2020-12-31-accounts - Lord Crewe's Charity

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Registered Charity Number: 1155101

LORD CREWE’S CHARITY

Financial Statements

For The Year Ended 31 December 2020

LORD CREWE'S CHARITY

Financial Statements For The Year Ended 31 December 2020

Index
	Pages
Trustees’ report	2 - 11
Auditor's report	12 - 14
Statement of Financial Activities	15
Balance sheet	16
Statement of Cash Flows	17
Accounting policies and Notes to the financial statements	18 - 30

LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report and audited financial statements of Lord Crewe's Charity (the Charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the Charity have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS102) effective 1 January 2019.

Structure, governance and management

a. CONSTITUTION

Lord Crewe’s Charity (Charity No. 1155101) is governed by its constitution as a Charitable Incorporated Organisation.

A linked Charity, Lord Crewe’s Library and Archives Trust (Charity No. 1155101-3), owns the libraries and archives collections currently held at Durham Cathedral, Durham University, the North East Religious Learning Resource Centre, and the Northumberland Records Office. This is governed by its Deed of Trust dated 31 December 2013. On 1 January 2014 the assets of the Reverend John Sharp's Library (Charity number 230347-2) were transferred to the new Charitable Incorporated Organisation for it to continue to act as Corporate Trustee for those assets.

Prior to its incorporation as a CIO (on 1 January 2014, the activities of the Lord Crewe's Charity were carried out by a separate unincorporated charity (charity number 230347). The Charities Commission directed that this charity and the Lord Crewe’s Library and Archives Trust (charity number 1155101-3) shall be treated as forming part of the Lord Crewe's Charity (charity number 1155101) for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011.

On 1 January 2014, the activities, assets and liabilities of the old unincorporated charity (charity number 230347) were transferred to this Charitable Incorporated Organisation, under a scheme of arrangement approved by the Charity Commission.

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The management of the Charity is the responsibility of the Trustees who are elected and co‑opted under the terms of the Charitable Incorporated Organisation's constitution.

There are seven Trustees of whom one is appointed ex officio, three are nominated and three are co-opted. Of these, three ordained Trustees are senior members of the clergy with detailed knowledge and oversight of clergy in the dioceses of Durham and Newcastle, and three lay Trustees have wide and detailed experience of operating estates similar to those of the Charity. Of the three nominative Trustees, two are nominated by the Bishop of Durham and one by the Bishop of Newcastle. The ex-officio trustee is the Rector of Lincoln College Oxford.

New Trustees, when required, are identified and recruited only from those senior clergy or estate owner managers who are known by the appointing bishops or the other Trustees to have the necessary expertise to fulfil these criteria.

c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

All Trustees are familiar with charity law through their service on trustee boards of other charities and through information provided by the Charity Commission. Training, briefing and updating sessions are provided as required. The Clerk circulates relevant information received from the Charity Commission and other sources to the Trustees. The Charity’s web site, contains a secure area for the Trustees and their advisers. A wide range of key documents and reports are available here for inspection by the Trustees at any time. In addition a secure Trustees’ forum to allow discussion of issues as required has been provided, although in practice, communication with and between Trustees tends to take place by email.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

d. ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Trustees elect a chair and vice-chair annually at the first meeting of the year. All business is formally presented, discussed and, when needed, voted on, each trustee having one vote and the chair a casting vote if required.

The Trustees have delegated the administration of the Charity to the Clerk and the management of the estates to the Receiver.

Both the Clerk and the Receiver are in frequent contact with the chair or vice-chair, or with the Trustees when appropriate. The board meets and discusses business formally at least four times a year, one of which includes an estates visit, alternating between Blanchland and Seahouses. This allows the Trustees to see the estates, meet the farming and other tenants, and to discuss relevant issues with them.

The Charity is linked to the Lord Crewe's Library and Archives Trust (Charity number 1155101-3) and is unconnected with any other Charity, although it grants £1,650 annually to Lord Crewe’s Durham Apprenticeship Fund, as one of the sums specified in the Trust Deed. None of the Trustees of the Charity are on the board of the Apprenticeship Fund, although the Clerk to the Trustees is.

e. KEY MANAGEMENT PERSONNEL REMUNERATION

The Trustees consider the Board of Trustees and the Clerk as comprising the key management personnel of the Charity in charge of directing and controlling the Charity and running and operating the Charity on a day to day basis. All Trustees give their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 9 to the accounts.

Trustees are required to disclose all relevant interests and register them with the Clerk and in accordance with the Charity’s policy withdraw from decisions where a conflict of interest arises.

The pay of the Clerk is reviewed annually and normally increased in accordance with average earnings.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Reference and Administrative Details

Title	Lord Crewe’s Charity
Charity Registration Number	1155101
Address	The Miners Hall
	Durham
	DH1 4BD
Trustees:		Appointed	Resigned
Nominative	*By the Bishop of Durham:*
	Mr James Fenwick
	The Venerable R G Cooper
	*By the Bishop of Newcastle:*
	Mr J P P Anderson
Co-optative	The Reverend Canon J S Bain
	Mr J H Blackett-Ord
	The Venerable P J A Robinson		30/06/20
	The Rt Rev M Wroe	20/11/20
Ex-officio	Professor H R Woudhuysen,
	The Rector of Lincoln College, Oxford
The Clerk	Mr C Smithers
The Receiver	Mr M Orde FRICS, Savills
Bankers	Barclays Bank plc
	6 Market Place
	Durham
	DH1 3ND
Auditors	MHA Tait Walker
	Chartered Accountants
	Bulman House
	Regent Centre
	Gosforth
	Newcastle upon Tyne
	NE3 3LS
Solicitors	Womble Bond Dickinson (UK) LLP
	One Trinity
	Broad Chare
	Newcastle upon Tyne
	NE1 2HF
Investment Managers	Rathbone Investment Management Limited
	8 Finsbury Circus
	London
	EC2M 7AZ

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and Activities

a. POLICIES AND OBJECTIVES

The principal objects of the Charity, after meeting the costs of managing itself and its properties, and paying a number of annual sums specified in the Trust Deed (totalling £8,020 in 2020), are to assist necessitous clergy and their dependents in the Dioceses of Durham and Newcastle, particularly for the education of their children, to assist them in other demonstrable financial need, and further to provide charitable relief of poverty and of sickness for the general benefit of the Dioceses of Durham and Newcastle, giving preference to people resident in parishes where the Charity owns land or has the right of presentation to the benefice. The Trustees use their many clerical contacts within the dioceses to further these objects and their grant making policy reflects areas of identified need.

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives, in planning future activities and setting the grant making policy for the year.

The Charity furthers its charitable purposes for the public benefit in the following ways:

making grants to beneficiaries stipulated in the will of the endowing benefactor.
relieving the hardship of a necessitous section of the public by contributing to the education of their children, and by helping them in other deserving cases of financial hardship not of their own making.
contributing to the maintenance of good mental and physical health of clergy and their families.
supporting the holders of religious office to act as such, including the provision of grants to facilitate their personal, spiritual and vocational refreshment and by easing the costs of moving from tied accommodation while in active ministry to their homes in retirement.
contributing to the running costs of the Sharp Libraries of modern theology for the benefit of clergy, readers and University students in Durham and Newcastle, but also open to all with a genuine interest. This is achieved through the associated charity The Lord Crewe’s Libraries and Archives Trust, Registered Charity no. 1155101-3.
facilitating the attendance of many deserving students at Oxford University who would otherwise be precluded on financial grounds.
taking action to relieve poverty of others individually or generally in the geographical area covered by the Charity, namely the Anglican Dioceses of Durham and Newcastle.

The Charity’s Charitable Incorporated Organisation’s Constitution also permits payments to Lincoln College Oxford (this year totalling £141,446) for charitable purposes there.

b. STRATEGIES FOR ACHIEVING OBJECTIVES

The principal beneficiaries of grant aid are the stipendiary clergy of the two Dioceses and their dependants. The Trustees are conscious of the financial pressures facing many of them. Financial assistance with the costs incurred in educating their dependents (from the primary stage through to higher education), Chairman's grants to address individual cases of hardship, and resettlement grants assisting with costs of moving from clergy housing on retirement are three examples of practical means of easing these difficulties.

Whereas the maintenance and proper management and development of its estates and properties remains a key priority, any surplus arising in the estate revenue account and the income arising out of its financial investments enables the Trustees to further the Charity’s aims by the making of grants.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

c. ACTIVITIES FOR ACHIEVING OBJECTIVES

In 2018 the Trustees agreed planning assumptions for a three year grants envelope, through to the end of 2020, encompassing clergy educational, special and resettlement grants; scholarship and hardship funds and a music fellowship at Lincoln College Oxford; and support for a number of activities supporting various needs of clergy through the Dioceses of Durham and Newcastle. This programme first started in 2011 and has been subject to regular evaluation.

Significant activities during the year which form the bulk of what is reported in the Statement of Financial Activities were:

The on-going management of the Charity’s estates and properties, including routine repairs to maintain capital values and income levels, significant refurbishments or improvements usually resulting in increased income, and from time to time major projects significantly uplifting capital values and income as a result of substantial investment in a property.
The making of grants, particularly to clergy and their families in the dioceses of Durham and Newcastle, but also to other beneficiaries eligible under the Schemes.

The Charity owns the contents of the Sharp Libraries in Durham and Newcastle and makes them available to all clergy, ordinands and readers in the two dioceses, as well as to University students. The Charity also owns the Bamburgh Library (printed books collection from 17th Century onwards), held by the Durham University Library Special Collections, and the Bamburgh Music Library held by Durham Cathedral Library.

The Charity continues to review its systems, partly in the light of recommendations from successive audits, and also to achieve greater administrative efficiency.

Achievements and performance

a. REVIEW OF ACTIVITIES

In 2020 the Charity supported individual members of the clergy in the Dioceses of Durham and Newcastle by making:

117 educational grants totalling £143,968 to members of the clergy in support of the education of their children. (These grants related to two educational years – second instalments of grants for 2019-20 and first instalments of grants for 2020-21). Educational grants contained an element of scaling, to ensure those on the lowest incomes within the family income threshold of £53,040 received grants proportionately larger grants than those at the higher end of the scale.
21 grants totalling £24,506 to members of the clergy to assist with specific instances of hardship and 12 grants totalling £21,000 to assist clergy moving out of church housing on retirement.

In 2020 the Charity provided £141,446 to Lincoln College for charitable purposes comprising £50,000 Support for Undergraduates, £50,000 Support for Postgraduates, £20,000 (50% of grant offered) for Junior Research Fellow in Music, £5,000 (50% of grant offered) for Schools outreach in North East England and £16,446 to complete the grants programme for 2019/20.

The Charity also made a grant totalling £113,028 to the Diocese of Newcastle for a package of approved projects to support clergy through services including pastoral care and counselling, mentoring, continuing ministerial development, and support for engagement in parishes in areas of high deprivation.

A grant of £174,892 was made to Durham Diocese for the Bridge Project, assisting congregations to work with their parish community and together seek its wellbeing, and for pastoral care and counselling to support clergy wellbeing.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Grants to other organisations included £10,000 for an additional years’ support for the employment costs of a part time warden at Seahouses Hostel, £6,000 to the Seahouses Youth Project, £10,000 to the Farnes Outreach Project and 20 grants to the School's Outreach Project, supporting those Church of England schools with the highest percentage of pupils eligible for Free School Meals with their response to issues arising from Covid.

2020 was the seventh full year of discretionary investment management by Rathbones and the sixth full year in which they worked with the Trustees’ independent investment adviser, who assisted on setting targets and reporting, and who reviews the investment policy.

Savills continue as the Charity’s Estate Managers, with Mr Michael Orde remaining as Receiver.

There were no significant positive or negative factors affecting the achievement of objectives in 2020 compared to 2019 or affecting future plans for 2021 and beyond. The Schools Grants Programme represented a response to the impact Covid and lockdown had on access to learning in those Church of England Schools in the two Dioceses whose pupils were most affected. The financial base of the Charity through its endowment and the management of the estates by Savills and the investment portfolio by Rathbones ensure that the Charity continues on a sound financial footing.

There were no changes in key personnel and none are anticipated in 2021.

Financial review

a. FINANCIAL REVIEW

The two primary sources of income for the Charity are from the estates and from the investment portfolio.

In 2020 the net income from these sources was:

Funding Source	Total	% of total income
Estates (net income)	£661,129	71.1%
Investment Portfolio (net income)	£257,814	27.7%
Other	£11,043	1.2%
Total	£929,986	100.00%

b. RESERVES POLICY

The Trustees consider the assets to be sufficient to fulfil the Charity’s obligations in respect of keeping its property properly repaired, paying its staff and creditors and maintaining adequate funds to provide financial assistance to necessitous clergy and other potential beneficiaries. In order that they can enable the Charity to carry out its purpose effectively, the Trustees’ current policy is to maintain sufficient unrestricted reserves to meet at least six months’ worth of outgoings, £500,000 from the Charity’s funds, assuming payments continue at the average of the last three years.

They also maintain an Extraordinary Repair Fund (ERIF) against unforeseen expenditure required by the estates. In the past this had been maintained at an artificially high level to guard against major unforeseen expenditure. Since 2013 ERIF has been maintained at a level of £250,000, equivalent (and additional) to the amount budgeted each year for planned maintenance.

The Trustees also maintain a minimum balance of £50,000 in the Charity’s current account, to meet any immediate or urgent calls on grant funding.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The total funds of the Charity are £47,321,680 of which £40,793,540 are restricted. The unrestricted free reserves of the Charity at 31 December 2020 were £6,528,140 of which £6,211,385 are invested in stocks and shares, leaving £316,755 within current assets. This represents approximately 816% of the minimum target reserves. The unrestricted funds include the designated Extraordinary Repair Fund of £250,000.

Bearing in mind the considerable difficulties surrounding the economy and in particular current uncertainty about the funding of agriculture, the Trustees’ policy is to maintain sufficient reserves to ensure the continuation of the Charity’s activities until alternative means of income can be obtained.

Trustees are actively discussing the application of that part of the reserves which arises from unallocated income, to include estates improvements to safeguard future income and additional spending on the Charity’s charitable objectives within the scope of the Charity’s constitution.

c. GOING CONCERN

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

d. MATERIAL INVESTMENTS POLICY

Asset allocation

As at 31 December 2020, the allocation of assets, at valuation, was as follows:

	As at 31 Dec 2020 £	% of total	As at 31 Dec 2019 £	% of total
Investment Property Other Investments Total	£36,047,114 £10,490,291	77.46% 22.54%	£34,822,850 £10,193,299	77.36% 22.64%
	£46,537,405	100.00%	£45,016,149	100.00%

Fund allocation considerations

The assets of the Charity are held for several different accounts as follows:

Personal Estate Account and Endowed Assets, comprising land, properties and other investments, are not available for distribution and are regarded as long-term investments.
The Libraries and Archives Trust's investments and other net assets are included in the Charity’s balance sheet.
Extraordinary Repair Fund, maintained to provide for extraordinary repairs, improvements or rebuilding of properties. This fund is regarded as a medium to long-term investment, but may be partly utilised over a number of years to assist implementation of some of the property-related aspects of, as an example, the Blanchland Estate Sustainable Business Plan.
Other funds, which should be maintained in a sum sufficient to meet the annual expenses and disbursements of the Charity, are regarded as short term.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

e. INVESTMENT POLICY AND PERFORMANCE

General Investment Policy

The Charity was endowed by its benefactor with lands and property, a significant proportion of which it still owns. These land and buildings and the equity investments referred to below, are regarded as providing the balanced spread of investments necessary to provide for the income and growth needs of the Charity.

The Trustees seek exposure to good quality, carefully selected equities and other stock consistent with the short-term income requirements, via a well-diversified portfolio in order to minimise risk, which also provides a growing stream of dividend income which at least matches and preferably exceeds the rate of inflation and which is reflected in increasing capital value over time.

The Charity’s current investment policy was agreed in 2013. In November 2014 the Trustees appointed an independent investment manager to review investment policy, help set targets and comment on investment performance, and develop reporting with Rathbones. The Trustees continue to believe that a long term view is the way forward for the Charity.

Ethical Investment Policy

Ethical considerations form an integral part of the investment management process and Rathbones have sought and received instructions from the Charity. The investment managers seek to invest in companies that will successfully develop their business financially in the interests of their shareholders, but which also demonstrate responsible employment practices and are conscientious concerning issues of corporate governance, environmental performance and human rights and are sensitive to the communities in which they operate. Companies are monitored according to the Church of England ethical investment policy and through a developing dialogue with them.

Investment Performance

An income target for each year to 31 December is agreed with the investment managers at the start of the year. The bespoke portfolio is managed by Rathbones. The portfolio returned 2.96% compared to the primary benchmark agreed within the investment policy of 3.5%.

The agreed income target for the year to 31 December 2020 was £310,000. Actual investment income received was £310,120. The risk profile of the investments is categorised by the investment managers as “medium”. During the year, investment asset gains of £350,797 were made (an average gain of 3.34% on investment assets held) against a long-term benchmark for assets under this risk profile of 1.3%. The Trustees consider this overall performance to be acceptable.

As at 31 December 2020 the total investment asset split was as follows:

Asset Class	Asset Value £	Asset % of Total Assets
Fixed Income UK Equities Overseas Equities Alternatives Cash	£1,298,870 £4,990,761 £2,821,805 £1,091,664 £287,191	12.4% 47.6% 26.9% 10.4% 2.7%
Total	£10,490,291	100.0%

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LORD CREWE'S CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

f. RISK MANAGEMENT

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The Charity benefits from the strength and stability of its financial position, due to its endowment and its mix of residential, commercial and agricultural estates and its investment portfolio. While income may be subject to economic conditions beyond the control of the Trustees, this is mitigated by the standard of professional estates and investment management engaged on the Charity’s behalf. The Trustees are able to take a long term view of investment and financial performance.

Because of this financial strength the Trustees are able to maintain the reserves policy outlined under Financial Review above. The Charity maintains reserves sufficient to meet at least six months’ outgoings, which should be sufficient to deal with any unforeseen situations and allow time for any remedial action necessary to be undertaken.

The Charity’s Risk Management Strategy provides:

An annual review of the principal risks and uncertainties faced by the Charity and its associated charities.
Policies, systems and procedures to mitigate those risks identified in the annual review.
Thus managing any potential impact on the Charity and its beneficiaries should these or other risks materialise.

Fundraising

The charity is required to report how it deals with fundraising from the public. As an endowed charity the Charity does not raise funds from the public by any method.

Plans for the future

a. FUTURE DEVELOPMENTS

The Trustees undertake an annual review of spending plans at the beginning of each year.

2021 marks the three hundredth anniversary of the death of Lord Crewe and therefore the Tercentenary of the Charity. The Charity will embark on a series of grants and other activities in its celebration.

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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees 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).

The law applicable to charities in England & Wales 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 of the Charity for that period. 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 judgments and accounting estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements.
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 proper accounting records that are sufficient to show and explain the Charity's transactions and 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

This report was approved by the Trustees on 14 May 2021 and signed on their behalf by:

14 May 2021

The Reverend Canon Stuart Bain (Chair of the Trustees)

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LORD CREWE'S CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF LORD CREWE’S CHARITY

OPINION

We have audited the financial statements of Lord Crewe's Charity (the 'Charity’) for the year ended 31 December 2020 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:

give a true and fair view of the state of the Charity's affairs as at 31 December 2020 and of its incoming resources, including its income and expenditure 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Charities Act 2011.

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 Auditors' 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 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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 Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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LORD CREWE'S CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF LORD CREWE’S CHARITY

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of 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 Charity or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 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.

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:

Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing board minutes;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

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 Auditors' report.

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LORD CREWE'S CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF LORD CREWE’S CHARITY

USE OF THE 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 Auditors' 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 its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

MHA Tait Walker Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Date:

MHA Tait Walker are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

MHA Tait Walker is a trading name of Tait Walker LLP.

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LORD CREWE'S CHARITY

Statement of Financial Activities for the year ended 31 December 2020

*Note 1* Unrestricted Funds £ 10,000 1,424,243 11,043	Restricted Funds £ - - -	Endowment Funds £ - - -
1,445,286	-	-
483,308 157,321 176,294 289,733 55,476 - 210,124	302 - - - - 33,244 -	21,690 - - - - - -
888,948	33,244	-
1,372,256	33,546	21,690
207,413	1,970	1,056,713
280,443 (352,209)	(31,576) 33,244	1,035,023 318,965
(71,766) 6,599,906	1,668 57,135	1,353,988 39,380,749
6,528,140	58,803	40,734,737

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LORD CREWE'S CHARITY

Balance Sheet as at 31 December 2020

*Note 1* Unrestricted Funds £ - 6,211,385	Restricted Funds £ - 58,803	Endowment Funds £ 36,047,114 4,220,103	2020 Total Funds £ 36,047,114 10,490,291	2019 Total Funds £ 34,822,850 10,193,299
6,211,385	58,803	40,267,217	46,537,405	45,016,149
86,514 448,102	- -	- 467,520	86,514 915,622	86,301 1,141,722
534,616 (217,861)	- -	467,520 -	1,002,136 (217,861)	1,228,023 (206,382)
316,755	-	467,520	784,275	1,021,641
6,528,140	58,803	40,734,737	47,321,680	46,037,790
6,528,140	58,803	40,734,737	47,321,680	46,037,790
- - 250,000 6,278,140	- 58,803 - -	40,734,737 - - -	40,734,737 58,803 250,000 6,278,140	39,380,749 57,135 250,000 6,349,906
6,528,140	58,803	40,734,737	47,321,680	46,037,790

Note 1: Non-designated and Designated Funds have been combined in the SOFA and balance sheet as “Unrestricted Funds”. An analysis of Designated Funds is given in Note 18.

Approved by the Board of Trustees on 14 May 2021 and signed on their behalf by:

The Reverend Canon JS Bain, Chairman of the Trustees.

The notes on pages 17 to 30 form part of these financial statements.

Page | 16

LORD CREWE'S CHARITY

Statement of Cash Flows for the year ended 31 December 2020

Note Net cash used in operating activities 20 Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward Analysis of cash and cash equivalents Cash at bank Analysis of changes in net debt 1 January 2019 £ Cash and cash equivalents 1,141,722	2020 Total Funds £ (1,333,064)	2019 Total Funds £ (1,322,698)
	1,415,929 10,000 (318,965)	1,521,699 457,520 (212,309)
	1,106,964 (226,100) 1,141,722	1,766,910 444,212 697,510
	915,622	1,141,722
	2020 £ 915,622	2019 £ 1,141,722
	Cash Flows £ (226,100)	31 December 2020 £ 915,622

Page | 17

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting Policies

a. Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 1 January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) , and the Charities Act 2011.

Lord Crewe’s Charity (Charity No. 1155101) is governed by its new constitution as a Charitable Incorporated Organisation.

A linked charity, Lord Crewe’s Library and Archives Trust (Charity No. 1155101-3), owns the libraries and archives collections currently held at Durham Cathedral, Durham University, the North East Religious Learning Resource Centre, and the Northumberland Records Office. This is governed by its Deed of Trust dated 31 December 2013.

Prior to its incorporation as a CIO (on 1 January 2014), the activities of the Lord Crewe's Charity were carried out by a separate unincorporated charity (charity number 230347). The Charities Commission directed that this charity and the Lord Crewe’s Library and Archives Trust (charity number 1155101-3) shall be treated as forming part of the Lord Crewe's Charity (charity number 1155101) for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011.

The Charity constitutes a public benefit entity as defined by FRS102.

b. Going concern

The Charity has cash resources and has no requirement for external funding. The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The Trustees consider it appropriate that the annual financial statements are prepared on a going concern basis.

c. Personal estate account and endowed assets

The endowed assets of the Charity comprising land and properties are included in the Balance Sheet at open market value. Acquisitions and disposals of land and property are accounted for in the Balance Sheet on the legal completion of transactions. Amounts realised from the disposal of assets of the endowment are credited to the Personal Estate. Amounts expended to enhance the capital value of investment properties are added to the Personal Estate. The accumulated amounts of the Personal Estate Account are invested by the Trustees and form part of these accounts.

d. Financial Instruments

The Charity 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 their settlement value.

Quoted investments are included in the Balance Sheet at their fair value (market value) using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

e. Debtors and current assets

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

Page | 18

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

f. Creditors and provisions for liabilities and charges

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

g. Income recognition

All incoming resources are recognised in the year they are earned, once the Charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability. All incoming resources receivable from Endowment assets are recognised as unrestricted income in the accounts.

h. Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grants have been made in accordance with the provisions of the Will of Lord Crewe and the various schemes approved by the Charity Commission. 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.

i. Allocation of overhead and support costs

Overhead, support and governance costs relating to charitable activities have been apportioned to each activity based on the number of individual grant awards.

j. Governance costs

Governance costs comprise all costs involving the accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

k. Expenditure on investment properties

Expenditure to repair or maintain investment properties is expensed to the Statement of Financial Activities in the year in which it is incurred. Expenditure on properties of a capital nature over £1,000 is capitalised. Such additions to investment properties are not depreciated, in line with accounting standards.

l. Extraordinary repair fund

The Extraordinary Repair Fund is a designated Fund and is maintained for the purpose of providing for extraordinary repairs, improvements or rebuilding of properties of the Charity.

m. Lord Crewe's Libraries and Archives Trust (previously called Dr. Sharp’s Trust)

The books and property of the Libraries and Archives Trust are not regarded as fixed assets and do not appear in the Balance Sheet of the Trust. The investments and other net assets of the Trust are included in the Balance Sheet and the Personal Estate Account and Revenue Account of the Trust are treated as Restricted Funds.

The Libraries and Archives Trust is a separate charity (1155101-3) that is linked to the Lord Crewe's Charity and is treated as forming part of this Charitable Incorporated Organisation under part 8 (accounting) of the Charities Act 2011.

Page | 19

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

n. Heritage assets

Heritage assets are tangible assets with historical, artistic or scientific importance that are held to advance preservation or conservation objectives.

The Trustees consider that some books and property of the Libraries and Archives Trust, the Bamburgh library and the Lord Crewe records held at the Northumberland Archives in Woodhorn fall under the definition of Heritage assets. These assets have not been capitalised as valuations for them cannot be obtained at a cost which is commensurate with the benefits to users of the financial statements.

o. Pension Scheme

The Charity provides an employer pension scheme. The scheme is a defined contribution scheme. Contributions to defined contributions plans are recognised as an expense in the period in which the related service is provided.

2. Charity status and charitable objects

The Lord Crewe’s Charity is a Charitable Incorporated Organisation registered in the UK under the 1960 Charities Act and is accorded exemption from liability to taxation on its income under S521 to 536 Income Tax Act 2007. The Libraries and Archives Trust is a linked charity. The Lord Crewe’s Charity exists to apply the income arising from land and assets of the Charity in accordance with its new constitution registered on 20 December 2013.

Unrestricted Funds £ 10,000	Restricted Funds £ -	Endowment Funds £ -	Total Funds 2020 £ 10,000	Total Funds 2019 £ -
10,000	-	-	10,000	-
Unrestricted Funds £ 1,113,536	Restricted Funds £ -	Endowment Funds £ -	Total Funds 2020 £ 1,113,536	Total Funds 2019 £ 1,137,199
310,707	-	-	310,707	382,046
310,707	-	-	310,707	382,046
1,424,243	-	-	1,424,243	1,519,245
1,519,063	182	-	1,519,245	Total Funds 2019 £ 13,136
Unrestricted Funds £ 11,043	Restricted Funds £ -	Endowment Funds £ -	Total Funds 2020 £ 11,043
11,043	-	-	11,043	13,136
13,136	-	-	13,136

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LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Investment management costs

Property costs Insurance Plantations Travel and subsistence related costs Subscriptions Accountancy - property related Professional fees - property related Professional fees - other investments 2019	Unrestricted Funds £ 261,799 32,600 5,814 240 1,874 544 149,536 30,901	Restricted Funds £ - - - - - - - 302	Endowment Funds £ - - - - - - - 21,690	Total Funds 2020 £ 261,799 32,600 5,814 240 1,874 544 149,536 52,893	Total Funds 2019 £ 384,080 29,339 6,640 1,032 12,802 571 234,498 62,635
	483,308	302	21,690	505,300	731,597
	706,530	323	24,744	731,597

7. Allocation of support costs and overheads

The breakdown of support costs and how these were allocated is shown below:

Office Communications Printing, postage and stationery Administration salaries Accountancy Tercentenary Libraries and archives Governance costs Cost type	£ 8,385 2,994 925 29,332 4,897 1,812 - 13,286 Charitable activities	£ - - - - - - 6,036 - Restricted activities	2019 total £ £ 8,385 8,108 Cost and usage 2,994 5,496 Cost and usage 925 2,120 Cost and usage 29,332 27,901 Staff time 4,897 5,143 Staff time 1,812 9,941 Cost and usage 6,036 6,500 Specific 13,286 11,610 Cost 67,667 76,819 Basis of apportionment Total activities
	61,631	6,036

The total support cost attributable to charitable activities is apportioned pro rata to the number of grants awarded:

Payments under the Will and to Lincoln College Oxford Educational support of clergy dependants Diocese support Clergy support Libraries and Archives Grants to other institutions Total charitable activities costs	£ 7,855 32,326 1,813 9,970 1,208 8,459
	61,631

The £1,208 allocated to the Libraries and Archives activity is classified as restricted expenditure within the accounts.

Page | 21

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Allocation of support costs and overheads - continued

Analysis of governance costs	Total Funds	Total Funds
	2020	2019
	£	£
Trustees' expenses and meetings costs	921	2,820
Audit Fee current year	5,500	5,500
Professional and Legal fees	6,865	3,290
	13,286	11,610

8. Analysis of charitable activities expenditure

8. Analysis of charitable activities expenditure	8. Analysis of charitable activities expenditure
Unrestricted Funds £ Payments under the Will and to Lincoln College Oxford: grant funded activity 149,466 support costs and overheads 7,855 157,321 Educational support of clergy dependants: grant funded activity 143,968 support costs and overheads 32,326 176,294 Diocese support grant funded activity 287,920 support costs and overheads 1,813 289,733 Clergy support: grant funded activity 45,506 support costs and overheads 9,970 55,476 Libraries and Archives: grant funded activity - direct costs - support costs and overheads - - Grants to other institutions grant funded activity 201,665 support costs and overheads 8,459 210,124 Total costs of charitable activities 888,948 2019 656,601		Restricted Funds £ - -	Endowment Funds £ - -	Total Funds 2020 £ 149,466 7,855	Total Funds 2019 £ 129,159 6,062
	157,321 143,968 32,326	- - -	- - -	157,321 143,968 32,326	135,221 168,471 47,283
	176,294 287,920 1,813	- - -	- - -	176,294 287,920 1,813	215,754 228,801 1,617
	289,733 45,506 9,970	- - -	- - -	289,733 45,506 9,970	230,418 38,900 10,912
	55,476 - - -	- 20,000 6,000 7,244	- - - -	55,476 20,000 6,000 7,244	49,812 30,156 6,000 8,521
	- 201,665 8,459	33,244 - -	- - -	33,244 201,665 8,459	44,677 22,972 2,424
	210,124	-	-	210,124	25,396
	888,948	33,244	-	922,192	701,278
	656,601	44,677	-	701,278

The support costs and overheads of £7,244 allocated to the Libraries and Archives activities includes £6,036 detailed as restricted activities and £1,208 detailed as restricted support costs.

Page | 22

LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Trustees’ remuneration and related party transactions

Trustees received no emoluments in the year (2019: £nil). Travel and accommodation expenses reimbursed to two trustees, in the year totalled £470 (2019 two trustees: £939).

The Reverend W Cooper is a Trustee of the Charity. He received an education grant of £4,050 in 2020 (2019: £4,580).

The Rector of Lincoln College, Oxford is a trustee of the Charity. Under the terms of the will, scholarships and bursaries were paid to undergraduates and graduates of Lincoln College totalling £141,446 in 2020 (2019: £123,939). Other Trustees (the three Archdeacons) have an institutional interest in the Dioceses of Durham and of Newcastle. In 2020 a grant of £113,028 (2019: £106,193) was paid to Newcastle Diocese and £174,892 (2019: £122,608) to Durham Diocese. On all occasions Trustees declare any institutional interest and take no part in the voting of such grants.

Mr J P P Anderson is a trustee of the charity. Premises owned by him was used for a trustee meeting once at a cost of £234 - market value rates. (2019: £Nil)

10. Analysis of staff costs

Salaries Pension to employees The average number of employees during the year (full-time equivalent) was:	2020 £ 27,413 1,919	2019 £ 26,076 1,825
	29,332	27,901
	1	1

The Charity considers its key management personnel comprise the Trustees and the Clerk. The total employment benefits including employer pension contributions of the key management personnel were £29,332 (2019: £27,901). No employee had emoluments in excess of £60,000 (2019: none).

Page | 23

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Comparative for Statement of Financial Activities

£ 1,519,063 13,136 Unrestricted Funds	Restricted Funds £ 182 -	Endowment Funds Total Funds £ £ - 1,519,245 - 13,136
1,532,199	182	- 1,532,381
706,530 135,221 215,754 230,418 49,812 - 25,396	323 - - - - 44,677 -	24,744 731,597 - 135,221 - 215,754 - 230,418 - 49,812 - 44,677 - 25,396
656,601	44,677	- 701,278
1,363,131	45,000	24,744 1,432,875
675,184	6,531	1,565,523 2,247,238
844,252 (256,804)	(38,287) 44,495	1,540,779 2,346,744 212,309 -
587,448 6,012,458	6,208 50,927	1,753,088 2,346,744 37,627,661 43,691,046
6,599,906	57,135	39,380,749 46,037,790

Page | 24

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Fixed Asset Investments

12a. Unquoted Investments - Investment property

12. Fixed Asset Investments 12a. Unquoted Investments - Investment property
Valuation as at 1 January 2020 Additions Proceeds from disposals Net increase/(decrease) on disposals and revaluations Valuation as at 31 December 2020 Cost as at 31 December 2020	£ - - - - Unrestricted Funds	£ - - - - Restricted Funds	£ 34,822,850 318,965 (10,000) 915,299 Endowment Funds	Total Funds 2020 £ 34,822,850 318,965 (10,000) 915,299	Total Funds 2019 £ 33,732,101 212,309 (187,520) 1,065,960
	-	-	36,047,114	36,047,114	34,822,850
	-	-	3,298,504	3,298,504	2,979,539

An informal valuation of the properties was carried out by Savills as at 31 December 2020 and the property valuations included in the accounts as at this date. Properties were valued at Open Market Value.

12b. Quoted Investments

£ 6,035,785 - (31,813) 207,413 Unrestricted Funds	£ 57,135 - (302) 1,970 Restricted Funds	£ 4,100,379 - (21,690) 141,414 Endowment Funds	Total Funds 2020 £ 10,193,299 - (53,805) 350,797	Total Funds 2019 £ 9,340,531 (270,000) (58,510) 1,181,278
6,211,385	58,803	4,220,103	10,490,291	10,193,299
5,059,372	48,065	3,449,490	8,556,927	8,307,025
£ 6,211,385 Unrestricted Funds	£ 58,803 Restricted Funds	£ 4,220,103 Endowment Funds	Total Funds 2020 £ 10,490,291	Total Funds 2019 £ 10,193,299
6,211,385	58,803	4,220,103	10,490,291	10,193,299

Financial instruments measured at fair value equivalent to market value comprise quoted investments. The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report. The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Market conditions may limit the investment options available at any one time within the Charity’s stated policy on risk and return.

As an organisation which has existed since 1721 and which in addition to its investment portfolio has large holdings of agricultural, commercial and residential property, the Charity is not solely reliant on dividend income from the investment portfolio and in general takes a long term view on investment policy and performance. The Charity manages these investment risks by retaining expert investment managers who manage the portfolio on a discretionary basis, with regular reporting to trustees and information provided electronically and available on line on at least a monthly basis. In addition the Trustees retain an independent investment adviser to assist them in monitoring and assessing the performance of the investment managers.

Page | 25

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Fund transfers

Transfers of £33,244 (2019: £44,235) have been made from unrestricted funds to the Libraries and Archives Trust Restricted Fund, representing the maintenance of the Durham and Newcastle Sharp Libraries.

Transfers of £318,965 (2019: £212,309) have been made from unrestricted funds to the Endowment Fund, representing the additions to the property portfolio.

14. Debtors

Prepayments Accrued income Amounts due from tenants Sundry Debtors All debtors relate to Unrestricted Funds. 15. Creditors - Amounts falling due within one year Accruals and sundry creditors Trade creditors Payroll taxes and Value Added Tax Amounts prepaid by Tenants Deferred Income Tenants' bonds All creditors relate to Unrestricted Funds. 15a. Deferred Income Deferred Income b/fwd Deferred in the year Released in the year Deferred Income c/fwd	Total Funds 2020 £ 2,352 55,242 28,320 600	Total Funds 2019 £ 934 45,863 38,904 600
	86,514	86,301
	Total Funds 2020 £ 57,311 4,753 27,238 7,774 54,390 66,395	Total Funds 2019 £ 36,729 15,626 26,170 6,473 54,770 66,614
	217,861	206,382
	Total Funds 2020 £ 54,770 54,390 (54,770)	Total Funds 2019 £ 54,082 54,770 (54,082)
	54,390	54,770

Page | 26

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Endowment Fund

16. Endowment Fund
	Balance as at 1 January	Amounts Expended	Gains / (Losses) on investments	Transfers	Balance as at 31 December
	2020				2020
	£	£	£	£	£
Personal Estate	39,380,749	(21,690)	1,056,713	318,965	40,734,737
	Balance as at 1 January	Amounts Expended	Gains / (Losses) on investments	Transfers	Balance as at 31 December
	2019				2019
	£	£	£	£	£
Personal Estate	37,627,661	(24,744)	1,565,523	212,309	39,380,749

The Personal Estate comprises the endowed properties set out in the Schedule to the Scheme of 8 August 1974, together with expenditure incurred in 1996 of £118,630, £60,584 in 2017, £204,466 in 2018, £212,309 in 2019 and £318,965 in 2020 which enhanced the capital value of investment properties of the Personal Estate. All profits realised on disposals of property are added to the Personal Estate Account.

17. Restricted Funds

Balance as at 1 January 2020 £ 29,128 28,007	Incoming Restricted funds £ - -	Outgoing Restricted funds £ - (33,546)	Gains / (Losses) on investments £ - 1,970	Transfers £ - 33,244	Balance as at 31 December 2020 £ 29,128 29,675
57,135	-	(33,546)	1,970	33,244	58,803
Balance as at 1 January 2019 £ 29,128 21,799	Incoming Restricted funds £ - 182	Outgoing Restricted funds £ - (45,000)	Gains / (Losses) on investments £ - 6,531	Transfers £ - 44,495	Balance as at 31 December 2019 £ 29,128 28,007
50,927	182	(45,000)	6,531	44,495	57,135

The Scheme of 8 August 1974 provides for the upkeep and provision of accommodation for the library of Dr Sharp. The income arising from the Personal Estate investments is primarily to be applied to this purpose. Surplus revenue is accounted for within the Revenue Account.

Page | 27

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Designated Funds

18. Designated Funds
Extraordinary Repair Fund Extraordinary Repair Fund	Balance as at 1 January 2020 £ 250,000	£ - Designations from Revenue	Expenditure movements £ -	Gains / (Losses) on investments £ -	Transfers £ -	Balance as at 31 December 2020 £ 250,000
	250,000	-	-	-	-	250,000
	Balance as at 1 January 2019 £ 250,000	£ - Designations from Revenue	Expenditure movements £ -	Gains / (Losses) on investments £ -	Transfers £ -	Balance as at 31 December 2019 £ 250,000
	250,000	-	-	-	-	250,000

The Trustees have been directed by the Charity Commissioners by an Order dated 30 November 1992 that the Extraordinary Repair Fund shall be maintained by transfer to it, out of the Charity's income, of such annual sum sufficient for the purposes of the Fund which is to provide for extraordinary repairs, improvements or rebuilding of property of the Charity. The Extraordinary Repair Fund can be expended on Permanent Endowment property in almost any way. The expenditure could include adding extensions to existing buildings. The fund was reclassified as a designated fund during the year ended 31 December 2005.

19. Summary of Funds

Unrestricted funds General Designated Restricted funds Endowment funds Total funds	Funds brought forward 1 January 2020 £ 6,349,906 250,000	Incoming resources £ 1,445,286 -	Expenditure £ (1,372,256) -	Transfers £ (352,209) -	Gains / (losses) Funds carried forward 2020 £ £ 207,413 6,278,140 - 250,000 31 December
	6,599,906 57,135 39,380,749	1,445,286 - -	(1,372,256) (33,546) (21,690)	(352,209) 33,244 318,965	207,413 6,528,140 1,970 58,803 1,056,713 40,734,737
	46,037,790	1,445,286	(1,427,492)	-	1,266,096 47,321,680

Page | 28

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Summary of Funds - continued

Unrestricted funds General Designated Restricted funds Endowment funds Total funds	Funds brought forward 1 January 2019 £ 5,762,458 250,000	Incoming resources £ 1,532,199 -	Expenditure £ (1,363,131) -	Transfers £ (256,804) -	Gains / (losses) Funds carried forward 2019 £ £ 675,184 6,349,906 - 250,000 31 December
	6,012,458 50,927 37,627,661	1,532,199 182 -	(1,363,131) (45,000) (24,744)	(256,804) 44,495 212,309	675,184 6,599,906 6,531 57,135 1,565,523 39,380,749
	43,691,046	1,532,381	(1,432,875)	-	2,247,238 46,037,790

20. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income Adjustments for: (Gains) / Losses on investments (Increase)/decrease in debtors Increase/(decrease) in creditors 21. Financial commitments Financial commitments entered into at the end of the financial year were as follows: Contracted for but not provided for in the accounts 22. Educational Grant Commitments Educational grant commitments entered into at the end of the financial year were as follows: Dividends, interest and rents from investments Net cash used in operating acivities Other investments management charges Grants awarded for payment in March 2021, subject to certain conditions that are required to be met	2020 £ 1,283,890 53,805 (1,266,096) (1,435,286) 19,144 11,479	2019 £ 2,346,744 58,510 (2,247,238) (1,532,381) 24,352 27,315
	(1,333,064)	(1,322,698)
	2020 £ 255,622	2019 £ 498,471
	2020 £ 63,408	2019 £ 83,211

Page | 29

LORD CREWE'S CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

23. Contingent Liabilities

Contingent liabilities can exist in connection with tenants’ improvements to properties where a change of tenant arises. In these circumstances, depending on the age and nature of the lease, the Trustees, as landlord, may be obliged to purchase the benefit of the outgoing tenant's improvements at an agreed value.

As at 31 December 2020 there were no immediate contingent liabilities of which the Trustees were aware in connection with agricultural leases. No contingent liabilities existed in respect of other leases.

24. Heritage Assets

As disclosed in Note 1 (Accounting policies), the Trustees consider that three categories of assets are Heritage Assets and can be summarised as follows:

Asset category Details Sharp Library Mostly modern books held for theological research. Bamburgh Library The library comprises of music books and manuscripts and early printed works. Archives at Woodhorn, the This comprises maps and estate records dating from 1709 to the late 1900s. Northumberland Archives

The two Sharp Libraries (Durham and Newcastle) provide access to extensive collections of modern theology books for clergy, ordinands, and other Diocesan academic readers who may not have access to the libraries of University departments or other Higher Education institutions. They are also accessible to Theology students in addition to their academic libraries.

The Bamburgh Library held in the Special Collections Department of Durham University Library at Palace Green is an historic library of similar significance to the neighbouring Bishop Cosin’s Library. The Bamburgh Library has its origins in the holdings of the Sharp family. These were partly sold to and partly gifted to the Trustees by Archdeacon Sharp in the late eighteenth century. It operated as a public lending library in Bamburgh Castle, even after the sale of the castle to Lord Armstrong. In 1958 it was moved to Durham. It includes notable collections of early science, history and anti-slavery literature, with volumes from the 17th Century onwards and a number of medieval manuscripts. The collection is of considerable academic and historical interest.

The Bamburgh Music Collection held at Durham Cathedral Library comprises around 40 music manuscripts, including secular and sacred, vocal and instrumental items. These are largely 17th and 18th century and were copied either by or for members of the Sharp family. They also include some music from the collection of the Hon. Edward Finch (1664-1738).

The Trustees consider that obtaining valuations for the books and other heritage assets in its care would involve disproportionate costs compared with the benefits derived by users of the accounts. Consequently no values are attributed to heritage assets in the balance sheet.

Further information relating to the management of and access to the assets is provided within the Activities for Achieving Objectives section of the Trustees' Report.

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