2022-05-31-accounts

Charity registration number 1119576

Company registration number 06261868 (England and Wales)

THE WHIRLWIND CHARITABLE TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

THE WHIRLWIND CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr L Bonham Mr S J Chipperfield Mr B P Cussons Ms N Levin Mr D J Lister MBE Mr C N Riley Chair of Trustees Mr C N Riley Secretary Mr B P Cussons Charity number 1119576 Company number 06261868 Registered office Coganhayes Buckerell Honiton Devon EX14 3ER Auditor Simpkins Edwards Audit LLP Michael House Castle Street Exeter Devon EX4 3LQ Bankers Triodos Bank Deanery Road Bristol BS1 5AS Solicitors Bates, Wells & Braithwaite 10 Queen Street Place London EC4R 5AS Investment advisors Investec Wealth and Investment Limited 2 Gresham Street London EC2 7QP Veritas Investment Partners (UK) Limited Riverside House 2a Southwark Bridge Road London SE1 9HA

THE WHIRLWIND CHARITABLE TRUST

CONTENTS

	Page
Trustees' report	1 - 5
Statement of trustees' responsibilities	6
Independent auditor's report	7 - 9
Statement of financial activities	10
Summary income and expenditure account	11
Balance sheet	12 - 13
Notes to the financial statements	14 - 23

THE WHIRLWIND CHARITABLE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2022

The trustees present their annual report and financial statements for the year ended 31 May 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity aims to enhance the potential for a positive life experience for the young and, in particular, those who are disadvantaged, disabled or at risk (and others whose opportunities are constrained by hardship) by offering them:

• positive character-building experiences;

• understanding of the value of team work and co-operation;

• the opportunity to build self-belief and to develop aspirations by meeting challenge, particularly in outdoor pursuits such as sailing;

• practical help, guidance through mentoring, and access to positive role models;

• environmental awareness and education.

ln addition, the charity seeks to promote the importance of the marine environment - for the wellbeing not only of humankind but of the global ecosystem - through research, education and conservation initiatives.

Strategies to achieve objects and public benefit

The Trustees ensure that its objectives are met and carried out for the public benefit by supporting other charitable organisations that have the capacity to deliver these objects. We want to create a community of those we have helped: people who will become contributors whether financially, practically, or as ambassadors and role models so creating a snowball effect for our future efforts.

We also seek to establish charitable alliances where a project may be beyond the resources of one charity alone.

The Whirlwind Charitable Trust aims to be an example of lean, imaginative and effective giving, using its funds to deliver maximum benefit swiftly and efficiently, with minimal administrative overhead.

We aim to grow the size of the trust fund and the scope of its activities to undertake an increasing amount of carefully focused charitable work over the years ahead.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.

• 1 -

THE WHIRLWIND CHARITABLE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Achievements and performance

Normality returned at the start of the year as the pandemic receded and most charities in our sector were able to recommence activities. There were still a small number struggling with the aftermath and we allowed repurposing of grants to help them cope. We received a higher level of applications, partly owing to a revamped website which is more accessible and visible to applicants. In the period, we donated a total of £369,003 which supported 30 organisations. 1294 individuals benefitted from those grants. Our portfolio grew steadily until the Russian invasion of Ukraine and the associated economic headwinds affected growth and income. Extraordinary levels of inflation have rendered our formula for growth, now based on CPI, temporarily redundant. The board took the decision to continue our level of donations despite the lower returns. After all, it is in times of hardship that charitable support is most necessary. This will be reviewed quarterly while the febrile economic climate, both global and domestic, remains unclear.

During the year, we rebalanced our portfolio so that there is now a 50/50 split between both investment houses. We have engaged an independent consultant to present quarterly reviews, which has provided clear comparison and is a foundation for investment strategic decisions which will eventually help to return to growth and higher income levels.

We responded to the emerging humanitarian crisis in Ukraine but were mindful that our relatively small donation might be swallowed up by larger relief agencies. After a brisk search of likely organisations, we identified Ukraine Charity as an established London based group of professionals who have been contributing practical aid in the country for years in the shape of child development, provision of medical equipment and refurbishment of over 20 orphanages. They had people on the ground and our donation went immediately with good effect providing nonmilitary aid, such as shelter, medical equipment and food.

In addition to our usual donations, we made the final grant to UKSA to help build the new accommodation block in Cowes. We were the second largest benefactor to the project and the facility, which opened in July, was completed on time and on budget.

It has been a challenging year, again. Overall, whilst our returns have been lower than desired, we remain committed to our key purpose of funding life changing projects for young people and remain financially able to do so.

Our thanks as always to Alison, David and Chris Wilde for their efficiency and enthusiasm.

Grant making policies

The Trust invites applications from all organisations that have the ability and/or capacity to deliver the objects of the Trust. The Trustees meet quarterly to review all applications in detail and those deemed appropriate to the charity's aim and objectives are approved and passed to the secretariat for action.

Financial circumstances are not relevant in considering suitability for a grant, and the Trustees and Donations Secretariat use their best endeavours to ensure that any such grant will be used for the purpose for which it was applied. All Trustees give their time freely and no Trustee remuneration was paid in the year. Trustees are required to disclose all relevant interests and, in accordance with the Trust's policy, withdraw from discussions and decisions when any possibility of a conflict of interest arises.

Investment policy and performance

Investec and Veritas report regularly to the Trustees on the performance of the investments through a

combination of verbal and written reports.

The bespoke discretionary management service offered by Investec and the "pooled funds" capability provided through Newton Growth and Income Fund for Charities and now the Protea Fund enable the trustees to compare the merits of the two differing investment styles, one against the other, as well as against agreed benchmarks. The performance, income and strategy of these funds are an agenda item at every meeting of the Trustees.

• 2 -

THE WHIRLWIND CHARITABLE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Financial review

Our net results for the year show total assets of £7,367,757 which is down from last year's £7,560,292. The charity has shown a deficit of £192,535 (2021 :surplus of £849,946), which brings the charity's overall reserves to £7,367,757.

Reserves policy

The original £4m donation from the Lister Charitable Trust forms the core of the charity's investments. The donation has been identified as expendable endowment. Therefore, the Trustees may apply the capital (and income) for the benefit of the Trusts charitable objects and purposes.

In order to build a sustainable basis for increasing levels of donations, the Trustees have established an investment policy to ensure not only that the reserves of the charity are maintained, but that they are enhanced by wise management of the investment return. Should there be an inadequate return, or a negative return, on the invested funds of the charity over any given year, the Trustees will make any donations on a purely discretionary basis in order to protect their ability to meet longer term charitable aims.

On 31st May 2022, total funds of The Whirlwind Charitable Trust stood at £7,368K - a deficit of £545k over the £7,913k required to meet the reserves target set by the Trustees' formula (see paragraph below). By comparison, on 31st May 2021, the surplus over the formula stood at £400k.

Financial management and custodianship of funds

The Trustees' financial management and donations policy recognises that, as a grant-giving trust, The Whirlwind Charitable Trust's sole source of income (and therefore of funds for donations) will for the foreseeable future be derived from its capital base.

To buffer the capital base against inflation and adverse economic cycles, whilst also creating the condition in which the capital base (and therefore long term donations) can grow, the Trustees' policy is to retain from the total return on investments a sum equivalent to CPI + 3% (as a rolling average) (previously RPI + 1.5%) of the invested funds of the charity, before allocating the balance to donations. To date Whirlwind has been successful in achieving long term growth in funds according to this formula while also maintaining a trend of increasing donations.

Risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate the charity's exposure to the major risks. The Charity's Risk Register is reviewed and updated as necessary on a regular basis.

Plans for future periods

ln broad terms it is the Trustees' intention to continue with its successful charity business model rather than seek change for change's sake, so developments will tend to be evolutionary rather than revolutionary.

• 3 -

THE WHIRLWIND CHARITABLE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Structure, governance and management

The charity is a company limited by guarantee.

The company is constituted under a Memorandum of Association dated 29 May 2007 and is a registered charity number 1119576.

The Whirlwind Charitable Trust was registered on 29 May 2007 utilising a generous donation from the Lister Charitable Trust (LCT). It was founded by former Trustees of LCT to maintain the same principal focus on delivering benefit to society through the support and encouragement of youth, maritime and outdoor pursuits while LCT itself pursued a wider agenda.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr L Bonham Mr S J Chipperfield Mr B P Cussons Ms N Levin Mr D J Lister MBE Mr C N Riley

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

Method of apointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles and Memorandum of Association. The Board of Trustees has the power to appoint any other person as they shall think fit as a Trustee of the Board, by way of addition to the Board. There shall be at least three Trustees. When seeking new Trustees, the Board members seek to identify skills gaps and relevant experience that would be of value to the charity, potential applicants may be secured through advertising, referrals or personal contacts.

Policies adopted for the induction and training of Trustees

The charity has an induction policy in place for new Trustees. When new Trustees come on board they are briefed about the charity's aims and objectives, provided with detailed background information, and informed of their responsibilities as Trustees. During a mutual six-month probationary period, prospective Trustees learn a great deal about the work of the charity and the responsibilities involved before having to make a full commitment. The Trustees have access to regular training sessions to keep them updated with the latest developments.

Organisational structure and decision making

The Board of Trustees meets quarterly to review the activities of the charity, including but not limited to:

• the financial performance of the charity's investments;

• relationships with the charity's professional advisers;

• consideration of and decisions concerning donations applications;

• and consideration/evaluation of reports received on the effectiveness of the charitable activities supported. The Trustees advise the Trust's secretariat of the donations applications they consider worthy of support, which are then processed by the Secretariat.

Auditor

In accordance with the company's articles, a resolution proposing that Simpkins Edwards Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

• 4 -

THE WHIRLWIND CHARITABLE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

The trustees' report was approved by the Board of Trustees.

.............................. Mr S J Chipperfield Trustee Dated: .........................

.............................. Mr C N Riley Trustee Dated:.........................

• 5 -

THE WHIRLWIND CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2022

The trustees, who are also the directors of The Whirlwind Charitable Trust for the purpose 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).

Company 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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 UK 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the 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.

• 6 -

THE WHIRLWIND CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE WHIRLWIND CHARITABLE TRUST

Opinion

We have audited the financial statements of The Whirlwind Charitable Trust (the ‘charity’) for the year ended 31 May 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure account, the Balance Sheet and the 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 Financial Reporting Standard 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 charitable company's affairs as at 31 May 2022 and of its 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 Companies Act 2006.

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 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 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 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 annual report other than the financial statements and our auditor's 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 we do not express any form of assurance conclusion thereon. 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 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 to a material misstatement 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 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' report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

• 7 -

THE WHIRLWIND CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE WHIRLWIND CHARITABLE TRUST

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identification and correct accounting of grants payable.

The greatest audit risk was assessed as being the potential approval of grants to fictitious non profit making organisations.

The cut-off of the approval and agreement of grants payable was also considered a potential risk

Audit response to risks identified

A sample of grants payable were selected, the procedure for approving the grant reviewed and the 'bona-fides' of the applicant organisation checked. No irregularities were identified in the assessment and approval of grants payable.

The agreement of grants applied for and agreed around the end of the financial year were reviewed to confirm that they were included in the correct financial period having regard to the date of approval by trustees and the dates of payment.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

• 8 -

THE WHIRLWIND CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE WHIRLWIND CHARITABLE TRUST

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.

Simpkins Edwards Audit LLP Chartered Accountants Statutory Auditor

.........................

Michael House Castle Street Exeter Devon EX4 3LQ

Simpkins Edwards Audit LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

• 9 -

THE WHIRLWIND CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2022

Unrestricted Endowment funds funds 2022 2022 Notes £ £ Income from: Investments 3 129,826 - Expenditure on: Charitable activities 4 399,277 - Other 9 - 28,452 Total expenditure 399,277 28,452 Net gains/(losses) on investments 10 - 105,368 Net (outgoing)/incoming resources before transfers (269,451) 76,916 Gross transfers between funds 300,000 (300,000) Net movement in funds 30,549 (223,084) Fund balances at 1 June 2021 159,139 7,401,153 Fund balances at 31 May 2022 189,688 7,178,069	Total Unrestricted Endowment funds funds 2022 2021 2021 £ £ £ 129,826 141,040 - 399,277 133,083 - 28,452 - 29,316 427,729 133,083 29,316 105,368 - 871,305 (192,535) 7,957 841,989 - - - (192,535) 7,957 841,989 7,560,292 151,182 6,559,164 7,367,757 159,139 7,401,153	Total 2021 £ 141,040
		133,083
		29,316
		162,399
		871,305
		849,946 -
		849,946 6,710,346
		7,560,292

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 10 -

THE WHIRLWIND CHARITABLE TRUST

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2022

All income funds 2022 £ Gross income 129,826 Transfer from endowment funds 300,000 Total income in the reporting period 429,826 Total expenditure from income funds 399,277 Net income for the year 30,549	2021 £ 141,040 -
	141,040 133,083
	7,957

• 11 -

THE WHIRLWIND CHARITABLE TRUST

BALANCE SHEET

AS AT 31 MAY 2022

Notes Fixed assets Investments 11 Current assets Debtors 12 Investments 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Net assets Capital funds Endowment funds-general General endowment funds Permanent endowment Expendable endowment 16 Income funds Unrestricted funds	2022 £ £ 7,349,796 6,848 57,919 10,745 75,512 (51,551) 23,961 7,373,757 (6,000) 7,367,757 7,178,069 7,178,069 - 7,178,069 7,178,069 189,688 7,367,757	2021 £ £ 7,304,560 6,825 241,128 38,020 285,973 (30,241) 255,732 7,560,292 - 7,560,292 7,401,153 7,401,153 - 7,401,153 7,401,153 159,139 7,560,292	2021 £ £ 7,304,560 6,825 241,128 38,020 285,973 (30,241) 255,732 7,560,292 - 7,560,292 7,401,153 7,401,153 - 7,401,153 7,401,153 159,139 7,560,292
			7,560,292 -
			7,560,292
			7,401,153 159,139
			7,560,292

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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THE WHIRLWIND CHARITABLE TRUST

BALANCE SHEET (CONTINUED)

AS AT 31 MAY 2022

The financial statements were approved by the Trustees on .........................

.............................. .............................. Mr S J Chipperfield Mr C N Riley Trustee Trustee Company Registration No. 06261868

• 13 -

THE WHIRLWIND CHARITABLE TRUST

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

1 Accounting policies

Charity information

The Whirlwind Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Coganhayes, Buckerell, Honiton, Devon, EX14 3ER.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Endowment funds are expendable, the Trustees may apply the capital (and income) for the benefit of the Trusts charitable objects and purposes.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Support costs are those costs incurred directly in support of expenditure on the objects of the company.

Governance costs are those costs incurred in connection with compliance with constitutional and statutory requirements.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Limited by guarantee

The Whirlwind Charitable Trust is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £10 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Investments

	**Unrestricted **	Unrestricted
	funds	funds
	2022	2021
	£	£
Income from listed investments	129,796	141,029
Other income from investments	30	11
	129,826	141,040

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THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

4 Charitable activities

	Charitable	Charitable
	Expenditure	Expenditure
	2022	2021
	£	£
Grant funding of activities (see note 6)	369,093	109,522
Share of support costs (see note 5)	20,884	18,121
Share of governance costs (see note 5)	9,300	5,440
	399,277	133,083

5 Support costs

Website costs Office costs Trustees' expenses Cost of trustees' meetings Secretarial Bookkeeping Annual return Bank charges Insurance Audit fees Legal and professional Analysed between Charitable activities	Support costs Governance costs £ £ 4,196 - 233 - 751 - 954 - 13,342 - 690 - 13 - 39 - 666 - - 3,300 - 6,000 20,884 9,300 20,884 9,300	2022 £ 4,196 233 751 954 13,342 690 13 39 666 3,300 6,000 30,184 30,184	Support costs Governance costs £ £ 3,818 - 388 - - - - - 12,532 - 618 - 13 - 30 - 722 - - 3,090 - 2,350 18,121 5,440 18,121 5,440	2021 £ 3,818 388 - - 12,532 618 13 30 722 3,090 2,350
				23,561
				23,561

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THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

6 Grants payable

Grants payable
	Charitable	Charitable
	Expenditure	Expenditure
	2022	2021
	£	£
Grants to institutions:
UKSA	150,000	-
Ukraine Charity	50,000	-
Key4Life CIO	5,000	-
Wild Elements CIC	4,818	-
Ocean Youth Trust South	10,000	10,000
Portsmouth Sail Training Trust	-	5,000
Martin House	3,000	-
City of Bristol Rowing Club	3,973	-
Islington Boat Club	4,420	-
Disability Snowsport UK	4,000	-
Youth Adventure Trust	6,000	6,337
Seachange	-	6,420
The Scout Association	5,000	-
Sports Forum for the Disabled	10,000	-
Outfit-Moray	8,800	-
The Wheelyboat Trust	5,000	-
The Island Trust Limited	10,000	-
Vision of Adventure	4,422	-
Canbridge School	2,000	-
Ocean Youth Trust North	-	5,200
Mylor Sailability	-	2,000
Westminster Boating Base	-	7,500
The Ahoy Centre	-	10,000
All - Aboard! Water Sport and Water Recreational Activity (Bristol)	-	5,000
The Venture Trust	10,000	10,000
Seashell Trust	-	4,965
Secchi Disk	7,000	2,000
Andrew Cassell Foundation (Racing for the Disabled)	-	5,000
Thomas Morely Trust (Disabled Sailors Association)	-	5,000
Plymouth Sports Charity Limited	-	5,000
Portadown Boat Club	-	3,000
Atlantic Pacific International Rescue Limited	-	3,000
Somerford Youth and Community Centre	-	4,100
Sporting Challenge	-	1,000
Longridge On The Thames	-	5,000
The Kepplewray Trust	-	4,000

• 18 -

THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

6 Grants payable

Grants payable Wider World The Chesil Sailing Trust The Jubilee Sailing Trust Brathay Trust Bolton Lads and Girls Club Limited Milford Haven Unit 564 of the Sea Cadet Corps Ellen Macarthur Cancer Trust Crebral Palsy Plus The Outlook Trust for the Visually Impaired Tall Ships Youth Trust Tectona Trust	(Continued) 4,000 - 3,260 - 5,000 - 5,000 - 5,000 - 3,500 - 18,000 - 1,900 - 10,000 - 5,000 - 5,000 - 369,093 109,522	(Continued) 4,000 - 3,260 - 5,000 - 5,000 - 5,000 - 3,500 - 18,000 - 1,900 - 10,000 - 5,000 - 5,000 - 369,093 109,522
		109,522

7 Trustees

No trustees received remuneration or benefits in kind during the year (2021: Nil). During the year, 4 trustees (2021: Nil) received reimbursement of expenses of £751 (2021: £Nil).

8 Employees

There were no employees during the year.

9 Other

	Endowment	Endowment
	funds	funds
	general	general
	2022	2021
Portfolio management	28,452	29,316
	28,452	29,316

10 Net gains/(losses) on investments

	Endowment	Endowment
	funds	funds
	general	general
	2022	2021
	£	£
Revaluation of investments	(68,467)	791,727
Gain on sale of investments	173,835	79,578
	105,368	871,305

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THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

11 Fixed asset investments

	Listed
	investments
	£
Cost or valuation
At 1 June 2021	7,304,560
Additions	1,679,591
Valuation changes	105,368
Disposal proceeds	(1,739,723)
At 31 May 2022	7,349,796
Carrying amount
At 31 May 2022	7,349,796
At 31 May 2021	7,304,560

Fixed asset investments revalued

The historical cost of fixed asset investments at 31 May 2022 was £6,079,381.

12 Debtors Amounts falling due within one year: Prepayments and accrued income 13 Current asset investments Unlisted investments 14 Creditors: amounts falling due within one year Other creditors Accruals and deferred income	2022 £ 6,848 2022 £ 57,919 2022 £ 47,120 4,431 51,551	2021 £ 6,825
		2021 £ 241,128
		2021 £ 25,100 5,141
		30,241

• 20 -

THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

15	Creditors: amounts falling due after more than one year
		2022	2021
		£	£
	Other creditors	6,000	-

• 21 -

THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

16 Endowment funds

The original donation from the Lister Charitable Trust has been identified (following legal advice) as expendable endowment, although it was previously described as permanent. Therefore, the Trustees may apply the capital for the benefit of the Trust's charitable objects and purposes. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at 1 June 2020 £ Expendable endowments 6,559,164 6,559,164	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses Balance at 1 June 2021 £ £ £ £ (29,316) - 871,305 7,401,153 (29,316) - 871,305 7,401,153	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses Balance at 31 May 2022 £ £ £ £ (28,452) (300,000) 105,368 7,178,069 (28,452) (300,000) 105,368 7,178,069	Movement in funds Resources expended Transfers Revaluations gains and losses Balance at 31 May 2022 £ £ £ £ (28,452) (300,000) 105,368 7,178,069 (28,452) (300,000) 105,368 7,178,069
					7,178,069

During the year, the Trustees exercised the right to convert a proportion of expendable endowment into unrestricted funds by way of an accounting transfer. The Trustees agreed to a transfer of £300,000 as at the year end.

• 22 -

THE WHIRLWIND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

17 Analysis of net assets between funds Unrestricted funds Endowment funds 2022 2022 £ £ Fund balances at 31 May 2022 are represented by: Investments - 7,349,796 Current assets/(liabilities) 195,688 (171,727) Long term liabilities (6,000) - 189,688 7,178,069	Total Unrestricted funds Endowment funds 2022 2021 2021 £ £ £ 7,349,796 - 7,304,560 23,961 159,139 96,593 (6,000) - - 7,367,757 159,139 7,401,153	Total 2021 £ 7,304,560 255,732 -
		7,560,292

18 Related party transactions

The charity uses the secretarial services of Alison Chipperfield, the wife of one of the Trustees, Stephen Chipperfield. She invoiced the charity a total of £3,000 (2021: £3,000) during the year for these services.

David Lister MBE (a Trustee) is also a Trustee of the UK Sailing Academy (UKSA). During the year a grant of £150,000 (2021: £Nil) was approved by the other trustees who have no conflict of interest.

Natalie Levin (a Trustee) is also an employee of The Youth Adventure Trust. During the year a grant of £6,000 (2021: £6,337) was approved by the other trustees who have no conflict of interest.

• 23 -