Registered Charity Number: 1155101
LORD CREWE’S CHARITY
Financial Statements
For The Year Ended 31 December 2024
LORD CREWE'S CHARITY
Financial Statements For The Year Ended 31 December 2024
| Index | |
|---|---|
| Pages | |
| Trustees’ report | 2-10 |
| Auditor's report | 11-13 |
| Statement of Financial Activities | 14 |
| Balance sheet | 15 |
| Statement of Cash Flows | 16 |
| AccountingpoliciesandNotestothefinancialstatements | 17-29 |
LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees present their annual report and audited financial statements of Lord Crewe's Charity (the Charity) for the year ended 31 December 2024. 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 Northumberland Archives. 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. The Charities Commission directed that the Lord Crewe’s Library and Archives Trust (charity number 1155101-3) shall be treated as forming part of Lord Crewe's Charity (charity number 1155101) for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011.
b. Method of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are appointed under the terms of the Charitable Incorporated Organisation's constitution.
The constitution provides that there shall be a minimum of five and a maximum of nine Trustees, including one ex-officio, two nominative and up to six co-optative. Of the nominative Trustees, one is nominated by the Bishop of Durham and one by the Bishop of Newcastle. The ex-officio trustee is the Rector of Lincoln College Oxford. The co-optative trustees are selected having regard to the skills, knowledge and experience needed for the effective administration of the CIO.
c. Policies adopted for the induction and training of Trustees
Induction of new Trustees is provided by the Clerk and Chair, with technical induction also provided by the Charity's legal advisors and the Estate Manager. 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.
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 Estate Manager, Savills.
Both the Clerk and Estate Manager 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, and a Property Sub-committee meets quarterly to give more detailed attention to property management.
The Charity is linked to the Lord Crewe's Library and Archives Trust (Charity number 1155101-3) and is unconnected with any other Charity.
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LORD CREWE'S CHARITY TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
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 Clerk is contracted to work for the Charity in accordance with terms of business agreed in 2022, and during the year charged £26,160 (2023: £26,351) for services provided.
Reference and administrative details
| Charity Registration Number | 1155101 | ||
|---|---|---|---|
| Registered Address | Cuthbert House, Durham, DH1 3RY | ||
| Trustees: | Appointed | Resigned | |
| Nominative | BytheBishopofDurham: | ||
| The Venerable R G Cooper (Chair) | 24.02.19 | 31.12.24 | |
| The Venerable E M Wilkinson | 01.01.25 | ||
| By the Bishop ofNewcastle: | |||
| The Venerable Dr C A Sourbut-Groves | 18.02.22 | ||
| Co-optative | Mrs Francesca E Trevelyan | 19.01.23 | |
| Mr William F Watson-Armstrong | 21.01.23 | ||
| MrSimonF Riddell (Vice-Chair) | 14.02.23 | ||
| Mr Robert T deP Hunter | 04.05.23 | ||
| Mr Paul G Chandler (Chair) | 24.02.25 | ||
| Ex-officio | Professor H RWoudhuysen, | 01.09.12 | 31.08.24 |
| The Rector of Lincoln College, Oxford | |||
| Mr Nigel R Clifford | 01.09.24 | ||
| The Rector of Lincoln College, Oxford | |||
| The Clerk | Mr MW Orde | ||
| Estate Manager | Savills | ||
| Bankers | Barclays Bank plc, 6 Market Place, Durham, DH1 3ND |
||
| Auditors | Azets Audit Services, Statutory Auditor, Chartered Accountant | ||
| 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 | Sarasin & Partners | ||
| JuxonHouse,100St.Paul'sChurchyard, | London,EC4M8BU |
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LORO CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Objectives and octivities a. Policies and objectives The principal objects of the Charity, after meeting the costs of managing itself and its properties, and payin8 a number of annual sums specified in the Trust Deed Itotalling £18,320 in 20241, are,. l. The advancement of Christian religion by.. lal augmenting the stipends of necesSItOUs cler8y and their dependents in the Dioceses of Durham and Newcastle, particula rly for the education of their children, and assisting them in other charitable demonstrable need,. and Ibl the repaSr or construction of churches, chancels and par50nages in an ecclesiastical parish in which the Charity owns land or to which the Charity has the right of presentation to the benefice; and Icl providing financial support to Anglican clergy of various ecclesiastical parishes as determined by the Trustees from time to time for religious education within those parishes. 2. The relief of poverty by providing financial and other forms of charitable relief for the general benefit of the inhabitants of the Dioceses of Durham and Newcastle, giving preference to people and groups resident in parishes where the Charity owns land or has the right of presentation to the benefice. 3. The advancement of education by: lal providing financial 5ub5idies to universlty students at Lincoln Colle8e at the University of Oxford, or for any other charitable purposes connected with Lincoln College,. and Ibl providing other financial subsidies to educational institutions. whether in the ecclesiastical parish in which the Charity owns land or has the right of presentation to the benefice or otherwise, specifically including the City of Durham, 4. The relief of sickness (including physical, mental, emotional and spiritU311 by providing such assistance (financial and otherwise) to such beneficiaries resident in the Dioceses of Durham and Newcastle as the Trijstees shall from lime to time decide. 5. Other charitable purposes which the Trustees shall from time to time determine for the benefit of residents of the ecclesiastical parishes in which the Charity owns land or to which the Charity has the right of presentation to the benefice. 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 aclivities and setting the grant making policy for the year. The Charity also furthers its charitable purposes for the public benefit by contiibuting 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, and by conserving and interpreting the Bamburgh Library of rare books, music and its arch ives. This is achieved through the associated charity The Lord Crewe's Librarie5 and Archives Trust, Registered Charity no. 1155101-3. b. Strategles for achlevlng oblectlves The principal beneficiaries of grant aid are the stipendiary clergy of the two Dioceses and their dependants. The Trustees are conscious of the financial pressLJres facing many of them. Financial assistance with the costs incurred whilst educating their dependents (from the primary stage through to higher education), Chair'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. Pagel 4
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 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 tho annu31 distribution arising from its financial investments operating on a total return basis, enables the Trustees to further ihe Charity's aims by the making of grants. ¢. Activitie5 lor achleving oblectlves In 2023 the Trustees agreed a further three year programme for clergy support through the Dioceses12024 - 20261 and for four further academic years for Lincoln College1202314 to 2026171. Significant activities during the year which form the bulk of what 15 reported in the Statement of Financial Activities were., The on-going managemenl of the Charity'5 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 malor 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, and also to other eligible beneficiaries. 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 Librarv Iprintecs books collection from 17th Century onwards), held by the Ourham Universlty Library Special Colleclions, and the Bamburgh Music Library held by Durham Cathedral Library. The Charity continues to review its systems, parily in the light of recommendations from successive audits, and a150 to achieve greater administrative efficlencv. Achlevements and performance In 2024 the Charity supported individual members of the clergy in the Dioceses of Durham and Newcastle by making., 148 educational grant5 totalling £163,903 to members of the clergy in support of the education of their chlldren. (These grants related lo two educational years second and final instalments of 8rants for 2023-24 and in5talments for granls for the first term of 2024-251. 32 grants totalling £41,200 to members of the clergy to asslst with specific instances of hardship and the birth of a child and 13 grants totallin8 £39,000 to as5ISt clergy moving out of church housin8 on retirement. In 2024 the Charity provided £141,400 to Lincoln College for charitable purposes comprising support for Undergraduates and Postgraduates and support for Junior Research Fellow in Music and for improving access lo the College. The Charity also made a grant lotalling £172,000 to the Diocese of Newcastle for a package of approved projects to support clergy through services includinE pastoral care and counsellinE, mentoring, continuing ministerial development, and support for engagement in parishes in areas of high deprivation. A grant of £260,000 was made to Durham Diocese for the Bridge Project, aSSlSting congregations to work with their parish community and together seek its wellbeing, and for pastoral care a nd counselling to SUPPOrt clergy wellbeing. Grants to other organisations included £7,000 to the Seahouses Youth Project, £15,000 to Seahouses Hostel, £15,000 to Bamburgh St. Aidan's for kitchen and WC installation, £5,000 to the Farne5 Outreach Project, £1,000 to the Blanchland Show and £15,000 to All Saints Mu88leswick for the development of Champing. Page | 5
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees awarded a range of grants totallin£ £365,362 to reflect the fact that 2021 was the tercentenary year of the Charity including £IOO,000 to Newcastle Diocese for a youth and children's project, £49,175 for the Hartlepool Project, £42,000 for the Jarrow Debt Project and £174,187 to Lincoln College for boiler replacement. Sarasin & Partners were appointed during the year to act as the Charity's Investment Managers. Savills continue as the Charity'5 Estate Manager. There were no significant positive or negative factors affecting the achievement of objectives in 2024 compared to 2023 or affecting future plans for 2025 and beyond. The financial base of the Charity through its endowment and the management of the estates by Savills and the investment portfolio by Sarasin ensure that the Charity continues on a sound financial footing. Flnoncial review The two primary sources of income for the Charity are from the estates and from the investment portfolio. In 2024 the net income from these sources was.. Fundlng Source Total % of total Income Estates (net Income) £655,36S 69.5% Investment Portfollo (net Income) £261,458 27.7% Other £26,469 2.8% Total £943,292 ioo.oo% Investrnent policy and performance a. Asset allocatlon As at 31 December 2024, the allocation of assets, at valuation, was as follows: Asat 31 Oec 2024 % of total As at 31 Dec 2023 % of total Investment Property £45,494,926 81.98% £43,857,738 82.38% other Investments £10,000,105 18.02% £9,378,778 17.62% Total £55,495.031 ioo.oo% £53,236,516 ioo.oo% Asset Class Asset Value Asset % of Total A55ets Fixed Income £1,290,014 12.9% Equities £3,370,035 33.7% Alternatives £1,050,011 10.5% Cash £4,290,045 42.9% Total £10,000,105 ioo.o% Page | 6
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 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. Exlraordinary Repair Fund, maintained to provide for extraordinary repairs, improvements or rebuilding of properties. This fund is regarded as a medium to long-term investment, in the expectation that it may be partly utilised whenever a major expenditure requirement arises. 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. b. Investment policy and performance The Charily passed a re501ution on 26 April 2024 for it to operate the investment portfolio part of the permanenl endowment on a total return approach. In accordance with the terms of the Order made by the Charity Commission, the Trustees confirm that.. In identifying the value of the portion of the permanent endowment that represented unapplied total return, the Trustees identified the base value, known as the Relevant Fund as starling from December 2002. When determinin8 the amount of unapplied total relurn to transfer to income the Trustees have considered the amount of income required to maintain the current level of charitable giving and the likely benefits to future beneficiaries. When reaching their decision as to the unapplied total return to transfer to income, the trustees have taken professional advice from their investment advisers regarding the market outlook, Investment trends and yield and the prospect for future capital growth, Our investment advisors Isarasln & Partners) are instructed to invest to optimlse the total return on the investment portfolio assets within the permanent endowment, wiihin the context of an Investment Policy statement that is kept under regular review and includes appropriate ethical constraints. Trustee5 are mindful to protect the long term value of the investment fund, to ensure that the Relevant Fund's real value is maintained after taking into consideration inflation ICPII. As a result, the Trustees will seek a prudent approach to grant distribution5. The Trustees will plan to use 3.5% of the five year average value of the investment portfolio for grant making in addition to using funds from their direct property and land investments. In 2024 the income achieived prior to the total return resolution was £51, 153, and distributions under the terms of the resolution totalled £247,581. The risk profile of the investments is categorised by the investment managers as "medium" During the year, investment asset gains of £976,026 were made lan average return of 9.76% on investment assets heldl against a long-term benchmark for assets under this risk profile of 10.1%. The Trustees consider this overall performance to be acceptable in the context of prevailing market conditions. General Investment Poll¢v 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 need5 of the Charity. The Trustees seek exposure to good quality, carefully selected equities and other stock consistent with the terms of their Investment Policy Statement, via a well-diversified portfolio in order to manage risk, which also provides a total return exceeding inflation. Pagel 7
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 d. Ethical Investment Policy Ethical considerations form an integral part of the investment managemenl process and Sarasin & Partners have sought and received instructions from the Charity. The investment managers seek lo 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. Comp3nie5 are monitored according to the Charity's ethical investment policy and through developing a dialogue with them. Risk management The Trustees regularly assess 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 exposure to the major risks. The Charity benefits from the strength and stabS1ity of Its financial position, due to ils endowment and its mix of residential, commercial and agricultural estates and its investment portfolio. While financial returns may be subject to economic conditions beyond the control of the Trustees, this is mitigated by the standard of professional estates and investment management advice engaged on the Charity's behalf. The Trustees are able to take a long term view of investment and financial performance. The Trustees consider that the use of a total return approach for their investment portfolio helps 5tabilise the resources available for grant making, thereby facilitating longer term grants. Because of this financial strength the Trustees are able to mainlain the reserves polScy outlined below. The Charity maintalns reserves sufficient to meet at least six months, outgoings, which should be sufficient to deal with any tsnforeseen situations and allow time for any remedial action necessary to be undertaken. The Charity's Risk Management Strategy provides.. A quarterly review of the principal risks and uncertainties faced by the Charity and Its associated charities. Policies, systems and procedures lo mitigate risks identified in the review. Thus managing any potential impact on the Charity and its beneficiaries should these or other risks materialise. Reserve5 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 creditors and maintaining adequate funds lo 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 15 to maintain sufficient unrestricted reserve5 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. The Trustees consider that a level of six months is sufficient given the flexibility afforded by the total return approach towards the investment portfolio whlch allows Trustees to transfer amounts from the unapplied total element of the endowment fund in the case of urgent need. The Trustees maintain an Extraordinary Repair Fund IERIFI 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 land additionall to the amount budgeted each year for planned maintenance. The Trustees maintain a minimum balance of £50,000 in the Charity's current account, to meel any immediate or urgent calls on grant funding. Page | 8
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The total funds of the Charity afe £S6,452,340 of which £52,027,207 are restricted. The unrestricted free reserves of the Charity at 31 December 2024 were £4,425, 133 of whith £5,750,381 are invested in stocks and shares, leaving l£1,325,2481 within current liabilities. This represents approximately 553% of the minimum target reserves. The unrestricted funds include the designated Extraordinary Repair Fund of £250,000. Bearing in mind recent difficulties and volatilities surrounding the economy and in particular uncertainly about the fundin8 of agriculture, the Trustees, policy is to maintain sufficient reserves to ensure the continuation of the Charity's activities whilst alternative means of income can be obtained. Trustees are actively progressing the application of that part of the reserves which arises from unallocated income, to include estates expenditure to safeguard future income and additional spendin8 on the Charity's charitable objectives within the scope of the Charity's constitution. Fundraislng The charity is required lo 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 thefuture The Trustees undertake an annual review of spending plans at the beginning of each year. 2021 marked the three hundredth anniversary of the death of Lord Crewe and therefore the Tercentenary of the Charity. The Charity Is concluding a series of grants and other activities in ils celebration,. the funded projects are in the course of being completed. Trustees, responsibilities In relation to the financial statements The Trustees are responsible for preparing a Trustee5' report and financial statements in accordance with applicable law and Unlted 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 con51Stently,' observe the methods and principles in the Charities SORP,. make judgements and accounting eslimates 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 15 inapproprlate to presume that the Charity will continue in operation. The TrLSStees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to 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. Page | 9
LORD CREWE'S CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 AUDITOR Azets Audit Services have indicated their willingness to stand for reappointment at the forthcoming Annual General Meeting. This report was approved by the Trustees ènd signed on their behalf by: Date.. {-6-zoL Paul Chandler (Chair of the Trustees) Page | 10
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'l for the year ended 31 Oecember 2024 which comprise the Statement of Financial Activities, the 8alance Sheet, the Statement of Cash Flows and the related notes, including a SLJmmary 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 I reland, (United Kingdom Generally Accepted Accounting Practice). I n our opinSon the financial statements.. give a true and fair view of the state of the Charity's affairs as at 31 December 2024 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 Auditin8 IUKI IISAS IUKII and applicable law, Our responsibilitie5 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 requiremen15 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 15 sufficient and appropriate to provlde a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the Trustee5' use of the going concern basis of accounting in the preparation of the financial statements Is appropriate, 8ased on the work we have performed, we have not identified any material uncertalnties 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 statement5 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 comprise5 the information included in the Trustee 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 ihe financial statements, our responsibility is to read the other information ar)d, in doing $0, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appear5 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 15 a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page | 11
LORD CREWE'S CHARITY INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF LORD CREWE'S CHARITY MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Charitie5 (Accounts and Reports) Re8ulations 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 Trustee5' Responsibilities Statement, the Trustees are responsible for the preparation of flnancial Statements and for being satisfied that they give a true and fair view, and for such internal control as the Truslees 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 Truslees are responsible for assessing the Charity's ability lo continue as a golng concern, disclosing, a5 applicable, mallers 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 b(Jt 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 Sn accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtaln 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 8uarantee that an audit conducted in accordance with ISA5 IUKI 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 economlc decislons of users taken on ihe 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, includi ng fraud is detailed below.. Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud,. Reviewin8 board minutes,. Challenging assumptions and judgements made by management in their significant accounting estimates,. Auditing the risk of management override of controls, including throu8h testing journal entries and other adjustments for appropriatenes5. Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements.. compliance with the Charities Act a5 well as compliance regulations relating to the ownership and letting of property, includin8 Health anc5 Safety. 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. Page112
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 stale 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. Slmon Brown BA ACA OChA Isenior Statutory Auditor) For 3nd on behalf of Azets Audit Services Statutory Auditor Chartered Accountant Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS Date.. Azets Audit Services is a trading name of Azets Audit Servlces Llmited. Azets Audit Services Limited is eligible to act as an auditor in terms of section 1212 of the Companie5 Act 2006. PaEe | 13
LORD CREWE'S CHARITY Statement of Financlal Actlvltles for the year ended 31 December 2024 Note I Unre5trlcted Restricted Endowment Funds Funds Funds 2024 2023 Notes Total Funds Total Funds Income ond endowment5 from: Investments 1,815,105 1,815,105 1,841,943 Other 26,469 26,469 28,494 Total Income and endowments 1,841,574 1,841,574 1,870,437 Expendlture on: Roisingfunds.. Investment management costs 873,741 337 24,204 898,282 719,887 Choritoble octivities., Payments under the Will and to Lincoln College Oxford 165,541 165,541 160,961 Educational support of clergy depend3ntS 203,062 203,062 125,774 Diocese support 434,117 434,117 351,413 Clergy support 92,106 92,106 73,784 Maintenance of Library 43,088 43,088 43,458 Miscellaneous charitable giving 425,213 425,213 302,259 Total cost of charitable activities 1,320,039 43,088 1,363,127 1,057,649 Total Expendlture 2,193,780 43,425 24,204 2,261,409 1,777,536 Net gainslllossesl on investments Ila&b 502,222 6,511 1,959,223 2,467,956 2,368,082 Net Sncome/lexpendlturel 150,016 136,9141 1,935,019 2,048,121 2,460,983 Transfer between funds 12 1195,8461 43,088 152,758 Net movement In funds 145,8301 6,174 2,087,777 2,048,121 2,460,983 Reconciliation of f unds: Total fund brought forward 15-17 4,470,963 56,351 49,876,905 54,404,219 51,943,236 Total funds carrled forward 15.17 4,425,133 62,525 51,964,682 56,452,340 54,404,219 Page | 14
LORD CREWE'S CHARITY Balance Sheet as at 31 December 2024 Note I Notes Unrestrlcted Restrlcted Endowment Funds Funds Funds 2024 2023 Total Funds Total Funds Flxed Assets Investment Property Ila 45,494,926 45,494,926 43,857,738 Other Investments Ilb 5,750,381 62,525 4,187, 199 10,000,105 9,378,778 Total Fixed Assets 5,750,381 62,525 49,682,125 55,495,031 53,236,516 Current Assets Debtors 13 43,833 43,833 58,008 Cash at bank and in hand 1961,6981 2,282,557 1,320,859 1,654,034 Total Current Assets 1917,8651 2,282,557 1,364,692 1,712,042 Current Llabllltles Creditors- amounts falling due within one year 14 1407,3831 1407,3831 1544.3391 Net Current Assets 11,325,248) 2,282,557 957,309 1,167,703 Total Assets less Current Llabllltles 4,425,133 62,525 51,964,682 56,452,340 54,404,219 Total Net Assets 4,425,133 62,525 51,964,682 56,452,340 54,404,219 The funds of the charSty: Endowment fund 15 Sl,964,682 51,964,682 49,876,905 Income funds.. Restricted funds 16 62,525 62,525 56,351 Designated funds 17 250,000 250,000 250,000 Unrestricted general funds 4,175,133 4,175,133 4,220,963 Total Charlty Funds 4,425,133 62,525 51,964,682 56,452,340 54,404,219 Note l.. Non-designated and Designated Funds have been combined in the SOFA and Balance Sheet as 'Unrestricted Fund5" analysis of Designaled Funds is given in Note 17. Approved by the Board of Trustees on 6 June 2025 and signed on their behalf by.. Paul Chandler, Chair of the Trustees. The notes on pages 17 to 29 form part of these financial statements. Page | IS
LORD CREWE'S CHARITY Statement ofcash Flows for the year ended 31 December 2024 2024 Total Funds 2023 Total Funds Note Net cash used in operating activities 20 12,241,910) 12,118,965) Cash flows from investing activities: Dividends, interest and rents from investments 1,753,993 1,855,504 Proceeds from sale of investments 307,500 1,307,537 Purchase of investments 1152,758) 121,1581 Net cash provlded by InvestSng a¢tlvltles 1,908,735 3,141,883 Change In cash and cash equivalents in the year {333,175} 1,022,918 Cash and cash equivalents brought forward 1,654,034 631,116 Cash and cash equlvalents carrled forward 1,320,859 1,654,034 Analysls of cash and cash equlvalents 2024 2023 Cash in Transit 80,000 Cash at bank 1,240,859 1,654,034 1,320,859 1,654,034 Analysls of changes In net debt ljanuary 2023 Cash Flows 31 December 2024 Cash and cash equivalents 1.654,034 1333,1751 1,320,859 Page | 16
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 l. Accounting Policies a. B3515 Of preparatlon of f inancial statement5 The financial statements have been prepared under the historical cost convention, with the exception of investmenls which are included at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice ISORPI.. Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 issued on l January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS1021 , and the Charities Act 2011. Lord Crewe's Charity (Charity No. 11551011 is governed by its new constitution as a Charitable Incorporated Or8anisation. A linked charity, Lord Crewe's Library and Archives Trust (Charity No. 1155101-31, owns the libraries and archives collections currenily 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 310ecember 2013. The Charities Commission directed that the Lord Crewe's Library and ArChve$ Trust (charity number 1155101-31 shall be treated as forming part of the Lord Crewe's Charity (charity number IISSIOII for the purpose5 of Part 4 Iregistrationl and Parl 8 laccountingl of the Charities Act 2011. The CharSty constitutes a public benefit entity as defined by FRSIO2, b. Golng concern The Charity has cash resources and has no requlrement 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 Charily comprising land and properties are included in the Balance Sheet at open market value. Acquisitions and disposals of land and properly 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 propertie5 are added to the Persona1 Estate. The accumulated amount5 of the Personal Estate Account are invested by the Trustees and form part of these accounts. d. Flnanclal Instruments The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are init1311y recognised at transaction value and subsequently measured at their settlement value. Quoted investments are included in the Balance Sheet at their fair value Imarket 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, The quoted investment portfolio is managed on a total return basis. The Trustees, at their discretion, may allocate any part of the vnapplied total return to income. e. Debtors and current assets Trade and other debtors are recogni5ed at the settlement amount due after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. f. Creditors and provlslons for liabilitie5 and charges Creditors and provision5 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. Page | 17
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 g. Income recognltlon All incoming resources are recognised once the Charity has entitlement to the resources, it 15 probable th3t 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 a5 a commitment, but not accrued as expenditure. l. Allocatlon 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. Governance costs Governance costs comprise all costs involving the accountabllity of the Charity and its compliance with regulation and good practice, These cost5 include costs related to statutory audit and legal fees. k. Expendlture on Investment propertles 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. Extraordlnary repalr fund The Extraordinary Repair Fund is a designated Fund and is maintained for the purpose of providing lor extraordlnary repairs, Improvements or rebuilding of propertles of the Charlty, m. Lord Crewe's Llbrarles and Archlves Trust Iprevlously 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 Archive5 Trust is a separate charity11155101-31 that is linked to the Lord Crewe's Charity and is treated as forming part of this Charitable Incorporated Organisation under part 8 laccountin81 of the Charities Act 2011. n. Herltage assets Heritage assets are tangible as5etS Wlth historical, artistic or scientific importance that are held to advance preservation or conservation objectives. The Trustees consider thal some books and property of the Libraries and Archives Trust, the 8amburgh 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 capitali5ed as valuation5 for them cannot be obtained at a cost which is commensurate with the benefits to users of the financial statements. Page | 18
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Charity status and charitable oble¢t5 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 it5 income under S521 to 536 Income Tax Act 2007. The Li braries and Archives Trust 15 a linked charity. The Lord Crewe's Charity exists to apply the income arising from land and a55ets of the Charity in accordance with its new constitution registered on 20 December 2013. 3. Investment income Unrestricted Funds Restricted Endowment Funds Funds Total Funds 2024 Total Funds 2023 Total income from properties Income from Llsted Investments and deposlts Dividends and interest on listed investments 1,499,897 1,499,897 1,499,068 315,208 315,208 342,875 Total Income from listed investments and deposits 315,208 315,208 342,875 Total Investment Income 1,815,105 1,815,105 1,841,943 2023 1,841,943 1,841,943 4. Other Income Unrestricted Funds Restricted Endowment Funds Funds Total Funds 2024 Total Funds 2023 Other Income 25,561 25,561 908 28,494 Disposal of Heritage Assets 908 26,469 26,469 28,494 2023 28,494 28,494 Included in prior year Other Income is É23,000 cash received from Lord Crewe's Apprenticeshlp Fund (charity number 5274091 and Lord Crewe's Durham Educational Foundation Icharity number 5273371 upon their closure and merger with the Charity. 5. Total return Investment The investment power of total return was granted by a Resolution on 26 April 2024. At the time the power was granted the trustees identified the value of the permanent endowment received since 1721 up until 31 December 2002. This set the baseline value of £5,171,795 to which any subsequent gift5 of endowment are added. The difference between the total of endowment fund5 as at 310ecember 2002 and the opening value represented the opening value of unapplied total return of £4,484,785. The power of total return permits the trustees to invest permanently endowed funds to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains invested as part of the permanent endowment. Page | 19
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 The power allows the trustees to decide in each year how much of the unapplied total return is transferred to income fund5 and so available for expenditure. Having considered their obligations under the duty of even-handedness, the Trustees made no transfer of unapplied total return to unrestricted income funds in 2024. In making this decision the trustees have taken account of the current investment climate, the return on investment for the year and the income needs of the charity. In deciding on the amount to transfer to income funds, the trustees took the advice of their investment advisors, Sarasin & Partners, as to the likely investment trends and the susta inability of the investment fur)d after considerin8 various levels of transfer to income. The value of the permanent endownment is maintained each year by CPI and a recoupment transfer is shown from the unapplied total return. The Investment fund and applicatlon of total return to permanent endowment fund5', 2024 Endowment Unapplied Total Return Total Openlng value at 31 March 2024: Gift component of the permanent endowment Unapplied total return 5,171,795 5,171,795 4,484,785 4,484,785 Total 5,171,795 4,484,785 9,656,580 Movements.. Recoupment of trust for investment Dividends and distribution 101,103 1101,1031 315,208 315,208 Recognised and unrecognised galns/llossesl Investment management costs 976,026 976,026 153,7501 153,7501 Total 101,103 1,136,381 1,237,484 Unapplied total return allocaled to income Net movement 101,103 1,136,381 1,237,484 C1051ng value: Gift component of the permanent Unapplied total return 5,272,898 5,272,898 5,621,166 5,621,166 Total 5,272,898 5,621,166 10.894,064 The total return approach to the investments was adopted during 2024 therefore prior year comparatives are omitted. As described in Note IS, the £10,894,064 balance forms part of the £51,964,682 endowment fund. Page | 20
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 6. Investment management costs Unrestricted Funds Restricted Endowment Total Funds Funds Funds 2024 Total Funds 2023 Property costs Travel and Subsistence related costs Subscriptions Accountancy - property related Professional fees - property related Professional fees - other investments 606,114 1,329 5,016 655 606,114 1,329 5,016 655 424,768 1,003 4,100 680 231,418 29,209 231,418 53,750 232,650 56,686 337 24,204 873,741 337 24,204 898,282 719,887 2023 696,685 319 22,883 719,887 7. Allocatlon of support costs and overheads The breakdown of support costs and how these were allocated is shown below.. Unrestricted activitie5 Restricted activities Total actlvitles 2023 Basls of Total ?pportlonment Charitable Activities Office Communications Printing, postage and stationery Mana8ement Accountancv Tercentenary LSbraries and archives Governance costs 590 590 6,703 1,034 26,160 5,893 767 561 C05t and usage 30,562 C05t and usage 1,465 Cost and usa8e 26,351 Cost and usa8e 6,124 sraff tSme 334 Cost and usage 6,422 Specific 16,718 Cosl 6,703 1,034 26,160 5,893 767 5,700 5,700 21,295 21,295 62,442 5,700 68,142 88,537 The total support cost attributable to charitable activities is apportioned pro rota 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 Tercentenary grants 5,821 39,159 2,117 11,906 7,288 1,322 529 Total charitable activities costs 68,142 The £7,288 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 2024 Analysis of governance costs Total Funds Total Funds 2024 2023 Tru5tee5' expenses and meetings costs Audit Fee current year Professional and Legal fees 3,279 11,350 6,666 2,299 10,500 3,919 21,295 16,718 8. Analys15 of charStable actSvltle5 expendlture Unrestricted Funds Restricted Endowment Total Funds Funds Funds Total Funds 2024 2023 Payments under the Wlll and to Llncoln Colle8e Oxford: grant funded activitv support costs and overheads 159,720 5,821 159,720 5,821 156,370 4,591 165,541 165,541 160,961 Educatlonal support ol clergy dependants.. grant funded activitv support costs and overheads 163,903 39,159 163,903 39,159 111,117 14,657 203,062 203,062 125,774 Dlocese support grant funded activitv support Costs and overheads 432,000 2,117 432,000 2,117 350,000 1,413 434,117 434,117 351,413 Clergy support: grant funded activity support costs and overheads 80,200 11,906 80,200 11,906 67,250 6,534 92,106 92,106 73,784 Llbrarles and Archlves: grant funded activity dlrect costs support costs and overheads 28,000 7,800 7,288 28,000 7,800 7,288 28,000 7,800 7,658 43,088 43,088 43,458 Grants to other Instltutlons grant funded activily support costs and overheads 58,000 1,322 58,000 1,322 37,200 1,413 59,322 59,322 38,613 Tercentenary Grants grant funded activity supporl costs and overheads 365,362 365,362 529 211,375 52,271 529 365,891 365,891 263,646 Total costs of charitable activities 1,320,039 43,088 1,363,127 1,057,649 2023 1,014, 191 43,458 1,057,649 Page | 22
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 The support Costs and overheads of £7,288 allocated to the Libraries and Archives activities includes £5,700 detailed as restricted activities and £1,588 detailed as restricted support costs. 9. Trustees, remuneratlon and related party transactlons Trustees received no emoluments in the year12023.' £nill. Travel and accommodation expense5 reimbursed to three trustees, in the year totalled £1,04312023 two trustees.. £7391. The Venerable R Cooper was a Trustee of the Charity during the year. He received an education grant of £2,037 in 202412023.. £2.5851 and a fuel support grant of £Nil12023.' £7501. The Rector of Lincoln College, Oxford is a trustee of the Charity. Under the terms of the will, scholarships ancs bursaries were paid to undergraduates and graduates of Lincoln Colle8e totalling £141,100 in 202412023: £150,000) in addition to a Brant for Tercentenary projects of £174,18712023- £Nill, Other Trustees (the three Archdeaconsl have an institutional interest in the Dioceses of Durham and of Newcastle. In 2024 annual grants of £172,00012023'. £140,000) was paid to Newcastle Diocese and £260,000 12023.. £210,000) to Durham Diocese in addition to grants for Tercentenary projects ol £IOO,00012023: £100,000) and £91,17512023: £Nill respectively. On all occasions Trustee5 declare any institutional interest and take no part in the voting of such granls. 10. Comparatlve for Statement of Flnanclal Actlvltle5 Unrestricted Funds Restricted Endowment Funds Funds Total Funds Income and endowments from: Investments Other 1,841,943 28,494 1,841,943 28,494 Total Income and endowments 1,870,437 1,870,437 Expendlture on: Roisingfunds.. Investment management costs Choritoble octivities.. Payments under the Will and to Lincoln College Oxford Educational support of clergy dependants Diocese support Clergy support Maintenance of Library Miscellaneous charitable giving 696,685 319 22,883 719,887 160,961 125,774 351,413 73,784 160,961 125.774 351,413 73,784 43,458 302,259 43,458 302,259 Total cost of charitable activities 1,014,191 43,458 1,057,649 Total Expendlture 1,710,876 43,777 22,883 1,777,536 Net gains on investments 32,809 328 2,334,945 2,368,082 Net Incomellexpendlturel 192,370 143,4491 2,312,062 2,460,983 Transfer between f unds 164,6161 43,458 21,158 Net movement In funds 127,754 2,333,220 2,460,983 Reconclllatlon of funds: Total fund brought forward 4,343,209 56,342 47,543,685 51,943,236 Total funds carried forward 4,470,963 56,351 49,876,905 54,404,219 Page | 23
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 11. Fixed A55et Investments Ila. Unquoted Investments - Investment property Unrestricted Funds Restricted Endowment Funds Funds Total Funds Total Funds 2023 2024 Valuation as at l January 2024 Additions Proceeds from disposals Net increase on disposals and revaluations 43,857,738 152,758 17,5001 1,491,930 43,857,738 152,758 17,5001 1,491,930 42,157,719 21,158 1632,5371 2,311,398 Valuation a5 at 31 December 2024 45,494,926 45,494,926 43,857,738 Cost as at 31 December 2024 4,093,623 4,093,623 3,940,865 An informal valuation of the properlies wa5 carried out by Savills as at 31 December 2024 and the property valuatlons included in the accounts as at this date. Properties were valued at Open Market Value. Ilb. Quoted Investments Unrestricted Funds Restricted Endowment Total Funds Total Fund5 Funds Funds 2024 2023 Investments at market value l January 2024 Cash withdrawn Management fees Investment 8ains/llossesl on disposals and revaluations 5,278,317 56,351 4,044,110 1300,0001 124,2041 467,293 9,378,778 {300,0001 154,6991 976,026 10,052,180 1675,0001 155,0861 56,684 130,1581 502,222 13371 6,511 Investments at market value 310ecember 2024 5,750,381 62,525 4,187,199 10,000,105 9,378,778 Cost as at 31 December 2024 5,202,361 58,181 4,175,429 9,435,971 8,334,827 Analysls of Investments at market value Unrestricted Funds Restricted Endowment Total Funds Funds Funds 2024 Total Funds 2023 Quoted Investments 5,750,381 62,525 4,187,199 io,000,ios 9,378,778 5,750,381 62,525 4,187,199 10,000,105 9,378,778 The Charity operates its investment portfolio on a total return basis - see note 5. Financial instruments measured at falr 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 instrument5 lie5 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 organi5ation 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 isks by retaining expert investment managers who manage the portfolio on a di5cretion3ry basis, with regular reporting to trustees 2nd information provided electronically and available on line on at least a monthly basis. In addition the Trustees retain an independent investment adviser lo assist them in monitoring and assessing the performance of the investment managers. Page | 24
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 12. Fund transfers Transfers of £43,088 12023.. £43,458) 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 £152,758 12023.. £21,158) have been made from unrestricted funds to the Endowment Fund, representing the additions to the property portfolio. 13. Debtors Total Funds Total Funds 2024 2023 Prepayments Accrued income Amounts due from tenants 2,518 41,315 3,420 46,114 8,474 All debtors relate to Unrestricted Funds. 43,833 58,008 14. Credltor5 - Amounts fallSng due wlthln one year Total Fund5 Total Funds 2023 2024 Accruals and sundry creditors Trade creditors Payroll taxes and Value Added Tax Advances of rents Deferred Income Tenants, bonds 157,423 56,620 39,078 10,388 78,991 64,883 361,084 23,363 22,976 72,035 64,881 All creditors relate to Unrestricted Funds. 407,383 544,339 14a. Deferred Income Total Funds Total Funds 2023 2024 Deferred Income b/fwd Deferred in the year Released in the year 72,035 78,991 172,0351 67,765 72,035 167,7651 Deferred Income clfwd 78,991 72,035 Oeferred income relates to rental income received in advance. P38e | 25
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 15. Endowment Fund Balance as at l January Amounts Expended Gains/ (Losses) on investments Balance as at Tra nsfers 31 December 2024 2024 Personal Estate 49,876,905 124,2041 1,959,223 152,758 51,964,682 Balance as at l January Amount5 Expended Gains/ (Losses) on investments Balance as at Transfers 31 December 2023 2023 Personal Estate 47,543,685 122,8831 2,334,945 21,158 49,876,905 The Personal Estate comprises the endowed properties Set out in the Schedule to the Scheme of 8 August 1974, together with expenditure incurred to date of £1,557,315 including £152,758 for 2024, which enhanced the capita1 value of investment properties of the Personal Estate. All profits fealised on disposals of properly are added to the Personal Estate Account. As described in Note 5, £,10,894,064 of the £51,964,682 Balance is a permanent endowment fund operated on a total return basis. 16. Restrlcted Funds Balance as at l January Incoming Restricted fvnds Outgoing Galns/ Restricted IL055es1 on funds inve5tmentS Balance as at 31 December Transfers 2024 2024 Llbrarle5 & Archlves Trust Fund: Personal Estate Account 29,128 27,223 29,128 33,397 Revenue Account 143,4251 6,511 43,088 56,351 143,4251 6,511 43,088 62,525 Balance as al l January Incoming Restricted funds OL*tgoing Gains/ Restricted ILossesl on funds investments Transfers Balance as at 31 December 2023 2023 Llbrarles & Archlves Trust Fund., Personal Estate Account 29,128 27,214 29,128 27,223 Revenue Account 143,7771 328 43,458 56,342 143,7771 328 43,458 56,351 The Scheme of 8 August 1974 provide5 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 | 26
LORD CREWE'S CHARITY NOTES TO THE FSNANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 17. Designated Funds Balance as at l January Designations from Revenue Gains/ ILossesl on investments Expenditure movements Balance as at 31 Oecember Transfers 2024 2024 Extraordlnary Repair Fund 250,000 250,000 250,000 250,000 8alance as at I january Designatioris from Revenue Gains/ (Losses) on investments Expenditure movements Transfer5 Balance as at 31 December 2023 2023 Extraordinary Repair Fund 250,000 250,000 250,000 250,000 The Trustees have been directed by the Charity Commissioners by an Order dated 30 November 1992 that the Extraordinarv 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 Extr30rdinary Repair Fund can be expended on Permanent Endowment property in almost any way. The expenditure could include 3dding extensions to existing buildings. The fund was reclassified as a designated fund during the year ended 31 December 2005. 18. Summary of Funds Funds brought forward Note Incoming resources Funds carrled forward 31 December Expenditure Transfers Gains / Ilossesl l January 2024 2024 Unrestrlcted funds General Designated 4,220,963 250,000 1,841,574 12,193,780) 1195,8461 502,222 4,175,133 250,000 17 4,470,963 1,841,574 12,193,780) 1195,8461 S02,222 4,425,133 Restricted funds Endowment funds 16 15 56,351 49,876,905 143,4251 124,2041 43,088 152,758 6,511 62,525 1,959,223 51,964,682 Total funds 54,404,219 1,841,574 12,261,409) 2,467,956 56,452,340 Page | 27
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 18. Summary of Funds- contlnued Funds brought forward Incoming resources Funds carrled forward 31 December Expenditure Transfers Gains/ Ilosse51 I january 2023 2023 Unrestricted funds General Designated 4,093,209 250,000 4,343,209 1,870,437 11,710,876) 164,6161 32,809 4,220,963 250,000 4,470,963 1,870,437 11,710,876) 164,6161 32,809 Restricted funds Endowment funds 56,342 47,543,685 143,7771 122,8831 43,458 21,158 328 56,351 2,334,945 49,876,905 Total funds 51,943,236 1,870,437 11,777,536) 2,368,082 54,404,219 19. Reconclllatlon of net Income/lexpendlturel to net cash flow from operatlng actlvltles 2024 2023 Net income 2,048,121 2,460,983 Adjustments for.. Other investments management charges IGainsl l Losses on investments Dividends, distributions, Interest and rents from investments Decrease/lincreasel In debtors Increase/ldecreasel in creditors 54,699 55,086 12,467,956) 12,368,0821 11,841,574) 11,870,437) 101,756 55,266 1136,956) 1451,7811 Net cash used In operatlng a¢lvltles 12,241,910) 12,118,965) 20. Flnanclal commltments Financial commitments entered Into at the end of the financial year were as follows,. 2024 2023 Contracted for but not provided for in the accounts 333,617 79,245 21. Grant Commltments Grants awarded for payment in subsequent years, subject to certain conditions that are required to be met, therefore are not included in year end liabilities. 2024 2023 Education Grants awarded for payment in January and May 2025 Tercentenary Grants awarded for payment in 2023 and 2024.. Durham Diocese - Hartlepool Project Durham Diocese - Jarrow Oebt Advice Project Newcastle Diocese - Youth & Children's Work Project 131,983 107,016 49,175 42,000 loo,000 131,983 298,191 Page | 28
LORD CREWE'S CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 22. Contingent Liabilitie5 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 2024 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. 23. Herltage Assets As disclosed in Note I IAccounting policies), the Trustees consider that three categories of assets are Heritage Assets and can be summarised a5 follows.. Asset category Sharp Library Detalls Mostly modern books held for theological research. Bamburgh Library Archives at Woodhorn, the Northumberland Archives The library comprises of music books and manuscripts and early printed works. This comprises map5 and estate records dating from 1709 to the late 1900s. The two Sharp Libraries (Durham and Newcasilel provide access to extensive collections of modern theology books for clergy, ordinands, and other Diocesan academic readers who may not have acces5 to the libraries of University departments or other Hlgher Education institutions. They are also accessible to Theology students in addilion to their academic libraries. The Bamburgh Library held in Ihe Special Collections Department of Durham University Library at Palace Green is an historic library of simi lar 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 anli-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 Bambur8h 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 famlly. They also include some music from the collection of Ihe Hon. Edward Finch11664-17381. The Trustees consider that obtaininE 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. ConsequeT)tly no values are attributed to heritage assets in the balance sheet. Further information relating to the management of and access to the a55ets is provided within the Activities for Achieving Objectives section of the Trustees, Report. PaBe | 29