2021-10-31-accounts - The London Insurance Market Charitable Trust

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

The London Insurance Market Charitable Trust

Unaudited

Annual report and financial statements for the period ended 31 October 2021

Registered Charity No. 1190714

THE LONDON INSURANCE MARKET CHARITABLE TRUST Contents

	Page
Trustees’ annual report	1-3
Independent Examiner’s report	4
Statement of financial activities	5
Balance sheet	6
Notes to the financial statements	7-10

THE LONDON INSURANCE MARKET CHARITABLE TRUST Trustees’ Annual Report For the period ended 31 October 2021

The Trustees present their report along with the financial statements of the Charity for the period ended 31 October 2021.

OBJECTIVES AND ACTIVITIES

The purpose of the Charity

The purpose of the Charity, as set out in its objects within the constitution, is to fund grant scholarships to students who are seeking a career in the Insurance and Risk Management industries.

Activities in the period

In April 2019, the Charity entered into an agreement with the Bayes Business School of City, University of London to fund two annual scholarships for the MSc Insurance and Risk Management course for a three year period. The scholarships are each for £10,000, with the total value of the agreement being £60,000.

In September 2021, this funding commitment was renewed for a further three years at the same value.

The Charity also entered into a new agreement with the University of East Anglia to fund two three year scholarships, which are available to students studying certain courses offered by the University. The courses are focused on environmental science or geography, and the scholarship applicants have to answer the question: “How can the risk insurance industry drive mitigation and adaptation to reduce the impacts of climate change and achieve Net Zero carbon emissions by 2050?”. The total value of the agreement is £30,000.

Under each agreement, the universities are responsible for the award of the scholarships with the Charity having oversight of the chosen scholars to ensure that they meet the scholarship ethos.

The Charity raises funds by running an annual Golf Day, with the participants being mainly drawn from the insurance industry. For 2021, the main Golf Day sponsor was Lloyd’s and the Charity is grateful for the significant support provided. Axa XL, Liberty, Aon, Axis and Sompo also supported the day.

Public benefit

The Trustees have had regard to the Charity Commission’s guidance on public benefit and will consider that guidance in their future activities.

FINANCIAL REVIEW

Financial performance

The Statement of Financial Activities show the full cost of the two agreements entered into in the year. Under charity accounting, the cost of the agreements is reflected in the financial statements when the agreements are entered into, rather than when they are paid. Hence there is a large expense shown in the years in which such agreements are entered into, and no expense in other years. Details of the payments actually made in the year are given in the supporting note.

Fundraising income of £76,105 relates to the annual Golf Day and includes entry fees, proceeds from the auction held on the day and sponsorship income. In total 23 teams participated. The cost of the day amounted to £35,005, resulting a record surplus of £41,100.

Reserves

No reserves policy has been set. Other than funding scholarships, the Charity has minimal outgoings

THE LONDON INSURANCE MARKET CHARITABLE TRUST Trustees’ Annual Report (continued) Period ended 31 October 2021

and no staff or premises; as the scholarship commitments are all recognised as liabilities, the Trustees do not consider it is necessary to develop a reserves policy.

The Charity has built up reserves over its existence as the income generated from the annual Golf Days has exceeded the cost of the City scholarships. The Charity has therefore looked expand the number of scholarships funded which resulted in the agreement with the University of East Anglia entered into this year.

The Charity will continue to explore additional opportunities to utilise its reserves.

Future developments

It is expected that the Charity will continue its activities in the same manner as in previous years.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity was formed as a charitable trust on 15 October 2019; its governing document is its trust deed, which was last amended on 20 July 2020.

The trust deed sets out the charitable objects as being “advancing for the public benefit the academic and/or vocational education of young people in financial need in such ways as the trustees think fit, including (but not limited to) by funding and/or awarding scholarships tenable by prospective or current students of the degree of master of science in Insurance and Risk Management at City, University of London (or any academic or vocational qualification awarded by any university, college or institution of higher or further education in the related disciplines of insurance and risk management and/or actuarial science as the trustees see fit)”.

The Charity was formally registered with the Charity Commission on 4 August 2020.

Appointment of trustees

Trustees are appointed by the current trustees as a body.

Management

The Charity has no staff and is managed by its trustees.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the activities and finances of the charity, and are satisfied that systems are in place to mitigate those risks.

Grant making policy

The Charity doesn’t have a formal grant making policy. As detailed above, the trust deed limits the grant making activity to scholarships in specific areas.

REFERENCE AND ADMINISTRATIVE INFORMATION

Name and Registered Number of Charity

The Charity is registered as “The London Insurance Market Charitable Trust” and its registered number is 1190714.

Principal Address

The principal address of the Charity is Machan, Machan Drive, Gillan, Cornwall TR12 6HG.

THE LONDON INSURANCE MARKET CHARITABLE TRUST Trustees’ Annual Report (continued) Period ended 31 October 2021

The Charity’s email address is: mikehammond1@outlook.com

Names of Trustees

The Trustees who acted during the period and subsequently were as follows:

Michael Paul Hammond Stephen Matanle (resigned 17 November 2020) John Turner Mark Gregory Richard Dudley (appointed 20 October 2021) Tim Pritchard (appointed 20 October 2021) Douglas Markey (appointed 20 October 2021)

Fundraising

The Charity hosts an annual Golf Day as its primary fundraising activity. Invitations to the Golf Day are extended to individuals known to the trustees and previous attendees rather than to the general public. Given the limited extent to these activities, the charity does not subscribe to any fundraising standards.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable regulations).Under that law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period.

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 accounting estimates that are reasonable and prudent;
State whether applicable accounting standards have been followed; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records which are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

M P Hammond Chair of the Trustees

Date

THE LONDON INSURANCE MARKET CHARITABLE TRUST Independent examiner’s report For the period ended 31 October 2021

I report to the trustees on my examination of the accounts of The London Insurance Market Charitable Trust for the period ended 31 October 2021, which comprise the Statement of Financial Activities, the Balance Sheet and the notes to the accounts, including a summary of significant accounting policies.

Respective responsibilities of trustees and examiner and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Name: Julie Mutton

Fellow of The Institute of Chartered Accountants in England & Wales

Address: 4th Floor Cumberland House 15-17 Cumberland Place Southampton Hampshire SO15 2BG

31 January 2022

THE LONDON INSURANCE MARKET CHARITABLE TRUST Statement of financial activities For the period ended 31 October 2021

Notes Income Fundraising Income 6 Other income Total Expenditure Raising funds 6 Charitable activities Total Net (deficit) / income General funds brought forward Total funds carried forward	1 October 2020 to 31 October 2021 £ 76,105 500 76,605 35,005 94,680 129,685 (53,080) 166,473 113,393	Year ended 30 September 2020 £ - -

		- 13,770
		13,770

		(13,770)
		180,243
		166,473

All activities are continuing.

All funds are unrestricted.

THE LONDON INSURANCE MARKET CHARITABLE TRUST Balance sheet As at 31 October 2021

Notes Current assets Cash at bank and in hand Creditors: Amounts falling due within one year 9 Net current assets Creditors: Amounts falling due after more than one year 10 Total net assets The funds of the charity: Unrestricted funds	31 October 2021 £ 206,813 (38,420) 168,393 (55,000) 113,393 113,393 113,393	30 September 2020 £ 186,473 (20,000)
		166,473 -
		166,473
		166,473
		166,473

Approved and signed on behalf of the Trustees

M P Hammond, Chair of Trustees

Date of approval:

THE LONDON INSURANCE MARKET CHARITABLE TRUST Notes to the financial statements For the period ended 31 October 2021

1 Status

The London Insurance Market Charitable Trust (“the Charity”) is a charitable trust governed by its trust deed dated 15 October 2019 and modified on 20 July 2020. The charity number is 1190714. Its principal address is Machan, Machan Drive, Gillan, Cornwall TR12 6HG.

2 Accounting policies

The principal accounting policies are summarised below.

Basis of preparation

The accounts have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) including Section 1A, and with the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102 (effective 1 January 2019). The financial statements are also prepared in accordance with the Charities Act 2011.

The charity is a public benefit entity as defined by FRS 102.

Fund accounting

The funds held as at the period end are in the form of general funds. The charity has had no restricted income in the period.

Going concern

The trustees are confident that the Charity will continue to be a going concern and the financial statements have been prepared on this basis.

Income

All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income, when its receipt is probable and when it can be measured with reasonable certainty.

Golf Day fundraising income is recognised at the later of receipt and the date of the event.

Expenditure

All expenditure is accounted for on an accruals basis.

Grants to fund sponsorships are recognised in full when agreement is reached with the relevant educational establishment.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the Charity becomes a party to the contractual provisions of the instrument.

Trade and other creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Creditors are subsequently measured at amortised cost using the effective interest rate method.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and short-term deposits with an original maturity of three months or less.

THE LONDON INSURANCE MARKET CHARITABLE TRUST Notes to the financial statements (continued) For the period ended 31 October 2021

3 Employee information

The Charity had no (2020 – no) employees in the period.

4 Trustees

No trustee was remunerated in the current or prior period. No expenses were reimbursed to trustees in the current to prior period.

5 Taxation

The Charity is exempt from tax on income and gains falling within sections 524 to 536 of the Income Taxes Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

6 Fundraising Event – annual Golf Day

Event income Event expenses Event profit	1 October 2020 to 31 October 2021 £ 76,105 (35,005) 41,100	Year ended 30 September 2020 £ - -
		-

There was no golf day in 2020 due to COVID.

7 Charitable activities

Grants – see note 8 Governance costs Legal and professional fees Accountancy fees Independent examination fees	1 October 2020 to 31 October 2021 £ 90,000 2,340 1,440 900 4,680 94,680	Year ended 30 September 2020 £ -
		13,770 - -
		13,770
		13,770

The independent examination fees and the accountancy fees are both payable to Smith & Williamson LLP.

THE LONDON INSURANCE MARKET CHARITABLE TRUST Notes to the financial statements (continued) For the period ended 31 October 2021

8 Grants - analysis of institutional grants awarded in the year

Period ended 31 October 2021 Year ended 30 September 2020	City, University of London £ 60,000 -	University of East Anglia £ Total £ 30,000 90,000 - -

The institutional grants relate to the funding of scholarships at City, University of London and University of East Anglia for students who have an interest in the Insurance and Risk Management industries.

The scholarships are administered and awarded by the relevant universities.

9 Creditors: falling amounts due within one year

Accruals Grants payable – note 11	31 October 2021 £ 3,420 35,000 38,420	30 September 2020 £ - 20,000
		20,000

10 Creditors: amounts falling due after more than one year

Grants payable – note 11	31 October 2021 £ 55,000 55,000	30 September 2020 £ -
		-

THE LONDON INSURANCE MARKET CHARITABLE TRUST Notes to the financial statements (continued) For the period ended 31 October 2021

11 Grants payable

Period ended 31 October 2021 Grant commitment brought forward Grants awarded in the year – note 8 Paid in the year Grants payable in less than one year Grants payable after more than one year Year ended 30 September 2020 Grant commitment brought forward Grants awarded in the year – note 8 Paid in the year Amounts payable as the period end (due within one year)	City, University of London £ 20,000 60,000 (20,000) 60,000 20,000 40,000 60,000 40,000 - (20,000) 20,000	University of East Anglia £ - 30,000 - 30,000 15,000 15,000 30,000 - - - -	Total £ 20,000 90,000 (20,000)
			90,000
			35,000 55,000
			90,000
			40,000 - (20,000)
			20,000

There are no conditions attached to the grants.

The grants payable after more than one year are not discounted as any such discounting would be immaterial.

12 Related party transactions

Mike Hammond, Mark Gregory, Richard Dudley and Tim Pritchard who are all trustees attended the Golf Day in the year and each paid the same entry fee as other participants.