**THE RAINE FAMILY CHARITABLE TRUST**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
**THE RAINE FAMILY CHARITABLE TRUST**
## **CONTENTS**
|**Index**||**Page**|**Page**|
|---|---|---|---|
|Trustees' Annual Report|1|-|3|
|Independent Examiner's Report||4||
|Statement of Financial Activities|5|-|6|
|Balance Sheet||7||
|Notes to the Accounts|8|-|12|
**THE RAINE FAMILY CHARITABLE TRUST**
**1**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
The trustees present their report and accounts for the year ended 30 September 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and "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 (FRS 102)".
## _**Reference and Administrative Information**_
## **Charity Number: 1040607**
## **Principal Office**
Unit 12, The Enterprise Centre, Cranborne Road, Potters Bar, Hertfordshire, EN6 3DQ.
## **Trustees**
P Jacobson N Raine S Raine D Schaffer
## **Independent Examiner**
Julie Mellowes FCCA of
UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW.
## **Accountants**
UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW.
## **Bankers**
Lloyds Bank Plc, Private Banking, 21-23 Hill Street, London, W1J 5JW. Bank Leumi (UK) Plc, 20 Stratford Place, London, W1C 1BG.
## **Investment Managers**
Rowan Dartington, Colston Tower, Colston Street, Bristol, BS1 4RD.
## **Objectives and Activities**
The object of the trust is to apply the capital and/or the income of the trust fund for such charitable purposes as the trustees in their absolute discretion think fit. During the year grants have been made to other organisations that are themselves charitable in nature.
## **Public Benefit**
The trustees have complied with section 17(5) of the 2011 Charities Act, having due regard for the Charity Commission's guidance on public benefit when reviewing the trust's aims and objectives, when setting the grant making policy and in making awards.
## **Grant Making Policy**
The trustees review applications for charitable grants on an individual basis with particular consideration given to children's charities as well as those for the benefit of the elderly or others with specific needs. Grants are awarded upon the trustees' agreement and approval for subsequent payment.
**THE RAINE FAMILY CHARITABLE TRUST**
**2**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Achievement and Performance**
During the year the charity received total income amounting to £119,378 (2019: £122,456). Grants of £109,200 (2019: £71,450) were awarded and paid during the year.
## **Plans for the Future**
The trustees have no foreseeable plans to modify or significantly change any of the objects, activities or policies described above.
## **Financial Review**
The charity's net outgoing resources for the year (after expenses but before any gains and losses) amounted to £4,575 (2019: net incoming resources of £31,388).
The charity is principally funded by members of the Raine family and is reliant on the income generated by its investments and further donations.
## **Investment Policy and Performance**
The trustees pursue a cautious investment approach and maintain a diversified investment portfolio comprising listed and unlisted investments separately held with various financial institutions. Fixed income investments are selected to provide a degree of reliability in funding the ongoing charitable objectives of the trust.
There are no restrictions on the trustees' power to invest. The trustees consider that investment performance is satisfactory.
## **Reserves Policy**
The trustees' aim is to maintain free reserves in unrestricted funds at a level that will provide sufficient funds to respond to applications for grants and ensure that there are sufficient funds available to cover governance costs. As at the year end, total funds amounted to £3,697,192 (2019: £3,743,033), of which £2,107,395 (2019: £2,153,284) were held in the unrestricted fund and may be awarded in furtherance of charitable objectives; the value of the endowment fund amounted to £1,589,797 (2019: £1,589,749) and represents expendable funds that may be designated to the unrestricted fund at the trustees' discretion.
## **Structure, Governance and Management**
The charitable trust is an unincorporated body, constituted under a trust deed dated 4 August 1994 and is a registered charity, number 1040607. The charity is reliant on the income generated by its investments, it does not actively fundraise and maintains a careful stewardship of its existing resources.
The power of appointing new or additional trustees is exercisable by the existing trustees. The trustees meet at such intervals as they consider appropriate.
The charity has no full time or part time employees or volunteers to assist in the running of the charity, the daily administration being carried out by the trustees themselves.
## **Risk Management**
The trustees have reviewed the major risks that impact on the work of the trust. The trustees have appointed professional investment advisors with whom they consult regularly to manage the risks attaching to the charity's investment assets. The systems that have been established enable the trustees to review and take necessary steps to mitigate those risks.
THE RAINE FAMILY CHARITABLE TRUST
TRUSTEES. ANNUAL REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Statement of truslee5' Te5PODsibililie5
The tnjstees are responsible for preparing the TrusEees' Rew)rt and the accounts in accordance with
applicabl¢ laH' and Llniied Kingdom Accounting Siandards (United Kingdom GenerallTr Accepted
Accounting Praclice).
The law applicable to charities in England and Wales requires the tsusiees ppare accounis for each
financial year which give a Irue and fair view of the siaie of affairs of the charity and of the incoming
resources and application of resource5 of the charity for thai year.
In preparing (hese accounts. Ihe irustees are required io..
select suitable a¢¢ounting wlicies and then appl!. them consi51en¢ly-
observe the meThods and principl¢s in ihe applicable Chariiies SORP:
- wnak¢ judgements and estimates that are rvdsonable and prud¢nl;
stsie wheiher applicable accounting starardS have been followed. subjeci LO any maierial departures
disclosed and explained in the accounts- and
- Prere the accounts on ihe going concern basis unless it is inappropriote io presume thai the
charit). will continue in opcration.
The irustees are respon5ibl¢ for kccping suffi¢ient accouniing records that disclose wÉth rca50nabl¢
ccuracy ai an>" time th¢ financial FKTrSitaon of the chariTh' and h]ch enable ihem to en5urc that thc
accounts comply with the Charities Aci ?01 l. the Charity, (Accounts and Rep)ns) Regulations 2008 and
Ihe provisions of the trust deed. They are also responsible for saf¢guardittg th¢ ass¢iS of the charity and
hence for taking reasonable steps for the preveniion and deiection of fraud and other igu]ar](l¢s.
Approved by Lhe TIUSeS on sep1em£r 2021 and signed on their behalf by:
P Ja¢ub
T¢uste
Hackeryoung
Charterd knntsnts
EIW 1YW
THE RAINE FAMILY CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUST5 OF
THE RAINE FAMILY CHAABLE TRUST
FOR THE YEAR Ef4DED SEPTEMBER 2020
Srptember 2020, which art set out pag¢$ 5 11
This report is t) solely io the clwitys trust &8 a br*ty. in with Secti 145 of the ChariEies Act 2011.
them in an tndepxthni ¢xS r¢tKrt fr*nD th pw. To the fullest by law. I do accept
thc opinion5 1 have frned.
Respo111t5eS and b&q14 of rep)rt
As the clwity trusttts of the Charlry are wible f(f of th¢ X¢lMwI8 JD wilh th¢
requir¢nMts of th¢ Chariti Act 2011 {'th¢ Act.).
I in resF¢et of my exami of the Trus*'s carrieo urth 5tICa 145 of th¢ 2011 Act aTMI '
145{3Mb) of the 2011 ACL
tlldependent ex4rniDer'5 StatEmE
I have completed my examinatioTJ. l ¢(firM no rnatrrial ffjauers to Dry ottenti in cimtieckn the
¢xamination giviD8 me caSe to believe that in any [r5CL
11) xcounting rec(Yds were n(* kept in rw of the Tru# wited by 5e£tith 130 of the ACL. or
{2) the accounts do with the rtt(*d&' (r
(3) the a¢couDts do n(M con]ply with the applicable reqUIrell C1ce[ the fl atwJ c¢mtent of
out in the Cbarities (Accounts 8Dd Rqxts) Regulati15 21M)8 other than any requiremeni thai rhe
Juli¢ M¢lItsW FCCA
drantHouse
IA)nd(m Elw IYW
'. Ig Sept¢mt¢r 2tr21
**THE RAINE FAMILY CHARITABLE TRUST**
**5**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Note**
**Income and endowments from:**
Donations and legacies
2
Investment income
3
**Total income**
**Expenditure on:**
Charitable activities
4
Raising funds (investment management fees)
**Total expenditure**
**Net (expenditure)/income**
**before (losses)/gains**
Net (loss)/gain on investments
8
Net (loss)/gain on foreign currency transactions
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**2020**
**Endowment**
**Fund**
**£**
48
-
48
-
-
-
48
-
-
48
1,589,749
£1,589,797|**2020**
**Unrestricted**
**Fund**
**£**
-
119,330
119,330
(111,815)
(12,138)
(123,953)
(4,623)
(41,055)
(211)
(45,889)
2,153,284
£2,107,395|**2020**
**Total**
**Funds**
**£**
48
119,330
119,378
(111,815)
(12,138)
(123,953)
(4,575)
(41,055)
(211)
(45,841)
3,743,033
£3,697,192|**2019**
**Total**
**Funds**
**£**
-
122,456|
|---|---|---|---|---|
|||||122,456|
|||||(75,927)
(15,141)|
|||||(91,068)|
|||||31,388
791
1,015|
|||||33,194
3,709,839|
|||||£3,743,033|
All recognised gains and losses have been included in the Statement of Financial Activities and are derived from the continuing activities of the Charitable Trust.
**THE RAINE FAMILY CHARITABLE TRUST**
**6**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Statement of Financial Activities**
|**For the year ended 30 September 2019**
**Note**
**Income and endowments from:**
Donations and legacies
2
Investment income
3
**Total income**
**Expenditure on:**
Charitable activities
4
Raising funds (investment management fees)
**Total expenditure**
**Net income before gains**
Net gain on investments
8
Net gain on foreign currency transactions
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**2019**
**Endowment**
**Fund**
**£**
-
-
-
-
-
-
-
-
-
-
1,589,749
£1,589,749|**2019**
**Unrestricted**
**Fund**
**£**
-
122,456
122,456
(75,927)
(15,141)
(91,068)
31,388
791
1,015
33,194
2,120,090
£2,153,284|**2019**
**Total**
**Funds**
**£**
-
122,456|
|---|---|---|---|
||||122,456|
||||(75,927)
(15,141)|
||||(91,068)|
||||31,388
791
1,015|
||||33,194
3,709,839|
||||£3,743,033|
THE RAINE FAMILY CHAIUTABLE TRUST
BALANCE SHEET
AS AT 30 SEPTF.MBER 2020
2020
2019
Fiied assets
Investments
2.121.803
2.213,699
CurreDt gss¢ts
Debtor5
95.018
123.294
1.411.560
Cash ai bank
1.488.411
1.583.429
1.534.854
Current liabilities
Creditors falling due 7th1n
one year
10
18.0401
{5.5?01
Net Current as¥ets
1.575.389
1.529,3i4
Net gssets
£3.697.19?
£3.743,033
The funds of tbe charity
Unrestricted Fund
2.107.395
1.589.797
2,153,284
1.589.749
Endowment Fund
Tot*1 funds
£3.697.19?
£3.743.033
Th¢ financial sthiements on pages S to 12 w'ere approved by the Trust¢cs on Iy Scpt¢tnber 2021 and are
5ign¢d on their behalf by=
P Jacob50n
Trusiee
**THE RAINE FAMILY CHARITABLE TRUST**
**8**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1 Accounting policies**
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and "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 (FRS 102)" . The charity is a Public Benefit Entity as defined by FRS 102.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.
These accounts have been prepared under the historical cost convention unless otherwise stated in the corresponding notes, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **1.3 Charitable funds**
The Funds of the charity comprise the Unrestricted fund and the Endowment fund. Of the Unrestricted fund:both the capital and income may be applied at the discretion of the trustees in furtherance of the charitable objectives of the trust. Of the Endowment fund:- the capital is held to preserve the future prosperity of the trust by generating income to be applied in maintaining its charitable objectives. The Endowment fund represents expendable funds that may be designated to the Unrestricted fund at the trustees' discretion. All of the charity's financial activity is allocated to the Unrestricted fund.
## **1.4 Income recognition**
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt (so it is probable that the income will be received) and the amount of income receivable can be measured reliably.
## **1.5 Expenditure recognition**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. Unless otherwise stated all expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. These financial statements include a provision for the cost of their preparation and independent examination.
Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the trust.
**THE RAINE FAMILY CHARITABLE TRUST**
**9**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1 Accounting policies (continued)**
## **1.6 Irrecoverable VAT**
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **1.7 Charitable activities**
The expenditure on charitable activities includes grants and governance costs.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice, including all management and administrative costs.
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **Basic financial assets**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## **Basic financial liabilities**
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
## **1.10 Investments**
Listed investments represent a portfolio of fixed interest securities and equities held with Rowan Dartington - these are included in the balance sheet to reflect their market values as at the year end.
Unlisted investments include:
(i) State of Israel Bonds - included on the balance sheet at cost value. These unlisted investment bonds are traded in US Dollars and held until maturity when the principal investment amount is repaid together with the annually compounded interest due.
(ii) Pentagon Sterling Multi Strategy Fund (an unlisted BVI registered fund currently under administration) - included on the balance sheet at cost value.
**THE RAINE FAMILY CHARITABLE TRUST**
**10**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1 Accounting policies (continued)**
## **1.11 Gains and losses on investments**
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and their opening carrying value or their acquisition cost if acquired during the current financial period. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **2[Donations and legacies]**
During the year the charity received a donation of £48 (2019: £Nil) from the Estate of R. Raine.
## **3 Investment income**
|**3 Investment income**
Interest on cash deposits
**Total investment income**
**4 Expenditure on charitable activities**
Investment income
Governance costs (see note 6)
Grants awarded (see note 5)
Interest on loans to West One Loans Ltd|**2020**
**£**
104,359
6,638
8,333
£119,330
**2020**
**£**
109,200
2,615
£111,815|**2019**
**£**
97,548
11,444
13,464|
|---|---|---|
|||£122,456|
|||**2019**
**£**
71,450
4,477|
|||£75,927|
## **5 Analysis of grants**
The charity undertook no direct charitable activities but awarded grants to a number of institutions in furtherance of its charitable activities.
|**Grants awarded during the year:**
Total charitable grants awarded
**Analysis by category:**
- Health and Welfare
- Education
- Science and Medicine|**2020**
**£**
109,200
£109,200
**2020**
**£**
83,200
26,000
-
£109,200|**2019**
**£**
71,450|
|---|---|---|
|||£71,450|
|||**2019**
**£**
43,900
26,500
1,050|
|||£71,450|
**THE RAINE FAMILY CHARITABLE TRUST**
**11**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**6 Governance costs**
**Management and administration**
Accountancy fees
Independent examiner's fee
Bank charges
Legal fees|**2020**
**£**
2,220
300
95
-
£2,615|**2019**
**£**
2,219
300
240
1,718|
|---|---|---|
|||£4,477|
## **7 Staff costs**
No staff were employed during the period by the charity, the daily administration of the charity being carried out by the trustees.
|**8 Fixed asset investments**
**Listed**
**Unlisted**
**Investments**
**Investments**
**2020**
**2020**
**£**
**£**
Values as at 1 October
2,106,608
107,091
Additions to investments at cost
147,592
14,315
Disposal proceeds from investments
(200,555)
(12,193)
(8,789)
-
(32,372)
106
**Values at 30 September ***
£2,012,484
£109,319
* [see accounting policy note 1.10 above for further details].
**Values at 30 September comprise:**
Listed Investments
Rowan Dartington investment portfolio
Unlisted Investments
State of Israel Bonds
(USD 84,989 2019: USD 82,248)
Pentagon Sterling Multi Strategy Fund
**Total**
**9 Current assets**
**Debtors**
Loans to West One Loans Ltd
Accrued income
**Total debtors**
Realised and unrealised loss on
disposal of investments
Unrealised (loss)/gain on revaluation
of investments|**Total**
**Investments**
**2020**
**£**
2,213,699
161,907
(212,748)
(8,789)
(32,266)
£2,121,803
**2020**
**£**
2,012,484
69,076
40,243
£2,121,803
**2020**
**£**
75,000
20,018
£95,018|**Total**
**Investments**
**2019**
**£**
1,996,042
480,376
(263,510)
(7,181)
7,972|
|---|---|---|
|||£2,213,699|
|||**2019**
**£**
2,106,608
66,848
40,243|
|||£2,213,699|
|||**2019**
**£**
100,000
23,294|
|||£123,294|
**THE RAINE FAMILY CHARITABLE TRUST**
**12**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **9 Current assets (continued)**
|**Cash at bank**
Bank Leumi
Lloyds Bank
Rowan Dartington
**Total cash**
**Total current assets**
**10 Current liabilities**
**Creditors falling due within one year**
Accountancy fees
Independent examiner's fee
Investment management fees
**Total liabilities**|**2020**
**£**
1,038,615
11,778
438,018
£1,488,411
£1,583,429
**2020**
**£**
4,440
600
3,000
£8,040|**2019**
**£**
1,028,601
57,957
325,002|
|---|---|---|
|||£1,411,560|
|||£1,534,854|
|||**2019**
**£**
2,220
300
3,000|
|||£5,520|
## **11 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.
## **12 Related party transactions**
The Endowment Fund includes donations received from Nigel Raine (trustee) and Rosalind Raine since 2007. During the year a donation of £48 (2019: £Nil) was received from the Estate of R Raine (deceased).