2021-03-31-accounts

Directors and advisors for the year ended 31March 2021
Report ofthe trustee for the year ended 31March 2021.
Ethical investment policy and practices	8
Risk managenment statement.	10
Independent auditors' report to the trustee ofThe William Leech Research Fund .	12
Statement offinancial activities for the year ended 31March 2021	15
Balance sheet as at 31March 2021	16
Statement ofaccounting policies	17
Notes to the financial statements for the year ended 31March 2021	19

The	Trustee Company's	approach to the management ofrisk is designed to enable the Board to proactively	approach to the management ofrisk is designed to enable the Board to proactively	approach to the management ofrisk is designed to enable the Board to proactively	approach to the management ofrisk is designed to enable the Board to proactively
identify and manage risks to support the achievement ofthe Trust's objectives. The Board is responsible					for
ensuring that adequate		systems	ofrisk management are in place and that ithas aconsistent appetite for risk and
that	the level ofrisk is	commensurate		with achievement ofits objectives. A key part ofthe process is the
maintenance ofa detailed Risk			Register, which is reviewed regularly with any significant changes being
reported to the Board. The Board has				identified anumber ofkey risks and these are set out below together	with
an explanation ofits mitigation			strategies and assessment ofeach risk.
	KEYRISKAREA			MITIGATION STRATEGIES
1.Investment risks
a)	Macroeconomic	and market		~ Although we will always be exposed to short-term market
	conditions (including			volatility, our investments are well diversified with aportfolio of
	exchange rate, interest rate and			global as well as UK equities, to spread risk. The Board
	inflation risks) could reduce			considers that a globally diversified portfolio is a good hedge
	our ability to deliver long-term			Rom the risks arising from the UK leaving the European Union.
	real growth ofincome to		our	~ As a long-term investor we consciously hold aweighting
	beneficiaries			towards equities, as we believe this offers the best prospects	of
				protecting our endowment against inflation and delivering real
				growth over the long term.
				~ Our investments in the COIF Charities Ethical Investment Fund
				can be liquidated easily in the short term, enabling us to sustain
				short-term distributions even when interest or dividend rates	are
				low.
				~ We do not hedge currency risk because we believe the costs	of
				doing so outweigh the benefits, given our liquidity and long-term
				perspective.
				Assessment: Despite the development ofvaccines there remain
				concerns about a cohesive global recovery. IVith thepossibility that
				the unprecedented stimuli provided by governments might give rise
				toinflation, itis likely that markets will remain volatile. Because of
				the long-term nature ofour endowment and our ability to smooth
				flows ofincome to beneficiaries, we believe we are in agood
				position to ride out shorter-tenn fluctuations and risk in economic
				and market conditions.
b)	Investment Manager risk- underperformance by our manager could reduce the returns we are able to deliver.			~ An annual meeting is held with our manager to monitor their performance. We compare the manager's performance against external benchmarks to help hold them to account.
				~ Our policy is to carry out regular re-tendering exercises for
				investment management services.
				Assessment: Theperformance ofthe investment manager since
				appointmentin ZN 8has been very satisfactory. The Investment
				Committee will continue to monitor performance against arange of
				measures.

	KEYRISKAREA	KEYRISKAREA	KEYRISKAREA	KEYRISKAREA			MITIGATION STRATEGIES
2.Governance			and key personnel				~ Appointing five independent directors allows specific skills tobe
risks							recruited where these are not already in place through our five
							charity-nominated directors.
As a small organisation				we have		a	~ An annual Board self-assessment process takes place to monitor
higher than average dependency on our two members ofstaff, and rely							the quality ofour governance. ~ Careful documentation ofprocedures and records has been set up
on having sufficient specialist expertise on our Board.							to enable new staff/advisers to pick up information quickly should our staff leave orbe incapacitated unexpectedly.
							Assessment: We believe that we have good levels ofgovernance
							and access to appropriate expertise. The chases to the Boardin
							recent years have increasedits diversity and the appointment of
							Andrew Brown as Chair will help ensure continuity. Whilst there
							will always be a risk relating to the loss ofkey staffmembers, we
							have good continuity measures inplace.
3.Fraud							~ Two signatories are required for payments in excess off.1,000.
							~ External auditors are required to look out for potential material
We need	to be vigilant			about the			irregularities, and have direct access to the Chairman as well as
risks ofinternal			and external &aud				reporting specifically on this area each year.
impacting		upon	our operations,		and		~ We place reliance on the systems and internal audit operations	of
ensure our funds			are used for their				our Bankers and Investment Manager as regulated bodies.
proper charitable			purposes.
							Assessment: Within thepractical constraints ofasmall
							organisation we believe we have taken all reasonable steps to
							prevent fraud.
4.Reputational			risk				~ We have adopted and implemented an ethical investment policy
							and aim to follow the recommendations ofthe Church of
William	Leech itself is			arelatively			England's Ethical Investment Advisory Group (EIAG).
low-profile		organisation,		but our			~ We maintain high professional standards in our handling of
policies and behaviours				could			relationships with professional advisers.
impact on		the reputation		ofthe	Five
Charities.							Assessment: Given that wefollow ethical guidelines established	by
							the EIAG, we consider it unlikely that the Leech benefactions
							would be theparticular target ofadverse publicity —although some
							pressure groups might want us and other church investors to adopt
							stronger policies in specific areas. The Trustee Company reviewed
							the ethical investment and policy statement in theyear ended 31
							March 2019and a revised statement was adopted on 29January
							2N9.

				Unrestricted	Endowment	Total funds	Unrestricted	Endowment	Total funds
				fund	fund	2021	fllild	fund	2020
			Note
Income
Investment income			2		68,469	68,469		66,825	66,825
Total income					68,469	68,469		66,825	66,825
Expenditure
Charitable activities:
expenditure	on
charitable activities				62,189		62,189	29,792		29,792
Total expenditure				62,189		62,189	29,792		29,792
Net income/
(expenditure)	before
gains on investments				(62,189)	687469	6,280	(29,792)	66,825	37,033
Net gains/(losses)		on
investments					376,458	376,458		(57,619)	(57,619)
Net income/
(expenditure)				(62,189)	444,927	382,738	(29,792)	9,206	(20,586)
Fund transfers				64,000	(64,000)		30,000	(30,000)
Movement in	funds			1,811	380,927	382,738	208	(20,794)	(20,586)
Total funds at the
beginning ofthe
financial year				2,756	1,983,038	1,985,794	2,548	2,003,832	2,006,380
Total funds at	the
end ofthe financial
year				4,567	2/63,965	2+6S,532	2,756	1,983,038	1,985,794

			Unrestricted	Endowment	Total funds	Unrestricted	Endowment	Total funds
			fund	fund	2021	fund	fund	2020
		Note	f.
Fixed assets
Investments				24.45,104	2,245,104		1,868,646	1,868,646
Total fixed	assets			2/45, 104	2/45, 104		1,868,646	1,868,646
Current assets
Debtors			566	17/61	17,827	941	16,768	17,709
Cash at bank	and in
hand			37,266	101,600	13S,866	4,335	97,624	101,959
Total current assets			37,832	118,861	156,693	5476	114,392	119,668
Liabilities
Creditors: amounts
falling due within
one year			(337.65)		(33,265)	(2,520)		(2,520)
Net current	assets		4,567	118,861	123,428	2,756	114,392	117,148
Net assets			4)567	2@63,965	2/68,532	2,756	1,983,038	1,985,794
The funds ofthe
charity
Endowment	funds	5		2,363,965	2/63,965		1,983,038	1,983,038
Unrestricted	funds		4,567		4,567	2,756		2,756
Total funds			4,567	2/63,965	2/68,532	2,756	1,983,038	1,985,794

							2021	2020
Distributions	from	COIF	Charities	Ethical	Investment	Fund	68,469	66,825
							68,469	66,825

								2021	2020
Payments	to	beneficiaries:
Research	grants payable							46,417	24,837
								46,417	24,837
Governance		costs:
Legal and	professional		services					12,000	871
Audit services								2,520	2,520
Directors'	and Management				Committee	indemnity	insurance	1,217	1,339
Management		Committee		expenses				35	225
								15,772	4,955
Total								62,189	29,792

								2021	2021	2021
								Endowment	Unapplied	Total
									total return
Opening	value		ofendowment
Gift component			ofpermanent	endowment				600,000		600,000
Unapplied		total	return						1,383,038	1,383,038
Total								600,000	1,383,038	1,983,038
Movement		in unapplied total return			and endowment		in the
year:
Investment		return: dividends		and interest					68,469	68,469
Investment		return: recognised		and unrecognised		gains			376,458	376,458
Total									444,927	444,927
Unapplied		total	return allocated to income						(64,000)	(64,000)
Net movement			in reporting	period					380,927	380,927
Closing value ofpermanent				endowment
Gift component			ofpermanent	endowment				600,000		600,000
Unapplied		total	return						1,763,965	1,763,965
Total								600,000	1,763,965	2463,965

	2021	2020
Market value at the beginning ofthe financial year	1,868,646	1,926,265
Gains/(losses) in the financial year	376,458	(57,619)
Market value at the end ofthe financial year	2/45,104	1,868,646
Investments at market value comprised:	2021	2020
COIF Charities Ethical Investment Fund at market value	2,245,104	1,868,646
Historical cost as at 31March	1,815,629	1,815,629

				2021	2020
Distribution	&om COIF	Charities Ethical Investment	Fund	17/61	16,768
Prepayment	—insurance	premium		566	941
				17,827	17,709

			2021	2020
Grants	payable		24,745
Legal	and professional	fees	6,000
Audit	services		2,520	2,520
			33/65	2,520