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 

- 1 REPORT OF THE TRUSTEES 

- 4 INDEPENDENT AUDITOR'S REPORT 

- 7 STATEMENT OF FINANCIAL ACTIVITIES 

- 8 BALANCE SHEET 

- 9 CASH FLOW STATEMENT 

- 10 NOTES TO THE ACCOUNTS 

- 14 GRANTS MADE IN THE YEAR 

- 18 STATEMENT OF INVESTMENT PRINCIPLES 



## 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. 

2. 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. 

3. 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. 

- 4, Financial review Investments have been acquired within the powers set out in the Trust Deed and in accordance with the Statement of Investment Principles set out on pages 18 and 19. 

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). 

5. 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. 

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THE DUCHY OF LANCASTER BENEVOLENT FUND 

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

6. 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. 

7. 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. 

8. 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 

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## THE DUCHY OF LANCASTER BENEVOLENT FUND 

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

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


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


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: 

- e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; * make judgements and estimates that are reasonable and prudent; e state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- ° prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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 

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## 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: 

- e give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended; 

- e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- e 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 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 

- 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: e the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or 

- e the charity has not kept sufficient accounting records; or 

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## 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. 

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## 19 November 2024 



## THE DUCHY OF LANCASTER BENEVOLENT FUND 

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


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||||||||||
|---|---|---|---|---|---|---|---|---|
|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 -----**<br>


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

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## 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<br>Cash and deposits|9|6,459<br>206,383|6,730<br>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<br>Grants<br>Total Non-Current Liabilities|11|(32,000)<br>(32,000)|(24,000)<br>(24,000)|
|NetAssets||18,993,556|17,983,613|
|Capital Fund<br>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. 

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## THE DUCHY OF LANCASTER BENEVOLENT FUND 

## CASH FLOW STATEMENT FOR THE YEAR TO 31st MARCH 2024 


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||||||||
|---|---|---|---|---|---|---|
|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 -----**<br>


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## 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 Trust constitutes a public benefit entity as defined by FRS 102. 

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). 

- (b) Significant judgements, key assumptions and estimates Accounting estimates and judgements are continually evaluated and are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Duchy makes estimates and assumptions concerning the future. The resulting accounting estimates could, by definition, differ from the actual outcome. There are no estimates and assumptions that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

- (c) Income Donations and interest from banks and Government securities are accounted for on an accruals basis. Dividends are accounted for when received. 

- (d) Grants Grants are accounted for when the intention to make the payment is communicated to the beneficiary. If there are conditions attached to the payment then the grant is accounted for once the conditions are no longer within the control of the Trustees. 

- (e) Governance costs Governance costs comprise costs incurred in Trust administration and compliance with regulatory requirements. 

- (f} Taxation The Trust carries on activities which are exempt from corporation tax and income tax. The Charity suffers Value Added Tax which is included with the expenditure to which it relates. 

- (g) Fixed Asset Investments Fixed Asset investments are stated in the Balance Sheet at bid-price valuation. 

- (h) Expendable Endowment Fund Donations from the Duchy of Lancaster have been invested to provide an income from which grants may be made in accordance with the policy set out in paragraph 6 of the Report of the Trustees. 

- (i) Portfolio Manager Fees The portfolio manager fees are taken from capital and offset in the unrealised (loss)/gain movement in note 8. 


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


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## THE DUCHY OF LANCASTER BENEVOLENT FUND 

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


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|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|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 -----**<br>


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

* in 2024/25, £51,000 made up of 10 grants e jin 2025/26, £32,000 made up of 7 grants These future payments have been accrued for in 2024. 


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|||||||||
|---|---|---|---|---|---|---|---|
|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 -----**<br>


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. 

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## 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. 

8. Reconciliation of movement of investments 

|8.|Reconciliation of movement of investments|2024|2023|
|---|---|---|---|
|||£|£|
||Quoted investments:|||
||Marketvalue at 1st April 2023<br>Management fee|17,823,657<br>(72,345)|18,195,019<br>(70,672)|
||Gains/ (loss) in value ofinvestments<br>Market value at 31st March 2024|1,119,362<br>18,870,674|(300,690)<br>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: 

- Lord Shuttleworth is either a Patron, President or similar: Cancer Care North Lancashire & South Cumbria Enil (2023: £2,475) 

- Diane Hawkins is either a Patron, President or similar for: Fortalice £nil (2023: £2,000), Walthew House £nil (2023: £4,000) 

- Mr Mark Biundell is either as Patron, President or similar for: Sefton Council of Voluntary Services £3,000 (2023: £15,000) which was then distributed to other organisations which have been listed in the grant listing , Liverpool Commonwealth Association (MAST) Enil (2023: £2,000). 

- Amanda Parker, Hon. Mr Justice Timothy Fancourt, Sonia Tolaney and Sir Michael Stevens who served in the year have no connections to any of the charities receiving grants. 

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

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## THE DUCHY OF LANCASTER BENEVOLENT FUND 

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


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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|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 -----**<br>


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<br>Handicapped Childrens action Group<br>StockportTalking Newspaper<br>Team mates|||4,437<br>2,713<br>4,000<br>2,000|
|Douglas Bader Foundation<br>RAFT (Residents Association ofFarringdon&Thirlmere)<br>Sullivans Heroes|||2,750<br>2,000<br>4,054|
|Cherish (Reach and Connect)<br>League ofWelldoers<br>WillowWood Hospice<br>Seashell Trust|||3,100<br>3,460<br>5,000<br>30,000|
|WheelchairRugby<br>Willowbrook Hospice<br>Sam's Diamonds|||5,000<br>4,000<br>2,327|
|Henshaws|||3,740|
|Springhill Hospice<br>Stockdales ofSale, Altrincham & District|||2,000<br>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.<br>Beacon Dementia& Wellbeing|||2,500<br>3,000|
|Blundellsands Methodist Church|||2,000|
|Bolton Mountain RescueTeam|||5,000|
|Brave Church, Oswaldtwistle<br>Brookfield Retrofit Project<br>Church on the Street Ministries|||5,000<br>5,000<br>3,300|
|Coronation Food Project<br>CreateBolton<br>Dingle Multi Agency Centre Ltd<br>EastMeetsWest(WomenTogether in Lancaster)<br>Emerge3RS<br>FourSeasonsAllotments|||900,000<br>2,169<br>2,800<br>2,200<br>2,692<br>2,000|
|Freedomfrom Torture|||5,000|
|Goathland CommunityHub<br>Groundwork<br>Guide BridgeTheatre<br>Halle Concerts Societyon behalfofTheCharles Halle Foundation<br>Hope forJustice<br>Humans Mer|||4,200<br>5,000<br>2,000<br>2,000<br>5,000<br>2,000|
|Knowle Green Village Hall<br>Liverpool Lighthouse<br>Manchester Sikh Foundation (Also known as Feed My City)|||5,000<br>3,048<br>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 -----**<br>
|||||||
|---|---|---|---|---|---|
|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 -----**<br>


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


## 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. 

- Other restrictions a. No direct holding is to exceed 1% of the issued share capital of a company without prior permission of the Trustees. 

- b. b. No acquisition should result in the relevant holding representing more than 5% of the value of the portfolio without prior consent of the Trustees, save in the case of a government security or managed fund. This does not preclude the retention of a holding that attains a value in excess of 5% of the Fund after purchase. 

- c. The manager must have the prior approval of the Trustees before:Investing in non readily realisable investments; « Effecting off-exchange transactions; - Entering underwriting or sub-underwriting commitments; - Using futures, options and other derivative products. 

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