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2022-04-05-accounts

THE THREE GUINEAS TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2022

The Peak 5 Wilton Road London SW1V 1AP

THE THREE GUINEAS TRUST

CONTENTS CONTENTS PAGE
1 Legal and Administrative Details 2
2 Report of the Trustees 3-8
3 Independent Auditor’s Report 9-12
4 Statement of Financial Activities 13
5 Balance Sheet 14
6 Statement of Cash Flows 15
7 Notes to the Accounts 16-25

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

LEGAL AND ADMINISTRATIVE

The Three Guineas Trust was established under a Trust Deed dated 21 November 1996 and became a registered charity with the Charity Commission in England and Wales on 9 December 1996 (registration no. 1059652).

Trustees
Registered
Office
Principal
Officers
Bankers
Solicitors
Auditor
Investment
Managers
Objects		 C N Sainsbury (Settlor)
D Wood
D Flynn
The Peak, 5 Wilton Road
London SW1V 1AP
Karen Everett
Chief Executive Officer
Matthew Williams
Executive
Elaine Ponte
Executive
Principal officers are employed part-time
Royal Bank of Scotland
119 - 121 Victoria Street
London
SW1E 6RA
Portrait Solicitors (up to 31 July 2022)
21 Whitefriars Street
London EC4Y 8JJ
BDB Pitmans LLP (as from 1 August 2022)
1 Bartholomew Close
London EC1A 7BL
Sayer Vincent LLP
Invicta House
108 - 114 Golden Lane
London
EC1Y 0TL
Cazenove Capital Management
12 Moorgate
London EC2R 6DA
The objects of the Trust as given in the Trust Deed are for general charitable
purposes.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES

The Trustees present their report and the audited financial statements for the year ended 5 April 2022. Legal and administrative information set out on page 2 forms part of this report. The financial statements comply with current statutory requirements, the Trust deed, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Organisation

The Trust is one of the Sainsbury Family Charitable Trusts which share a common administration. The remuneration of the staff is reviewed by the Trustees on an annual basis taking into account the requirements of their role and performance during the year. From time to time the SFCT Management Committee benchmarks pay levels against the comparable positions in similar organisations.

Trustees are appointed by the Settlor, in consultation with existing Trustees, and are provided with relevant information relating to their responsibilities. The Trustees are responsible for the overall direction and supervision of The Three Guineas Trust; they set the Trust’s strategy, review proposals and approve grants. The Trustees delegate day-to-day operations to the Trust’s Executives.

Trustees are aware of the Charity Governance Code, updated in 2020, which sets out the principles and recommended practice for good governance within the sector. They have reviewed the Trust's governance arrangements against the principles set out in the code. They believe that these arrangements align with the code to an appropriate degree.

The Trust and its Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators.

As we do not approach individuals for the purpose of raising funds, we do not have specific requirements related to fundraising activities, nor do we consider it necessary to design specific procedures to monitor such activities. The income of the Trust is not bound by any regulatory scheme, and the Trust does not consider it necessary to comply with any voluntary code of practice relating to fundraising. We have received no complaints in relation to any fundraising activities.

Scope of Grant-making

The Trustees accept applications for practical projects in the field of autism. Proposals are considered alongside those that result from their own research and contacts with expert individuals and organisations working in this field. The Trustees are keen that schemes supporting autistic adults and young people include them in decision-making.

Trustees also make grants in the field of disability, violence and access to justice. Trustees expect to fund other carefully chosen projects in this field in due course.

Trustees do not generally fund research, especially if this is on autistic people. Grants are not normally made to individuals.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Reserves Policy and Going Concern

In the year under review, there was a transfer from expendable endowment of £1,411,283 (2021: £1,924,943) to clear the deficit on unrestricted funds. Whenever it may be necessary in the future, the Trustees are prepared to fund grant commitments from expendable endowment.

Although some grants have been accrued, others totalling £499,870 (2021: £401,832) have not been provided for in the Statement of Financial Activities as they are due to be paid more than twelve months after the year end. They represent funds earmarked for continued support to existing grant holders where formal commitments have been made but the grant conditions have not been met at the balance sheet date.

The Trustees regularly review cash flow projections for income and expenditure, to ensure that the level of disposable net assets is adequate and that the Trust is in a position to meet all its commitments. As at 5 April 2022, the Trust held total funds of £27.5 million (2021: £26.4 million). The Trustees are not aware of any material uncertainties that would prevent the financial statements from being prepared on a going concern basis.

Investment Powers

The Trust Deed empowers the Trustees to appoint investment advisers who have discretion to invest the funds of the Trust within guidelines established by the Trustees.

Investment Policy and Performance

The Trust’s expendable endowment is invested in funds which comply with guidelines for socially and environmentally responsible investing, in accordance with the conditions of the Settlor under which the assets were gifted to the Trust. The Trustees regularly meet the investment manager to discuss strategy and review performance. The Trustees will continue to monitor performance against relevant indices but do not seek to track any particular index.

During the year to 5 April 2022, the return on the Trust’s investment portfolio was 5.7%, compared to the benchmark of 3.6%.

Risk Assessment

The Trustees have examined the major strategic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts, adequate systems are in place to manage such potential risks as the Trustees have identified. The Trustees continue to be vigilant and to keep processes under review.

Trustees have identified the uncertainty of financial returns to constitute the Trust’s major financial risk. This is mitigated by having a diversified financial portfolio under the management of a major investment house. The Trustees regularly review investment strategy and monitor financial performance.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Another major risk is the misuse of funds by a beneficiary. To mitigate this risk, funds are awarded following a thorough assessment and grants are regularly monitored. Grants made for more than one year are subject to an annual review.

Charity and Public Benefit

Trustees are aware of the Charity Commission guidance on public benefit and confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to it. Trustees consider that the information which follows in this annual report, about the Trust’s aims, activities and individual grants demonstrates the public benefit that arise from its grant-making.

Advisers

In the year under review the Trustees were advised by:

Professor Uta Frith Bethan Rigby John Pring

Future Plans

The Trustees will continue to fund projects that support autistic people and their families. They will also continue to fund projects that give access to justice, and projects that prevent or ameliorate violence against disabled people.

Financial Overview of the Past Year

The Trustees met twice during the year to review grants.

The Settlor made a donation of £1.4 million, including Gift Aid, in the year (2021: £1.6 million), which has been added to Expendable Endowment. The net asset value of the Trust increased from £26.4 million at 5 April 2021 to £27.5 million at 5 April 2022.

The total income allocated to unrestricted funds for the year was £267,957 (2021: £305,704).

During the year the Trustees approved 31 grants totalling £1,556,990, some payable over more than one year. At the end of the year, outstanding grant payments which are not provided for in the accounts amounted to £499,870 (2021: £401,832).

The table below shows grants approved and payments made. Payments made relate to grants approved in this and earlier years.

Autism
Disability, Violence and Access to Justice
General		 Grants Approved Grants Approved Grants Paid Grants Paid
Number £ Number £
23 364,990 35 563,645
8 1,192,000 31 1,212,572
- - 1 5,000
31 1,556,990
67		 1,781,217

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES (CONTINUED )

Grants Approved

Autism - £364,990

A2ndvoice CIC - £40,000

Towards to face-to-face support for autistic adults and children.

En-fold - £90,000

Towards to core costs.

Grants were also made to the following beneficiaries towards summer activity programmes for children with autism:

Autism Bedfordshire £15,000 Blackpool Tiggers £10,000 Brentford FC Community Sports Trust £11,000 CASPA £10,000 Disability Activity Super Heroes (DASH) £10,000 Dreadnought Centre £12,000 Helping Hands Autism Support Group £10,000 Hillingdon Autistic Care and Support £14,200 KIDS Yorkshire & Humber £16,372 KIDS Lincolnshire £10,000 Killamarsh Autistic & PDA Support Group £4,900 Lambeth Autism Group £14,765 National Autistic Society South Belfast £11,780 PLUS Forth Valley £11,993 Project Art Works £12,500 Resources for Autism £15,000 Spectrum £10,000 Wecan £12,995 WHISH Group £3,330 White Lodge Centre £10,000 YMCA East Surrey £9,155

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES (CONTINUED )

Disability, Violence and Access to Justice - £1,192,000

Bristol Law Centre - two grants totalling £230,000

Towards the student-led disability benefits advice and representation service and the salary of a development officer.

Disability Rights UK - £250,000

Towards two staff members for the new policy team.

Free our People Campaign (managed by Inclusion London) - £200,000

Towards development and provision of peer advocacy for disabled people detained in assessment and treatment units and other psychiatric institutions.

Inclusion London – three grants totalling £372,000

Towards core costs, Hate Crime Partnership and business and organisational support for Deaf and disabled people's organisations.

Somerset & Avon Rape & Sexual Abuse Support (SARSAS) - £140,000

Towards the specialist support service for autistic women and women with a learning disability.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

REPORT OF THE TRUSTEES (CONTINUED)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

The Trustees are 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. They are 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 Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ Report has been approved by the Trustees on 18 January 2023 and signed on their behalf by:

…………………………………………………………………….

TRUSTEE

Dominic Flynn

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

Independent Auditor’s Report to the Trustees of The Three Guineas Trust

Opinion

We have audited the financial statements of The Three Guineas Trust (the ‘charity’) for the year ended 5 April 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 trustees' 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 Three Guineas Trust’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.

Our responsibilities and the responsibilities of the trustees 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 course of the audit or otherwise appears to be materially misstated.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

Independent Auditor’s Report to the Trustees of The Three Guineas Trust (continued)

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 themselves. 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

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 trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are 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 trustees either intend to liquidate the charity or to cease operations, or have 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 regulations made under section 154 of that Act.

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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

Independent Auditor’s Report to the Trustees of The Three Guineas Trust (continued)

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees 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

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

Independent Auditor’s Report to the Trustees of The Three Guineas Trust (continued)

assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 18 January 2023 Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022

Notes
Income and Endowment from:
Donations and gifts
Investments
3
Total Income
Expenditure on:
Raising funds:
Investment management fees
Charitable activities:
Grant-making:
Grant expenditure
4
Grant related support costs
5
Cost of grant-making
Total Expenditure
Net gains on investments
8
Transfers between funds
11
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net (expenditure)/income before
gains on investments		 Unrestricted
Expendable
Total Funds
Funds
Endowment
2022
£
£
£
-
1,375,000
1,375,000
267,957
-
267,957
267,957
1,375,000
1,642,957
-
95,305
95,305
1,458,952
-
1,458,952
220,288
-
220,288		 Total Funds
2021
£
1,562,500
305,704
1,868,204
82,906
2,035,114
195,533
1,679,240
-
1,679,240		 2,230,647
1,679,240
95,305
1,774,545		 2,313,553
(1,411,283)
1,279,695
(131,588)
-
1,141,304
1,141,304
1,411,283
(1,411,283)
-
-
1,009,716
1,009,716
-
26,442,098
26,442,098
-
27,451,814
27,451,814		 (445,349)
5,339,007
-
4,893,658
21,548,440
26,442,098

The notes on pages 16 to 25 form part of these accounts.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

BALANCE SHEET
AS AT 5 APRIL 2022
Notes
FIXED ASSETS
Tangible fixed assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
CURRENT LIABILITIES
Creditors - amounts falling due within 1 year
10
NET CURRENT ASSETS
NET ASSETS
CAPITAL FUNDS
Expendable endowment
11		 £
303,690
2,043,930		 2022
£
10,572
26,244,225
26,254,797





1,197,017
27,451,814
27,451,814
27,451,814
2021
£
14,047
24,922,612
24,936,659
86,459
2,911,548
2,347,620
1,150,603		 2,998,007
1,492,568
1,150,603 1,492,568
1,505,439
26,442,098
26,442,098
26,442,098

The financial statements were approved and authorised for issue by the Trustees on 18 January 2023 and were signed on their behalf by

……………………………………………….............

TRUSTEE

Dominic Flynn

The notes on pages 16 to 25 form part of these accounts.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2022

----- Start of picture text -----
Cash flows from operating activities:
2022 2021
£ £
Net cash used in operating activities (955,266) (2,942,877)
Cash flows from investing activities:
Dividends and interest 267,957 305,704
Proceeds from sale of investments 5,479,468 5,108,238
Purchase of investments (5,499,135) (5,348,883)
Fixed asset additions - (14,802)
Net cash provided by investing activities 248,290 50,257
Change in cash and cash equivalents in the year (706,976) (2,892,620)
Cash and cash equivalents at the beginning of the year 4,451,590 7,344,210
Cash and cash equivalents at the end of the year 3,744,614 4,451,590
Net movement in funds as per the Statement of Financial Activites 1,009,716 4,893,658
Dividends and interest (267,957) (305,704)
Gains on investments (1,141,304) (5,339,007)
Depreciation charges 3,475 3,475
Increase in debtors (217,231) (79,982)
Decrease in creditors (341,965) (2,115,317)
Net cash used in operating activities (955,266) (2,942,877)
Analysis of the cash and cash equivalents
Change in
2022 2021 year
Cash at bank and in hand 2,043,930 2,911,548 (867,618)
Cash held by investment manager for reinvestment 1,700,684 1,540,042 160,642
3,744,614 4,451,590 (706,976)
----- End of picture text -----

The notes on pages 16 to 25 form part of these accounts.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS

1. CHARITABLE STATUS

The Three Guineas Trust is an unincorporated charity , registered in England and Wales with the Charity Commission (registration number 1059652) . The address of the registered office is 5 Wilton Road, London, SW1V 1AP.

2. ACCOUNTING POLICIES

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 (FRS 102) - (Charities 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

In the view of the Trustees, there are no material uncertainties casting doubt on the going concern of the charity. The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust's objects.

a) Income

Income is shown gross which includes the associated tax credit unless the tax so deducted is considered irrecoverable.

Dividends are included by reference to their due dates.

Interest is included when receivable.

b) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Costs of generating funds represent amounts paid to the Trust's external investment advisors.

Charitable activities expenditure comprises grants and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs.

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

2. ACCOUNTING POLICIES (continued)

The view of the Trustees is that any instalments payable within 12 months of the reporting date are expected to be paid regardless of the status of attached conditions and so these are accrued. Any payments due in more than 12 months from the reporting date, where conditions exist that have not been met at the reporting date, are not accrued but are reported as an unaccrued future commitment.

Grant related support costs represent staff, office and governance costs incurred in managing the grant award programme. They include a share of the staff and office costs of the joint offices of the Sainsbury Family Charitable Trusts, which are allocated in proportion to the time spent on Trust matters and grants paid.

Contributions to defined contribution pension plans are charged to the Statement of Financial Activities in the period to which they relate.

c) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

d) Fixed assets

Fixed assets are capitalised where the purchase price exceeds £5,000, and depreciated at rates which reflect their useful life to the Trust. Leasehold improvements are depreciated over the outstanding life of the lease at the time the work was completed. The following rates have been used:

(2012) Leasehold improvements - 10% per annum

(2021) Leasehold improvements - 14.28% per annum

e) Financial Instruments

The charity has financial assets and financial 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.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

f) Cash and cash equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

g) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, which are described in note 2, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

2. ACCOUNTING POLICIES (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

3. INVESTMENT INCOME

Income received on investments may be analysed as follows:

Fixed interest
UK equities
Overseas equities
Alternatives
Bank deposit interest
4. GRANTS PAYABLE
Reconciliation of grants payable:
Commitments at 6 April 2021
Grants not accrued at 6 April 2021
Grants approved in the year
Grants not accrued at 5 April 2022
Grants payable for the year
Grants paid during the year
Commitments at 5 April 2022
Commitments at 5 April 2022 are payable as follows:
Within one year (note 10)		 2022
2021
£
%
£
%
5,223
2
53,260
17
114,763
43
134,748
44
61,204
23
43,001
14
83,720
31
60,149
20
3,047
1
14,546
5
267,957
100
305,704
100
2022
2021
£
£
£
£
1,359,997
3,567,302
401,832
973,934
1,556,990
1,463,012
(499,870)
(401,832)
1,458,952
2,035,114
(1,781,217)
(4,242,419)
1,037,732
1,359,997
£
£
1,037,732
1,359,997

Commitments

In addition to the amounts committed and accrued noted above, the Trustees have also authorised certain grants which are subject to the recipient fulfilling certain conditions. The total amount authorised but not accrued as expenditure at 5 April 2022 was £499,870 (2021: £401,832).

A list of grants payable is included in Appendix A.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

5. ALLOCATION OF SUPPORT COSTS

ALLOCATION OF SUPPORT COSTS
2022 2021
**Grant- ** Governance Total Total
making Allocated Allocated
£ £ £ £
Staff costs 118,714 1,500 120,214 107,119
Share of joint office costs 58,287 - 58,287 46,456
Direct costs including travel 2,823 - 2,823 3,152
Legal and professional fees 8,047 - 8,047 7,851
Advisors' honoraria 20,000 - 20,000 20,000
Depreciation 3,475 - 3,475 3,475
Auditor's remuneration* - 7,442 7,442 7,480
211,346 8,942 220,288 195,533

*Auditor's remuneration excluding VAT is £6,200.

Included within support costs for 2021 were governance costs totalling £9,543. This is comprised of staff costs of £2,063 and auditor's remuneration of £7,480.

6. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Salaries and wages
Social security costs
Other pension costs		 2022
2021
£
£
97,887
87,370
11,449
10,127
10,878
9,622
120,214
107,119

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 1.7% (2020/21: 1.6%) of the total support and administration costs of these trusts have been allocated to the Three Guineas Trust, including a proportionate share of the costs of employing the total number of staff serving in the office in 2021/22.

The number of staff employed during the period was 8, all on a part-time basis (2020/21: 9). This was equivalent to 0.89 full time employees (2020/21: 1.0). The Trust considers its key management personnel to comprise the Principal Officers. The total employment benefits including employer pension contributions, of these personnel were £72,953 (2021: £70,647). No employee of the charity earned in excess of £60,000 (2020/21: none).

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

7. TANGIBLE FIXED ASSETS Leasehold Improvements

Cost
At 6 April 2021
Additions
Cost at 5 April 2022
Depreciation
At 6 April 2021
Charge for the year
At 5 April 2022
Net Book Value
At 5 April 2022
Net Book Value
At 5 April 2021		 2022
2021
£
£
28,402
13,600
-
14,802
28,402
28,402
14,355
10,880
3,475
3,475
17,830
14,355
10,572
14,047
14,047
2,720

8. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Market value 6 April 2021
Less: Disposals at proceeds
Add: Acquisitions at cost
Net gains on investments
Market value 5 April 2022
Investment cash
Total investments		 2022
2021
£
£
23,382,570
17,802,918
(5,479,468)
(5,108,238)
5,499,135
5,348,883
1,141,304
5,339,007
24,543,541
23,382,570
1,700,684
1,540,042
26,244,225
24,922,612

The investments held as at 5 April 2022 were as follows:

Fixed interest
UK equities
Overseas equities
Alternatives		 2022
2021
Cost
Market
Cost
Market
Value
Value
£
£
£
£
3,928,762
3,859,334
3,936,783
3,924,078
2,835,420
4,449,820
4,090,085
6,916,520
10,860,493
14,360,948
7,484,653
10,805,802
1,750,936
1,873,439
1,750,936
1,736,170
19,375,611
24,543,541
17,262,457
23,382,570

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

9. DEBTORS
Gift Aid debtor
Accrued Income
10. CREDITORS - amounts falling due within one year
Grants payable within one year
Professional charges
Investment management fee
Other creditors		 2022
2021
£
£
275,000

62,500
28,690

23,959
303,690
86,459
2022
2021
£
£
1,037,732
1,359,997
9,452
10,691
22,981
21,952
80,438
99,928
1,150,603
1,492,568

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 5 April 2022 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 6 April 2021
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Transfers between funds
Closing balance as at 5 April 2022		 Unrestricted
Expendable
Totals
Funds
Endowment
2022
£
£
£
-
10,572
10,572
-
26,244,225
26,244,225
1,127,622
1,219,998
2,347,620
(1,127,622)
(22,981)
(1,150,603)
-
27,451,814
27,451,814
-
26,442,098
26,442,098
267,957
1,375,000
1,642,957
-
(95,305)
(95,305)
(1,679,240)
-
(1,679,240)
-
1,141,304
1,141,304
1,411,283
(1,411,283)
-
-
27,451,814
27,451,814

A transfer of £1,411,283 (2021: £1,924,943) was made from Expendable Endowment to Unrestricted Funds to cover the deficit during the year.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

12. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS FOR THE YEAR ENDED 5 APRIL 2021


Fund balances at 5 April 2021 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 6 April 2020
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Transfers between funds
Closing balance as at 5 April 2021		 Unrestricted
Expendable
Totals
Funds
Endowment
2021
£
£
£
-
14,047
14,047
-
24,922,612
24,922,612
1,470,616
1,527,391
2,998,007
(1,470,616)
(21,952)
(1,492,568)
-
26,442,098
26,442,098
-
21,548,440
21,548,440
305,704
1,562,500
1,868,204
-
(82,906)
(82,906)
(2,230,647)
-
(2,230,647)
-
5,339,007
5,339,007
1,924,943
(1,924,943)
-
-
26,442,098
26,442,098

A transfer of £1,924,943 was made from Expendable Endowment to Unrestricted Funds to cover the deficit during the year.

13. RELATED PARTY TRANSACTIONS

Included within grant-related support costs is a total of £8,047 (2021: £7,851 ) payable for legal services to Portrait Solicitors, a firm in which Mr D Flynn is a partner.

During the year to 5 April 2022 a donation of £1,375,000, including Gift Aid, (2021: £1,562,500) was received from the Settlor who is a Trustee of The Three Guineas Trust.

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

14. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Income and Endowment from:
Donations and gifts
Investments
Total Income
Expenditure on:
Cost of generating funds:
Investment management fees
Charitable activity:
Grant-making:
Grant expenditure
Grant related support costs
Total Expenditure
Net gains on investments
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net (expenditure)/income
before gains on investments		 Unrestricted
Expendable
Total Funds
Funds
Endowment
2021
£
£
£
-
1,562,500
1,562,500
305,704
-
305,704
305,704
1,562,500
1,868,204
-
82,906
82,906
2,035,114
-
2,035,114
195,533
-
195,533
2,230,647
82,906
2,313,553
(1,924,943)
1,479,594
(445,349)
-
5,339,007
5,339,007
1,924,943
(1,924,943)
-
-
4,893,658
4,893,658
-
21,548,440
21,548,440
-
26,442,098
26,442,098

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

APPENDIX A

GRANTS PAYABLE

The amount payable for the year ended 5 April 2022 consisted of the following:

Autism £
A2ndvoice CIC 25,000
Assert (B&H) 54,000
En-fold 60,000
Project Art Works 38,738
21 grants up to £20,000 were also payable totalling 212,489

Disability, Violence and Access to Justice

Bristol Law Centre
Disability Rights UK
Inclusion London
Inquest
Islington Law Centre
Somerset & Avon Rape & Sexual Abuse Support (SARSAS)
Stay Safe East
eneral
The Sainsbury Archive		 144,000
150,000
422,000
60,000
43,500
105,000
139,225
5,000
1,458,952

General

Report and Accounts – 5 April 2022

THE THREE GUINEAS TRUST

NOTES TO THE ACCOUNTS (continued)

APPENDIX A (continued)

The amount payable for the year ended 5 April 2021 consisted of the following:

Autism
Action-attainment CIC
Assert
Autism NI
Autistic Society of Trinidad and Tobago
Brentford FC Community Sports Trust
Project Art Works
Red2Green
Sunbeams Play
21 grants up to £20,000 were also payable totalling
Disability, Violence and Access to Justice
Bristol Law Centre
British Institute of Human Rights
Disability Law Service
Harrow Law Centre
Inclusion London
Inquest
Islington Law Centre
L&Q Living
Law Centres Network
Respond
Stay Safe East
General
The Sainsbury Archive
West London Zone		 £
60,000
37,632
75,000
20,000
81,000
214,950
50,000
50,000
216,444
37,703
38,300
184,000
100,972
131,000
60,000
58,000
288,000
100,000
150,000
62,113
10,000
10,000
2,035,114

Report and Accounts – 5 April 2022