**Charity registration number 1188372** **THE THEODORE MAXXY CHARITABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Ms P Bell| |---|---| ||Ms C Keating (appointed 9 November 2022)| |**Charity number**|1188372| |**Auditor**|Royce Peeling Green Limited| ||The Copper Room| ||Deva City Office Park| ||Trinity Way| ||Manchester M3 7BG| |**Investment manager**|St James's Place Wealth Management| ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Independent auditor's report|4 - 6| |Statement of financial activities|7| |Balance sheet|8| |Statement of cash flows|9| |Notes to the financial statements|10 - 14| ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 5 APRIL 2022**_ The Trustees present their annual report and financial statements for the year ended 5 April 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Trust Deed, the Charities Act 2011 and "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)". ## **Objectives and activities** The Trust was established for charitable purposes only. The Trustees have an unfettered discretion to dispose of either income or capital funds for charitable purposes. The Trust is to utilise its investment income to support a broad range of charitable. The Trustees are to focus their donations on charitable organisations in order to ensure that public benefit requirements are satisfied. ## **Constitution** The Theodore Maxxy Charitable Trust was constituted by Trust Deed on 16 November 2018. ## **Registration** The Trust was registered with the Charity Commission on 5 March 2020 under number 1188372. ## **Establishment** The Trust commenced with a monetary sum of £10 on 26 February 2020. On 9 April 2020 the settlor transferred investments of £5,513,038 to the order of the Trust; further investments amounting to £533,423 were transferred on 30 April 2020. All the assets of the Trust comprise unrestricted assets. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake. ## **Financial review** The Trust’s results, as shown in the statement of financial activities, are considered satisfactory. - There was investment income during the period amounting to £240,095 (2021: £219,871); - Grants of £151,800 were approved during the accounting period (2021: £Nil); - Investment management charges were £19,852 (2021: £Nil); - Administrative costs were £49,688 (2021: £14,170); and - The capital value of the Settlement’s investments decreased during the period by £42,666 (2021: increased by £1,344,184). The Trust's total net assets as shown in the balance sheet at 5 April 2022 have decreased by 0.3%from £7,596,356 to £7,572,445 at the period end. ## **Reserves policy** The Trustees have an aim of distributing all income generated by the capital assets of the Trust for charitable purposes in the year in which such income is received. In addition, where there are further applications which merit the Trust’s support, the Trustees may make donations out of the Trust’s reserves which comprises income surpluses brought forward and the Trust’s capital fund. The Trustees plan to hold three meetings each year when decisions as to the distribution of income received during the preceding months will be made. At any one time, therefore, the Trustees will have in hand accumulations of up to eight months income as short term reserves, because of the continuing intention to distribute them at the next meeting. - 1 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_ Due to further COVID-19 disruption there was only one Trustee meeting in the year, held in August 2021. In accordance with the above policy, all income in hand at the date of this balance sheet will, to the extent that it is not required to meet the administrative and other expenses of the Trust, be distributed for charitable purposes within six months of the balance sheet date. Trust funds may be invested in such stocks, shares, funds and securities or other investments as the Trustees in their absolute discretion think fit. The Trustees’ investment policy pursuant to the Trustees Act 2000 is to achieve a balance between income and capital growth for investment purposes and to only distribute income as charitable donations. Capital growth is generally to generate future investment income growth. ## **Trustee matters** The Trustees who served during the year and up to the date of signature of the financial statements were: Ms P Bell MGL Trust Corporation Limited (Resigned 9 November 2022) Ms C Keating (Appointed 9 November 2022) Power to appoint new or additional Trustees was vested in the settlor but is now vested in the Trustees. When vacancies arise for Trustees, the existing Trustees identify individuals with appropriate qualifications and experience to approach to act. The Trustees receive no remuneration from the Trust. Charlotte Keating was a director of MGL Trust Corporation Limited and its representative on the trustee board and also an employee of Linder Myers which is remunerated for professional services provided in the administration of the Trust. ## **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 requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 2 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_ ## **Disclosure of information to auditor** Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees' report was approved by the Board of Trustees. .............................. Ms P Bell **Trustee** Date: ............................................. - 3 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF THE THEODORE MAXXY CHARITABLE TRUST** ## **Opinion** We have audited the financial statements of The Theodore Maxxy Charitable Trust (the ‘Trust’) for the year ended 5 April 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 5 April 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - 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 Trust 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 the Trust’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 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which 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; or - we have not received all the information and explanations we require for our audit. - 4 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE THEODORE MAXXY CHARITABLE TRUST** ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees' responsibilities, 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 Trust’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 cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. - At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the charity and how the Trustees seek to comply with them. This helps us to make appropriate risk assessments. - During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration by, for example, reviewing Trustee Minutes and other documentation. - We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including: - I. Review of controls set in place by the Trustees - I. Enquiry of the Trustees as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist - II. Challenge of Trustee assumptions with regard to accounting estimates - III. Identification and testing of journal entries, particularly those which may appear to be unusual by size or nature. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements, or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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. - 5 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE THEODORE MAXXY CHARITABLE TRUST** ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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. **Martin Chatten (Senior Statutory Auditor) for and on behalf of Royce Peeling Green Limited Chartered Accountants Statutory Auditor** ......................... The Copper Room Deva City Office Park Trinity Way Manchester M3 7BG Royce Peeling Green Limited is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. - 6 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 5 APRIL 2022**_ |**Notes**
**Income from:**
Donations and legacies
**3**
Investments
**4**
**Total income**
**Expenditure on:**
Raising funds
**5**
Charitable activities
**6**
**Total expenditure**
Net gains/(losses) on investments
**9**
**Net movement in funds**
Fund balances at 6 April 2021
**Fund balances at 5 April 2022**|**2022**
**£**
-
240,095
240,095
19,852
201,488
221,340
(42,666)
(23,911)
7,596,356
7,572,445|**2021**
**£**
6,046,471
219,871| |---|---|---| |||6,266,342| |||-| |||14,170| |||14,170| |||1,344,184| |||7,596,356
-| |||7,596,356| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities and relates to Unrestricted funds. - 7 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **BALANCE SHEET** ## _**AS AT 5 APRIL 2022**_ |**Notes**
**Fixed assets**
Investments
**10**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
**Net current assets**
**Net assets**
**Income funds**
Unrestricted funds|**2022**
**£**
**£**
7,328,127
117,821
146,947
264,768
(20,450)
244,318
7,572,445
7,572,445|**2021**
**£**
**£**
7,390,645
91,895
118,916
210,811
(5,100)
205,711
7,596,356
7,596,356|**2021**
**£**
**£**
7,390,645
91,895
118,916
210,811
(5,100)
205,711
7,596,356
7,596,356| |---|---|---|---| ||||7,596,356| ||||7,596,356| The financial statements were approved by the Trustees on ......................... .............................. Ms P Bell **Trustee** - 8 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 5 APRIL 2022**_ |**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**15**
**Investing activities**
Proceeds of investment disposals
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
**£**
(205,990)
19,852
214,169
234,021
-
28,031
118,916
146,947|**2021**
**£**
-
127,976|**£**
(9,060)
127,976
-
118,916
-
118,916| |---|---|---|---| - 9 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 APRIL 2022**_ ## **1 Accounting policies** ## **Charity information** The Theodore Maxxy Charitable Trust is a Trust, established by Trust Deed on 16 November 2018. ## 1.1 **Reporting period** The Trust commenced with a monetary sum of £10 on 26 February 2020. The comparative financial information relates to the period from that date until 5 April 2021 which is more than a twelve month period. The current period data covers the twelve months ended 5 April 2022. ## **1.2 Accounting convention** The financial statements have been prepared in accordance with the Trust's Trust Deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Trust is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.3 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.4 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. ## **1.5 Income** Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. ## **1.6 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 10 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **1.9 Financial instruments** The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities are initially recognised at transaction. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled. ## **2 Critical accounting estimates and judgements** In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both periods. ## **3 Donations and legacies** ||**2022**|**2021**| |---|---|---| ||**£**|**£**| |Settlor donated funds|-|6,046,471| - 11 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_ ## **4 Investment income** |Income from listed investments
**5**
**Raising funds**
Investment management charges|**2022**
**£**
240,095
**2022**
**£**
19,852|**2021**
**£**
219,871| |---|---|---| |||**2021**
**£**
-| ## **6 Charitable activities** |Grant funding of activities
Governance costs|**2022**
**£**
151,800
49,688
201,488|**2021**
**£**
-
14,170| |---|---|---| |||14,170| The Charity utilises its investment income to support a broad range of charitable activities. The Trustees focus their donations on charitable organisations in order to satisfy public benefit requirements. Governance costs comprise professional fees payable to Linder Myers Limited of £44,338 (2021: £9,070) and audit fees of £5,350 (2021: £5,100). ## **7 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year. ## **8 Employees** The Charity has no employees (2021: none). ## **9 Net gains/(losses) on investments** |Revaluation of investments
Gain/(loss) on sale of investments|**2022**
**£**
(43,421)
755
(42,666)|**2021**
**£**
1,344,184
-| |---|---|---| |||1,344,184| - 12 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 5 APRIL 2022**_ ## **10 Fixed asset investments** |**Cost or valuation**
At 6 April 2021
Valuation changes
Disposals
At 5 April 2022
**Carrying amount**
At 05 April 2022
At 05 April 2021
**11**
**Financial instruments**
**Carrying amount of financial assets**
Instruments measured at fair value through profit or loss
**12**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**13**
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**Listed**
**investments**
**£**
7,390,645
(43,421)
(19,097)
7,328,127
7,328,127
7,390,645
**2022**
**2021**
**£**
**£**
7,328,127
7,390,645
**2022**
**2021**
**£**
**£**
117,821
91,895
**2022**
**2021**
**£**
**£**
10,000
-
10,450
5,100
20,450
5,100| |---|---| ## **14 Related party transactions** During the prior period the Settlor, who is also a Trustee, donated funds totalling £6,046,471 to the Trust. - 13 - ## **THE THEODORE MAXXY CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 5 APRIL 2022**_ |**15**
**Cash generated from operations**
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Investments donated in specie
Gain on disposal of investments
Fair value gains and losses on investments
Movements in working capital:
Increase in creditors
**Cash absorbed by operations**|**2022**
**2021**
**£**
**£**
(23,911)
7,596,356
(240,095)
(219,871)
-
(6,046,461)
(755)
-
43,421
(1,344,184)
15,350
5,100
(205,990)
(9,060)| |---|---| ## **16 Analysis of changes in net funds** The Trust had no debt during the year. - 14 -