**Charity number: 1171822**
## **THE LAWSON TRUST CIO**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
_**FOR THE YEAR ENDED**_
**31 MARCH 2023**
## **THE LAWSON TRUST CIO**
## **CONTENTS**
|Trustees’ report|1|
|---|---|
|Independent auditors’ report|6|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cashflows|12|
|Notes to the financial statements|13|
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees present their annual report together with the financial statements for the year ended 31 March 2023. 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. The trustees aim to distribute approximately 4% of the capital value of the fund at the beginning of each year.
In the year under review grants of £616,800 were paid out as compared to £1,180,158 in the previous year. (The latter figure included an exceptional grant of £500,000 to the RBLI Centenary Appeal.)
Grants of up to £10,000 have been made to some 96 organisations covering the full range of categories set out above and totalling £501,800. A further 5 organisations have received larger grants totalling £115,000. Examples of the purpose of these larger grants are set out below:
- Continued support to Kent based Demelza House Children’s Hospice
- A further grant to Gynaecology Cancer Research toward their rare cancer research fund
- Support to the Kent Community Fund Cost of Living Appeal
- A grant to the Kent, Surrey & Sussex Air Ambulance in support of research into defibrillator despatch drone technology.
- A grant towards the new RNLI Station at Dover.
The trustees continue to visit selected recipients. They find this involvement with the organisation to be rewarding and to see and hear first-hand the benefits the grants have made. In addition, they receive the feedback reports as mentioned above which give excellent insights into the benefits that the grants make to the charities.
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.
1
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Achievements and performance**
These accounts are for the year to 31 March 2023.
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.
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. At 31 March 2023 the Lawson Endowment for Kent Fund had a value of £5,516,823 and the Lawson Endowment for Sussex was valued at £2,492,847 both of which are more than the funds endowed in 2016 and 2017 respectively even after taking into account the grants made in that period. The two funds have enabled £390,221 to be given to grassroot organisations in the two counties during the year ended 31 March 2023.
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. We are delighted that with the match funding from other fund-holders this is now worth £2,237,135 and has enabled grants to the value of £335,250 to be paid to 102 deserving causes.
Since 2016, the Charity has had a long-term debtor and a long-term grant commitment with Rapport Housing for the purpose of the construction of Lawson House, a facility for retired veterans. Connected agreements were in place for the loan to Rapport and the commitment to make gifts to match with each balance being reduced by £100,000 annually. Following financial difficulties, in the period February 2023 to June 2023, Rapport was taken over by a new provider who subsequently settled the outstanding loan on the agreement that the balance of the grant monies was paid over. There was no actual financial gain or loss to the Trust and reflected the unwinding of the two connected agreements. This was agreed and finalised in June 2023.
## **Financial review**
In the year under review financial markets suffered from the uncertainties arising from the war in Ukraine as global funds looked to recover from the financial impacts of Covid 19, given such an uncertain backdrop the trustees are pleased with the performance of the trust’s investments overall.
As reported in the Statement of Financial Activities the Charity recorded a deficit for the year of £665,022 (2022 – surplus of £734,022). The gross income for the year amounted to £720,055 as compared to £664,672 for the year to 31 March 2022. Expenditure for the year was £793,193 (2022 - £1,325,336) including grants awarded of £616,800 (2022 - £1,180,158). The result includes realised and unrealised losses on investments of £591,884 (2022 – gains of £1,394,686).
The Balance Sheet on page 11 shows that the Charity Funds total £21,682,109 which are divided between capital account (£21,554,945) and general fund (£127,164). 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
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
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 residential property portfolio has been valued by our managing agents at the 31 March 2023 and the trustees are able to report that the value amounts to £6,510,000. 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 2023. These reserves provide the funds to enable the charity to function for a six-month period which the trustees estimate at £75,000. 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 2023 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 trust administrator to assist with the review and presentation of applications for support at the quarterly meetings of the trustees. The charity is 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 its 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.
## **Future developments**
The trustees will continue to award grants to suitable organisations in future years in accordance with the grant making policy.
3
## **THE LAWSON TRUST CIO**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Reference and administrative information**
|Trustees:|Sarah Hill||
|---|---|---|
||Philip Thomas|_(Resigned 15th November 2023)_|
||Michael Norrie||
||Jennifer Thomas|_(Resigned 5th October 2022)_|
||Paul Marsh||
||Sarah Playle||
||Tony Hooper||
||Robert Blundell||
||Katharine Lewis|_(Appointed 2nd November 2022)_|
|Charity registered number:|1171822||
|Principal address:|Riverside Business Centre||
||River Lawn Road||
||Tonbridge||
||Kent||
||TN9 1EP||
|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 2023**_
## **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 29 January 2024 and signed on their behalf by:
## **Michael Norrie**
## **Trustee, Chairman**
5
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Opinion**
We have audited the financial statements of The Lawson Trust CIO (the charity) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 2023 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**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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 2023**_
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to 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 accounting records and returns; 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 under section 154 or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the charity, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Charities Act 2011 and the Charities SORP FRS 102.
We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the charity’s operations and to avoid material penalties, including health and safety law, property rental laws, GDPR and data protection regulations.
7
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2023**_
Having reviewed the laws and regulations applicable to the charity, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:
- Selected a team with sector experience to perform the audit;
- Obtained an understanding of the charity’s procedures for ensuring compliance with laws and regulations;
- Obtained and reviewed internal policy and procedure documents;
- Made enquiries of management and the trustees regarding whether they were aware of any actual or suspected incidences of non-compliance with laws and regulations;
- Obtained and reviewed meeting minutes;
- Reviewed legal expenses accounts for indications of any possible non-compliance; and
- Reviewed the completeness and accuracy of any disclosures made in the financial statements.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud might occur. This was performed by:
- Making an assessment of the charity’s control environment, systems and controls including identifying any weaknesses and considering the risk of management override of controls;
- Assessing the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud could occur;
- Considering whether there are any incentives or opportunities for management to manipulate financial results;
- Obtaining and evaluating the trustees’ assessment of the risk of fraud, and enquiring as to whether they are aware of any actual or suspected incidences of fraud;
- Reviewing the accounting policies and accounting estimates for signs of management bias; and
- Identifying key risks relating to irregularities as relating to revenue recognition including fraud or management override of controls, completeness of funding commitments, estimates in relation to the investment property fair values, and changes to terms of the agreement with Rapport Housing Association.
We then designed audit procedures in response to the risks identified, including performing substantive testing on all material income streams, reviewing journal entries and accounting estimates, corroborating the explanations and assumptions underlying the estimates, reviewing meeting minutes and post year end transactions to confirm the completeness of funding commitments and reviewing correspondence with Rapport to understand the position of the agreement at the year end and beyond.
The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 and the regulations made under section 154. Our audit work has been undertaken
8
## **THE LAWSON TRUST CIO**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE LAWSON TRUST CIO** _**FOR THE YEAR ENDED 31 MARCH 2023**_
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.
## **Amy Healey FCA CTA DChA Senior Statutory Auditor**
For and on behalf of **Lindeyer Francis Ferguson Limited Statutory Auditor** North House 198 High Street Tonbridge Kent TN9 1BE
Date: 29 January 2024
9
## **THE LAWSON TRUST CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Note**
**Income from:**
Investments:
Rental income
Dividends received
Interest receivable
**Total income**
**Expenditure on:**
Raising funds
**3**
Charitable activities
**4**
**Total expenditure**
Net (losses) / gains on investments:
Realised
Unrealised
**6/7**
**Net (expenditure) / income**
**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**
**2023**
**2023**
**2023**
**£**
**£**
**£**
267,271
-
267,271
431,736
-
431,736
21,048
-
21,048
720,055
-
720,055
118,603
-
118,603
674,590
-
674,590
793,193
-
793,193
( 133,433)
-
( 133,433)
-
( 458,451)
( 458,451)
( 206,571)
( 458,451)
( 665,022)
( 229,821)
229,821
-
( 436,392)
( 228,630)
( 665,022)
563,556
21,783,575
22,347,131
127,164
21,554,945
21,682,109|**Total**
**Unrestricted**
**Funds**
**2022**
**£**
240,690
408,915
15,067|
|---|---|---|
|||664,672|
|||104,836
1,220,500|
|||1,325,336|
|||136,980
1,257,706|
|||734,022
-|
|||734,022|
|||21,613,109|
|||22,347,131|
10
## **THE LAWSON TRUST CIO**
## **BALANCE SHEET** _**AS AT 31 MARCH 2023**_
|**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|**2023**
**£**
**£**
6,510,000
14,882,990
21,392,990
-
490,633
234,466
725,099
( 435,980)
289,119
-
21,682,109
21,682,109
21,682,109|**2022**
**£**
**£**
6,250,000
16,139,591
22,389,591
400,000
176,062
163,699
739,761
( 382,221)
357,540
( 400,000)
22,347,131
22,347,131
22,347,131|**2022**
**£**
**£**
6,250,000
16,139,591
22,389,591
400,000
176,062
163,699
739,761
( 382,221)
357,540
( 400,000)
22,347,131
22,347,131
22,347,131|
|---|---|---|---|
|||||
||||22,347,131|
||||22,347,131|
||||22,347,131|
The financial statements were approved by the Trustees on 29 January 2024 and signed on their behalf by:
## **Mr M A Norrie**
11
## **THE LAWSON TRUST CIO**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 1,054,005)
( 1,089,535)
**Cash flows from investing activities:**
Dividends, interest and rent received
720,055
664,672
Purchases of investments
( 1,152,190)
( 1,460,064)
Sales of investments
1,523,644
1,820,842
Net cash provided by investing activities
1,091,509
1,025,450
**Change in cash and cash equivalents**
**37,504**
**( 64,085)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
163,699
292,354
Cash held within investment portfolio
237,856
173,286
401,555
465,640
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
234,466
163,699
Cash held within investment portfolio
204,593
237,856
**439,059**
**401,555**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
Net (expenditure) / income for the year
( 665,022)
734,022
_As per the Statement of Financial Activities_
Adjustments for:
Net losses / (gains) on investments
591,884
( 1,394,686)
Dividends, interest and rent receivable
( 720,055)
( 664,672)
Decrease in debtors
85,429
95,663
(Decrease) / increase in creditors
( 346,241)
140,138
( 388,983)
( 1,823,557)
Net cash used in operating activities
( 1,054,005)
( 1,089,535)|**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 1,054,005)
( 1,089,535)
**Cash flows from investing activities:**
Dividends, interest and rent received
720,055
664,672
Purchases of investments
( 1,152,190)
( 1,460,064)
Sales of investments
1,523,644
1,820,842
Net cash provided by investing activities
1,091,509
1,025,450
**Change in cash and cash equivalents**
**37,504**
**( 64,085)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
163,699
292,354
Cash held within investment portfolio
237,856
173,286
401,555
465,640
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
234,466
163,699
Cash held within investment portfolio
204,593
237,856
**439,059**
**401,555**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
Net (expenditure) / income for the year
( 665,022)
734,022
_As per the Statement of Financial Activities_
Adjustments for:
Net losses / (gains) on investments
591,884
( 1,394,686)
Dividends, interest and rent receivable
( 720,055)
( 664,672)
Decrease in debtors
85,429
95,663
(Decrease) / increase in creditors
( 346,241)
140,138
( 388,983)
( 1,823,557)
Net cash used in operating activities
( 1,054,005)
( 1,089,535)|**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
**Note**
**Cash flows from operating activities:**
Net cash used in operating activities
**A**
( 1,054,005)
( 1,089,535)
**Cash flows from investing activities:**
Dividends, interest and rent received
720,055
664,672
Purchases of investments
( 1,152,190)
( 1,460,064)
Sales of investments
1,523,644
1,820,842
Net cash provided by investing activities
1,091,509
1,025,450
**Change in cash and cash equivalents**
**37,504**
**( 64,085)**
**Cash and cash equivalents at the**
**beginning of the year**
Cash held at bank
163,699
292,354
Cash held within investment portfolio
237,856
173,286
401,555
465,640
**Cash and cash equivalents at the end**
**of the year**
Cash held at bank
234,466
163,699
Cash held within investment portfolio
204,593
237,856
**439,059**
**401,555**
**A. Reconciliation of net income to net cash flow used in operating activities**
**_2023_**
**_2023_**
**_2022_**
**_2022_**
**_£_**
**_£_**
**_£_**
**_£_**
Net (expenditure) / income for the year
( 665,022)
734,022
_As per the Statement of Financial Activities_
Adjustments for:
Net losses / (gains) on investments
591,884
( 1,394,686)
Dividends, interest and rent receivable
( 720,055)
( 664,672)
Decrease in debtors
85,429
95,663
(Decrease) / increase in creditors
( 346,241)
140,138
( 388,983)
( 1,823,557)
Net cash used in operating activities
( 1,054,005)
( 1,089,535)|
|---|---|---|
||||
|||( 1,089,535)|
12
**THE LAWSON TRUST CIO**
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **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 Riverside Business Centre, River Lawn Road, Tonbridge, Kent, TN9 1EP.
## **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.
13
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **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 charitable 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 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 charity's property managers 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.
14
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **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**
**2023**
**£**
Distributions and grants
616,800
Allocation of support costs (Note 5)
57,790
674,590
**Support costs**
Administrative expenses
Governance costs:
Audit fees|**Capital**
**Account**
**2023**
**£**
-
-
-|**2023**
**£**
73,608
44,995
118,603
**Total**
**2023**
**£**
616,800
57,790
674,590
**2023**
**£**
48,610
9,180
57,790|**2022**
**£**
53,587
51,249|
|---|---|---|---|
||||104,836|
||||**Total**
**2022**
**£**
1,180,158
40,342|
||||1,220,500|
||||**2022**
**£**
32,662
7,680|
||||40,342|
## **4 Expenditure on charitable activities**
## **5 Support costs**
15
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **6 Investment property**
|**Investment property**||
|---|---|
|**Market value**
At 1 April 2022
Unrealised change in market value
At 31 March 2023|**Freehold**
**property**
**£**
6,250,000
260,000|
||6,510,000|
The freehold property was valued at 31 March 2023 by the Ellis & Co, the Trust's property managers, on an open market existing use basis.
The historic cost of the investment properties is £5,439,798 (2022: £5,439,798)
## **7 Investments**
|**Investments**|||
|---|---|---|
|**At cost or valuation**
At 1 April 2022
Additions at cost
Disposals at carrying value
Unrealised change in market value
Movement in capital account balance|**2023**
**£**
16,139,591
1,152,190
( 1,657,077)
( 718,451)
( 33,263)
14,882,990|**2022**
**£**
15,476,115
1,460,064
( 1,683,862)
822,706
64,568|
|||16,139,591|
## **8 Debtors**
|**Debtors falling due after more than one year**
Loan receivable
**Debtors falling due within one year**
Loan receivable
Prepayments and other debtors|**2023**
**£**
-
400,000
90,633
490,633
490,633|**2022**
**£**
400,000|
|---|---|---|
|||100,000
76,062|
|||176,062|
|||576,062|
Interest is charged on the loan receivable at 2.5% above the Bank of England base rate. The loan was repaid in full in June 2023 and the remaining Grant obligation settled in a back to back transaction (Note 9).
16
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**9**
**Creditors**
**Creditors falling due after more than one year**
Funding commitments
**Creditors falling due within one year**
Funding commitments
Accruals and other creditors|**2023**
**£**
-
400,000
35,980
435,980
435,980|**2022**
**£**
400,000|
|---|---|---|
|||352,500
29,721|
|||382,221|
|||782,221|
The funding commitment includes a Deed of Grant which is linked to the loan receivable shown in Note 8. The commitment has been recognised as although there are conditions attached, these are within the control of the donee charity.
In 2022 there was a second commitment of £250,000 which relates to the second tranche in a grant agreement with Royal British Legion industries. As this grant agreement was issued before the year end it represented a commitment to pay the outstanding balance to the charity.
## **True and fair override and post balance sheet events**
Since 2016, the Charity has had a long-term debtor and a long-term grant commitment with Rapport Housing for the purpose of the construction of Lawson House, a facility for retired veterans. Connected agreements were in place for the loan to Rapport (Note 8) and the commitment to make gifts (above) to match with each balance being reduced by £100,000 annually. Following financial difficulties, in the period February 2023 to June 2023, Rapport was taken over by a new provider who subsequently settled the outstanding loan, on the agreement that the balance of the grant monies was paid over. There was no actual financial gain or loss to the Trust and reflected the unwinding of the two connected agreements. This was agreed and finalised in June 2023.
Whilst FRS102 would potentially require a different treatment for the grant commitment, with all but £100,000 continuing to be shown as due greater than one year, this does not take into account the interconnected nature of the loan and grant commitment agreements with Rapport. The Trustees have determined that FRS102 had to be overridden in this circumstance in order to show a True and fair view.
17
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**10**
**Movement in funds**
_Current period_
Unrestricted funds:
General fund
Capital account
_Preceding period_
Unrestricted funds:
General fund
Capital account
Net movement comprises:
_Current period_
Unrestricted funds:
General fund
Capital account
_Preceding period_
Unrestricted funds:
General fund
Capital account|**Brought**
**forward**
**£**
563,556
21,783,575
22,347,131
632,838
20,980,271
21,613,109
**Income**
**£**
720,055
-
720,055
664,672
-
664,672|**Net**
**movement**
**£**
( 206,571)
( 458,451)
( 665,022)
( 273,684)
1,007,706
734,022
**Expenditure**
**£**
( 793,193)
-
( 793,193)
( 1,075,336)
( 250,000)
( 1,325,336)|**Transfers**
**£**
( 229,821)
229,821
-
204,402
( 204,402)
-
**Gains /**
**(losses)**
**£**
( 133,433)
( 458,451)
( 591,884)
136,980
1,257,706
1,394,686|**Carried**
**forward**
**£**
127,164
21,554,945|
|---|---|---|---|---|
|||||21,682,109|
|||||563,556
21,783,575|
|||||22,347,131|
|||||**Total**
**£**
( 206,571)
( 458,451)|
|||||( 665,022)|
|||||( 273,684)
1,007,706|
|||||734,022|
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 or funding commitments which are considered to be of a capital nature.
The transfer includes three elements. The yearly unwinding of the £100,000 donation to Rapport Housing & Care from the general fund to the capital account. A transfer of £250,000 from the general fund to the capital fund for the unwinding of the funding commitment entered into in the previous year for the RBLI. Finally, £120,179 is transferred from the capital account, being the historic unrealised gains on investments which have been sold in the year and are now realised.
18
## **THE LAWSON TRUST CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **11 Related party transactions**
The key management personnel of the charity are considered to be the trustees.
In the current period and in the prior period, no trustees received reimbursement for their expenses.
Neither the trustees, nor any person connected with them, received any remuneration or benefits in the current or preceding period.
## **12 Operating lease commitments**
## **Lessor**
At the Balance Sheet date the Charity had contracted with tenants for the following minimum lease payments:
|Within one year
Between two and five years|**2023**
**£**
127,525
10,750
138,275|**2022**
**£**
105,455
7,875|
|---|---|---|
|||113,330|
19
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **General Fund**
The following individual payments were made from the general fund during the year;
|Achievement for All
Action Medical Research
Age UK West Sussex
Aspens Charities
Aspire
Asthma Relief
Battle of Britain Memorial Trust
Bramber Bakehouse
Breatheasy
Bright Shadow CIO
Brighton Dome And Festival Ltd
British Red Cross
Cancer Support UK
Canine Partners
Carers Support East Kent
Carers Support West Sussex
Carers UK
Chailey Heritage Foundation
CHECT
Child Autism UK
Cleanup UK
CLIC Sargent Cancer Care
Coach Core Foundation
Combat Stress
Conservation Volunteers
Construction Industry Trust
Cosmetic Toiletry & Perfumery Association
Criminon UK
Crohn's & Colitis UK
Cyclists Fighting Cancer
Cystic Fibrosis Trust
Dandelion Time
De La Warr Pavillion Charitable Trust
Demelza House Childrens Hospice
Dentaid Limited
Designability Charity Ltd
Subtotal|**2023**
**£**
-
-
-
-
3,000
-
5,000
5,000
2,500
10,000
-
5,000
-
-
-
-
-
-
4,000
2,500
5,000
5,000
-
-
-
10,000
5,000
5,000
-
5,000
2,000
-
-
25,000
-
6,000
105,000|**2022**
**£**
5,400
5,000
5,000
5,000
-
7,500
-
-
-
-
10,000
-
9,000
5,000
5,000
3,000
4,000
5,000
-
-
-
-
5,000
3,000
5,000
-
-
-
4,000
-
-
10,000
5,000
-
6,000
-|
|---|---|---|
|||106,900|
19
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**General Fund**
Brought forward
Disability Challengers
Disasters Emergency Committee
Disasters Emergency Committee Pakistan Appeal
Disasters Emergency Committee re: Ukraine
Disasters Emergency Project - Afghanistan
Dogs for Good
Eden Valley Museum Trust
Ellenor
Family Holiday Charity
Farms for City Children
Fitzroy Support
Frozen Light
Gazen Salts Nature Reserve
Gingerbread The Charity
Global Feedback
Grassroots Suicide Prevention
Guildcare
Guts UK Charity
Gynaecology Cancer Research
Happy Days Childrens Charity
Happy Days Children's Charity
Hearing Dogs for Deaf People
Home Start South West Kent
Horatio's Garden Charitable Trust
Hospice in the Weald
Huntingtons Disease Association
IAH Charity Company Ltd
Ideas Test
Independent Age
InterAct Stroke Support
Jamie's Farm
Jigsaw (Southeast)
Kent Assoc for the Blind
Kent Autistic Trust
Kent Community Foundation
Kent Community Foundation Environmental Fund
Kent Enterprise Trust
Subtotal|**2023**
**£**
105,000
5,000
5,000
5,000
-
-
-
-
10,000
5,000
-
5,000
10,000
-
4,000
-
10,000
5,000
-
25,000
4,000
-
5,000
5,000
3,000
10,000
3,000
-
5,000
-
1,500
8,000
7,000
5,000
-
25,000
-
7,500
283,000|**2022**
**£**
106,900
-
-
-
5,000
5,000
5,000
5,000
-
-
10,000
-
-
5,000
-
5,000
-
-
1,000
-
-
3,000
-
-
-
2,500
-
5,000
-
2,000
-
5,000
-
-
8,000
-
25,000
-|
|---|---|---|
|||198,400|
20
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**General Fund**
Brought forward
Kent Refugee Action Network
Kent Surrey & Sussex Air Ambulance
Kidscape Campaign for Children's Safety
Learn and Thrive
Lennox Childrens Cancer Fund
Listening Books
Little Gate Farm
Little Hearts Matter
Livability
Living Paintings Trust
Macmillan Cancer Support
Martha Trust
Medical Detection Dogs
Meningitis Now
Mind
Mind With Heart
Missing People
Momentum Childrens Charity
Multiple Sclerosis Trust
Music in Hospitals And Care
National Literacy Trust
NSPCC
Oasis Domestic Abuse Service
OCD Action
Parkinson's Disease Society of the United Kingdon
Penny Brohn Cancer Care
Pilgrims Hospices East Kent
Plantlife International
Porchlight
Prison Advice & Care Trust
Prison Fellowship
Prisoners Advice Service
Prisoners Education Trust
Progressive Farming Trust
Prostate Cancer Research
Subtotal|**2023**
**£**
283,000
-
20,000
-
5,000
5,000
-
-
3,500
10,000
5,000
9,800
-
-
3,000
-
2,000
2,500
7,500
-
-
5,000
5,000
-
-
-
5,000
10,000
-
-
10,000
-
-
5,000
3,000
-
399,300|**2022**
**£**
198,400
5,000
8,000
5,284
-
-
4,500
8,000
-
-
-
-
8,000
5,000
-
2,500
-
-
-
2,500
3,000
-
-
25,000
2,500
3,000
-
-
3,000
25,000
-
4,500
5,000
-
-
25,000|
|---|---|---|
|||343,184|
21
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**General Fund**
Brought forward
Rainbow Trust Childrens Charity
Read for Good
Re-engage
Remap2010
Reverse Rett
Revitalise Respite Holiday
Richard Dimbleby Cancer Fund
RNLI
Roald Dahl's Marvellous Children's Charity
Royal Academy of Culinary Arts Adopt a School Trust
Royal British Legion
Royal British Legion Industries Ltd.
Royal Osteoporosis Society
RSPB
Safe Haven
Scotty's Little Soldiers
Sense Trusts
Serve on
Shine
South East Cancer Help Centre
South of England Foundation
Spear Brighton Trust
Spinal Muscular Atrophy
Spinal Muscular Atrophy UK
Spurgeons
St Barnabas Hospices (Sussex) Ltd
St John Ambulance
St Johns Ambulance
St Peter St James Charitable Trust
St Wilfrid's Hospice
Strongmen Charitable Incorporated Organisation
Sunny Days Children's Fnd
Sussex Beacon
Tall Ships Youth Trust
Team Domenica
Teenage Cancer Trust
Thanet Community Development Trust
The Amber Foundation
The Battle of Britain Memorial Trust CIO
The Brain Tumor Charity
Subtotal|**2023**
**£**
399,300
5,000
-
-
-
-
4,000
-
20,000
-
-
5,000
-
5,000
-
-
-
6,000
10,000
5,000
3,000
5,000
-
2,000
-
5,000
-
3,000
-
3,000
5,000
-
4,000
3,500
2,000
5,000
-
10,000
7,500
-
-
517,300|**2022**
**£**
343,184
-
5,000
10,000
7,500
5,000
-
5,000
-
5,000
10,000
-
505,000
-
3,850
30,000
5,000
-
20,000
-
-
-
10,000
-
2,000
-
5,000
-
5,000
-
-
7,500
-
-
3,350
5,000
9,000
-
-
5,000
2,000|
|---|---|---|
|||1,008,384|
22
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**General Fund**
Brought forward
The British Stammering Association
The Care Workers' Charity
The Cranfield Trust
The Douglas Bader Foundation
The Federation of London Youth Clubs
The Field Lane Foundation
The Groundwork South Trust
The Hollingbourne Meadow's Trust Ltd
The JPK Sussex Project
The Kenward Trust
The Macular Disease Society
The Martletts Hospice Ltd
The Maytree Respite Centre
The Movement for Non-Mobile Children (Whizz-Kidz)
The PSP Association
The Reading List Foundation
The Royal Air Forces Association
The Separated Child Foundation
The Sick Children's Trust
The Survivors' Network
The Sussex Beacon
The Suzy Lamplugh Trust
The Wheelyboat Trust
The Woodland Trust
Theodora Children's Charity
Time to Talk Befriending
Together for Short Lives
Together Kent
Tree of Hope
Trinity Theatre & Arts Centre Limited
University of Kent
Veterans Growth
Villiers Park Educational Trust
Volunteering Matters
Walking With The Wounded
Warming the Homeless
Subtotal|**2023**
**£**
517,300
-
5,000
10,000
-
-
-
7,500
-
-
-
-
-
-
-
1,000
2,500
-
5,000
5,000
5,000
6,000
-
2,500
-
4,000
-
-
-
5,000
-
5,000
-
10,000
5,000
-
5,000
600,800|**2022**
**£**
1,008,384
3,000
-
-
5,000
6,000
4,000
-
5,000
5,000
2,274
5,000
5,000
5,000
50,000
-
-
5,000
-
-
-
5,000
5,000
2,500
5,000
-
10,000
5,000
4,000
-
6,000
5,000
5,000
-
-
5,000
-|
|---|---|---|
|||1,166,158|
23
## **THE LAWSON TRUST CIO**
## **GRANTS MADE** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**General Fund**
Brought forward
West Sussex Mind
Wildwood Trust
Willow Foundation
Windmill Community Gardens
Winston's Wish
YWCA England & Wales|**2023**
**£**
600,800
5,000
-
3,000
6,000
2,000
-
616,800|**2022**
**£**
1,166,158
5,000
5,000
-
-
-
4,000|
|---|---|---|
|||1,180,158|
24