## **The Elizabeth Cayzer Charitable Trust** **Registered Charity: 1059265** **Report and Financial Statements** Year ended 31 March 2022 ## **The Elizabeth Cayzer Charitable Trust** ## **Contents** ||**Page**| |---|---| |Report of the trustees|1| |Independent examiner’s report|5| |Statement of financial activities|6| |Balance sheet|7| |Statement of cash flows|8| |Notes to the financial statements|9| ## **The Elizabeth Cayzer Charitable Trust** ## **Report of the trustees** The trustees present their annual report and the financial statements of the charity for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011, and the 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 published on 2 October 2019. ## **Reference and administrative information** |Address:|Address:|||Cayzer House| |---|---|---|---|---| |||||30 Buckingham Gate| |||||London SW1E 6NN| |Governed by:||||Irrevocable Deed of Appointment dated| |||||1 November 1996| |Trustees:||||The Hon. Mrs Elizabeth Gilmour| |||||Mrs Diana Lloyd_(until 26 November 2021)_| |||||Mr George Ponsonby| |||||Mr Dominic Gibbs| |||||Mrs Sonia Barry| |Administrator:||||The Cayzer Trust Company Ltd| |||||Cayzer House| |||||30 Buckingham Gate| |||||London SW1E 6NN| |Solicitors:||||BDB Pitmans LLP| |||||One Bartholomew Close| |||||London EC1A 7BL| |Investment managers:||||Smith & Williamson Investment Management Ltd| |||||25 Moorgate| |||||London| |||||EC2R 6AY| |||||Troy Asset Management Ltd| |||||33 Davies Street| |||||London| |||||W1K 4BP| |Independent examiner:||||S J Wakefield ACA| |||||Dixon Wilson Chartered Accountants| |||||22 Chancery Lane| |||||London| |||||WC2A 1LS| 1 1 ## **The Elizabeth Cayzer Charitable Trust** ## **Report of the trustees (continued)** ## **Structure, governance, and management** The trust was established by the Settlor, The Hon. Mrs Gilmour, through an irrevocable Deed of Appointment dated 1 November 1996. The charity was registered by the Charity Commissioners for England and Wales on 19 November 1996 under charity number 1059265. The trust does not actively fund-raise, and it is not the intention of the trustees to seek or accept donations other than from the Settlor, although the governing document allows them to do so. The trustees are prohibited, under the trust deed, from undertaking any permanent trading activities to raise funds for the charity. The trustees seek to continue the philanthropic work desired by the Settlor through the careful stewardship of the trust’s existing resources. All donations to the charity since its inception have been made by the Settlor. The power of appointing new trustees is vested in the Settlor during her lifetime. New trustees may be appointed at any time, either by way of replacement or addition. The Hon. Mrs Gilmour and Mrs Diana Lloyd were each appointed on 1 November 1996, Mr Dominic Gibbs was appointed on 18 January 2008, Mrs Sonia Barry was appointed on 4 January 2021, and Mr George Ponsonby was appointed on 25 February 2021. All served throughout the year ended 31 March 2022, with the exception of Mrs Diana Lloyd, who died in November 2021. The trustees agree the broad strategy and areas of activity for the trust, including grant-making, investment, risk management, reserves, and performance. The day-to-day administration of grants and the processing and handling of applications prior to consideration is delegated to The Hon. Mrs Gilmour, and the financial affairs of the charity are handled by the administrator. ## **Objectives and activities for the public benefit** The trust deed gives the trustees the power to apply the income and all or such part or parts of the capital for or towards such charitable purposes and to make donations to such charitable institutions as the trustees in their absolute discretion think fit. In formulating policy, the trustees have taken into account the wishes of the Settlor, which are that the assets of the charity should be used to support and promote the work of museums, galleries, and the architectural heritage of the British Isles. The trustees identify projects and organisations they wish to support and that benefit the public. Projects usually fall within one of the following categories: - exhibitions which otherwise would not be mounted; - exhibition catalogues; - academic conferences; - conservation of works of art, as well as of buildings of architectural and historic interest, and restoration projects associated with them; - support of young curators, conservators, and heritage building apprentices; and - archives and the preservation of artefacts. They do not consider grants to people or organisations who apply speculatively. The trust also has a policy of not responding to any correspondence unless it relates to grants it has agreed to make or to the general management of the trust. The trustees, having regard to the Public Benefit Guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purpose and activities of the charity satisfy the requirements of the public benefit test set out in section 4 of the same Act. ## **Achievements and performance** Significant grants unconditionally pledged during the year were as follows: - Wentworth Woodhouse Preservation Trust – restoration of six 19[th] century lamp standards; - The National Gallery – contribution towards the construction of the _One Gallery Accommodation Hub_ staff quarters at the museum; - The National Portrait Gallery – restoration of mosaics; - The Wallace Collection – catalogues and audio guides for exhibitions at the museum; and - The Landmark Trust – restoration of Tudor wall paintings at Calverley Old Hall. 2 2 ## **The Elizabeth Cayzer Charitable Trust** ## **Report of the trustees (continued)** ## **Investment policy and performance** The charity’s investment powers are prescribed in the trust deed. The deed gives the trustees very wide powers of investment and the investment policy of preserving the real value of the trust fund falls within them. The trustees have set a policy that the expendable endowment should be invested to maximise the total return (capital growth plus income) with a low to medium level of risk. The income from investments for the year was £163,359, closely in line with the prior year figure of £162,235. Income generated by the expendable endowment is accrued to the unrestricted fund. The trustees have the power to spend the expendable endowment as necessary. No transfers were made during the financial year. Details of the charity’s fixed asset investments are described in note 4 to the financial statements. ## _Smith & Williamson portfolio_ The market value of the portfolio of stocks managed by Smith & Williamson rose over the year by 10.2% (2021 – 19.1%), due to the general strong performance of investment markets in the year. This compares with an increase of 9.3% (2021 – 23.3%) in the value of the FTSE All Share Index. The portfolio produced an average income return of 2.3% (2021 – 2.6%). At the year-end, the portfolio managed by Smith & Williamson comprised 39.4% (2021 – 41.0%) of the total capital assets of the charity, and includes both equities and UK and foreign interest-bearing securities. ## _Caledonia Investments Plc shareholding_ At 31 March 2022, the investment in Caledonia represented 29.0% (2021 – 24.8%) of the total capital assets of the charity. Caledonia reported very strong performance for the year. It reports its performance over a long timescale given its longer-term investment strategy. The Caledonia Net Asset Value (NAV) total return (annualised) over 10 years was 12.2% (2021 – 8.6%), well above the FTSE All share Total Return over the same period of 7.2% (2021 – 6.0%). The company continues to pay an increased dividend each year, and paid a special dividend to shareholders in August 2022, after the charity’s year-end. ## _Troy Asset Management - Trojan Income Fund_ Over the last twelve months the Trojan Income Fund’s unit market price has risen by 6.4% (2021 – 7.7%), and generated an income return of 2.7% (2021 – 2.9%). At the year end, the market value of the funds in the Troy Asset Management Trojan Income Fund comprised 23.8% (2021 – 25.7%) of the total capital assets of the charity. ## **Risk management** The trustees annually review the risks facing the charity. The charity’s risks mainly relate to investment management and these have been ameliorated by diversified portfolio management. Smith & Williamson Investment Management Limited were appointed on 14 February 2007, and actively manage a diversified portfolio of UK and foreign equities and funds along with UK and foreign interestbearing securities. Further investments were later made into managed funds, thereby introducing another investment manager. The portfolio performance is reviewed at least annually by the trustees. Regular meetings are held with the portfolio manager at Smith and Williamson. 3 3 The Elizabeth Cayzer Charltable Trust Report of the trustees (contlnued) R￿•by•S pollcy At 31 March 2022, the trustees carried fon¥ard a resetve of £286,23812021 - £364,087) on the unrestrlcted fund and a reserve of £8,344,20912021 - £7,279,444) on the expendable endowment fund. The expendable endowment fund is significant enough to wear the up5 and downs of the markets, and the trust ha5 very low governance and svpport costs, e3sily maintaining free reserve5 to cover unrestricted charltsble expenditure. Grants are made on a case by case basls. allowinB the trustees to be flexible and adapt grant levels as necessary. ststernent of trustees, respon$lbllltles The trustees are re5pon5ible for preparin8 a tru5tees' annual report and financial statements In accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generallv Accepted Accountin8 Practice). The law applicable to charities In England and Wales requlres the charlty trustees to prepare financial statements for each year whlch 8lve a true and fair view of the state of affairs of the charity and of the incoming resources and applicatlon of resources of the charityforthat period. In preparingthe flnantlal ststements, the trustees are iequlred to,, selett surtable accountln8 pollcSes and iher? apply them eonsistentty,. observe the methods and prlntlples in the appllcable Charllles 50RP: rnake judgements and estimates that are reasonable and prudent.. state whether applicable accounting standard5 hzve been followed. subjert to any departures that must be disclosed and explained in the financial statemenis,. antj prepare the flnantlal statements on a goin8 concern basis unless it is inappropriate to presume that the charity will continue in operation. The tru5tee5 are re5pon5ible for keepin¥ proper accounting record5 that disclose wlth reasonable accuracy at any time the financial position of thecharity and to enablethem to ensure that the financial statements comply with the Charities Act 2011, the applicable Charitles IAtcounts and Reports) Regulations, and the provisions of the trust deed. They are also responsible for5afe8u3rding the assets of the charity and for taking reasonable Steps for the prevention and detectioft of fraud and other Approved by the Trullees on 20 &n )Z3 and signed on their behall bv The Hon. Mrs Gilmour Trustee Mrs Sonia 8ariy Trustee ## **The Elizabeth Cayzer Charitable Trust** ## **Independent examiner’s report to the trustees of The Elizabeth Cayzer Charitable Trust (‘the Trust’)** I report to the trustees on my examination of the accounts of the Trust for the year ended 31 March 2022. ## **Responsibilities and basis of report** As the charity trustees of the trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that an audit is not required for this year under charity law and that an independent examination is needed. I report in respect of my examination of the trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement. ## **Independent examiner’s statement** I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 20 January 2023 S J WAKEFIELD ACA Dixon Wilson 22 Chancery Lane London WC2A 1LS 5 5 ## **The Elizabeth Cayzer Charitable Trust** ## **Statement of financial activities for the year to 31 March 2022** |**Note**
**Income and endowments**
_Donations and legacies_
Investment income
2
**Total income**
**Expenditure**
_Costs of raising funds_
Investment management costs
_Expenditure on charitable activities_
Charitable activities
3
**Total expenditure**
Net gains on investments
4
**Net (expenditure) / income and**
**net movement in funds**
_Reconciliation of funds_
Total funds brought forward
at 1 April
7
**Total funds carried forward**
**at 31 March**
7|**Unrestricted**
**funds**
**£**
163,201
163,201
—
241,050
241,050
—
(77,849)
364,087
286,238|**Expendable**
**endowment**
**funds**
**£**
158
158
12,712
—
12,712
1,077,319
1,064,765
7,279,444
8,344,209|**Total**
**2022**
**£**
163,359
163,359
12,712
241,050
253,762
1,077,319
986,916
7,643,531
8,630,447|**Unrestricted**
**funds**
**£**
_162,252_
_162,252_
_—_
_150,000_
_150,000_
_—_
_12,252_
_351,835_
_364,087_|**Expendable**
**endowment**
**funds**
**£**
_(17)_
_(17)_
_10,777_
_—_
_10,777_
_787,023_
_776,229_
_6,503,215_
_7,279,444_|**Total**
**2021**
**£**
_162,235_
_162,235_
_10,777_
_150,000_
_160,777_
_787,023_
_788,481_
_6,855,050_
_7,643,531_| |---|---|---|---|---|---|---| All income and expenditure is in respect of continuing activities for the current and the previous year. 9 6 The Elizabeth Cayzer Charitable Trust Balance sheet at 31 March 2022 Expendabl endLvfflbent funds Eypendable Unrestrirted fvnds Total 2022 Uhrtstrlct•d funds Totsl 2021 funds Nott Flxed assrt$ Inve5tment5 7,942,624 7,942,624 6.877,931 6,877,931 7,942,624 7,942.624 6.877.931 6,877.931 Cury•nt 15sots Debtors (ash atbank and in h4nd 72 401.513 72 727.851 326,338 422.287 401,513 823,8t 326,338 401,585 727,923 422,287 401,513 823.8 Credhorsfalllni due within one ye•r 140,ICQI 14e,iOOI 158,2001 Pletcitrrènt assets 286.238 491,585 687,823 361.087 401513 765,6tYI Net8ssets 286,138 8,344,209 8,630.447 364.087 7.279.444 7.643,531 The fuhds ottlbttharity.. Unre5tri£ted fund5 Expendable endowment funds 286.238 286.238 8.344.209 364.087 364.087 7.279,444 8,344.209 7.279.444 Totsl tharitytwts 286.238 8,344,209 ,630,447 364,087 7.279.444 7,643,531 Appr*Md by the Tn)stee5 OTh 20 thnda 2DU and signed onth ir behaw by The Hon. Mrs Gilmour Trust•è Mrs Sonia 8arry ## **The Elizabeth Cayzer Charitable Trust** ## **Statement of cash flows for the year to 31 March 2022** |**Note**
**Net cash used in operating activities**
8
**Cash flows from investing activities**
Interest and dividends
Investment management fees
Proceeds from sale of investments
Purchases of investments
Movement of cash within investment portfolio
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents brought forward
9
**Cash and cash equivalents carried forward**
9|**Total funds**
**2022**
**£**
(259,222)
163,201
(12,712)
158,262
(139,490)
(5,988)
163,273
(95,949)
823,800
727,851|**Total funds**
**2021**
**£**
_(175,755)_
_162,521_
_(13,135)_
_474,848_
_(505,581)_
_43,868_
_162,521_
_(13,234)_
_837,034_
_823,800_| |---|---|---| 11 8 ## **The Elizabeth Cayzer Charitable Trust** ## **Notes to the financial statements for the year to 31 March 2022** ## **1. Accounting policies** ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **Basis of preparation** 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 accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) issued on 2 October 2019 and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102. ## **Going concern** The trustees consider that there are no material uncertainties about the trust's ability to continue as a going concern, and that there are no key assumptions that affect items in the accounts. ## **Funds structure** The charity has an expendable endowment fund created by gifts from the Settlor. The trust deed allows the trustees to accumulate income from this fund as an accretion to capital for a period of 21 years. The trust deed allows this fund to be spent as income or retained as capital at the trustees' discretion. Income arising from the expendable endowment is unrestricted. ## **Income recognition** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount can be measured reliably. Dividends and other income from investments are recognised in the financial statements when the charity is entitled to the income. Income from cash deposits is included on an accruals basis. Gift aid reclaimable on donations to the charity is included with the amount received. ## **Expenditure recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Grants are charged to the statement of financial activities when paid or when a constructive obligation exists, notwithstanding that they may be paid in future accounting periods. Other expenditure is included in the accounts on an accruals basis. ## **Investments** Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing market price. The statement of financial activites includes the net gains and losses arising on revaluation and disposals throughout the year. ## **Irrecoverable VAT** Irrecoverable VAT has been charged against the relevant expenditure. ## **Creditors** Creditors are recognised once the charity has a present obligation resulting from a past event that it is probable will result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. 9 9 ## **The Elizabeth Cayzer Charitable Trust** ## **Notes to the financial statements for the year to 31 March 2022** |**2.**
**Investment income**
UK listed investments
Non-UK listed investments
Interest income
Property income distributions|**2022**
**£**
127,989
30,569
4,801
-
163,359|**2021**
**£**
_128,588_
_26,777_
_6,870_
_-_
_162,235_| |---|---|---| All investment income is unrestricted income in both years, with the exception of net accrued income allowances of £158 (2021 - accrued income charges of £17), which relate to expendable endowment funds. |**3.**
**Analysis of charitable activities (Unrestricted funds)**
_Donations and grants (see also Note 3a)_
Conservation, restoration, and museum capital projects
Archiving and cataloguing
Conferences, exhibitions, and colloquia
_Governance costs_
Accounts preparation and administration fee
Independent examination fee
**Total expenditure on charitable activities**
**Note 3(a) Recipients of institutional grants:**|**2022**
**£**
165,000
21,000
49,950
235,950
4,080
1,020
5,100
241,050|**2021**
**£**
_137,500_
_—_
_6,800_
_144,300_
_4,740_
_960_
_5,700_
_150,000_| |---|---|---| The charity undertakes its charitable activities through grant making and awarded grants to a number of institutions, art galleries, and museums and heritage trusts which are registered UK Charities, in furtherance of its charitable activities. |_Recipients of institutional grants:_
Sir John Soane's Museum
The British Institute of Florence
The Landmark Trust
The National Gallery : One Gallery Accommodation Hub
The National Gallery : research seminars / academic colloquia / workshops
The National Portrait Gallery
The Wallace Collection
Wentworth Woodhouse Preservation Trust|**2022**
**£**
20,000
1,000
25,000
50,000
3,450
25,000
46,500
65,000
235,950|**2021**
**£**
_6,800_
_—_
_—_
_—_
_—_
_—_
_37,500_
_100,000_
_144,300_| |---|---|---| 10 10 ## **The Elizabeth Cayzer Charitable Trust** ## **Notes to the financial statements for the year to 31 March 2022** |**4.**
**Fixed asset investments (Expendable endowment funds)**
**Movement in fixed asset investments:**
Opening market values at 1 April
Additions
Disposal proceeds
Movement in cash
Net gains on revaluation and on disposal
Closing market values at 31 March
**Investments at fair value comprised:**
Equities
Fixed interest stocks
Cash held within the investment portfolio
**Material investments at 31 March at fair value**
Caledonia Investments Plc
Troy Asset Management - Trojan Income Fund
**5.**
**Debtors (Expendable endowment funds)**
Prepayments and accrued income
**6.**
**Creditors falling due within one year (Unrestricted funds)**
Grants pledged
Accruals
**7.**
**The funds of the charity**
**Unrestricted**
Balance at 1 April
Incoming resources
Resources expended
Balance at 31 March
**Expendable endowment**
Balance at 1 April
Incoming resources
Resources expended
Net gains on investment assets
Balance at 31 March|**2022**
**£**
6,877,931
139,648
(158,262)
5,988
1,077,319
7,942,624
7,346,437
573,389
22,798
7,942,624
2,420,794
1,988,585
**2022**
**£**
72
**2022**
**£**
35,000
5,100
40,100
**2022**
**£**
364,087
163,201
(241,050)
286,238
7,279,444
158
(12,712)
1,077,319
8,344,209|**2021**
**£**
_6,104,060_
_505,564_
_(474,848)_
_(43,868)_
_787,023_
_6,877,931_
_6,242,394_
_618,726_
_16,811_
_6,877,931_
_1,808,757_
_1,869,153_
**2021**
**£**
_—_
**2021**
**£**
_52,500_
_5,700_
_58,200_
**2021**
**£**
_351,835_
_162,252_
_(150,000)_
_364,087_
_6,503,215_
_(17)_
_(10,777)_
_787,023_
_7,279,444_| |---|---|---| 11 11 ## **The Elizabeth Cayzer Charitable Trust** ## **Notes to the financial statements for the year to 31 March 2022** ## **8. Reconciliation of net movement in funds to net cash flow from operating activities** |Net movement in funds
Deduct investment income and expenses shown in investing activities
Net gains on investment assets
Increase in debtors
Decrease in creditors
**9.**
**Reconciliation of net debt**
At 1 April (all held in cash)
Cash flows for the year
At 31 March (all held in cash)|**2022**
**£**
986,916
(150,647)
(1,077,319)
(72)
(18,100)
(259,222)
**Total**
**2022**
**£**
823,800
(95,949)
727,851|**2021**
**£**
_788,481_
_(151,458)_
_(787,023)_
_—_
_(25,755)_
_(175,755)_
**Total**
**2021**
**£**
_837,034_
_(13,234)_
_823,800_| |---|---|---| ## **10. Transactions with trustees or connected persons** An administration fee of £4,080 (2021 - £4,740) is payable to a company of which The Hon. Mrs Gilmour, Mr Dominic Gibbs, and Mrs Sonia Barry are directors. No other arrangement, including transactions, contracts, and grants, existed during the accounting period with trustees or connected persons. No trustees or connected persons received remuneration directly or indirectly from the charity during the accounting period nor did the trustees receive reimbursement of any expenses. ## **11. Employees** The trust did not have any employees during the current or previous year. ## **12. Events after the end of the reporting period** After the year-end, on 4 August 2022, Caledonia Investments plc paid a special dividend of 175p per share. This equated to a total special dividend paid to the trust of £119,672. 12 12