OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

THE DUCHY OF LANCASTER BENEVOLENT FUND Registered Charity Number 1026752

REPORT OF THE TRUSTEES

AND ACCOUNTS FOR THE YEAR

TO 31st MARCH 2024

THE DUCHY OF LANCASTER BENEVOLENT FUND

FOR THE YEAR ENDED 31st MARCH 2024

CONTENTS

THE DUCHY OF LANCASTER BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31st MARCH 2024

  1. Objects of the Trust The objects of the Trust are to support charitable causes in: e the County Palatine of Lancaster e the administrative counties of Lancashire, Greater Manchester and Merseyside e elsewhere in the country where the Duchy of Lancaster has historical links (such as landed interests and church livings).

Applications for grants should be addressed to the Secretary. Donations from the Duke of Lancaster have been given to the Trust with the request that they are, for the time being, invested to provide an income to support the objects of the Trust. The Trustees have accordingly placed the donations into a separate investment fund, the Expendable Endowment Fund. In the year a one off additional donation of £900,000 was made to the Benevolent Fund from the Duchy of Lancaster to be used to support the Coronation Food Project in Merseyside, which has been placed in a restricted fund. In 2023 a one off additional donation of £420,000 was made to support food banks and/or provide food for those in need. The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives and in planning the future activities. In particular the Trustees consider how planned donations will contribute to the aims and objectives they have set. The Trustees consider that the current policy for making donations delivers public benefit. Details of the objectives which form the basis of this policy are given above.

  1. Grant making policy The Trust has established its grant making policy to achieve its objects for the public benefit. The Trust invites applications for grants that will meet the stated objectives of the Trust and these will be assessed on a merit basis as to value for money and impact in achieving the aims of the Trust.

  2. Achievements and performance The Trustees have reviewed and are content that the objectives of the charity as highlighted have been achieved during the course of the year. The Trustees are content that the income generated over the course of the year has been utilised in accordance with the objectives.

During the year the Trust has made or made future commitments to 259 grants totalling £1,497,149 (2023 : 461 £958,535) as set out on page 14 to 17 of the financial statements. The Trust continues to fulfil its objects through its grant-making policy and it is the Trustees’ intention to continue doing so.

: 461 grants totalling

The aim ofthe charity is to distribute at least £500,000 in grants funded from the investment portfolio. If the portfolio is to generate income of circa £500,000 this implies a minimum initial yield target for the investment portfolio of 2.65%, whilst maintaining the capital value of the fund in real terms, after inflation and distributions. This target is below the minimum long term average total return target for the investment portfolio of CPI inflation +3% p.a. The portfolio generated £488,741 of investment income in the year and a transfer of £220,000 from the expendable endowment fund was made in order to fund expenditure on charitable activities of £700,257. This led to an increase in the Unrestricted General Fund of £13,081 and carried forward balance of £16,068. A grant of £100,000 is normally received from the Duchy of Lancaster every year towards the Expendable Endowment Fund. In 2024 a further £900,000 was received for the support of the Coronation Food Project in Merseyside which was placed in a restricted fund. The £900,000 was granted in the year along with the remaining £2,500 of 2023 food bank grants leaving a restricted fund balance of Enil.

Over the year, the Trust's investment assets increased in value by £1,047,017 (5.9%), being the net gains on investments of £1,119,362 and investment management fees of £72,345 per note 8. During the year the investment income generated was £493,338 (2023 : £418,089).

  1. Risk management The principal risks faced by the Trust lie in the performance of investments and operational risks from ineffective grant making and the capacity of the Trust to make effective grants. The Trustees consider variability of investment returns on the permanent endowment to constitute the charity’s major financial risk. This is mitigated by retaining expert investment managers and regularly reviewing the risk profile of the portfolio. The operational risk from ineffective grant making is mitigated by the fact that the recipients of grants are known to and well understood by the Trustees who are able to assess the effectiveness that the grant making has. Smaller grants are assessed on merit on an individual basis and will only be granted if the Trustees understand how these funds will benefit the recipient.

Page 1

THE DUCHY OF LANCASTER BENEVOLENT FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31st MARCH 2024

  1. Reserves The Trustees' policy is to distribute investment income received and to maintain a reserve in the Unrestricted General Fund.

The Expendable Endowment fund had a balance of £18,977,488 at the year end. Although not forming part of the main reserves, the Trustees do have the power to transfer funds to the Unrestricted Fund to meet shortfalls in funding when required. During the year a transfer of £220,000 was made from the Expendable Endowment Fund to the General Fund leaving it with a year end balance of £16,068 free reserves. A restricted fund was created in 2023 year for the support of foodbanks and/or provide food for those in need after receipt of a donation of £420,000 from the Duchy of Lancaster for this purpose. The Lieutenants distributed £417,500 of the £420,000 in the year to 31 March 2023 leaving a surplus balance of £2,500 which was distributed in 2024 along with another restricted donation of £900,000 received from the Duchy of Lancaster for the Coronation Food Project in Merseyside.

  1. Plans for future periods The plan for future periods is to satisfy the charity's objectives and to maintain an investment portfolio in accordance with the total! return objective as agreed by the Trustees as set out in the Statement of Investment Principles.

  2. Structure, governance, management and administrative details Governing Instrument The Duchy of Lancaster Benevolent Fund was constituted on 29th September 1993 under a Trust Deed. The registered charity number is 1026752.

Trustees and principal officers Trustees are appointed by the Chancellor of the Duchy of Lancaster, these were as follows: Trustees: Appointed Retired The Vice Chancellor of the County Palatine (Chairman) Hon. Mr. Justice Timothy Fancourt The Attorney General of the Duchy of Lancaster Sonia Tolaney The Receiver General of the Duchy of Lancaster Sir Michael Stevens KCVO The Lord Lieutenant of Lancashire Lord Shuttleworth KG, KCVO 2 August 2023 Amanda Parker JP DL 2 August 2023 The Lord Lieutenant of Greater Manchester Diane Hawkins JP DL The Lord Lieutenant of Merseyside Mr Mark Blundell Secretary: Mr Hugh Bruce-Watt

The Trustees meet twice a year and make all major (£5,000 and over) grant making and investment decisions. Decisions on making other grants are delegated to 4 local panels based in Lancashire, Greater Manchester, Merseyside and London, which each meet around four times a year. Trustees are provided with adequate support and training where training needs are identified to allow them to effectively conduct their role.

The day to day administration of the Trust is delegated to the staff of the Duchy of Lancaster.

Administration Administrative support for the charity is provided by The Duchy of Lancaster from its offices at 1 Lancaster Place, Strand, London WC2E 7ED.

Advisors Bankers: Coutts & Co. 440 Strand London WC2R 0QS Solicitors: Farrer & Co. 66 Lincoln's Inn Fields London WC2A 3LH

Page 2

THE DUCHY OF LANCASTER BENEVOLENT FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31st MARCH 2024

  1. Structure, governance, management and administrative details (continued)

----- Start of picture text -----
Auditors: Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Investment manager: Newton Investment Management Ltd
160 Queen Victoria Street
London
EC4V 4LA
Investment custodian: The Bank of New York
1 Canada Square
London
E14 5AL
----- End of picture text -----

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees have undertaken a review of major risks facing the charity and taken steps to mitigate them.

Approved by the Trustees on v No Y. 20 pra signed on their behalf by / j "4 : ) Three ia The Hon Mr Justice Fancourt Chairman of the Trustees

Page 3

THE DUCHY OF LANCASTER BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES

Opinion

We have audited the financial statements of the Duchy of Lancaster Benevolent Fund for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement 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:

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 Auditors’ 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 annual report, other than the financial statements and our auditor's report thereon. Our opinion onstatedthe infinancialour report,statementswe do notdoes expressnot coverany theformotherof assuranceinformationconclusionand, exceptthereon.to the extent, otherwise explicitly

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

Page 4

THE DUCHY OF LANCASTER BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES continued

Matters on which we are required to report by exception (continued)

e the financial statements are not in agreement with the accounting records and returns; or e we have not received all the information and explanations we require for our audit.

Responsibilities of trustees As explained more fully in the Trustees’ Responsibilities Statement set out on page 3, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such interna! 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 auditors under the Charities Act 2011 and report in accordance with regulations made under 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified :

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Page 5

19 November 2024

THE DUCHY OF LANCASTER BENEVOLENT FUND

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2024

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Expendable|Total|Total| |General|Restricted|Endowment|2024|2023| |Fund|Fund|Fund| |Notes|£|£|£|£|£| |Income|and|endowments|from:| |Endowments|/|Donations|2|-|900,000|100,000|1,000,000|520,000| |Investments|3|493,338|-|-|493,338|418,089| |Total|493,338|900,000|100,000|1,493,338|938,089| |Expenditure|on:| |Raising|Funds|8|72,345|-|-|72,345|70,672| |Charitable|activities|4|627,912|902,500|-|1,530,412|988, 144| |Total|700,257|902,500|-|1,602,757|1,058,|816| |Net gains/(losses)|on|investmenis|8|-|-|1,119,362|1,119,362|(300,690)| |Net (expenditure)/income|(206,919)|(2,500)|1,219,362|1,009,943|(421,417)| |Transfer|between|funds|220,000|-|(220,000)|-|-| |Net movement|in funds|13,081|(2,500)|999,362|1,009,943|(421,417)| |Reconciliation|of|funds:| |Total|funds|brought forward|2,987|2,500|17,978,126|17,983,613|18,405,030| |Total|funds|carried forward|16,068|-|18,977,488|18,993,556|17,983,613| |STATEMENT OF|FINANCIAL|ACTIVITIES| |FOR|THE YEAR|ENDED|31st MARCH|2023| |Unrestricted|Expendable| |General|Restricted|Endowment|Total| |Fund|Fund|Fund|2023| |Notes|£|£|£|£| |Income|and|endowments|from:| |Endowments|2|-|420,000|100,000|520,000| |Investments|3|418,089|-|-|418,089| |Total|418,089|420,000|100,000|938,089| |Expenditure|on:| |Raising|Funds|8|70,672|-|-|70,672| |Charitable|activities|4|570,644|417,500|-|988,144| |Total|641,316|417,500|-|1,058,816| |Net|(losses)/gains|on|investments|8|-|-|(300,690)|(300,690)| |Net (expenditure)/income|(223,227)|2,500|(200,690)|(421,417)| |Transfer|between|funds|200,000|-|(200,000)|-| |Net movement|in|funds|(23,227)|2,500|(400,690)|(421,417)| |Reconciliation|of|funds:| |Tota! funds|brought forward|26,214|-|18,378,816|18,405,030| |Total funds|carried forward|2,987|2,500|17,978,126|17,983,613|

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

The notes on pages 10 to 13 form part of these accounts.

Page 7

THE DUCHY OF LANCASTER BENEVOLENT FUND

BALANCE SHEET AT 31st MARCH 2024

2024 2023
Notes £ £
Fixed Assets
Investments 7 18,870,674 17,823,657
Current Assets
Debtors
Cash and deposits		 9 6,459
206,383		 6,730
202,766
212,842 209,496
Creditors: amounts falling due within one year
Grants and accrued expenses 11 (57.960) (25,540)
NetCurrentAssets 154,882 183,956
Creditors: amounts falling due afterone year
Grants
Total Non-Current Liabilities		 11 (32,000)
(32,000)		 (24,000)
(24,000)
NetAssets 18,993,556 17,983,613
Capital Fund
Expendable Endowment		 12 18,977,488 17,978,126
Income Fund
Unrestricted General Fund 12 16,068 2,987
Restricted Fund - 2,500
18,993,556 17,983,613

Approved by the Trustees on §~~ Nwvoy 2Yfana signed on their behalf by

The Hon Mr Justice Fancourt Chairman of the Trustees

The notes on pages 10 to 13 form part of these accounts.

Page 8

THE DUCHY OF LANCASTER BENEVOLENT FUND

CASH FLOW STATEMENT FOR THE YEAR TO 31st MARCH 2024

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Total|Total| |2024|2023| |Notes|£|£| |Cash|outflow from|operating|activities|14|(489,721)|(485,248)| |Cash|flows|from|investing|activities| |Dividends|and|interest|488,741|417,300| |Interest|4,597|789| |Sale|of|investments|-|-| |Purchase|of|investments|-|-| |Net cash|inflow from|investing|activities|493,338|418,089| |Change|in cash and|cash|equivalents|in the year|3,617|(67, 159)| |Cash and|cash|equivalents|at start of year|202,766|269,925| |Cash and|cash|equivalents|at end|of year|206,383|202,766| |Cash|comprises:| |Cash|at bank|206,383|202,766|

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

Page 9

THE DUCHY OF LANCASTER BENEVOLENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2024

  1. Accounting Policies

(a) Basis of Accounting The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. The most significant key assumptions that affect items in the accounts are the carrying value of assets held by the Trust and the level of investment return due to the performance of investment markets (see the investment policy and performance and risk management sections of the trustees’ annual report for more information).

----- Start of picture text -----
2. Endowments/ Donations 2024 2023
£ £
The Duchy of Lancaster 100,000 100,000
The Duchy of Lancaster Coronation Food Project/Food Bank funding 900,000 420,000
1,000,000 520,000
----- End of picture text -----

Page 10

THE DUCHY OF LANCASTER BENEVOLENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2024

----- Start of picture text -----
||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |3.|Investment|income|2024|2023| |£|£| |Quoted|securities|:| |Interest|on|fixed|interest|stocks and|dividends|on|unit trusts|488,741|417,300| |488,741|417,300| |Bank|interest|4,597|789| |493,338|418,089| |4.|Charitable|activities|Unrestricted|General|Funds|Restricted|Funds|2024|2023| |£|£|£|£|£| |Support|and| |Governance| |Grants|costs|Grants|Total|Total| |Youth|and|education|217,360|12,158|-|229,518|144,602| |Older &|Disabled|Persons|110,867|6,201|-|117,068|75,034| |Community|help|222,579|12,451|902,500|1,137,530|704,220| |Religious causes|29,673|1,660|-|31,333|46,357| |Miscellaneous|14,170|793|-|14,963|17,931| |594,649|33,263|902,500|1,530,412|988, 144| |An|analysis|of grants|made|is shown|on|pages|14 to|17.|Support costs|are|pro-rated|across the normal|activities.|

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

The Trustees have expressed an intention to make the following future payments, subject to the receipt of sufficient income being received from investments:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |5.|Allocation|of Support and|Governance|costs|2024|2023| |£|£|£|£| |Governance| |costs|Support|costs|Total| |Auditor's|fees|- for|audit|6,960|-|6,960|6,540| |Expenses of Trustees|1,116|-|1,116|2,034| |Other administration|costs|25,000|187|25,187|21,035| |33,076|187|33,263|29,609|

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

Other administration costs principally consist of contributions towards office costs of the three Lords Lieutenancy offices and the Duchy of Lancaster Office together with costs of Trustees’ meetings.

The administration of the Trust is managed by the Trustees and the office of the Duchy of Lancaster.

6. Trustee and Staff Costs

None of[the][ Trustees][received][any][remuneration][during][the][year][(2023][:][£nil).][Travel][and][meeting][expenses][incurred][on][behalf][ of][ 6] Trustees amounted to £1,116 (2023 : £2,034 6 Trustees). The charity has no directly employed staff.

Page 11

THE DUCHY OF LANCASTER BENEVOLENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2024

7. Investments 2024 2023
£ £
Quoted securities
Property Funds 1,339,102 1,429,265
Other Funds 17,531,572 16,394,392
18,870,674 17,823,657

The historic cost of investments at 31st March 2024 was £13,614,106 (2023 : £13,678,400).

The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the Trustees’ Annual Report.

  1. Reconciliation of movement of investments
8. Reconciliation of movement of investments 2024 2023
£ £
Quoted investments:
Marketvalue at 1st April 2023
Management fee		 17,823,657
(72,345)		 18,195,019
(70,672)
Gains/ (loss) in value ofinvestments
Market value at 31st March 2024		 1,119,362
18,870,674		 (300,690)
17,823,657
Management fees have been disclosed this yearand the prioryear is shown on a comparable basis.
9. Debtors 2024 2023
£ £
Otherdebtors - 2,500
Deposit interest 2,318 517
Dividend income 4,141 3,713
6,459 6,730

10. Related Parties

Certain of the Duchy of Lancaster Benevolent Fund's expenses are incurred initially by the Duchy of Lancaster and then recharged to the Fund. The amount of such expenses relating to the year ended 31st March 2024 was £7,058 (2023: £771).

The Duchy of Lancaster Benevolent Fund paid the following grants to charities with connections to the following trustees:

The Duchy of Lancaster made donations of £1,000,000 in the year ended 31 March 2024 (2023: £520,000).

Page 12

THE DUCHY OF LANCASTER BENEVOLENT FUND

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2024

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |11.|Grants|and|accrued expenses|2024|2023| |£|£| |Audit|6,960|6,540| |Administration|-|-| |Grants|- amounts|falling|due|within|one|year|51,000|19,000| |57,960|25,540| |Grants|- amounts|falling|after one|year|32,000|24,000| |89,960|49,540| |12.|Net assets|by fund|2024| |General|Restricted|Expendable| |Fund|Fund|endowment| |£|£|£| |Investments|-|-|18,870,674| |Current|assets|106,028|-|106,814| |Current|liabilities|(57,960)|-|-| |Non-current|liabilities|(32,000)|-|-| |Net Assets|16,068|-|18,977,488| |2023| |General|Restricted|Expendable| |Fund|Fund|endowment| |£|£|£| |Investments|-|-|17,823,658| |Current assets|§2,527|2,500|154,468| |Current|liabilities|(25,540)|-|-| |Non-current|liabilities|(24,000)|-|-| |Net Assets|2,987|2,500|17,978,126| |13.|Movement|in|funds| |General|Restricted|Expendable|Total| |Fund|Fund|endowment| |£|£|£|£| |As|at|1|April|2023|2,987|2,500|17,978,126|17,983,613| |Incoming|resources|493,338|900,000|100,000|1,493,338| |Outgoing|resources|(700,257)|(902,500)|-|(1,602,757)| |Investments|Gains/(losses)|-|-|1,119,362|1,119,362| |Transfers|between|funds|220,000|-|(220,000)|-| |As|at|31|March|2024|16,068|-|18,977,488|18,993,556| |44,|Reconciliation|of|net|income/(expenditure)|to|net cash|inflow from|operating|activities| |2024|2023| |£|£| |Net|income/(expenditure)|as|per statement|of financial|activities|1,009,943|(421,417)| |Adjusted|for:| |Net|(gains)/losses|on|investments|(1,119,362)|300,690| |Investment|income|(493,338)|(418,089)| |Investment|Management|fees|72,345|70,672| |(Increase)/decrease|in|receivables|271|7,433| |(Decrease)/increase|in|payables|40,420|(24,537)| |Net cash|outflow from|operating|activities|(489,721)|(485,248)|

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

Page 13

THE DUCHY OF LANCASTER BENEVOLENT FUND

GRANTS MADE IN THE YEAR ENDED 31st MARCH 2024

YOUTH AND EDUCATION £
Blessed John Henry Newman RC College Combined Cadet Force 2,000
Broadfield Friends Association 3,500
Brunswick Youth &Community Centre, Bootle. 3,550
Child Action Northwest 2,000
Coram Shakespeare Schools Foundation - London 4,000
Dot-art Services CIC 3,900
Evolve - Tackling the impact ofsubstance misuse. 3,500
Foundation Years Trust, Wirral. 3,000
Francis House Children's Hospice 2,000
Greater ManchesterArmy Cadet Force 2,000
HarperAdams University 5,000
Inspire YouthZone 5,000
Lancaster Royal Grammar School 5,000
Lancaster University Regional Heritage 9,000
Mersey Counselling andTherapy Centre 3,600
Mishon 3,500
Moulton College 5,000
Mysercough College 5,000
National Museums Liverpool 3,000
Northgate School Northampton - Place2Bee 5,000
Once Upon a smile 2,000
PriorityYouth Project 5,000
Rainbow Youth & Community Trust 5,000
Reaseheath 5,000
Royal Liverpool Philharmonic Society 5,000
SaleWestAmateur Boxing Club 2,000
Split Perspectivz trading as Builder Book 5,000
St Olaves Grammar School 2,000
Stick n Step 2,818
Strawberry Fields Training CIC 5,000
The Beacon Elim Churches 5,000
The Grand at Clitheroe 4,000
The Panathlon Foundation Ltd 3,000
The Prince's Trust 4,284
The Reporters’ Academy 2,734
The SirTom Finney Preston SoccerCentre 4,000
Trust Music 3,000
West Lancashire County Scout (Council Events) 2,000
Total of 31 grants each below £2,000 26,974
Returned grants or increase /(reductions) in future commitments :
Various 45,000
217,360

Page 14

THE DUCHY OF LANCASTER BENEVOLENT FUND

GRANTS MADE IN THE YEAR ENDED 31st MARCH 2024

OLDER & DISABLED PERSONS

£

Life Now 5,000
Lets Fish 2,450
Broughton House
Handicapped Childrens action Group
StockportTalking Newspaper
Team mates		 4,437
2,713
4,000
2,000
Douglas Bader Foundation
RAFT (Residents Association ofFarringdon&Thirlmere)
Sullivans Heroes		 2,750
2,000
4,054
Cherish (Reach and Connect)
League ofWelldoers
WillowWood Hospice
Seashell Trust		 3,100
3,460
5,000
30,000
WheelchairRugby
Willowbrook Hospice
Sam's Diamonds		 5,000
4,000
2,327
Henshaws 3,740
Springhill Hospice
Stockdales ofSale, Altrincham & District		 2,000
2,000
Total of25grantseach below £2,000 20,836
Returned grants or reductions in future commitments :
Various -
110,867
COMMUNITY HELP £
Achieved dreams 2,118
Arriva Morris Dancers, Kirkby.
Beacon Dementia& Wellbeing		 2,500
3,000
Blundellsands Methodist Church 2,000
Bolton Mountain RescueTeam 5,000
Brave Church, Oswaldtwistle
Brookfield Retrofit Project
Church on the Street Ministries		 5,000
5,000
3,300
Coronation Food Project
CreateBolton
Dingle Multi Agency Centre Ltd
EastMeetsWest(WomenTogether in Lancaster)
Emerge3RS
FourSeasonsAllotments		 900,000
2,169
2,800
2,200
2,692
2,000
Freedomfrom Torture 5,000
Goathland CommunityHub
Groundwork
Guide BridgeTheatre
Halle Concerts Societyon behalfofTheCharles Halle Foundation
Hope forJustice
Humans Mer		 4,200
5,000
2,000
2,000
5,000
2,000
Knowle Green Village Hall
Liverpool Lighthouse
Manchester Sikh Foundation (Also known as Feed My City)		 5,000
3,048
2,000
motiv8-lancsCIC 3,560

Page 15

THE DUCHY OF LANCASTER BENEVOLENT FUND

GRANTS MADE IN THE YEAR ENDED 31st MARCH 2024

North WestAirAmbulance 5,000
Opening Doors Project 3,650
Parochial Church Council Over Kellet (Over Kellet Jubilee Bells Project) 3,000
PCC HolyTrinitywith St Laurence Church (also known as Morecambe Parish Chi 5,000
Prevent Breast Cancer 2,000
Renewal! North west 2,145
Revolving Doors Housing Trust 2,000
RiverOaks Charity 4,630
Royal British Legion (Southport Branch) 3,000
Sefton CVS 3,000
Shoreline Foodbank 5,000
StAnns Hospice Major Grant 5,000
St Bartholomew's Church 5,000
St GabrielsCommunity Group 2,000
StJohn Ellesmere Community Centre 3,030
St Margaret's Ingol Parochial Church Council 5,000
St Paul's Parochial Church Council 2,000
StThomas PCC 5,000
Standish Methodist Church 2,000
The Destitution Project 5,000
The FactoryofCreativity 2,000
The Forward Trust, The Brink Café, Liverpool. 5,000
The Forward Trust, The Brink Café, Liverpool. 5,000
The Reader Organisation 4,103
Third Space Bolton 2,000
Tommys 2,000
Tuebrook Community Centre, Liverpool. 5,000
West End Impact 5,000
Total of71 grants each below £2,000 - Unrestricted 53,934
Returned grants or reductions in future commitments :
Various (10,000)
1,125,079
Unrestricted 222,579
Restricted 902,500
RELIGIOUS CAUSES £
Dedham PCC Duchy Living Essex 3,998
Freedom Church 3,200
Liverpool Cathedral 8,180
PCC St Barnabas Morecambe 2,000
St. Helens Street Pastors 3,000
SVP Our Lady of Lourdes, Wirral. 2,000
The Parochial Church Council ofthe Ecclesiastical Parish of St James Clitheroe 3,395
Total of4 grantseach below £2,000 3,900
Returnedgrants orreductions in futurecommitments :
Various -
~~ 29,673

Page 16

THE DUCHY OF LANCASTER BENEVOLENT FUND

GRANTS MADE IN THE YEAR ENDED 31st MARCH 2024

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |MISCELLANEOUS CAUSES|£| |Colne|Citadel|3,000| |Hyndburn|Green|Spaces|Forum|4,500| |Total|of 9|grants|each|below £2,000|6,670| |Returned grants|or reductions|in|future commitments|:| |Various|-| |14,170| |Total|of grants made|in|the|year|1,497,149|

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

Page 17

THE DUCHY OF LANCASTER BENEVOLENT FUND

STATEMENT OF INVESTMENT PRINCIPLES

Background and purpose of portfolio

The Duchy of Lancaster Benevolent Fund supports charitable causes in the County Palatine of Lancaster and elsewhere in the UK, where the Duchy of Lancaster has historical connections.

Investment objectives

The minimum investment objective for the Fund’s investment portfolio is to maintain the capital value of the Fund in real terms after inflation and distributions.

Distribution policy

It is the Trustees’ policy to distribute investment income received in the investment portfolio on an annual! basis. The level of distribution is reviewed regularly in light of changing market conditions to ensure that it is sustainable over the longer term. The current distribution rate has been set at 3.0% p.a., approximately £500,000 in money terms.

Total return target

The level of distributions from the Fund and the need to maintain the real value of capital and income from inflation imply a minimum total return target over the longer term for the investment portfolio of CPI inflation +3% p.a.

Time horizon The time horizon for the investment portfolio is considered to be long term, reflecting the Fund's purpose. This is defined in investment terms as being over ten years.

Liquidity requirement

There is no requirement to hold a specific proportion of assets in cash or other short term asset classes but all investments should be in relatively liquid vehicles.

Ethical considerations

There are no specific constraints on the investment portfolio in terms of ethical, social or environmental (ESG) matters but the managers of the portfolio are expected to take ESG issues into consideration when assessing individual investments and actively engage with company management to improve their ESG

Risk tolerance

A reasonable level of capital volatility within the investment portfolio is acceptable given the Fund’s long term time horizon and total return objectives but to limit capital and other risks in the investment portfolio, the portfolio should be well diversified across asset classes and individual investments.

Investment benchmark

To achieve the required return without taking excessive risk in the investment portfolio, the strategic asset allocation or neutral benchmark for the portfolio has been set with 45% in UK equities, 22.5% in overseas equities, 18% in bonds, 10% in property and 4.5% in cash.

Investment management arrangements

The Trustees will appoint investment managers to manage the assets of the portfolio in accordance with the principles set out in this statement and within the guidelines set down from time to time by the trustees. The Trustees will monitor the performance of the manager against the stated investment benchmark on a quarterly basis but it is anticipated that the manager will be given a period of minimum tenure of between three and five years.

Permitted asset classes, ranges and benchmark indices

The table below shows the strategic asset allocation and benchmark indices against which the managers’ performance will be monitored. The table also shows the broad asset classes in which investment is permitted. Maximum and minimum ranges have been set to limit the overall risk within the portfolio.

Page 18

THE DUCHY OF LANCASTER BENEVOLENT FUND

STATEMENT OF INVESTMENT PRINCIPLES

Permitted asset classes, ranges and benchmark indices (continued)

----- Start of picture text -----
Sterling 7 day SONIA
Bonds —(‘dLsO 10-35 FTSE All Stocks All Gilts Index
OverseasUK equitiesequities |450225 | -- ___|FTSEFTE WorldAll Share ex Index UK Index
Total equities 45-80 Pe
MSCI UK Property Index
Total +i [—100~SS=«d|~SCSSCSCSC~C~C~C~dComposite@] ince
----- End of picture text -----

Currency and hedging

The Trust’s liabilities are all in sterling and therefore the bulk of the portfolio should be held in sterling to avoid unnecessary currency risk. Non sterling exposure should be limited to 40%.

Restricted asset classes There should be no investment in gold bullion and commodities nor in private equity vehicles.

Approval to carry out any restricted activity may be given by one Trustee and the Secretary of the Fund upon receipt of a written recommendation from the manager. Any such approval must be reported to the trustees at their next meeting.

Review process The Trustees will review the contents of this statement of investment principles on an annual basis and modify if it is deemed appropriate.

Last reviewed: November 2024

Page 19