**THE DEREK RAPHAEL CHARITABLE TRUST "Registered as a Charity"**
**REPORT OF THE TRUSTEES AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
**CHARITY NUMBER: 1063455**
**THE DEREK RAPHAEL CHARITABLE TRUST**
## **INDEX**
|Trustees Report|1- 4|
|---|---|
|Independent Examiners Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Accounts|8-11|
## **THE DEREK RAPHAEL CHARITABLE TRUST**
**Legal and Administrative Information**
|**Registered Charity Number**|1063455|
|---|---|
|**Principal Contact**|A D Raphael|
|**Principal Address**|8 - 10 Castle Street|
||Cirencester|
||Gloucestershire GL7 1QA|
|**Bankers**|HSBC Private Bank (UK) Limited|
||8 Cork Street|
||London W1S 3LI|
|**Brokers**|Charles Stanley|
||55 Bishopgate|
||London EC2N 3AS|
|**Independent Examiner**|I M Rodd BSc FCA FCCA of|
||Ward Goodman|
||Statutory Auditors|
||Chartered Accountants|
||4 Cedar Park|
||Cobham Road|
||Ferndown Industrial Estate|
||Wimborne|
||Dorset BH21 7SF|
Page 1
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Report of the Trustees for the year ended 31 March 2022**
The Trustees present their report together with the accounts of the Trust for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Constitution**
The Trust was founded on 30 June 1997 and is regulated in accordance with a Deed signed and sealed on 30 June 1997. The founder has the power in accordance with clause 17 to wind up the charity.
## **Trustees**
Following the death of D N Raphael Trustee and founder of the Charity, in accordance with clause 2.4(c) of the Deed, the three of the Trustees of the Charity will jointly fill the role of founder.
E M Raphael, Mrs A D Raphael (Chair) P Raphael
The management of the charity is vested in the trustees who meet on a regular basis. There are no other officers or employees of the charity and the charity is grateful for the continued support that it receives from Derek Raphael (Holdings) Limited for administration support provided by its employees.
## **Appointment of trustees**
The appointment of trustees is vested in the founder in accordance with clause 9 of the Trust Deed. The maximum number of trustees shall not exceed five.
## **Trustee induction and training**
New trustees would be briefed by the managing trustee on the history, present day and future of the charity and presented with a copy of the Trust Deed, latest accounts, the Charity Commission publications “The essential trustee” (CC3) and “Charity Governance Code” and any other relevant documentation that may be available from time to time.
## **Risk management**
The trustees actively review the major risks to which the charity is exposed and systems have been established to manage those risks.
## **Objectives & activities**
The charity was formed by the Founder (settlor), D N Raphael Esq deceased, for such charitable purposes as the Founder may direct as well as the advancement of education in the arts. The Founder and his fellow trustees acted together in making the decisions regarding all charitable donations made under the terms of the Deed. Undisposed income at the 5 April in the income tax year following that in which the income arises shall be disposed of by way of donations towards charitable institutions for charitable purposes at such times and in such manner as the trustees shall in their discretion think fit.
The Trustees take a proactive approach in their grant making and funds are largely committed to causes and charities already known to the Trustees these being a broad range of local, national and international charities.
The Trustees have limited time and administrative resources and the constraints that this puts on the Trustees regrettably means that they are unable to reply to unsolicited requests for support _._
## **Achievements and Performance Charitable activities**
The trustees have continued to make donations to a wide variety of charities out of income and reserves. During the year the trustees distributed £170,765 (2021: £129,061) to charitable organisations. The charity does not actively undertake fundraising activities.
Page 2
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Report of the Trustees for the year ended 31 March 2022 (continued)**
## **Financial Review & Reserves**
Income received from quoted investments and cash funds during the year increased from £15,618 to £34,753. A dividend of £832,640 was received from unquoted equities. By use of the brought forward reserves and income received during the year the trustees have continued to make donations to a wide variety of charities. During the year the trustees distributed £170,765 (2021: £129,061) to various charitable organisations.
During the year, the net charity value increased by £368,940 (2021 increase: £1,712,138). £510,515 of the increase has arisen from an increase in market value of the charity’s investments.
At the year end the charities net current assets were £5,418,231 (2021: £5,049,291).
## **Investment policy**
The Trust Deed confers the powers of investment on the trustees. Money to be invested may be applied or invested in the purchase of shares, stocks, funds, securities, land, buildings, chattels or other investments or property of any nature and in any part of the world, and whether involving liabilities or producing income or not. The investments made are at the trustees’ discretion as they think fit and to the intent that the trustees shall have the same powers in all respects as if they were absolute owners beneficially entitled.
At the year-end approximately 95.2% (2021: 93.1%) of the net assets were invested in equities & unit trusts with the balance in sterling cash deposits. The trustees’ have a policy of keeping any surplus funds in cash deposits and low risk securities.
No decision has been made as to whether any future investments will be in accordance with ethical guidelines.
## **Reserves and Covid-19**
It is the aim of the trustees to generate a level of reserves to carry out the objectives of the trust using income received or drawing on reserves when income streams are lower.
However, due to the nature of the funding streams, the level of funds (reserves) available for giving in any year is governed by the income received during the year together with any undistributed income brought forward from previous years. Due to the nature of the trading activities of the Company and its’ subsidiaries, the regularity and amounts of dividends received from the investment in unlisted shares are not guaranteed. The current indications are that during the next financial year no dividends will be received from the charity’s unquoted shares.
At the year end approximately £263,617 (4.9%) (2021: £346,372 (6.9%)) of the Charities net current assets were held in cash. Interest received during the year was nil (2021: £nil). The remaining assets are invested in equities or unitised funds.
The Trust’s free reserves which are deemed to be readily available to spend at the year-end were £5,308,489 (2021: £4,936,549). This is calculated as the reserves of the charity less the holding in investments from unlisted shares. The trustees are satisfied that the resources are available and adequate to meet the current level of expenditure by the trust.
The trustees have considered the impact that Covid-19 will have on the Trust and operationally they consider that there will be no impact on the Trust.
The Trust has no Covid-19 related employment concerns as the Trust has no employees.
All funds are unrestricted.
## **Public Benefit**
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the trust’s aims and objectives and in planning future activities.
Page 3
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Report of the Trustees for the year ended 31 March 2022 (continued)**
## **Plans for Future Periods**
The trustees’ priority remains that of giving to charities in accordance with the Charity’s objectives and they have indicated that it is their intention is to continue making donations in 2022/23.
## **Independent Examiner**
I M Rodd BSc FCA FCCA of Ward Goodman, Chartered Accountants, has expressed his willingness to continue as “Independent Examiner” of the Trust.
Approved by the trustees and signed on their behalf by:
**……………………………..**
A D Raphael, Esq - Trustee
Dated **………………………..**
Page 4
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Independent Examiner’s Report to the Trustees of The Derek Raphael Charitable Trust**
I report to the charity trustees on my examination of the accounts of the Derek Raphael Charitable Trust (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').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
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.
Mr I M Rodd BSc FCA FCCA Ward Goodman 4 Cedar Park Cobham Road Ferndown Industrial Estate Wimborne Dorset BH21 7SF
Date: .............................................
Page 5
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Statement of Financial Activities for the Year Ended 31 March 2022**
||**Notes**|**Unrestricted**|**Total**|
|---|---|---|---|
|||**Funds/Total**|**2021**|
|||**2022**||
|||£|£|
|**Income and endowments**||||
|Investment income|3|34,753|848,258|
|||-----------|---------|
|**Total income**||34,753|848,258|
|||======|=====|
|
**Expenditure on:**||||
|Charitable activities|4|176,328|133,826|
|||-----------|-----------|
|**Total expenditure**||176,328|133,826|
|||======|======|
|**Net income/(expenditure)**||(141,575)|714,432|
|**Other recognised gains/(losses)**||||
|Net gains/(losses) on investments|7|510,515|997,706|
|||-----------|-----------|
|**Net movement in funds**||368,940|1,712,138|
|**Reconciliation of funds:**||||
|Balance brought forward at 1 April 2021||5,049,291|3,337,153|
|||--------------|--------------|
|Balance carried forward at 31 March 2022||5,418,231|5,049,291|
|||========|========|
The Trust’s funds throughout the year have continued to remain as “Unrestricted Funds” only.
All of the trusts activities are classed as continuing. Movements and reserves and all recognised gains and loses are shown above.
The notes form part of these accounts
Page 6
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Balance Sheet at 31 March 2022**
||Note|**31 March 2022**|**31 March 2022**|**31 March 2021**|**31 March 2021**|
|---|---|---|---|---|---|
|||£|£|£|£|
|**Fixed Assets**||||||
|**Investments**|7||5,156,714||4,704,419|
|**Current Assets**||||||
|Cash at fund managers||180,495||90,385||
|Cash at bank||83,122||255,987||
|||-----------||-----------||
|||263,617||346,372||
|
**Less: Liabilities**||||||
|(amounts falling due within one year)||||||
|Creditors & accrued expenses|8|2,100||1,500||
|||----------||----------||
|**Net Current Assets**|||261,517||344,872|
||||--------------||--------------|
|**Total Net Assets**|||£5,418,231||£5,049,291|
||||========||========|
|**Funds**||||||
|Unrestricted|||5,418,231||5,049,291|
|Restricted|||-||-|
||||--------------||--------------|
|**Total charity funds**|||£5,418,231||£5,049,291|
||||========||========|
The financial statements were approved by the Board of Trustees and authorised for issue on
……………………………….. and were signed on its behalf by:
………………………………. A D Raphael Esq
The notes form part of these accounts
Page 7
**THE DEREK RAPHAEL CHARITABLE TRUST**
## **Notes to the Accounts for the Year Ended 31 March 2022**
## **1. Legal Form**
The Derek Raphael Charitable Trust is a registered charity, registration number 1063455, registered in the United Kingdom. The address of the charity is given in the administration details on page 1. The nature of the charity’s operations and principal activities are described in the Trustees annual report set out on pages 1 – 4.
## **2. Accounting Policies**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS 102) “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019)”, and the Charities Act 2011.
The financial statements have been prepared under the historical cost convention.
The accounts are compliant with Update Bulletin 1 and FRS 102 Section 1A.
## **2a. Incoming resources**
- All income is recognised once the charity has entitlement to the income, it is certain that the resources will be received and the monetary value of incoming resource can be measured with sufficient reliability.
Income from investments is shown gross and any deduction of income tax is treated as being recoverable due to the charitable status of the Charitable Trust.
## **2b. Resources expended**
Liabilities are recognised as resources expended when the charity has legal or constructive obligation committing the charity to the. Expenditure relating to a specific musical production is accounted for in the accounting period that the event takes place. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Creditors are recognised where the charity has a present obligation resulting from a past event and the amount due to settle the obligation can be measured or estimated reliably.
## **2c. Charitable activities**
Costs of charitable activities are those costs incurred by the charity in the delivery of its activities and all support costs.
## **2d. Investments**
Investments are stated at market value when quoted at the balance sheet date and at trustees’ valuation for unquoted investments. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## **2e. Taxation**
No liability to UK taxation arises on any of the Trust's sources of income due to its charitable status and all investment income is received gross of tax.
## **2f. Cash at Bank and in hand**
Cash at bank and 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.
Page 8
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Notes to the Accounts for the Year Ended 31 March 2022 (continued)**
## **3. Income from investments**
|**ncome from investments**|||
|---|---|---|
||**Total 2022**|**Total 2021**|
||**£**|**£**|
|Dividends and distributions|34,753|848,258|
|Bank interest|-|-|
||**-----------**|**---------**|
||34,753|848,258|
||**======**|**=====**|
|**nalysis of charitable activities**|||
||**Total 2022**|**Total 2021**|
|Donations made|170,765|129,061|
||**======**|**======**|
|**Support & governance**|||
|Support costs:|||
|Administration & general running costs|2,863|2,785|
|Governance:|||
|Independent examination|2,700|1,980|
||**-------**|**-------**|
||5,563|4,765|
||**====**|**====**|
|Total costs|176,328|133,826|
||**======**|**======**|
|Donations made are summarised as follows:|||
|DEC Ukraine Appeal|50,000|-|
|MCC Foundation|7,000|7,000|
|Chance to Shine|7,000|7,000|
|Courtauld Institute of Art|5,050|-|
|Children In Need|5,000|-|
|Nightingale Hammerson|5,000|5,000|
|Winston's Wish|5,000|10,000|
|ZANE|5,000|5,000|
|Outward Bound Trust|5,000|5,000|
|Arundel Castle Cricket Foundation|5,000|5,000|
|Capital Kids|5,000|5,000|
|Samaritans|5,000|5,000|
|Maggie's Centres|5,000|5,000|
|Connection at St Martin's|5,000|5,000|
|Pirate Castle|5,000|5,000|
|St. John's Hospice|5,000|5,000|
|University of Cape Town Trust|5,000|5,000|
|Gurkha Welfare Trust|5,000|5,000|
|Blue Ventures|5,000|-|
|Poulton Cricket Club|-|5,000|
|Other grants under £5,000|26,715|40,061|
||**-----------**|**-----------**|
||170,765|129,061|
## **4. Analysis of charitable activities**
Page 9
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Notes to the Accounts for the Year Ended 31 March 2022 (continued)**
## **5. Trustees and Related Party Transactions**
||**2022**|**2021**|
|---|---|---|
|Trustees remuneration and other benefits|None|None|
|Indemnity insurance|None|None|
There were no related party transactions during the current or previous year.
## **6. Staff costs & emoluments**
The charity has no full or part time employees.
## **7. Investments**
||**2022**|**2021**|
|---|---|---|
||£|£|
|Value at 1 April 2021|4,704,419|3,231,032|
|Additions at cost|-|510,037|
|Disposal proceeds|(58,220)|(34,356)|
|Change in market value|510,515|997,706|
||-------------|-------------|
|Value at 31 March 2022|5,156,714|4,704,419|
||========|========|
|Unquoted equities|112,742|112,742|
|UK quoted equities|466,176|477,129|
|Overseas quoted equities|764,356|244,096|
|Unit trusts|3,813,440|3,870,452|
||-------------|-------------|
||5,156,714|4,704,419|
||========|========|
Net gains/losses on investments during the year comprises of all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments during the year.
All quoted investments held are listed on recognized stock exchanges or markets and are carried at their market value.
The investments in UK unquoted equities is in respect of an investment of 112,742 £1 Ordinary Shares in Derek Raphael (Holdings) Limited (2021: £112,742). The shares were valued in early 2007 at £19, however due to the specialised nature and operational methods of the trading activities of the Company and its’ subsidiaries the trustees are of the opinion that this valuation would not give a true reflection on the value of the charity. The trustees consider that the inclusion of the shares at their par value of £1 each is a fair valuation of the holding for the purpose of these accounts. The managing trustee is the chairman and controlling party of Derek Raphael (Holdings) Limited.
During the year, the trustees retained an investment in COIF Charity Funds. At the year-end the investment in the COIF charities investment fund accumulation units was valued at £3,813,440 (2021: £3,414,929) which represents 70.38% (2021: 67.63%) of the Charity’s net assets.
No other individual investment represents more than 5% of Charity’s net assets.
Page 10
## **THE DEREK RAPHAEL CHARITABLE TRUST**
## **Notes to the Accounts for the Year Ended 31 March 2022 (continued)**
## **8. Creditors and Accruals**
## **Amounts falling due within one year**
||**2022**|**2021**|
|---|---|---|
||£|£|
|Accruals|2,100|1,500|
||====|====|
## **9. Capital Commitments**
The Trustees had made no commitments for further capital expenditure at 31 March 2022 (2021: None).
## **10. Contingent Liabilities**
There were no contingent liabilities at 31 March 2022 (2021: None).
## **11. Funds**
All of the charity’s funds are unrestricted. Unrestricted fund movements are summarised as follows:
||**2022**|**2021**|
|---|---|---|
||£|£|
|Funds brought forward|5,049,291|3,337,153|
|Incoming resources|34,753|848,258|
|Expenditure|(176,328)|(133,826)|
|Gains/loss on investment|510,515|997,706|
||-------------|-------------|
|Funds carried forward|5,418,231|5,049,291|
||========|========|
Page 11