Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
Charity Commission Reference Number: 1076925
The Brian Mercer Trust
Annual Report and Financial Statements For the Year Ended 5 April 2024
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Financial Statements
For the Year Ended 5 April 2024
| Contents | Pages |
|---|---|
| Reference and administrative information | 1 |
| Report of the Trustees | 2 to 6 |
-
Structure, governance, management
-
Risk management
-
Ethical Investing
-
Objectives and activities for the public
benefit
-
Grant making policy
-
Monitoring achievement
-
Fundraising
-
Financial review
-
Investment policy
-
Reserves
| 10. Reserves | |
|---|---|
| 11. Future plans | |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Cashflow Statement | 9 |
| Notes to the Financial Statements | 10 to 14 |
| Independent Auditors’ Report | 15 to 17 |
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Reference and Administrative Details
| Trustees | K J Merrill (Chairman) |
|---|---|
| C J Clancy | |
| L J Merrill (appointed 29 June 2024) | |
| Secretary to the trustees | C Kay |
| Accountants | Beever and Struthers |
| Suite 9b | |
| The Beehive Lions Drive | |
| Shadsworth Business Park | |
| Blackburn | |
| Lancashire | |
| BB1 2QS | |
| Investment Managers | Sarasin and Partners LLP |
| 100 St Paul’s Churchyard | |
| London | |
| EC4M 8BU | |
| Bankers | The Co-Operative Bank |
| 1 Balloon Street | |
| Manchester | |
| M60 4EP | |
| Auditors | MHA |
| 9 Winckley Square | |
| Preston | |
| Lancashire | |
| PR1 3HP | |
| Principal address of the charity | Suite 9b |
| The Beehive Lions Drive | |
| Shadsworth Business Park | |
| Blackburn | |
| Lancashire | |
| BB1 2QS | |
| Charity Number | 1076925 |
Page | 1
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Trustees’ Report (continued)
For the Year Ended 5 April 2024
The trustees present their annual report and audited financial statements for the year ended 5 April 2024. 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 accounting 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.
1. 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 Merrill, the chair of the Trust. 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 year’s 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 encouraged 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 (NCVO), 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 required to disclose all relevant interests and register them with the board of trustees and in accordance with the Trust’s policy 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.
Page | 2
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Trustees’ Report (continued)
For the Year Ended 5 April 2024
3. ETHICAL INVESTING
The trust is a signatory to the Funders Commitment on Climate Change. Investment policy is consistent with Environment, Social and Governance (ESG) principles, notably excluding any investments in fossil fuel industries.
4. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
Charitable objects
-
a) Prevention of, or relief from, disadvantage and suffering resulting from poverty, ill-health, or other causes globally.
-
b) Promotion of visual arts, and artistic talent especially in the Northwest of England.
-
c) Support for charitable community initiatives local to Blackburn, Lancashire.
-
d) 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 and, where this is lacking, is willing to fund independent outcome evaluation.
-
Provides feedback to unsuccessful applicants, explaining the reasons for trustees’ decision within 48 hours of the meeting.
-
Is committed to following best practice and is a signatory to the IVAR’s (Institute for Voluntary Action Research) commitments on best practice.
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 granted 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 causes/organisations to fund meet the requirements of the best advice available.
Examples of grants made are provided below:
Prevention and Relief of Human Suffering
A three-year commitment was made to several charities including Re-cycle, Hello World and Our Sansar.
Page | 3
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Trustees’ Report (continued)
For the Year Ended 5 April 2024
Arts
A grant of £5,000 was made to HOME (for the biennial Manchester Open Arts Exhibition).
Causes Local to Blackburn Lancashire
The Trust continues to support local causes. A further grant of £10,000 was made to Festival of Making and £14,600 to The Making Rooms.
Payments amounting to £34,445 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.
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 (e.g. charity evaluators) made every three years, before the grant is reviewed.
In the case of smaller organisations (as 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.
The Trustees have placed funds for investment with Sarasin and Partners LLP. During the year the Trust has made unrealised investment gains of £2,436,432 (2023: unrealised investment losses of £2,662,676) reflecting the movement in stock markets. At 5 April 2024 the funds invested were valued at £38,910,334 (2023: £36,023,902).
During the year, the trustees paid and agreed grants for charitable purposes amounting to £256,195 (2023: £1,088,077). Grants are made in accordance with decisions reached after discussions at meetings of the Trustees and after taking advice, where appropriate. The drop in annual grants from previous years is temporary and due to a new focus on pursuing climate-related interventions and finding space to increase grants to smaller organisations in the future.
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.
Page | 4
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Trustees’ Report (continued)
For the Year Ended 5 April 2024
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. Since the year end the trustees have changed investment advisor from Sarasin and Partners to Julius Baer.
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 policy and will be funded from the investment return as resources allow.
The balance held in cash reserves at 5 April 2024 was £597,950 (2023:£600,149), against grant commitments and anticipated governance costs of £1,100,000. However, if there is a shortfall in cash reserves, then the investment advisors 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 50% of funding from the “Prevention and Relief of Human Suffering” category towards issues that address climate change.
Page | 5
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Trustees’ Report (continued)
For the Year Ended 5 April 2024
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.
February 4, 2025
Approved by the trustees on ………………………. and signed on their behalf by:
K J Merrill Chairman of Trustees
Page | 6
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Statement of Financial Activities
For the Year Ended 5 April 2024
| or the Year Ended 5 April 2024 | |
|---|---|
| Notes Income and endowments from: Investments 2 Total Income Expenditure on: Raising Funds 3 Charitable Activities 4 Total Expenditure Net gains/(losses) on investments 5 Net income/(expenditure)/ movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Funds 2024 2023 £ £ 1,373,488 1,319,934 |
| 1,373,488 1,319,934 |
|
| 153,198 151,289 276,410 1,108,545 |
|
| 429,608 1,259,834 |
|
| 2,436,432 (2,662,676) |
|
| 3,380,312 (2,602,576) 35,409,021 38,011,597 |
|
| 38,789,333 35,409,021 |
The notes on pages 10 to 14 form an integral part of these accounts
Page | 7
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Balance Sheet
For the Year Ended 5 April 2024
| Notes | 2024 | 2024 | 2023 | 2023 | ||
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | |||
| Fixed assets | ||||||
| Investments | 5 | 38,910,334 | 36,023,902 | |||
| Current assets | ||||||
| Debtors | 6 | 32,449 | 29,970 | |||
| Cash at bank and in hand | 597,950 | 600,149 | ||||
| 630,399 | 630,119 | |||||
| Liabilities | ||||||
| Creditors: Amounts falling due | ||||||
| within one year | 7 | (486,400) | (602,000) | |||
| Net current assets | 143,999 | 28,119 | ||||
| Total assets less current | 39,054,333 | 36,052,021 | ||||
| liabilities | ||||||
| Creditors: Amounts falling due | ||||||
| after more than one year | 8 | (265,000) | (643,000) | |||
| Net assets | 38,789,333 | 35,409,021 | ||||
| Funds | ||||||
| Unrestricted income funds | ||||||
| General fund | 38,789,333 | 35,409,021 | ||||
| Approved by the Trustees on ……………………….. and signed on their behalf by: | Approved by the Trustees on ……………………….. and signed on their behalf by: February 4, 2025 |
Approved by the Trustees on ……………………….. and signed on their behalf by: | Approved by the Trustees on ……………………….. and signed on their behalf by: | Approved by the Trustees on ……………………….. and signed on their behalf by: |
Approved by the Trustees on ……………………….. and signed on their behalf by:
K J Merrill Chairman of Trustees
Page | 8
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Cashflow Statement
For the Year Ended 5 April 2024
| Notes 2024 2023 £ £ £ £ Cash flow from operating activities 1 (925,687) (877,759) Net cash flow from operating activities (925,687) (877,759) Cash flow from investing activities Payments to acquire investments (450,000) (57,719) Investment income received 1,373,488 1,319,934 923,488 1,262,215 Net increase/ (decrease) in cash and cash equivalents (2,199) 384,456 Cash and cash equivalents at 5 April 2023 600,149 215,693 Cash and cash equivalents at 5 April 2024 2 597,950 600,149 1 Reconciliation of net income/ (expenditure) to net cash flow from operation activities 2024 2023 £ £ Net income/(expenditure) in the year 3,380,312 (2,602,576) Investment income received (1,373,488) (1,319,934) (Gains)/losses on investments (2,436,432) 2,662,676 (Increase)/decrease in debtors (2,479) 2,259 (Decrease)/Increase in creditors (493,600) 379,816 (925,687) (877,759) 2 Cash and cash equivalents 2024 2023 £ £ Cash at bank and in hand 597,950 600,149 Cash and cash equivalents at 5 April 597,950 600,149 |
Notes 2024 2023 £ £ £ £ Cash flow from operating activities 1 (925,687) (877,759) Net cash flow from operating activities (925,687) (877,759) Cash flow from investing activities Payments to acquire investments (450,000) (57,719) Investment income received 1,373,488 1,319,934 923,488 1,262,215 Net increase/ (decrease) in cash and cash equivalents (2,199) 384,456 Cash and cash equivalents at 5 April 2023 600,149 215,693 Cash and cash equivalents at 5 April 2024 2 597,950 600,149 1 Reconciliation of net income/ (expenditure) to net cash flow from operation activities 2024 2023 £ £ Net income/(expenditure) in the year 3,380,312 (2,602,576) Investment income received (1,373,488) (1,319,934) (Gains)/losses on investments (2,436,432) 2,662,676 (Increase)/decrease in debtors (2,479) 2,259 (Decrease)/Increase in creditors (493,600) 379,816 (925,687) (877,759) 2 Cash and cash equivalents 2024 2023 £ £ Cash at bank and in hand 597,950 600,149 Cash and cash equivalents at 5 April 597,950 600,149 |
Notes 2024 2023 £ £ £ £ Cash flow from operating activities 1 (925,687) (877,759) Net cash flow from operating activities (925,687) (877,759) Cash flow from investing activities Payments to acquire investments (450,000) (57,719) Investment income received 1,373,488 1,319,934 923,488 1,262,215 Net increase/ (decrease) in cash and cash equivalents (2,199) 384,456 Cash and cash equivalents at 5 April 2023 600,149 215,693 Cash and cash equivalents at 5 April 2024 2 597,950 600,149 1 Reconciliation of net income/ (expenditure) to net cash flow from operation activities 2024 2023 £ £ Net income/(expenditure) in the year 3,380,312 (2,602,576) Investment income received (1,373,488) (1,319,934) (Gains)/losses on investments (2,436,432) 2,662,676 (Increase)/decrease in debtors (2,479) 2,259 (Decrease)/Increase in creditors (493,600) 379,816 (925,687) (877,759) 2 Cash and cash equivalents 2024 2023 £ £ Cash at bank and in hand 597,950 600,149 Cash and cash equivalents at 5 April 597,950 600,149 |
Notes 2024 2023 £ £ £ £ Cash flow from operating activities 1 (925,687) (877,759) Net cash flow from operating activities (925,687) (877,759) Cash flow from investing activities Payments to acquire investments (450,000) (57,719) Investment income received 1,373,488 1,319,934 923,488 1,262,215 Net increase/ (decrease) in cash and cash equivalents (2,199) 384,456 Cash and cash equivalents at 5 April 2023 600,149 215,693 Cash and cash equivalents at 5 April 2024 2 597,950 600,149 1 Reconciliation of net income/ (expenditure) to net cash flow from operation activities 2024 2023 £ £ Net income/(expenditure) in the year 3,380,312 (2,602,576) Investment income received (1,373,488) (1,319,934) (Gains)/losses on investments (2,436,432) 2,662,676 (Increase)/decrease in debtors (2,479) 2,259 (Decrease)/Increase in creditors (493,600) 379,816 (925,687) (877,759) 2 Cash and cash equivalents 2024 2023 £ £ Cash at bank and in hand 597,950 600,149 Cash and cash equivalents at 5 April 597,950 600,149 |
|---|---|---|---|
| (57,719) 1,319,934 |
|||
| 384,456 215,693 600,149 activities 2023 £ (2,602,576) (1,319,934) 2,662,676 2,259 379,816 (877,759) 2023 £ 600,149 600,149 |
Page | 9
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 April 2024
1. Accounting Policies
1.1 Basis of preparation
The charity constitutes a public benefit entity as defined by FRS 102. The 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
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 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has 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 policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2 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.
1.3 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.
1.4 Resources expended and irrecoverable VAT
Liabilities are recognised as resources expended as soon as there is 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 category.
All expenditure is directly allocated to the relevant categories and no apportionments are considered necessary.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
1.5 Raising funds
The costs of raising funds consist of investment management fees
Page | 10
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 April 2024
1.6 Charitable activities – 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 accounted for once the offer has been made in writing.
1.7 Charitable activities - 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.
1.8 Taxation
As a registered charity, the Trust is generally exempt from Income Tax and Capital Gains Tax, but not from VAT.
1.9 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 at the date of trade at cost (that is their transaction value). Realised and unrealised gains and losses are taken to the Statement of Financial Activities. Investment income has been taken into account on the basis of due date of payment.
1.10 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 assumptions 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.
2. Investment income
| Income from UK listed investments (before deduction of fees) Interest receivable on short term deposits and cash at bank 3. Raising Funds Management Fees Earned on Sarasin funds Rebate Net fees charged |
2024 £ 1,354,090 19,378 1,373,488 2024 £ 276,021 (122,823) 153,198 |
2023 £ 1,316,314 3,620 1,319,934 2023 £ 272,905 (121,616) 151,289 |
|---|---|---|
Sarasin 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
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 April 2024
| For the year ended 5 April 2024 | |
|---|---|
| 4. Charitable Activities 2024 £ Grants Payable 256,195 Governance Costs 20,215 Total Charitable Activities 276,410 2024 Analysis of Grants Payable £ African Adventure Foundation 8,000 Re-Cycle 30,000 Kids Club Kampala - Hope Health Action - Hello World 45,000 Deki - CSEF Moneywise - St Mary’s Sixth Form College - The Making Rooms 14,600 The Whitaker - Festival of Making 20,000 Client Earth - Blaze Arts - Greenpeace - Oxfam - Cure International - Samaritans - Power for the People - Raising Futures Kenya - Cleanup Uk - Living Paintings Trust - Hutton Grammar School - Community Voluntary Service (CVS) 34,445 Stanley Grange Community Association - Open Eye Museum - Blackburn Youth Zone - Against Malaria Foundation - Nightsafe - Medecins Sans Frontiere - Legs4Africa - Tate Museum (reversal of commitment) - Blackburn with Darwen BC (reversal of commitment) - Our Sansar 30,000 Kairos Housing 30,000 ACAA 13,400 Crackerjacks 750 EFN Climate Activist Speaker Fund 20,000 HOME (Manchester Exhibition) 5,000 Castlefield Gallery 6,500 |
2023 £ 1,088,077 20,468 1,108,545 |
2023 £ - - 58,400 15,000 - 15,000 4,000 (261) 14,600 20,000 30,000 100,000 45,000 100,000 100,000 9,000 15,000 30,000 30,000 3,000 2,000 2,500 (10,662) 2,500 (27,000) 95,000 150,000 75,000 300,000 30,000 (40,000) (80,000) - - - - - - - |
Page | 12
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 April 2024
| For the year ended 5 April 2024 | |||
|---|---|---|---|
| EFN Membership Analysis of Governance costs Accountancy and Trust administration Audit fees Trustees’ travelling expenses Environmental Funders Network Membership Miscellaneous |
(1,500) 256,195 2024 £ 14,400 3,300 168 1,500 827 20,195 |
- | |
| 1,088,077 | |||
| 2023 £ 14,400 3,000 548 1,500 1,020 20,468 |
Related party transactions
None of the Trustees received any remuneration from the Trust. C Kay, the secretary of the charity during the year ended 5 April 2024 was a tax manager at Beever and Struthers Accountants. Fees paid to Beever and Struthers Accountants for accountancy and trust administration £14,400 (2023: £14,400) were payable in the year.
5. Fixed asset investments
| Market value at 6 April Additions Sales Unrealised (losses)/surplus on revaluation of investments Market value at 5 April Historic cost at 5 April The market value of investments is made up as follows: UK investments listed on a recognised stock exchange 6. Debtors Investment Management Fee Rebate |
2024 £ 36,023,902 450,000 - 2,436,432 |
2023 £ 38,628,859 57,719 - (2,662,676) |
||||
|---|---|---|---|---|---|---|
| 38,910,334 | 36,023,902 | |||||
| 25,009,119 38,910,334 2024 £ 32,449 |
24,559,119 36,023,902 2023 £ 29,970 |
Page | 13
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
The Brian Mercer Trust
Notes to the Financial Statements (continued)
For the year ended 5 April 2024
| 7. Creditors: Amounts falling due within one year Accruals – Audit Fee Accruals – Accountancy Fee Grants agreed and payable 8. Creditors: Amounts falling due after more than one year Grants agreed and payable |
2024 £ 3,300 3,600 479,500 486,400 2024 £ 265,000 |
2023 £ 3,000 - 599,000 602,000 2023 £ 643,000 |
|---|---|---|
Page | 14
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
Independent Auditor’s Report on the Financial Statements to the Trustees of The Brian Mercer Trust
For the Year Ended 5 April 2024
Opinion
We have audited the financial statements of The Brian Mercer Charitable Trust for the year ended 5 April 2024 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 Practice).
In our opinion the financial statements:
-
give a true and fair view, of the state of the charity’s affairs as at 5 April 2024, and of its incoming 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 Auditor’s 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 doubt 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 respect to 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 auditor’s 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
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
Independent Auditor’s Report on the Financial Statements to the Trustees of The Brian Mercer Trust
For the Year Ended 5 April 2024
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 (UK) 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.
Page | 16
Docusign Envelope ID: 756BE44E-32D9-4017-A650-B12BD63AB151
Independent Auditor’s Report on the Financial Statements to the Trustees of The Brian Mercer Trust
For the Year Ended 5 April 2024
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.
-
Testing completeness of income.
-
Enquiries with management about 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 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.uk/Auditors-responsibilites. This description forms part of our auditor’s report.
Use of our report
This report is made solely 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 auditor’s 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 charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
MHA Registered Auditor 9 Winckley Square Preston Lancashire PR1 3HP Date: February 5, 2025
MHA is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page | 17