EDITH MURPHY FOUNDATION
Trustees’ Report
and Financial Statements
for the year ended 31 March 2021
Registered Charity Number 1026062
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
EDITH MURPHY FOUNDATION
INDEX
| Page | |
|---|---|
| Charity information | 1 |
| Trustees’ report | 2 |
| Independent Auditor’s report | 4 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of Cash Flows | 9 |
| Accounting policies | 10 |
| Notes to the financial statements | 12 |
EDITH MURPHY FOUNDATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
CHARITY INFORMATION
Trustees
David Leslie Tams Christopher Paul Blakesley Richard Frederick Adkinson Julian David Tams Charlotte Elizabeth Blakesley Coutts & Co Ludlow Trust Company Limited
To 05 April 2021 From 06 April 2021
Principal office
1[st] Floor, Tower Wharf Cheese Lane Bristol BS2 0JJ
Registered charity number
1026062
Independent Auditor
Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY
Bankers and investment managers
Coutts & Co 440 The Strand London WC2R 0QS
Solicitors
TLT Solicitors One Redcliffe Street Bristol BS1 6TP
Page 1
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
TRUSTEES’ REPORT
The trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 31 March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
STRUCTURE GOVERNANCE AND MANAGEMENT
The Edith Murphy Foundation, set up by the late Mrs Murphy in memory of her late husband Mr Hugh Murphy, is a registered charity constituted under a deed of settlement dated 15 January 1993 as amended by scheme dated 13 May 2013 and registered as a charity 15 September 1993.
Under clause 16 of the deed of settlement the power to appoint trustees is vested in the settlor during her lifetime with no formal policy outlined subsequent to her death. The trustees keep the matter under review. On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by the existing co-trustees on the history of the trust, the day-to-day management, responsibilities of the trustees, the current objectives and future plans.
The charity is managed by the trustees, with decisions on investment policy, the transferring of investments and the making of grants taken by the trustees. All investment transactions are managed by Coutts & Co in accordance with the investment policy. Where practical the trustees visit recipients of potential grants before they are made and previous recipients to verify that the benefit has been obtained.
The trustees have assessed the major risks to which the charity is exposed. The trustees believe that by ensuring controls exist over key financial systems incorporating Coutts & Co’s systems and controls they have established effective systems to mitigate those risks.
OBJECTIVES AND ACTIVITIES
The charity’s objects are:
-
(1) Such exclusively charitable purposes as the trustees shall from time to time in their absolute discretion determine and in particular (but without prejudice to the generality of the foregoing):
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(i) The provision of relief for those who by reason of their age, youth, infirmity, disablement, poverty or social and economic circumstances are suffering hardship or distress or are otherwise in need
-
(ii) The relief of suffering of animals of any species who are in need of care and attention and the provision of maintenance of facilities of any description for the reception and care of unwanted animals and the treatment of sick or ill-treated animals
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(iii) The making of donations to any charitable institution or foundation for the purposes of such institution’s or foundation’s charitable objects of such amount or amounts and in such manner generally as the trustees shall in their absolute discretion determine
In furtherance of these charitable objects and for the public benefit the trustees make grants to charitable organisations and have had regard to the Charity Commission's guidance on public benefit. These grants are made to organisations whose core purposes meet the charity’s objects and the trustees consider in making these grants the charity is fulfilling its aims.
Grantmaking policy
The trustees will consider all applications received where the need falls within the objects of the charity.
Applicants are encouraged to write to the charity setting out their details, what the grant will be used for, who will benefit and the amount requested.
The trustees review applications received at trustee meetings held four times per year, with successful applicants notified subsequent to the meeting.
ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW
During the year under review the charity made grants in furtherance of the objects amounting to £794,446 (2020: £910,280), as set out in note 6, with £28,000 (2020: £17,094) from restricted funds.
Investment income, which is the charity’s principal funding source, amounted to £592,503 (2020: £739,942) with £591,589 (2020: £728,798) coming from listed investments.
The charity made a deficit for the year of £432,723 (2020 deficit: £439,378) before net gains on investments of £4,849,796 (2020 losses: £1,999,949) giving net income of £4,417,073 (2020 expenditure: £2,439,327).
Page 2
EDITH MURPHY FOUNDATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 TRUSTEES, REPORT Al 31 March 2020 the charity's total funds amounted to £37,197,514 with restricted funds ot £929,965 and unreslricled reserves of £36,267,549. 11 is the Iruslees intention to pay out all funds generated by the investments in furthefan of the charity's objects. Inveslmenlpolicy The Foundation's investment goals are lo sustain an inve51menl fund growth al a level equal to.. or at)ove. inltation, using a moderately risk loleranl investment strategy to generate a return to fund its annual grants and cost of operations. Coutts & Co are the Foundation's Investment Managers wf(h the remit lo diversify inveslmer)Is over a broad range ol secur(ties in order lo maximise the real return on as5els, while controlling the investment risk. Whilst the Iruslees do not have any specific policies in place in respect ol social. environmental and glhical considerations Coutts & Co invest under their own Environmental, Social and Governance IESGI overlay policy. Income received from investments tolalled £591,589 with unrealised gains of £1,942,333 from revalijalions ol the portfolio and realised gains of £2,908,292 on investment sales and losses on inveslm8nl portfolio transactions and balances denominated in foreign currencies of £829. The Iruslees have considered the investmfjnl pertormance in the year under review comparably lo the market generally and the impact ol Coronavirus on world economies al the end ol the year and into the subsequent accounting year. They acknowledge the expected investment going forward is Sikely lo be insufficient lo rreet the planned grant awards and costs and therefore will need to utilise capital funds as necessary. The charity does not engage in fundraising activities and there were no fundraising activities during the year under review nor the cornparative year. PLANS FOR FUTURE PERIODS The trustees intend lo ntinue the charty's granl-making activity in furtherance of the charity'5 object5 and Mr5 Murphy's wishes. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are resporFsible for preparing the Trustees, Report and the finanaal statements in accordan with applicable law and Unrted Kingdom Accounting Standards (United Kingdom Generally Accepted A¢counling Praclicel. The law applicable lo charrfties in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and lair view of the state ol affairs ol the charity and ol the incoming rosources and application of resources ol the charity for that period. In preparing these financial statements, Ihe trustees are required lo.. select suitable accounting policies and then apply them consislenlly.. observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial slalemenls., prepare the financial statements on the going coneefn basis unless il is inappropriate lo presume that the charity will continue in 0ratIon. The trustees are responsible lor keeping proper accounting rewrds that disclose with reasonable accuracy al any tiThe the financial position 01 the charity and enable them to ensure that the financial statements comply wych the Charities Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provisions ol the trust deed. They are also responsible lor safeguarding the asset5 01 the charity and hen lor taking reasonable steps lor the prevention and detection ol fraud and other irregularities. Approved by the trustees and signed on their behalf. DLTams Trustee Page 3
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report to the Trustees of Edith Murphy Foundation
Opinion
We have audited the financial statements of Edith Murphy Foundation (the ‘charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of 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:
-
give a true and fair view of the state of the charity’s affairs as at 31 March 2021, and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
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 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 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 trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ 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.
In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 4
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
INDEPENDENT AUDITOR’S REPORT
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 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
-
• sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities, the trustees are responsible for the preparation of financial statements which 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 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 trustees 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 regulations made under section 154 of that Act.
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:
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Enquiry of management, those charged with governance around actual and potential litigation and claims;
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Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
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Reviewing minutes of meetings of those charged with governance;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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.
Page 5
EDITH MURPHY FOUNDATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 INDEPENDENT AUDITOR'S REPORT Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities IAc¢ounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charf(y's trustees those matlers we are required to slate lo 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 trustees as a body, lor our audit work, for this report, or lor the opinions we have formed. Cawley Priory South Pallant Chichester West Sussex P019 1SY Blue Spire Limited, Sialutory Audr(or Date 270&kr 2021 Blue Spffre Limited is 81igibl$ to act as an auditor in terms of sectson 1212 01 the COmpanS Act 2006. Page 6
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF FINANCIAL ACTIVITIES
| Note INCOME AND ENDOWMENTS FROM: Investments 1 Total EXPENDITURE ON: Raising funds - Investment management fees 2 Charitable activities 3 Total Net income/(expenditure) before investment gains/(losses) Net gains/(losses) on investment assets Net income/(expenditure) Transfers between funds 12, 13 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward 12, 13 Total funds carried forward 12, 13 |
Unrestricted Funds £ 577,502 577,502 165,047 825,732 990,779 (413,277) 4,727,529 4,314,252 - 4,314,252 31,953,297 36,267,549 |
Restricted Funds £ 15,001 15,001 4,294 30,153 34,447 (19,446) 122,267 102,821 - 102,821 827,144 929,965 |
2021 Total Funds £ 592,503 592,503 169,341 855,885 1,025,226 (432,723) 4,849,796 4,417,073 - 4,417,073 32,780,441 37,197,514 |
2020 Total Funds £ 739,942 |
|---|---|---|---|---|
| 739,942 | ||||
| 169,616 1,009,704 |
||||
| 1,179,320 | ||||
| (439,378) (1,999,949) |
||||
| (2,439,327) - |
||||
| (2,439,327) 35,219,768 |
||||
| 32,780,441 |
None of the charity's activities were acquired or discontinued during the above two financial years.
The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.
Page 7
EDITH MURPHY FOUNDATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Not FIXED ASSETS InveMents- managed funds Total fixed •$8ets 36.475.159 30,041.580 36.475,159 30,041,580 CURRENT ASSETS Debtor5 Cuffentasset investment Cash al hand In bank Tot81 ¢urren¢o$80ts 12,369 500,000 2,496.122 3,008.491 10 792,8( 792.802 URRENT LIA8ILITIE$ Creditors. amounts tslling duewithin e year Net current assetsllliabllthes} 1f 70.447 269,630 7ri,355 2,738.861 Total osset$1oss current liabilitigs 37.197,514 32,780,441 redilors amounts falling due aftermorethan one year Total assetsllliabiliti081 37,197,514 32,780,441 THE FUNDS OF ThE CHARITY Restricted funds Umrg$th¢i•d funds Total Charity funds 12,13 12, 13 9,565 36.267,$49 37,197,514 827,144 31,953,297 32,780,441 The notes on pages 12 to 18 form pllrtof thefinano¥al stat&n8Trt8. The finanual stalemenlson page5 7 to 18 approv& and aLthorised for Issue by the twstees aeb .<kn3W (Ytsl... and g4gned on their thf by". OL Tam$ Tre C P B4&keEley Page 8
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF CASH FLOWS
| Note Net cash flow from operating activities (see below) Cash flow from investing activities Investment income Movement on current asset investments Cash inflows from foreign exchange Proceeds from sale of investments Purchase of investments Net cash flow from investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents brought forward Cash and cash equivalents carried forward Cash and cash equivalents consist of: Cash at bank and in hand Cash and cash equivalents carried forward Reconciliation of net income to net cash flow from operating activities Net income for the year Adjusted for: Investment income (Gain)/Loss on investments Decrease/(increase) in debtors Increase/(decrease) in creditors Analysis of changes in net debt Total net debt brought forward Cash flows Total net debt carried forward |
£ £ (1,212,040) 592,503 500,000 (829) 25,454,440 (27,037,394) (491,280) (1,703,320) 2,496,122 792,802 792,802 792,802 £ £ 4,417,073 (592,503) (4,849,796) 12,369 (199,183) (5,629,113) (1,212,040) 2021 Cash and cash equivalents £ 2,496,122 (1,703,320) 792,802 2021 2021 |
£ £ (1,177,380) 739,942 456 3,207 24,184,261 (22,878,272) 2,049,594 872,214 1,623,908 2,496,122 2,496,122 2,496,122 £ £ (2,439,327) (739,942) 1,999,949 (3,953) 5,893 1,261,947 (1,177,380) 2020 Cash and cash equivalents £ 1,623,908 872,214 2,496,122 2020 2020 |
£ £ (1,177,380) 739,942 456 3,207 24,184,261 (22,878,272) 2,049,594 872,214 1,623,908 2,496,122 2,496,122 2,496,122 £ £ (2,439,327) (739,942) 1,999,949 (3,953) 5,893 1,261,947 (1,177,380) 2020 Cash and cash equivalents £ 1,623,908 872,214 2,496,122 2020 2020 |
|---|---|---|---|
| (1,177,380) | |||
| 2020 Cash and cash equivalents £ 1,623,908 872,214 |
|||
| 2,496,122 |
Page 9
EDITH MURPHY FOUNDATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
ACCOUNTING POLICIES
General information, scope and basis of the financial statements
The Edith Murphy Foundation is an unincorporated association constituted under a trust deed. The address of the principal office is given in the reference and administrative details section and the nature of the charity’s operations and principal activities are given in the trustees' report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared 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 issued 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 Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
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.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
● Raising funds; these include investment management fees charged by the charity's investment managers
● Charitable activities; these include grants to third parties and the costs of administering the charity inclusive of governance costs
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
Support and governance costs are those that assist the work of the charity but do not directly represent charitable activities. They are incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in the governance of the charity and primarily associated with the constitution and statutory requirements.
VAT
The charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA.
Taxation
The charity is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity's activities.
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.
Page 10
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
EDITH MURPHY FOUNDATION
ACCOUNTING POLICIES
Foreign currency
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.
Gains and losses on foreign currency exchange are recognised in the Statement of Financial Activities.
Debtors receivable and creditors 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.
Current asset investments
Current asset investment are cash deposits, held for investment purposes, with a maturity date of less than one year. They are basic financial instruments and are recorded at cost with income arising on maturity of the deposit.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Financial instruments
The charity's financial instruments qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction and subsequently measured at their settlement value.
Fund accounting
Unrestricted income funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
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 note 18 of these financial statements.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
The trustees have considered the impact of Coronavirus (COVID-19) on the charity's operations and in respect of going concern and believe no material uncertainty arises with more information provided in note 15 of these financial statements.
Page 11
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
EDITH MURPHY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
1. Investment income
| Unrestricted Funds £ Income from investments 576,604 Interest on cash deposits and balances 898 577,502 2. Raising funds - investment management charges Unrestricted Funds £ Fees paid to investment managers 165,047 165,047 3. Charitable activities Unrestricted Funds £ Grants (see note 6) 766,446 Grants written back (30,000) Bank charges - Governance costs (see note 4) 89,286 825,732 4. Governance Costs Unrestricted Funds £ Legal and professional fees - Administrative expenses 84,431 Trustee expenses - Sundry expenses 55 Independent auditor's remuneration 4,800 89,286 |
Restricted Funds £ 14,985 16 15,001 Restricted Funds £ 4,294 4,294 Restricted Funds £ 28,000 - - 2,153 30,153 Restricted Funds £ - 2,153 - - - 2,153 |
2021 Total Funds £ 591,589 914 592,503 2021 Total Funds £ 169,341 169,341 2021 Total Funds £ 794,446 (30,000) - 91,439 855,885 2021 Total Funds £ - 86,584 - 55 4,800 91,439 |
Unrestricted Funds £ 709,418 10,965 720,383 Unrestricted Funds £ 165,330 165,330 Unrestricted Funds £ 893,186 - 60 97,265 990,511 Unrestricted Funds £ 100 82,764 9,546 55 4,800 97,265 |
Restricted Funds £ 19,380 179 19,559 Restricted Funds £ 4,286 4,286 Restricted Funds £ 17,094 - - 2,099 19,193 Restricted Funds £ - 2,099 - - - 2,099 |
2020 Total Funds £ 728,798 11,144 |
|---|---|---|---|---|---|
| 739,942 | |||||
| 2020 Total Funds £ 169,616 |
|||||
| 169,616 | |||||
| 2020 Total Funds £ 910,280 - 60 99,364 |
|||||
| 1,009,704 | |||||
| 2020 Total Funds £ 100 84,863 9,546 55 4,800 |
|||||
| 99,364 |
5. Independent auditor's remuneration
| Auditor's remuneration - Audit | Unrestricted Funds £ 4,800 4,800 |
Restricted Funds £ - - |
2021 Total Funds £ 4,800 4,800 |
Unrestricted Funds £ 4,800 4,800 |
Restricted Funds £ - - |
2020 Total Funds £ 4,800 |
|---|---|---|---|---|---|---|
| 4,800 |
Page 12
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS
| 6. Grants to institutions Unrestricted Funds £ Animals Galapagos Conservation Trust 10,000 PDSA - Other grants under £10,000. Unrestricted 8 (2019: 8) 24,663 34,663 Children Alice's Arc - CLIC Sargent Cancer Care for Children - Healing Little Hearts 20,000 The Duke of Edinburgh Award 10,000 Tommy's - Warning Zone Limited - Whizz-Kidz 10,000 Other grants under £10,000. Unrestricted 18 (2019: 26) 71,978 111,978 Disabled Natural History Museum 15,000 Stroke Association 10,000 Other grants under £10,000. Unrestricted 7 (2019: 13) 26,500 51,500 Education Build It International - De Montfort University 15,000 Leicestershire Cares 50,000 Other grants under £10,000. Unrestricted 8 (2019: 6) 16,330 81,330 Heritage Leicester Cathedral 25,000 Holy Cross Priory, Leicester 25,000 The British Museum 12,000 The Little Theatre (Leicester Drama Socie - Other grants under £10,000. Unrestricted 7 (2019: 5), Restricted 0 (2019: 1) 30,000 92,000 Research Age UK 30,000 Alzheimer's Society, Leicester Area - Antibiotic Research UK - British Heart Foundation - Cancer Research UK - Diabetes UK - Harrison's Fund - Hope Against Cancer 25,000 Institute of Cancer Research 15,000 St Marks Foundation 30,000 Target Ovarian Cancer - Other grants under £10,000. Unrestricted 1 (2019: 4) 5,000 105,000 Carried down 476,471 |
Restricted Funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - |
2021 Total Funds £ 10,000 - 24,663 34,663 - - 20,000 10,000 - - 10,000 71,978 111,978 15,000 10,000 26,500 51,500 - 15,000 50,000 16,330 81,330 25,000 25,000 12,000 - 30,000 92,000 30,000 - - - - - - 25,000 15,000 30,000 - 5,000 105,000 476,471 |
Unrestricted Funds £ - 10,000 28,176 38,176 10,000 15,000 20,000 - 12,269 10,000 - 88,319 155,588 - - 45,750 45,750 40,000 - 50,000 20,000 110,000 25,000 - 12,000 10,000 21,000 68,000 30,000 25,000 10,000 10,000 25,000 10,000 10,000 - 14,940 - 20,000 14,500 169,440 586,954 |
Restricted Funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - 1,540 1,540 - - - - - - - - - - - - - 1,540 |
2020 Total Funds £ - 10,000 28,176 |
|---|---|---|---|---|---|
| 38,176 | |||||
| 10,000 15,000 20,000 - 12,269 10,000 - 88,319 |
|||||
| 155,588 | |||||
| - - 45,750 |
|||||
| 45,750 | |||||
| 40,000 - 50,000 20,000 |
|||||
| 110,000 | |||||
| 25,000 - 12,000 10,000 22,540 |
|||||
| 69,540 | |||||
| 30,000 25,000 10,000 10,000 25,000 10,000 10,000 - 14,940 - 20,000 14,500 |
|||||
| 169,440 | |||||
| 588,494 |
Page 13
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS
6. Grants to institutions (continued)
| Unrestricted Funds £ Brought down 476,471 Welfare Breast Cancer Now Build It International 20,000 CLIC Sargent Cancer Care for Children 10,000 Combat Stress 10,000 Flagship Bulwark - Lessons for Life LOROS 15,000 Motor Neurone Disease Association 15,000 Northampton Saints Foundation SNAPS Yorkshire The Duke of Edinburgh Award, East Midlands Whizz-Kidz Other grants under £10,000. Unrestricted 51 (2019: 49), Restricted 7 (2019: 6) 219,975 289,975 766,446 |
Restricted Funds £ - - - - - 10,000 - - - - - - - 18,000 28,000 28,000 |
2021 Total Funds £ 476,471 - 20,000 10,000 10,000 10,000 - 15,000 15,000 - - - - 237,975 317,975 794,446 |
Unrestricted Funds £ 586,954 20,000 - - 10,000 - 10,231 - 15,000 15,000 10,000 25,000 19,300 181,701 306,232 893,186 |
Restricted Funds £ 1,540 - - - - - - - - - - - - 15,554 15,554 17,094 |
2020 Total Funds £ 588,494 20,000 - - 10,000 - 10,231 - 15,000 15,000 10,000 25,000 19,300 197,255 |
|---|---|---|---|---|---|
| 321,786 | |||||
| 910,280 |
Grant commitments
At the year end the charity had unprovided grant commitments totalling £30,000 on the basis the award of future instalments are subject to the recipient providing satisfactory reports on the use of the funds.
7. Related party transactions
Fees payable to Coutts & Co, which was a trustee of the charity throughout the year, are included under raising funds for investment management and governance costs for administrative services and are authorised under section 10 of the trust deed. During the year under review Coutts & Co charged a total of £255,925 (2020: £254,479) consisting of £169,341 (2020: £169,616) for investment management and £86,585 (2020: £84,863) for administrative services. At the balance sheet date £3,647 (2020: £63,511) was accrued in respect of these fees.
The charity has no employees, with all administration being carried out by the trustees. No trustees or any person or entity connected to them, except for the fees noted above, were received remuneration in the year under review.
During the year under review no amounts for travel, subsistence and entertainment were reimbursed to trustees with no amounts outstanding at the balance sheet date. In the comparative year £9,546 was reimbursed with £309 outstanding at 31 March 2020.
Page 14
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS
| 8. Fixed asset investments - managed funds Unrestricted Funds £ Market value brought forward 29,279,501 Additions at cost 26,355,481 Disposals at carrying value (21,976,013) Gain/(Loss) on revaluation 1,892,058 Market value carried forward 35,551,027 Analysed as follows: Bonds 15,360,707 Equities 13,620,456 Property 298,338 Hedge funds - Structured products - 29,279,501 Net gains/(losses) on investments Gain/(Loss) on revaluation 1,892,058 Gain/(Loss) on investment sales 2,836,216 Gain/(Loss) on foreign currency accounts (745) 4,727,529 9. Debtors Unrestricted Funds £ Accrued investment income - - 10. Current asset investments Unrestricted Funds £ Short term cash deposits - - 11. Creditors: amounts falling due within one year Unrestricted Funds £ Grant creditors 62,000 Independent auditor's fees 4,800 Trustee expenses - Investment management 2,353 Administrative services 1,202 70,355 |
Restricted Funds £ 762,079 681,913 (570,135) 50,275 924,132 402,428 351,876 7,775 - - 762,079 50,275 72,076 (84) 122,267 Restricted Funds £ - - Restricted Funds £ - - Restricted Funds £ - - - 61 31 92 |
2021 Total Funds £ 30,041,580 27,037,394 (22,546,148) 1,942,333 36,475,159 15,763,135 13,972,332 306,113 - - 30,041,580 1,942,333 2,908,292 (829) 4,849,796 2021 Total Funds £ - - 2021 Total Funds £ - - 2021 Total Funds £ 62,000 4,800 - 2,414 1,233 70,447 |
Unrestricted Funds £ 32,503,980 22,304,596 (23,118,235) (2,410,840) 29,279,501 15,360,707 13,620,456 298,338 - - 29,279,501 (2,410,840) 457,567 3,117 (1,950,156) Unrestricted Funds £ 12,052 12,052 Unrestricted Funds £ 500,000 500,000 Unrestricted Funds £ 201,010 4,800 309 40,899 21,013 268,031 |
Restricted Funds £ 846,745 573,676 (594,176) (64,166) 762,079 402,428 351,876 7,775 - - 762,079 (64,166) 14,283 90 (49,793) Restricted Funds £ 317 317 Restricted Funds £ - - Restricted Funds £ - - - 1,066 533 1,599 |
2020 Total Funds £ 33,350,725 22,878,272 (23,712,411) (2,475,006) |
|---|---|---|---|---|---|
| 30,041,580 | |||||
| 15,763,135 13,972,332 306,113 - - |
|||||
| 30,041,580 | |||||
| (2,475,006) 471,850 3,207 |
|||||
| (1,999,949) | |||||
| 2020 Total Funds £ 12,369 |
|||||
| 12,369 | |||||
| 2020 Total Funds £ 500,000 |
|||||
| 500,000 | |||||
| 2020 Total Funds £ 201,010 4,800 309 41,965 21,546 |
|||||
| 269,630 |
Page 15
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
EDITH MURPHY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
12. Analysis of net assets between funds
| Fixed assets Current assets Current liabilities |
Unrestricted Funds £ 35,551,027 786,876 (70,355) 36,267,548 |
Restricted Funds £ 924,132 5,926 (92) 929,966 |
2021 Total Funds £ 36,475,159 792,802 (70,447) 37,197,514 |
Unrestricted Funds £ 29,279,501 2,941,822 (268,031) 31,953,292 |
Restricted Funds £ 762,079 66,669 (1,599) 827,149 |
2020 Total Funds £ 30,041,580 3,008,491 (269,630) |
|---|---|---|---|---|---|---|
| 32,780,441 |
13. Analysis of net movements in funds
| Restricted funds Holly Hayes Capital fund Holly Hayes Income fund Unrestricted funds General fund Restricted funds Holly Hayes Capital fund Holly Hayes Income fund Unrestricted funds General fund |
Year ended 31 March 2021 | Year ended 31 March 2021 | ||||
|---|---|---|---|---|---|---|
| Total funds brought forward £ 807,505 19,639 827,144 31,953,297 31,953,297 32,780,441 |
Income £ - 15,001 15,001 577,502 577,502 592,503 |
Net gains/(losses) Expenditure on investments £ £ (6,447) 122,267 (28,000) - (34,447) 122,267 (990,779) 4,727,529 (990,779) 4,727,529 (1,025,226) 4,849,796 Year ended 31 March 2020 |
Transfers between funds £ 4,391 (4,391) - - - - |
Total funds carried forward £ 927,716 2,249 |
||
| 929,965 | ||||||
| 36,267,549 | ||||||
| 36,267,549 | ||||||
| 37,197,514 | ||||||
| Total funds brought forward £ 863,683 17,174 880,857 34,338,911 34,338,911 35,219,768 |
Income £ - 19,559 19,559 720,383 720,383 739,942 |
Expenditure £ (6,385) (17,094) (23,479) (1,155,841) (1,155,841) (1,179,320) |
Net gains/(losses) on investments £ (49,793) (49,793) (1,950,156) (1,950,156) (1,999,949) |
Transfers between funds £ - - - - - - |
Total funds carried forward £ 807,505 19,639 |
|
| 827,144 | ||||||
| 31,953,297 | ||||||
| 31,953,297 | ||||||
| 32,780,441 |
Description of funds
Holly Hayes Capital fund
This represents the sales proceeds of the investment property which have been invested in listed securities to generate income.
Holly Hayes Income fund This represents income arising on the above investments which is to be applied for the public benefit in assisting in the provision of facilities for convalescence, recovery and recreation for the benefit of persons in need of such facilities by reason of their age, youth, infirmity, disablement, poverty or social and economic circumstances.
Page 16
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
EDITH MURPHY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
14. Financial instruments
The carrying amounts of the charity's financial instruments are as follows:
| 14. Financial instruments The carrying amounts of the charity's financial instruments are as follows: |
||
|---|---|---|
| Financial assets Measured at fair value through net income/(expenditure): Fixed asset investments |
2021 Total Funds £ 36,475,159 36,475,159 |
2020 Total Funds £ 30,041,580 |
| 30,041,580 |
Fair value on fixed asset investments is determined on the basis of mid-market prices from (i) the appropriate Stock Exchange, (ii) the bid price i.e. the current price a buyer is willing to pay, from the relevant fund manager, or (iii) the last traded price where applicable.
The income, expense, net gains and net losses attributable to the charity's financial instruments are summarised as follows:
| Income and expense Financial assets measured at fair value through net income/(expenditure) Investment income Investment management fees Net gains and losses (including changes In fair value) Financial assets measured at fair value through net income/(expenditure) Net gains/(losses) on investments |
591,589 (169,341) 422,248 4,849,796 4,849,796 |
728,798 (169,616) |
|---|---|---|
| 559,182 | ||
| (1,999,949) | ||
| (1,999,949) |
Fixed asset investments are held at fair value with valuations obtained by reference to market prices from the appropriate stock exchange, bid prices and last traded prices where applicable.
15. Subsequent events - COVID-19
During the year under review the UK Government introduced a range of measures to address the Coronavirus (COVID-19) pandemic, that coupled with the pandemic itself, had a significant detrimental impact on the social and financial economies of the world and affected the operations of businesses and investment markets. Over the year to 31 March 2021 the investment markets improved leading to a gain in the year.
The trustees have considered their expectations for the charity over the next twelve months from the date of approval of the financial statements and the charity's ability to meet its liabilities and continue its planned grant making activity. The trustees believe, whilst there has been a significant impact on investment values and the expectation of income to follow, the investment portfolio is adequate to sustain these losses for them to continue with their plans for the foreseeable future and on this basis continue to adopt the going concern basis of accounting in preparing the financial statements.
Page 17
EDITH MURPHY FOUNDATION
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS
16. Comparative Statement of Financial Activities
| Note INCOME AND ENDOWMENTS FROM: Investments 1 Total EXPENDITURE ON: Raising funds - Investment management fees 2 Charitable activities 3 Total Net income/(expenditure) before investment gains/(losses) Net gains/(losses) on investment assets Net income/(expenditure) Transfers between funds 12, 13 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward 12, 13 Total funds carried forward 12, 13 |
Unrestricted Funds £ 720,383 720,383 165,330 990,511 1,155,841 (435,458) (1,950,156) (2,385,614) - (2,385,614) 34,338,911 31,953,297 |
Restricted Funds £ 19,559 19,559 4,286 19,193 23,479 (3,920) (49,793) (53,713) - (53,713) 880,857 827,144 |
2020 Total Funds £ 739,942 |
|---|---|---|---|
| 739,942 | |||
| 169,616 1,009,704 |
|||
| 1,179,320 | |||
| (439,378) (1,999,949) |
|||
| (2,439,327) - |
|||
| (2,439,327) 35,219,768 |
|||
| 32,780,441 |
Page 18