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2020-12-31-accounts

THE CHARLES GODWIN CHARITABLE TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020

Charity No : 1050014

Prepared by :

IAN DALZELL LTD Chartered Accountants Broughton Lodge Mews Field Broughton Grange-over-Sands Cumbria LA11 6HL

1

THE CHARLES GODWIN CHARITABLE TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020

CONTENTS

Page

2

THE CHARLES GODWIN CHARITABLE TRUST

CHARITY INFORMATION

Charity Commission Registration Number : 1050014
HM Revenue & Customs Exemption Number : XR9981
Trustees : C R Godwin MBE, FCA *
Mrs G J Godwin SRN
R A Roberts BA (Hons), TEP, CTAPS
Mrs P A Foulerton
D R Godwin BSc (Hons), FCA *
D P Godwin BSc (Hons), ACA, AITI *
* signifies being a member of the Investment Sub-Committee
Correspondence Address : Greencroft
Priest Lane
Cartmel
Cumbria LA11 6PT
Telephone : 015395 36566
Solicitors : Gedye & Sons
Chancery House
Kents Bank Road
Grange-over-Sands
Cumbria LA11 7HD
Bankers : Royal Bank of Scotland
St Ann Street
Manchester M60 2SS
Independent Examiner : Ian Dalzell Ltd
Broughton Lodge Mews
Field Broughton
Grange-over-Sands
Cumbria LA11 6HL

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THE CHARLES GODWIN CHARITABLE TRUST TRUSTEES’ ANNUAL REPORT

The Trustees are pleased to present their twenty fourth Annual Report and the Financial Statements for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

Creation

The Charity was formed by a Trust Deed dated 30 September 1995 between Charles Richard Godwin, Gwendoline Janet Godwin, Richard Andrew Roberts and Patricia Ann Foulerton.

The Charity was registered with the Charity Commissioners under number 1050014 on 21 October 1995. HM Revenue & Customs have recognised the Trust as a charity within the definition of Section 519 Income Tax Act 2007 in a letter dated 3 November 1995.

Objectives and Public Benefit Statement

The objectives of the Charity are :

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, in planning future activities, setting the grant making policy for the year and in investing activities.

Organisation

The Trustees who have served during the year and since the year-end are set out on page 3. Trustees are appointed by the Donor (C R Godwin). After the death of the Donor, new Trustees will be appointed by a majority of the remaining Trustees. The Trustees meet at least twice a year but there are subgroups which meet more frequently to assess grant applications, to interview individual grant applicants and the review the ongoing investment activities of the Trust. These subgroups report to the full board of Trustees.

Grant Making Policy

The Trust has established its grant making policy to achieve its objects for the public benefit.

The charity invites applications for funding of projects through making itself known to potential candidates. Applicants are asked to provide a summary of their activities and project. The charity requests grantees to report on their projects. The present donation strategy is to support local individuals, local charities and smaller organisations in preference to the major national charities. When making donations to individuals, those individuals are expected to be making efforts of their own to help meet costs of their projects.

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THE CHARLES GODWIN CHARITABLE TRUST TRUSTEES’ ANNUAL REPORT (continued)

Financial Review and Investment Policy

The Charity received an initial cash donation of £100,000 in 1995 to be retained for investment. Further donations from the donor totalling £140,211 in cash and £276,332 in equities have since been received. Donations are invested and the value of those investments at 31 December 2020 was £679,890 (2019: £651,706). The income of the Trust derives from dividends and interest received from these investments together with interest received on monies deposited with the Charity’s bankers. In 2020, investment income was £20,245 (2019: £20,522).

The Charity has made grants totalling £14,854 in the year under review (2019: £15,353).

The Charity’s accumulated funds at 31 December 2020 totalled £716,573 (2019: £671,589).

The year ended 31 December 2020 was an extremely volatile one for quoted investments worldwide following the arrival of the Covid19 pandemic in late February 2020. The immediate effect on the Trust's investments was a major fall in values at the end of the first quarter (to 31 March 2020). On that date, the investments were showing unrealised losses totalling £107,797 (16.54%). The second quarter saw a recovery of most of these losses but further losses were experienced in October. At 31 October 2020, the investments were again showing unrealised losses of £74,429 (11.68%) but, again, these were almost entirely recovered by the end of December 2020. The ultimate result for the year was net unrealised losses of £2,186. In all the circumstances, this has been a very satisfactory outcome.

On the income front, the Trustees were concerned to read in the Press in early 2020 that quite a few companies were considering reducing or cancelling their dividends. The Trustees decided to defer paying the grants to the regular beneficiaries until later in the year by which time the situation would have become clearer. Very few companies carried out their threats and dividend and interest income was very similar to that of the previous year. Indeed, the amount of the Trust's grants remained similar to those of the previous year.

Investment Policy

There are no restrictions on the charity’s power to invest. The investment strategy is set by an investment sub-committee and approved at a full meeting of the Trustees. The strategy is set within an overall policy which states that approximately 40% of the endowment fund is to be invested in mainly fixed interest funds and that approximately 60% be invested in equities or mainly equity based funds.

Further details of the Charity’s activities are contained in the attached financial statements.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately one year’s unrestricted expenditure. This provides sufficient funds to cover management and administration and to respond to emergency applications for grants which arise from time to time. Unrestricted funds were maintained at this level throughout the year.

Risk management

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Trustees

The Trustees are listed in the Charity Information on page 3.

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THE CHARLES GODWIN CHARITABLE TRUST TRUSTEES’ ANNUAL REPORT (continued)

Trustees’ responsibilities in relation to the financial statements

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 Charity’s 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 which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

By order of the Board of Trustees

C R GODWIN MBE, FCA Chairman

14 May 2021

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THE CHARLES GODWIN CHARITABLE TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CHARLES GODWIN CHARITABLE TRUST

We report to the Trustees of The Charles Godwin Charitable Trust on our examination of the financial statements for the year ended 31 December 2020 which are set out on pages 8 to 14.

Responsibilities and Basis of Report

As the Charity’s Trustees you are responsible for the preparation of the financial statements with the requirements of the Charities Act 2011 ("the Act").

We report in respect of our examination of the charity’s financial statements carried out under section 145 of the Act and in carrying out our examination we have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

It is our responsibility to:

Independent Examiner's Statement

We have completed our examination. We confirm that no material matters have come to our attention in connection with the examination giving us cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Ian R Dalzell MA FCA

on behalf of

IAN DALZELL LTD Institute of Chartered Accountants in England & Wales Broughton Lodge Mews Field Broughton Grange-over-Sands 14 May 2021 Cumbria LA11 6HL

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THE CHARLES GODWIN CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL ACTIVITIES
for the year ended 31 December 2020 Unrestricted Endowment Total Total
Funds Funds
2020 2020 2020 2019
Notes £ £ £ £
Income & Endowments from:
Donations 2 - 42,308 42,308 -
Investments 3 20,245 - 20,245 20,522
--------- --------- --------- ---------
Total Income & Endowments 20,245 42,308 62,553 20,522
--------- --------- --------- ---------
Expenditure on:
Charitable Activities:
Grants Paid 4 14,854 - 14,854 15,353
Governance Costs:
Management & Administration 5 529 - 529 1,763
--------- --------- --------- ---------
Total Expenditure 15,383 - 15,383 17,116
--------- --------- --------- ---------
Net Income before Transfers 4,862 42,308 47,170 3,406
Transfers between funds (2,000) 2,000 - -
--------- --------- --------- ---------
Net Income/(Expenditure)
before Other Recognised Gains and Losses 2,862 44,308 47,170 3,406
Realised Gains/(Losses) on Investment Assets - - - -
Unrealised Gains/(Losses) on Investment Assets 7 - (2,186) (2,186) 75,255
--------- --------- --------- ---------
- (2,186) (2,186) 75,255
--------- --------- --------- ---------
Net Movement in Funds 2,862 42,122 44,984 78,661
Fund Balance brought forward 15,498 656,091 671,589 592,928
--------- --------- --------- ---------
Fund Balance carried forward 18,360 698,213 716,573 671,589
====== ====== ====== ======

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

The Notes on pages 10 to 14 form part of these financial statements

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THE CHARLES GODWIN CHARITABLE TRUST

BALANCE SHEET

as at 31 December 2020

BALANCE SHEET
as at 31 December 2020
2020 2019
Notes £ £
Fixed Assets :
Investments 6 679,890 651,706
--------- ---------
Current Assets :
Debtors 3,896 -
Cash at Bank 33,187 20,183
--------- ---------
37,083 20,183
Creditors: Amounts falling due within one year :
Accruals (400) (300)
--------- ---------
Net Current Assets 36,683 19,883
--------- ---------
Total Assets less Current Liabilities 716,573 671,589
====== ======
Endowment Funds :
Balance at start 656,091 580,836
Net Movement in Fund for year 42,122 75,255
--------- ---------
Balance at end 698,213 656,091
--------- ---------
Unrestricted Funds :
Balance at start 15,498 12,092
Net Movement in Fund for year 2,862 3,406
--------- ---------
Balance at end 18,360 15,498
--------- ---------
Total Charity Funds 716,573 671,589
====== ======

Approved by the Board of Trustees on 14 May 2021 and signed on its behalf by:

.................................................. Trustee

C R GODWIN MBE FCA

The Notes on pages 10 to 14 form part of these financial statements

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THE CHARLES GODWIN CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1. Accounting Policies

a) General Information and Basis of Preparation

The Charles Godwin Charitable Trust is a charity established under a Trust Deed in England. The correspondence address is given in the charity information on page 3 of these financial statements. The nature of the charity’s operations and principal activities are given on pages 4 to 6 of the Trustees' Report.

The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 (as updated by Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The accounts have been prepared on a going concern basis under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The functional currency of the charity is sterling and amounts in the accounts are rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

b) Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. The funds are made up of the annual income from the Trust's investments less the grants made to beneficiaries and the expenses of running the Trust. The Trustees may transfer surplus funds to endowment funds from time to time as they, in their absolute discretion, think fit.

Endowment funds represent those assets which must be held permanently by the charity, principally investments. The funds are made up of the donations from the donor, the realised and unrealised gains and losses of the Trust's investments and the occasional transfer of funds from the unrestricted funds. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any realised capital gains or losses arising on the investments form part of the endowment funds, as do unrealised gains and losses on investments.

c) Income Recognition

All income is recognised in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled

Investment income is earned through holding assets for investment purposes such as shares and collective investments. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.

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THE CHARLES GODWIN CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

1. Accounting Policies (continued)

d) Expenditure Recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Other expenditure comprises management and administration costs for the running of the charity itself as an organisation. The Trustees consider that no allocation of these costs is practicable and that they should be shown separately in the financial statements.

e) Fixed Asset Investments

Investments are recognised initially at fair value which is normally the transaction price including transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably. Fair value is the closing market selling value at the balance sheet date.

When investments are sold, the realised gain is taken to be the disposal proceeds less the market value at the start of the period. This realised gain is shown in the Statement of Financial Activities. Where an investment is sold which has been revalued at market value in a previous financial period, the unrealised gain is deducted (because it is now realised) from the unrealised gains brought forward (as shown in the Reconciliation of Movements in Unrealised Gains on Investment Assets (note 6). This part of the realised gain is calculated by taking the cost of the shares disposed of on a first-in-first-out basis from the market value of the shares at the start of the financial period.

f) Going Concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. Donations Received(all from C R Godwin) 2020 2019
£ £
424 shares in InterContinental Hotels Group plc 20,818 -
100 shares in Carnival plc 3,217 -
10,000 shares in NWF Group plc 18,273 -
--------- ---------
42,308 -
====== ======

The Trust asked the Donee to sell the shares above on its behalf. The proceeds from sale were then donated to the Trust.

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THE CHARLES GODWIN CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

  1. Investment Income
Investment Income 2020 2019
£ £
Dividends Received 20,223 20,487
Interest Received 22 35
--------- ---------
20,245 20,522
====== ======
Investments Returns
Original Market Value Income Return on Return on
Cost Cost Market Value
2020 2020 2020 2020
£ £ £ % %
Bonds & Fixed Interest Instruments
:
Blackrock Charities UK Bond Fund 173,761 186,815 7,430 4.28 3.98
====== ====== ====== ====== ======
Developed World Equities
:
Collective Investments
:
Artemis Income 20,039 19,572 706 3.52 3.61
Blackrock Charities UK Equity Fund 190,435 287,125 8,810 4.63 3.07
F&C Investment Trust 25,011 29,532 436 1.74 1.48
Invesco Perpetual High Income Fund 9,000 6,864 349 3.88 5.08
Scottish Mortgage Investment Trust 15,012 41,953 115 0.77 0.27
--------- --------- --------- --------- ---------
259,497 385,046 10,416 4.01 2.71
====== ====== ====== ====== ======
Developed World Equities
:
Associated British Foods plc 4,990 4,854 73 1.46 1.50
Diageo plc 14,989 16,588 400 2.67 2.41
M&G plc (split from Prudential) 1,400 1,707 187 13.36 10.95
NWF Group plc 12,650 19,000 690 5.45 3.63
Prudential plc 8,601 11,570 215 2.50 1.86
Rolls Royce plc 3,008 321 13 0.43 4.05
Royal Dutch Shell plc - A shares 10,004 5,677 273 2.73 4.81
Unilever plc 14,995 15,953 526 3.51 3.30
--------- --------- --------- --------- ---------
70,637 75,670 2,377 3.37 3.14
====== ====== ====== ====== ======
Total before additions in year 503,895 647,531 20,223 4.01 3.12
Additions in year:
(no income as bought within 2 months of year end):
Artemis Income 42 49
Legal & General Group plc 20,013 19,981
Rolls Royce plc 305 1,070
Scottish Mortgage Investment Trust 10,010 11,259
--------- --------- ---------
Total 534,265 679,890 20,223
====== ====== ======

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THE CHARLES GODWIN CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

4. Grants Paid 2020 2019
£ £
Action on Hearing Loss - 100
Barrow & Districts Society for the Blind (Younger Generations Project) 1,000 1,000
Blind Veterans UK (living in Cumbria) 500 500
Buttle UK (Poverty Relief for Young People in Cumbria) 500 500
Cartmel Primary School (Christmas Party) 365 352
Cartmel Priory - Ice Cream Sunday - 200
Combat Stress (Mental Welfare for Ex-Servicemen) 500 500
Cumbrian Community Foundation (Winter Warmth Fund) 500 500
Derian House Children's Hospice 1,000 1,000
Eden Valley Children's Hospice 1,000 1,000
Foster Parents Plan - Philippines 839 851
Grange Christmas Tree Appeal 100 100
Grange-over-Sands & District Concert Club 500 500
Grange-over-Sands Junior Golf (Coaching) - 500
Grosvenor Chapel, Mayfair (Roof Appeal) 100 -
Happy Days 2,000 2,000
Invictus Games (Solo Atlantic Sponsorship) 1,000 -
Just Giving 150 -
Lakeland Juniors Orienteering Club - 500
Lullaby Trust (Marathon sponsorship) - 150
McMillan Nurses 300 200
Olympics Event for Cartmel Peninsula Schools 500
Rotary Club of Grange (Rise Against Hunger) - 400
Rotary Club of Grange (School Dictionaries) - 250
Rwanda Sisterhood Association - 250
St Mary's Hospice 1,500 1,500
Sedna Epic Expedition to the High Arctic (Sarah Neill) 500 -
Starlight Children's Foundation 2,000 2,000
Transplant Sport (World Transplant Games) - 500
--------- ---------
14,854 15,353
====== ======
5. Management & Administration 2020 2019
£ £
Bank Charges 66 66
Legal Fees 36 30
Independent Examiner's Fees 400 300
Trustees' Dinner - 1,180
Investment Managers' Fees 113 133
Stock Exchange Fees for Legal Entity Identifier - 162
Loyalty Bonus from Investment Managers (86) (108)
--------- ---------
529 1,763
====== ======

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THE CHARLES GODWIN CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

6. Investments

Investments
No. Of Cost Market Value Market Value Valuation
Units/ Change
Shares 2020 2020 2019 2020
£ £ £ £
Bonds & Fixed Interest Instruments
:
Blackrock Charities UK Bond Fund 94,830.02 173,761 186,815 180,746 6,069
====== ====== ====== ======
Developed World Equities
:
Collective Investments
:
Artemis Income-(addition 21.61 units cost £42) 8,595.63 20,081 19,621 21,892 (2,313)
Blackrock Charities UK Equity Fund 44,481.07 190,435 287,125 307,720 (20,595)
F&C Investment Trust 3,762 25,011 29,532 28,666 866
Invesco Perpetual High Income Fund 2,284.47 9,000 6,864 9,236 (2,372)
Scottish Mortgage Investment Trust (addition 932 4,405 25,022 53,212 20,126 23,076
shares cost £10,010)
--------- --------- --------- ---------
269,549 396,354 387,640 (1,338)
====== ====== ====== ======
Individual Companies
:
Associated British Foods plc 214 4,990 4,854 5,549 (695)
Diageo plc 573 14,989 16,588 18,348 (1,760)
Legal & General Group plc (addition in year) 7,520 20,013 19,981 (32)
M&G plc (split from Prudential) 858 1,400 1,707 2,040 (333)
NWF Group plc 10,000 12,650 19,000 17,500 1,500
Prudential plc 858 8,601 11,570 12,398 (828)
Rolls Royce plc (addition 953 shares cost £305) 1,239 3,313 1,391 1,960 (874)
Royal Dutch Shell plc - A shares 437 10,004 5,677 9,791 (4,114)
Unilever plc 362 14,995 15,953 15,734 219
--------- --------- --------- ---------
90,955 96,721 83,320 (6,917)
====== ====== ====== ======
Total 534,265 679,890 651,706 (2,186)
====== ====== ====== ======

Note: The Valuation Change where units/shares have been added is calculated to include the cost of additions in the year.

7. Reconciliation of Movements in Unrealised Gains/Losses on Investment Assets

2020 2019
£ £
Unrealised Gains at Start 147,811 72,556
Deduct in respect of disposals in year - -
--------- ---------
147,811 72,556
Net Gains/(Losses) arising on revaluations in year (2,186) 75,255
--------- ---------
Unrealised Gains at End 145,625 147,811
====== ======

  1. Transactions with Trustees and Connected Persons

  2. a) Apart from the donations from one of the Trustees, there were no transactions with Trustees or connected persons in the year ended 31 December 2020.

  3. b) An annual Trustees' Dinner is held as a mark of gratitude to the Trustees who give freely and generously of their time. The cost of the dinner is met by the Trust. In 2020, the annual dinner was cancelled due to the Covid-19 pandemic.

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