## **The Three Squirrels Trust CIO** 

Registered Charity Number 1185828 

## **Report and Financial Statements** 

## for the period from 15[th] October 2019 to 5[th] April 2021 

Trustees: Mr. C. W. Humphreys Mrs P. M. Humphreys 

Office: Hazel End Farm Hazel End Bishop’s Stortford CM23 1HG 

Stockbrokers: Smith & Williamson 25 Moorgate London EC2R 6AY Solicitors: HCR Hewitsons 50 - 60 Station Road Cambridge, CB1 2JH 

## **Trustees’ Report** 

On  15[th] October  2019,  the  Charity  was  entered  onto  the  Register of Charities with the Registered Charity Number 1185828. The Charity is a CIO established for general charitable purposes. 

The  Trustees  have  decided  that  it  is  appropriate  for  the  Charity  to prepare its accounts on a receipts and payments basis as it is not classed as a company and its annual income is below £25,000. Its resources derive from a single gift of £100,000, on 9 December 2019, which is invested  in marketable  securities  under  the  management of  Smith  & Williamson. 

During the first accounting period of the Charity, almost 18 months, the Trustees made four donations totalling £5,000. As income from investments during the period amounted to only £1,538, the balance was charged to capital. However, as at 5 April 2021, the value of the fund was £108,590 so costs and donations had been more than covered by the capital appreciation of the fund. 

As to risk management, the Trustees consider that the performance of the charity’s investments constitutes its main risk. The portfolio is spread over  24  separate  investments,  with  a  wide  geographical  coverage. However, in the longer term it is the Trustees’ intention to limit grants to 

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available income except where special circumstances arise and, with that in mind, the brokers have been asked to adjust the portfolio with a view to improving the yield. 

There were no expenses in the period apart from brokers’ fees of £2,435. 

As this is the charity’s first Report, the Principles and Procedures which were adopted by the Trustees on 18 October 2019 are reproduced below. Grants  in the  initial period  have been limited  to charities  which  are already well known to the Trustees. Over time, it is their intention to broaden the list of recipients but, as the charity’s income is limited to that arising from its investments, it will be a gradual process. 

Dated 27 January 2022 

Signed: Petronella Humphreys Trustee 

## **The Three Squirrels Trust CIO** 

Registered Charity Number 1185828 

## **Capital Statement as at 5th April 2021** 

|9.12.2019 Opening cash<br>Portfolio return before income and outgoings<br>14,487<br>Less defcit on income account<br> (5,897)<br>Smith & Williamson valuation (as at 5 April 2021)<br>Represented by<br>Cash<br>Bonds & Equities (24 holdings)<br>Closing value<br>**Income Account to 5th April 2021**<br>**Receipts**<br>Dividends and interest<br>**Less outgoings**<br>Brokers’ charges including VAT<br>(2,435)<br>**Grants 8.12.20**<br>HF Trust<br>1,000<br>Demand Design & Manufacture for Disability<br>1,000|100,000<br>8,590<br>108,590<br>8,821<br> 99,769<br>108,590<br>1,538|
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British Red Cross, Yemini Appeal 2,000 St Clare West Essex Hospice 1,000 (5,000) (7,435) Deficit on income account (5,897) 

## **Principles and Procedures of The Three Squirrels Trust Adopted by the Charity Trustees on 18 October 2019** 

## **1. ABOUT THIS POLICY** 

1.1  This policy applies The Three Squirrels Trust ( **Charity** ) 

1.2  The charitable objects of the Charity are to advance such charitable purposes as the Trustees see  fit from time to time, principally by making grants. ( **Objects** ). 

1.3  The  Charity  is  governed  by  the  charity  trustees  of  the  Charity ( **Charity  Trustees** )  who have a  duty, acting  at all times  in the best interests of the Charity, to apply  the Charity’s assets to advance the Objects and have ultimate responsibility for all grant-making decisions. 

1.4  The  purpose  of  this  policy  is  to  set  out  the  principles  and procedures that guide the Charity Trustees when they are making grants to further the Objects. It also provides information about the Charity’s grant-making process to anyone who is applying to the Charity, or would like to apply to the Charity, for a grant. 

1.5  In this policy references to persons who are “connected” with a Charity Trustee mean: 

**(a)** a child, stepchild, grandchild, parent, brothers or sister of a Charity Trustee; 

**(b)** the spouse, unmarried partner or civil partner of a Charity Trustee or of any person falling within paragraph (a) above; 

**(c)** any person who is in a business partnership with a Charity Trustee or any person who is in a business partnership with any person falling within paragraph (a) or (b) above; and 

**(d)** any  company,  business,  trust  or  organisation  in  which  a Charity Trustee (or any other person connected to them) has an interest as a beneficiary or through ownership, control or influence. 

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## **2. OUR FUNDING PRIORITIES** 

2.1  The Charity Trustees are keen to support activities that advance the Objects in an effective way. However, they recognise that the funds available to distribute each year will be limited. The Charity Trustees’ initial grant making priorities have yet to be determined but will 

(a) focus  on specific  projects, as opposed  to  general  funding, particularly those of a size where the Charity’s contribution can make a material difference and 

(b) as  between  equal  claims,  lean  towards  projects  that  are geographically closer to the Charity’s base 

and will be reviewed each year and publicised in suitable ways. 

2.2  The  Charity  Trustees  will  occasionally  award  grants  that  fall outside the grant making priorities mentioned above, provided that they are satisfied that the grant will further the Objects and is an appropriate use of the Charity’s funds. 

## **3. WHO CAN APPLY FOR A GRANT** 

3.1 The Charity Trustees welcome proposals that support their grant making priorities from charities throughout England & Wales and, in special circumstances, elsewhere. They will not normally make grants to individuals. 

3.2 The Charity Trustees will award grants to organisations based in the United Kingdom (UK) only if: 

(a) they are registered as charities with the Charity Commission for England and Wales or the Office for the Scottish Charity Regulator] or the Charity Commission for Northern Ireland; or 

(b) they qualify as charities under the law of England and Wales, Scotland or Northern Ireland, but are not required to register with the relevant charity regulator as above. 

3.3 The Charity Trustees will not award grants to an applicant that has previously submitted a proposal where the applicant failed the Charity Trustees’ due diligence checks and the issues identified at that time have not been addressed. 

3.4 The Charity Trustees do not intend to make grants to organisations which are not charities. 

## **4. WHAT WE WILL FUND** 

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4.1 The Charity Trustees will meet yearly or half-yearly and expect to decide to make grants in amounts which reflect the income received in the previous period. 

4.2 All grants awarded by the Charity must be used to cover costs that are directly connected to carrying out the charitable activities that the Charity Trustees have agreed to fund ( **Funded Activities** ). 

## **5. HOW TO APPLY FOR A GRANT** 

5.1 Unless the Trustees decide otherwise, all grant proposals must be made in writing and in sufficient detail to explain how the grant will be used. In particular, a proposal must: 

(a **)** demonstrate how the Funded Activities will benefit the intended beneficiaries and advance the Charity’s grant making priorities; 

(b) set out how use of the grant will be managed; 

(c) give details of the key individual(s) who will be responsible for the management of the grant and delivering the proposed activities; 

(d) provide a budget for the proposed Funded Activities; 

(e) give details of any other funding that has been awarded or that is being sought for the activities to be funded by the grant. 

5.2 In  addition,  there  must  also be provided  with  the proposal  the applicant’s registered charity number; if registered, or  evidence of its charitable status (such as an HMRC reference number, if not plus any further information the Trustees may require under Article 8.2. 

## **6. HOW WE MAKE DECISIONS ABOUT GRANTS** 

6.1  The  Charity  Trustees  have  ultimate  responsibility  for  all  grantmaking decisions and for ensuring that all funds awarded are used to advance the Objects. 

6.2  The Charity Trustees must declare the nature and extent of any interest, direct or indirect, which could, or could be seen to, prevent them  from making  a grant decision only  in the best interests of the Charity. Situations in which a conflict of interest may arise include where a Charity Trustee has a duty of loyalty to a third party (such as a grant applicant) that conflicts with their duty to the Charity. Any such conflict of interest must be declared and managed by the Charity Trustees in accordance with the Charity’s conflicts of interest policy. 

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6.3 Individual Charity Trustees may be asked to review grant proposals and make recommendations to the Charity Trustees. 

6.4 Before making a decision to award a grant, the Charity Trustees may ask anyone they consider has relevant expertise or experience to provide them with information and to join in their discussions, but not to take any part in the final decision. 

6.5  In all cases where a recommendation is made to them to award a grant, the Charity Trustees may (in their absolute discretion) refuse to approve that recommendation, particularly if they consider that a grant would not be an effective way to further the Objects, or would conflict with the Charity’s policies or interests. 

6.6  The  Charity  Trustees  may  take up  to [two  months]  to  consider grant proposals and decide if they will award a grant or not. 

6.7 The  Charity  Trustees  will  inform  applicants  of their decision  in writing. 

6.8 If an applicant is awarded a grant, the Charity Trustees will: 

(a) set out the key terms of the grant and any conditions that are attached to it in a grant agreement or letter; and 

(b) if appropriate, ask the applicant to sign the grant agreement or letter to indicate that they accept the terms and conditions. 6.9 If the Charity Trustees decide not to award a grant for a proposal, the Charity Trustees are not obliged  to  give  the  applicant  reasons  for their decision. 

6.10 The Charity Trustees’ decision whether to award a grant is final. 

## **7. GRANTS TO CHARITY TRUSTEES OR CONNECTED PERSONS** 

7.1  The Charity’s  trust deed permits a Charity Trustee or any person connected to them to receive a benefit from the Charity as a beneficiary of the Charity, provided that it is available generally to the beneficiaries of the Charity. This may arise if: 

(a) An application for a grant is made which will, even indirectly, benefit a Charity Trustee or a person connected with them; or 

(b) A Charity Trustee is connected with another charity which applies for a grant. 

7.2 If an application for a grant is made where the Charity Trustee may benefit or is connected to the applicant in the circumstances set out 

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above, the Charity Trustee concerned must declare the situation as a potential conflict of interest or duty. They may participate in the decisionmaking process unless the other Charity Trustees consider it would be inappropriate. 

## **8. DUE DILIGENCE** 

8.1  When the Charity Trustees are considering a grant-funding proposal, they will undertake such due diligence checks on the applicant as they consider appropriate. The checks that are undertaken will vary according to the Charity Trustees’ assessment of any risks associated with the proposal or the applicant. 

8.2  Due diligence may include requesting details of, and taking such steps as the Charity Trustees consider to be reasonable to scrutinise, any of the following: 

- (a) the applicant’s governing document; 

- (b) the applicant’s latest accounts and financial position; 

(c) the identity of the applicant’s directors, trustees, executive committee or other key personnel, in particular, to seek to establish whether they are authorised to act in that capacity; 

(d) the applicant’s governance and operational structures and practices; 

   - (e) the applicant’s internal financial controls; 

- (f) relevant operational policies and procedures that the 

- applicant has in place; 

   - (g) the applicant’s aims and values; and 

   - (h) any external risk factors that might affect the proposal. 

## **9. REPORTING REQUIREMENTS AND MONITORING** 

9.1  The Charity Trustees may (dependent on the size of the grant) take steps to monitor the use of the grant and verify that the grant is used for the purposes that have been agreed. The arrangements for monitoring will vary  according to the nature and size of the grant but may, for example, include a request for a written report showing the complete and effective  use  of  the  grant.  The  Charity  Trustees  will  always  seek  to ensure that the arrangements are appropriate and proportionate. 

- 9.3  If  appropriate,  the  Charity  Trustees  may  also  visit  a  recipient 

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charity  to  view  the  grant-funded  activities  and  interview  individuals involved in running those activities. 

9.4  Basic  monitoring  requirements  will  be  set  out  in  the  grant agreement  or  letter.  However,  the  Charity  Trustees  may  take  any additional steps to monitor the use of grant funds that they consider appropriate. 

## **10. CLAWBACK AND REPAYMENT** 

The Charity Trustees may require repayment of all or part of the grant if: 

(a) the project or purpose for which it was awarded does not proceed; 

(b) part of the grant remains unused when the activities that the grant was intended to fund have been completed; or 

**(c)** the grant is used for a purpose other than that which has been agreed. 

## **11. REVIEWING AND AMENDING THIS POLICY** 

11.1  This policy will be reviewed by the Charity Trustees annually. 

11.2  The Charity Trustees may vary the terms of this policy from time to time. 

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