THE HADFIELD CHARITABLE TRUST Charity Reglstration Numb8r.' 1067491 ACCOUNTS FOR THE YEAR ENDED 31st AUGUST 2024 The Hadfleld Charitablg Trust Accounts for the year ended 31st August 2024 Index Page 1-10 Trustees, Annual Report 11-13 Independent Auditorfs Report 14 statement of Financial Activities 15 Balance Sheet 16-25 Notes to the Accounts (including Accounting Policies) The Hadfield Charttable Trnst Accounts forthe year ended 31stAugu8t 2024 Trustees. Annual Roport The Trustees have Flea5ure In submitting their Annual Report and Financial Statements for the year ended 31stAugust 2024, The financlal slataments have baen pr@par8d in accordance with the accounting poliGies set out in note 1 to the financial statements and comply with the charity's goveming document, the Charities Act 2011 and preparing their accounts in accordance wllh the Financial Reportlng Standard applicab16 In the UK and R@public of Ireland IFRS 102)° (second editlon - October 2019 - effective 1 January 2019). REFERENCE AND ADMINISTRATION DET ILS Trustees who served durlng the year and on the date the Reportwas approved: Mr A T Morris- Chair Mrs C F E Addison- Resigned 2nd Aprtl 2025 Mr D Bailey Mr A W N Forsyth Ms K A Jones - Appointed 3rd July 2024 Mr B Kenny Mr R A Morris Prlnclpal Offl¢e' Shoestone Cottage, Gamett Bridge, Kendal, Cumbrla LA8 9AZ Charlty Reglstration Number: 1067491 Administrator to the TrusL" M5 S Berrfman Assisiant to the Admlnlstrator. Mrs V Hewitt A¢¢ountsncy: Rathbones Twst Company Limited, Port of Liverpool Building, Pier Head, Liverpool, L3 1NW Audltor. Mitchell Charlesworth (Audit) Ltd, Sulles C, D, & E, 14th Floor. The Plaza. 100 Old Hall Street, Liverpool, L3 1 QJ Bankers: Rathbones Investment Management Ltd, Port of Liv&rpool Building, Pier Head, Llverpool, L3 1NW Investment Managars: Rathbones Investment Management Ltd. Port of Llverpool Building, Pier Head, Liverpool, L3 1 NW P8ge 1 Tho Hadfield Charitable Trust Accounts for the year ended 31st August 2024 Trustses, Annual Roport STR CTURE GOVERNANCE AND MANAGEMENT The Hadfield Charitable Tru5l is an unlnGorporated grant-making trust. a registerad chaiity constituted under a trust d8ed dated 1 September 1997, The Trust was established through the generosity of the late Mrs Kathleen Hadfleld Bibby. The Trustees hold the capital and income of the Trust on Unrestricted Funds to be applied as they in their discretion think flt. The Trust's sole actlvity is grant making. By deed datad 1st August 2010 the Twstees varied the original deed to extend the total number of trustees at no tim9 lo exceed aight. At the end of the financial year under review the Trust had seven trustsas, each chosen for their particular skills which they bring to tts governan￿. It is considered that the Trustees between th8m have the appropriate experience and skSlls to fulfil the Trusys obleotives. Three of these trustees liva and work in Cumbria. The Twstees wish to record their gratoful thanks to Caroline Addi8on for all her hard work and efforts on behalf of the TNst. She jolned tha Advisory Panel in Oclob8r 2004, was appointed a Trustee from July 2010 and worked as the Trust Administrator for 5 yearB, being at all times a lively, insightful and valuable contrlbutor. Caroline's local knowledge of th8 wort don8 by chaiiiies had prov6d invaluable and had been a great help when making grant decislons, During thg period under review. th8 Truste8s welcomed Karen Jones as a Trustee. Th6 Trustees held three meetlngs during the flnanclal year under review. This gave the Truste8S the opportunity to discuss each grant application as well as to disGUSS Stratsgy and gov8mance matters. Th8 Trust's Investment Manager attended all three meetings. At ils March meeting, the 2023 Annual R&port and Accounts were presented to oonsidered and approved by the Trustoes before being signed by the Chair in good time to meet its statutory obligations. The Trustoes have delegated the day to day management of the Charty to the AdmSnlslrator of the Trust. At each Trusteas, meeting the Trustees dec1de what awards should be made In ￿ponSe to grant application8 received for consideration. The Trustees are guided In thelr deliberalions by an Advisory Panel. Panel m@mbers who all live Sn Cumbria, are appointed by the Trustees and ar8 chosen for their knowledge of th8 county and 118 charitable sector. There are currently seven members on the Advisory Panel. The Panel is chaired by a Trustee, Ms Karen Jonos. There are three Panel meatings each year, held gpproximately four weeks prior to each Truste6 Meetlng. Thesa are hgld in person, in Cumbria, at a tim8 to suit the Panel Members. Five Trustees attended the Advisory Panel meeting in Jun8 2024 to show their appreclatlon of the Panel mernberfs work and to better understand how they reach thoir r&commendations. Please note that 'Cumbria' at the local government level Is governed by 'Cumberland' and Westmorland and Furness, Councils. Re¢Nltment, appointment and Inductlon of new trustoos Prospective trustees are nominated by a Trust66 for the specific skills they possess, and whiGh will be of particular benefit to the Tmst. Typically. candidates are asked to submit a letter of application detailing their skllls and axp8rience and then invited for a discussion with the Chairman and the Adrninistralor on the work of the charity and its history. Candidates are then Invited to attend a Trustees, meeJng and if possiblo, an Advisory Panel meeting. Pag6 2 The Hadfigld Charitsble Trust Accounts for the year ended 31stAugust 2024 Tru8tses' Annual Report naw trustee must be elected by a majority of the Trustees and Is provided with an induction pack wntaining relevant information including a copy of the Trust Deed, minutes of past Trustees, and Advisory Panel meetings and the latest Annual Report and A￿unIs. New Trustees ar8 asked to read the Charity Commisslon guidance on the role, responsibilities and conduct of trustaes (CC3: The Essential TrLJStee) and to vlsit thg Charlty Commission website. Prfnclpal Risks and Uncortalntles The Trustaes have considered the major risks to which the charity Is exposed, tog&ther with tha system which have been establish6d to miligat6 those risks. A rlsk management document is in pla￿ and is ravi@wed each year at the Nov6mb8r me8ting of the Truslees with a view to identtying any new risks and ansuring that the systems almed at mitigating those risks remaln appropriate. The Trustees Consider that the greatgst risk affecting its ability to carry out objectives would arise from a serlous shortFall In Its annual income caused by, for example, a collapse of share value as a result of a major International financial c￿lS1S. In orTler to mitigate this risk (and in aGcordance wlth s15 Trust8e Act 2000) the Trustees have @stablished 8 policy statement for the Investment of ft]nds for the guidance of the disoretionary fund manager, which is revi8wed 8nnually in line with investment performance. The Trustees do not feel that It Is necessary to establlsh reseNes to enabl8 them to smooth fluctuations in income. OBJECTIVE AND ACTIVI The Settlor had family roots in Cumbria and a deep affection for the county. In refiectlng her wishes the Trustees determined that the Hadfield Charitable Trust should prlmarily provide asslstance to community organisations with charitable objectives in Cumbria, particularty those whose work addresses the following priorilies: social needs, youth and employment older people, thg arts. and the environment. However, from time to time, it has, and may in the future, make grants to charities operating outside th8 county. Concentrating on Cumbria was first reporled to and agreed by the Trustees at its inaugral meeting in October 1997. For the year under review, the Trustees agr8ed to ontinue to support causes in Cumbrla. How the Trust dolivers publlc bengfit through its actNitio8: Tho Trust primarily delivers publlc benefit through the dlstribution Df income generated from ils capital funds by making grants lo suitable cornmunty projects. In line with the wishes of the Settlor the awards were principally made for the benefft of Communities in Cumbtla. Tho applicatlon process is designed to be stra5ghtf0￿ard and accessible. All applicants are encouraged to discuss projects before applying as the Twst is keen to build a rapport wtth organisations to help develop an effactive and resllient charitabl@ sector. The Trust actively seeks good community projects to fvnd and aims to do this in varlous ways principally through attending the 5 annual chgrity funding fairs held throughout the county and through its website which was redeveloped working with d8sign students at the Unlversity of Cumbrla Institule of Arts. The Trust also sands funding plaques for display to organisations, thereby raising public awareness of its work. Page 3 The Hadfleld Charitsble Trust Accounts for the year ended 31stAugu5t 2024 Trustees, Annual Report One highlight was to support the Kepplewray Twst with a £17,000 grant to bulld an outdoor shelter at their premises at Broughton-In-Furn@ss. Ms Karen Jones (Trustee) and the Trust Administator attended the opening event. This shelter supports everyone involved at Kepplewray.. staff, tea¢h8rs and partlcipants. The Trust@88 continue to receive requests for multi-year grants. The Trustees have approv￿ these as and whère appropriate. To ensure that public benefit is delivered widaty and fairly, the Trustees apply a 'tsvo year rule, i.e. a minlmum tsvo year gap beiween the payment of awards. The Trustses consider applI(￿tionS from national charities if there Is evidenc& ofthe public b8n8fft to the Cumbrian communlty from their work. All appli1￿nts are asked to prOV￿e a Cumbria-based referee who can vouch for that organisation's work in the county. From time to time the Trustees decide to hold back th& grant until certain condltions and criterla are met. Th8 applicant then has two years (unless advised Oth&￿Il8e) from th8 date of agreement to provide evidence that all conditions and critaria have been met. At that point the pledg8d award is paid. Working w5th third parties to maximi5e dellvery of public beneflt The Trustees are always willing to support organisations which work county wid8 With numerous community groups. The Trustees were On￿ again happy to support the Cumbtia Community Foundation's Winter Wamith Appeal. who warked with several AGE UK offices and Copgland Age and Advice S6rvice lo distribuEe funds, Perfommnce-related awards Grants are applied towards one-off projects- however, th8 Trustees recogniso how critical it Ss to ensure the sustainability of effecllve organisations. When considered necessary, key projects may receive multkyear grants which are always performan￿ related., subsequent paymants being wholly dependent upon the receipt of satisfactory reporting lo the Twst2es. Examplas in 202312024 mulli-year grants indude awards to Citlzens Advice Allerdale; Sprfngfield DomestlG'Violenca Support in South Lakeland,. Time to Change and the Westmorland Youth Orchestra. The Trustees also pledge awards where an addltlonal condition needs to be fulfilled, partlcularly in the ca80 of large capital schemes when remaining funds often need to be secured. These pledged awards frequently help organisatlons to l@ver additional fundlng. The Trustses have complied with the duty in s17(5) of the Charitiés Act 2011 to have du8 regard to the Charity Commission's Publlc Benefit guidance when exercising any relevant power3 or duties. ACHIEVEMENTS AND PERFORMANCE Since the Trust started to make grants in March 1998 almost £7mllllon has beon donated to ovor 3,000 charitable causes, mostly in Cumbria, by 31 AL5gu512024. Page 4 The Hadfield Charitable Trust Accounts for the year ended 315t August 2024 Trustees. Annual Report Donations made During Ihe year. donallons totalling £357,256 (£377,517 in 2023) wer8 paid by the Trust. Grants ranglng from £350 to £17.000 were awarded to 123 (108 in ye 31 August 2023) charitable causes. The total value and proportton of grant8 awarded by priorSty type from Unrestrictad Funds w8re as follows.. Social Ngeds Youth 8nd Employment Help for Ihe Elderly Th8 Arts The Environment 129,528 151.128 14,579 40.800 16,720 37 12 352,755 100 In dlviding projects by priority there is always a degree of overlap, particularly under the 'Swia5 Ne8ds' prioriiy, so projects can d6liver benefit to several categories such as tha eld8rty and di8abled. A full list of all the donations mad8 in th8 year is shown wlthln the notes to these accounts. Rapid Response Activity The TTUSt is always willing to meet community ne8d In times of adversity. Examples of this In the past are during the Foot and Mouth Disease ClTS88 of 200112D02 and again In January 2016 following Stomi Dasmond and the flooding this caused. To support the 8rea during COVID the Trustees continued with its three funding rounds, aC￿plIng applications for both COVID and non COVI D-relaled needs. IDJIPACT OF DONATIONS Social Need Extracts from the Evaluatlon Forms returned to the Trustees from successful applicants The installation has made the p8vylion a far MO￿ usgabl8 spac9, not Just for tft8 ciyckot club but for other users 8nd the local Gommunify. We rlow have lighting and hoatlng, as W811 as showering f8Gilities and prDp&r catering facillties which wlll allow lis to uso Ihe sp8C8 to rjo some fund raising to help with continued impmvements" 'Thg work has ￿nsfOrMed th8 halls making tham a wam79r &nd brighfer spaGe. We have inore8sed the numbar of user gmups and oncg a month org8niso wami spot meal for between 35-4Q of all ages." Wo havg woA(ed very h8nY fo fran to the standanls of H M Coastguanl in order to pass and be r6cognis8d as an °additionai fattility". W6 are very proud to have passed all our requi￿MentS by th8 Coastguard.. Page 5 The Hadfleld Chartlable Trust Accounts for the year ended 318t August 2024 Trustaos, Annual Report This is the criteria which In past years has receivad th8 largest number of applications although this was not the case in the year under revi@w. However the Trustees continue Ihelr long time support for communlty facilities such as village halls and communlty centres, sports clubs, and hosplces, Youth and Employmont Actlvltles he young peopl8 We￿ ssked to take notioe of thelr s8nsgs throughout fh8 ￿sidentIal, to increase their connecbon to nature and empower thom to notice thelr surroundings ai?d as 8 rasult, USES natur8 connectlon as a tool to impnjve t17eir wellbeing. In tum helplng them to und8r8tand how thgy oan take care of fheir mental h8alth 8nd wort( on their resllience 8nd coping strat8gles and c9mgnt r8Yalionships with thoirpeers.. We had lost numwous sewice us&rs bocausa thgy could not attend provisions upstwrs - this g￿nI wll ￿St01? SgNloe usel3 and allow new users with mobllAtyproblams to attgnd.. ' Our aim is to support young people from dlsadvantaged backgmund4 providing a sens8 of belonging, positive wellbeing and a commilmenl to leaming- maMng a real drfle￿nc0 to thelr qualty of lifg.. Applications during the year under review ranged from support for youth groups, to the refurbishment of play area5, to sponsoring a student taking part In the Arkwright Engineering Scho18rship scheme. It was noted that the largest number of grant5 was paid to support Youth and Employment Activities. Hadfiald TruBt Creativo Travel Award 2023-24 This is a trav81 award given to students to enhan￿ their studies in creatlve arts. The award is managed by Ihe University of Cumbria with a Trustee and a small number of the Advisory Panel members taking patl in the decision. Each appllcant gives a presentation which has to include a breakdown of costs and the reason they wish to travel. For the 2D23124 a total grant of £2,150 was awarded. Abby Doran l BA IHons) Illustration Level 6 | awarded £500 To travel to Krakow, Poland independently to visit a range of museums, galleries and places of cultural interest as personal enrichment. Peter Howarth l MA Creative Practlco l awarded £500 To produce a shorl film about caving in Yorkshire for enty into the Kendal Mountain Film Festlval and to further develop his cavlng 8kills to become a voluntary member of the Cumbria Ore Mines Rescue Unit. Megan Richards l BA (Hons) Wlldllfe Media Level 4 | awarded £750 To travel to Southern Spain in June 2024 to research, film and produce a documentary of the Iberian Lynx. This film was shown to both the Advisory Panel and Trustegs. Jil Schoenegger l BA {Hons) Illustration L6vol 61 awarded £400 To attend the Vertax C¢Mference. London in April 2024 to gain knowledge and contacts from Industry profossionals on how to advanca her career in th8 f181d of illustration and Concept art. P8ge 6 The Hadfield Charltablo Trust Accounts for the year ended 31st August 2024 Trustses, Annual Report Help ForThe Elderty Extracts from the Evaluation Forms retumed to the Trustees from SUGcessful appllcants "Th& impact of this loGal befri9ndin9 servioe hss been hugely significant.. Although there are very few grants allocated to th18 important criteria this demographic does benefit from grants awarded under the Sc¢lal Needs, Arts and Environment C8tegory. Arts Extracts from the Evaluation Forms returned to the Trustees from successful applicants hi18t the audience was smaller than we had hopad, thos6 who cam8 W817t away vgry hsppy and cheprful.. in fact, I r6rrived comments like, 'That was tho best conc8rt the MusiG SDC18fy has arr8nged.' We had a fantastic day meeting up and singi1￿ with Choi￿ 8nd individusls fmm acn)ss Cumbria.. "Tre 2023 foslival was a gr88t SUCC8ss. Taknng place over 10 days, 37 fantastlG events W6￿ pr6sGntgd t0 8 lyve audienGe th many joining r8n70t8ly online. This festival demonstrated a consolidation of r8COV8ry from lockdown, surpassing the previous years, attendance fjgures. 2023 was also a big hti ft)r our famlly programming followlng 2 pr6vious ypars of gmwth for fhls new strand of aGtivlty." Tre frustees are great supporters of the Arts and were keen to award grants to ensure sustainability and longevity. Increaslngly the awards are only paid aft&r a deficit can be Bvidenced following, Say a concerL The Envlronment Extracts from the Evaluation Fornis returned to the Trustees from su¢¢essful appllcants .24 o￿anISatIonS attended (throughout the year) bringing wlth them a total of ITO p8ttscipants with leaming difficulties, physiGal disabilty, SEND and other additional needs. W8 csrrigd out a range of acfivilies of 8 bushoraft and fo￿St sch(K)I afure Incliiding den btiilding, lighting slalls, pond dipping, cooking on an ope17 fire, climbing tr8es, using slaGk Iln&8, ￿arnn￿GkS and swlngs, bug hunting sndplaying in the woods" The Trustees are always happy to receive applications under this criteria and noted a number applylng for grants for solar panels or equipment to r￿uce heating bi118 in community building5. Plans for the futuro The Trustees will continue to tsrget thelr priority categories to maximise public benefit and 8CtiV8ly promote the work of the Trust to attract appropriate applications and effectively meet community need. It is antlcipated that requests for revenue funding to rx)ver annual running costs and salarie5 8long with requests for multi-year awards will continue, There are no plans to change the application pro￿sS. Page 7 The Hadfield Charitable Trust Accounts for the year ended 31stAugust 2024 Trustees. Annual Report The Trust wlll continu8 lo monitor achievement by measuring impact through analysis of the evaluation reportlng of every successful applicant. The Trustees decidod that fomier applicants can only reapply if they have evaluated previously funded projects. Ana5ysis of application by priority and location wlll continue to help identlfy gaps in uptake. Some awards in the Arts category can only be claimed if the went ha8 made 2 d&ficit and the Twstees are contlnulng to measure the impaot of this approach. The Trust will continue to develop Its working with key organlsations to maximiso the dellvery of public b@n@fit. CIAL REVI Income g8nerated by investments during the year totalled £335.199 (£331,573 in 2023) 8nd £35,794 (£36,070 in 2023) was spent to raise funds. The amount applied directy tow8rds charitable purposes during the year totalled £406,011 (£422,535 In 20231 of which £53.258 was spent on support and governance costs <£47,018 in 2023). The SOFA includes the net gains and losses arising on revaluations and disposals throughoth the year. In th year ended 31st August 2024, net Investment gains btalled £557,435 (losses of ￿89,874 in 2023). The net increase in funds during the year ended 31st August 2024 was £450.829. The Trustees held £9,726,801 of Unrestricted Funds as at 31st August 2024. compared with £9,275,972 held as at 31st August 2023. All Funds held at the financial year-end were Unrestricted in nature. Reseryos The Trustees do not consider the underlying capital to be reserves sinco they provide the sole sourcg of income for the Trust. The Trustees aim to expend each yearfs income, net of administration expenses, through the donation of grants with any under or ov9r expenditure being balanced by over or under expenditure in subsequent years. Glven the abovo, coupled wlth the low annual administrative expenditure, the Trustses do not consider tt necassary to malntaln designated treo reseNes. As explained under the sectlon of 'Rapid Response ActSvily" the Trustees from tlme to lime raspond to a particular crisis or opportunity by agreeing to donate an appropriate sum possibly outside of the 3 funding rounds to meet that noed. although no such event occurred durlng 202312024. Invoslments The Trust's capital is Invested in marketable investments or cash. There are no specific ￿strIctl0nS under the terms of the governing document. The Trustees have full discretion over the investments. The TnASt@es have delegated to Rathbones full discretionary day to day control ctf th6 investments. Assets have b@en acquired and disposed of In accordan￿ with the powers available to the Trustees. Page 6 Tho Hadfield Charltsble Trust Accounts for the year ended 31st August 2024 Trustees. Annual Report Investment Objoctives and Performance The Trustees have agreed wilh the Investment Managers th@ objectives to secure a reasonable growth in income, conslstent with the long term preservation of capital in real terms. Investment decislons should be made based on the views of a prudent person in accordance with the standard of investment critoria relating to sullability and diversification. These objectivas are reviewed at least once a year at a Trustee meeting. The Trustees wish to ensure that the objectives outlined above are achieved with an accaptable risk. This Impli&s the need for diversification of Snvesthient by the Trust to include a range of assets including flxed interest stocks, UK and overseas shares. Inv@stsMents comprlse holdings in the UK, iarg8r overseas listad companies, unit and investment trusts Including those investSng in major intemational markets and also fixed int8rest securities. The portfolio can therefore inGludo a proportlon of medium-slzed, or small&r, UK companies and hav@ 8xposure to internallona5 markets. The perfornianc9 of the fund is monitored and th8 Trustees review each individual asset class against its appropriate benchmark. The Investment Managers ar8 requir8d to operate wlthln the constraint5 applylng to twsts govarned by th8 TnJ8tee Act 2000. The Investm6nt Manager provldes regular reports to the Trust&es who review thg p8rfOrMan￿ of the portfolio and oftho Investment Manager at least three times a year, They consider that thelr parformance during the period under review was satisfactory. Th8 Trustees are aware that significant enhancements havo be&n and continue to be made to the investhent process at Ralhbones whlch wlll allow a deeper understanding ofthe Environmental, Social and Governance (ESG) aspeGts of the investments and identify any risks associated with these. This d@velopment is welcomed and the Trustees will keep their posltlon on this reviewed and the Policy Statement will be updated accordingly. Page 9 The Hadfleld Charltable Trust AcGounts for the year ended 31stAugust 2024 Trustees, Annual Report TRUSTEES. RESP NSIBILTIE The TwsteeB are responsible for preparlng the Trustees, Annual Report Accounts in accordance with applicabte law and United Kingdom Accounting Standards (United Klngdom G@nerallyAC￿pted Accounting Practice). The law applicable to charitses in England and Wales requires th@ Trustees to prepare accounts for each financtal year which give a true and fair view of th6 State of affairs of the charity and of the incomlng resources and spplication of resources of the charlty for that year. In preparing these accounts, the Trustee8 ara r8quired to- seleGt sultable accounting polic&s and then apply them consistently. obseNe tho methods and principles in the Charitles SORP (FRS 102)., makejudgements and estimates that are reasonable and prudent., slate wh8th@r applicable UK accounting standards