',!.fl LQ24 evelyn PAI4 I NFF4.' The Malcolm Isaac Charitable Trust Report and financial statements For the year ended 5 April 2023
The Malcolm Isaac Charitable Trust Contents Page Report of the Trustees Report of the Independent Examinei- Statement of financial activities Balance sheet Notes to the financial statements 8. 13 Charity Registration No. 1064591
The Malcolm Isaac Charitable Trust Ti'usl'ees. report for the year ended 5 April 2023 The Trustees present their report and accounts for the year ended 5 April 2023. The accounts have been prepared in accordance with the Deed of Trust and the recommendations ot the Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporiing standard applicable In the UK and Republlc uf Irelitiid IFRS 1021 leffective 1 J3nuary 201 YI. Reference and Admlnlstrative informatlon I he followtng are trustees of the chaNIy'. J Isaac S G Treherne lappointed 5 October 20161 A C Bays (appointed 23 February 20181 Chairman M J Isaac The Principal Offlce of the charity is.. Onslow House, Onslow Street, Guildford, GU1 4TL Charlty Numbér . 1064591 Structure. governance and manaqement The Trust is an unincorporated TrusL, constituted under a Trust Deed dated 1 August 1996 and Is a registered charity, number 1064591. The Trust was established by the settlor, Malcolm John Isaac with the sum of £11JO. The deed wa5 Subsequently varied by a Deed of Variation dated 18 August 1997 and Supplemental Trust deeds dated 11 May 2009 and 12 June 2009. The current Trustees are Malcolm 15aac, appointed under the Trust Deed, and Simon Treherne nd Andrew Bays, who served as Trustees from 5 October 2016 and 23 February 2015 respectively. The power of appointing ncw Trustccs of thc Charity is verted in the settlor during his lifetimé. The minimum number of Trustees is three indivlduals. The Trustees are required to hold at least one meeting a year. A quorum at a meeting of the Trustees is two Trustees. Decisions are made on a majority ol votes cast at a meeting or by a resolution signed by thc Trustee-. Every Trustee has one vote at the meeting except the chairman who has a second or casting vote. The Trustees have the following powers under the Trust Deed.. to apply income as it arises, as well as the whole or part of the capital of the Trust Fund, for such charitable purpose5 a5 the Trustees shall think fit, In any part of the world. to dep051t or invest funds in any manner after taking advicè on investing the funds from a suitably qualified financial expert.
The Malcolm Isaac Charitable Trust Tru5tees' report for the year ended 5 April 2023 tn pmplny aoents to tranqart any hii&inp%s t)n thpir hphAlf. prnvidpd that thp TriigtppÉ exercise reasonable supervision of any person or corporation employed by them, and that all actions exercised by advisors on behall ot the Trustees are reported to them as soon as possible. The Board keeps the skill requirements for the trustee body under review. New Trustee5 would be appointed if a current Trustee resigns. Risk management The Trustees have considered the major ri5k5 to which the Charity is exposed. They have reviewed the risk% and established systems and procedures to manage those risks. The Trustees consider being able to hold adequate tunds to meet current liabilities as constituting the Charity's major risk. Thè Trugtèés considèr that they hold 3dequatè funds to meet current liabilitie5. They have reviewed their prucedure5 fur the a55e55tnenl of risk managen)ent and consider that they have proper procedures in place. Objectives and actlVTties The objects of the Charity are for the Trustees to apply the Income and capltal of the trust for such charttable purposes as they shall see fit in any part of the world with a particular interest in supwrting medical and horticultural projects in the local area. AchTevements and performance During the year, the trustees made discretionary payments of £50,000 to Hampshlre Alr Ambulance in May 2022. The Twstees made payments totaling £521,867 during the year towards their commitment of a £1 million doiiation to St Swlthun's School. The Trustees conflrm thls donation meet5 the public benefit requirement rules.
The Malcolm Isaac Charitable Trust Trustees, report for the year ended 5 April 2023 Flnancial revlew Revenue received in the year comprispd invo<tmpnt inr.nme received on the monies invested and cash held. As at 5 April 2023 the total funds held for the charity amounted to £1,813,45312022., £2,119,022). This includes Investment incoffle of £57,88412022: investment Income of £54,446), Investment pollcy and performance The Trustees, investment advisors submit quarterly investment reports which are reviewed at Trustees. meeilngs. The Inve5ttnent ddvisur5 IidV¥ bevii dii"ected io seek a medium risk approach with a halanrp nf inr.nme and capital growth. The ultimate objective, being to achleve a good level of income, rising above inflation over the medium to lono.term, whilst preserving the capital. Durlng Ihe year ended 5 April 2023 Lli¥ yui Lfolio I"eturiied 16.0))% whilst the comparator C2 indpx rptiimpd -.?_?.R%. This was larÉely due to the benchmarks inherent bias towards UK equities whlch has 33.75% invested into the UK market and last year saw renewed interest in the UK market due to cheaper valuations and high oil prices which benefited cutnmodity firms that represent a large proportion of the UK index. In contrast the portfolio is underweight UK equltie5, WILII LUI IviIL weigliLiiig of 2J%. We firtnly believe that as the UK repre3ent3 only 4% of worldwide GDP and £iven that the political situation in the UK appears fragmented, coupled with a cost of living crisis, high inflation and terms of Brexit still to negotlate, the investment outlook and future return from the UK economy appear weaker in comparison to global market5. Economies have now opened up since the pandemic lockdowns however the unforeseen Ukrainian crisis haJ lcd to highcr levelv of inflation and a rising interest ratè environment. This has negatively impacted all major asset classe5 a5 rates directly price equity and fixed income cash flows. As a result valuations of assets have come under pressure as rates have risen across most major market economies, compressing margins, reducing profitability and thereby reducing company valuations. Markets had made a good recovery at the start of 2023 however a 'mini-banking' cri*1• has added further stress to markets and investors are now treading with caution as we look to the next few quarters to see if corporate profitability holds up and if the US, UK and Eurozone will enter a technical recession. Going foNards we are optimistic that inflation levels and interest rdtes wlll ease and Ihai the long term investment case of beating inflation is still intact as rateg normalise and normal economic market conditions resume. Markets may underwhelm throughout the rest of the year however broadly speaking we are confident that in 2024 growth will return to the market. Reserves pollcy It IS the intention of the Trustees to maintain the capltal of the trust 50 as to provide a continulng, and hnpg.fully incre35ine, stream of income in the short and medium terms. The Trustees consider the Charity's finances are in a strong position and enable the future to be faced with contidence.
The Malcolm Isaac Charitable Trust Trustees, report for the year ended 5 April 2023 Plans far future perlods In addition to the commitments stated in 'achievements and perfomiance, above, the Trustees have sthted during the year that it is their intention to make charitable donations in the future from trust funds and it is not their intention to hold the trust funds Indefinitely. The Trustees have considered the imp3Ct of covid-19 on the activity of the Trust and have concludod that thg TriiEt will be able to continue to operate as planned for the foreseeable future. It is likely that the impacl of the pandemic will increase the needs of some charities and this may result in increased grant expenditure in the future. Piihllr. hpneflt The principles of public benefit. as defined by the Charity Commission, have been noted by Trustees. The Trustees confirm having given regard to the Charity Commission's guidance and State Lheir bvlief Llii1L Llie aiins of tlie tl"U5t are to provide identifiable benefits to the public. Trustees. responslb111tles In relation to the flnanclal statements The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulailons. Tlie law applicable to Charfties in Ingland and Wales requires the Trustees to prcparc financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standards and applicable regulationsl- Under that law the trustees must not approve the financial statements unless they are sat15fied that they give 3 true and fair view of the stste of affairs of the charity and of the incoming resources and application of resources of the charity for that pcriod. In preparing these financial statements, the trustees are required to: Select suitable accounting policie5 and then apply them consistently. Ob5eive Llie IiieLlivds diid pi"iiiciple5 111 the Chèrlties SORP,. Make jiidgments and estimates that are reasonable and prudent. State whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements. and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue In operatlon, The Tru5teei (ire ie5puiislble foi" keepiiig accounting records which dlsclose with rea50nablc ar.r.iJracy the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charitie5 Act 2011, the Charity IAccounts and Reports) Regulations 2008 and the provisions of the Trust Deed. The Trustee5 are responsible for safeguarding the assets of the Charity and hence for taking reasanable steps for the prevention and detection of ridud diid otlier ii-iegulai-ities. The Trustees Report was approved on 14 March 2024 aiid signed on their behalf by Malcolm l$a)c, tnjstee.
The Malcolm Isaac Charitable Trust Independent examiner'5 report I report to the charity trustees on my examination of the accounts of the charlty for the year ended April 2U2J which are set out on pages 6 to 13. Responsfbllltl¢s and basfs of report As the charity's trustee5 you are responsible for the preparation of the account5 in accordancc with the requlrements of the Charftles Act 2011 I'rhe Act'l. I report In respect of my examlnation of the eharity's accountg carrlcd out undcr section 145 of the Act and in carrying out my examination I have followed all the app11cable Directions given by the Charity Commission under section 14515llbl of the Act. Independent examlner'5 Statement I have completed my examination. I confirm that no tnaterial matters have come to my attention in connection with the examination giving me cause to believe thal in any material respect.. accountine rÉrords were not kept in respect of the charity as reouired by sLKtion 130 of the Act,. or 2. the acc¢JJnts do not accord with those records,. or Llie dLLuuiILs (lu IIUL LLKiiyly wiLlI Llie dvyIiLdLl¥ Ivquii-tiiiviiLs LLYILeii iii Ig Ll Iv for-ni dl)d coiiLeiiL or accounts set out in the Charilie5 (Accounts and Reports) RulationS 2(K)8 other than any requiran¢nt that th¢ accoLJnts give a 'true and fair view, vhich is not 3 matter considered as part of an independent examinati. I hove no concerns and hove come ocr05s no other motters In connectlon with the exominGtFon to whlch attentlon should be drown In thls report In order to enoble a proper understondlng of the occountS to be reoched. Signed.. 5u5aii Kuinar ACA Holden Granat LLP Springfield House 23 Oatlands Drlve Weybridge Surrey KT13 9LZ Date.. 14 March 2024
The Malcolm Isaac Charitable Trust Statement of financial activities for the year ended 5 April 2023 Unrestricted Funds 2023 Unrestricted Funds 2022 Notes INCOME Donation5 57,8fM 54,446 Interest on tax repayment Income tax repayment Total income 57,884 54,446 EXPENDITURE Cost of raising funds: Investment management costs 13,164 17,338 Expenditure on charftable activitie5 Total expenditure 154,908 168,072 178,416 195,754 Net expenditure and net movement in funds before gains and losses on investments 1110,1881 1141,3081 Net galnsjllossesl on investment Net movèmènt In funds 1195,3811 1705,5691 101,648 {39,66ai Total funds brought forward 2,119,022 2,158,682 Total fund5 rarripd frtrwxrd 11 1,813,453 2,119,022 The notes on pages 8 to 13 form part of the accounts.
The Malcolm Isaac Charitable Trust Balance sheet 2023 2022 Notes Flxèd assèts Investments 2,250,513 2,594,119 Current assets: Dcbtors Cash 441 66,573 67.014 441 52,190 52.631 Total current a55et5 Liabilities Creditors falling due within one year 10 154,074 147,728 Total current a55et5 less current liabTlitie5 {87,0601 195,0971 Creditors falling due after more than one year 10 350,000 380,000 Net current liabilitles {437,0601 1475,0971 Net assets 1,813,453 2,119,022 I he tunds ol the charity: Unreslricted Trust Fund 1,813,453 2,119,022 Total charlty funds l.Rl?,441 2.119.n22 The notes at page5 8 to 13 to form part of these accounts. Approved by the Trustees on 14 March 2024 and signed on their behalf by Malcolm Isaac. trustee.
The Malcolm Isaac Charitable Trust Notes to the account5 for the year ended 5 April 2023 Accountlng pollcles The principal accounting policTes are summarised below. Basis of preparation The accounts have been prepared in accordance with The Financial Report7ng Standard applicable in the UK and Republic of Ireland I'FRS 102,1, and with the Statement of ReLuiiiiiiviiiJed PidiLiLV dvvIiLdbl¥ Lo illai-ilies pi-epai-iiig tlieir fiiiancial 5tatemeiits in accordance with FRS 102 issued in 2014 and revised in 2019. The financial statements are also prepared in accordance with the Charities Act 2011. The charity is a public benefit entity as defined by FRS 102. Exemptlon The charity has taken advantage of the following disclosure exemption in preparing these financial 5tatement5, as permitted by the FRS 102. the requirements of Section 7 Statement of Cash Flows. Fund accountin8 The funds held are unrestricted funds which are available for use at the discretion ol the trustees In furtherance of the general objectives of the trust and which have not been designated for other purposes. Golng concern The trustees are confident that the charity wlll continue to be a going concern and the financial Statements have been prepared on this basis. Incoming resources All Incoming resources are Included in the Statement of Financial Activltles when the trust is legally entitled to the income and the amount can be quantified with reasonable accuracy. IIiLUill¥ Ldx r tiuverable iii ielatioii to investment income is recognlsed at the tlme the investment income is receivable. Resources expended All expenditure is Bccounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis conslstent th the use of the resources.
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2023 Investments Investm@nts are stated at market vallie at balancp shept date. Rpalispd oain% and In<Ég< on investments, calculated on the difference between the sale proceeds and their cost are credited or charged to the Statement of Financial Activities (SOFA) in the year ot gains or losses. Unrpali5od vains and 10sse& reprpsentinu the mnvgmpnt in thp mArkpt vAliip.s diiring thp. year are credited or charged to the SOFA In the year of galns or losses. Liabilitiès Li2hilitipq are rg.c.ngnised nn the balance sheet as SODn as a constructive obligation resulting from a past event can be reliably measured. Current liabilities represent those liabilities which are expected to be settled within the next 12 months from the balance sheet date. Legal 5tatU5 of the tfU5t The Charity 15 governed by a trust deed dated l August 1996 and is constituted as a charitable trust. Investment Income 2023 2022 InteiE5t on dep051t5 Inve5tmcnt income on investments held 57,884 54,446 57.884 54,446
The Malcolm15aac Charitable Trust Notes to the accounts for the year ended 5 April 2023 Expendlture on charltable actlvltles 2013 2022 Independent examiner 1,080 1,080 Grants (note 51 146.000 167,950 Accountancy fees 6,640 5,840 Legal fees 1,188 3,546 154.908 178.416 Grants to instltvtions approved In the year 2023 2022 At 6 April 2022, approved grants unpaid Provision for grants in earlier year no longer required Grants approved in the year Air Ambulance Rowans Hospice Rosemary Foundation R P Chcstcr Mcmorial Trust Co Ltd St Swithun's School 510,000 983,917 50,000 50,000 40,000 6,000 50,000 40,000 77,950 Grants paid in the year 1176,0001 1641,8671 At 5 April 2023, approved grants unpaid 480,000 510,000 Grants falling due for payment within one year 130,000 130.000 Grants falling due for payment after one year 350,000 380,000 480,000 510,000 Staff costs and nuwnber5 There were no employees of the charity in the year to 5 April 2023 12022 - none). 10
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 Aprll 2023 Investments at market value 2023 2022 Balance brought fonvard Addition5 Disposals Change in market value in the year 2.594,1fg 503,469 1651,6941 1195,3811 ?.,97Q.A62 107,317 1594, 5081 101,648 Balance carried down 2,250,513 2,594,119 Proceeds from sale of investment5 Disposals at cost 651,694 1542,2591 594, 508 1414,9101 Reali5ed siJrrJlii% 109.435 179.598 Gainllloss) on Tnvestment assets: Unrealised gainslllosscs) Reali5ed qainslllossesl 1304,8161 109,435 177,9501 179,598 1195,3811 101,648 All investments are held to provlde an investment return. During the year the following investments exceeded 5% of the total investment value: Guinness Asset Management Funds PLC Findlay Park Funds PLC JP Morgan Asset Management UK Ltd AnalysTS of Investments by category of holdlng: 124,248 134,422 137,389 123,527 138,886 137,288 Fixed interest Alternative Investments Equitie5 214,480 439,731 1,596,302 280,711 492,243 1,821,105 2,250,513 2,594,119 11
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2023 Investments at markct value <continuedl Analysis of investmènts by location.. 2023 2022 Investments held in the UK Investments held outslde the UK 1,232,890 1,017,623 1.420,105 1,174,014 ?,?4n.51.3 2,594,119 Debtors 2022 2021 Due within one year Income lax repayrnent 441 441 441 441 Cash held 2023 2022 Smith & Williamson Investment Management Investment Account Divideiiij ALLUUlIt 39,149 27,424 35,510 16,680 66,573 52,190 10 Creditors: 2023 2022 Amounts falllng due wlth1n one year: Grant5 Accountancy Independent Examiner's fee Investment Management fee 130,000 17,449 3,240 3,385 130,000 10,809 2,160 4,759 154,074 147,728 Creditors falllng duo after more than one yèar: Grant5 350,000 380,000 12
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 Aprll 2023 (cont.) 11 Nel as5et5 of the fund5 of the charity Net currgnt liabllltles Fixèd assets Fund balance Unrestrfcted funds 2,250,513 1437,0601 1,813,453 2,250,513 1437,0601 1,813,453 12 Related party transactlons and Trustoos, remuneratlon and expens•g No memhÈr af the Board of Trustees received any remuneratTon for his/her 5ervlces or reimbursed expenses during the year end 5 April 202312022: none). 13 Taxation As a charity, the Trust is cxempt from tax on income and gains falling within section 524 to SJ6 Income "i axes Act 2007 or S256 of Ihe Taxatlon of Chargeable Galn5 Act 1992 Lv Llie extent that these are applTed to its charitable objects. Nn tax charges have arisen in the charity. 13