OpenCharities

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

2024-03-31-accounts

The Charter 600 Charity

Trustee’s Annual Report & Financial Statements 2024

Charity Commission Number 1051146

Trustee’s Annual Report & Financial Statements 2024 | 2

The Charter 600 Charity

CONTENTS

Trustee’s Annual Report for the Year Ended 31 March 2024 4
Introduction, objects and activities for public benefit 4
Grant making 5
A review of performance and achievements 5
Monitoring and Impact 5
Future plans 5
Financial Review 6
Funding Sources 6
Investments 6
Results for the year 7
Risk management 8
Reserves policy 9
Structure, governance and management 10
Our volunteers 11
Related parties 11
Trustee’s responsibilities in relation to the financial statements 11
Independent Auditor’s Report 13
Statement of Financial Activities for the year ended 31 March 2024 18
Balance Sheet as at 31 March 2024 19
Statement of Cash Flows for the year ended 31 March 2024 20
Notes to the financial statements 21
1 Accounting Policies 21
2 Income 23
3 Expenditure 24

Trustee’s Annual Report & Financial Statements 2024 | 3

The Charter 600 Charity

4 Quoted Investments 25
5 Debtors 26
6 Creditors: Amounts Falling Due Within One Year 27
7 Grant Commitments 27
8 Related Parties and Connected Charities 27
9 Reconciliation of Net Income to Net Cash Flow from Operating Activities 28
10 Grants 28
Legal & Administrative Information 29

Trustee’s Annual Report & Financial Statements 2024 | 4

The Charter 600 Charity

Trustee’s Annual Report for the Year Ended 31 March 2024

The Mercers’ Company as the Trustee of The Charter 600 Charity (the Charity) presents its Annual Report and Audited Financial Statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity’s Governing Document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Introduction, objects and activities for public benefit

The Charity was founded by the Trustee in 1994 to commemorate the 600th anniversary of the Mercers’ Company’s first Royal Charter. It was intended that it should be a modern day benefaction to which current and future members of the Mercers’ Company would be encouraged to make donations, the income from which would be used for charitable purposes.

The Charity's principal object is to apply the income of the Trust Fund to such charities or for such charitable purposes in such shares and proportions and generally in such manner in all respects as the Trustee shall in its discretion decide.

The Trustee confirms that it has complied with its duty under Section 17 Charities Act 2011 to have due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives, in planning future activities and in setting the grant making policy for the year.

Trustee’s Annual Report & Financial Statements 2024 | 5

The Charter 600 Charity

Grant making

The Charity is one of several charities that contributes to the people-based Philanthropy Framework co-ordinated by the Trustee. The Charity contributes to this framework through the Members’ Philanthropy programme by making a small number of grants known as the Charter 600 Charity Awards. The Charity utilises the income from its investments for grant making.

A review of performance and achievements

In 2023/24 the Charity made two grants totalling £45,000. Details of the recipients, which are both based in England, are provided below.

Monitoring and Impact

The Charity monitors each of the grants awarded through progress reports as well as other material supplied by grantees such as videos and external impact reports.

During the year, the recipients of the 2022 Awards made short films to showcase the work undertaken and its impact.

Future plans

The Trustee is currently reviewing how it administers the Charity’s grantmaking. It is anticipated that the new model of grant making will start in 2025/26.

Trustee’s Annual Report & Financial Statements 2024 | 6

The Charter 600 Charity

Financial Review

Funding Sources

The Charity generates income primarily from its own sources through:


2024
2024		 2023
£ £
Donations, legacies & events income 39,056 44,771
Stock market investments 60,766 56,221
Interest 7,027 2,024

Donations, legacies & events income are generated from regular giving from individuals via standing order, sponsored events, one-off donations by individuals and events held by the Trustee to fundraise for the Charity.

Investments

Listed investments

There were total gains of £110,827 on stock market investments during the year (2023 losses: £103,320). There was a change of investment managers from Rathbone Brothers to Sarasin & Partners, who took over the management of the funds in August 2023. With the change in investment managers, the new comparators for the funds are only available since August 2023.

Fund Return Primary Comparator Secondary Comparator
Investment Fund (CPI+4.0%) (Composite)
General Investment 6.9% 4.3% 11.1%
Fund

The portfolio produced a total return, after fees, of 6.9% since inception to 31 March 2024, ahead of the CPI +4% target return of 4.3%. Strong returns were seen in major asset classes, especially equities, driven by large US technology companies. Global inflation is decreasing towards the target level, and interest rate cuts are anticipated in the UK and the US later this year.

£33,429 was transferred into the investment fund in April 2024.

The Trustee is monitoring the performance of the investments.

Trustee’s Annual Report & Financial Statements 2024 | 7

The Charter 600 Charity

Results for the year

Total income for the year was £106,849 (2023: £103,016); total expenditure for the year was £51,885 (2023: £57,943) and net gains on investments were £110,827 (2023 losses: £103,320) resulting in a net surplus for the year of £165,791 (2023 deficit: £58,247).

Financial position

Net assets at the end of the year were £2,441,624 (2023: £2,275,833). These are unrestricted funds.

Fundraising

The Charity has three fundraising streams:

During the year the number of regular donors decreased to 79 (2023: 83). No fundraising events for the Charity were held during the year.

Investment policy

In accordance with the Scheme, the Trustee has the power to invest in such stocks, shares, and property as appropriate to meet the objectives of the Charity.

The investment policy was fully reviewed during the year, alongside the appointment of the new investment advisor. The policy reflects the need to generate a sufficient financial return for the charity to fulfil its objectives, with an appropriate time horizon, while managing risk and reflecting the charities’ stance on ethical investments.

The fund is an income generating portfolio and capital cannot be used to supplement income. The portfolio is managed on a balanced risk approach for income and capital growth.

The investment performance of the investments is compared against relevant benchmarks (see Financial Review above).

The Charity has a policy of responsible investment, positively screening to invest in companies that can demonstrate socially responsible values and sustainable growth, and negatively screening companies or sectors that are not in line with the charitable objects and peoplefocused strategy. As such, the following areas are excluded from its investments:

The Trustee is satisfied that its policy and objectives are being met.

Trustee’s Annual Report & Financial Statements 2024 | 8

The Charter 600 Charity

Risk management

The Trustee acknowledges its responsibility for the management of risks faced by the Charity. A review is undertaken regularly by the Trustee to identify, assess and mitigate those risks.

The Trustee, in considering the governance, management, operational, financial and environmental risks is satisfied that there is no material exposure and that there are appropriate procedures in place to mitigate such risks.

The Trustee has agreed clear lines of delegation and authority and the Trustee and its staff are involved in the recognition of risk in all their activities.

The principal risks faced by the Charity are:

The principal risks faced by the Charity are:
Risk Mitigation
Financial Risk - loss of asset value and
investment income		 Regular review of valuation by Trustee’s
executive team and where needed
reforecasting of budgets
Financial Risk – fall in donation/legacy income When the new model of grant making is
launched, there will be a new focus on building
donations to both the Charity and its
grantee(s).

Trustee’s Annual Report & Financial Statements 2024 | 9

The Charter 600 Charity

Reserves policy

The reserves policy was reviewed by the Trustee during the year and the policy was developed further to build upon the objectives, responsibilities, risk management, liquidity, and reporting and monitoring processes for managing the reserves.

The primary reasons for holding the reserves for the Charity is to ensure:

The reserves of the Charity comprise the unrestricted funds and amounted to £2,441,624 in 2024 (2023: £2,275,833). Of these reserves £2,242,675 is currently designated as investment funds to generate income and growth.

Further amounts are carried forward with the intention of:

This results in excess free reserves of £148,949 which the Trustee has plans to utilise for grant making in future years. The Trustee reviews the policy annually.

Trustee’s Annual Report & Financial Statements 2024 | 10

The Charter 600 Charity

Structure, governance and management

The Wardens and Commonalty of the Mystery of Mercers of the City of London (more commonly known as The Mercers' Company), which is a body corporate formed by Royal Charter in 1394, is the Trustee of the Charity and is the controlling party. The Mercers' Company’s governing body is the Court of Assistants. The Master Mercer was NAH Fenwick until July 2023, PLR Lane from July 2023 and Dr DGM Powell from July 2024. The Clerk to the Mercers’ Company is RM Abernethy.

The Mercers’ Company acts as trustee for several charities and has established a governance committee for each charity. The members of the Charity’s Governance Committee are:

Ms AES Hohler (Chairman) Mr FBR Wathen (to 31 August 2023)

Mr BJ Parkinson Mr A Sedgwick (from 1 September 2023)

The Charter 600 Charity Governance Committee reviewed the Charity’s reserves policy in 2024.

The Charity’s Governance Committee also delegated certain matters to a number of the Trustee’s specialist committees:

Trustee’s specialist committees:
Function Delegated Body
Grant making and fundraising Members’ Philanthropy Committee
Oversight of investment management Investment Sub-Committee
Overview of risks and financial management
procedures		 Audit Committee

The Charity is supported by the staff of the Mercers’ Company, who are appropriately trained and qualified. Administrative services are provided by the Trustee under a service agreement. The following members of the Mercers’ Company’s senior management are involved in the provision of services:

Mr RM Abernethy (Clerk to the Mercers’ Company)

Ms SMA Hedley-Dent (Deputy Clerk to The Mercers’ Company)

Mr J Christie (Finance Director)

Trustee’s Annual Report & Financial Statements 2024 | 11

The Charter 600 Charity

The Standard & Appointments Committee meets on a regular basis to keep the skills and composition of the committees and succession planning under review and, where needed, to recruit new members for their experience, empathy and knowledge in charity matters.

The Trustee applies the principles of the Charity Governance Code so far as is possible given that it is sole corporate trustee. The Trustee undertook a self-assessment against the Charity Governance Code in 2023/24 and identified areas in which it can further improve its practice to reflect the Governance Code principles.

Our volunteers

The Charity relies on members of The Mercers' Company volunteering their time to sit on committees, review grant requests, visit applicants and grantees, and attend events involving beneficiaries. In keeping with recommended practice, an estimate of the numbers of hours that Committees give to the Charity free of charge during the year has been undertaken resulting in approximately 26 hours of voluntary time.

Related parties

The Charity works closely with the Trustee, whose members are the principal donors to the Charity. Details of related parties and connected charities are given in note 8 of the financial statements.

Trustee’s responsibilities in relation to the financial statements

The Trustee is responsible for preparing the Trustee’s Annual 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 and Wales requires the Trustee 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 income and expenditure of the Charity for that year.

In preparing these financial statements, the Trustee is required to:

Trustee’s Annual Report & Financial Statements 2024 | 12

The Charter 600 Charity

The Trustee is 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 and the applicable Charity (Accounts and Reports) Regulations. The Trustee is 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 Trustee is responsible for the maintenance and integrity of the Charity’s financial information included on the Trustee’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Dr DGM Powell Master 14 November 2024

Mr RM Abernethy Clerk to the Mercers’ Company

Trustee’s Annual Report & Financial Statements 2024 | 13

The Charter 600 Charity

Independent Auditor’s Report

TO THE TRUSTEE OF THE CHARTER 600 CHARITY

We have audited the financial statements of The Charter 600 Charity (the ‘Charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the notes to the financial statements which include the principal accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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 Trustee’s 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.

Trustee’s Annual Report & Financial Statements 2024 | 14

The Charter 600 Charity

Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustee’s Annual Report and Financial Statements other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 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 or a material misstatement of the other information. 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

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustee

As explained more fully in the Trustee’s responsibilities statement, the Trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Trustee’s Annual Report & Financial Statements 2024 | 15

The Charter 600 Charity

In preparing the financial statements, the Trustee is 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 Trustee either intends to liquidate the Charity or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Trustee’s Annual Report & Financial Statements 2024 | 16

The Charter 600 Charity

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur. Audit procedures performed by the engagement team included:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustee and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Trustee’s Annual Report & Financial Statements 2024 | 17

The Charter 600 Charity

Use of our report

This report is made solely to the Charity’s Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s Trustee those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

15 November 2024

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

The Charter 600 Charity

Trustee’s Annual Report & Financial Statements 2024 | 18

Statement of Financial Activities for the year ended 31 March 2024

31 March 2024 31 March 2024
31 March 2023
Unrestricted Unrestricted
Unrestricted
Funds Funds
Funds
Notes Notes
£		 £
£
Income
Donations and legacies 39,056 39,056
44,771
Investments 67,793 67,793
58,245
Total income 2 106,849 106,849
103,016
Expenditure
Raising funds
Investment management costs (53) (53)
(6,425)
(53) (53)
(6,425)
Charitable activities (51,832) (51,832)
(51,518)
Total expenditure 3 (51,885) (51,885)
(57,943)
Gains / (losses) on investments 4 110,827 110,827
(103,320)
Net income / (expenditure) and
net movement in funds		 165,791 165,791
(58,247)
Fund balances brought forward at 1 April 2,275,833 2,275,833
2,334,080
Fund balances carried forward at 31 March 2,441,624 2,441,624
2,275,833

All of the Charity's financial activities are derived from continuing operations. There are no recognised gains or losses other than those disclosed above.

Trustee’s Annual Report & Financial Statements 2024 | 19

The Charter 600 Charity

Balance Sheet as at 31 March 2024

31 March 2024
31 March 2023
Notes
£
£
£
£
~~EE~~		 31 March 2024
31 March 2023
Notes
£
£
£
£
~~EE~~		 31 March 2024
31 March 2023
Notes
£
£
£
£
~~EE~~		 31 March 2024
31 March 2023
Notes
£
£
£
£
~~EE~~
Fixed assets
Investments 4 2,242,675 2,242,675
2,131,786
Current assets
Debtors 5 4,271 3,013
Cash at bank and in hand 197,490 144,307
Total current assets 201,761 147,320
Creditors: amounts falling due within one 6 (2,812) (3,273)
year
Net current assets 198,949 198,949
144,047
Total net assets 2,441,624 2,441,624
2,275,833
The funds of the Charity:
Unrestricted income funds 2,441,624 2,275,833
Total charity funds 2,441,624 2,441,624
2,275,833

The attached notes on pages 21 to 29 form an integral part of these financial statements. The financial statements on pages 18 to 29 were approved by the Trustee on 14 November 2024 and signed on its behalf by:

Dr DGM Powell Master 14 November 2024

Mr RM Abernethy Clerk to the Mercers’ Company

Trustee’s Annual Report & Financial Statements 2024 | 20

The Charter 600 Charity

Statement of Cash Flows for the year ended 31 March 2024

2024 2024
2023
Note £ £
£
Cash flows from operating activities:
Net cash used in operating activities 9 (17,115) (17,115)
(8,836)
Cash flows from investing activities:
Interest received 7,027 7,027
2,024
Dividends received 63,333 63,333
54,978
Purchase of quoted investments (2,205,008) (2,205,008)
(471,696)
Decrease/(increase) in cash held by investment managers 21,242 21,242
(23,514)
Proceeds from the sale of quoted investments 2,183,704 2,183,704
465,701
Net cash provided by investing activities 70,298 70,298
27,493
Change in cash and cash equivalents in the financial year 53,183 53,183
18,657
Cash and cash equivalents at the beginning of the financial Cash and cash equivalents at the beginning of the financial
year 144,307 144,307
125,650
Cash and cash equivalents at the end of the financial year 9 197,490 197,490
144,307

Trustee’s Annual Report & Financial Statements 2024 | 21

The Charter 600 Charity

Notes to the financial statements

1 Accounting Policies

ACCOUNTING BASIS

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice for charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (‘SORP (FRS 102)’), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the SORP (FRS 102) rather than the previous withdrawn version which it replaced.

The Charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

GOING CONCERN

The Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern and the financial statements of the charity have been prepared on that basis as they do not intend to liquidate the charity or to cease its operations and have concluded that the charity’s financial position means that this is realistic.

In making this assessment, the Trustee has considered the charity’s financial position, the value of investment assets held, future income and investment return levels, expenditure requirements and the liquidity of the charity, considering the cost-of-living crisis, inflationary pressures and changing economic environment, and the risks faced by the charity.

The Trustee is satisfied that the charity could absorb significant changes in investment value with no impact on its ability to continue as a going concern.

They have also concluded that there are no material uncertainties that could have cast significant doubt over the ability to continue as a going concern. A rolling annual review of the charity’s detailed forecast financial position over a 5-year period is carried out.

For these reasons, the Trustee continues to adopt a going concern basis for the preparation of the financial statements.

Trustee’s Annual Report & Financial Statements 2024 | 22

The Charter 600 Charity

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY

There are no significant estimates or judgements used in the preparation of the financial statements.

INCOME

All income, comprising donations and legacies, income from events and dividends from investments is reported on an accruals basis when the Charity has entitlement, receipt is probable and the amount can be measured with sufficient reliability. Income relating to a subsequent financial period is carried forward as a creditor in the balance sheet and shown as deferred income. Event income is recognised when the event occurs.

EXPENDITURE

All expenditure is included on an accruals basis and is recognised as soon as there is a legal or constructive obligation committing the Charity to it, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is included with the underlying expenses and charged to the Statement of Financial Activities (SOFA) as incurred. Support costs relate to staff time and facility costs incurred by The Mercers' Company on behalf of the Charity and are allocated to the Charity on an accruals basis. Support costs have been allocated between activities based on estimated breakdowns of staff time and grant making activity. This includes time spent on the governance arrangements relating to the general running of the Charity.

GRANTS

Grants payable are charged in the year when the offer is conveyed to the recipient except in 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.

INVESTMENT GAINS AND LOSSES

Unrealised gains and losses for the year reflect the movement in market values. Realised gains and losses represent the difference between proceeds on disposal and the market value brought forward (or cost if acquired in the year). Unrealised and realised investment gains or losses are shown net on the SOFA.

INVESTMENTS

Investments are stated at their market value at the balance sheet date. Cash held by investment managers is recognised as part of investments.

TAXATION

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes. Accordingly, no provision is made for current or deferred taxation.

Trustee’s Annual Report & Financial Statements 2024 | 23

The Charter 600 Charity

FUNDS

The Charity has one type of fund:

FINANCIAL INSTRUMENTS

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, except for investments which are measured at fair value.

2 Income

Analysis of donations and legacies income:

Analysis of donations and legacies income:
2024 2023
£ £
Regular giving schemes: Give as You Earn, Standing Order Scheme 33,384 33,120
Donations from The Mercers’ Company 3,859 4,188
Other one off donations from individuals 1,813 7,463
39,056 44,771

Investment income is generated from the General Investment Fund and bank interest.

Trustee’s Annual Report & Financial Statements 2024 | 24

The Charter 600 Charity

3 Expenditure

a) Analysis of total expenditure:

a) Analysis of total expenditure:
Governance Other
Grant Grant
& Support		 direct Total Total
Further making making
costs		 costs 2024 2023
notes £ £
£		 £ £ £
Investment management costs - -
53		 - 53 6,425
Charitable activities 10 45,000 45,000
6,832		 - 51,832 51,518
45,000 45,000
6,885		 - 51,885 57,943
Governance Other
Grant Grant
& Support		 direct Total
Further making making
costs		 costs 2023
notes £ £
£		 £ £
Investment management costs - -
112		 6,313 6,425
Charitable activities 10 45,000 45,000
6,518		 - 51,518
45,000 45,000
6,630		 6,313 57,943

b) Analysis of governance and support costs

Charitable
Raising funds activities Total Total
Basis of 2024 2023
apportionment £ £
£		 £ £
Staff costs Staff time 53 53
2,368		 2,421 2,462
Office administration Staff time - -
216		 216 216
IT & telephone services IT & telephone services
Staff time		 - -
480		 480 480
Offices & meeting Staff time
facilities - -
1,012		 1,012 1,012
Audit fees Expenditure - -
2,756		 2,756 2,460
53 53
6,832		 6,885 6,630

Trustee’s Annual Report & Financial Statements 2024 | 25

The Charter 600 Charity

Charitable
Raising funds activities Total
Basis of 2023
apportionment £ £ £
Staff costs Staff time 112 2,350 2,462
Office administration Staff time - 216 216
IT & telephone services Staff time - 480 480
Offices & meeting Staff time
facilities - 1,012 1.012
Audit fees Expenditure - 2,460 2,460
112 6,518 6,630

The Charity has no employees (2023: none). The Mercers’ Company, by way of a services agreement, provides staff to the Charity. The Trustee has not received any emoluments or reimbursements during the year for acting as a Trustee (2023: nil). £2,756 (including irrecoverable VAT) (2023: £2,460) was charged to the SOFA for audit fees.

4 Quoted Investments

The changes during the year are as follows:

1 April Movement Revaluation 31 March
2023 Purchases Sales in cash gains 2024
£ £ £ £ £ £
General
Investment Fund		 2,131,786 2,205,008 (2,218,353) (21,242) 145,476 2,242,675
Historical cost 1,800,207 2,102,344

Trustee’s Annual Report & Financial Statements 2024 | 26

The Charter 600 Charity

The General Investment Fund investments, managed by Rathbone Brothers Plc until 31 July 2023, and then Sarasin & Partners from 1 August 2023, had the following investment asset allocation at the end of the year:

31 March
2024
£’000 %
UK Equities 687 30.6
Overseas Equities 933 41.6
Fixed Interest 392 17.5
Alternatives 150 6.7
Cash 81 3.6
Total 2,243 100.0

Holdings of more than 5% of total investments in investment portfolios were as follows:

2024
£’000 % of fund
Sarasin Global Dividend Fund 1,662 74.1%
Sarasin Responsible Strategic Bond Fund 390 17.4%

Net investment gains during the year totalled £110,8276 (2023 losses: £103,320). This includes both realised and unrealised gains. All investments are held in the United Kingdom.

5 Debtors

Debtors are made up as follows:

Debtors are made up as follows:
2024 2023
£ £
Tax reclaimable 412 446
Dividends receivable - 2,567
Other 3,859 -
4,271 3,013

Trustee’s Annual Report & Financial Statements 2024 | 27

The Charter 600 Charity

6 Creditors: Amounts Falling Due Within One Year

Creditors are made up as follows:

Creditors are made up as follows:
2024 2023
£ £
Audit Fee 2,812 2,460
Other Creditors - 813
2,812 3,273

7 Grant Commitments

The Charity had no commitments at the end of the year in respect of charitable grants (2023: none).

8 Related Parties and Connected Charities

The following related parties and charities have common management and are therefore regarded as connected:

Becket House Limited (dormant) Charity of Sir Richard Whittington St Paul's Schools Foundation Earl of Northampton's Charity Lady Campden’s Money Legacy for Loans Longacre Estates Limited (dormant) Maiden Trading Limited (dormant) Mercers' Company Educational Trust Fund (dormant) Mercers’ Company Housing Association Mercers’ School Memorial Trust (incorporating The Merrett Bequest) MSM Trust (dormant) Old Mercers’ Benevolent Fund The Mercers' Charitable Foundation The Mercers' Company

The principal address of the above entities is:

6 Frederick’s Place London EC2R 8AB

The Mercers' Company made cash donations of £3,859 in 2023 (2023: 4,188). The Mercers' Company allocated overheads of £3,860 (2023: £4,188) to the Charity in the year. There were no other transactions with related parties requiring disclosure (2023: none).

Trustee’s Annual Report & Financial Statements 2024 | 28

The Charter 600 Charity

9 Reconciliation of Net Income to Net Cash Flow from Operating Activities

2024 2023
£ £
Net income/(expenditure) for the reporting year (as per statement of
financial activities) 165,791 (58,247)
Adjustments for:
Gains/(losses) on investments (110,827) 103,320
Interest receivable (7,027) (2,024)
Dividends receivable (60,766) (56,221)
Change in debtors (3,825) 3,343
Change in creditors (461) 993
Net cash used in operating activities Net cash used in operating activities (17,115) (8,836)

ANALYSIS OF CASH AND CASH EQUIVALENTS

ANALYSIS OF CASH AND CASH EQUIVALENTS
2024 2024
2023
£ £
£
Cash at bank and in hand 197,490 197,490
144,308
Total cash and cash equivalents 197,490 197,490
144,308

10 Grants

Listed below are all charitable grants made during the year:

2024 2024
2023
£ £
£
Dogs for Autism 30,000 30,000
-
Firefly International 15,000 15,000
-
WizeUp Financial Education - -
15,000
The Huracan Foundation - -
15,000
Free to be Kids - -
15,000
Total 45,000 45,000
45,000

Trustee’s Annual Report & Financial Statements 2024 | 29

The Charter 600 Charity

Legal & Administrative Information

LEGAL STATUS

BANKERS

The Charter 600 Charity was established in 1994 to commemorate the 600th anniversaries of both the grant of The Mercers' Company's first Charter in 1394 and of the first Mastership of Sir Richard Whittington in 1395.

The Charity operates under a Trust Deed dated 27 October 1995. The registered charity number is 1051146.

Barclays Bank PLC 1 Churchill Place London E14 5HP

INVESTMENT MANAGERS Sarasin & Partners LLP Juxon House 100 St. Paul’s Churchyard London EC4M 8BU

PRINCIPAL ADDRESS 6 Frederick’s Place London EC2R 8AB

INDEPENDENT AUDITOR Buzzacott LLP 130 Wood Street London EC2V 6DL