2023-03-31-accounts

THREE MONKIES TRUST (Registered Charity No. 1164342) (Registered Company No. CE005593) REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

THREE MONKIES TRUST

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS

	Page
Report of the Trustees	1 – 4
Independent examiners report	5
Statement of Financial Activities	6
Balance Sheet	7
Notes to the Financial Statements	8 - 12

Page 1

THREE MONKIES TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their report and independently examined financial statements of Three Monkies Trust (“the Charity” or “the CIO”) for the year ended 31 March 2023. These have been prepared in accordance with the accounting policies set out on pages 8 and 9 and comply with the applicable charity law.

1. REFERENCE AND ADMINISTRATIVE DETAILS

Three Monkies Trust, registered charity number 1164342 and registered company number CE005593, is based and administered in the United Kingdom. The registered office is 8a Belsize Court Garages, Belsize Lane, Hampstead, London NW3 5AJ.

Trustees:

The names of the trustees who served throughout the period and continue to serve at the date of the report’s approval are:

• Nigel Paul Higgins

• Sanya Polescuk

• Anna Imogen Higgins

• Anton Edgar Higgins (appointed 8 March 2023)

• Maja Nathasha Higgins (appointed 8 March 2023)

Accountants:

Rawlinson & Hunter LLP, Eighth Floor, 6 New Street Square, London, EC4A 3AQ

Independent Examiner:

Christopher Hawley FCA, Rawlinson & Hunter LLP, Eighth Floor, 6 New Street Square, London, EC4A 3AQ

Investment Management:

Rothschild & Co Bank CI Limited, St. Julian's Court, St. Peter Port, Guernsey GY1 3BP

Bankers:

C Hoare & Co, 37 Fleet Street, London, EC4P 4DQ

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity was established by a Constitution dated 10 November 2015 and registered with the Charity Commission on 10 November 2015 as a Charitable Incorporated Organisation governed by the proper law of England and Wales. The trustees of the Charity who are also the members have no liability for the Charity’s debts.

The entire resources of the Charity have been unrestricted throughout the period and the trustees have complete discretion for the use of the funds in pursuance of the Charity’s objectives.

The management of the Charity is conducted solely by the trustees.

The trustees’ investment powers are unrestricted.

The number of trustees shall be a minimum of three. Future trustees shall be appointed by an unanimous resolution by the existing trustees.

Page 2

THREE MONKIES TRUST

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Induction and Training

Should new trustees be appointed, a formal induction process will be conducted by the trustees. Other trustee training is undertaken as and when appropriate. All trustees are aware of their legal duties and obligations in respect of the management of the Charity, including in relation to the protection of its assets.

Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the Annual Report of the Trustees 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 and 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 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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 accounting records that 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 and where relevant, the Charities Act 2022, 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.

Internal Controls

The trustees have overall responsibility for ensuring that the Charity has appropriate systems of internal controls and for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements follow best practice and all applicable law regulation and guidance.

The trustees are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.

Page 3

THREE MONKIES TRUST

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2023

3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objectives of the CIO are specifically restricted to such objects or purposes which are recognised as exclusively charitable under the law of England and Wales.

The trustees may use the income and the capital of the Charity in promoting the objects.

Grant Making Policy

The trustees’ grant making policy will be to generally consider making donations by way of direct funding and grants to charitable organisations, recognised as such in their respective jurisdiction. The recipient projects must be seen as exclusively charitable under English law. The Charity will make grants to other charities and voluntary bodies in accordance with its objects, with a preference to fund small to medium sized charities with an annual income of less than £500,000.

The trustees have the power to make grants by majority decision but intend to make at least 70% of grants with the unanimous support of the trustees, with a focus on:

• promoting the advancement of music and the arts, in particular to support helping young musicians, singers and dancers from disadvantaged backgrounds;

• supporting children and young adults under 25 years in need; and

• support London-based charities and non-profit organisations to campaign and provide affordable accommodation for key workers.

The Charity expects to make most of its grants to UK registered charities and will generally make grants up to £10,000. In appropriate circumstances repeat grants may be awarded.

Statement of Public Benefit

The trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 and where relevant, Charities Act 2022, to have due regard to it. They consider the information which follows in this annual report, about the Charity’s aims, activities and achievements in the areas of interest that the Charity supports demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities.

4. ACHIEVEMENT AND PERFORMANCE

Charitable Activities

Charitable donations totalling £418,550 (2022: £296,100) were pledged during the year with a balance of £166,573 (2022: £50,116) outstanding at the year-end after discounting for long term commitments. The trustees’ grant making policies are set out in section 3 of this report.

The accounting treatment in respect of grants is in line with that set out in the SORP (FRS 102).

5. FINANCIAL REVIEW

Incoming resources totalled £5,501 (2022: £Nil) and comprised of a donation and bank interest.

During the year, one voluntary donation (2022: Nil) was added to unrestricted funds and no contribution was made to the Expendable Endowment Fund (2022: £Nil). A transfer of £200,000 (2022: £200,000) was made from the Expendable Endowment Fund to the General Fund.

Page 4

THREE MONKIES TRUST

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2023

FINANCIAL REVIEW (continued)

Governance costs of £10,651 (2022: £6,027) were incurred in the year. These costs relate to legal, accountancy and sundry expenses incurred by the Charity during the year.

The balance of reserves at 31 March 2023 is £10,461,741 (2022: £11,193,587).

Investment Policy and Performance

The trustees have resolved to invest in open ended investment funds and zero coupon Government bonds. They consider this an appropriate strategy with regards to the risk exposure of the Charity together with the capital preservation and return.

Risk Management

A risk assessment has been undertaken which comprises:

• An annual review of the risks the Charity may face;

• The establishment of systems and procedures to mitigate those risks; and

• The implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise.

This continuing process will identify risk areas to which the Charity is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these financial statements.

Reserves Policy

The trustees have no outstanding commitments or cash demands which are not adequately covered by existing resources. The net assets of the Charity are regarded as free reserves and the funds at 31 March 2023 will be retained to make grants in accordance with the Charity’s charitable objects.

6. PLANS FOR THE FUTURE

The trustees do not propose to deviate from the current objectives and activities of the Charity as detailed in section 3 of this report but will further develop and refine their strategies, policies and procedures in future.

Approved by the trustees on and signed on their behalf by:

23/1/2024

………………………………… ………………………………… Trustee Date

Page 5

INDEPENDENT EXAMINER’S REPORT

TO THE TRUSTEES

OF THREE MONKIES TRUST

I report to the charity trustees on my examination of the accounts of the Three Monkies Trust for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet and the related notes.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 and where relevant, the Charities Act 2022 (“the Act”).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Christopher Hawley 25 January 2024

Christopher J Hawley FCA Chartered Accountant and Independent Examiner Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ

Page 6

THREE MONKIES TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

	Page	General	Expendable	Total	Total
		Fund	Endowment	2023	2022
			Fund
		£	£	£	£
Income from:
Donations (note 2)	10	5,280		5,280
Bank interest		221		221
		5,501		5,501	-
Expenditure on:
Charitable activities (note 3)	10	427,458		427,458	301,391
Total expenditure		427,458		427,458	301,391
Net (expenditure) before net gains
on investment assets		(421,957)	-	(421,957)	(301,391)
Net gains on investments (note 4)	11	-	(309,889)	(309,889)	244,899
Net transfer between funds		200,000	(200,000)	-	-
Net movement in funds		(221,957)	(509,889)	(731,846)	(56,492)
Reconciliation of funds:
Total funds brought forward at 1 April 2022		358,225	10,835,362	11,193,587	11,250,079
Total funds carried forward at 31
March 2023	7	£ 136,268	£10,325,473	£10,461,741	£ 11,193,587

There are no recognised gains or losses other than those included in the statement of financial activities.

All incoming resources and resources expended derive from continuing activities.

For comparative information on separate classes of funds, see Note 9.

The notes on pages 8 to 12 form part of these financial statements.

Page 7

THREE MONKIES TRUST

BALANCE SHEET

AT 31 MARCH 2023

	Page	Total	Total
		2023	2022
		£	£
Fixed Assets
Investments and cash held at market value (note 4)	11	10,612,773	11,227,662
Current Assets
Cash at bank (note 5)	11	21,041	24,921
		21,041	24,921
Creditors– amounts falling due within one year (note 6)	11	(97,600)	(34,380)
Net Current Assets		(76,559)	(9,459)
Total Assets less Current Liabilities		10,536,214	11,218,203
Creditors– amounts falling due after more than one year
(note 7)	11	(74,473)	(24,616)
Total Net Assets		£10,461,741	£11,193,587
The funds for the charity:
Expendable Endowment Fund	6	10,325,473	10,835,362
General Fund	6	136,268	358,225
		£10,461,741	£11,193,587

The financial statements were approved and authorised for issue by the trustees and were signed on their behalf by:

Nigel Higgins

23/1/2024

………………………………… ………………………………… Trustee Date

The notes on pages 8 to 12 form part of these financial statements.

Page 8

THREE MONKIES TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

Basis of accounting

Three Monkies Trust (“the Charity” or “the CIO”), registered charity number 1164342 and registered company number CE005593, is based and administered in the United Kingdom. The registered address is 8a Belsize Court Garages, Belsize Lane, Hampstead, NW3 5AJ. The nature of the Charity’s operations and principal activities are set out in the Trustees’ Annual Report.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include the revaluation of investments. The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (“Charities SORP FRS 102”) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and where relevant, the Charities Act 2022. The principal accounting policies adopted are as follows:

The Charity has applied FRS 102 Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 section 1A.

The financial statements are presented in sterling which is the functional currency of the Charity.

Income recognition

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

Voluntary income and government grants derived from donations and grants are accounted for in the period in which the Charity is entitled to their receipt.

Investment income derived from interest on income bearing deposit accounts is recorded as and when received.

There is no investment income arising from the investments in zero coupon government bonds.

Expenditure recognition

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation committing the trustees to the expenditure.

Charitable activities comprise grants and donations made during the year and are expended through the SOFA when the offer is conveyed to the recipient.

Governance costs relate to the general running of the Charity, as opposed to the management functions inherent in generating funds, and are included in Charitable Activities.

Status of funds

The resources of the Charity are allocated between general and endowment funds. The trustees have complete discretion for their use in pursuance of their objectives.

Page 9

THREE MONKIES TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES (continued)

Fixed asset investments

Investments represent zero coupon government bonds and open ended investment funds and are included at closing mid-market value at the balance sheet date. Realised gains and losses on investments are recognised on disposal of investments and any gain or loss on revaluation is taken to the Statement of Financial Activities (SOFA). The determination of any gains and losses is calculated by reference to the value of such assets at the beginning of the accounting period.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised as expenditure.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. Cash held by investment managers for investing is treated as part of the investment portfolio.

Provisions

Provisions are recognised when the Charity has an obligation at the Balance Sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliably estimated.

Taxation

The Charity is not subject to any taxes on its charitable activities.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Going concern

The Financial Statements have been prepared on a going concern basis. The Covid–19 pandemic has created operational pressures on all charities. The Foundation’s expenditure requirements are within control of the trustees and therefore the pandemic has not had a negative impact on the Foundation’s financial sustainability and the trustees consider the adoption of the going concern basis in preparing the financial statements to be appropriate.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value, except where settlement is delayed, in which case the transaction is recognised at the present value of the settlement amount.

Page 10

THREE MONKIES TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

		Page	Total	Total
			2023	2022
2.	INCOME FROM DONATIONS		£	£
	Cash donation		5,280	-
3.	CHARITABLE ACTIVITIES
	The following grants were awarded to charitable institutions during the year ended 31 March 2023:
	Grants awarded to charities registered throughout England	& Wales	£ 418,550	£ 296,100
	The awards granted above are attributable to the following areas of focus to the charity:
	Music and Arts		382,750	227,000
	Children and young people		35,800	69,100
			418,550	296,100
	Less:Net finance expense arising on unwinding
	discounts on long term grant commitments		1,743	736
			416,807	295,364
	Governance costs
	Legal fee		8,400	-
	Accountancy fees		1,900	5,280
	Sundry expenses		330	540
	Bank charges		21	207
			10,651	6,027
	Total charitable activities	6	£ 427,458	£ 301,391

Page 11

THREE MONKIES TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

		Page	Total	Total
			2023	2022
4.	FIXED ASSET INVESTMENTS		£	£
	Quoted investments
	Market value 1 April 2022		11,227,655	10,547,756
	Additions at book cost		1,257,216	800,000
	Sale proceeds		(1,562,216)	(365,000)
	Net realised gain for the year		5,023	13
	Net unrealised (loss)/gain for the year		(314,912)	244,886
			10,612,766	11,227,655
	Cash held as part of the investment portfolio		7	7
	Market value 31 March 2023	7	£10,612,773	£11,227,662
	Historical cost 31 March 2023		£ 8,083,176	£ 8,382,293
	Net gain on investment assets
	Net realised gain		5,023	13
	Net unrealised (loss)/gain		(314,912)	244,886
	Net (loss)/gain	6	£ (309,889)	£ 244,899
5.	CASH AT BANK
	C Hoare & Co. account	7	£ 21,041	£ 24,921
6.	CREDITORS – amounts falling due within one year
	Donation commitments		92,100	25,500
	Accountancy fee		5,500	8,880
		7	£ 97,600	£ 34,380
7.	CREDITORS – amounts falling due in more than one year
	Donation commitments	7	£ 74,473	£ 24,616

Page 12

THREE MONKIES TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8. FUNDS RECONCILLIATION

Fund balance

	Brought	Additions/			Net	Transfer	Carried
	forward	Income	Expenditure		(Losses)	between funds	forward
	£	£		£	£	£	£
General –
unrestricted	358,225	5,501		(427,458)	-	200,000	136,268
Expendable
Endowment –
restricted	10,835,362	-		-	(309,889)	(200,000)	10,325,473
Total funds	£11,193,587 £ 5,501		£	(427,458) £ (309,889)		£ -	£10,461,741

9. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

During the year ended 31 March 2023, the charity received voluntary donation of £5,280 from Nigel Paul Higgins, a trustee of the charity.

During the year, the charity committed £155,000 (2022: £100,000) to Sadler’s Wells Trust Limited, in which one of the trustees, Nigel Paul Higgins, is Chairman.

10. PRIOR YEAR COMPARATIVES FOR YEAR ENDED 31 MARCH 2022

	General	Expendable	Total
	Funds	Endowment	2022
		Funds
	£	£	£
Expenditure on:
Charitable activities	301,391		301,391
Total expenditure	301,391		301,391
Net income before net gains on investment
assets	(301,391)	-	(301,391)
Net gains on investments	-	244,899	244,899
Net transfer between funds	200,000	(200,000)	-
Net movement in funds	(101,391)	44,899	(56,492)
Reconciliation of funds:
Total funds brought forward at 1 April 2021	459,616	10,790,463	11,250,078
Total funds carried forward at 31 March 2022	£ 358,225	£10,835,362	£11,193,587