## **THE WORSHIPFUL COMPANY OF GLOVERS**
**OF LONDON CHARITABLE ENDOWMENT**
**Registered Charity Number 1142506**
**ANNUAL REPORT OF THE TRUSTEE AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021**
1
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **ANNUAL REPORT OF THE TRUSTEE AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021**
The Trustee presents the annual report and the accounts of the charity for the year ended 5 April 2021 which have been prepared in accordance with current statutory requirements, the accounting policies set out in Notes 1 and 2 to the accounts, the charity's governing document and the Statement of Recommended Practice - Accounting and Reporting by Charities (Charities SORP FRS 102).
## **ADMINISTRATIVE INFORMATION**
The charity is registered with the Charity Commission and numbered 1142506.
Its Trustee and principal advisers are :-
|Trustee:|The Worshipful Company of Glovers of London|The Worshipful Company of Glovers of London|
|---|---|---|
|Registered Address:|65 Leadenhall Street||
||London||
||EC3A 2AD||
|Bankers:|Barclays Bank plc||
||128 Moorgate||
||London||
||EC2M 6SX||
|Independent Examiner:|Greg Stevenson FCA||
||Knox Cropper LLP||
||65 Leadenhall Street||
||London||
||EC3A 2AD||
|Investment Advisers:|Ruffer LLP|Cazenove Capital Management|
||80 Victoria Street|100 Wood Street|
||London|London|
||SW1E 5JL|EC2V 7ER|
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The charity was established by a Deed of Trust dated 8 February 2011.
The Master and Wardens of the Worshipful Company of Glovers of London have appointed that Company as a corporate trustee of the Charitable Endowment.
By decision of the Company's Court, a Charitable Trust Board has been appointed to act with full delegated powers to manage the charity. The Court retains the power to appoint and remove members of the Charitable Trust Board. During the year, and since, the members of the Board were:
AJC Collett (Chair) D Cave (appointed 3 November 2020) R De Courcey (retired 3 November 2020) TR Morris AD Seth-Smith CA Smith (appointed 25 November 2020) SCN Somerville D Stone (retired 16 September 2020) AJ Wadsworth (retired 27 May 2021)
## **RISK POLICY**
The Trustee has considered the risks faced by the charity and identified the major risks to which it is exposed. It has reviewed those risks and satisfied itself that there are controls in place to mitigate their potential effect.
2
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **ANNUAL REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2021**
## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT**
The objects of the charity have remained unchanged since its establishment and are to raise funds and to make charitable grants for the furtherance of such charitable objects and purposes for the public benefit or such charitable institutions or charitable foundations in such manner and in such proportions as the Trustee shall in its absolute discretion think fit.
The charity was specifically established to build up a long term source of future charitable funding.
The Trustee may, in its discretion, for the period of 21 years from the date of establishment of the charity, instead of applying the income in any year, accumulate all or any part of the income by investing it and the resulting income.
The Trustee confirms that it has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities, specifically in respect of consideration of future recipients of charitable grants.
## **ACHIEVEMENTS AND FINANCIAL REVIEW**
Donations received in the year totalled £28,187 (2019-20 £25,923). This sum included a grant of £26,000 (2019-20 £25,000) paid from the unrestricted funds of the Company's related charity, the Worshipful Company of Glovers of London Charitable Trust.
The grant paid from the Charitable Trust represent the value of donations made for the specific purpose of growing the Company's charitable funds. The Trustee considers that they are most appropriately held within the Charitable Endowment.
The charity duly received the legacy accounted for last year from the estate of Ralph Waggett, a former liveryman, of £30,000 to be applied for educational purposes. Consideration is being given to a suitable project.
The charity's investment policy is to maximise the monetary value of its funds. There are no restrictions on investment. The charity's unrestricted assets are managed by Ruffer LLP, who are required to ensure that the portfolio provides a spread between risk and balance. The assets held in the Ralph Waggett restricted fund are managed by Cazenove with a view to providing an income. Both investment managers adhere to ESG principles.
Invested assets at the end of the financial year had grown to a total of £458,308 from £330,804 at the start.
The Trustee considers that the financial state of the charity is satisfactory and adequate to continue to fulfil its objectives.
The Trustee has kept under review the policy on the level of reserves maintained and this is set out on page 3 of this report.
3
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **ANNUAL REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2021**
## **GOING CONCERN AND COVID-19**
The Trustee considers there to be no material uncertainties over the charity's ability to continue as a going concern with its annual funding from a part of the charitable donations from members of the Company intended to enable it to grow its capital funds.
Covid-19 is not expected to have any detrimental impact either on its income or activities, while its plans remain aimed at growth in its capital value over the period allowed in its trust deed.
## **RESERVES**
The charity has no current commitments while it seeks to accumulate a long term source of charitable funding. It has no other requirement to maintain free reserves other than retaining a small bank balance to meet the expenditure necessary to deal with its administration.
At 5 April 2021, the charity's total reserves were £460,244 (2020 - £361,442). Its uninvested reserves totalled £1,936 (2020 - £30,638).
## **PLANS FOR FUTURE YEARS**
The Trustee has considered plans for the future development of the charity. It aims to grow the capital value by accumulating donations and investing these and the resulting income over the period of 21 years permitted in its trust deed.
On behalf of the Trustee
TR Morris
Master
22 September 2021
4
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 5 APRIL 2021**
|Notes
INCOME
Donations
3
Legacy
Investment income
TOTAL INCOME
EXPENDITURE
Charitable activities
5
Raising funds:
Investment management costs
TOTAL EXPENDITURE
NET INCOME BEFORE GAINS
ON INVESTMENTS
Gain on revaluation of investments 6
NET MOVEMENT IN FUNDS
Reconciliation of funds
FUNDS AT 6 APRIL 2020
FUNDS AT 5 APRIL 2021|**2021**
**2021**
**2021**
**2020**
**£**
**£**
**£**
**£**
Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
28,187
-
28,187
25,923
-
-
-
30,000
-
269
269
-|
|---|---|
||28,187
269
28,456
55,923|
||888
-
888
864
-
14
14
-|
||888
14
902
864|
||27,299
255
27,554
55,059
70,247
1,001
71,248
11,423|
||97,546
1,256
98,802
66,482
331,442
30,000
361,442
294,960|
||428,988
31,256
460,244
361,442|
The statement includes all gains and losses recognised during the year. All activities are regarded as continuing.
**5**
**THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **BALANCE SHEET**
|**5 APRIL 2021**
Notes
FIXED ASSETS
Investments
6
CURRENT ASSETS
Debtors
7
Cash at bank
CREDITORS DUE
WITHIN ONE YEAR
8
NET CURRENT ASSETS
NET ASSETS
UNRESTRICTED FUNDS
RESTRICTED FUNDS
9
Approved on behalf of the Trustee:|**2021**
**2020**
£
£
£
£
458,308
330,804
87
30,025
2,737
1,477
2,824
31,502
888
864
1,936
30,638
460,244
361,442
428,988
331,442
31,256
30,000
460,244
361,442|**2021**
**2020**
£
£
£
£
458,308
330,804
87
30,025
2,737
1,477
2,824
31,502
888
864
1,936
30,638
460,244
361,442
428,988
331,442
31,256
30,000
460,244
361,442|
|---|---|---|
||||
|||361,442|
|||331,442
30,000|
|||361,442|
||||
TR Morris
Master
AJC Collett
Chairman of the Charitable Trust Board
22 September 2021
**6**
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021**
## 1 BASIS OF PREPARATION
## 1.1 BASIS OF PREPARATION OF ACCOUNTS
The financial statements of the charity have been prepared in accordance with the Charities SORP (FRS 102) '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)' and the Charities Act 2011.
## 1.2 GOING CONCERN
The Trustee considers that there are no material uncertainties over the charity's ability to continue as a going concern. The charity aims to grow its capital value by accumulating donations over the period of 21 years permitted in its trust deed.
## 1.3 PUBLIC BENEFIT
The charity meets the definition of a public benefit entity as defined by FRS 102.
## 2 ACCOUNTING POLICIES
## 2.1 INCOME
Donations are recognised on receipt. Gift Aid is recognised when the income to which it relates is received. Legacies are accounted for once the charity has evidence of probability of receipt and the value of the legacy can be reliably measured. Investment income is accounted for when receivable.
## 2.2 EXPENDITURE AND LIABILITIES
Liabilities are recognised once there is a legal or constructive obligation to pay and settlement is probable and quantifiable.
## 2.3 INVESTMENTS
Investments are stated at market value. Unrealised gains and losses on revaluation are included in the Statement of Financial Activities.
## 2.4 CASH AT BANK
Cash at bank comprises bank deposits repayable upon demand.
## 2.5 RESTRICTED FUNDS
These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
## 3 DONATIONS
The amount of £28,187 (2019-20 - £25,923) credited in the year includes £26,000 (2019-20 - £25,000) paid over from a related charity, the Worshipful Company of Glovers of London Charitable Trust. This sum represented the value of donations made to that charity during 2019-20 but intended by the donors to be held to grow the Company's charitable funds. Accordingly, the Trustee considered it appropriate that they be paid to the Charitable Endowment.
**7**
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021**
4 TRANSACTIONS WITH TRUSTEE The Trustee received no remuneration for services (2019-20 - £0). No expenses have been reimbursed to the Trustee or members of the Charitable Trust Board (2019-20 - £0).
## 5 EXPENDITURE ON CHARITABLE ACTIVITIES
|SUPPORT COSTS
Governance cost - Independent examiner's fee
6 INVESTMENTS
Market value at 6 April 2020
Additions
Unrealised gain on revaluation
Market value at 5 April 2021
Cash deposits
The charity's investments comprise:
Unrestricted funds
79,086.63
Ruffer Total Return
C Accumulation Units
Restricted funds
53,899 Cazenove Charity Multi-Asset Fund
Class S units
Cash deposits
7 DEBTORS
Legacy
Gift Aid
8 CREDITORS DUE WITHIN ONE YEAR
Accruals
9 RESTRICTED FUND
Ralph Waggett Education Fund
Balance at 6 April 2020
Net movement in year
Balance at 5 April 2021|**2021**
**2020**
**£**
**£**
888
864|
|---|---|
||330,804
293,381
55,959
26,000
71,248
11,423|
||458,011
330,804
297
-|
||458,308
330,804|
||Market
Value
Cost
£
£
427,052
345,692|
||30,959
29,958
297
297|
||31,256
30,255|
||**2021**
**2020**
**£**
**£**
-
30,000
87
25|
||87
30,025|
||888
864|
||30,000
-
1,256
30,000|
||31,256
30,000|
In 2019-20, the charity accounted for a legacy from the estate of Ralph Waggett, a former liveryman, to be applied for educational purposes. This was received during 2020-21.
**8**
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021**
## 10 RELATED PARTY TRANSACTIONS
The charity and its related charity, The Worshipful Company of Glovers of London Charitable Trust, are under the common control of the Worshipful Company of Glovers. During the year £26,000
(2019-20 £25,000) was paid to the charity by the Charitable Trust, representing the value of donations made to that charity during 2019-20 but intended by the donors to be held for the long term to grow the Company's charitable funds.
- 11 STATEMENT OF FINANCIAL ACTIVITIES FOR 2019-20 SHOWING TOTAL FUNDS SPLIT BY FUND DESIGNATION
|INCOME
Donations
Legacy
EXPENDITURE
Charitable activities
NET INCOME BEFORE GAINS
ON INVESTMENTS
Gain on revaluation of investments
NET MOVEMENT IN FUNDS
Reconciliation of funds
FUNDS AT 6 APRIL 2019
FUNDS AT 5 APRIL 2020|£
Unrestricted
Funds
25,923
-
25,923
864
25,059
11,423
36,482
294,960
331,442|£
Restricted
Funds
-
30,000
30,000
-
30,000
-
30,000
-
30,000|£
Total
Funds
25,923
30,000|
|---|---|---|---|
||||55,923|
||||864|
||||55,059
11,423|
||||66,482
294,960|
||||361,442|
**9**
## **THE WORSHIPFUL COMPANY OF GLOVERS OF LONDON CHARITABLE ENDOWMENT**
## **Independent Examiner's report to the Worshipful Company of Glovers of**
## **London Charitable Endowment for the year ended 5 April 2021**
I report on the accounts of the Charity for the year ended 5 April 2021, which comprise the Statement of Financial Activities, the Balance Sheet and related notes.
This report is made to the Trustee in accordance with the terms of my engagement. My work has been undertaken so that I might carry out an Independent Examination of the financial statements in accordance with the General Directions given by the Charity Commissioners. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustee for my examination, for this report or for the opinions I have formed.
## RESPECTIVE RESPONSIBILITIES OF THE TRUSTEE AND EXAMINER
The Charity's Trustee is responsible for the preparation of the financial statements. The Charity's Trustee considers that an audit is not required for this year (under section 145 of the Charities Act 2011 (the Act) and that an independent examination is needed. It is my responsibility to examine the financial statements (under section 145(1)(a) of the Act), to follow procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Act and to state whether particular matters have come to my attention.
## BASIS OF INDEPENDENT EXAMINER'S REPORT
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records.It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Trustee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
## INDEPENDENT EXAMINER'S STATEMENT
In connection with my examination, no material matters have come to my attention which give me cause to believe that in any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Greg Stevenson FCA Knox Cropper LLP Chartered Accountants 65 Leadenhall Street London EC3A 2AD
22 September 2021