## 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):
- (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
- (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;
- 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:
- 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
- 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:
- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
- Reviewing minutes of meetings of those charged with governance;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- 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 .**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**