Charlty Commlsslon Reference Number: 1076925
The Brian Mercer Trust
Annual Report and Financial Statements
For the Year Ended 5 April 2023

The Brian Mercer Trust
Financial Statements
For the Year Ended 5 Aprll 2023
Contents
Pages
Reference and administrative information
Report of the Trustees
2to6
1. Structure, governance, management
2. Risk management
3. Ethical Investing
4. Objectives and activities for the public
benefit
5. Grant making policy
6. Monitoring achievement
7. Fundraising
8. Financial review
9. Investment policy
10. ReseNes
11. Future plans
12. Grant Awards
13. Covid-19
Statement of Financial Activities
Balance Sheet
Cashflow Statement
Notes to the Financial Statements
IOto14
Independent Auditors, Report
15to17

The Brian Mercer Trust
Reference and Administrative Details
Trustees
R P T Duckworth (Chairman)
CJ Clancy
M A E T Clitheroe (resigned 19 january 20231
K J Merrill
Secretsry to the trustees
CKay
Accountants
Beever and Struthers
Suite 9b
The Beehive Lions Drive
Shadsworth Business Park
Blackburn
Lancashire
BBI 2QS
Investment Manager5
Sarasin and Partners LLP
100 St Paul's Churchyard
London
EC4M 8BU
Banker5
Lloyds Bank
Church Street
Blackburn
Lancashire
BB2 IJQ
Auditors
MHA Moore & Smalley
9 Winckley Square
Preston
Lancashire
PRI 3HP
Principal address of the charity
Suite 9b
The Beehive Lions Drive
Shadsworth Business Park
Blackburn
Lantashire
BBI 2QS
Charity Number
1076925
Pagel I

The Brian Mercer Trust
Trustees, Report (continued)
For the Year Ended 5 Aprll 2023
The trustees present their annual report and audited financial statements for the year ended 5 April
2023. The financial statements have been prepared in accordance with Financial Reporting Standard
102 and the Charities SORP and in compliance with the Charities Act 2011.
The financial statements have been prepared in accordance with the actounting policies set out in
notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and
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 published in October 2019.
I. STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trust is a registered charity, charity number 1076925, and was established under a Declaration of
Trust dated 5 July 1999. The trust was established in 1998 following the wishes of Dr Brian Mercer.
The trust does not actively fundraise and seeks to continue the charitable work desired by the donor
through the careful stewardship of its existing resources.
New trustees are appointed by the existing trustees by resolution. There are no fixed terms under
which trustees must serve or seek re-appointment. The trustees meet at least four times a year and
agree the broad strategy and areas of activity for the Trust, reviewing all areas including grant making
and investment policy. The day to day administration of the charity is dealt with primarily by K J Merill,
one of the trustees. He is assisted by the secretary of the trustees.
On appointment new trustees receive a formal induction which provides a brief history of the Trust,
copies of meeting minutes (where relevant), copies of previous yearfs annual reports and accounts, a
copy of the governing trust deed. Guidance is also provided on investments and the grant making
process. All trustees are able to access further training to aid them in their duties and improve the
management of the Trust. This is available through the National Council for Voluntary Organisations
INCVOI, of which the Trust is a member, or other sources.
All trustees give of their time freely and are unpaid. Details of trustee expenses and related party
transactions are disclosed in note 4 to the accounts. Trustees are reqLJired to disclose all relevant
interests and register them with the board of trustees and in accordance with the Trust's policv
withdraw from decisions where a conflict of interest arises.
2. RISK MANAGEMENT
The trustees have considered the major risks to which the charity is exposed and have reviewed those
risks and established systems and procedures to manage those risks.
The trustees consider the principal risk that the trust faces is the variability in performance of the
investment portfolio and recent macro-economic events creating volatility in world stock markets
have demonstrated this risk. To mitigate the risk the trustees have appointed Investment Managers
who manage the investment portfolio on their behalf. The trustees meet with the Investment
Managers, and receive investment reports, on a regular basis to review financial performance and to
discuss potential future investment returns.
Pagel 2

The Brian Mercer Trust
Trustees, Report (continued)
For the Year Ended 5 Aprll 2023
3. ETHICAL INVESTING
The trust is a signatory to the Funders Commitment on Climate Change. Investment policy is consistent
with Environment, Social and Governance IESGI principles, notably excluding any investments in fossil
fuel industries.
4. OBJECTIVES AND ACTIVITES FOR THE PUBLIC BENEFIT
Charitable objects
al Prevention of, or relief from, disadvantage and suffering resulting from poverty, ill-health,
or other causes globally.
bl Promotion of visual arts, and artistic talent especially in the North West of England.
cl Support for charitable community initiatives local to Blackburn, Lancashire.
dl Furtherance of any other charitable purposes in any part of the world as the Trustees may
in their absolute discretion think fit.
5. GRANT MAKING POLICY
The Trust '.
is proactive in seeking out effective organisations to support and less reliant on responding to
applicants who have sought out the Trust.
Prioritises applications that are supported by evidence of cost-effectiveness
Provides feedback to unsuccessful applicants, explaining the reasons for trustees, decision
within 48 hours of the meeting.
In order to be fully transparent about grants made and to assist potential grant applicants, the Trust
now publishes comprehensive data through 360 Giving which details all grants made. Data includes
the name of the grantee, nature of the grant, amount Eranted and duration of grant. A link to 360
Giving data is provided on the Trust's website.
How our grant programmes delivered public benefit..
Trustees are confident that the Trust's objectives are wholly charitable and that the means of selecting
causeslorganisations to fund meet the requirements of the best advice available.
Examples of grants made are provided below..
Prevention and Relief of Human Suffering
A further commitment of £300,000 was made to Medecins Sans Frontiere, a large charity that provides
hum3nit3rian medical care. £IOO,(X)O is to be paid per annum for the next three years.
Page | 3

The Brian Mercer Trust
Trustees, Report (continued)
For the Year Ended 5 Aprll 2023
A further commitment of £150,000 was made to Against Malaria Foundation, a United Kingdom based
charity that provides long lasting insecticidal nets to populations at high risk of Malaria, primarily
Africa. This grant is to be paid over the next three years.
Arts
A further grant of £20,000 was made to The Whitaker Museum and Art Gallery, a small museum in
Rossendale offering modern art exhibitions.
A three year Commitment of £15,000 per annum was made to Blaze Arts, a youth led arts charity in
Lancashire.
Causes Local to Blackburn Lancashire
The Trust continues to support local causes. A further grant of £75,0001£25,000 per annum over the
next three years) was made to Blackburn Youth Zone, a 21" Century inclusive youth hub in the centre
of Blackburn.
Payments amounting to £34,420 were also made to The Community CVS, a membership based
organisation which exists to promote, develop and support voluntary and community action in the
borough of Blackburn with Darwen.
Climate Change
Commitments were made to Client Earth, Greenpeace and Oxfam, large charities that are campaigning
to change the world for the better. One off payments of £25,000 each were made and a three year
commitment of £75,000 to each charity.
6. MONITORING ACHIEVEMENT
Trustees are aware of the limitations of being able to effectively monitor the achievements of their
grant giving. Nevertheless, the following procedures are applied..
Where large grants are given there is special attention to independent evidence of effectiveness
before the grant is made. A meeting is usually held with senior personnel of the organisation. Brief
written feedback is required annually and a more rigorous review using evidence from external
sources le.g. charity evaluators) made every three years, before the grant is reviewed.
In the case of smaller organisations las for example Blackburn Youth Zone) Trustees have developed
close working relationships with the organisations themselves and are actively involved in reviewing
the activities of the organisations.
7. FUNDRAISING
The Charity does not do any fundraising activities.
8. FINANCIAL REVIEW
The Trust's work is entirely reliant on income and investment returns from its endowments. The funds
held by the Trust have derived from the estate of the late Brian Mercer who died on 22 November
1998.
PaEe14

The Brian Mercer Trust
Trustees, Report (continued)
For the Year Ended 5 Aprll 2023
The Trustees have placed funds for investment with Sarasin and Partners LLP. During the year the
Trust has made unrealised investment losses of £2,662,676 reflerting the movement in stock markets
12022.. unrealised investment gains of £917,780 were madel. At 5 April 2023 the funds invested were
valued at £36,023,90212022.. £38,628,859).
During the year, the trustees paid and agreed grants for charitable purposes amounting to £1,088,077
12022.. £918,206). Grants are made in accordance with decisions reached after discussions at meetings
of the Trustees and after taking advice, where appropriate.
9. INVESTMENT POLICY
Investments are held in the name of a nominee company. The trustees, policy is to invest for a
combination of capital growth and income.
The trustees make use of the advice and support of their investment managers, Sarasin and Partners.
The performance of the fund is reviewed frequently with the investment managers and investment
reports are discussed at trustee meetings. Future performance is considered after taking due advice
from the investment manager.
The trustees have a written investment policy which is regularly reviewed and updated as necessary.
10. RESERVES
The trustees aim to maintain cash reserves at a level which equates to approximately twelve Months
of charitable expenditure, including grant commitments. The trustees consider that this level will
provide sufficient funds to meet the Trust's charitable commitments and ensure that there are
sufficient funds available to cover governance costs. Unexpected expenditure or costs arising from an
urgent need can be met from ongoing investment income. Future applications for grants will be
considered in line with the grant making polity and will be funded from the investment return as
resources allow.
The balance held in cash reserves at 5 April 2023 was £600,149 12022 '.£215,6931, against grant
commitments and anticipated governance costs of £1,100,000. However, if there is a shortfall in cash
reserves, then Sarasins will sell a number of investments and transfer the appropriate level of cash to
the Trust bank account.
Although the trustees are empowered to use both the income and capital of the trust in furtherance
of the objects of the trust, the trustees have resolved to make charitable distributions out of the
income of the Trust thereby maintaining the capital of the trust. The trustees may invest the funds of
the Trust in any lawful manner.
11. FUTURE PLANS
At their meeting on April 13 2022, trustees decided to commit approximately 50Yo of funding from the
'Prevention and Relief of Human Suffering" category towards issues that address climate change.
12. COVID-19
In 2022123 the impact of Covid-19 to the Charity has been minimal. The Charity has been able to meet
all grant obligations easily due to the level of funds held in the bank.
Page | 5

The Brian Mercer Trust
Trustees, Report (continued)
For the Year Ended 5 Aprll 2023
Trustees. responsibilities for the financial statements
The trustees are responsible for preparing the Report of the Trustees 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..
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP,.
make judgements and estimates that are reasonable and prudent,.
state whether applicable accounting standards have been followed, subject to any material
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 operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the Trust and enable them to ensure that the financial
statements comply with applicable law. They are also responsible for safeguarding the assets of the
charity and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
0510212024
Approved by the trustees on
and signed on their behalf bv-
Kl-
K J Merrill
Trustee
Pagel 6

The Brian Mercer Trust
Statement of Flnancial Activities
For the Year Ended 5 Aprll 2023
Unrestricted Funds
2023
2022
Notes
Income and endowments from:
Investments
1.319,934
1,315,044
Total Income
1,319,934
1,315,044
Expenditure on:
Raising Funds
Charitable Activities
151,289
1,108,545
156,802
938,565
Totsl Expenditure
1,259,834
1,095,367
Net gains/llossesl on investments
Net incomellexpenditurell m¢)vement in funds
12,662,6761
12,602,5761
917,780
1,137,457
Reconclllation of funds
Total funds brought forward
Total funds carried forward
38,011,597 36,874,140
35,409,021 38,011,597
The notes on page5 10 to 14 form an integral part of these accounts
Pagel 7

The Brian Mercer Trust
Balance Sheet
For the Year Ended 5 Aprll 2023
Notes
2023
2022
Fixed assets
Investments
36,023,902
38,628,859
Current assets
Debtors
Cash at bank and in hand
29,970
600,149
630,119
32,229
215,693
247,922
Liabilities
Creditors.. Amounts falling due
within one year
1602,0001
1579,1841
Net current assets
28,119
1331,2621
Totsl assets les5 current
36,052,021
38,297,597
Creditors.. Amounts falling due
after more than one year
Net assets
1643,0001
35,409,021
1286,0001
38,011,597
Funds
Unrestricted in¢ome funds
General fund
35,409,021
38,011,597
0510212024
Approved by the Trustees on
and signed on their behalf by..
Kl- IltsJ
K J Merrill
Trustee
PaEe18

The Brian Mercer Trust
Cashflow Statement
For the Year Ended 5 Aprll 2023
Notes
2023
2022
Cash flow from operating activities
1877,7591
1864,2031
Net cash flow from operating
activites
1877,7591
1864,2031
Cash flow from investing activities
Payments to acquire investments
Investment income received
157,7191
1,319,934
1955,9171
1,315,044
1,262,215
359,127
Net increasel Idecreasel in cash
and cash equivalents
384,456
1505,0761
Cash and cash equivalents at 5
April 2022
Cash and cash equivalents at 5
April 20223
215,693
720,769
600,149
215,693
Reconciliation of net income/ {expenditurel to net cash flow from operation activities
2023
2022
Net
incomellexpenditurel
in the year
12,602,576)
1,137,457
Investment income
received
IGainslllosses on investments
Ilncreaselldecrease in debtors
IDecreaselllncrease in
creditors
11,319,934)
2,662,676
2,259
11,315,044)
1917,7801
12,3001
379,816
233,464
877,759
864,203
Cash and cash equlvalents
2023
2022
Cash al bank and in
hand
600,149
215,693
Cash and cash equlvalents at S Aprll
600,149
215,693
PaEe19

The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 Aprll 2023
Ac¢ountlng Policies
Basls of preparation
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been
prepared in accordance with AccountinE and ReportinE 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 issued in October 2019, the Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland IFRS 1021. the Charities Act 2011 and UK Generally
Accepted Accounting Practice.
The financial statements have been prepared to give a 'true and fairf 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 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 i55ued in October 2019 rather than the
Accounting and Reporting by Charities: Statement of Recommended Practice effective from l April 2005
which hès since been withdrawn.
The financial statements are prepared on a going concern basis under the historical cost convention,
modified to include certain items at fair value. The financial statements are presented in sterling which is
the functional currency of the charity and rounded to the nearest £.
The significant accounting policie5 applied in the preparation of these financial statement5 are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.
Funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general
objectives of the charity and which have not been designated for other purposes.
Incoming resources
Investment income is accounted for in the period in which the charity is entitled to receipt and the amount
can be measured with reasonable certainty. Other income is accounted for on an accruals basis as far as it
is prudent to do so.
Resources expended and Irrecoverable VAT
Liabilities are recognised a5 resource5 expended a5 500n as there 15 a legal or constructive obligation
committing the Trust to the expenditure. All expenditure is accounted for on an accruals basis and has been
classified under headings that aggregate all costs related to that categorv.
All expenditure is directly allocated to the relevant ￿tegorIeS and no apportionments are considered
necessary.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Raising fund5
The costs of raising funds consist of investment management fees
Page | 10

The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 Aprll 2023
Charitable artivities- Grants payable
Grants payable are payments and commitments made to third parties in the furtherance of the charitable
objectives of the trust. Grant commitments are recognised when a constructive obligation arises that results
in payment being unavoidable. In accordance with the Charities SORP, grants are therefore accoLJnted for
once the offer has been made in writing.
Charltable actlvltles- Governance costs
Governance costs comprise all costs involving the public accountability of the Trust and its compliance with
statutory regulation and constitutional good practice. These are analysed in detail in note 4 to the financial
statements.
Taxation
As a registered charity, the Trust is generally exempt from Income Tax and Capital Gains Tax, but not from
VAT.
Investments
All investments are carried at their fair market value. Investments in equities and fixed interest securities are
all traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market
value, using the mid price. Asset sales and purchases recognised 8t the date of trade at cost (that is their
transaction value). Reali5ed and unreali5ed gains and losse5 are taken to the Statement of Financial Activities.
Investment income has been taken into account on the basis of due date of payment.
i.io
Judgements and key sources of estimation uncertainty
There have been no significant judgements (apart from those involving estimates) made in the process of
applying the accounting policies.
There have been no key a55umptions concerning the future and other key sources of estimation uncertainty
at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
Investment income
2023
2022
Income from UK listed investments (before deduction of fees)
Interest receivable on short term deposit5 and cash at bank
1,316,314
3,620
1.319.934
1,314,931
113
1,315.044
Raising Funds
2023
2022
Management Fees
Earned on Sarasin funds
Rebate
Net fees charged
272,905
1121,6161
151,289
288.413
1131,6111
156,802
S3rasin and Partners LLP charge fees to underlying investment funds in excess of the fee charges agreed with
the trustees and a rebate of the excess fees is therefore made.
Page | 11

The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 Aprll 2023
Charltable Actlvltles
2023
2022
Grants Payable
1,088,077
918,206
Governance Costs
Total Charitable Activities
2023
2022
Analysls of Grants Payable
Intercare
Age UK Blackburn with Darwen
Chase Africa
Drugs for Neglected Diseases
Pragya
Te3m Keny3
LUV Lepr05y
African Adventure Foundation
BFC Barefoot College
wsv
Adami Project
SightS3vers
Love Russia
Re-cyele
Kids Club Kampa13
Play Action International
Police Community Clubs of Great Britain
Haslingden High Schtsol
Bacup & Rawtenstall Grammar School
Runshaw College
Hope Health Action
Hello World
Cure International
Friends of Monze
Power for the People
Hope Foundation
Ring20 Research & Support
Carer's Worldwide
Deki
Practical Tools Initiative
CSEF Moneywi5e
Adrienne Seed
St Mary's Sixth Form College
Clitheroe Royal Grammar School
The Making Rooms
Lancashire Sailing School
The Whitaker
Festival of Making
30,000
50,000
30,000
150,000
30,000
30,000
16,000
20,000
30,000
25.000
18,000
300,000
11,000
7.000
15,000
14,114
3,750
2.500
2,500
2,500
5,500
15,000
4,350
2,140
15,000
3.000
12,500
14,723
5,000
15.000
4,000
2,979
2,500
2,500
14,600
6,050
6,000
58,400
15,000
15,000
4,0
12611
14,600
20,000
30,000
Page | 12

The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 Aprll 2023
Client Earth
81aze Arts
Greenpeace
Oxfam
Cure International
Samaritans
Power for the People
Raising Futures Kenya
Cleanup Uk
Living Paintings Trust
Hutton Grammar School
Community Voluntary Service ICVSI
Stanley Grange Community Association
Open Eye Museum
81ackburn Youth Zone
Against Malaria Foundation
Nightsafe
Medecins Sans Frtsntiere
Legs4Africa
Tate Museum (reversal of commitment)
Blackburn with Darwen BC (reversal of commitment)
iOO,O(M)
45,000
ioo,o
ioo,o
9,0(K)
15,000
30,000
30,000
3,0(K)
2,0(K)
2,5(X)
110,6621
2,5¢Y)
127.0001
95,000
150,0(K)
75,000
300,0(K)
30,000
140,0001
180,0001
1,088,077
918,206
Analysls of Governance costs
2023
2022
Ac¢ountan¢y and Trust administration
Audit fees
Trustees. travelling expenses
Legal Fees
Environmental Funders Network Membership
Miscellaneous
14,4(H)
15,300
3,024
290
1,140
548
1,5(K)
1,020
20,468
605
20,359
Related party transactlons
None of the Trustees received any remuneration from the Trust. C Kay, the secretary of the charity during
the year ended 5 April 2023 was a tax manager at Beever and Struther5 Accountants. Fee5 paid to Beever
and Struthers Accountants for accoLJntancy and trust administration £14,40012022.. £15,300) were payable
in the year.
Page | 13

The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 Aprll 2023
Fixed asset investments
2023
2022
Market value at 6 April
Additions
Sales
Unrealised Ilossesllsurplus on revaluation of investments
Market value at 5 April
38,628,859
57,719
36,755,162
1,121,917
1166,0001
917,780
38,628,859
12.662,6761
36,023,902
Historic cost at 5 April
24 559 119
24 501400
The market value of investments is made up as follows..
UK investments listed on a recognised stock exchange
36,023,902
38,605,599
Debtors
2023
2022
Investment Management Fee Rebate
29,970
32,229
Credltors: Amounts falllng due wlthln one year
2023
2022
Accruals- ALJdit Fee
Grant5 agreed and payable
3,000
599,000
602,000
S,184
574,000
579,184
Creditors: Amounts falling due after more than one year
2023
2022
Grants agreed and payable
643,000
286,000
Page | 14

Independent Auditorfs Report on the Financial Statements to the Trustees of The Brian
Mercer Trust
For the Year Ended 5 April 2023
Opinion
We have audited the financial statements of The Brian Mercer Charitable Trust for the year ended 5
April 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow
Statement and notes to the financial statements, including significant accounting policies. The
financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards including FRS 102 "The Financial Reporting Standard applicable in the
UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practitel.
In our opinion the financial statements..
give a true and fair view, of the state of the charity's affairs as at 5 April 2023, and of its
incorlling resources and application of resources, for the year then ended,.
have been properly prepared in accordance with the United Kingdom Generally Accepted
Accounting Practice,. and
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) and
applicable law. Our responsibilities under those standards are further described in the Auditorfs
responsibilities for the audit of financial statements section of our report. We are independent of the
charity in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including FRC'S Ethical Standard, and we have fulfilled our ethical responsibilities
in accordance with these requirements. We believe that the audit evidence is sufficient and
appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees, use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doLJbt on the charity's ability
to continue as a going concern for a period of at least twelve months from when the financial
statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respectto going concern are described
in the relevant sections of this report.
Other information
The other information comprises the information included in the trustees, annual report, other than
the financial statements and our auditorfs report thereon. Our opinion on the financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Page | 15

Independent Auditorfs Report on the Financial Statements to the Trustees of The Brian
Mercer Trust
For the Year Ended 5 April 2023
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. If,
based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities
(Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion..
the information given in the financial statements is inconsistent in any material respect with
the Trustees, Annual Report,. or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees, Responsibilities Statement set out on page 6, the trustees are
responsible for the preparation of the financial statements which give a true and fair view, and for
such internal control as the trustees determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concerns basis of accounting unless the trustees either intend to liquidate the charity or to cease
operations, or have no realistic alternative but to do so.
Auditors responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in
accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
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Independent Auditorfs Report on the Financial Statements to the Trustees of The Brian
Mercer Trust
For the Year Ended 5 April 2023
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below..
Reviewing board minutes.
Auditing the risk management override of controls, including through testing journal entries
and other adjustments for appropriateness.
Enquiries with management aboLSt any known or suspected incidents on non-compliance
with regulations and fraud.
Challenging assumptions and judgements made by management in their significant
accounting estimates, in particular in relation to fixed asset investments.
Because of the field in which the client operates, we identified that compliance with the Charities Act
2011 is the are most likely to have a material impact on the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities,
including those leading to a material misstatement in the financial statements or non-compliance with
regulation. This risk increases the more that compliance with a law or regulation is removed from the
events and transactions reflected in the financial statements, as we will be less likely to become aware
of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud
rather than error, as fraud involves intentional concealment, forgery, collusion, omission or
misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council's website
at:https'.//www.frc.org.uklOur-WorklAudit/Audit-and-assurance/Standards-and-
guidance/Standards-and-guidance-for-auditors/Auditors-responsibilites-for-audit/Description-of-
auditors-responsibilities-for-audit.aspx. This description forms part of our auditorfs report.
Use of our report
Thi5 report 15 made 501ely to the charity's trustees. as a body, in accordance with Part 4 of the Charites
(Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state
to the charity's trustees those matters we are required to state to them in an auditorfs report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the charity and the charitls trustees as a body, for our audit work, for this
report, or for the opinions we have formed.
MHA Moore and Smalley
Chartered Accountants and Statutory Auditor
9 Winckley Square
Preston
Lancashire
PRI 3HP
Date-
0510212024
MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies
Act 2006
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