**Charity number: 1171822**
## **THE LAWSON TRUST CIO**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
_**FOR THE YEAR ENDED**_
**31 MARCH 2021**
## **THE LAWSON TRUST CIO**
## **CONTENTS**
|Trustees’ report|1|
|---|---|
|Independent auditors’ report|6|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cashflows|11|
|Notes to the financial statements|12|
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Twelve months ago, when writing the report for last year’s accounts, I reported that the pandemic had not affected our grant-making as this had already been completed for the year but our investments had taken a severe hit by the 31 March 2020. Although we are still seeing the effects of the pandemic all around us, I can reverse the above by saying that our income and consequently our grant making has fallen but our investments have recovered their value and continue to rise.
The trustees present their annual report together with the financial statements for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and in accordance with the governing document, the Charities Act 2011 and the requirements of "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019) - (Charities SORP (FRS 102)).
## **Objectives and activities**
The objects of the Charity are the furtherance of such charitable purposes, in such manner as the trustees in their absolute discretion think fit. In setting objectives and planning for activities the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.
The principal object of the Charity is to provide financial grants to charitable organisations in accordance with the grant making policy from the income and surpluses generated by the capital invested. No restrictions are imposed on the purpose of the grant which allows applications to be for the support towards capital projects, other projects, or core funding.
In considering applications which are all carefully reviewed, the trustees give preference to local organisations in Kent and Sussex or national organisations with representation in these counties. The trustees have adopted a policy, in the main, of giving support to organisations that fall within the following categories:
- Arts and heritage
- Education
- Environment
- Health
- Social & economic disadvantage
In awarding grants the trustees aim to make a difference in every recipient charity who are required to report back within a twelve-month period on how the money has been utilised and what benefits have been achieved. The trustees review these feedback reports which also assist in considering if further support will be made available.
In the year under review grants of up to £10,000 have been made to some 65 organisations covering the full range of categories set out above and totalling £238,490. A further 9 organisations have received larger grants totalling £163,000. Examples of the purpose of these larger grants are set out below:
- A grant to RNLI to assist with crew training at lifeboat stations based in Kent and Sussex.
- A grant to Tunbridge Wells Citizen Advice Bureau for their Prescribed Advice project in local doctors’ surgeries.
- Core funding to assist with the salary of a paramedic and towards a specific appeal due to the effect of Covid-19 to Heart of Kent Hospice.
- Further financial assistance to enable building expansion at Dandelion Time who offer help to children with very challenging emotional issues.
- A grant towards the work of Serve On a volunteer emergency response organisation.
- Assistance with others in the further funding of the Safe Haven in Folkestone to provide mental health support in the local community.
- A grant to the Maypole Project who support children with complex medical needs and provide emotional well-being to the whole family.
1
**THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
- A grant to Together Kent which joins local government, church-based groups and others to improve access to resources, make local work more effective and create a framework to respond to the social challenges in Kent.
The trustees have been unable to visit some of these recipients, as previously, to see and hear first-hand the benefits the grants have made due to the restrictions caused by the pandemic. They have had to rely on the feedback reports as mentioned above.
The trustees consider that the objects of the charity as originally set out by the settlors have been achieved by awarding the grants made during the year.
## **Achievements and performance**
These accounts are for the year to 31 March 2021.
The charity’s capital is invested either in listed investments quoted on recognised stock exchanges or in residential flats and houses available for renting. The trustees take a long-term view with both these types of investment and realise that values can increase or decrease during any one accounting period. Therefore, the hope is that the investments will, over a ten-year period, increase in value at more than the rate of inflation in order to protect the capital.
The trustees aim to generate income or realised capital surpluses of at least 4% per annum. This income/surplus is then available to be distributed in accordance with the charity’s objectives. In the current year, this target has been achieved due in the main to realised gains towards the end of the financial year. As an immediate result of the pandemic the funds available for distribution as grants were less than the trustees would have wished and consequently the total amount paid out was reduced.
The Lawson Endowment Fund for Kent with the Kent Community Foundation (KCF) and the Lawson Endowment Fund for Sussex with the Sussex Community Foundation (SCF) were set up in earlier years. The Community Foundations have invested these sums and the income generated less their costs are distributed quarterly to smaller charities/organisations within the two counties. The Community Foundations carry out the due diligence and their trustees allocate the grants in accordance with their criteria on a quarterly basis. These details are shared with the charity trustees. The Lawson Trust CIO has no recourse to the sums donated to the Endowment Funds.
The two Endowment Funds have both performed well and fulfilled the purpose for which they were created. They have recovered from their low point at 31 March 2020 when they had suffered a significant fall in value due to Covid-19. The two funds have enabled £330,494 to be given to 91 grassroot organisations in the two counties during the year ended 31 March 2021. This is lower than the previous year due a reduction in investment income and the fall in value of the investments. This should improve in the current year.
In April 2019, the trust entered into a match funding agreement with Kent Community Foundation whereby the trust would transfer to KCF a sum equal to new monies raised by KCF from either new or existing donors up to £1,000,000. The total donation was completed in the year under review and has been invested together with the new monies and grants have now started to be made from this joint endowment fund.
## **Financial review**
As reported in the Statement of Financial Activities the gross income for the year amounted to £614,021 as compared to £653,668 for the year to 31 March 2020. After costs a surplus of £493,695 (2020 - £529,321) has been generated. This together with the surplus on realised gains on investments of £573,918 (2020 - £169,524) has been added to the general funds brought forward of £66,715 making a total available for awarding grants of £1,134,328. During the year grants have been awarded of £401,490 (2020 - £664,863) together with £100,000 being the fourth instalment of the grant to Rapport Housing & Care referred to in previous trustees’ reports.
2
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Balance Sheet on page 10 shows that the Charity Funds total £21,613,109 which are divided between capital account (£20,980,271) and general fund (£632,838). The capital account represents the realised value of the original funds settled less the value of the funds donated to the Kent Community Foundation and the Sussex Community Foundation. It is the trustees’ intention to maintain this fund at around this level and over a period to grow the fund, at least in line with inflation. The trustees are pleased to report that the investments have recovered from the lows of 31 March 2020 and have performed well in the year thus reflecting the above value.
The residential property portfolio has been valued by our managing agents at the 31 March 2021 and the trustees are able to report that the value amounts to £5,815,000. This figure has been incorporated into the accounts and the unrealised gain added to the capital account.
The general fund represents the balance of undistributed income at 31 March 2021. These reserves provide the funds to enable the charity to function for a six-month period which the trustees estimate at £50,000. The balance is available for distribution as grants at the following trustees’ quarterly meetings together with income subsequently arising in the quarter.
## **Structure, governance, and management**
The Lawson Trust CIO was entered on the Register of Charities on 28 February 2017 with a Constitution dated 11 November 2016. This was amended at the trustees’ meeting on 11 August 2021 to increase the maximum number of trustees from 7 to 10. The principal object of the trust is to provide financial grants to charitable organisations in accordance with the grant making policy.
The trustees of the Charity for the year ended 31 March 2021 are set out below. The management of the trust is the responsibility of the trustees who meet on a regular basis and are controlled in accordance with the terms of the constitution. There are no employees of the Charity. The trustees utilise the services of a grants officer to assist with the review and presentation of applications for support at the quarterly meetings of the trustees. Since the end of the year under review the trust has became a member of the Association of Charitable Foundations, a membership organisation for trusts and foundations.
Trustees are appointed from time to time by the existing trustees based on identifiable skills or experience requirements. New trustees are encouraged to read and understand the Constitution of the charity as well as it’s grant-making and investment policies. The workings and organisation of the charity will be explained by existing trustees. If any trustees wish to attend courses to broaden their knowledge this is available.
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the trust and are satisfied that systems and procedures are in place to mitigate the exposure to major risks.
Examples of some major risks and the action that the trustees have considered are set out below:
- Poor investment performance – there is an adequate buffer within the capital account and the investment managers are managing their portfolios and consequently the risk over the long term.
- Property damage - Insurance policies are maintained.
- Misuse of grants – monitoring and feedback reports together with due diligence.
3
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Future developments**
The trustees will continue to award grants to suitable organisations in future years in accordance with the grant making policy.
## **Reference and administrative information**
|Trustees:|Sarah Hill|
|---|---|
||Philip Thomas|
||Michael Norrie|
||Jennifer Thomas|
||Paul Marsh|
||Sarah Playle|
||Tony Hooper|
||Robert Blundell (appointed 14 May 2020)|
|Charity registered number:|1171822|
|Principal address:|PO Box 506|
||Ramsgate|
||CT11 1DZ|
|Independent auditors:|Lindeyer Francis Ferguson Limited|
||North House|
||198 High Street|
||Tonbridge TN9 1BE|
|Bankers:|CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling ME19 4JQ|
|Investment managers:|CCLA|
||Senator House|
||85 Queen Victoria Street|
||London EC4V 4ET|
||Rathbone Brothers Plc|
||8 Finsbury Circus,|
||London EC2M 7AZ|
|Property Agents:|Ellis & Co|
||93 High Street|
||Tonbridge|
||TN9 1DR|
4
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Statement of trustees’ responsibilities**
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales required 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 applicable of resources of the charity for that period. In preparing those financial statements the trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles of the Charities SORP (FRS 102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK 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 proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the trustees on 6 January 2022 and signed on their behalf by:
## **Mr P Thomas Trustee**
5
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Opinion**
We have audited the financial statements of The Lawson Trust CIO (the charity) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
6
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the books of account; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of the trustees**
As explained more fully in the Statement of trustees’ Responsibilities set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements I respect of irregularities, including fraud. The extend to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- We obtained an understanding of the legal and regulatory framework applying to the charity, and the procedures that management adopt to ensure compliance, including those relating to the Charities SORP FRS 102;
- We assigned an engagement team to the audit with particular familiarity in dealing with charity and notfor-profit organisations;
- We assessed the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud might occur;
- We obtained the Board of Trustee’s assessment of fraud risk and enquired as to any known or suspected instances of fraud; and
- We designed and performed audit procedures to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations, including enquiry of the trustees, review of minutes and correspondence, and review of the completeness and accuracy of disclosures made in the financial statements.
7
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2021**_
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Lindeyer Francis Ferguson Limited**
Statutory Auditor North House 198 High Street Tonbridge Kent TN9 1BE
Date: 10 January 2022
Lindeyer Francis Ferguson Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor under section 1212 of the Companies Act 2006.
8
## **THE LAWSON TRUST CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Note**
**Income from:**
Investments:
Rental income
Dividends received
Interest receivable
**Total income**
**Expenditure on:**
Raising funds
**3**
Charitable activities
**4**
**Total expenditure**
Net gains / (losses) on investments:
Realised
Unrealised
**6/7**
**Net income / (expenditure)**
**Transfer between funds**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Total funds carried forward|**Total**
**General**
**Capital Unrestricted**
**Fund**
**Account**
**Funds**
**31 Mar 2021**
**31 Mar 2021**
**31 Mar 2021**
**£**
**£**
**£**
219,418
-
219,418
377,066
-
377,066
17,537
-
17,537
614,021
-
614,021
94,633
-
94,633
427,183
-
427,183
521,816
-
521,816
573,918
-
573,918
-
2,441,495
2,441,495
666,123
2,441,495
3,107,618
( 100,000)
100,000
-
566,123
2,541,495
3,107,618
66,715
18,438,776
18,505,491
632,838
20,980,271
21,613,109|**Total**
**Unrestricted**
**Funds**
**31 Mar 2020**
**£**
241,316
381,814
30,538|
|---|---|---|
|||653,668|
|||87,146
1,702,064|
|||1,789,210|
|||169,524
( 723,679)|
|||( 1,689,697)
-|
|||( 1,689,697)|
|||20,195,188|
|||18,505,491|
9
## **THE LAWSON TRUST CIO**
## **BALANCE SHEET** _**AS AT 31 MARCH 2021**_
|**Note**
**Fixed assets**
Investment property
**6**
Investments
**7**
**Current assets**
Debtors falling due after more than
one year
**8**
Debtors falling due within one year
**8**
Cash at bank and in hand
**Creditors:**amounts falling due within
one year
**9**
**Net current assets**
**Creditors:**amounts falling due after
more than one year
**9**
**Total net assets**
**Charity funds**
Unrestricted funds
**10**
Total funds|**31 Mar 2021**
**£**
**£**
5,815,000
15,476,115
21,291,115
500,000
171,725
292,354
964,079
( 142,085)
821,994
( 500,000)
21,613,109
21,613,109
21,613,109|**31 Mar 2020**
**£**
**£**
5,836,000
12,464,040
18,300,040
600,000
169,421
375,700
1,145,121
( 339,670)
805,451
( 600,000)
18,505,491
18,505,491
18,505,491|**31 Mar 2020**
**£**
**£**
5,836,000
12,464,040
18,300,040
600,000
169,421
375,700
1,145,121
( 339,670)
805,451
( 600,000)
18,505,491
18,505,491
18,505,491|
|---|---|---|---|
|||||
||||18,505,491|
||||18,505,491|
||||18,505,491|
The financial statements were approved by the Trustees on 6 January 2022 and signed on their behalf by:
## **Mr M A Norrie**
**Mr P Thomas**
10
## **THE LAWSON TRUST CIO**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 721,705)
( 1,580,463)
**Cash flows from investing activities:**
Dividends, interest and rent received
614,021
653,668
Acquisition of investment property
( 14,783)
-
Purchases of investments
( 3,660,880)
( 2,834,510)
Sales of investments
3,476,789
3,296,087
Net cash provided by investing activities
415,147
1,115,245
**Change in cash and cash equivalents**
**( 306,558)**
**( 465,218)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
375,700
1,190,535
Cash held within investment portfolio
396,498
46,881
772,198
1,237,416
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
292,354
375,700
Cash held within investment portfolio
173,286
396,498
**465,640**
**772,198**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
Net income/(expenditure) for the year
3,107,618
( 1,689,697)
_As per the Statement of Financial Activities_
Adjustments for:
Net (gains)/losses on investments
( 3,015,413)
554,155
Dividends, interest and rent receivable
( 614,021)
( 653,668)
Decrease in debtors
97,696
95,748
(Decrease)/increase in creditors
( 297,585)
112,999
( 3,829,323)
109,234
Net cash used in operating activities
( 721,705)
( 1,580,463)|**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 721,705)
( 1,580,463)
**Cash flows from investing activities:**
Dividends, interest and rent received
614,021
653,668
Acquisition of investment property
( 14,783)
-
Purchases of investments
( 3,660,880)
( 2,834,510)
Sales of investments
3,476,789
3,296,087
Net cash provided by investing activities
415,147
1,115,245
**Change in cash and cash equivalents**
**( 306,558)**
**( 465,218)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
375,700
1,190,535
Cash held within investment portfolio
396,498
46,881
772,198
1,237,416
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
292,354
375,700
Cash held within investment portfolio
173,286
396,498
**465,640**
**772,198**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
Net income/(expenditure) for the year
3,107,618
( 1,689,697)
_As per the Statement of Financial Activities_
Adjustments for:
Net (gains)/losses on investments
( 3,015,413)
554,155
Dividends, interest and rent receivable
( 614,021)
( 653,668)
Decrease in debtors
97,696
95,748
(Decrease)/increase in creditors
( 297,585)
112,999
( 3,829,323)
109,234
Net cash used in operating activities
( 721,705)
( 1,580,463)|**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 721,705)
( 1,580,463)
**Cash flows from investing activities:**
Dividends, interest and rent received
614,021
653,668
Acquisition of investment property
( 14,783)
-
Purchases of investments
( 3,660,880)
( 2,834,510)
Sales of investments
3,476,789
3,296,087
Net cash provided by investing activities
415,147
1,115,245
**Change in cash and cash equivalents**
**( 306,558)**
**( 465,218)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
375,700
1,190,535
Cash held within investment portfolio
396,498
46,881
772,198
1,237,416
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
292,354
375,700
Cash held within investment portfolio
173,286
396,498
**465,640**
**772,198**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2021_**
**_2021_**
**_2020_**
**_2020_**
**_£_**
**_£_**
**_£_**
**_£_**
Net income/(expenditure) for the year
3,107,618
( 1,689,697)
_As per the Statement of Financial Activities_
Adjustments for:
Net (gains)/losses on investments
( 3,015,413)
554,155
Dividends, interest and rent receivable
( 614,021)
( 653,668)
Decrease in debtors
97,696
95,748
(Decrease)/increase in creditors
( 297,585)
112,999
( 3,829,323)
109,234
Net cash used in operating activities
( 721,705)
( 1,580,463)|
|---|---|---|
||||
|||( 1,580,463)|
11
**THE LAWSON TRUST CIO**
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Status**
The Lawson Trust CIO is a charitable incorporated organisation (CIO) registered with the Charity Commission in England and Wales. Its principal address is PO Box 506, Ramsgate, CT11 1DZ.
## **2 Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **2.1 Basis of preparation**
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)" (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Lawson Trust CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern and therefore the going concern basis of accounting has been adopted.
The financial statements are presented in pounds sterling and rounded to the nearest pound.
## **2.2 Income**
Income is recognised when the trust has entitlement to the income, it is probable that the income will be received and the amount can be measured reliably.
Rental income is recognised over the rental period to which it relates. Dividends are recognised on receipt and interest is recognised in the period in which it is earned.
12
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **THE LAWSON TRUST CIO**
## **2.3 Expenditure**
Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably.
Expenditure has been classified under headings that aggregate all costs related to the category and includes irrecoverable VAT. The charity has one activity.
Grants payable are recognised as liabilities when communicated in writing to the recipient, except where the offer is conditional and fulfilment of the conditions is not considered probable, or where meeting the conditions is not within the control of the recipient. In these circumstances, the grant is recognised when the conditions have been met. Commitments for performance related grants are recognised to the extent that the performance related criteria are met.
Support costs are those relating to functions which assist the work of the charity but do not directly relate to its activities.
Governance costs are those costs incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
## **2.4 Fund accounting**
Unrestricted funds can be used for the charitable objectives at the discretion of the trustees. The capital account is a designated fund representing the charity's capital funds to be held for generation of income which is then expended on the charitable objectives.
## **2.5 Investments**
Fixed asset investments are initially recognised at their transaction cost and are subsequently measured at fair value at each reporting date, with changes in fair value recognised in the statement of financial activities. Unlisted investments are held at cost less impairment.
## **2.6 Investment property**
Investment properties are stated in the balance sheet at fair value. Fair value is estimated by the trustees based on a review of current listing prices and recent sale prices for similar properties in the area. This is the main accounting estimate requiring significant judgement to be exercised. Changes in fair value are recognised in the statement of financial activities.
## **2.7 Financial instruments**
Financial instruments other than investments qualify as basic financial instruments. Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in the statement of financial activities.
Long-term funding commitments are discounted when the discounting is considered to be material.
13
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **THE LAWSON TRUST CIO**
## **2.8 Cash at bank and in hand**
Cash at bank and in hand comprises cash and short-term highly liquid investments with a maturity of three months or less from the date of opening the deposit or similar account.
## **3 Expenditure on raising funds**
|Rental properties direct costs
Investment management costs
**Expenditure on charitable activities**
**General**
**Fund**
**2021**
**£**
Distributions and grants
401,490
Allocation of support costs (Note 5)
25,693
427,183
**Support costs**
Administrative expenses
Governance costs:
Audit fees|**Capital**
**Account**
**2021**
**£**
-
-
-|**2021**
**£**
47,721
46,912
94,633
**Total**
**2021**
**£**
401,490
25,693
427,183
**2021**
**£**
18,253
7,440
25,693|**2020**
**£**
42,489
44,657|
|---|---|---|---|
||||87,146|
||||**Total**
**2020**
**£**
1,664,863
37,201|
||||1,702,064|
||||**2020**
**£**
29,761
7,440|
||||37,201|
## **4 Expenditure on charitable activities**
## **5 Support costs**
14
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **6 Investment property**
|**Market value**
At 1 April 2020
Additions
Unrealised change in market value
At 31 March 2021|**Freehold**
**property**
**£**
5,836,000
14,783
( 35,783)|
|---|---|
||5,815,000|
The freehold property was valued at 31 March 2021 by the Ellis & Co, the trusts' property managers, on an open market existing use basis.
The historic cost of the investment properties is £5,439,798 (2020: £5,425,015).
## **7 Investments**
|**At cost or valuation**
At 1 April 2020
Additions at cost
Disposals at carrying value
Unrealised change in market value
Movement in capital account balance|**Listed**
**investments**
**£**
12,463,560
3,660,880
( 2,902,871)
2,477,278
( 223,212)
15,475,635|**Unlisted**
**investments**
**£**
480
-
-
-
480|**Total**
**£**
12,464,040
3,660,880
( 2,902,871)
2,477,278
( 223,212)|
|---|---|---|---|
||||15,476,115|
## **8 Debtors**
|**Debtors falling due after more than one year**
Loan receivable
**Debtors falling due within one year**
Loan receivable
Prepayments and other debtors|**2021**
**£**
500,000
100,000
71,725
171,725
671,725|**2020**
**£**
600,000|
|---|---|---|
|||100,000
69,421|
|||169,421|
|||769,421|
Interest is charged on the loan receivable at 2.5% above the Bank of England base rate. Each year £100,000 will be repaid on the anniversary date of the loan.
15
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **9 Creditors**
|**Creditors**|||
|---|---|---|
|**Creditors falling due after more than one year**
Funding commitment
**Creditors falling due within one year**
Funding commitment
Accruals and other creditors|**2021**
**£**
500,000
100,000
42,085
142,085
642,085|**2020**
**£**
600,000|
|||315,000
24,670|
|||339,670|
|||939,670|
The funding commitment includes a Deed of Grant which is linked to the loan receivable shown in Note 8. Each year a grant of £100,000 will be made and this will be satisfied by the repayment of the same amount of the loan receivable. The fourth tranche has been released in the current period.
The commitment has been recognised as although there are conditions attached, these are within the control of the donee charity and it is probable that the conditions will be met. If the donee charity defaults on the conditions, the commitment will be derecognised and the loan receivable will become immediately due.
## **10 Movement in funds**
|_Current period_
Unrestricted funds:
General fund
Capital account
_Preceding period_
Unrestricted funds:
General fund
Capital account|**Brought**
**forward**
**£**
66,715
18,438,776
18,505,491
145,086
20,050,102
20,195,188|**Net**
**movement**
**£**
666,123
2,441,495
3,107,618
33,982
( 1,723,679)
( 1,689,697)|**Transfers**
**£**
( 100,000)
100,000
-
( 112,353)
112,353
-|**Carried**
**forward**
**£**
632,838
20,980,271|
|---|---|---|---|---|
|||||21,613,109|
|||||66,715
18,438,776|
|||||18,505,491|
16
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **10 Movement in funds** _**continued**_
Net movement comprises:
|_Current period_
Unrestricted funds:
General fund
Capital account
_Preceding period_
Unrestricted funds:
General fund
Capital account|**Income**
**£**
614,021
-
614,021
653,668
-
653,668|**Expenditure**
**£**
( 521,816)
-
( 521,816)
( 789,210)
( 1,000,000)
( 1,789,210)|**Gains /**
**(losses)**
**£**
573,918
2,441,495
3,015,413
169,524
( 723,679)
( 554,155)|**Total**
**£**
666,123
2,441,495|
|---|---|---|---|---|
|||||3,107,618|
|||||33,982
( 1,723,679)|
|||||( 1,689,697)|
The Capital Account Fund represents the realised value of the original funds settled together with any unrealised gains or losses on investments. In addition, funds are used for one off donations which are considered to be of a capital nature.
Transfers represent the yearly transfer of the £100,000 donation to Rapport Housing & Care.
The funding commitment referred to in Note 9 has been recognised in the Capital Account as this is a long term funding arrangement. Each year, the annual grant instalment will be transferred from the General Fund to the Capital Fund to reflect the use of general reserves in satisfying this commitment over time.
## **11 Related party transactions**
The key management personnel of the charity are considered to be the trustees.
No trustees received reimbursement for expenses in the current period. In the prior period £375 was paid in relation to reimbursed meeting expenses.
Neither the trustees, nor any person connected with them, received any remuneration or benefits in the current or preceding period.
17
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **General Fund**
The following individual payments were made from the general fund during the year;
|Action Medical Research
Ambitious about Autism
Ashford Borough Citizen Advice
Asthma Relief
Barnardo's
BIBIC
Bowel Cancer UK
Breast Cancer Now
Brighton Dome And Festival Ltd
British Disabled Angling Association
British Liver Trust
Butterfly Conservation
Canine Partners
Carers UK
Child Autism UK
Childhood Eye Cancer Trust
Children with Cystic Fibrosis Dream Holidays
Children's Liver Disease Foundation
Citizens Advice in North & West Kent
Citizens Advice Tunbridge Wells & District
CLIC Sargent Charity
Combat Stress
Construction Industry Trust for Youth
Coram
Create (Arts) Limited
Criminon UK
Crohn's & Colitis UK
Dame Vera Lynn Children's Charity
Dandelion Time
De La Warr Pavillion Charitable Trust
Demelza House Children's Hospice
Designability Charity Ltd
Disability Challengers
Disasters Emergency Committee
RBL Poppy appeal
Domestic Abuse Volunteer Support Services
East Kent Rape Crisis Centre
Elizabeth Finn Care
Ellenor
Subtotal|**2021**
**£**
-
2,500
-
-
5,000
-
-
-
-
-
-
-
-
2,500
3,000
-
-
-
10,000
2,500
5,000
2,000
5,000
3,000
3,000
13,000
4,000
7,500
-
2,500
-
5,000
7,000
-
2,000
-
84,500|**2020**
**£**
5,000
-
5,000
5,000
-
3,000
500
5,000
5,000
5,000
5,000
5,000
5,000
2,500
-
5,000
5,000
5,000
5,000
-
2,000
5,000
-
-
-
-
-
13,000
-
10,000
4,750
3,000
-
-
5,000
-
1,000
50,000|
|---|---|---|
|||164,750|
18
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**General Fund**
Brought forward
Emmaus Brighton and Hove
Farms for City Children
Fields in Trust
Fire Fighters Charity
Fort Amherst Heritage Trust
Friends of All Saints Church
Frozen Lights
Global Feedback Ltd
Happy Days Children's Charity
Hearing Dogs for Deaf People
Heart of Kent Hospice
Hope for Tomorrow
Horatio's Garden
Huntington's Disease Association
Hypo Hounds
Imago Dei Prison Ministry
InterAct Stroke Support
Jamie's Farm
Jigsaw (South East)
Jubilee Sailing Trust
JustDifferent
Keep Playing
Kent Community Foundation
Kent Community Foundation - Match Funding
Lennox Children's Cancer Fund
Level Water
Lifelites
Listening Books
Little Gate Farm
Little Hearts Matter
London Wheelchair Rugby Club
LUPUS UK
Macmillan Cancer Support
Marie Curie
Medical Engineering Resource Unit (MERU)
Microphthalmia, Anophthalmia and Coloboma Support
Missing People Ltd
Motor Neurone Disease Association
Multiple Sclerosis Trust
Subtotal|**2021**
**£**
84,500
5,000
-
2,000
5,000
4,100
4,000
5,000
-
-
5,000
40,000
-
3,000
3,000
5,000
-
-
-
5,000
-
-
-
-
-
5,000
3,000
2,500
3,000
-
2,000
-
1,000
2,500
-
6,670
-
2,500
-
-
198,770|**2020**
**£**
164,750
-
-
-
-
-
-
-
5,000
2,000
5,000
40,000
6,000
-
-
-
1,000
1,500
5,000
-
5,000
2,000
5,000
15,000
1,000,000
5,000
-
-
-
20,000
4,000
-
-
5,000
5,000
-
1,000
-
5,000
2,500|
|---|---|---|
|||1,304,750|
19
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **General Fund**
|Brought forward
Muscular Dystrophy Group of Great Britain and Northern Ireland
Music in Hospitals And Care
Myaware
National Society for the Prevention of Cruelty to Children
National Youth Choirs of Great Britain
Nexus Foundation Special School
Odyssey Project Limited
Place2Be
Porchlight
Prisoners' Advice Service
Rainbow Trust Children's Charity
Ready for Good
Reverse Rett
Revitalise Respite Holidays
Ronald Mcdonald House Charities
Royal British Legion Industries Ltd.
Royal National Lifeboat Institution
Royal Society for the Protection of Birds
Safe Haven
Sense, The National Deafblind & Rubella Association
Serv Surrey and South London Blood Runners
Serve on
Shelterbox
South East Cancer Help Centre Limited
Spinal Muscular Atrophy UK
St George's Community Children's Project Ltd
St Johns Ambulance
St John's School & College
St Wilfrid's Hospice (South Coast) Limited
St Wilfrid's Hospice (Eastbourne)
Sunny Days Children's Fund
Sussex Community Foundation
Tall Ships Youth Trust
Target Ovarian Cancer
Taylor Made Dreams
The Aldingbourne Trust
The British Stammering Association
The Chaseley Trust
The David Shepherd Wildlife Foundation
The Douglas Bader Foundation
Subtotal|**2021**
**£**
198,770
-
-
2,000
-
2,500
-
2,500
-
5,000
-
2,500
-
-
3,820
-
-
20,000
-
30,000
2,500
-
20,000
5,000
5,000
-
4,000
-
4,000
2,500
3,000
3,000
-
-
-
4,000
-
2,500
-
-
-
322,590|**2020**
**£**
1,304,750
1,500
2,000
-
7,000
2,500
11,588
-
5,175
-
5,000
-
5,000
30,000
-
4,800
25,000
20,000
2,000
30,000
-
500
25,000
-
-
2,000
3,000
-
-
5,000
-
15,000
3,000
3,500
-
3,000
5,000
1,450
5,000|
|---|---|---|
|||1,527,763|
20
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**General Fund**
Brought forward
The English Heritage Trust
The Eve Appeal
The Girls' Network
The Grace Eyre Foundation
The Guide Dogs for the Blind Association
The Kenward Trust
The Living Painting Trust
The Lord's Taverners
The Marlow Trust
The Martletts Hospice Ltd
The Mascular Disease Society
The Maypole Project
The National Literacy Trust
The National Police Community Trust
The People's Dispensary for Sick Animals
The PSP Association
The Reading List Foundation
The Royal National College for the Blind
The Salvation Army Food Bank
The Separated Child Foundation
The Silver Line Helpline
The Sussex Beacon
The Wheelyboat Trust
Together for Short Lives
Together Kent
Towner
Tree of Hope
Tunbridge Wells & District Citizens Advice Bureau
Turner Contemporary
Turning Tides Homelessness
University of Greenwich - Employability and Careers Services
University of Kent
Villiers Park Educational Trust
VocalEyes
Volunteering Matters
Volunteer Reading Help
West Kent YMCA
Willow Foundation
Winston's Wish
YMCA DownsLink Group
Subtotal|**2021**
**£**
322,590
3,000
-
5,000
-
5,000
-
2,500
3,400
-
-
-
10,000
-
-
-
2,500
-
2,500
2,000
-
-
-
-
20,000
-
5,000
-
-
-
-
5,000
5,000
-
5,000
-
-
3,000
-
-
401,490|**2020**
**£**
1,527,763
-
25,000
-
2,500
-
5,000
5,000
-
5,000
5,000
5,000
-
8,000
3,000
3,000
-
-
2,000
-
-
2,500
2,500
5,000
5,000
-
5,000
-
10,000
10,000
5,000
2,000
-
2,500
2,000
-
5,100
5,000
3,000
2,000
2,000|
|---|---|---|
|||1,664,863|
21