THE SHANLEY CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021 Charity no: 1103323 THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 CONTENTS Pages Legal and administrative information 24 Report of the trustees Report of the auditors Statement of financial activities Balance sheet 10-13 Notes forming part of the financial statements THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 LEGAL AND ADMINISTRATIVE INFORMATION Constitution The Shanley Charitable Trust is a registered Charity governed by ils Charity Constitution. Charity number 1103323 Iregislered 18 November 2003}. Trustees The trustees serving during the year and since the year end were as follows.. C A Shanley R F Lander S J Atkins Prin¢ipal office Knowles Benning Solicitors 32 High Street Shefford Bedfordshire SG17 5DG Audltors Mercer & Hole Chartered Accountants 420 Silbury Boulevard Central Milton Keynes MK9 2AF Bankers CAF Bank 25 Kings Hill Avenue Kings Hill Wesl Malling Kent ME19 4JQ THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 REPORT OF THE TRUSTEES The Tfuslees present their report together with the financial statements of the charity for the year ended 30 April 2021. Legal and administrative infomiation set out on p8ge 1 foms part of thi5 ￿ port. The financial statements comply with 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 IFRS 1021 (effective 1 January 20191. Structure. Governance and Management The charity is constitijted under a trust deed dated 18 November 2003. New Trustees are recommended by existing Trustees. Induction training is provided for all new Tnjstees, where appropriate, and all Trustees are encouraged lo attend courses and conferences that would benefit them as Trustees. The Trustees have full investment powers and authority for the charity and investment decisions have been made in accordance with the Trustees wishes during the year. The Trustees manage the day-tO- day operations of the charity. The Char￿ owns 100Yo of the share Capital of M J Shanley Limited. All Trustees are directors of M J Shanley Limited. A summary of related paty transactions is set out in nole 9 to the finanoial statements. Risk Policy The Tru51ees have taken steps lo idenkn'fy the major risks to which the charty is exposed and systems have been established to mitigate those risks. Objectiv9$ and Activities The objective5 of the charity are the relief of poverty and hardship. The principal activity was the management of the assets of the charity lo provide optimum funding lo achieve the above obie¢lives. The Trustees confirm that they have referred to the guidance contained in the Chartty Commissions general guidance on public benefit when reviewing the charity's aim, objectives and fvtuie developments. Achievernents and Performance The ttust assets generated investment income of £97,755 and an increase in the value of quoted investments of £1,717,336 after including realised gains of £259,110. The Trust also received a Grft Aid donation of £800,000 from M J Shanley Ltd. Grant making policy The Trustees make grants to recogni5ed intemalional charities that operate for the relief of povety- These are made as and when considered appropriate and when funds permit. The Twsl made net grants of £213,000 to other charities in pursuit of ils objectives. THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 REPORT OF THE TRUSTEES (CONTINUED Financial review The income used for the period are sel out on page 6. The increase in fvnds for the year amounted to £2.379.798. It is proposed that this is added lo reserves. Reserves policy The accumulated funds al 30 April 2021 were £7,171,927 all ol which related to unrestficted funds. 11 is the policy of the Charity lo maintain unreslri¢led knnds, which are free reserves of the charity. This provides sufficieftt funds to ftjnd future contributions to support tru51 objective5 and to cover management, 2dministro1ion and support costs. Th8 Trustees, policy is to invest the resources of the trust ir> bank accounts, Treasury Deposits and in Quoted Investments. See note 5 for the iesults of the subsidiary and investment companies. Plans for future periods The offieers do not anlicipale that there will be any fundamental change in the development of the Charity's operations during the coming year. Trustees, Responsibilities in Relation to the Flnan¢lal Statements The Iruslees are responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (Uniled Kingdom Generally Accepted Accounting Practice). The law applicable lo charities in England & Wales iequires the trustees to prepare financial statements for each financial year whi¢h give a twe and fair view of the slate 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 Iruslees are required to.. select suitable accounling policies and then apply them conSisten￿y". observe the method5 and principles in the Charities SORP 2019 IFRS 1021., make judgements and estimates that are reasonable and prudent.. state whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial stalemenls.. prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply wrth the Charilies Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the ¢harity and hence for taking reasonable steps for the prevention and detection of fraLtd and other irreguLaritie5. Auditors The auditois, Mercer & Hole. will be proposed for re-appoinlmenl. By ordef of the trustees". TN51ee R F Lander THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES Opinion We have audlled the financial statements of The Shanley Charttable Trusl (the 'Gharity'l for the year ended 30th April 2021 which comprise the statement of financial activities, balance sheet and notes lo the financial slatemenls, including a summary of significant accounting policies The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accountsng Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and RepLsblic of Ireland (Untted Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the slate of the charity's affairs as at 30th April 2021, and of ils incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We conducted our audit in aecord8n¢e with International Standards on Auditing (UK} IISAS IUKII and applicable law. Our responsibilities under those standards are furthef described in the Auditor's responsibilities for the audit of the 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 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan￿ 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 golng concem In auditing the financial stalemenls. we have concluded that the Irustee5' use of the going concern basis of accountin9 in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenliffied any material uncertainties relating to events or ¢ondilions 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 Iruslees with respect to going concem are described in the relevant Se￿10n$ of thi5 report. Other infomiatlon The other information ¢ornprises the information included in the trustees annual report. other than the financial statements and our audilorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the exlenl otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the course of 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 this gives rise lo a material misslalement in the financial statements themselves. 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 lo report in this regard. THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES (CONTINUED} Other Infomiatlon Icontlnuedl In connection wrth our audit of the financial statements. our ￿SpOnsIbl11ty is to read the other infomiation and. in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material ineonsislencies or apparent material misstatements, we are required lo determine whether there is a material misstatement in the financial statements or a material misstatement of the other informab'on. If, based on the work we have performed, we conclude that there is a material misstatement of thi5 Other inft)rmation, 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 ststemenls is inconsistent in any material respect with the twstees, report., or sufficient accounting records have not been kept.. or the financial stslements are not in agreement with the accounting records.. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained rrtore fully in the trustees, responsibilities statement set out on page 3, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Iiustees determine is necessary lo 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 ¢ontinue as a going concern. disclosing, as applicable. matters related to going concern and using the going concern basis of accounting Ltnless the trustees either intend lo liquidate the charity or lo ￿ase operations. or have no realistic altemabve bul to do so. Auditor's responslbllltles for the audlt of the flnanclal statements We have been appointed as audilor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due lo fraud or error. and to issue an audilorfs 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 {UKI will always detect a material misstatement when it exists. Misstatements can arise from fraud OT 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. Irregularities. including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above. to delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. THE SHANLEYCHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES ICONTINUEDI Explanation as to what extent the audit was considered capable of detecting irregularities. including fraud We gained an understanding of the legal and regulatory framework applicable to the charty and the environment in which tt operales and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls}. and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or underslate expenditure and management bias in accounting estimates. Audit procedures perforned by the engagement team included-. discussions with management, including considerations of known or suspected instances of nor¢-compliance with laws and regulations and fraud., gaining an understanding of management's controls designed to prevent and detect irregularities,. and identifying and testing journal entries. Because of the inherent limitations of an audrt, 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 fvrther description of our responsibilities is available on the Financial Reporting Council's website at.. htt s'.Ilwww.frc.or .UklOur~WorklAudiUAudil-andassuran￿standards-and- uidancelSlandards- and LJidance-for-audilorslAudilors-res onsibililies-for-audiuDescri lion f-audi nsi foraudit.as x. This description forms part of our auditor's report. or -res Page 5 ## **THE SHANLEYCHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021** ## **INDEPENDENT AUDITORS REPORT TO THE TRUSTEES (CONTINUED)** ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (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. Mercer & Hole, Statutory Auditor Chartered Accountants 420 Silbury Boulevard Central Milton Keynes **MK92AF** Date 27 January 2022 _Mercer_ & _Hole_ is _eligible to act_ as _an auditor in terms of section 1212 of the Companies Act 2006._ 7 THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 STATEMENT OF FINANCIAL ACTEVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT Unrestrlcted Funds Note 2021 2020 Income Income from other trading activities Donations and legacies Investments 800,000 97,755 130.710 Total Income 897,755 130.710 Expenditure Cost of raising funds Investment management costs Charitable activities Governance costs 18.432 213.000 3,860 16,649 169,480 3,980 11 Total Expenditure 253.292 190,109 Other recognised gainslllossesl: GainsllLossesl on investment assets 1.717,336 1518,1501 Net Movement in Funds forthe Year 2.379,799 1577,5491 Balances Brought Forward at 30 April 2020 4,792,128 5,369,677 Balances Carrled Fonvard at 30 April 2021 The statement of financial activities includes all gains and losses recognised in the year. Al income and expenditure derives from ¢ontinuing activities. The notes on page5 10 10 13 form part of these financial statements THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 BALANCE SHEET Note 2021 2020 Fixed Assets Investments 6,045,767 4,317,852 Current Assets Debtor5 C8sh at bank and in hand 1 131 833 1,131,833 479 52 479,029 Creditors: Amounts falling due withln one year 7 Nel ¢urr•nt assèts 1,126,160 474,276 Total assets less current IlabllltSe$ 7,171,927 4,729,128 Credltors_' Amounts falling due after more than Jne year Net Assets Funds of the charity: General funds iriclude revaluation increase of 8 £1,603,33412020'. reserve £111,537) Unrestricted income funds 7.171,927 4.729,128 Total charlty funds Approved y the Board of Trustees and signed on its behalf by Trustee Date R F Lander The notes on pages 10 to 13 form part of these financial 51alemenls THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 NOTES TO THE FINANCIAL STATEMENTS 1. Accountlng Pollcles The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Ststement of Recommended Practice applicable to ¢harities preparing their accounts in accordance with the Financial Reports'ng Standard applicable in the UK and Republic ol Ireland IFRS 1021 leffeclive 1 January 20191 _ (Charities SORP IFRS 10211. The Shanley Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy nole(sl. The Trustees have taken advantage of the exemption in FRS102 fTom including a cashflow stslemenl in the financial slalemenls on the grounds that the organisation 1$ small. Income Donations and lega¢ies Voluntary incomè from donations for unrestricted purposes is recognised in the statement of financial activities ISOFAI when a transaction or other event results in an increase in the charity's assets or a reduction in its liabilities. Income musl only be recognised in the aeeounts of a charity when all of the following criteria are met .Entillemenl- control over the rights or other access to the economic benefil has passed to the charity. .Probable- it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity. .Measurement- the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs lo complete the transaction can be measured reliabty. Investment Income Investment income is included when receivable by the charity. Expenditure Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT. which cannot be recovered. Fixed asset investments Listed investments are slated al market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluabon and disposals throughout the year. Investments in subsidiary and associated undertakings are stated al cost. Basis of Consolidation The financial statements do not include the profit and loss aceounl and balance sheet of the subsidiary undertakings due to the group meeting the exemption criteria for group accounts. Fund Accountlng Funds held by the charity afe unrestrtcted funds held for the furtherance of the objectives of the charity. 10 THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl Creditors and ProvisSons Creditors and provisions a￿ re¢ognised where the charity has a present obligatton resulting from past event that will probably result in the transfer of funds lo a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised al their settlement amount after allowing for any trade discounts due. Financial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic finan¢ial instruments are initially recognised al transaction valLte and subsequently measured al their settlement value, with the exception of listed investments. Going concern At the lime of approving the financial stalemenls. the trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the trustees continue lo adopt the going concern basis of accounting in preparing the financial statements. Investment Income 2021 2020 Bank interest Dividends 149 97 606 Investment management costs 2021 2020 Bank Charges Investment management fees 89 88 Other expendituro 2021 2020 Audilorfs remuneration Ac¢ountan¢y fees 1.860 1.980 Flxed Assets - Investments Llsted Investments at market value Carrying value as at 1 May 2020 Additions lo investments at cost Disposals at carrying value Net Ilossl gain on revaluation Carrying value as at 30 April 2021 4,317,852 3,605,931 {3.595,3521 1717 336 THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 NOTES TO THE FINANCIAL STATEMENTS (Continued) Holdings of more than 20% The charity owns 100% of the share capital of M J Shanley Limited. The principal activity of the company is that of land dealer and land owner. This company made a loss of £96.295 after taxation for the year ended 30 April 2021. Capital and resetves as at 30 April 2021 were £64.273. Debtors 2021 2020 Income Tax Recoverable Credttors: amounts falllng due wlthin one year 2021 2020 Accruals.. Audit Fees Accountancy Brokers Fees 1.920 2.000 1,920 2,000 Unrestrlcted funds At 30 April 2020 Income Outgoing$ Gains and At 30 April losses 2021 Movement In funds 4792128 for the year 897 755 235 292 1717336 7 171927 Related partles R F Lander received £2,000 (2020 - £2,000) for work done for the charity in his professional capacity as an accountant. M. J Shanley Ltd made a Gift Aid donation of £800.000 lo the charity during the year. 10. Staff and Trustees, costs Trustees, remuneration was nil during the financial year. No re-imbursement of expenditure was paid to the trustees. There were no employees during the year. 12 THE SHANLEY CHARITABLE TRUST FOR THE YEAR ENDED 30 APRIL 2021 NOTES TO THE FINANCIAL STATEfvIENTS (Continued) 11. Charltable Actlvltles 2020 2020 Grants to Institutions During the year the Trust made distributions of £50.000 lo DEC Corona Virus Appeal and £163,000 to The Sabre Charttsble Trust. During the prior year the Trust made distributions lo Wateraid of £I00.000 and Sabre Education of £69,480 12. Audltor's remuneratlon The auditols remuneration eonslituted an audit fee of £3.860 {2020.' £1,980>. 13