to unitholders in September and March of each year, totalled 48.25 pence/unit (2020/21: 36.46 pence/unit), amounting to £1,198,994 (2020/21: £905,952). During the year, no unit holders took a decision to redeem units (2020/21: one unitholder, £265,577). Further details on redemptions are reported in Note 16.

Expenditure on raising funds for the year was £141,556 (2020/21: £100,730). This consists of managed investment expenses payable on the fund in the year of £127,768 (2020/21: £100,730). These are processed as movements on the capital balances and are treated as disposals. Hence, they are deducted from the Fixed Investments balances. Expenditure for 2021/22 also includes audit fees £5,000 (2020/21: Nil) and administration fees £8,788 (2020/21: Nil) for the first time following the decision by the City Corporation as Trustee to seek reimbursement for the administration fees incurred from each of its charities.

Funds held

The charity’s total funds held on behalf of unitholders increased by £1,204,588 or +5.50% to £23,094,034 as at 31 March 2022 (2020/21: £21,889,446). This increase is

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mainly the result of gains on investments of £1,042,804 (2020/21: gains of £4,310,343). During the year, there were subscriptions for new units of £172,717 in 2021/22 (2020/21: £349,772) but there were no redemption of units (2020/21: £265,577). The cashflow statement on page 16 shows the total movement of cash during the year.

The underlying investments are managed by Artemis Investment Management LLP, with the performance of the fund measured against the fund manager benchmark, being the FTSE All Share Index. The rate of recovery in the financial markets decreased over the twelve months to 31 March 2022 following a major increase in asset prices in 2020/21 mainly due to the recovery from the global pandemic. Under these conditions, investments held in the Charities Pool performed just below the average benchmark level, generating a gross return of +11.1% for 2020/21 (2020/21: +30.7%) compared with the FTSE All Share Index benchmark return of +13.0% (2020/21: +26.7%). However, the longer term performance of the Charities Pool investments, as displayed in the table below, was above benchmark and also showed a slight improvement compared to the long term position reported twelve months ago:

31 March 2022 31 March 2021 31 March 2021
3 year 5 year 3 year 5 year
Fund +7.3% +6.2% +5.0% +7.2%
FTSE All Share +5.3% +4.7% +3.2% +6.3%
Fund Outperformance +2.0% +1.5% +1.8% +0.9%

Details of the funds held, including their purpose, is set out within Note 13 to the financial statements.

Reserves

The objective of the City of London Charities Pool is to maximise revenue returns and capital growth on behalf of its unitholders, with all incoming resources distributed to the unitholders each year. The free reserves of the charity are held to cover working capital needs. The trustee believes that an amount of £15,000 should be held at present, which will be subject to annual review. Given the nature of the charity’s reserves (being the accumulated fund, undistributed income and invested units at cost less profit distributed on redemptions), total reserves levels are above the minimum required to cover working capital needs; undistributed income funds are within the target range (see note 13).

Principal Risks and Uncertainties

The charity is committed to a programme of risk management as an element of its strategy to preserve the charity’s assets. In order to embed sound practice the senior leadership team ensures that risk management policies are applied, that there is an on-going review of activity and that appropriate advice and support is provided. A key risk register has been prepared for the charity, which has been reviewed by the Trustee. This identifies the potential impact of key risks and the measures which are

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in place to mitigate such risks. These have been affected by the Covid 19 pandemic which is also mentioned under “Plans for Future Periods” (page 5).

The principal risks faced by the charity, and actions taken to manage them are as follows:

Risk Actions to manage risks
Decline in income •Implementing strict controls.
•The charity’s funds are invested by a professional
fund manager.
•The Financial Investment Board regularly monitors
the performance of this fund manager.
Where the Trustee
has a conflict of
interest		 •Those concerned having a specific understanding
of trust law.
•Adopting the protocol for disclosing any potential
conflict.
Losing directly
employed staff and/or
the support staff		 •Documenting systems, plans and projects
•Having any necessary training programmes

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TRUSTEE’S RESPONSIBILITIES

The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee must not approve the financial statements unless the Trustee is satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable the Trustee to ensure that the financial statements comply with the Charities Act 2011. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustee is aware:

Financial statements are published on the Trustee’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Trustee’s website is the responsibility of the Trustee. The Trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.

Adopted and signed for on behalf of the Trustee.

Henry Nicholas Almroth Colthurst, Deputy

Chairman of Finance Committee The City of London Corporation Guildhall, London

Randall Keith Anderson, Deputy

Deputy Chairman of Finance Committee of the City of London Corporation

31 January 2023

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE CITY OF LONDON CHARITIES POOL

Opinion

We have audited the financial statements of The City of London Charities Pool (‘the charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet 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 Charity 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 Trustee's 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 Charity'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 Trustee with respect to going concern are described in the relevant sections of this report.

Other information

The Trustee is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of the Trustee

As explained more fully in the Trustee’s responsibilities statement set out on page 9, the Trustee is 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 Trustee determines 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 Trustee is responsible for assessing the Charity’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 Trustee either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the Charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, Health and safety legislation, and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustee and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, legal counsel and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible

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for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustee 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 charity and the charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

55 Ludgate Hill, London, EC4M 7JW

31 January 2023

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Funds
2021/22 2020/21
Notes Total Funds Total Funds
£ £
Income from:
Charitable Activities 2 172,717 349,772
Investments 3 1,329,966 1,027,355
Total income 1,502,683 1,377,127
Expenditure on:
Raising funds 4 141,905 100,730
Charitable activities 5 1,198,994 1,171,529
Total expenditure 1,340,899 1,272,259
Net gains/(losses) on investments 8 1,042,804 4,310,343
Net movement in funds 1,204,588 4,415,211
Reconciliation of funds:
Total funds brought forward 13 21,889,446 17,474,235
Total funds carried forward 13 23,094,034 21,889,446

All of the above results are derived from continuing activities.

There were no other recognised gains and losses other than those shown above. The notes on pages 17 to 27 form part of these financial statements.

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BALANCE SHEET

AS AT 31 MARCH 2022

AS AT 31 MARCH 2022
Notes 2022 2021
Total Total
£ £
Fixed assets:
Investments 8 22,603,776 21,439,065
Current assets
Debtors 9 228,238 180,695
Investments 8 335,417 295,849
Total current assets 563,655 476,544
Creditors: Amounts falling due within
one year
Creditors 10 (28,756) (25,854)
Bank Overdraft (44,641) (309)
Total Creditors: Amounts falling due
within one year (73,397) (26,163)
Net current assets 490,258 450,381
Total assets less current liabilities 23,094,034 21,889,446
The funds of the charity:
Unitholders' funds 13 23,094,034 21,889,446

The notes on pages 17 to 27 form part of these financial statements Approved and signed on behalf of the Trustee.

Caroline Al-Beyerty 31 January 2023

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CASHFLOW STATEMENT

AS AT 31 MARCH 2022

AS AT 31 MARCH 2022
Notes 2021/22 2020/21
Total Total
£ £
Cash flows from operating activities:
Net cash (used in) operating activities 14 (1,385,540) (1,036,045)
Cash flows from investing activities:
Interest and income from investments 1,329,966 1,027,355
Proceeds from sale of investments 5,433,435 4,847,271
Purchase of investments (5,555,342) (5,329,942)
Net cash provided by investing activities 1,208,059 544,684
Cash flows from financing activities:
Net Receipt/(Payment) from sale/purchase of
new units 172,717 84,195
Net cash provided by/(used in) financing
activities 172,717 84,195
(Decrease) in cash in the year (4,764) (407,166)
Change in cash and cash equivalents in
the reporting period (4,764) (407,166)
Cash and cash equivalents at the
beginning of the reporting period 295,540 702,706
Cash and cash equivalents at the end of
the reporting period 290,776 295,540

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NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the financial statements of the charity.

(a) Basis of preparation The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared under the historical cost convention, and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) and the Charities Act 2011.

(b) Going concern

The City of London Charities Pool is a common investment fund operating in a similar way to a unit trust. The financial statements have been prepared on a going concern basis as the Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern. The charity only spends the income that is generated from its investments, so maintaining its capital base. The latest forecast anticipates that adequate funds will be available in the 12 months from the signing of these financial statements to enable the charity to continue to fulfil its obligations. In making this assessment, the Trustee has considered the ongoing economic impact of the Covid-19 pandemic on the value of investment assets held, future income levels and the liquidity of the charity over the 12-month period following the signing of these financial statements.

The fund will continue to operate for as long as charities use its services which in turn will depend upon the investment performance of the Pool and the financial circumstances of each charity.

As a result of enquiries made with unitholders, the Trustee has a reasonable expectation that the Pool has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Trustee continues to adopt a going concern basis for the preparation of the financial statements.

(c) Key management judgements and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of decisions about carrying values of assets and liabilities that are not readily apparent from other sources. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised

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and in any future periods affected. Management do not consider there to be any material revisions requiring disclosure.

(d) Income

All income is included in the Statements of Financial Activities (SOFA) when the charity is legally entitled to the income; it is more likely than not that economic benefit associated with the transaction will come to the charity and the amount can be quantified with reasonable certainty. Income consists of dividends, interest receivable on cash held by the fund manager and new units subscriptions.

(e) Expenditure

Expenditure is accounted for on an accruals basis and has been classified under the principal categories of ‘expenditure on raising funds’ and ‘expenditure on charitable activities’. 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.

The charity does not employ any staff. Officers of the City Corporation provide financial and governance administrative assistance to the charity when required. From 2021/22, the City Corporation, as Trustee, has taken a decision to seek reimbursement for the administration fees incurred from each of its charities.

(f) Taxation

The charity meets the definition of a charitable trust for UK income tax purposes, as set out in Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the charity is exempt from UK taxation in respect of income or capital gains under part 10 of the Income Tax Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

(g) Investments

Investments held within the Charities Pool are managed by Artemis Investment Management LLP. All of the securities held are listed on a stock exchange. Investments are valued annually at the bid-market price at the close of business on 31 March. Cash balances held within the investment portfolio as part of the portfolio strategy, but with a maturity date of less than one year are classified as current asset investments. Gains and losses for the year on investments held as fixed assets are included in the Statement of Financial Activities.

(h) Funds structure Income, expenditure and gains/losses are allocated to particular funds according to their purpose:

Unrestricted income funds – these funds can be used in accordance with the charitable objects on behalf of the unitholders by the Trustee and include income generated from those assets representing unrestricted funds.

(i) Indemnity insurance The City of London Corporation takes out indemnity insurance in respect of all its activities. The charity does not contribute to the cost of that insurance.

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2. INCOME FROM NEW UNITS SUBSCRIPTIONS

Total Total
2021/22 2020/21
£ £
New units subscriptions 172,717 349,772
No. No.
New units purchased 18,420 48,127
3.
INCOME FROM INVESTMENTS
Total Total
2021/22 2020/21
£ £
Income from Investments held 1,329,726
1,027,240
Interest receivable 240
115
1,329,966
1,027,355
4.
EXPENDITURE ON RAISING FUNDS
Total Total
2021/22 2020/21
£ £
Investment management fees 127,768
100,730
Audit Fees 5,000
-
Administration Fees 8,788
-
Fair Value 349
-
141,905
100,730

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5. EXPENDITURE ON CHARITABLE ACTIVITIES

Total Total
2021/22 2020/21
£ £
Distributions to unitholders 1,198,994
905,952
Redemptions-disposal of units - 265,577
1,198,994
1,171,529
Distributions - pence/unit 48.25
36.46
Redemptions - number of units -
34,466

6. AUDITOR’S REMUNERATION

Crowe LLP are the auditors of the City of London’s City’s Cash Fund and provide assurance services for all of the different charities of which it is Trustee. From 2021/22, the City Corporation, as Trustee, has taken a decision to seek reimbursement for the audit fee incurred from each of its charities. In 2021/22 an audit fee of £5,000 was recharged (2020/21: Nil). No other services were provided to the charity by its auditors during the year (2020/21: Nil).

7. TRUSTEE EXPENSES

The members of the Finance Committee of the City of London Corporation acting on behalf of the Trustee did not receive any remuneration or reimbursement of expenses during 2021/22 (2020/21: nil).

8. INVESTMENTS

Analysis of movement in investments:

2022 2021
£ £
Market value 1 April 21,439,065 16,646,051
Additions 5,555,342 5,329,942
Disposals (5,433,435) (4,847,271)
Gain/(Loss)for theyear 1,042,804 4,310,343
Market value 31 March 22,603,776 21,439,065
Cash held by Fund Manager 335,417 295,849
Total investments at 31 March 22,939,193 21,734,914
Historic cost 31 March 20,486,543 19,656,526

20

Total investments as at 31 March are split as follows:

Market value 2021 2021
£ £
Long-term 22,603,776 21,439,065
Short-term 335,417 295,849
22,939,193 21,734,914

The geographical spread of investments at 31 March was as follows:

Held
Held in the outside the Total at 31
UK UK March 2022
£ £ £
Equities 18,652,149 2,604,862
21,257,011
Pooled Units 1,346,765 -
1,346,765
Cash held by Fund Manager 335,417 - 335,417
Total 20,334,331 2,604,862
22,939,193
Held
Held in the outside the Total at 31
UK UK March 2021
£ £ £
Equities 17,750,501 2,525,864
20,276,365
Pooled Units 1,162,700 -
1,162,700
Cash held by Fund Manager 295,849 - 295,849
Total 19,209,050 2,525,864
21,734,914

9. DEBTORS

2022 2021
£ £
Accrued income 228,238 176,239
Recoverable VAT - 4,456
228,238 180,695

Accrued income represents those dividends confirmed as receivable prior to 31 March each year but not received as at that date.

21

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022 2021
£ £
Other creditors 28,756 25,854
28,756 25,854

11. MOVEMENT IN UNIT-HOLDERS FUNDS DURING THE YEAR

2022 2021 2021
Funds Subscribed Units £ Units £
Balance at 1 April 2,475,044 12,065,861
2,461,383
11,854,113
Redemptions during
the year - - (34,466) (138,024)
Subscriptions during
the year 18,420 172,717
48,127
349,772
Invested units at 2,493,464 12,238,578
2,475,044		 12,065,861
cost
The unit-holders values show the purchase costs and the original amounts paid for
the units sold at the transaction dates since inception of the City of London Charities
Pool.
12.
ANALYSIS OF NET ASSETS		 BETWEEN FUNDS
At 31 March 2022 Unrestricted Income Funds
General Fund Total at 31
March 2022		 Total at 31
March 2021
£ £
Fixed assets – investments 22,603,776 21,439,065
Current Assets 563,655 476,544
Current Liabilities (73,397) (26,163)
Total 23,094,034 21,889,446

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

22

13. MOVEMENT IN FUNDS

Total as at
Total as at 1 Gains & 31 March
At 31 March 2022 April 2021 Income Expenditure (losses) Transfers 2022
£ £ £ £ £ £
General Funds:
Accumulated fund 12,328,246 - - 1,042,804 - 13,371,050
Undistributed income 20,791 309 (11,242) - - 9,858
Invested units at cost 12,065,860 172,717 - - - 12,238,577
Profit distributed on
redemptions (2,525,451) - - - - (2,525,451)
Total Unit holder Funds 21,889,446 173,026 (11,242) 1,042,804 - 23,094,034
Total as at Total as at
31 March Gains & 31 March
At 31 March 2021 2020 Income Expenditure (losses) Transfers 2021
£ £ £ £ £ £
General Funds:
Accumulated fund 8,017,903 - - 4,310,343 - 12,328,246
Undistributed income 118 20,673 - - - 20,791
Invested units at cost 11,854,113 349,772 (138,025) - - 12,065,860
Profit distributed on
redemptions (2,397,899) - (127,552) - - (2,525,451)
Total Unit holder Funds 17,474,235 370,445 (265,577) 4,310,343 - 21,889,446

Purpose of the accumulated fund

The accumulated fund represents unrealised gains/(losses) in respect of current subscriptions from unitholders.

Purpose of the undistributed income fund

This represents income receivable by the Pool which has not been distributed to subscribers/unit holders.

Total unit-holder funds

The market value per unit as at 31 March 2022 is £9.26 (2021: £8.84). This is calculated by dividing the total value of unit-holders funds as stated above by the total number of units invested (see Note 11).

23

14. NOTE TO THE STATEMENT OF CASH FLOWS

Reconciliation of net income/(expenditure) to net cash flow from operating activities.

----- Start of picture text -----
|||| |---|---|---| |2021/22|2020/21| |£|£| |Net income/(expenditure) for the reporting period| |(as per the statement of financial activities)|1,204,588|4,415,211| |Adjustments for:| |Interest and income from investments|(1,329,966)|(1,027,355)| |(Gain)/Loss on investments|(1,042,804)|(4,310,343)| |Net (new subscriptions)/redemptions|(172,717)|(84,195)| |(Decrease)/ increase in Debtors|(47,543)|(29,199)| |(Decrease) in Creditors|2,902|(164)| |Net cash (used in) operating activities|(1,385,540)|(1,036,045)|

----- End of picture text -----

15. RELATED PARTIES

The City of London Corporation is the sole Trustee of both the City of London Charities Pool and of a number of the charities which are unitholders within the Pool.

The charity is required to disclose information on related party transactions with bodies or individuals that have the potential to control or influence the charity. Members are required to disclose their interests, and these can be viewed online at www.cityoflondon.gov.uk.

16. STATEMENT OF FUNDS HELD BY UNIT-HOLDERS

The charity holds funds on behalf of charities which have met the terms of the provisions of the Pool’s New Governing Scheme dated 23 January 2012. A schedule of the charities, their respective invested amounts, their market values and distributed funds for the financial year being reported is provided below.

Unit-holder funds

----- Start of picture text -----
||| |---|---| |2022| |£| |Unit-holder funds (per summary of underlying charities)|23,099,451| |Listed debtor – Recoverable VAT - Estimated but not listed|(5,190)| |Other adjustments|(227)| |Total of unit-holder funds|23,094,034|

----- End of picture text -----

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CITY OF LONDON CHARITIES POOL DISTRIBUTION AND MARKET VALUE STATEMENT 2021-22

Class or Subscriber Commission No . No. of Units Net Amount Market Value Market Value Market Value Market Value Market Value Distributed Distributed Distributed Distributed
at 31st March 2022 Subscibed (Bid price) (Bid price) (Bid price) 2021/22 2021/22
(Per Unit Values)
Education
City of London School
Bursary and Awards Funds
City of London School for Girls
Scholarships and Prizes
Bursary Funds
City of London Freemen's School
Charities Administered (In Connection With)
Bursary Fund
Sub-Total Education		 276654
276251-5
276251
312120
284769		 416,870
9,780
455,832
24,140
149,423		 £2,297,194.57
£44,716.77
£2,304,438.13
£82,620.93
£1,080,215.26
£5,809,185.66
31st March 2021
£8.842
£3,686,168.81
£86,479.55
£4,030,689.90
£205,526.00
£1,166,324.43
£9,175,188.69		 30th
September 2021
£9.339
£3,893,191.97
£91,336.43
£4,257,062.11
£217,068.78
£1,231,827.72
£9,690,487.01
31st March 2022
£9.264
£3,861,883.68
£90,601.92
£4,222,827.65
£223,632.96
£1,384,254.67
£9,783,200.88		 1/2 year
toSep 21
22.37 p
£93,249.33
£2,187.68
£101,964.71
£5,199.21
£29,504.61
£232,105.54		 1/2 year
toMar22
25.88 p
£107,893.42
£2,531.24
£117,977.48
£6,247.86
£38,673.35
£273,323.35
1,056,045

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----- Start of picture text -----
Class or Subscriber Commission No. No. of Units Net Amount Market Value Market Value Market Value Distributed Distributed
at 31st March 2022 Subscibed (Bid price) (Bid price) (Bid price) 2021/22 2021/22
31st March 2021 30th September 2021 31st March 2022 1/2 year 1/2 year
toSep 21 toMar22
(Per Unit Values) £8.842 £9.339 £9.264 22.37 p 22.37 p
City's Cash General
Highgate Wood & Queen's Park Kilburn 232986 18,728 £18,728.00 £165,602.15 £174,902.73 £173,496.19 £4,189.25 £4,847.14
Epping Forest
Epping Forest 232990 438 £438.00 £3,873.01 £4,090.53 £4,057.63 £97.98 £113.36
Miscellaneous Trusts
City Educational Trust Fund 290840 423,949 £442,314.60 £3,748,764.79 £3,959,303.49 £3,927,463.54 £94,832.83 £109,725.60
Guildhall Library Centenary Fund 206950 1,233 £1,233.00 £10,902.79 £11,515.11 £11,422.51 £275.81 £319.12
Samuel Wilson's Loan Charity 206964 268,993 £1,135,925.37 £2,378,567.91 £2,512,153.40 £2,491,951.15 £60,170.84 £69,620.20
City of London Almshouses Trust 1005857 86,077 £417,370.50 £761,135.01 £803,881.99 £797,417.33 £19,254.50 £22,278.27
The CoL Combined Education Charity 312836 126,861 £650,382.18 £1,121,767.12 £1,184,767.98 £1,175,240.30 £28,377.44 £32,833.90
Sir Thomas Gresham Charities 221982 74 £365.56 £654.34 £691.09 £685.54 £16.55 £19.15
Hampstead Heath Trust 803392-1 65,359 £317,644.74 £577,936.30 £610,394.45 £605,485.78 £14,620.10 £16,916.08
City of London Archeological Trust 268160 46,298 £278,338.71 £409,389.60 £432,381.80 £428,904.67 £10,356.36 £11,982.75
The CoL Combined Relief of Poverty Charity 1073660 46,832 £320,940.83 £414,111.49 £437,368.88 £433,851.65 £10,475.81 £12,120.96
Partnership for Young London 1062226 10,638 £74,997.97 £94,066.41 £99,349.38 £98,550.43 £2,379.61 £2,753.30
Vickers Dunfee Memorial Benevolent Fund 238878 19,280 £133,996.00 £170,483.21 £180,057.91 £178,609.92 £4,312.73 £4,990.01
Emanuel Hospital 206952 322,659 £2,636,716.61 £2,853,108.98 £3,013,345.71 £2,989,112.98 £72,175.34 £83,509.92
Sub-Total 1,437,419.00 £6,429,392.07 £12,710,363.11 £13,424,204.45 £13,316,249.62 £321,535.15 £372,029.76
Total as at 31 March 2022 2,493,464 £12,238,577.73 £21,885,551.80 £23,114,691.46 £23,099,450.50 £553,640.69 £645,353.11
----- End of picture text -----

26

Class or Subscriber Class or Subscriber Class or Subscriber Commission No . No. of Units Net Amount
at 31st March 2022 Subscibed
Total as at 31Mar21
Class or Subscriber		 Commission No 2,475,044 £12,065,860.57 Market Value Market Value Market Value
. No. of Units
at 31st March 2022 31st March 2021 30th September 2021 31st March 2022
Mid-Market Price
Purchase Price
Selling Price		 £8.845
£8.849
£8.842		 £9.342
£9.377
£9.339		 £9.268
£9.273
£9.264
01-Apr-21 Purchases
Nil
01-Apr-21
Sales
Nil
Balances as at 30 September 2021
01 Oct 21 Purchases:
City of London Freemen's School
Charities Administered (In Connection With)
Bursary Fund
01 Oct 21 Sales
Nil
Balances as at 31 March 2022		 312120
284769		 2,475,044 £12,065,860.57
897
£8,410.82
17,523
£164,306.34
2,493,464 £12,238,577.73		 £23,114,691.46
£8,410.82
£164,306.34

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REFERENCE AND ADMINISTRATION DETAILS

CHARITY NAME: The City of London Charities Pool

Registered charity number: 1021138

PRINCIPAL OFFICE OF THE CHARITY & THE CITY CORPORATION:

Guildhall, London, EC2P 2EJ

TRUSTEE:

The Mayor and Commonalty & Citizens of the City of London

SENIOR MANAGEMENT:

Chief Executive

John Barradell OBE - The Town Clerk and Chief Executive of the City of London Corporation (retired 31 December 2022)

Treasurer

Caroline Al-Beyerty – The Chamberlain and Chief Financial Officer of the City of London Corporation

Solicitor

Michael Cogher - The Comptroller and City Solicitor of the City of London Corporation

AUDITORS:

Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW

BANKERS:

Lloyds Bank Plc., P.O. Box 72, Bailey Drive, Gillingham Business Park, Kent ME8 0LS

INVESTMENT MANAGER:

Artemis Investment Management LLP, Cassini House, 57 St James’s Street, London, SW1A 1LD

Contact for The Chamberlain, to request copies of governance documents:

PA-ChamberlainSecretariat@cityoflondon.gov.uk

28