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|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|
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|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.||
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|||||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|
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||||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|
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||||||||2021|2020|
|---|---|---|---|---|---|---|---|---|
|Distributions|from|COIF|Charities|Ethical|Investment|Fund|68,469|66,825|
||||||||68,469|66,825|
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|||||||||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|
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|||||||||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|
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||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|
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||||2021|2020|
|---|---|---|---|---|
|Grants|payable||24,745||
|Legal|and professional|fees|6,000||
|Audit|services||2,520|2,520|
||||33/65|2,520|
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