DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
Registered Charity Number: 1069124
THE MERCHANT TAYLORS’ COMPANY CHARITIES FUND
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
31 December 2020
DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
INDEX
| Trustees’ Report | 3 |
|---|---|
| Objectives and Activities | 3 |
| Achievements and Performance | 5 |
| Financial Review | 6 |
| Future Plans | 8 |
| Structure, Governance and Management | 9 |
| Reference and Administrative Details | 11 |
| Statement of the Trustees’ Responsibilities | 12 |
| Independent Examiner’s Report | 13 |
| Statement of Financial Activities | 14 |
| Balance Sheet | 15 |
| Accounting Policies | 16 |
| Notes to the Financial Statements | 19 |
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees submit their report and financial statements for the year ended 31 December 2020.
The accounts comply 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, second edition (Charities SORP (FRS 102)) and with the Charities Act 2011.
OBJECTIVES AND ACTIVITIES
Charitable Objects
The Objects of the Charity are to carry out such legally charitable purposes for the relief of poverty, infirmity, the advancement of education or religion or otherwise for the benefit of the community as the Trustees shall from time to time in their absolute discretion decide.
The Charity’s three funds are all unrestricted to the full extent of those Objects, except to the extent noted below:
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The Unrestricted (General) fund – no restriction within the Objects
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The Livery and Freemen Fund: Income fund – no restriction within the Objects
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The Livery and Freemen Fund: Endowment fund – only restricted as to the extent that any particular donor imposes a restriction. No donor has done so.
A detailed explanation of these elements can be found later in this report under Structure, Governance and Management.
Aims and Objectives
The Charity aims to:
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Make grants to charities nominated by the membership of the Merchant Taylors’ Company as ‘Livery and Freemen Fund nominated charities’, to the charity chosen by the Master Merchant Taylor for the time being, and to other charitable causes with which the Merchant Taylors’ Company itself has long-standing associations.
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Relieve poverty through its social investment in Fair by Design Fund.
The Charity’s key objective for the year was to continue to support causes in accordance with its Objects and with the aims outlined above, and also to maximise donations to both the Livery and Freemen Fund: Income Fund and the Livery and Freemen Fund: Endowment Fund to increase both its “short-term” and “long-term” resources.
Activities
The Charity’s assets are comprised of three elements:
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The Unrestricted (General) fund
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The Livery and Freemen Fund: Income fund
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The Livery and Freemen Fund: Endowment fund
A detailed explanation of these elements can be found later in this report under Structure, Governance and Management.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
As in previous years, the Unrestricted (General) fund was comprised almost entirely of a donation from the Company. The Trustees made grants from this fund, totalling £7,670 (2019: £10,850), in the categories of Education, Training Awards, and Church and Clergy to charitable causes with which the Company has long-standing associations.
As in previous years, the Livery and Freemen Fund: Income fund was comprised entirely of donations made within the reporting period by individuals connected with the Merchant Taylors’ Company, or by the Company itself. The Trustees made grants from this fund, totalling £50,451 (2019: £85,775) , to the charities listed in note 5.
Social investment in Fair by Design Fund (‘FbD’)
The Charity is a social investor in the Fair by Design Fund, which tackles the Poverty Premium by investing in businesses enabling people on lower incomes to access products or services without paying the Poverty Premium which mainstream businesses have tended to impose. The Charity became a limited liability partner in FbD early in 2019.
FbD’s full name is The Fair By Design Venture Limited Partnership. FbD is registered in England and Wales with registration number LP018086. Its registered office is at The Council House, Victoria Square, Birmingham, West Midlands, B1 1BB.
The Charity’s commitment is to make up to £200,000 available to FbD, from the Livery and Freemen Fund: Endowment Fund. Of this, £20 is a capital contribution, and £199,980 is a loan from the Charity to FbD.
As at the end of the reporting period, the Charity had invested £127,891. See ‘Achievements and Performance’ later in this report for more detail.
The Charity’s social investment policy is as follows. The investment in FbD was a trial to test how effective a particular social investment could be at reducing poverty, and that the Charity will not consider making any further social investments for the foreseeable future/near term while it is not yet possible to evaluate FbD’s long-term impact properly.
Public Benefit
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.
The Charity’s public benefit is enshrined in its charitable Objects.
Strategy
The strategy for the year has been to continue to raise funds for the Livery and Freemen Fund, and to make best use of the Unrestricted (General) fund.
Grant-making policies
The Charity does not accept grant applications. The policy is to make relatively modest grants to the charitable causes with which the Company has long-standing associations, and grants of £10,000 per Mastership Year to the Livery and Freemen Fund nominated charities. The policy with effect from the Mastership Year July 2019-July 2020, is that the Charity will simply make a donation to the incumbent of whatever funds are raised from members of the Merchant Taylors’
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The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
Company at events specifically promoted as linked to the Master’s Charity.
ACHIEVEMENTS AND PERFORMANCE
Performance against strategy
The Charity was able to provide a steady degree of support to causes according to its Objects and aims while continuing to grow its endowment.
Fair by Design Fund
As at the end of the reporting period, the Charity had invested £127,891 and the overall value of the investment in the balance sheet after allowing for the Company’s share of the investment gains is £163,627.
As at the end of the reporting period, FbD had invested in the following businesses. (A sample of metrics reported by FbD as at the end of the period appear in italics. Some metrics are not reproduced here, typically because a lengthier explanation would be required of assumptions underlying the measurement. However, an e-copy of the full social impact report setting out all metrics is available from the Charity on request to any member of the Merchant Taylors’ Company).
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Incuto - a Banking tech platform for Credit Unions, Community Banks & CDFIs. (Number of Credit Unions: 24. Aggregate membership of those Credit Unions: 470,181. Average saving in end user accounts: £272)
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Credit Kudos - a challenger credit bureau that harnesses Open Banking data to measure creditworthiness in a fairer way, helping individuals get access to services at better rates, by fully understanding their financial situations instead of a one-dimensional credit score.
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Wagestream gives employees complete control over when they get paid, for example low income shift workers. It effectively ends the need for employer advances, loans and the stress caused by short-term, unplanned financial obligations. Its mission is to make the payday loan industry redundant. (Wagestream was favourably reviewed in The Economist’s ‘Bartleby’ column in during the reporting period) (Number of active employers using Wagestream: 64. Number of eligible employees using Wagestream: 105,082)
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Emrgnt - By rolling out new electricity, heat and mobility technologies in intelligent, localised systems, Emrgnt can make clean, cheap energy available for everyone and help tackle climate change. (Number of Housing Association partners: 2. Number of homes benefitting: 500,000).
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Minibems - stands for Mini Building & Energy Management System. They provide an ‘Internet Of Things’ based solution for the heating market, lowering costs by delivering performance enhancements in domestic and commercial buildings. (Number of organisational clients using Minibems: 13 of which 4 are in the social sector. Total homes with Minibems installed: 1,056 of which 846 are in the social sector.)
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Switchee - the UK’s first smart thermostat and asset management platform for large social landlords. Switchee reduces the energy costs for social housing tenants, which helps reduce fuel poverty, responsible for the largest premiums on low-income consumers. (2,245 homes with Switchee installed. Average annual saving per household £130)
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We are Digital - an online platform that combats digital and financial exclusion via tutoring sessions. WAD works with corporate and government customers, supporting them with the challenges of servicing digitally excluded consumers. It ensures that excluded consumers can access products and services previously inaccessible to them.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
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Jobskilla - a free online platform designed to bridge the gap between the unemployed, funded training, and support providers and advisors. It tackles digital exclusion by connecting funded training programmes with unemployed people and offering digital inclusion training.
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Kraydel - tackles social isolation for elderly and vulnerable people, helping them stay independent for longer through its smart connectivity platform and ancillary digital services inaccessible to them.
Fundraising performance
Donations from individuals in the year totalled £125,089 (2019: £180,978). The Trustees attribute this to the reduction in events held by MT Company meaning in person donations were not possible during the year.
The Merchant Taylors’ Company’s Livery and Freemen Committee pivoted away from concentrating almost exclusively on fundraising events for the Charity, and towards enhancing the membership journey for members of the Company. The Trustees wish to take this opportunity to record their gratitude to that Committee for the years in which its main focus was fundraising. They wish the Committee well in its new direction of travel.
Investment performance
Investment income amounted to £32,557 (2019: £33,277), with income from listed investments being allocated entirely to the Livery and Freemen Fund: Endowment fund (£32,513 (2019: £33,195)), and deposit interest being allocated to the Unrestricted (General) fund.
There was a total return of 9.7% on the Charity’s investments in the Merchant Taylors’ Livery and Freemen Fund with Rathbones. That exceeded the primary benchmark, set with reference to a composite index of income-oriented funds, which was 0.5%. It also exceeded the secondary benchmark of RPI + 3.5% per annum over the investment cycle.
Legacy campaign
The Charity did not receive any legacy pledges during the year because The Merchant Taylor’s Company has switched the focus of legacy campaigning to a sister charity, The Merchant Taylors’ Foundation.
FINANCIAL REVIEW
Investment policy
The Trustees’ investment policy is that income should be maximised as far as possible whilst seeking to maintain capital growth.
Rathbones’ ‘Merchant Taylors’ Livery and Freemen Fund’ is managed on a discretionary basis. It has a balanced mandate so is managed for a combination of capital and growth. There are no investment restrictions and hence no social, environmental or ethical considerations as such are taken into account
It is a fund for investors with a medium risk tolerance, with a 6-10 year time horizon and the capacity to tolerate a temporary or, sometimes, permanent capital loss. The benchmark for the fund is explained earlier in this report, under the heading Investment Performance.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The assets in this fund represent the Livery and Freemen Fund: Endowment fund, including Income generated by it which is being accumulated and “rolled-up” into capital for the time being, at the direction of the Trustees and in accordance with their Deed dated 16[th ] July 2012. Further details are set out below under Structure, Governance and Management.
Reserves policy
The Trustees’ policy is to retain approximately £20,000 in liquid and expendable funds as a reserve in the Unrestricted (General) Fund, and another £20,000 in the Livery and Freemen Fund: Income Fund.
However, in both cases it is considered appropriate to make use of these reserves rather than to dismiss what would otherwise be successful applications for grants. In the case of the Livery and Freemen Fund: Income Fund, the Trustees believe the current reserves policy would be sufficient to cover this eventuality given the nature and size of the grants awarded historically. In the case of the Unrestricted (General) Fund, the Trustees’ additional reason for setting the reserves policy at this level is in order to be able, if necessary, to top up any shortfall on the annual fundraising target for the Livery and Freemen Fund: Income Fund. Historically, if shortfalls have arisen on that target, it has tended to be in the range £1 - £20,000.
The Trustees do not feel that they are exposed to operational risks of the sort that would require or be ameliorated by emergency expenditure, and so that has not been a factor in setting the reserves policy
At the end of the reporting period, the Unrestricted (General) fund stood at £19,936 (2019: £37,973).
The Livery and Freemen Fund: Income Fund stood at £58,323 (2019: £32,009). This was somewhat above the Reserves Policy, due to cautious budgeting assumptions earlier in the year.
Risk management
The Trustees regularly review their Risk Register, which details the present status of those operational risks which might diminish the Charity’s effectiveness, and the measures in place to mitigate them.
The potential for grant fraud is acknowledged as being a major risk to which the Charity, and charities like it, may be subject, and it is felt that the extensive pre-Committee due diligence and post-grant monitoring processes in place mitigate against it as strongly as the Charity’s resources will allow. A proportion of beneficiaries receive a visit from staff and/or the Livery and Freemen Committee as some point in the grant cycle, at the direction of the Trustees.
The Trustees are aware that safeguarding is a high priority for the charity sector as a whole. In the context that the Charity makes grants only to organisations, not individuals, the grant application form requires applicant organisations working with children or vulnerable adults to certify that the relevant staff are DBS checked. The Trustees believe that this is a proportionate approach.
The other major risk to which the Charity is exposed is the value of, and yield from, its investments. Investments are monitored closely, with regular scrutiny of investment managers’ performance taking place, assisted by the Merchant Taylors’ Company’s Investment Committee.
The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act
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The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
2016 seriously and have considered the implications for fundraising activities. The Charity is a charitable trust supported by The Merchant Taylors’ Company. It conducts fundraising activity to raise funds from members of The Merchant Taylors’ Company, but does not carry out any fundraising activity in order to raise funds from the general public. It does not work directly with commercial sponsors or engage professional fundraisers. The Trustees are not aware of any complaints made in respect of fundraising during the year.
A review of the final position at the end of the reporting period
At the end of the reporting period, the Unrestricted (General) fund and the Livery and Freemen Fund: Income Fund stood at the respective figures stated earlier in this report under ‘Reserves Policy’. The Livery and Freemen Fund: Endowment Fund stood at £1,598,230 (2019: £1,382,999).
The Merchant Taylors’ Company made a donation to the Charity of £90,919 (2019: £87,750) as a contribution towards the Charity’s administrative expenses.
FUTURE PLANS
It is not anticipated that the Covid pandemic will have a significant impact on the Charity’s future plans, which are as follows.
Support for the Master’s Charity and Livery and Freemen Fund membership-nominated charities
The Charity will no longer fundraise on behalf of the Master’s Charity for the time being. Instead, at fundraising events promoted to Company members as in aid of the Master’s Charity, members will be encouraged simply to donate direct to the Master’s Charity.
The system of ‘Livery and Freemen Fund membership-nominated charities’ will end, once all of the incumbents have finished their three-year term of support. Instead, Company members will have two new ways of engaging financial support for charities with which they have a particular affinity. First, the Merchant Taylors’ Company itself will match fund within certain limits any funds which a Company member has raised for a UK registered charity by undertaking a personal challenge (eg, a half-marathon). Second, any Company member will be able to nominate any UK registered charity for an annual ‘charity tombola’. The Merchant Taylors’ Company itself will make a donation to the first two or three charities drawn.
The Merchant Taylors’ Foundation project
The Trustees wish the Charity to participate in a consolidation of most of the grant-making charities for which the Merchant Taylors’ Company provides trustees. Accordingly, in 2021, the Charity will donate its assets, to the extent lawfully possible, as unrestricted funds to The Merchant Taylors’ Foundation (registered charity no. 1161568). The Charity will continue to exist until such time as it appears very unlikely that it might receive any further legacies. The Charity will pass its income, restricted to use within the Charity’s Objects, to The Merchant Taylors’ Foundation.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Charity’s constitution is a Deed of Trust dated 26 January 1998.
The different Funds
This Deed provided that a part of the Charity’s assets were to be known as the Livery and Freemen Fund . The other part of the Charity’s assets were not given a particular name by the Deed, but for convenience are referred to in this report as the ‘Unrestricted (General) Fund’.
Objects of the Charity applying equally to all of its Funds
The Deed of Trust provided that all of the Charity’s assets, including the Livery and Freemen Fund, were unrestricted as to purpose and therefore could be used to further any aspects of the Charity’s Objects. The only difference between the Unrestricted (General) Fund and the Livery and Freemen Fund was that, if donating to the Livery and Freemen Fund, a donor could stipulate that his or her donated capital was to be applied for a restricted purpose within the Charity’s Objects.
The Unrestricted (General) Fund: sources of income
The income of the Unrestricted (General) Fund is constituted by donations by members of the Merchant Taylors’ Company, and bank deposit interest.
Sub-division of The Livery and Freemen Fund
The Livery and Freemen Fund: Endowment Fund
By Resolution of 7 March 2012, the Trustees noted the following:
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They had sought advice from a committee comprised of donors to the Livery and Freemen Fund
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the capital of the Livery and Freemen Fund (or ‘endowment fund’) is not a permanent endowment, and is expendable under the provisions of the Trust Deed and is understood by donors to be so;
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that, pursuant to the advice of the donors’ committee, the Trustees wished to accumulate income generated by that capital “in consideration of future beneficiaries…. thereby augmenting donations to the capital element of the trust with a view to it becoming a sizeable fund, generating a significant on-going income.”
Accordingly, a Supplemental Deed dated 16 July 2012 made further provision about the capital in the Livery and Freemen Fund. In its preamble, the Supplemental Deed referred to the capital in the Livery and Freemen Fund as ‘endowment’. The Supplemental Deed allowed the Trustees to accumulate income generated by the capital in the Livery and Freemen Fund, and add it to that capital, for up to 21 years. This period is due to expire on 15 July 2033.
The operative clause in the Supplemental Deed which effected this change reverted to the terminology of ‘any capital of the Livery and Freemen Fund’, rather than ‘endowment’. However, since then the Trustees have tended to refer to that element of the Charity’s assets as The Livery and Freemen Fund: Endowment Fund , and that is the name by which it is referred to in this report.
The income of The Livery and Freemen Fund: Endowment Fund comes partly from listed
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
investments, and partly from donations by members of the Merchant Taylors’ Company. The Charity’s social investment in Fair by Design comes from The Livery and Freemen Fund: Endowment Fund.
The Livery and Freemen Fund: Income Fund
That part of the Livery and Freemen Fund which is not the Endowment Fund is known as The Livery and Freemen Fund: Income Fund. Its income comes from donations by members of The Merchant Taylors’ Company, and the Company itself.
Appointment of Trustees
The Trustees are appointed by resolution of the existing Trustees from the membership of the Merchant Taylors’ Company, with particular regard had to skills and needs at the time. The Trustees are also Trustees of a number of other grant-making charities with similar associations with the Merchant Taylors’ Company.
Induction and training of Trustees
Trustees are given a comprehensive induction pack covering key matters such as the Charity’s Objects, grant-making policy, and sources of income. They are offered at least one opportunity each year to receive training, either by Merchant Taylors’ Company staff or external speakers. Trustees have access to the governing document, previous minutes, and Charity Commission guidance. They are also supported by qualified and experienced staff based at Merchant Taylors’ Hall. Further advice and guidance is offered to the Trustees through a system of committees within the Company, culminating with the Court of the Merchant Taylors’ Company.
Decision-making and delegation
At the start of each Trustees meeting, the Chairman asks the Trustees to declare any personal interest which might directly or indirectly cause them a conflict. If a Trustee does declare an interest, they do not participate in any decision where that interest is relevant nor do they count towards the quorum at the time of taking such decision.
Members of the Merchant Taylors’ Company’s Charities Committee who are not Trustees are invited but not obliged to attend Trustees’ meetings. If they attend, it is always in an observer capacity only, ie non-speaking and non-voting.
Management Personnel
The Charity does not employ management personnel but receives the services of Bradestrete Services Limited, a subsidiary of the Merchant Taylors’ Company, to provide all administrative functions.
Related Parties
The Trustees are all members of the Merchant Taylors' Company, which administers this Charity. Some of the Trustees may be connected to one or more of the organisations that received grants during the year. However, as all grants are approved on a majority basis by the members of a separate committee, the Trustees do not believe that such connections impact on the grant-making process.
Bradestrete Services Limited, a connected party, incurred administration, establishment and management expenses during the year on behalf of this Charity.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS
CHARITY NAME: The Merchant Taylors’ Company Charities Fund REGISTERED CHARITY NUMBER: 1069124 (registered with the Charity Commission for England and Wales) ADDRESS: Merchant Taylors’ Hall 30 Threadneedle Street London, EC2R 8JB TRUSTEES: Mr R A D Sullivan (Chairman) Mr R J A Bull Mr D Jackson (Appointed 11th June 2020) Revd Canon R Godsall (Appointed 11th June 2020) Mr A G Moss (Resigned 11th June 2020) Mr J A J Price (Resigned 11th June 2020) Dr J J Oram FRCP (Resigned 11th June 2020) CHIEF EXECUTIVE OFFICER: Rear Admiral J R H Clink CBE BANKERS: Royal Bank of Scotland PLC 62 Threadneedle Street London, EC2R 8LA INVESTMENT MANAGERS: Rathbone Investment Management Ltd 8 Finsbury Circus London, EC2M 7AZ INDEPENDENT EXAMINER: Cara Turtington FCA, DChA Saffery Champness LLP 71 Queen Victoria Street London, EC4V 4BE SOLICITORS: Charles Russell Speechlys LLP 5 Fleet Place London, EC4M 7RD
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors’ Company Charities Fund
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The 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 state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
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, the applicable Charities (Accounts and Reports) Regulations and the provisions of the governing documents. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Report of the Trustees was approved by the Trustees on the and signed on their 28/07/2021 behalf.
(If I type or otherwise electronically sign my name, I confirm that I intend to authenticate this document by so doing)
Trustee:
RAD Sullivan
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The Merchant Taylors’ Company Charities Fund
INDEPENDENT EXAMINERS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
I report to the Trustees on my examination of the accounts of The Merchant Taylors’ Company Charities Fund (the Charity) for the year ended 31 December 2020.
Respective Responsibilities of Trustees and examiner
As the Charity Trustees of the Charity 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 Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
The Charity’s gross income exceeded £250,000 and I am qualified to carry out the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed:
30/07/2021
Cara Turtington FCA, DChA Saffery Champness LLP Chartered Accountants 71 Queen Victoria Street London EC4V 4BE
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The Merchant Taylors' Company Charities Fund
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Income and endowments from: Donations and legacies 2 Charitable activities Investments 3 Total income and endowments Expenditure on: Raising funds Investment management costs Fundraising event costs Charitable activities Grants and donations 4 Grant related support costs 5 Total expenditure Net gains on investments Realised & Unrealised Investment assets 6 Net income for the year and movement in funds Fund balances brought forward at 1 January 2020 Fund balances carried forward 31 December 2020 |
Unrestricted (General) fund £ 12,215 - 44 |
Income fund £ 140,220 - - Livery and |
Expendable Endowment fund £ 63,573 - 32,513 96,086 4,986 - 4,986 - - - 4,986 124,131 124,131 215,231 Freemen Fund 1,598,230 1,382,999 |
Total 2020 £ 216,008 - 32,557 248,564 4,986 1,542 6,528 58,121 84,540 142,661 149,189 124,131 124,131 223,507 1,676,488 1,452,981 |
Total 2019 £ 268,728 3,548 33,277 |
|---|---|---|---|---|---|
| 12,259 | 140,220 | 305,553 | |||
| - - |
- 1,542 |
7,975 8,003 |
|||
| - 7,670 22,626 |
1,542 50,451 61,914 |
15,978 86,225 117,468 |
|||
| 30,296 | 112,365 | 203,693 | |||
| 30,296 | 113,907 | 219,671 | |||
| - | - | 157,447 | |||
| - | - | 157,447 | |||
| (18,038) 37,973 |
26,314 32,009 |
243,329 1,209,652 |
|||
| 19,936 | 58,323 | 1,452,981 |
All income and the net movement in funds are derived from continuing activities.
The notes on pages 16 to 27 form part of these financial statements.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
BALANCE SHEET AS AT 31 DECEMBER 2020
| Note £ £ Fixed assets Investments 6 1,362,856 Fair By Design 163,627 Current assets Debtors 7 22,266 Cash at bank 140,964 163,229 Creditors: amounts falling due within one year Net current assets 150,005 1,676,488 1,676,488 Funds Livery and Freemen Fund: Endowment fund 9 1,598,230 Livery and Freemen Fund: Income fund 10 58,323 Unrestricted (General) fund 11 19,936 12 1,676,488 8 13,225 1,526,483 2020 |
£ £ 1,246,811 97,159 74,178 69,474 143,652 109,011 1,452,981 1,452,981 1,382,999 32,009 37,973 1,452,981 34,641 1,343,970 2019 |
£ £ 1,246,811 97,159 74,178 69,474 143,652 109,011 1,452,981 1,452,981 1,382,999 32,009 37,973 1,452,981 34,641 1,343,970 2019 |
|---|---|---|
| 109,011 1,343,970 |
||
| 1,452,981 | ||
| 1,452,981 | ||
| 1,382,999 32,009 37,973 |
||
| 1,452,981 |
28/07/2021 These financial statements were approved by the Trustees on
Trustee
The notes on pages 16 to 27 form part of these financial statements.
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The Merchant Taylors' Company Charities Fund
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
These 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)) and the Charities Act 2011.
1.1 Accounting convention
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on an accruals basis under the historic cost convention, with the exception of investments which are stated at market value.
The Charity constitutes a public benefit entity as defined by FRS102.
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 the SORP rather than Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) which has been withdrawn
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Income and endowments
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. All incoming resources are included in the Statement of Financial Activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Donations and legacies are included in full in the statement of financial activities when receivable.
For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Charity or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
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The Merchant Taylors' Company Charities Fund
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020
1.4 Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on raising funds comprises those costs directly attributable to managing the investment portfolio and raising investment income.
Expenditure on charitable activities includes those costs incurred by the Charity in the delivery of its objectives. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grants are payments made to third parties in the furtherance of the charitable objects of the Charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grant awards that are subject to the recipient fulfilling
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
The provision for an multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award. There are no unfulfilled performance conditions under the control of the Charity that would permit the Charity to avoid making future
Allocation of support and governance costs
Support costs have been allocated between the governance costs and other support costs.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs related to independent examiner fees and legal fees together with an apportionment of overhead and support costs.
Governance costs and support costs relating to charitable activities have been apportioned based
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The Merchant Taylors' Company Charities Fund
ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020
1.5 Fixed asset investments
Investments are stated at market value at the balance sheet date. Net gains and losses arising on revaluation and disposals throughout the year are taken to the Statement of Financial Activities.
1.6 Social investments
The charity invests in funds considered to have social value and these are classed as mixed motive investments. They are accounted for at fair value based on the charity’s share of underlying net assets. Any movement in fair value is accounted for as an unrealised investment gain or loss in the statement of financial activities.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Funds
The Unrestricted (General Fund) and the Livery and Freemen Fund: Income Fund represent income available for expenditure in the reporting period. The Livery and Freemen Fund: Endowment Fund is an expendable endowment for the principal purpose of generating income for accumulation and reinvestment.
1.9 Financial instruments
The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially measured at transaction value and subsequently measured at their settlement value.
1.10 Taxation
The Charity is a registered charity and is not liable to United Kingdom income tax or corporation tax on charitable activities.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 2 Donations and legacies Donations from Merchant Taylors' Company Donations from individuals 3 Investments Income from listed investments Deposit interest |
2020 £ 90,919 125,089 216,008 2020 £ 32,513 44 32,557 |
2019 £ 87,750 180,978 |
|---|---|---|
| 268,728 | ||
| 2019 £ 33,195 81 |
||
| 33,277 |
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
4 Grants and donations
| 4 Grants and donations |
|
|---|---|
| Unrestricted donations Church & Clergy St Michael's Church Cornhill St Paul's Church Swanley St Margaret's Lee St Helen's Bishopsgate |
2020 2019 £ £ 770 500 1,000 500 1,000 1,000 2,000 2,000 |
| Friends of St Paul's Cathedral | 1,000 - |
| Wallingford School Outward Bound Merchant Taylor's School Outward Bound Clergy Support Trust Education St Paul's Cathedral Choir School Guildhall School of Music |
- 150 - 4,200 - 1,000 1,000 1,000 6,000 - |
| John Harrison Prize The Bespoke Tailors' Benevolent Association |
500 500 5,000 - |
| Write off of donations accrued and not paid from 2015 Total unrestricted donations Livery & Freemen donations Magic Breakfast The Sheriffs' and Recorders' Fund Bowhaven Chichester Cathedral R&D Trust Invincible Me Resurgo Clergy Support Trust The Bespoke Tailors' Benevolent Association Guildhall School of Music and Drama Friends of St Paul's Cathedral Other donations Write off of donations not paid Total Donations |
(10,600) 7,670 10,850 10,000 10,000 2,000 1,000 13,951 50,000 2,500 - 10,000 5,000 10,000 10,000 2,000 - - 2,500 - 6,000 - 1,000 - 275 - (10,400) 58,121 86,225 - |
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
5 Grant related support costs
| ant related support costs | ||
|---|---|---|
| Management fees Insurance Bank charges Sundry expenses Governance costs: Independent examiner's remuneration: - Statutory report - current year - Special review work (Fair by Design) - Statutory report - prior year over provision Professional fees |
2020 £ 79,116 485 1,969 (30) 2,500 - 500 - 84,540 |
2019 £ 99,882 529 1,500 2,221 2,500 2,550 1,200 7,087 |
| 117,468 |
Trustees received no remuneration (2019: £nil) and were not reimbursed for any of their expenses in the year (2019: £nil). The Charity had no employees during the current or prior year.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 6 Fixed asset investments Listed investments 2020 £ Market value at 1 January 2020 1,246,811 Add: Additions 24,745 Disposals (51,420) Movement in cash 54,324 Net realised / unrealised gains 88,396 Market value at 31 December 2020 1,362,856 Social investments £ Fair value at 1 January 2020 97,159 Add: Additions 30,732 Net realised / unrealised gains 35,735 Fair value at 31 December 2020 163,626 7 Debtors 2020 £ Accrued income and tax recoverable 20,390 Prepayments - Other debtors 1,876 22,266 Other debtors include the following balance with connected parties: 2020 £ Bradestrete Services Limited 247 Merchant Taylors' Company 1,629 1,876 8 Creditors: amounts falling due within one year 2020 £ Creditors 92 Grants and donations payable - Accruals and deferred income 3,930 Other creditors 9,203 13,225 |
2019 £ 1,060,955 233,445 (50,733) (154,302) 157,447 |
|---|---|
| 1,246,811 | |
| £ - 97,159 - |
|
| 97,159 | |
| 2019 £ 73,733 - 445 |
|
| 74,178 | |
| 2019 £ - 445 |
|
| 445 | |
| 2019 £ 3,171 14,700 3,808 12,962 |
|
| 34,641 |
Other creditors includes the following balances with connected parties:
| Bradestrete Services Limited Dudley and Geoffrey Cox Charitable Trust |
2020 £ 8,903 300 9,203 |
2019 £ 12,662 300 |
|---|---|---|
| 12,962 |
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9 Livery and Freemen Fund: Endowment Fund
| Movement in | fund | |||||
|---|---|---|---|---|---|---|
| Balance | Net | Balance | ||||
| 1 Jan 2020 | Income | Expenditure | gains | 31 Dec 2020 | ||
| £ | £ | £ | £ | £ | ||
| Livery Fund: |
and Freemen Endowment Fund |
1,382,999 | 96,086 | (4,986) | 124,131 | 1,598,230 |
The function of the fund is explained on page 7 of the Trustees' Annual Report.
All realised and unrealised movements in the value of investments have been added to or deducted from the capital value of the Charity.
10 Livery and Freeman Fund: Income Fund
The function of the fund is explained on page 4 of the Trustees' Annual Report.
Movement in fund
| Movement | in fund | ||||
|---|---|---|---|---|---|
| Balance | Balance | ||||
| 1 Jan 2020 | Income | Expenditure | 31 Dec | 2020 | |
| £ | £ | £ | £ | ||
| Livery and Freemen Fund: Income Fund |
32,009 | 140,220 | (113,907) | 58,323 |
The grant-making policy is determined by the Trustees from time to time and in such proportions as they agree.
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
11
Unrestricted (General) fund
| nrestricted (General) fund | ||||
|---|---|---|---|---|
| Movement in fund | ||||
| Balance | Balance | |||
| 31 Dec 2020 | Income | Expenditure | 31 Dec 2020 | |
| £ | £ | £ | £ | |
| Unrestricted (General) fund | 37,973 | 12,259 | (30,296) | 19,936 |
The annual income is applied as agreed by the Trustees in furtherance of the Charity's charitable purposes.
12 Analysis of net assets between funds
| Investments Net current assets Balance at 31 December 2020 |
Livery and Freemen Fund £ £ £ - - 1,526,483 19,936 58,323 71,747 19,936 58,323 1,598,230 Unrestricted (General) fund Income fund Endowment fund |
Total £ 1,526,483 150,005 |
|---|---|---|
| 1,676,488 |
13
Related party transactions
Bradestrete Services Limited, a connected party, incurred administration, establishment and management expenses during the year on behalf of this Charity amounting to £79,116 (2019: £99,882).
Some of the Trustees may be connected to one or more of the organisations that received grants during the year. However, as all grants are approved on a majority basis by the members of a separate committee the Trustees do not believe that such connections impact on the grantmaking process.
The Trustees are all members of the Merchant Taylors' Company, which administers this Charity.
The balances due to and from the other charities administered by the Merchant Taylors' Company at 31 December 2020 are disclosed in notes 8 and 9 to the financial statements.
14
Capital Commitments
Capital commitments contracted but not provided for in relation to the Fair by Design investment total £72,109 (2019: £102,841).
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Comparative information Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments Total income and endowments Expenditure on: Raising funds Investment management costs Fundraising event costs Charitable activities Grants and donations payable Grant related support costs Total expenditure Net gains on investments Realised & unrealised Investment assets Net movement in funds Fund balances brought forward at Fund balances carried forward 01 January 2019 31 December 2019 |
Unrestricted (General) fund £ 18,480 - - 82 18,562 - - - 10,850 31,068 41,918 41,918 - - (23,356) 37,973 61,329 |
Income Endowment fund fund £ £ 180,106 70,143 3,548 - - - - 33,195 183,654 103,338 - 7,975 8,003 - 8,003 7,975 75,375 - 79,384 7,016 154,759 7,016 162,762 14,991 - 157,447 - 157,447 20,892 245,793 32,009 1,382,999 11,117 1,137,206 Livery and Freemen Fund |
Total 2019 £ 268,728 3,548 - 33,277 |
|---|---|---|---|
| 305,553 | |||
| 7,975 8,003 |
|||
| 15,978 86,225 117,468 |
|||
| 203,693 | |||
| 219,671 | |||
| 157,447 | |||
| 157,447 | |||
| 243,329 1,209,652 |
|||
| 1,452,981 |
15 Comparative information
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
15 Comparative information (continued)
| Movement in fund | ||||||
|---|---|---|---|---|---|---|
| Balance | Net | Balance | ||||
| 1 Jan 2019 | Income | Expenditure | gains | 31 Dec 2019 | ||
| £ | £ | £ | £ | £ | ||
| Livery Fund: |
and Freemen Endowment Fund |
1,137,206 | 103,338 | (14,991) | 157,447 | 1,382,999 |
The function of the fund is explained on page 7 of the Trustees' Annual Report.
All realised and unrealised movements in the value of investments have been added to or deducted from the capital value of the Charity.
Livery and Freeman Fund: Income Fund
The function of the fund is explained on page 4 of the Trustees' Annual Report.
| Movement | in fund | ||||
|---|---|---|---|---|---|
| Balance | Balance | ||||
| 1 Jan 2019 | Income | Expenditure | 31 Dec | 2019 | |
| £ | £ | £ | £ | ||
| Livery and Freemen Fund: Income Fund |
11,117 | 183,654 | (162,762) | 32,009 |
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DocuSign Envelope ID: 0BA715B2-AF34-4359-85FB-30E6BE7E5B6B
The Merchant Taylors' Company Charities Fund
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
15 Comparative information (continued)
| Movement in fund | Movement in fund | ||||
|---|---|---|---|---|---|
| Balance | Balance | ||||
| 01 Jan 19 | Income | Expenditure | 31 Dec | 2019 | |
| £ | £ | £ | £ | ||
| Unrestricted (General) fund | 61,329 | 18,561 | (41,918) | 37,973 |
| Investments Creditors due after more than one year Net current assets Balance at 31 December 2019 |
£ - (200) 38,173 37,973 Unrestricted (General) fund |
Livery and Freemen Fund £ £ - 1,343,970 200 - 31,809 39,029 32,009 1,382,999 Income fund Endowment fund |
Total £ 1,343,970 - 109,011 |
|---|---|---|---|
| 1,452,981 |
27