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2023-12-31-accounts

THE CHARLES GODWIN FOUNDATION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2023

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 FOUNDATION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2023

CONTENTS

Page

2

THE CHARLES GODWIN FOUNDATION

FOUNDATION 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 *
P I Jackman BSc (Hons)
* 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 FOUNDATION TRUSTEES’ ANNUAL REPORT

The Trustees are pleased to present their twenty seventh Annual Report and the Financial Statements for the year ended 31 December 2023. 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 Foundation.

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 changed its name in 2021 from "The Charles Godwin Charitable Trust" to "The Charles Godwin Foundation".

The charity was registered with the Charity Commissioners under number 1050014 on 21 October 1995. HM Revenue & Customs have recognised the Foundation 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 Foundation are:

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Foundation’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 to review the ongoing investment activities of the Foundation. These subgroups report to the full board of Trustees.

Grant Making Policy

The Foundation has established its grant making policy to achieve its objectives for the public benefit.

The Foundation 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 Foundation 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 FOUNDATION TRUSTEES’ ANNUAL REPORT (continued)

Financial Review and Investment Policy

The Foundation 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 £482,092 in equities have since been received. Donations are invested and the value of those investments at 31 December 2023 was £773,465 (2022: £698,182). The income of the Foundation derives from dividends and interest received from these investments together with interest received on monies deposited with the Foundation’s bankers. In 2023, investment income was £26,794 (2022: £23,847).

The Foundation has made grants totalling £21,906 in the year under review (2022: £22,850).

The Foundation’s accumulated funds at 31 December 2023 totalled £922,075 (2022: £793,505).

The year ended 31 December 2023 was extremely volatile for quoted investments worldwide. Financial market conditions were no doubt affected by the Covid-19 pandemic and Brexit. The war in Ukraine starting in February 2022 also had an effect on global stability and energy supplies in the world economy. The ultimate results on the Foundation's investments for the year were net unrealised gains of £25,188 (2022: losses £80,714).

Despite the gloom and doom during 2023 in financial market conditions, on the income front the Foundation had a satisfactory year with a record level of unrestricted investment income of £26,794 (2022: £23,847). From this income, grants were made amounting to £21,906 (2022: £22,850).

The usual further investment was made in Artemis Income (£44) under an incentive scheme. In view of the need to be cautious in the uncertain times, an investment of £50,050 was made in Treasury Gilts which will mature in 2025. At the end of the year, bank balances totalled £70,426 (2022: £91,704). Further investments using part of this balance are expected in 2024.

Investment Policy

There are no restrictions on the Foundation’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 30% of the endowment fund is to be invested in mainly fixed interest funds and that approximately 70% be invested in equities or mainly equity based funds.

The Trustees are anticipating that growth in the U.K. will continue to remain weak during 2024. Ongoing inflationary pressures, tight monetary policies, labour shortages and a lack of bank lending appetite may continue to hinder economic recovery. Although in the short term, there may be economic headwinds, in particular with the unknown outcome of the wars in the Ukraine and Palestine, a settlement of these will hopefully be reflected positively in stock market and world growth.

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

Reserves policy

It is the policy of the Foundation to maintain unrestricted funds, which are the free reserves of the Foundation, 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 Foundation 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 names of the Trustees are listed in the Foundation Information on page 3.

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THE CHARLES GODWIN FOUNDATION 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 Foundation’s Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources of the Foundation 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 Foundation 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 Foundation 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

31 May 2024

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THE CHARLES GODWIN FOUNDATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CHARLES GODWIN FOUNDATION

We report to the Trustees of The Charles Godwin Foundation on our examination of the financial statements for the year ended 31 December 2023 which are set out on pages 8 to 14.

Responsibilities and Basis of Report

As the Foundation’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 Foundation’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 Foundation 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 Cumbria LA11 6HL

31 May 2024

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THE CHARLES GODWIN FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2023 Unrestricted Endowment Total Total
Funds Funds
2023 2023 2023 2022
Notes £ £ £ £
Income & Endowments from:
Donations 2 - 99,600 99,600 66,543
Investments 3 26,794 - 26,794 23,847
--------- --------- --------- ---------
Total Income & Endowments 26,794 99,600 126,394 90,390
--------- --------- --------- ---------
Expenditure on:
Charitable Activities:
Grants Paid 4 21,906 - 21,906 22,850
Governance Costs:
Management & Administration 5 1,106 - 1,106 1,280
--------- --------- --------- ---------
Total Expenditure 23,012 - 23,012 24,130
--------- --------- --------- ---------
Net Income before Transfers 3,782 99,600 103,382 66,260
Transfers between funds - - - -
--------- --------- --------- ---------
Net Income/(Expenditure)
before Other Recognised Gains and Losses 3,782 99,600 103,382 66,260
Realised Gains/(Losses) on Investment Assets 7 - - - -
Unrealised Gains/(Losses) on Investment Assets 7 - 25,188 25,188 (80,714)
--------- --------- --------- ---------
- 25,188 25,188 (80,714)
--------- --------- --------- ---------
Net Movement in Funds 3,782 124,788 128,570 (14,454)
Fund Balance brought forward 21,607 771,898 793,505 807,959
--------- --------- --------- ---------
Fund Balance carried forward 25,389 896,686 922,075 793,505
====== ====== ====== ======

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 FOUNDATION

BALANCE SHEET as at 31 December 2023

BALANCE SHEET
as at 31 December 2023
2023 2022
Notes £ £
Fixed Assets :
Investments 6 773,465 698,182
--------- ---------
Current Assets :
Debtors 78,745 4,762
Cash at Bank 70,426 91,704
--------- ---------
149,171 96,466
Creditors: Amounts falling due within one year :
Accruals (561) (1,143)
--------- ---------
Net Current Assets 148,610 95,323
--------- ---------
Total Assets less Current Liabilities 922,075 793,505
====== ======
Endowment Funds :
Balance at start 771,898 786,069
Net Movement in Fund for year 124,788 (14,171)
--------- ---------
Balance at end 896,686 771,898
--------- ---------
Unrestricted Funds :
Balance at start 21,607 21,890
Net Movement in Fund for year 3,782 (283)
--------- ---------
Balance at end 25,389 21,607
--------- ---------
Total Foundation Funds 922,075 793,505
====== ======
Approved by the Board of Trustees on 31 May 2024 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 FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023

1. Accounting Policies

a) General Information and Basis of Preparation

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

The Foundation 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 Foundation 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 Foundation and which have not been designated for other purposes. The funds are made up of the annual income from the Foundation's investments less the grants made to beneficiaries and the expenses of running the Foundation. 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 Foundation, principally investments. The funds are made up of the donations from the donor, the realised and unrealised gains and losses of the Foundation'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 Foundation 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 Foundation 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 Foundation 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 Foundation 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 when the Foundation’s right to receive payment is established.

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THE CHARLES GODWIN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 (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 Foundation 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/loss is taken to be the disposal proceeds less the market value at the start of the period. This realised gain/loss 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 (or loss) is deducted (or added) (because it is now realised) from the unrealised gains/losses brought forward (as shown in the Reconciliation of Movements in Unrealised Gains on Investment Assets (note 7). This part of the realised gain (or loss) is calculated by taking the cost of the shares disposed of on a first-in-firstout 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 Foundation to be able to continue as a going concern.

2. Donations Received 2023 2022
£ £
The donations received were all from the donor (Mr C R Godwin). They were all quoted company
shares listed on the London Stock Exchange. Following acceptance of the gift from the Trustees,
the shares were immediately sold at their request. The proceeds of sale were as follows:
99,600 66,543
====== ======

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THE CHARLES GODWIN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 (continued)

3. Investment Income 2023 2022
£ £
Dividends Received 25,668 23,694
Interest Received 1,126 153
--------- ---------
26,794 23,847
====== ======
4. Grants Paid 2023 2022
£ £
Age UK 1,000 1,000
Blind Veterans UK (living in Cumbria) 2,250 1,000
Buttle UK (Poverty Relief for Young People in Cumbria) 600 500
Cartmel Primary School (Playground Project) 1,200 1,178
Cartmel Priory (Ice Cream Sunday) 300 -
Cartmel Village Christmas Decorations 500 -
Cartmel Village Society (Charles II Coat of Arms in Cartmel Priory) 500 -
Combat Stress (Mental Welfare for Ex-Servicemen) 500 500
Cumbria Cerebral Palsy - 480
Cumbrian Community Foundation (Winter Warmth Fund) 1,000 1,000
DEC Ukraine Humanitarian Appeal - 1,000
DEC Turkey-Syria Earthquake Appeal 1,000 -
Derian House Children's Hospice 1,100 1,000
Eden Valley Children's Hospice 1,100 1,000
English Touring Opera - 500
Footsteps to Theatre - 500
Foster Parents Plan - Philippines 1,156 871
Friends of Grange Primary School (Purchase of iPads) 1,200 971
Grange-over-Sands & District Concert Club 500 500
Grange-over-Sands Methodist Church Appeal - 250
Happy Days Children's Charity 2,100 2,000
Harvey Holcroft (Trip to Costa Rica) - 100
Lake District Calvert Trust 500 500
Lifelites 500 500
McMillan Cancer Support 500 500
Médecins Sans Frontières (Ukraine Appeal) - 1,000
Salvation Army, Barrow-in-Furness - 1,000
St Mary's Hospice 2,200 2,000
Starlight Children's Foundation 2,200 2,000
Vision Support Barrow & District - 1,000
(formerly Barrow & Districts Society for the Blind (Younger Generations Project))
--------- ---------
21,906 22,850
====== ======
5. Management & Administration 2023 2022
£ £
Bank Charges 88 66
Legal Fees - 36
Independent Examiner's Fees 550 500
Trustees' Dinner 395 643
Investment Managers' Fees 141 129
Loyalty Bonus from Investment Managers (68) (94)
--------- ---------
1,106 1,280
====== ======

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THE CHARLES GODWIN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 (continued)

6. Investments

Investments
Cost +
Additions in
No. Of year Market Value Market Value Valuation
Units/ Change
Shares 2023 2022 2023 2023
£ £ £ £
Bonds & Fixed Interest Instruments
:
Blackrock Charities UK Bond Fund 94,830.02 173,761 138,387 140,673 2,286
Treasury Gilts 5% 07/03/25 49,025.00 50,050 - 49,412 (638)
--------- --------- --------- ---------
223,811 138,387 190,085 1,648
====== ====== ====== ======
Developed World Equities
:
Collective Investments
:
Artemis Income (see note below) 8,660.03 20,214 21,251 22,448 1,152
Blackrock Charities UK Equity Fund 47,327.64 210,435 326,759 344,767 18,008
F&C Investment Trust 3,762.00 25,011 33,971 36,190 2,219
Invesco Perpetual High Income Fund 2,284.47 9,000 7,157 7,477 320
Scottish Mortgage Investment Trust 4,405.00 25,022 31,844 35,601 3,757
--------- --------- --------- ---------
289,682 420,982 446,483 25,456
====== ====== ====== ======
Individual Companies
:
Associated British Foods plc 214 4,990 3,373 5,055 1,682
Bunzl plc 647 15,009 17,857 20,685 2,828
Diageo plc 573 14,989 20,916 16,399 (4,517)
Jackson Financial Inc 21 318 607 808 201
Legal & General Group plc 7,520 20,013 18,766 18,928 162
M&G plc 858 1,400 1,612 1,918 306
NWF Group plc 10,000 12,650 25,100 22,000 (3,100)
Prudential plc 858 8,283 9,693 7,586 (2,107)
Reckitt Benckiser Group plc 79 4,964 4,546 4,291 (255)
Royal Dutch Shell plc - A shares 437 10,004 10,178 11,222 1,044
Tesco plc 4,912 15,013 11,015 14,240 3,225
Unilever plc 362 14,995 15,150 13,765 (1,385)
--------- --------- --------- ---------
122,628 138,813 136,897 (1,916)
====== ====== ====== ======
Total 636,121 698,182 773,465 25,188
====== ====== ====== ======

Note: Transactions in current year:

a) Sales - nil

b) Purchases - 28.35 units costing £44 in Artemis Income

c) The number of units held and the cost thereof shown above include the additions in the year. The valuation change is calculated by deducting the market value at the start of the year plus the cost of additions in the year from the market value at the end of the year.

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THE CHARLES GODWIN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 (continued)

  1. Reconciliation of Movements in Unrealised Gains/Losses on Investment Assets
Reconciliation of Movements in Unrealised Gains/Losses on Investment Assets
2023 2022
£ £
Unrealised Gains at Start 112,156 192,870
Add Unrealised Losses/(Gains) to Start in respect of disposals in year now realised - -
--------- ---------
112,156 192,870
Net Gains/(Losses) arising on revaluations at year end (net of realised losses/(gains)) 25,188 (80,714)
--------- ---------
Unrealised Gains at End 137,344 112,156
====== ======

  1. Transactions with Trustees and Connected Persons

  2. a) Apart from the donations from one of the Trustees, there were no other transactions with Trustees or connected persons in the year ended 31 December 2023.

  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 Foundation.

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