THE MONDAY CHARITABLE TRUST Registered Charity no. 1174232 Company no. 10910936 REPORT AND AUDITED FINANCIAL STATEMENTS For the year ended 31 March 2021 THE MONDAY CHARITABLE TRUST CONTENTS PAGE YEAR ENDED 31 MARCH 2021 Page Reference and Administrative Infomialion Trustees. Report Independent Auditor's Report 10-12 Statement of Financial Activities 13 Consolidated Balance Sheet 14 Charity Balance Sheet 15 stalemeNt of Cash Flows 16 Notes lo the Financial Statements 17-25 THE MONDAY CHARITABLE TRUST REFERENCE AND ADMINISTRATIVE INFORMATION YEAR ENOED 31 MARCH 2021 Reference & Administrative Infomiation Official Charity Name The Monday Charitable Trust Ilhe Charity) Company Registration No. 10910936 Charity Registration No 1174232 Reglstered officeladdress One Barthobmew Close. LoThJon EC1A 7BL Investment Managers Mercer Limi(ed, Quartemiile One. 15 Laurislon Pla￿, Edinburgh EH3 9EP Property Advisors Carter Jonas LLP. One Chapel Place. London W1G OBG Propety Managers H￿kS Baker Limrted. 29 cast￿ Street, Reading RG1 7SB Auditor Haysmacintyre LLP, 10 Queen Slfeel Place. London EC4R 1AG Administrators and Legal Advlsors BDB Ptimans LLP. One Bartholomw Close. London EC1A 7BL Trustses Robert R Lane- Founder Trustee (died on 8 January 2021} Elspelh M Lane- Founder Trustee Sarah E Baxier- Foundei Trustee Jonathan E Brinsden- Founder Twslee Andrew Hunter Johnston (appointed 24 May 20191 Douglas Blausten lappointed 24 May 2019} (Andiew and Douglas are apwinted for a three-year lemi, ending 24 May 2022) General Manager: Stephen Lewin THE MONDAY CHARITABLE TRUST TRUSTEES, REPORT YEAR ENDEO 31 MARCH 2021 Report of the Trustees for the year ended 31 March 2021 The Trustees, who are also Directors of the company for the purFM)se of the Companies Ad, present their report and the audited financial siatements for the year e￿Ie￿ 31 March 2021, which are also prepared lo meel the requirements lor a dire¢lors' report and accounts for Companies Act purpose5. The information w(th respect to Trustees. Directors, offi￿rS and Advisors sel on page 1 foms part of this report. The financial slalemenls comply Cur￿nt ststutory requirements. the Charity's Articles of Association dated 11 August 2017 (the Articles). current A¢counling Siandards in the United Kingdom and the Slalemenl of Recommended Practice ISORP} applicable to charities preparing their acwunls in accordance with the Financial Reporting Standarij in the UK and Republ￿ of Ireland IFRS 102) (effective 1 January 20151. the Charities Act 2011 and the Companies Act 2LXJ6. The Trustees are appoinled in ￿cOrdan￿ with the temis of the Articles and have the appropriate knowledge and expertise to manage and administer the Charity. The Trustees have complied with the duty to have due regard to guidarTrce issued by the Charity Commissw)n. The Charity has appointed Stephen Lewin lo act as General Manager, lo deal with the day-lo-day administralKJn of the Charity. The Charity does not make use of volunteers. Structure, Govemance and Management The Charty is a charitable company limf(ed by guarantee. incorporated on 11 August 2017 (company registration number 109109361 and regislered with the Charity Commissioners as a charty (charity registration number 1174232). The Charity's goveming d￿￿ment is the Articl8$ (laled 17 August 2017, as arnended by a Speoal Resolution dated 23 Apri5 2019 Ilhe Speckol Resolution). The minimum number of Trustees required by the Art￿leS is three and the maximum is eight. The four original Trustees were the Founder Trustees and they serve an indefinite tem based on their relative experience and contribution to the Charity as a whole. New Trustees are Elected Trustees and serve a lemi of three years. They are appointed by ordinary resolution and may seNe a maximum of tems. They may thereafter be reappointed annually if recommended by the Chaimian. Training for new Trustees is provided when relevant_ Responsrbility foi the ifKluclion of any new Trustee. which includes awareness of the history and approach ol the Charity and an understanding ol a Trustee's duties, lies with the Trustees. New Trustees le￿1ve copies 0ftheArt￿leS ofAsscciation. the Special ResolulK>n, the previous year's accounts and guidance booklets provided by the Charity Commission. The Trustees also provide full details of the Charity's cu￿ent grant programme and objeclives. There are two elected Trustees, Andrew Hunter Johnston and Douglas Blausten. They are each appointed foi a three-year term as Irom 24 May 2019. All Trustees work on 2 voluntary basis and no remuneiation was paid in the year. Details of Trustees, expenses and related party transactions ale dis¢losed in Note 710 the Accounts. Tiuslees are required lo disclose all relevant interests and register them annually with the General Manager and. in accordan￿ wlh the Charity's policy, withdraw from decisions where a conflict of interest aiises. A register of conflicts is maintained by the Charity and any new confficls are also noted dLJring meetings. The Trustees meet at least a year and agree the broad slralegy and aieas ofaclNily for the Charity, including Cons￿eration of granlmaking, budget, investment, reserves, fisk management poI￿leS and performance. THE MONDAY CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 MARCH 2021 Management The Tfuslees have delegated certain responsibilrt￿s lo Committees in a￿rdance with the Articles. The Management and Operations (Ops) Committee consisis of at ￿ast two Trustees and the General Manager as well as advisers The Ops Committee revws the financial and governance arrangements for the Charity and advises the Board accordingly on mallers including financial management, risk management and the financial audrt. The Ops Committee is responsible for reporting to the Trustees on investment and property mallers and directing the investment managers as appropriate The Charity has also appointed a Programme Related Investment (PRI) Commtttee Ilhe Tuesclay Commrtleel consisting of al least two Tiuslees and the General Manager to Consider PRI investment opportunit*es. The Tuesday Committee reviews these opportunrties and obtains advi￿ on them as needed and then advises the Board on the level of investrnenl and terms. Following the appointment of Mercw as Invesknent Managers. an Investment Committee eonsi51ing of al least one Trustee and the General ManageT was sel up and meets quarterfy wth the Investmenl Managers lo discuss investment poI￿Y and monitor performance. There are no paid staff within the Charty- Financial management. risk management and administration are the responsibility of the General Manager. Objectives, Principal Activities and Public Bengfit The primary objects of the Charity, as staled in ils governing document, are lo advance such ¢har(table purposes (according to the law of EnglarKI and Wabes} in any part of the wortd as the Trustees see fil from lirne lo lime. The Trustees confirm that they have referred lo the Charity Cornmission's general guidan￿ on public benefit when reviewng the Charity's aims and objeckn"ves. in planning lubjre ath"vilies and setting a grantmaking policy for the year. The Trustees, having regard to the Charty Commi8sion's gu¥Jance on public benefit induding the gLJIdan￿'Pub1IC benefit: running a charity IP821' and in accordan￿ with seth.on 17 of the Charities Act 2011, consider that the purposes snd activities of the Charity satisfy the requirements of the publ￿ benefit test set out in section 4 of the same Act. The Charity carries out these objects by provhling grants lo UK registered chari(ies whose objects comply with the Charity's Criteria. During 2020121 the Trustees have conlirbued to support charities that benefited the folbwing_' Hospices Independent living for elderfy arbd young people in general Literacy in children Those Iransilioning frcKn rough sleeping Supporting the homeless {wilh hot food) Supporting young people with life skills Housing for those in need and Improving S(￿la1 mobility. Grantmaking Policy The Charity aims lo improve life Chances of disadvantaged and often marginalised groups in the UK. Vve do this by supporting UK regisleied Charities that work lo tackle disadvantage, mainty in the fields of housing. education, welfare and social mobility. Wnilsl we will continue lo support direct Servi￿ provision to help those in need, we are increasingly interested in funding programmes which address or seek lo identrfy the root causes of issues, as we believe Ihal such programmes will deliver the greatest sctial impact over the long term. We regard the Charity THE MONDAY CHARITABLE TRUST TRUSTEES, REPORT YEAR ENDED 31 MARCH 2021 as a long term funder which is able lo be flexible and independent and resw)nd lo changing needs in society and we are willing to SUPF)Ort innovatwe ideas for tackling problems. The Tnjslees have recenlty agreed a formal grantmaking ￿lcY for the Charty. The Trustees carry out three types of grantmaking.. Slralegt. Inlemiediale and Discret￿nary. 'Slralegic' grants are large giants which awe made over a 2-3 year period to support a particular project. The lolal value of Strategic grants awarded each cycle would normally be around £5.4m. payable in three annual inslalmenls. This level will be revEwed in each cycle. The current cycle of Strategic grants agreed is £6.3m, resulting from Ihe Trustees, response to the Covid ￿s1$. The Trustees have a seleclK)n process in lo idenlify charities which meet the Charity's strategi¢ criteria. 8eneficiaries are iequifed to provide reports on a half year and annual basis. New Strategic grants were enlere(I into in 2020121 In addition to the granls already agreed to UK Youth. The Sutton Trust and Phyllis Tuckwell Hospice Care IPTHC). A new prwess lo ¢hoose charthes to ￿nerrt from the next Cycle will start in 2022, with the first payment under this cycle being made in 2023. 'Intemiediale' grants are mid-level grants and male over a 2-3 year ￿[1￿j to support a project bul not as large as a strateg￿ grant Generally they would not exceed £150.000 lo each charity, payable in three annual inslalments. The lolal value of Inlermediale grants awarded in each cycle would normally be £1m over a three year cyde. Beneficiaries have lo report annually on progress lo the Trustees. A new Inlemediale grant in favour of The Prince's TTU51 was agreed in December 2020 and following the year end a number of other new InleTmediale grants were entered into for a three year term ending in December 2023. The new process.will begin in the summer of 2024 to be agreed at the Tnjstees, autumn 2024 meeting, with the first paymelll under this cycle being made in December 2024. 'Dis¢r8lionary' grants are reviewed by Ihe Trustees on a six-monthty basis at their meetings The Trustees supported the Big G￿e Christmas Challenge in 2019 and 2020 and intend lo support il in 2021 in this category. They are pleased to see how much a donation made under this scheme Can be increased by the match funding provided. As a general rule, the Trustees will also don*e about £150,000 lo discretionary benef￿larieS in accordance with ils agreed budget each year. The Covid-19 crisis and the resulting turbulen￿ in financial markets has had a limited impad on the Charity'5 finances, due lo the medium-riqk investment strategy adq)led by the inveslment managers, Mercer, who opeiale on a fully discretionary basis, and the cash available folk)wing the sales of property. Unless further losses are sustained, the impact of the crisis on the Chariws investmer)t portfolio will not have an impact on the Charity's future forecast expenditure. Because of the disruptions caused by the CovKI-19 pandemic. the Trustees decided lo make several Emergeiicy grants falling into the following categories". or9anisalions wh￿h can deliver frontline services. including those providing soc¥al Ca￿ serv￿e$ lo the most vulnerable. oiganisalions supported in the p85t. lo assist them through the emergency. the Coronavirus ¢risis funds. organisalions which would nonnally fall OLrtside Ihe Chafity's social aims, butwhich carry on valuable work supporting fionlline NHS staff wrth a view lo maintaining staff morale. improving resilience, relieving burnout and meeting other needs as required. The lolal of Emeigency giants paNJ during the year wa5 £1.875m. THE MONDAY CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 MARCH 2021 Achievements and Perfomnce Grants have been made lo vaTiOUS charities Idelailed in note 5 of the accounts). The Charity continues lo monitor the perf0rnan￿ of a range of existing medium and long-lem projects across the spectrum of the Charity's granlmaking a¢tivi(ies. All the projects undertaken by the Charrty are considered lo meet the requirement for public benefit. However. in certain ￿seS, il is not possible lo quantify the number of potential ultimate benef￿lar1eS. fFI Review of Activities The Trustees have made grants during the year lo hospices. charitie5 SUPPOrting young people with the provision of life skills and improving s￿ra1 mobilty. disabled people with indepenclent living. people transitioning from sleeping rough, children with their education, local communities. women requiring assistance because of abuse and air ambulance funds_ The Trustees. support of hiskwic Slralegic benefioaries. St Basils. The Connection. Thames Reach and Aspi came lo an end in 2019 and final reports were received from them. The Tiustees are pleased that they could benefit such dtverse organisalions and that the partnershtps have been successful. A new cycle of Strategic grants will continue with UK Youth, The Sullon Trust and PTHC. New beneficiarie5 in this cycle are Royal Star and Garter Homes {RS&GHI, Construction Youth TrLTrSt ICYT). the Mental Health Foundation {hrtHFI and the Maudsley Charity. 11 The grants lo each of them were for the follwing pr(KJramnw" PTHC." for two Communty Manager posts and the devebpmenl of Ihese roles. The 2019 grant agreement is the second strateg￿ grant cycle that the Trustees have entered into with PTHC. Sullon Trust". forlheir UK Summec Schools programme. The 2019 grant agreement is the second Strateg giant cycle that the Trustees have enle¥ed into with the Sutton Trusl. UK Youth.. for their Future Proof programme. As wtth PTHC and the Sutton Trust, the 2019 grant agieemenl is Ihe second Slfategic grant cycle that the Trustee5 have entered into with UK Youth. RS&GH.. for visiting rooms which can be made Covid safe, staff training and core services. CYT." for their schools partnership programme. lo help build on their initial pilot work focuserl on creating opportunity for disadvantaged communrties and build longer term partnerships with the schools. MHF.. for the Covid response programme. which wo￿$ with trusted partners to deliver informed interventions in largeled communities. The Maudsley Charty-. for the CUES programme. lo enable this to be rolled out digitally. r) P47 Income The total income for Ihe yeai ended 31 March 2021 was £4.924.944 {31 Maich 2020.. £3,600,502). Expenditure Future multi-year funding commitments of £4.529.088 were agreed by the Charity as at 31 March 2021. Expenditure during the year ended 31 March 2021 was. £7.004.713131 March 2020.. £7.050.2271- JJ pJJ THE MONDAY CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 MARCH 2021 Invgslment Pollcy Mercer are the sole investment manager and act on a fulty delegaled basis. The Tnjstees have agreed an investment policy and have asked Mercer lo operate on a total ielurn basis wilh in¢ome reinvested. A t)enchmark of CPI + 4°/0 is applied to the investment portfolio. Mercei send performance reports on a mor)Ihly basis and full reports quarterty lo the Trustees and General Manager. The Investment Commrtlee meet with Meccer on a quarterty basis before the Ops Commtilee meeting5 to review the detail of the portfolio. They rerKJrt lo the Ops Committee al the quarterly Ops Committee meetings. The Trustees also review Ihis al their meetings every half year. The Trustees or the Ops Committee a150 meet Mercer at least once a year. The Ov￿811 Investments were valued * £56.887.209 on 31 March 2021,12020.. £38,419,8(KI). The Charity's investment portfdio was affected by the financial markets. reaction to the Covid-19 crisis. This was closely monrtored by the General Manager. the Charity's Professional advisers and its investment managers. As al the year end the inveslmenl portfolio's value had recovered from the valuation k>sses showing al 31 March 2020_ Looking ahead, Mercer. acting on the Twstees. behalf. wll continue lo monrtor market conditions and adapt their investment policy lo changing circumstances as appropriale. The total return polity wll be maintained until lurthei notice. Mercer's investment framework for suslainable growth di51irwJuishes between the financBI iMpl￿allonS leg risks) associated with environmentsl, social and corporate govemance IESGI factors and the gr(Iwih opportunities in industries fT)osI directly affected by sustainability issues_ Mercer stale that 'mitigaling risks requires flexibility, foresight and fresh thinking about risk management. At the same lime, investors should adapt their strategies lo capilalise on the new opportunities being (xeated,. During 2020121 the Trustees continued lo review the decisk)n to sell their property portfolio in order lo achieve g￿ater investment diversification and reduce adminislralwe costs. The Battersea North property, lenanled by thè RCA, was sold in August 2020 and proceeds ofjusl over £14m were received. The Iruslees agreed lo invest £8m oflhese proceeds with Mercer, in £1.6m tranches over a six month period. This was fully invested by March 2021. Following the year end the Tfuslee5 agreed that an additional amount of £3m would be invested with Mercer. Property portfolio Following the COVID-19 pandemic, the liming of any propety sales is under careful consideration. The Truslees have appointed a consuttanl, Paul Redstone, lo review the commercial property portfolio and advise on the disposal programme, which may require some capital investment in the properties before they are marketed for sale. Carter Jonas continue to offer adV￿e and will be involved in the disrx)sal programme where appropriate. When properties are sold the proceeds, less ￿ServeS required. are intended lo be added lo the portfolio managed by me￿r. This will continue lo be done in staged paymenls to stagger exposu￿ lo the markets. The Trustees are also planning to dispose of their resKlenlial portfolio. This process will be managed by Hicks Baker as and when the properties become vacant 01 after nOt￿e is gNen to the present lenanls. The resiofenlial portfolio includes seven flats in two apartrnenl blcKks in Slough which are affected by Claddinglexternal wall Issues. These flats are not currently saleable but the posilion is being closely monilored. Legal advi￿ has been obtained regarding the Charity's exposure to increased service charges and the merits of any legal claims that may b& made against the developers. building ¢ontra¢lors and archrtecls. as well as under any building guarantees and Government funding ￿he￿s_ Programme Related Investments {PRls) The Trustees have made various PRIS whth a￿ held outside the Mercer portfolio and have agreed to invest up to S°/0 of the Charity's net asset value in PRIS. During the year the Truslees wmmitted lo investing £750,000 in each of two funds managed by Resonan￿, a social I￿paCI investment ￿mpanY. The funds selected are the Women in Safe Homes Fund (WISHI and the Resonance Everyone in Fund IREIFI. Funds are invested when drawdowns are iequesled by the fund managei. As at 31 March 2021 the Charity had invested £127,500 in the WISH Fund. Further drawdown requests have been received since 31 March 2021_ THE MONDAY CHARITABLE TRUST TRUSTEES, REPORT YEAR ENDED 31 MARCH 2021 Reserves Policy As a general tx)licy, grants are currentty accounted for in full in the year in which they are awarded. Payments for Slralegic and Intermed￿te grants are spread over a number of years and appropriate liabilities are shown in the accounts, refleclrng the commitments made. The Trustees have the discretion to disburse some or all of ils Expendable Endowment. Having regard lo this, the Trustees have reoxamined the requirement lo maintain free reserves ar)d concluded that the level currently maintained is appropriate to ensure that the Charity would be abie to continue ils aclivilies. The Trustees will review their budgel each year and consider how expendrture will be mel with the iedu¢lion in income from the investments following the decision lo invest for total relum_ The Trustees anticipated a reduction in ￿nI81 income during the year bul this has not been as problematic as fiist thought. However. this is kept undei revw regularfy with their property advisers and managers. The Tiuslees have previously determined that the minimum level of cash reseives should not be less than £2.5m_ This policy is being kept under review in light of future income expeclalw)ns and planned charitable expenditure. Current cash held is in excess of the agreed reseive5 level. being £9.825,255 as al 31 March 2021. Fundralslng The Charrty has not made any fijndraising appeals lo the genetal public during the year and. as a resutt, there has been no outsourced fundraising via professK)nal fundraisers or other third parties. Consequently. the Charity is not registered wtth the fundfaising regulator and Teceived no fundraising complaints in the year. Rlsk Management The Trustees have idenlrfied the major risks applKable lo a Charity of this nature including investment iisk and failu￿ of Strategic grants. The Trustees consider variabilrty of investment retums constitutes a financial risk and volatility in world stock markets demonslrales this risk. The Trustees have asked the Investment Managers to manage the portfolio on a total return basis under a fulty discretK)nary mandate. The Trustees consider a total return basis will stabilise Ihe resources available lo them and also gwes Mercer a w￿e mandate lo invest on their behalf. During the year the Tfuslees agreed that up lo 20°h of the investment portfolio with Mercer could be aljocated lo private markel investments and aulhorised Mercer to invest in the Mercer PIP VI Fund as part of this allocation lo help diversrfy their risk. 12} Following investment uncertainty and disnJplKJns caused by the Covid-19 pandemic. the value of the investment portfolio had redu¢ed as at 31 March 2020. There has been significant market recovery subsequently. The Charity holds these investments for the long lemi and expects the inveslrnenl values lo fluctuate bul the hope is that in the long lem there wll be general c8Pttal appreciation_ 131 The PRIS are made on the understanding that they have a charitable purpose rather than being financial inveslmenls. The General Manager undertakes due dilvjence on the prospective PRI and advises the Trustees about this lo miligale the risks. The investment may be secured, as in the PRIS with Commonweal and Thames Reach. or be unsecuted. {41 The potential risks conceming the Stralegic grants include delay or cltNicullies in implementation due lo politi￿1. environmental and resou￿ issues, which in turn may resutt in a failure lo meet defined milestones or objectives. The Tiustees manage the risks by paying the grants in Instalments and by THE MONDAY CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 MARCH 2021 having each recipienl sign a GTantAgreemenl, confimiing the terms ofthe grant. and selling up a reporting process, whereby each recipient charty reports on the pioject on a six-monlhty and annual basis. This ieport has to include details of the progress, any unfores&n circumstances that may have arisen wilh the Pfojecls and how the recipient charty is managing this_ 151 The Trustees have revieNe(I the risks identrfied in connection wf(h the property portfolio and the Ops Committee considers these iBks and performan￿ at their quarterty meetings. The following are believed to be the principal risks.. Major tenant default Rental voids. disruption lo eash fk)w. increased costs and burdens of thvnership This is monilored by referen¢e to Graydon Credit Risk Management and Stress Test reports for new and existing commercial properties and effective credit conlrol Properties falling vacant on expiry Rental voids, disruption to cash flow, increased costs and burdens of ownership Identifying likety prLyerties up to to three years in advance lin the case of commercial lettingsl and weighing up the potential for holding as againsl selling as an investment. whilst still producing an income Lack of liquidity Inability lo meet financial commitwnenls or planned objectives Maintaining accu131e cash projections, minimum working capi(al and effective relationships with banks and other sources of finan￿. Any gearing is also lo be managed at sustainable levels Economic instability Leading to weakened lenanl demand and increased rent voids Monitoring general economic indicalofs and maintaining a policy of diversTficalK)n of assels held including residential and Iheiefore avoiding LTrndue exposure lo one specific sector Legal regulatory and tsx Changes Impact on OCCLJpier and investor demand and values Monrtoring consuttalion papers and maintaining an awareness of potenlially adverse matters through the trade press and from other professTonal organisalions and taking aclitsn as appiopriale Issues with building safety because of cladding The Trust￿ regulady rewew the risks arising from the flats owned by them in Slough which are affected by either dangerous cladding or sub-standard building processes on the extemal walls. The Trustees have asked their Property Managers and legal advisers for advice on this. They have also asked the Propefty Managers lo ensure that any tenants are aware of any new safety procedures affecting their flais because of these issues_ Reduction in Property Values An annual capital valuation is undertaken by external valuers. Carter Jonas. The decision lo leave the European Union and the impact of the Covid-19 pande￿￿ are both a risk lo values. The valuation report for the year ended 31 March 2021 does riot contain a 'malerial valuation uncertainty, as per VPS 3 and VPGA 10 of the RCIS Red Book Global as was shown in the 2020 report because of the CovKI-19 pandemic. The Trustee5 have noted the re¢ommendalK)n to keep the values under review. THE MONDAY CHARITABLE TRUST TRUSTEES, REPORT YEAR ENDED 31 MARCH 2021 Plans for the Future The key focus for granlmaking will be on sup￿rting exisling projects in light of the current crisis caused by Covid- 19 with a view lo ensuring that, as far as possible, the levels of chari(able benefrf( created are maintained. The Trustees will continue lo monitor the situation exte¥nally and adapt the Charrty's strategy appropriately. New strateg￿ and Inlemiediate grant agreements have been entered into in 2020 and 2021. so no new larger grants are envisaged bef¢Ne 2022. It is anticipated Ihat Ihe Charity's existing projects. and new opportunities ￿lating lo existing projects. will fully ulilise the Charity's funds available for grants for the next three years. No change In granlmaking policy is envisaged al present. Truste&s' responslbilities in rnlation to the financial statements The Tru51ees are responsible for preparing the Trustees. Rep)rt and the financial stslements in accordance with applicable law and United Kingdom Accounting Standards. The law applicable lo charities in England and Wa￿5 requires the Trustees lo prepare financial slalemenls for each financial year which give a true and fair view of the slate of affairs of the Charity and of the income resources and applicatK)n of resources of the Charity for that year. In pieparing these financial slatemenls, the Trustees are required lo.. select suitable accounting poI￿leS and then appty them consislentty-, observe the methods and principles of the Charities SORP., make judgements and accounting eslimales that a￿ ￿aSonab￿ and prudent.. slate whelher applicable acwunting standards have been followed. subject lo any departures disclosed and explained in the financial slalemenls., and prepare the financial statements on the going concern basis unless it is inappropriate lo presume that the Charity will continue in business. The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charily and enable Ihem to ensure that the financial slalemenls comply with the Charities Act 2011, the Charity IA¢counls and Reports) Regulatsons 2￿8 and the provisions of Ihe Charity's constitution. They are also fesw)nsible for safeguarding the assets ofthe Chartty and hence for taking reasonable steps for the prevention and defection of fraud and other itregularities. So far as the Trustees are aware the￿ is no relevant audit infomiation olwhich the Charity's auditors are unaware. Each Trus1& has taken all re850nable steps that he or she ought lo lake as 3 Trustee in order lo make himself or herself aware of any relevant audit inforrnalion and to establish that the charity's auditors are aware of that infomiation. In preparing this report the Trustees. have tsken advantage of the small ￿mpanieS. exemptions provided by section 415A of the Companies Act 201%. Signed for and on behalf of the Trustees g / IL/20I{ Trustee onathan Brinsden Date THE MONDAY CHARITABLE TRUST INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF MONDAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2021 Opinion We have audited the financial statements of The Monday Charitable Tnjst for the yearended 31 March 2021 wh￿h comprise the Consolidated Slalement of Financial Actwities, the Group and Charity Balance Sheets, Ihe Consolidated Slalemenl of Cash Flows anil notes lo the financial slalemenls. including a summary of significant accoLJnting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financk41 Reporting Standard 102 The Financial Reporting standard applKable in the UK and R8publK of lTrland (United Kingdom Generalty Accepted Accounting Practice}. In our opinion, the financial statements- give a true and fair view of the slate of the group's 8nd of the parent charitsble ￿mpanY'S affairs as al 31 March 2021 and of the group's and parent charitable COfTbpany's net movement in funds, including the income and expendrture, for the yeai Ihen ended.. have been properly prepared in accordance wFth Uniied Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance wrth the requirements of the Companies Act 2006. Basi5 for opinion We condu¢ted our audit in accordance wrth InternaiDnal Standards on Auditing IUKI IISAS {UKII and applicable law. Our responsibilities under those standards are furthei described in the audilorfs responsibilities for the audit of the financial slalemenls sectKJn of our report. We are independent of the group in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK. including the FRC'S Ethical Standard. and we have fu￿111ed our otherethi￿1 responsibilities in accordance with these requirements. We believe that the audrt evidence we have obtained is suffr¢Èenl and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded thal the trustees. use of the going concem basis of accounting in the preparation of the financial slalemenls is appropriate. Based on Ihe work we have perfomied. we have not Ident￿led any material uncertainties relating to events Of conditions that. individually or collectively. fnay cast signifi¢anl doubl on the group's ability lo continue as a going con¢em for a peiB)d of al least tWe￿e months from when the financial slalemenls are auihorised for issue. Our responsibilities and the responsibilrties of the trustees wlh respect lo going con￿rn are described in the relevant sections of this report. Other information The trustees are iesponsible for the olher infomialion. The other information comprises the inlom)ation included in the Trustees, Report. Our opinion on the financial statements does not cover the other information and. except lo the extent othen￿lSe explicitly slated in our report, we (Jo not express any fom) of assurance conclusion theieon. 10 THE MONDAY CHARITABLE TRUST INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF MONDAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2021 In connection with our audit of the financial stalemenls, ou¥ ￿$[%)nSibl1ty is to read the other information and, in doing so. consider whether the other infomiation 15 malerialty inconsislenl wth the financial slalemenls or our knowledge obtained in the audrt or othe￿iSe appears lo be materially misstateof. If we identify such material in¢onsislen¢ies or apparent material misstatemenls. we are required to determine whether there is a material misslalemenl in the financial slalemenls or a material misstatement of the other information. 11, based on thè work we have perfomed, we conclude that there is a material misslalemenl of this other infomialion, we are iequired lo report that fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. bas￿ on the work undertaken in the course of the audit". the information given in the Trustees, Rew)rt {whi¢h includes the directors, report prepared foi the purposes of company lawl for the financial year for which Ihe Iinan¢ial slalemenls are prepared is consislenl with the financial stalemenls," and the directors. report included wlhin the Trustees. Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the I￿h1 of the knowledge and understanding of Ihe group and the parent charitable company and ils environment obtained in the ¢ouise of the audit. we have not identified material misslalements in the Trustees. Annual Report Iwhich incorporates the direclors, report). We have nothing to report in respect of the following matters in relation lo which the Companies A¢1 2006 requires us lo report lo you rf, in our opinion.. adequate accounling records have not been kept by the parent charitable company,. or the parent charitable company financial slalemenls are not in agreement wi(h the accounting records-, or certain disclosures of trustees. remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audit", or the tiuslees were not entitled lo prepare the financial slalements in accordance with the small companies, iegime and take advantage of the small companies. exemplK)ns in preparing Ihe trustees, report and from the ￿qU1￿ment to p￿ Pa￿ a strategic report. Responsibililigs of trustees for the financial statements As explained more fully in the trustees. responsibilities stalemenl sel out on pages 8-9. the Iruslees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary lo enable Ihe preparats.on of financial slatements Ihal are free fcom material misslalemenl, whether due lo fraud or error. In preparing the financial slalemenls, the trustees are fesp(K)sible for assessing the group's and the parent charitable company s ability lo continue as a going concem. disclosing. as applicable. mallers related lo going concern and using the going concern basis of accounting unless the trustees either Intend to liquidale the group or the parent charitable company or to cease operations. or have no realislic allernative but lo do so. THE MONDAY CHARITABLE TRUST INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF MONDAY CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2021 Auditorfs responsibilitie5 for the audit of the flnan¢lal statements Our objectives are to obtain reasonable assuran￿ about whether the financial slalemenls as a whole are free from material misstatement. whether due to fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a hKJh level of assuran¢e. but is nol a guarantee that an audit conducted in accordance with ISAS IUKI will aKvays delecl 8 material misslalemenl when it exists. Misstatements Can arise from fraud o error and are considered material rf, indNidualty or in the aggregate, they could ￿8$OnablY be expected lo influence the ￿onoMiC decisions of users taken on the basis of these financial statements. Iriegularilies, including fraud, are inslances ol non-compliance wrth laws and regulations. We design prcLedures in line with our responsibilities, outlined above. to delect material misslalemenls in respect of irregularities. including fraud. The extent lo which our procedures are capable of detecting irregulariltes, including fraud is detailed below.. Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance wrfch laws and re9ulalK>ns related to Ihe regulalory requirements of the Charities Commission, and we considered the extent lo which non-compliance might have a material effect on the financial Statements. We also Considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2(th. the Charities Act 2011 and Ihe Charities SORP120191. We evaluatecl management's incentives and opw)rtunilies for fraudulent manipulation of the financial statements {including the risk of override of conlrolsl. and determined that the principal risks were related lo the cut-off of investment income, the re¢ognilk)n of grant commilments arKI the valuation of investment properties. Audit pl0￿ureS performed by the engagement team included" Enquiries of management regarding correspondence with regulators and lax aulhorilies.. Discussions with management including conSiderat￿n of knchvn or suspecied instances of non Net current assets 7.136,375 1,612,866 Total assets less current liabilities 97.196,225 91,676,847 Creditors.. amounls falling due after more than one year 12,055,919) 11.833,0881 Net assets 95.140.306 89,843,759 Funds of the Charlty Unreslricled Fund Expend8ble EndowrrEnl Fund 95,140,306 89,843,759 Total FutKIs 13 95,140,3( 89.843,759 The Charity nel movement in funds for the year ended 31 March 2021 was a surplus of £5,296.54712020". deficit of £3.342,5641 Approved and signed on behalf of the Truslees Trustee Date.. ZlIL/zoU Jonathan Brinsden The notes on pages 17 10 25 form an integral part of these financial slalernenls THE MONDAY CHARITABLE TRUST CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2021 2021 2020 Cash flows from operating activities Net incomel{expendrturel for the teporting period Dividends, Inte￿$1 and renls from inveslmenls Investment management fees and property costs (Gainslllosses on inve51menls Ilncreaselldecrease in debtors Increase1(d￿reasel in creditors Depreciation 5.387.523 {3,553, 158) 809,905 17,467,292) {23,7001 951,677 540 13,460,003) 13,600,502) 1,207,664 10,278 135,082 {6,004,4841 495 Net cash used in operating activities 13.894,505) 111,711,470) Cash flows from invèsting activities DNidends, inte￿$1 and rents from investments Investment management fees and propety costs Purchase of investments Proceeds from sale of investments Purchase of fixed assets Purchase of programme related investments 3,553,158 1809,9051 (37,837,291) 45.435,674 3.600,502 11,207,664) 191,839,943) 88,062,706 {10,1071 11,822,056) (127,500) Net cash provided byllused inl investing activities 10,214.136 13,216,562) Change in cash and cash equivalents in the period 6.319.631 {14.928.0321 Cash and cash equivalents at stsrt of period 3,536.669 18,464,701 Cash and cash equivalents at end of period 9.856,300 3,536,669 At start of year 2021 Cash flow$ At end ofyear 2021 2021 Analysis of net debt Cash al bank 3.536.669 6.319,631 9.856.300 The notes on page 17 to 25 fomi an integral part of these financial statements 16 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 A¢¢ounting policies General Infonnation Monday Charitable Trust in an incorporated charity registered as a charity in England and Wales (charity number.. 1174232) and a company limited by guarantee (company number. 10910936). The address is set out in the reference and administration section of Ihese financial slatemenls. Basls of preparation The financial statements have been prepared in accordance wf(h the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practi￿ {SORP) {second edition). The Charity is a Public Benefit Entity under the definition sel oul in FRS 102. The accounts are drawn up on the historical cost basis of accounting. The Charity has one subsidiary- Chelsea Estates Limited (registered company number 00264585, England and Wales). The financial statements include the results of Chelsea Estates Limtled, consolidated on a line by line basis. Having reviewed the exFected income and expenditure over the next ￿e1ve months. the Trustees have a reasonable expectation that the Charity has adequate resources lo continue ils activities for the foreseeable future and consider that there were no material uncertainties over the Charity's financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements Income All income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quanlrfied with reasonable accuracy. In particular, donations and investment income are included when receivable. Investments donated to Ihe charity are recognised at their market value as the date of the donation. Expenditure Expenditure is recognised when a liability is incurred_ Expenditu￿ includes VAT as this cannot be recovered. The cost of raising funds represents investment and propety management costs, and interest on borrowings to finance property investments. Charitable expenditure represents those costs incurred by the charity in providing grantsldonalions lo its beneficiaries_ It includes both amounts directly paid lo the benefi'ciaries and management and adminislration costs necessary to support them. Fund Accounting The Expendable Endowment Fund is the capital fvnd of the Charity and represents the original illveslments. additional capital receipts from the founders and the subsequent gains and losses thereon. The endowment is not permanent as the Trustees may apply these funds at their discretion. 17 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 Accounting policies (continued) The Unrestricted Fund is the general fund which is available for use at the discretion of the Trustees in furtherance of the general objeclives of the charity and which have not been designated for other purposes. The Trustees have a power to accumulate the income as an accretion to the Expendable Endowment Fund. Investments Investments and investment properties are measured at fair value with gains and losses recognised in the Statement of Financial Activities. Quoted securities are measured at closing exchange prices. Cash and cash equivalents Cash and cash equivalents comprise cash balances held in current accounts wilh banks or investment managefs, and deposits with a maturity of less than three months. Debtors and creditors Debtors and creditors are measured initially at the transaction price and subsequently, for amounts re￿1vable or payable in more than one year. al amortised cost using the effective interest rate. Taxation The charity's income is exempt from corporation tax on the basis that it is applied for charitable purposes. Critlcal accounting judgements and key sources of estlmation uncertalnty In the application of the accounting policies, Trustees are required lo make judgement, estimates, and assumptions about the carrying value of assets and liabilities Ihat are not readily apparent from other sources. The estimates and undedying assumptions are based on historical experience and other factors that are considered lo be relevanl_ Actual results may differ from these estimates. The estimates 2nd underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimates are recognised in the period in which the estimate is revised if the revision affects ollly Ihal perii)d, or in Ihe period of the revision and future periods if the revision affected current and future periods. In the view of the Trustees, the only significant area of estimate or judgement in the financial statements is the valuation of investment properties. The Truslees use a qualified external company to advise on these valuations. 18 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 2. Donations received 2021 2020 Unrestricted funds Cash donations 11,000 3. Investment income 2021 2020 Unrestricted funds Income from quoted investments Rental income from investment properties Income from programme related investments Bank interest 876.242 2,636.265 37,261 3,390 624,629 2.899,384 33,879 42,610 3,553,158 3,600,502 4. Costs of raising funds 2021 2020 Unrestricted funds Investment managerllent costs Investrnent propety costs 305,263 504,642 217,691 989,973 809,905 1.207.664 19 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 Expenditure on charitable activities 2021 2020 Unrestricted funds Donatlons to Institutlons Strategic AspiTe (Association for Spinal Injury Research Rehabilitation and Reintegration) Phyllis Tuckwell Hospi￿ Care Thames Reach The Connection at St Martin-in-Ihe-Fields The Sullon Trust St Basil's UK Youth Royal Star and Garter Homes Conslfuction Youth Trust Mental Health Foundation Maudsley CUES 310,695 510,632 266,666 150,000 1,200,000 312,000 1.283.474 750.000 900,000 750.000 900,000 Intermediate Central YMCA Institute for Food. Brain and Behavior Kings College Londonlmaudsley Charity Royal Brompton & Harefield Hospitals The Koestler Twst Royal College of Art The Prince's Trust 70,000 100,000 100,000 100,000 100,000 750.000 150,000 Discretionary Grants Wneelpower Institute of Education and Helen Hamtyn Centre for Pedagogy Doorstep Library Think Forward Army Benevolent Fund Sl Calharine's College and Cambridge Women's Aid Behind Every Kick The Forward Trust Cambridge University Land Society British Wheelchair Sports Foundation Chance to Shine Foundation Change Please Demelza Hospice Care for Children Family Lives Grass Roots Multiple Sclerosis Society New Philanthropy Capital Prison Choir Project Tempus Novo The Big Give Trust Ltd 20,000 50,000 20.000 20.000 20.000 50,000 12,000 6,470 11.000 20,000 10,000 10,000 20,000 20,000 36,000 5.000 20,000 5,000 10.000 105,000 20,000 211.721 20 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 S. Expenditure on charitable activities (continued) 2021 2020 The Literacy Pirates Red Balloon Learner Cenlre Group Tuesday CIC 20,000 20,000 24,000 (3881 Emergency Grants Aspire- emergency appeal Barts Charity - Covid-19 Appeal Children's Society Emergency Appeal Family Lives Frimley Pafk Hospltal King's College Hospital Charity- Heroes Fund Maudsley Charity- Covid-19 Appeal MIND The Mix National Emergencies Trust NHS Charities Together Royal Brompton Hospital- Covid Appeal Royal Free- Covid-19 Appeal Surrey Community Foundation (Nov 18) Trussell Trust Women's Aid Young Minds St Basils Toynbee Hall New Philanthropy Capilal 50.000 100,000 100,000 100,000 25,000 100,000 100,000 100.000 100,000 100,000 200,000 100,000 100,000 50,000 100.000 100,000 100,000 100,000 100,000 50.000 Total grants 5,786,191 5,558,079 Support costs Accountancy. legal and administration fees Other professional fees Audit fees (note 6) Other support costs 339,461 45.803 19.545 3.808 195,763 63,224 19,800 5,697 Tolal support costs 408,617 284,484 Total charitable expenditure 6.194,808 5,842,563 21 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 6. Auditors remuneratlon 2021 2020 Fees payable lo Ihe charity s auditor for the audit of the charity's financial statements 15,900 17,880 Fees payable to the charity's auditor for other servKes 3,645 1.920 Total fees to auditor 19.545 19.800 7. Information regarding trustees and remuneration and ￿lated parties The Charity has no employees {2020.' no employees). No Trustee received remuneration during the year {2020'. £Nil). and no expenses were reimbursed to Trustees {2020'. £Nil). The Trustees have purchased indemnty insurance. A Trustee of the Charity. Jonathan Brinsden, is a partner of BDB Pitmans LLP,which administers the Charity- Fees invoiced to Ihe charity during the year were £269,447 (2020.. £265,445), allocated to charitable expendilufe. A lolal of £298.371 12020.. £230,798} was paid to BDB Pilmans LLP during the year. of which £49,950 related lo costs for 2020. At 31 March 2021, a balance of £17,515 was outstanding. All figures are inclusive of VAT. Investments 2021 2020 Charity and Group Quoted investments Investment properties 56.887,209 31.222,500 38.419,800 49,821,000 88.109,709 88,240,800 Re¢on¢iliation of investments Charity and Group Quoted investments Investment properties Total At 31 March 2020 Purchases at cost Disposals Change in fair value 38.419.800 88,240,800 37.837,291 37,837.291 (30,602,664) (14,833,010) {45,435,6741 11,232,782 {3,765.490) 7,467,292 49,821,000 At 31 March 2021 56.887.209 31.222,500 88.109,709 The investment property porttolio has been valued by the Trustees based on a detailed external professional valuation of £31,222,500 as at 31 March 2021. In detem)ining the fair value of the investment Properties, a number of key estimates and assumptions have been made. particularly in relation lo estirllaled yields and future rental income. 22 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 Programme related investments Charity and Group 2021 2020 Thames Reach Commonweal Housing Resonance - Women in Safe Homes (WISH) Fund 831,806 990,250 127,500 831,806 990,250 Total programme related investments 1,949,556 1.822,056 10. DebtoryJ 2021 Group 2020 Group 2021 Charity 2020 Charity Trade debtors Other debtors Prepayments Intercompany deblor 248,229 260,189 135.601 275.779 260,516 84,023 248,229 260,189 135.601 275,779 260,516 84,023 20,846 Tolal debtors 644.018 620,318 644.018 641.164 11. Creditors Due vAthln one year 2021 Group 2020 Group 2021 Charity 2020 Charity Trade creditors VAT Accruals and deferred income Accrued grant commitments Other creditors Amounts owed to subsidiary 151.251 40,252 447.402 2.473,169 135.813 181,384 99.015 738.178 1,425.464 75.0(K) 149,850 181.372 40.252 99,015 447,402 738,178 2.473,169 1,425,464 135,813 75,000 86,412 3.247.887 2.519.041 3,332.898 2,519,029 Deferred income at the year end tolaled £420,520 (2020.. £716.478). This related to rents received in advance. Due greater one year 2021 Group 2020 Group 2021 Charity 2020 Charity Accrued grant commitments 2.055,919 1,833,088 2,055.919 1.833,088 23 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 12. Subsidiary resvlts The Charity has one subsidiary. Chelsea Estates Limiled is a private company limited by share capital registered in England and Wales with number 00264585. The Charity owns 100 % of the issued shares in the company and the summary of results of the company is below. 2021 2020 Tumover Operating expenses 1,360.786 (26.880) 1116,743) Operaling loss Interesl re￿1vable Interest payable 1,333,906 {116,743) 189 1884) (200) Net profit l(loss) 1,333,717 (117,438) Distribution of reserves lo Monday Charitable Trust {1.242.7411 Opening reserves 25,080 142,518 Closing rese￿eS 116.056 25,080 Current assets Current liabilities 117,458 (1.402) 45,939 120.859) Nel assets 116.056 25,080 13. Funds movements 1 April 2020 Income Expenditure Gains, losses, transfers 31 March 2021 Unreslricled general fund Unreslricled subsidiary fund Expendable endowment fund 3,564.147 1.360.797 (6,977.633} 3.413,486 (27.0801 (1,242.7411 116,056 5.296,547 95,140,306 25.080 89.843.759 89.868,839 4.924,944 17.004,7131 7,467,292 95,256,362 1 April 2019 Incomg Expenditure Gains. losses, transfers 31 March 2020 Unrestricted general fund Unrestricted subsidiary ftjnd Expendable endowment fund 3,789 142,518 92.222,535 3.600.313 189 16,932,600) {117.627) 2.368.498 25.080 12,378,776) 89,843,759 93.328.842 3.600,502 ri.050,227) {10,2781 89,868.839 24 THE MONDAY CHARITABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2021 14. Net assets over funds12021) Unrestricted funds Expendable endowment fund Total funds 2021 Group Fixed assets Net current assets Long term creditors 90,059.850 7,136.375 (2.055,919) 90,059,850 7.252,431 12,055.919) 116,056 116.056 95.140.306 95,256,362 Unrestricted funds Expendable endowment fund Total funds 2021 Charity Fixed assets Net current assets Long term creditors 90,059,850 7,136,375 {2,055,919) 90,059,850 7,136,375 {2.055,919) 95.140.306 95.140.306 Net assets over funds12020) Unrestricted funds Expendable endowment fund Total funds 2020 Group Fixed assets Net current assets Long term credrtors 90,063,981 1,612,866 {1,833.088) 90,063,981 1,637,946 {1.833,0881 25,080 25.080 89.843.759 89,868,899 Unrestricted funds Expendable endowment fund Total funds 2020 Charity Fixed assets Net current assets Long term creditors 90,063.981 1.612,866 11.833.088) 90,063,981 1,612,866 (1.833,088) 89,843.759 89.843,759 25