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2022-03-31-accounts

Registered number: 07884895 (England and Wales) Charity number: 1145313

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

THE LAMBETH TRUST

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditor's report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 29

THE LAMBETH TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Mr Ken Costa
Mrs Camilla Foottit
The Hon. David Kay-Shuttleworth1
Mr David Saunderson ACA1
Mr Ade Adebajo
1
Audit and Risk Committee
Company registered
number
07884895 (England and Wales)
Charity registered
number
1145313
Registered office
Lambeth Palace
Lambeth Palace Road
London
SE1 7JU
Company secretary
Mrs Rebecca Stewart
Fundraising Director
Mrs Charlotte Mulford
Independent auditor
Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Bankers
Barclays
99 Hatton Gardens
London
EC1N 8DN
Solicitors
Hunters
9 New Square
Lincoln's Inn
London
WC2A 3QN
Investment Managers
CCLA Investment Management
Senator House
85 Queen Victoria Street
London
EC4V 4ET

Page 1

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees of the Lambeth Trust (who are also directors of the charity for the purposes of the Companies Act) are pleased to present their Report, which includes the Directors' Report, together with the audited financial statements of the Lambeth Trust for the year ended 31 March 2022.

The Report of Trustees and Financial Statements of the charity comply with the Charities Act 2011, 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).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is constituted as a limited company, limited by guarantee, as defined by the Companies Act 2006. The Trust’s governing document is its memorandum and articles of association.

Organisational structure

Governance: The Trustees, who are the directors of the company for the purposes of company law, are appointed by the Archbishop of Canterbury for fixed terms and, by mutual consent, may be reappointed. Trustees are recruited with regard to their respective areas of knowledge, skills and experience. There is a comprehensive pre-appointment briefing and a trustee induction process for new Trustees. Ongoing training is made available to Trustees as required.

Management and administration: The Lambeth Trust is administered by Rebecca Stewart (Goldstar Partners). Goldstar Partners provide charity office administration services under a contract with the Lambeth Trust. Charity Accounting Services provide book-keeping and accounting services. A separate Audit and Risk Committee, comprising two Trustees, reviews the investment performance of the Trust’s funds and the financial and risk position of the Trust. No other committees were in existence during the period under review. The Trustees, through the Audit and Risk Committee working in conjunction with the Trust Executive, carry out an annual risk assessment of the Trust. Having considered the major risks to which the Trust was exposed during the period under review, the Trustees are satisfied that arrangements are in place to identify, mitigate and monitor those risks and, in particular, to provide reasonable assurance against the risk of fraud and error.

OBJECTIVES AND ACTIVITIES

The Lambeth Trust supports the work and mission of present and former Archbishops of Canterbury. Funds are expended for personal initiatives of the current Archbishop and to support the ongoing ministry of former Archbishops.

The current priorities are prayer and the renewal of the religious life; reconciliation; and evangelism and witness.The Trustees direct the Lambeth Partnership, which was set up in 1991 when Lord Carey was Archbishop of Canterbury. It comprises a group of a few hundred individuals, Lambeth Partners, who support the work of the current Archbishop with funding, prayer and expertise. Lambeth Partners are invited to attend events at various times throughout the year.

Additionally, Charitable Trusts and Foundations have supported the work of the Lambeth Partnership during the year. Trustees generally expect to make grants from funds raised through these sources as they arise, to support the Archbishop’s work. In addition, the Trustees administer a permanent endowment. The endowment was established from a grant of £1.1m made in 2014 by The Maurice & Hilda Laing Charitable Trust, together with matched gifts of a further £100k. The endowment funds are invested with the aim of maintaining their real value over time while delivering an annual income to be used to support the work of successive Archbishops of Canterbury.

Page 2

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

ACHIEVEMENT AND PERFORMANCE

2021/22

The Trustees continue to be focussed on funding the three priorities of Archbishop Justin Welby. Archbishop Justin has identified three priorities for his ministry:

  1. The renewal of prayer and the religious life

  2. Reconciliation

  3. Evangelism and witness

The renewal of prayer and the religious life

During the year, the Trustees have supported this first priority of Archbishop Justin. The Archbishop's work is focused on reviving the church to serve Christ through encouraging a renewal both of prayer and the religious life within the Church.

The Community of St Anselm started in September 2015, supported by a grant from the Trustees. The Community of St Anselm (http://stanselm.org.uk) is a religious community, gathering young Christians aged 2035 from all over the world for a year of prayer, study and service to the poor based at Lambeth Palace and hence at the heart of Archbishop Justin's ministry. The year is a transformative experience, aimed at laying the foundations to enable leaders of tomorrow to serve with integrity, confidence and humility in their sphere of activity. During this seventh year of operation, the ministry was impacted by the global pandemic and the cohort’s arrival was delayed until January 2022. There were 9 residential members plus some non-residential members of the Community of St Anselm. The Community of St Anselm is led by the Dean, the Reverend Simon Lewis.The Community of St Anselm received a grant of £165,000 from the Lambeth Trust during the year.

Reconciliation

During the year under review, the Trustees have supported Archbishop Justin's second priority, his Reconciliation Ministry. Work in this area included:

The Archbishop's Reconciliation Ministry has been led by the Archbishop’s Adviser for Reconciliation, The Reverend Canon Flora Winfield DL DD.The Trustees supported the Archbishop's priority of Reconciliation through a grant of £313,000 during the year to the Reconciling Leaders Network. Additionally £38,000 was given to Women on the Frontline.

Evangelism

Enabling every Christian to share their faith is the third priority of Archbishop Justin. Archbishop Justin wants to see every church effective in introducing people to Jesus Christ and every Christian to share the gospel with confidence. This area of the Archbishop's ministry is led by the Archbishop's Adviser for Evangelism, the Reverend Canon Chris Russell.During the year, the Trustees funded the Archbishop's evangelism work by a grant of £80,000 to fund staff roles within the Evangelism team; and £30,000 to support mission work.

Page 3

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Other grant making

Two other smaller grants were made by the Trustees, as follows

Future Plans

The Trustees anticipate continuing their support to enable Archbishop Justin’s ministry, primarily through funding his three priority areas – the renewal of prayer and the religious life; reconciliation; and evangelism and witness.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees maintain a risk register which is updated and reviewed at each Audit and Risk Committee meeting. The principal risk areas relate to fundraising, investment performance, governance, and reputational risk. Each identified risk is given a score based on the likelihood of its occurrence and its significance. Controls and an action plan for mitigating each risk are agreed.

During the year the main risks were identified as follows:

FUNDRAISING

During the year the Trust continued to employ a Fundraising Director to lead the effort to raise money for the Archbishop’s priorities from Lambeth Partners and from charitable trusts and foundations. The Fundraising Director reported progress to the Trustees each month in a written report. Donor income targets were also reviewed at each Trustee meeting during the year.

The principal method of fundraising is to invite existing and potential Lambeth Partners to events at Lambeth Palace so that they can hear first-hand from the Archbishop about his priority areas and the funding required. No professional fundraising agencies are used in the Lambeth Trust’s fundraising activities. The Lambeth Trust follows the Fundraising Code of Practice and there have been no issues of non-compliance with the Code of Practice nor complaints received in relation to fundraising during the year. The individuals involved in the Trust’s fundraising activities are aware of the need to conduct them in such a way as to avoid unreasonable intrusion, unreasonably persistent approaches or placing undue pressure on a vulnerable person or other members of the public.

GRANT MAKING POLICY

All grants relate to the ministry of the current Archbishop of Canterbury and where appropriate, to the needs of former Archbishops of Canterbury. Funding requests are submitted in written form to the Trustees. The Archbishop of Canterbury and members of his senior team present the plans and outline the financial needs. The Trustees assess each request and make grants for the financial year.

Page 4

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW

The total income for the year was £760,959 comprising £643,727 from donations and £117,232 from investment income. The donations were from Lambeth Partners who commit to support the Archbishop’s priorities of prayer and the renewal of the religious life; reconciliation; and evangelism & witness.The Lambeth Trust’s investments are managed by CCLA in line with the investment policy and objectives. A Fundraising Director continued to be employed during the year. Remuneration is set by the Trustees, taking into consideration market rates of pay for similar positions.The Trustees seek to continue to release the funds raised each year through the Lambeth Partnership through grants to support the work and ministry of Archbishop Justin.

The total funds of The Lambeth Trust at 31 March 2022 were £4,810,840 (2021: £4,605,983).

Investment policy, performance and objectives

The Trustees’ investment powers are derived from the Trust’s Memorandum and Articles of Association. The Trustees engage investment managers to manage the investments of the Trust.The Trustees’ investment policy is to maintain the real capital value of the Trust’s investments by seeking to achieve a total real rate of return of 3.75% per annum over rolling five-years periods, of which 2.5% will be in the form of income.

The current gross income yield of 2.8% is felt to be satisfactory. The current mix of the portfolio at 31 March 2022 is 63% overseas equities, 9% UK equities, 8% infrastructure and operating assets, 5% property, 9% cash and near cash, 3% private equity and other, and 3% contractual and other income. The portfolio has experienced a valuation gain of 7.8% over the last 12 months. The Trustees follow an ethical investment policy.

Reserves policy

The total funds of The Lambeth Trust at 31 March 2022 were £4,810,840 (2021: £4,605,983) of which £1,978,603 (2021: £1,843,658) were held as permanent endowment. The balance represents unrestricted funds of £2,832,237 (2021: £2,730,325), of which £538,189 (2021: £541,518) were held in tangible fixed assets, leaving the balance of free reserves of the Trust of £2,294,048 (2021: £2,431,235).

Taking one year with another, the Trustees seek to spend all net income as it arises. Trustees seek to maintain a sufficient capital base of unrestricted funds appropriate to the operation of the Trust while deriving spendable funds from this source which are used for the purposes of the charity. The Trustees consider that the value of such funds at 31 March 2022 meets these objectives.

Public Benefit

In considering requests for, and in making, all grants, the Trustees have regard to the Charity Commission’s guidance on public benefit. Taking the Charity Commission's guidance into consideration, the Board is satisfied that the public benefit requirements have been met. The Archbishop's priorities of prayer, evangelism and reconciliation provide resources to encourage people in their Christian faith.

Going Concern

After making appropriate enquiries, including assessments of the key risks and future budgets, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason the Trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies at Note 2.3.

Page 5

THE LAMBETH TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees (who are also the directors of The Lambeth Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the preventing and detection of fraud and other irregularities.In so far as each of the

Trustees are aware that there is no relevant audit information of which the charitable company’s auditors are unaware. Additionally each of the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Approved by order of the members of the board of Trustees on 4 July 2022

and signed on their behalf by:

Mr Ken Costa Chair of Trustees

Page 6

THE LAMBETH TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LAMBETH TRUST

Opinion

We have audited the financial statements of The Lambeth Trust (the 'charity') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company'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.

Page 7

THE LAMBETH TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LAMBETH TRUST (CONTINUED)

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, except to the extent otherwise explicitly stated in our report, 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

(A company limited by guarantee)

THE LAMBETH TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LAMBETH TRUST (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for UK operations were taxation legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

Page 9

(A company limited by guarantee)

THE LAMBETH TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LAMBETH TRUST (CONTINUED)

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over the timing of income, reviewing accounting estimates for biases, reviewing regulatory correspondence including that with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood (Senior statutory auditor)

for and on behalf of Crowe U.K. LLP Statutory Auditor 55 Ludgate Hill London EC4M 7JW

Date: 4 October 2022

Page 10

THE LAMBETH TRUST

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations
4
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net expenditure
before net gains on
investments
Net gains on
investments
Net
income/(expenditure)
Transfers between
funds
19
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2022
£
360,477
117,232
477,709
90,206
507,717
597,923
(120,214)
192,126
71,912
30,000
101,912
2,730,325
101,912
2,832,237		 Restricted
funds
2022
£
283,250
-
283,250
-
285,250
285,250
(2,000)
-
(2,000)
(30,000)
(32,000)
32,000
(32,000)
-		 Endowment
funds
2022
£
-
-
-
-
-
-
-
134,945
134,945
-
134,945
1,843,658
134,945
1,978,603		 Total
funds
2022
£
643,727
117,232
760,959
90,206
792,967
883,173
(122,214)
327,071
204,857
-
204,857
4,605,983
204,857
4,810,840		 Total
funds
2021
£
653,940
96,735
750,675
102,519
764,237
866,756
(116,081)
687,214
571,133
-
571,133
4,034,850
571,133
4,605,983

The notes on pages 14 to 29 form part of these financial statements.

Page 11

THE LAMBETH TRUST

(A company limited by guarantee) REGISTERED NUMBER: 07884895 (England and Wales)

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total net assets
Charity funds
Endowment funds
19
Restricted funds
19
Unrestricted funds
19
Total funds		 58,806
20,237
79,043
(14,407)		 2022
£
538,189
4,208,015
4,746,204
64,636
4,810,840
1,978,603
-
2,832,237
4,810,840		 54,264
142,918
197,182
(13,661)		 2021
£
541,518
3,880,944
4,422,462
183,521
4,605,983
1,843,658
32,000
2,730,325
4,605,983

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

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

The financial statements were approved and authorised for issue by the Trustees on 4 July 2022

and signed on their behalf by:

Mr Ken Costa Chair of Trustees

The notes on pages 14 to 29 form part of these financial statements.

Page 12

THE LAMBETH TRUST

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Note
Cash flows used in operating activities
Net cash used in operating activities
21
Cash flows used in investing activities
Dividends, interests and rents from investments
Purchase of investments
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22
The notes on pages 14 to 29 form part of these financial statements		 2022
£
(239,913)
117,232
-
117,232
(122,681)
142,918
20,237		 2021
£
(239,079)
96,735
(145,763)
(49,028)
(288,107)
431,025
142,918

Page 13

(A company limited by guarantee)

THE LAMBETH TRUST

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

1. General information

The Lambeth Trust is a private company limited by guarantee (registered number: 07884895 England and Wales) and a Charity registered in England and Wales (number: 1145313). Its registered address is Lambeth Palace, London, SE1 7JU.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

The Lambeth 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 stated in the relevant accounting policy.

2.2 Company status

The charity is a company limited by guarantee. The members of the company are the Trustees detailed on page 1.

2.3 Going concern

Having reviewed the financial position, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and that there are no material uncertainties about its ability to continue. Accordingly they continue to adopt the going concern basis in preparing the financial statements.

2.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

2.5 Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Page 14

(A company limited by guarantee)

THE LAMBETH TRUST

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

2. Accounting policies (continued)

2.5 Expenditure (continued)

Grant expenditure - Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Grants offered subject to conditions which have not been met at the year end are noted as a commitment but not accrued as expenditure.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are recorded at cost.

Depreciation is provided on the following basis:

Long-term leasehold property

1% straight line

Land is not depreciated.

2.8 Investments

Investments on a recognised stock exchange are stated at the mid-market price at the year end. Realised gains and losses are the difference between the opening market value and sale proceeds. The amount of unrealised gains and losses is the difference between opening and closing market values.

Net gains and losses arising on revaluation and disposals during the year are included in the Statement of financial activities.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 15

(A company limited by guarantee)

THE LAMBETH TRUST

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

2. Accounting policies (continued)

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise trade and other creditors.

2.13 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Restricted funds can only be used in for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for specific restricted purposes.

Endowment funds comprise monies that must be held indefinitely as capital. Income therefrom is credited to general funds and applied for general purposes unless under the terms of the endowment such income must be used for specific purposes, in which case it is credited to restricted funds.

3. Critical accounting estimates and areas of judgment

In the application of the charity's accounting policies, Trustees are required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the Balance Sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Page 16

THE LAMBETH TRUST

(A company limited by guarantee)

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

4. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
Donations
333,230
Gift aid recoverable
27,247
Total 2022
360,477
Unrestricted
funds
2021
£
Donations
Donations
407,976
Gift aid recoverable
44,964
Total 2021
452,940		 Restricted
funds
2022
£
283,250
-
283,250
Restricted
funds
2021
£
201,000
-
201,000		 Total
funds
2022
£
616,480
27,247
643,727
Total
funds
2021
£
608,976
44,964
653,940

Page 17

THE LAMBETH TRUST

(A company limited by guarantee)

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

5. Investment income

Unrestricted
funds
2022
£
Investment income from portfolio
117,148
Bank interest
84
Total 2022
117,232
Unrestricted
funds
2021
£
Investment income from portfolio
96,669
Bank interest
66
Total 2021
96,735
Analysis of grants
Grants to
Institutions
2022
£
Grants, Support for work and mission of Archbishops of Canterbury
669,000
Grants to
Institutions
2021
£
Grants, Support for work and mission of Archbishops of Canterbury
632,000		 Total
funds
2022
£
117,148
84
117,232
Total
funds
2021
£
96,669
66
96,735
Total
funds
2022
£
669,000
Total
funds
2021
£
632,000

6. Analysis of grants

Page 18

(A company limited by guarantee)

THE LAMBETH TRUST

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

7. Grants

Total grants for the year are shown below with the recipient in brackets where different from the description of the grant. All grants are to institutions.

Community of St Anselm
Archbishop's Reconciliation Ministry (Church Commissioners)
Reconciling Leaders Network
Evangelism (Church Commissioners)
Thy Kingdom Come (Church Commissioners)
Speechwriter for AB Justin (Church Commissioners)
Assistant to Mrs Welby (Church Commissioners)
Women on Frontline (Church Commissioners)		 2022
£
165,000
-
313,000
110,000
-
20,000
23,000
38,000
669,000		 2021
£
150,000
101,123
173,877
70,000
85,000
-
22,000
30,000
632,000

Page 19

(A company limited by guarantee)

THE LAMBETH TRUST

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

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Support for work and mission of Archbishops of Canterbury
507,717
Unrestricted
funds
2021
£
Support for work and mission of Archbishops of Canterbury
565,237		 Restricted
funds
2022
£
285,250
Restricted
funds
2021
£
199,000		 Total
funds
2022
£
792,967
Total
funds
2021
£
764,237

9.

Analysis of expenditure by activities

Support for work and mission of Archbishops of Canterbury
Support for work and mission of Archbishops of Canterbury		 Grant
funding of
activities
2022
£
669,000
Grant
funding of
activities
2021
£
632,000		 Support
costs
2022
£
123,967
Support
costs
2021
£
132,237		 Total
funds
2022
£
792,967
Total
funds
2021
£
764,237

Page 20

(A company limited by guarantee)

THE LAMBETH TRUST

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

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Insurance
Postage and stationery
Publicity brochure
Bookkeeping and secretarial
Serviced office costs
Other costs
Depreciation
IT systems
Bank charges
Governance costs (note 10)
10.
Governance costs
Audit and legal fees
11.
Auditor's remuneration
Fees payable to the charity's auditor for the audit of the charity's annual
accounts
Fees payable to the charity's auditor in respect of:
Under accrual of prior year audit fee		 Total
funds
2022
£
1,669
867
1,965
70,088
24,733
2,402
3,329
3,105
1,996
13,813
123,967
2022
£
13,813
13,813
2022
£
11,500
-		 Total
funds
2021
£
1,610
1,548
845
78,048
24,059
1,334
3,329
3,359
2,056
16,049
132,237
2021
£
16,049
16,049
2021
£
8,400
4,800

Page 21

(A company limited by guarantee)

THE LAMBETH TRUST

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

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
75,000
5,130
6,000
86,130		 2021
£
71,000
4,586
5,600
81,186

The average number of persons employed by the charity during the year was as follows:

2022 2021
No. No.
Average headcount 1 1

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £70,001 - £80,000 1 1

Key management personnel costs amounted to £86,130 (2021: £81,186). The key management personnel is the Fundraising Director.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 22

THE LAMBETH TRUST

(A company limited by guarantee)

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

14.
Tangible fixed assets
Cost
At 1 April 2021
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Long-term
leasehold
property
£
554,834
554,834
13,316
3,329
16,645
538,189
541,518

The Trust has an 85.21% interest in the Mitre II Trust, which is a separate trust. The Mitre II Trust owns a long leasehold residential property (999 years). The property cannot be sold by the Trust without the agreement of the current occupant, a former Archbishop of Canterbury.

15. Fixed asset investments

Market value
At 1 April 2021
Net gains
At 31 March 2022		 Listed
investments
£
3,880,944
327,071
4,208,015

Page 23

THE LAMBETH TRUST

(A company limited by guarantee)

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

15. Fixed asset investments (continued)

The net gain recognised in the year ended 31 March 2021 amounted to £687,214.

At 31 March 2022, The Lambeth Trust held investments in the CBF Church of England Investment Fund. These funds are broadly invested in:

Overseas equities 63% UK equities 9% Cash and near cash 9% Infrastructure and operating assets 8% Property 5% Private equity and other 3% Contractual and other income 3%

16. Debtors

Prepayments and accrued income 2022
£
58,806
58,806		 2021
£
54,264
54,264

17. Creditors: Amounts falling due within one year

Other creditors
Accruals
Financial instruments
Financial assets
Financial assets measured at fair value through income and expenditure		 2022
£
2,407
12,000
14,407
2022
£
4,208,015		 2021
£
2,261
11,400
13,661
2021
£
3,880,944

18. Financial instruments

Financial assets measured at fair value through income and expenditure comprise listed investments.

Page 24

THE LAMBETH TRUST

(A company limited by guarantee)

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

19. Statement of funds

Statement of funds - current year

Unrestricted
funds
General Funds -
all funds
Endowment
funds
Endowment
Funds - all funds
Restricted
funds
Community of St
Anselm
Reconciliation
Total of funds		 Balance at 1
April 2021
£
2,730,325
1,843,658
32,000
-
32,000
4,605,983		 Income
£
477,709
-
119,250
164,000
283,250
760,959		 Expenditure
£
(597,923)
-
(121,250)
(164,000)
(285,250)
(883,173)		 Transfers
in/out
£
30,000
-
(30,000)
-
(30,000)
-		 Gains/
(Losses)
£
192,126
134,945
-
-
-
327,071		 Balance at
31 March
2022
£
2,832,237
1,978,603
-
-
-
4,810,840

Page 25

(A company limited by guarantee)

THE LAMBETH TRUST

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

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Endowment funds
The Endowment Fund
Restricted funds
Community of St Anselm
Reconciliation
Total of funds		 Balance at
1 April 2020
£
2,483,883
1,520,967
30,000
-
30,000
4,034,850		 Income
£
549,675
-
152,000
49,000
201,000
750,675		 Expenditure
£
(659,308)
(8,448)
(150,000)
(49,000)
(199,000)
(866,756)		 Gains/
(Losses)
£
356,075
331,139
-
-
-
687,214		 Balance at
31 March
2021
£
2,730,325
1,843,658
32,000
-
32,000
4,605,983

The Endowment Fund

This fund was initiated by the Maurice & Hilda Laing Charitable Trust to provide a dependable income from which the initiatives of the Archbishop of Canterbury can be funded.

Community of St Anselm

Funds received to support the religious community based at Lambeth Palace.

Reconciliation

Funds received to support the Archbishop's priority of reconciliation.

Transfers

The £30k transfer was made to adjust an earlier year's £30k restricted spending allocated to the unrestricted fund.

Page 26

(A company limited by guarantee)

THE LAMBETH TRUST

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

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
538,189
Fixed asset investments
2,229,412
Current assets
79,043
Creditors due within one year
(14,407)
Total
2,832,237		 Endowment
funds
2022
£
-
1,978,603
-
-
1,978,603		 Total
funds
2022
£
538,189
4,208,015
79,043
(14,407)
4,810,840

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
541,518
2,037,286
165,182
(13,661)
2,730,325		 Restricted
funds
2021
£
-
-
32,000
-
32,000		 Endowment
funds
2021
£
-
1,843,658
-
-
1,843,658		 Total
funds
2021
£
541,518
3,880,944
197,182
(13,661)
4,605,983

Page 27

THE LAMBETH TRUST

(A company limited by guarantee)

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

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
(Increase)/decrease in debtors
Increase/(Decrease) in creditors
Net cash used in operating activities
22.
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1 April
2021
£
Cash at bank and in hand
142,918
142,918		 2022
£
204,857
3,329
(327,071)
(117,232)
(4,542)
746
(239,913)
2022
£
20,237
20,237
Cash flows
£
(122,681)
(122,681)		 2021
£
571,133
3,329
(687,214)
(96,735)
(28,900)
(692)
(239,079)
2021
£
142,918
142,918
At 31 March
2022
£
20,237
20,237

Page 28

THE LAMBETH TRUST

(A company limited by guarantee)

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

24. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £6,000 (2021: £5,600) . Contributions of £863 (2021: £ 797) were payable to the fund at the Balance sheet date and are included in creditors.

25. Operating lease commitments

At 31 March 2022 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2022 2021
£ £
Not later than 1 year 2,723 1,362

26. Related party transactions

Ken Costa, a Trustee of the charity is also a Trustee of the Reconciling Leaders Network, a grant beneficiary (see note 7 for the amount of grants paid). No grants were outstanding at the year-end.

There were no other related party transactions during this or the prior year.

Page 29