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2022-03-31-accounts

Company Registration Number: 3965249 Charity Registration Number: 1080198

THE LENNOX HANNAY CHARITABLE TRUST

(a Company Limited by Guarantee and Registered as a Charity)

REPORT AND FINANCIAL STATEMENTS

For the year ended 31 March 2022

THE LENNOX HANNAY CHARITABLE TRUST

CONTENTS

Page
Reference and Administrative Information 1
Trustees’ Annual Report 2 – 6
Report of the Independent Auditor 7 – 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Financial Statements 14 – 21

THE LENNOX HANNAY CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2022

The Lennox Hannay Charitable Trust is a charitable company limited by guarantee and incorporated in England and Wales as Company number 3965249 on 31 March 2000 and registered as Charity number 1080198 on 3 April 2000.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

TRUSTEES/DIRECTORS

T J Douglas-Home C F Wilmot-Sitwell RF Trustee Co. Limited ** J K King

COMPANY SECRETARY

C E S Scott

REGISTERED OFFICE

14 Buckingham Street London WC2N 6DF

INDEPENDENT AUDITOR

Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

REGISTERED COMPANY NUMBER

3965249

REGISTERED CHARITY NUMBER

1080198

** The directors of RF Trustee Co. Limited as at the year end were: P Fleming R M Fleming E R H Perks R D Schuster L J Sutro

Page 1

THE LENNOX HANNAY CHARITABLE TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are pleased to present their report together with the financial statements of the Charity for the year ended 31 March 2022 which are also prepared to meet the requirements for a Director’s Report and Accounts for Companies Act purposes.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with the Charities Act 2011, as amended, the Companies Act 2006 and the reviewed Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2015).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trustees who held office throughout the year are shown on page 1.

New Trustees, when required, are selected by the serving Trustees and are appointed by a Resolution of existing Trustees. New Trustees are informed of the history of the Charity and acquainted with the activities of the Charity.

No Trustee receives a fee for the service they provide to the charity, all time spent is donated free of charge.

RFT Management Services Limited provides the charity with corporate/charity administration and financial reporting services. The Trustees receive regular reports from RFT Management Services Limited.

The Trustees meet a minimum of two times a year.

OBJECTS AND ACTIVITIES

The Charity’s objects are to promote and support such charitable purpose or purposes and such charitable organisation or organisations, being purposes and organisations, which are exclusively charitable according to the law of England and Wales, as the Trustees shall from time to time at their discretion decide.

The Charity’s objectives are wide in scope and allow the Trustees to modify their grant-making activity to consider varying charitable demands over time. This means that funding can be applied where the Trustees consider that it is most needed.

In furtherance of the objectives the Trustees continue to make grants to charitable organisations both on a one-off and recurring basis.

The Trustees aim to continue to generate sufficient income to allow the Charity to meet its grant-making objective. This will be achieved by focusing on the long-term sustainability of the investments and maintaining the capital value to support this income requirement.

The Trustees monitor the performance of the investments against their income requirement and capital growth objectives in supporting income. Performance is discussed regularly with the investment managers against suitable industry benchmarks.

Page 2

THE LENNOX HANNAY CHARITABLE TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

GRANT MAKING POLICY

The Trustees support a variety of charitable purposes by providing financial support to other registered charities.

Whilst the Trustees are able to advance funds out of the expendable endowment fund, the intention for the foreseeable future is to pay expenses and grants solely out of income.

The Trustees met twice during the course of the financial year covered by this report, in order to consider the applications for assistance made to them either by postal application received at the Charitable Trusts registered office or by personal application to the Trustees. Each application is reviewed on its own merit.

The Trustees have indicated to certain charities that they may make further grants in forthcoming years. The Trustees retain the option to discontinue those prospective instalments at any time.

The Trustees require all beneficiaries to acknowledge grants made and where possible to provide an update as to how funds have been applied by them in meeting their own charitable objectives and hence that the funds have been put to good use.

The Trustees have considered the Charity Commission guidance on public benefit including the guidance “public benefit running a charity” when formulating the grant making policy. The Trustees consider how grants can be made to ensure maximum benefit flows through to the intended ultimate beneficiaries.

ACHIEVEMENTS AND PERFORMANCE

With the objects in mind the Trustees, during the course of the financial year covered by this report, made 119 grants totalling £618,006 to a variety of charitable causes. These charities benefitted by way of increased financial resources to meet their charitable objects. The grants benefitted a number of public causes, as detailed in note 7.

The Trustees continued with their policy of making a mixture of smaller (£2,000 and below), medium (up to £25,000) and larger grants (£25,000 and above or longer-term funding that total more than £25,000). The Trustees are mindful that some projects require much larger funding levels to be effective.

A wide variety of causes were supported, the most significant was in the areas of

The Trustees look forward to being able to continue their charitable work in the coming years in accordance with the grant making policy, which reflects the objectives of the Charity.

FINANCIAL REVIEW

The Charity’s principal source of income is from its investments, which amounted to £725,191 (2021£637,696).

Page 3

THE LENNOX HANNAY CHARITABLE TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

FUTURE PLANS

The Trustees do not envisage any material change to the operation of the Charity in the long-term. The investments will continue to be managed on a similar basis to now. Notwithstanding this, the Trustees remain flexible in terms of the type of organisations supported so as to meet the demands of the day.

RESERVES POLICY

It is the Trustees’ intention to sustain the unrestricted funds at a level which will provide sufficient investment income to cover the charity’s management and administration costs and to be able to respond to any emergency applications for support that may arise from time to time as well as to continue making grants in accordance with the policy stated above in the paragraph relating to the Grant Making Policy of the Trustees. At the Balance Sheet date the unrestricted expendable endowment of the charity amounted to £33,651,912 (2021: £32,829,661). The Trustees consider a sustainable level for undistributed funds to be £150,000. At the year end the undistributed income fund stands at £148,974 and the Trustees are satisfied with this level.

INVESTMENT POLICY

The Trustees have agreed an investment policy for the Charity’s investment portfolio and have instructed the investment managers that the portfolio is to be invested to produce a suitable mixture of income, in order that the level of grants may be maintained and capital growth to secure the future of the Charity in the coming years. This policy is monitored by regular investment reports and meetings with the investment managers.

To meet these objectives, the Charity’s investments are managed across a range of asset classes, maintaining diversification, to produce an appropriate balance between risk and return.

The Trustees have decided that it would be inappropriate to impose any specific ethical investment constraints upon the investment manager over and above those already contained within the managers’ own ethical and socially responsible investment policies.

RISK MANAGEMENT

The Trustees have reviewed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate those risks. The principal risk faced by the Charity is an investment risk. This risk could be the reduction in the capital value of the investments and the income derived from the investments, required by the Trustees in meeting their charitable objectives. This risk has been addressed by the appointment of professional advisors to monitor investment performance and to decide on acquisitions and disposals.

Page 4

THE LENNOX HANNAY CHARITABLE TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

KEY MANAGEMENT PERSONNEL

The Trustees are considered to be the Key Management Personnel of the charity, the Trustees are not remunerated for their services and there are no paid staff employed by the Trust. Day to day management is carried out under an agreement with RFT Management Services Limited. Administration costs (excluding assets management and governance costs) amounted to 6% of income (2021: 6%).

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

The Trustees (who are the directors of the Lennox Hannay Charitable Trust for the purposes of company law) 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 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 the resources and application of resources, including the income and expenditure for that period. In preparing those financial statements the Trustees are required to:

In so far as the Trustees are aware:

The Trustees are responsible for keeping the accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure the financial statements comply with the Companies Act 2006. 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.

The Trustees are responsible for ensuring that the Trustees’ Annual Report is prepared in accordance with company law in the United Kingdom.

Page 5

THE LENNOX HANNAY CHARITABLE TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 ICONI'DI INDEPENDENT AUDITOR In accordance with Section 48712} of the Companies Act 2006, Moore Kingston Srnith LLP are deemed to be reappointed as auditors of the Company for the following year. SMALL COMPANY EXEMPTION This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relatins to small companies. Approved by the Trustees and sisned on theirbehaIf by: CESScott Company Secretary Date.. 15 November 2022 The Lennox Hannay Charitable Trust Company Registered Number 3965249 Charity Registered Number 1080198 Fage 6

THE LENNOX HANNAY CHARITABLE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LENNOX HANNAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of The Lennox Hannay Charitable Trust (‘the charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained 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 charitable company'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 annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 7

THE LENNOX HANNAY CHARITABLE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LENNOX HANNAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

In connection with our audit of the financial statements, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

THE LENNOX HANNAY CHARITABLE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LENNOX HANNAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 9

THE LENNOX HANNAY CHARrrABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE LENNOX HANNAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2022 ICONT'DI Identify and assess the risks of material misstatement of the financial statements, w￿ther due to fvaud or error, design and perform audit pro¢edureb responsive to those risk5. and obtain audit eviden￿ thal is sufficient and appropriate to provide a basis for our opinion. The risk of not deteding a material misstatement resulting fvom fraud is higher than for one Tesulting from eiror, as fraud may involve Collusio￿ forsery, intentional ornissions, misrepresentation5, orthe override of internal control. Obtaxn an understandin8 of internal control Televant to the audit in order to design audit proeedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the eEfertiveness ol the tharitable company's internal control. Evaluate the appropriateness o( accounting policies used and the reasontybleness of accounting estimates and related disclosures made by the tru8tee$. Conclude on the appropriateness of the trustees, use of the going concern basis of aecounting and, based Im the audit evidence obtained, whether a material uncertainty exists related to events OT condition5 that may cast significant doubt on the charitable companys ability to continue as a soins concern. If we conclude that a material un￿rtaInty exists, we are ￿qUIred to draw attention in our auditofs report to the related disclosures in the fmancial statements or, if such disclosures are inadequate, to modify our opinion. Our condusions are based on the audit evidence obtained up lo the date of our auditorfs report. However, future events or conditions may cause the charitable company to eease to eontinue as a going concern. Evaluate the overall presentation, structure and content of the fitwicial statements, includin8 the disclosures, and whether the financial statements repre*nt the underlying transactions and events in a manner thai achieve5 fair presentation. We communicate with those charged with governance regardin& among other matters, the planned scope and timing of the audit and sisnificant audit findings, includin8 any sisnificant deficiencies in internal control that we Identify during our audit. Use of our report Thib report is made solely to the charitable compaThy's members, as a body, in accordance with Chapter 3 of Part 16 of the Companie5 Act 2006. Our audit work has been undertaken so that we might state to the charttable companfs members those matters we are required to state to them in an auditorfs report and lor no other purpose. To the fullest extent perrnitted by law, we do not acttpt or assume resTonsibility to any party other than the charitable company and charitable company's members as a body, for our audit worL for this report, or for the opinions we have fonned. JaJnes Cross, Statutory aud" Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP Dale.. Moore Kingston Smith LLP is eligible to act as auditor in ternis ol Sertivn 1212 of the Companies Act Page 10

THE LENNOX HANNAY CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

NOTE
INCOME
Investment income
4
Other income
4
TOTAL INCOME
EXPENDITURE
Costs of generating funds
5
Charitable activities
7
TOTAL EXPENDITURE
Gains on investments
Gains on revaluation
9
Realised Gains on disposal
9
NET INCOME/(EXPENDITURE)
Losses on foreign exchange
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
BALANCE CARRIED FORWARD		 Unrestricted
Expendable
Endowment
Unrestricted
income
Total
2022
£
2022
£
2022
£
2021
£
-
725,191
725,191
637,696
-
91,967
91,967
78,654		 Unrestricted
Expendable
Endowment
Unrestricted
income
Total
2022
£
2022
£
2022
£
2021
£
-
725,191
725,191
637,696
-
91,967
91,967
78,654
-
817,158
817,158		 716,350
-
147,902
147,902
-
686,060
686,060		 156,324
631,395
-
833,962
833,962		 787,719
730,362
-
730,362
109,478
-
109,478		 3,400,351
230,532
839,840
(16,804)
823,036
(785)
-
(785)		 3,559,514
(15,451)
839,055
(16,804)
822,251
32,663,883
165,778
32,829,661		 3,544,063
29,285,598
33,502,938
148,974
33,651,912		 32,829,661

CONTINUING OPERATIONS: all of the charity’s activities relate to continuing operations.

TOTAL RECOGNISED GAINS AND LOSSES: the charity has no recognised gains and losses other than those shown in the statement of financial activities.

Page 11

THE LENNOX HANNAY CHAIUTABLE TRUST BALANCE SHEET AS AT 31 MARCH 2022 Restated 2021 NOTE 2022 FIXED ASSETS Investment Property Investments 13 5,195,000 28,307,938 33,502,938 5,195,IK)O 27,468,883 32,663,883 CURRENT ASSETS Debtors Cash at Bank io 58.474 177,197 235,671 46,508 180,843 227,351 LIABILITIES Creditors-. fallins due within one year li {86,697) {61,573}. NET CURRENT ASSETS 148,974 165,778 TOTAL ASSEfs LESS CURRENT LIABIL￿lEs 33,651,912 32,829,661 Representin&. UNRESTRICTED FUNDS Expendable Endowment Income 12 12 33,502,938 148,974 33,651,912 32,663.883 165,Tr8 32,829,661 These accounts have been prepared in accordan￿ with the special Provisions of Part 15 of the Companie¥ Act 21K)6 relhtin8 to small companies. Approved and authorised for issue on 15 November 2022 and sisned on their behalfby: T J Douslas-Home Trustee The Lennox Hannay Charitable TnASt Company Registered Number 3965249 Charity RegiSte￿d Number 10&1198 Page 12

THE LENNOX HANNAY CHARITABLE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Note
NET CASH ABSORBED BY OPERATING ACTIVITIES
(see below)
Cash flows from investing activities
Dividends and interest from investments
4
Other Incoming Resources
4
Proceeds from the sale of investments
9
Purchase of investments
9,13
Net cash provided by investing activities
Change in cash and cash equivalents in period
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
RECONCILIATION OF NET MOVEMENT IN FUNDS
TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net movement in funds for the period ended 31 March 2022
(as per the Statement of Financial Activities, page 11)
Adjustments for:
Dividends and interest from investments
4
Other Incoming Resources
4
Realised gains on the sale of investments
9
Unrealised gains in revaluing investments
9
(Increase)/Decrease in debtors
10
Increase/(Decrease) in creditors
11
Net cash provided by operating activities (see above)		 2022
£
Restated
2021
£
(821,589)
(856,005)
725,191
637,696
91,967
78,654
2,712,826
3,090,333
(2,228,355)
(4,489,195)
1,301,629
(682,512)
480,040
(1,538,517)
890,703
2,429,220
1,370,743
890,703
822,251
3,544,063
(725,191)
(637,696)
(91,967)
(78,654)
(109,478)
(230,532)
(730,362)
(3,400,351)
(11,966)
(46,508)
25,124
(6,327)
(821,589)
(856,005)

Analysis of cash and cash equivalents

As at 1 Cash Flow As at 31
April 2021 March 2022
£ £ £
Cash at Bank 180,843 (3,646) 177,197
Cash held in investments 709,860 483,686 1,193,546
890,703 480,040 1,370,743

Page 13

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee in the United Kingdom and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011. The accounts are prepared in sterling, which is the functional currency of the Charity, and rounded to the nearest pound.

(b) Going Concern

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. With respect to the next reporting period, 2022-23, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees’ annual report for more information).

Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.

The Expendable Endowment Fund represents those assets which are held for the longer term for the Charity. Income arising on the Expendable Endowment Fund can be used in the Unrestricted Income Fund. As the Expendable Endowment Fund can be used in accordance with the objects of the Charity and is included in the unrestricted income, capital can also be spent in certain circumstances in fulfilment of the Charity’s objectives. Any capital gains or losses arising on the investments held in the Expendable Endowment Fund form part of that fund.

All income is recognised in the Statement of Financial Activities (SOFA) when the conditions for receipts have been met and there is reasonable assurance of receipt. The following accounting policies are applied to difference categories of income:

Investment Income

Investment income is accounted for when receivable.

Rental Income

Rental income from the investment property is accounted for on a receivable basis.

Page 14

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

1. ACCOUNTING POLICIES (CONT’D)

(e) Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies are applied to the different categories of expenditure:

Costs of generating funds

The costs of generating funds consist of investment management and related costs.

Charitable Activities

Costs of charitable activities include grants made and support and governance costs. Grants payable are recognised when they are approved by the Trustees and the recipient of the grant has been informed of the amount to be paid.

Support and Governance Costs

Support and governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include expenses related to statutory audit fees, professional and legal fees and support costs.

(f) Fixed Asset Investments

During the year it was agreed that including cash held with investment managers within Fixed Asset Investments was a more accurate portrayal of how this cash is used. The prior year figures have also been updated to show this cash within Fixed Asset Investments rather than Cash at Bank as previously.

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.

The unlisted investments are valued according to the amount stated by the Investment Fund Managers.

The investment property is shown in the Balance Sheet as at 31 March 2022 at market value and is subject to periodic revaluation by a qualified valuer every five years (note 13).

Transactions in foreign currencies are recognised at the rate of exchange at the date of transaction. Monetary assets and liabilities are translated into sterling at the rate of exchange on the balance sheet date. Exchange differences are recognised through the statement of financial activities.

All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as all the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).

Page 15

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

1. ACCOUNTING POLICIES (CONT’D)

In preparing financial statements, it is necessary to make certain adjustments, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amount recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.

(k) Financial Instruments

Th e Charity has elected to apply the provisions of Section 11 Basic Financial Instruments of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

At the year end, it was agreed that some cash accounts held by the investment managers were more accurately classified within investments as opposed to cash at bank. For purposes of comparability, the 2021 figures were also updated to show these as investments. See note 9.

2. INFORMATION REGARDING TRUSTEES AND EMPLOYEES

In the year ended 31 March 2022, none of the Trustees received any remuneration or had expenses reimbursed by the Charity. The company has no employees. The Trustees are considered to comprise the Charity’s key management.

3. LIABILITY OF MEMBERS

The Lennox Hannay Charitable Trust is a charitable company limited by guarantee. Each member of the Charity undertakes to contribute such an amount as may be required (not exceeding £10) to the Charity’s assets if it should be wound up whilst he/she is a member.

4. INCOME

Income from Investments
Rent from investment property
Interest on cash deposits		 2022
£
2021
£
725,165
637,615
91,967
78,654
26
81
817,158
716,350

Page 16

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

5. COSTS OF GENERATING FUNDS

OSTS OF GENERATING FUNDS
Investment Management Fees
Custodian and Administration Fees
Investment Property Fees		 2022
2021
£
£
103,364
99,929
19,578
19,795
24,960
36,600
147,902
156,324

6. CHARITABLE ACTIVITIES

The charity undertook no direct charitable activities but awarded grants to a number of institutions in furtherance of its charitable activities. These are as follows: -

Able Stables
Bristol University
Royal Agricultural Society of the Commonwealth
The Fleming-Wyfold Art Foundation
Medical Detection Dogs
Missing Salmon Alliance
Sarcoma UK
Royal Horticultural Society
(The) Branch Trust
Grants above £2,000 and below £20,000
Grants £2,000 and below		 £
35,000
30,000
30,000
25,000
25,000
25,000
25,000
21,583
20,000
285,423
96,000
618,006

Page 17

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

7. ANALYSIS OF GRANTS MADE

The number of grants and amounts payable in the year were made for the following purposes:

The prevention or relief of poverty
The advancement of education
The advancement of religion
The advancement of health or the saving of lives
The advancement of citizenship or community
development
The advancement of the arts, culture, heritage. or
science
The advancement of amateur sports
The advancement of environmental protection or
improvement
The relief of those in need by reason of youth,
age, ill-health, disability, financial hardship or
other disadvantage
The advancement of animal welfare
The promotion of the efficiency of the armed
forces of the Crown, or of the efficiency of the
police, fire and rescue services or ambulance
services
Support and Governance costs (see note 8)
Total		 2022
No.
2021
No.
2022
£
9
16
35,000
26
24
196,583
1
4
5,000
36
29
141,500
8
4
48,173
8
12
51,500
4
2
9,000
7
5
62,750
13
22
52,500
6
8
15,000
1
1
1,000		 2021
£
55,500
172,534
32,000
83,500
5,000
104,000
4,000
53,000
40,000
25,000
1,000
119
127
618,006
-
-
68,054
119
127
686,060		 575,534
55,861
631,395

8. SUPPORT AND GOVERNANCE COSTS

Support /Administrative Costs
Charity Administration and Financial Reporting
Governance Costs
Auditor’s remuneration: current year
Auditor’s remuneration: prior year under/(over)
accrual
Legal and Professional Fees
Bank charges
To Charitable activities		 Unrestricted
Expendable
Endowment
£
Unrestricted
Income
£
-
49,410
-
10,000
-
680
-
7,443
-
521
-
(68,054)		 2022
Total
£
2021
Total
£
49,410
45,742
10,000
10,000
680
(220)
7,443
-
521
339
(68,054)
(55,861)
-
-		 -
-

Page 18

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

9. FIXED ASSET INVESTMENTS

Movement in fixed asset investments

Market Value brought forward
Add acquisitions at cost
Less disposal proceeds
Realised (loss)/gains on disposal
Net (loss)/gain on revaluation
Cash for Investment
Market Value at 31 March
Historical Cost at 31 March
Geographical Analysis
United Kingdom Investments
Overseas Investments
Cash for Investment		 Unlisted Securities
Listed Securities
Total
2022
£
2021
£
2022
£
2021
£
2022
£
Restated
2021
£
478,075
696,878
26,280,948
21,097,400
26,759,023
21,794,278
-
-
2,228,355
4,424,195
2,228,355
4,424,195
(53,149)
(110,923)
(2,659,677)
(2,979,410)
(2,712,826)
(3,090,333)
(17,082)
(15,689)
126,560
246,221
109,478
230,532
(378,468)
(92,191)
1,108,830
3,492,542
730,362
3,400,351		 Unlisted Securities
Listed Securities
Total
2022
£
2021
£
2022
£
2021
£
2022
£
Restated
2021
£
478,075
696,878
26,280,948
21,097,400
26,759,023
21,794,278
-
-
2,228,355
4,424,195
2,228,355
4,424,195
(53,149)
(110,923)
(2,659,677)
(2,979,410)
(2,712,826)
(3,090,333)
(17,082)
(15,689)
126,560
246,221
109,478
230,532
(378,468)
(92,191)
1,108,830
3,492,542
730,362
3,400,351
29,376
478,075
27,085,016
26,280,948
27,114,392		 26,759,023
-
-
-
-
1.193,546		 709,860
29,376
478,075
27,085,016
26,280,948
28,307,938		 27,468,883
368,835
831,467
24,180,404
24,252,172
24,549,239
20,247
20,247
25,024,469
24,344,664
245,044,716
9,129
457,828
2,060,547
1,936,284
2,069,676
-
-
-
-
1,93,546		 25,083,639
24,364,911
2,394,112
709,860
29,376
478,075
27,085,026
26,280,948
28,307,938		 27,468,883

The following investments comprise in excess of 5% of the value of the portfolio:

Investment Holding Value
£
Charities Property Fund 2,431,129 3,505,202
Artemis Income Fund 950,192 2,462,897
M&G Equity Investment Fund for Charities 136,959 2,163,558
Ballie Gifford International Fund 25,895 2,061,494
Rathbone Ethical Bond Fund 2,089,223 2,001,894
C F Trojan INC “S” 1,003,775 1,878,658
Evenlode Global Income Fund 1,279,883 1,824,090
Trojan Income Fund 541,667 1,744,062
Artemis GBL SEL 1,072,869 1,625,075

10. DEBTORS

Rent Due
Rent Deposit
11.
CREDITORS -amounts falling due within one year
Creditors falling due within one year
Accruals
Grants Creditors		 2022
£
2021
£
58,474
45,654
-
854
58,474
46,508
2022
2021
£
£
51,697
53,793
35,000
7,780
86,697
61,573

Page 19

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

12. FUND ANALYSIS

Property
Investments
Cash at Bank
Debtors
Creditors
Property
Investments
Cash at Bank
Debtors
Creditors		 Unrestricted
Expendable
Endowment
Unrestricted
Income
£
£
5,195,000
-
28,307,938
-
-
177,197
-
58,474
-
(86,697)		 2022
Total
£
5,195,000
28,307,938
177,197
58,474
(86,697)
33,502,938
148,974		 33,651,912
Unrestricted
Expendable
Endowment
Unrestricted
Income
£
£
5,195,000
-
27,468,883
-
-
180,843
-
46,508
-
(61,573)		 Restated
2021
Total
£
5,195,000
27,468,883
180,843
46,508
(61,573)
32,663,883
165,778		 32,829,661

Page 20

THE LENNOX HANNAY CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONT’D)

13. INVESTMENT PROPERTY

The property owned by the Charity is known as Sarsgrove Farm, the address being, Churchill, Chipping Norton, Oxfordshire OX7 6PB and consists of the following:

Sarsgrove Farmhouse, plus farm workshop, general purpose barn, a range of stables, a menage and a covered horse walker Number 1 and Number 2 Cedar Cottages, Sarsbank Cottage, plus large farm building, 231.96 acres of farm and woodland.

The date of completion of the purchase was 7[th] December 2009, the purchase price (book cost) being £4,186,166 including legal costs. Since the purchase date, the valuation of the property has moved as follows:

Purchase price
Additions during 2013
Additions during 2015
Additions during 2021
Unrealised gain 2014
Unrealised gain 2020		 £
4,186,166
4,200
9,002
65,000
669,634
260,998
5,195,000

14. RELATED PARTY TRANSACTIONS

One of the Trustees’ close family members is Pro-Chancellor of Bristol University to whom a grant of £30,000 was paid during the year (2021: £20,000).

Two of the RF Trustee Co. Limited directors are directors of RFT Management Services Limited to whom £49,410 was paid in the year in respect of charity administration fees (2021: £51,412). At the year end there was a creditor of £12,145 with RFT Management Services (2021: £11,894)

One of the RF Trustee Co. Limited directors is a trustee of The Fleming – Wyfold Art Foundation to whom a grant of £25,000 was paid in the year (2021: £25,000).

One of the RF Trustee Co, Limited directors is a Trustee of Fields in Trust to whom a grant of £10,000 was paid in the year (2021 – nil).

The sponsored student, Darlene Delizo/University of Hertfordshire, is known to one of the Trustees. The amount of the grant was nil (2021: £17,609)

One of the Trustees is a Trustee of Westminster City School General Charitable Trust to whom a grant of £nil was paid during the year (2021: £50,000).

One of the Trustees’ close family members is the Founder and Director of Clear Public Space to whom a grant of nil was made during the year (2021: £7,780).

Page 21