TIIE , N DISI"ILI.ER.%' CI IAIIITY THE DISTILLERS. CHARITY (CHARITABLE INCORPORATED ORGANISATION) REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023 Charity Registration Number: 1193683 (England & Wales) Charity Registration Numbor: SC052075 (Scotland) BEGBIES Chartered Accountants 9 Bonhill Street London EC2A 4DJ THE DISTILLERS. CHARITY (CHARITABLE INCORPORATED ORGANISATION) LEGAL AND ADMINISTRATION INFORMATION TRUSTEES Grant Gordon (Chair) Geoffrey Bush Leslie Davey Paul Hick Kenneth MacKay (resigned June 23} Richard Watling REGISTERED OFFICE 1 The San¢luary London SW1 P 3JT AUDITORS Begbies Chartered Accountants 9 Bonhill Street London EC2A 4DJ BANKERS C Hoare & Co 37 Fleet Street London EC4P 4DQ INVESTMENT ADVISERS Cazenove Capital 1 London Wall Place London EC2Y SAU CCLA 1 Angel Lane London EC4R 3AB LEGAL ADVISERS Lee Bolton Monier-williams LLP 1 The Sanctuary London SW1 P 3JT CCEW CIO- No 1193683 OSCR CIO regist8red October 22 -SC0052075 THE DISTILLERS. CHARITY TRUSTEES REPORT England & Wales (no. 11936831 Scotland (SC0052075) REPORT OF THE TRUSTEES The trustees present their report and consolld81ed financial stalem&nls of the Charity and its subsidiary for the year ended 30 September 2023. The financial statements have been prepared In accordance with the accounting policies sel out in note 110 the rinancial statements and comply with the Charily's conslilulion, the Charities Act 2011, the CharSlles and Trustee Investment (Scollandl Act 2005, the Charities Accourits (Scollandl Regulations 2006 las amendedl and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financlal Reporbng Stsndard applicable in the UK and Republic of Ireland {FRS 1021" leffeclive 1 January 20191. Structure. Governance and Managoment The Charity was registered on 3 March 2021 as a Charitable Incorporated Organisation ICIO-rggistered no. 1193683 & SC00520751. It succeeded to thè unincorporated charity of the same name, The Distillers. Charity, l¢harily number 10387631 and the assets of the unincorporated entity have been transferred lo the new legal entity. The Charity Is governe(J by Ihg rules of its consUlullon. In terms of the ooveinance of the Charity. there are al least five trustees and a maximum of nine. The Worshipful Company of Distillers, acling through Ils Court, appolnls not fewer than three an(J nol more than seven rbomin8led trustees. and in addl￿On not more Ihan hvo Iruslees may be Co-opted by the nominaled trustees. The chaTity itself has no employees bul outsources 8 number of tasks under the direction of nominated Iru8tee8. Tasks outsourced included managing The Youth Action Fund, an employabilily inrtiative in Scotland lo Inspiring Scotland, a charity speclallsed Sn advlsing charities on improving outcomes for young people. The Charity also received support In managing Ils Vocation Tralnlng & Education activities from the Worshipful Company's Development Director. Further consultancy support was contracted lo help pioduce the Charity's Impact report as wo11 as develop a website and dlsseminale information about our work through the media and olher channels. The Charity has a wholly owned Iradlng subsidiary. The Distillers, Ventures Limited IDVLI, the purpose of whlch is lo raise funds for the Ch8rSty. The subsidiary manages major fundraising, princlpally Ihg biennial One ol One Auction in partnership with Ihe Scotch Whlsky Industry and Sothebvs. DVL is govemed by ils own board of directors appointed by the Charity including a trustee whts is Co-opted lo the DVL board by ihe Charity. DVL Is managed day ID day by two members of staff including the Managing Director. and support from a number of external consultants. The company donates all of its dlstributable reserves through Gift Aid to the Charlty. The Iruslees are responslble for relationships between the Charity and related parties, including ils trading SLJbsidiary DVL. as well as other charities and organisalions with which11 co-operates in the pursuit ol its charitable objectives. Whilst there is no fomial policy, the trustees take responsibility for the training and inductlon of new trustees. Page 1 THE DISTILLERS, CHARITY TRUSTEES REPORT Obiocllves, Publle Benefit Aims and Pollcles of thè Charlty The objects of the Charity are.. 11 The advancernent of education of beneficiaries. 21 The relief of pov8rty. 31 To sUPPOrt young people, especially from disadvantag* backgrounds and dsprivod areas, lo r8ach th￿r full potential. 41 To promote any charitable purpose for the bènefrt ol the public gènerally. The Charity achieves its objectives via ils programme of gr8nt5, particularly where these granis are expècted to make a notlceable difference to the wellbeing and quality of life of tho beneficiaries. The trustees eonlirm. that in pursuit of the charitsb18 objectives of the Charity via ils grants and other 8Ctivitiès, thèy have both consulte¢S and have regard to the Charity Commission guidance on achieving Public Benefil. ActlvlU?$ and khlevements Durlng the Period Mlsslon The Charity's mlssion is to transfomi the lives of the m05t dlsadvantaged people by helplng Ihem develop théir confidence, resilience and skills 50 thay are ready for lifè and work. Grant-maklng & Impact The Di5tSllers' Charity grant-making activities ar8 made up by thrÈa disilnctive 8r8as, èach of which supports the Charrty's mlssion to transform the Ilves of young people. .The Youth Action Fund focusd in Scotland trènsforrning the lives ol young p￿PIe •Vocational Training & Education supporting members ol the drinks trade lo acquire knowledge and 8ncouragltYJ new entrants to the indLJStry .Cily & Livery Giving buildlng on on the philanthropic values of th8 Worshipful Company of Distillers, as a City Llvery oiganlsatlon In orcler to maximise rntrasurable social impad a structure Including govemance, ov8F5ight, and procèsses have been deslgned and imp18Tnented underpinning our grant-making actwitias. In terms of govemance, grant-making commi1188s meet regularly covering our throe distinctive areas of Impact. the Youth Adion Fund, Vocational Training and Edueation and City & Livery Giving. Th8sè committees reptsrted on their activities at Trustee mtetlngs. accompanied by reports 3n(J updates on the progress ol our charity partnars and impact aohieved. The committees have d818gated account8bi1Sly to manage grant-making and other related a¢livitie$ and ensure the effectlve use ol available rasources lo delivèr social imp8d. Youth A6￿0￿ Fund The Disti110rs' Youth Action Fund is supported by the proceeds of the Distlllers One of One Aucllon Seriès to transform Ihe life chances ol young people in Scotland aged between 16 and 25. The Fund's portfolio of chafit18S and impact monitoring 15 managed by Inspiring Scotland. Since the Fund's inception in January 2022. th6 Fund has grown with the support of 8 Portfolio of charity delivery partners who recèive mulli-y8ar grant funding. Each organisalion brings deep expert15e and experience in supporting young people from dlsadvanlaged b8ckgft)unds towards athi8virvJ sustainable employability oul¢omes. In terms of monitoring and evaluation. Inspiring Seotland's'matrix, system recorded the Experiences of individual young person supported by Ihe Youth Action Fund ensuring that the issues and need5 of beneficiaries wère listened to and could actively inform and support the Fund's work. Total gran15 across this ar88 of work were £982,6651£2022- £514,727) Vocatlonal Tralnlng and Education Distillers, Vocat￿nal Training and Educatlon (￿E) provides support for the nexl generation of young talent in the distilling industry, while promoling divèrsity and inclusion. VTE provides bursaries and scholarships. rrentoring, advanced18arning seminars, neiworking opportunitie5, and access to industry kno￿edge offerlng a holi511c 5UPPQrt pockage lo bènèfiaaries. Total grants across this area totalled £23,04512022.' £27,110) Page 2 THE DISTILLERS. CHARITY TRUSTEES REPORT Clty & Llvery Glvlng Disbllers, City and Livery Giving reflects the Charity's lies to the Worshipful Company and its role as 8 Clly of London based Guild. Granl-making in this area of work aims lo improve the lives of young people including helping them slay safe around alwhol and support members of the distilling industy experiencin9 hardship or mental heallh Issues. Total grants actoss City & Livgry Giving tolalled £123.35212022.. £102,250) Fundrai$lng actlvlties The Charity is funded through two dislinelive slralegi&s, both of which bengfit from the close connections with the Worshipful Company of Disllllers and ongoing relationships with the drinks industry and Indivlduals who work, or have done so previously. in the industry. The income of the Charity is principally produced by the biennial Distillers One of One Auction fundraising series, alongside income ralsed by way of regular donations from Livery members as well as largeled fundraising appeals. The maln purpose of Ihe Charily's subsidiary trading company, The Distillers, Ventures Limiled, is to Drganise and hold 8 serigs of biennial auctions of donated rare spirits iaising funds for the benefit of the Charity ar)d ils mission. The first 'One of One. Auction was held in December 2021 In EdinbLJrgh and raised £2.5 million, in terms of the hammer price. Not all the lunds were ￿¢&ived In 2021 and the balance was donated durlng this fin8ncla1 year. Livery support, in the fomi of annual and one-off donations from members increased lo £79.513 12022- £58,600). Our financial resources for the year were supplemented by £53,646 income12022- £20.67SI from the Charity's investment funds. Flnanclal revlew Totsl ¢onsolidaled income for the financial period was £1,258,55912022- £3.178,8431. The decrease In income was derived primarily by don8tsons from Distillers, Ventures Limited from the One of One Aucllon lo the Charity reducing 10 £879,53812022- £1.691,6131. In lerrns of expenditure fundraising costs. which rolated mainly to the activities and work undertaken to prepare lor the 2nd One of One Auction in Qclobor 2023. tolalled £286,31912022- £141.3071. Overall charitable grant expendllure grew considerably during the year lolalllng £1,129,06212022- £644.0871, a 74Yo increase, prlmarily accounted for by the growth in sUPPOrt for the Youth Acllon Fund whlch enjoyed a full 12 months of grant4naking at a constant lèvel each quarter. Risk rovlew The truslees recognise thelr responslbllllles lo ensure Ihal dsk management is approached comprehensively Ihrougjhoul the oioanlsallon. Major risks are those that would have a slgnificanl Impact and a likelihood of occurring and, if they arlse, would have a mapr impact on the Distillers. Charity. The board has a risk assessment and management process. which idenlifies areas of risk under three broad sub-headings, governance & management, finance and reputation managemenl. Each risk idgnlified has related miligats.on moasures and actions with named accountability. Page 3 THE DISTILLERS. CHARITY TRUSTEES REPORT Trustèes regularfy review the risks the Charity faces In all areas of Its work, assessing these risks lo determine Ihelr potential severity and the likelihood of occurrence taking appropriate action to manage risks that have been identified. The board reviews the risk register al each trustee meets'ng and are satisfied that measures are in place lo manage Ihg key idenllfied risks. DVL has a simllar pollcy for risk management and its review by tho board of directors. Resorvgs The Iruste&s s&t 8 reserves policy, consistent with the Ch8rity Commission guidance, whi¢h requires that reserves are maintained al a level which ensures that the Charity's core granl-making activity could continue during a period of unforeseen difficulty. Where appropriate, a proportion ol the reserves will be held in a readily realisable form. The calculation ol the required level of reserves, which Is svbjecl lo an annual revlew by trustees, Is an integral part of the organlsallon's planning, budget and forecasting cycle. Thls process considers risks assDclaled with each income stream and expenditure varying frorn that budgeted, including future planned leve18 of charitable giving. Having considered Ihe risks, activity and commitments of the organlsalion trustees have agreed that the organisab'on should retain a level ol reserves of £1 million. Financial position at the ond of tho year At the end of the financial year, the charity held a total reserye of £2.122,201. dlvlded between Reslricled funds £731,008 Designated funds £25.000 Unrestricted funds £1.366,193 Investment pollcles The investment strategy. management. and performance monlloring, related lo the Charity's reserves, is the responsibility of the Finance and Investment Committee IFICI, which is chaired by the Treasurer. Under advice of the FIC, Iruslees appoint an investment manager to manage the investment portfolio on ils behalf. The FIC reports lo the board once per year on the management and performance of Sts Investment portfol50. For Ils long-terrn investments15-10 years) the trustees seek 8 return of CPl+2 10 30/0 over each S-year cycle. The Ituslees recognise the last 10 years have been a perlod of hlgh returns In a low Inflation envlronmenl and in the fttlure It will be more challenging to deliver similar retums on a risk adjusted basls. The trusloes follow thelr obligatlons, as defined by s4 Trustee Act, to maxirnise the return on thg Charity's inveslmgnts and have reviewed their ESG policy. The Portfollo mandate currendy does not have any ESG consliainls. Plans for the future GoSng foward the Charity aims lo consolidate the Progress that has been made durfng the recent perlod of growth In granl-making. Trustees plan lo continue supporting the work of our grantees, across each of our three Impact areas. Page 4 THE DISTILLERS. CHARITY TRUSTEES REPORT The Youth Action Fund in Scotland, represent our laTgesl area of funding and we anlicSk)ale continuing to grant approxin)alely £1 mlllbon annually in aggregate support for our PDrtfolio of charity partners, 18rgeled at achieving positive youth employability outcomes. We will continue lo monilof the Fund's impact on benefi¢iaries with 8 particular focus on tracking the sustsinabilily of outcomes with young people. The Youth Actlon Fund in Scot]and. represents our largest area of funding and we anticipate continuing to grant approximately £1 million annually in aggregale support for our Portfolio ol charity delivery partners, targeted at achieving positive youth employability oulcomes. Wo will continue to monitor the Fund's impact on beneficiaries with a path'cular focus on tracking the sustainability of outcomes with young people. In Vocailonal Training & Education, through expanding our volunteering capacity we expect further steady growth in this work stream that supports young talent entering and building careers in the drinks industry. For City & LSvery GNing, il is planned to steadily grow support from historic levels. featuring a new Disbllers Charity of the Year. Thls appeal will be largeling support al young people from disadvantaged backgrounds, while encouraging èngagement by Livery in our philanthropic work through a vole among membgrs lo select Ihe grantee. FuDdraislng -Thg Charities IProt8ction and Social Investment) Act dlsclosuro Our Income primarily comes from the biennial One of One Auction. The remaining fundralsing Is derived from donations m8de by Liverymen from the Worshipful Company of Distsllers. Thore are no thlrd partles involved in this fundraislng. Duiing October 2023. following the end of the financlal pertod reported. the 2nd edition of the One of Ono Auctlon was held. raising a further £1.8million al hammer pri¢e value, excludlng buyer's premium. The conlinulng success of the auction series, will ensure that 9r8nt-making across the Charity Can be planned for the duration ol the comir)g three years, underpinning the Charity's social impact objectives, partlcularly In promoting employability of disadvanfaged young people through the Youth Action Fund in Scotland. Disli118rs Ventums Limiled manage all matters all related to the biennial Auction5. This work includes, bul Is not limited lo, maintaining engagement with the Scotch Whisky Industry donors, and participatyng company's whose generosity enables thbs unique fundralslng programme lo bg successful. The Charity is not reglslered with the Fundraising Regulator and is not bound by undertakings lo any voluntary scheme. There have been no failures to comply with any codes and there have been no complaints lo the Charity about its lundraislng. The Trustees b8lieve that Our fundraising 15 outside the scope of the Act in terms of requiring policies protecting vulnerable people. Statement of dis¢lo$uro to auditor So far as the Truste&s are aware, there is no relevant audit infom)alion of which the charfty's auditor 15 unaware. Additionally. the Trustees have taken 811 the necess8ry steps that they ought to have 18ken Sn order lo make themselves aware of any relevant audit infom81ion and to eslab5ish that the charity's auditor is aware of that information. Page S THE DISTILLERS. CHARITY TRUSTEES REPORT Tru8tee#' R•sponsibilities in Relation to thg Flnanclal Statements The law applicable to chariues In England and Wales and in Scouand requires the Trustees lo prepare financial slalemenls for each fina￿131 year which give a Irue and fair view of Ihe stale of affairs of the charity and ol the incoming resource5 and application of resources of Ihe for that year. In preparing Ihose fInar￿la1 statemenls, the Iruslees are required lo- . Select suitsble aCC￿nting polides 8nd then appty Ihem consistently.. Make judgemenls and estimates that are reasonable and prudent., Slate whether appllcable accounllng standards and slalemenls of rÈcoF7Trmended practi￿ have been followed subject to any departures dlsclosed and explained in the financial slalemenl8', and Prepare the financial statements on the going con¢em basts unless11 Is Inopproprfale to presume that the chadty will continue in business. The Trustees are responsible for keeping sufficient accounling Tewrds that disdose with reasonable accuracy at any time the finan¢i81 posits.on of the and enable Ihem to ensure th81 the fin8nual ststements comply ￿th the Charilles Act 2011. the Charily (Accounts 8nd Reportsl Rogulab'ons 2008. the Charities and Twslee Investment (Scollandl Act 2005, the Charitsos A￿OuntS Iscouandl Regulations 2CK16 {as amonded) and the provisions ol the trust deed. They are also r8sponsiblè for safeguarding the assets ol Ihè and hence for taking reasonable steps for the prevenllon and detection of fraud and other irregularities. Approved by the trustees and Slgned on Ihelr behalf by: Grani Gordon OBE Dalt 2810312024 Page 6 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE DISTILLERS. CHARITY Oplnl We hjve 8uoYled thè grDUP Ilnanty￿ statements olThe fistfiler> CTharfty Ilhe'ch8FWI for the year ended JO Septerntyer 2022 (x)mprtsÈ the CMsolidaled 5talemenl ol Fln8nclal Aciiviiies, Ihe Consolbjaied and ch8rlly Ba12nce She6is, Ihtr Consdidaied Slaiemenl of Cash Fknws and notes 10 ihe linancial siaiemtrnis. includ￿9 a summbry of 5ignrficanl accounting wlicies. The fin8nGlal reporting framework th81 has been applk8d in IheiF pr•pBraiion is applicab￿ ￿want1 United Kingdom Accountiw Standards. Including Financial Rewning Slandarij 102 The Fknanu SiaTrlard tho UK and Rewbk tl ILknW G8ner8ltyA¢ceptsd A¢wJnm P￿¢t￿l. In t￿r wrth. IheffinartL81 swmon¢s'. . Give 8 INe 8nd fair ¥￿0( the stale art￿ parent chadty and Ils subsh￿ary urKlert*ir¥J's 8ffalrs as al 30 Seplemtw 2022 ènd incomlny resources and 8ppllcalion of resourc&s, for the yeÈr th￿ endèd, . hav& téen p￿￿rtY pr8paA6d In a￿ldance *iih Unlled ltingthm *cep￿ Atojuriing PrDdt*', . h8VO tten wepy•Y in aCco￿arKe wAh tke rewwemanls of the CharK*s Aci 2011, the CharlUo5 Tw5tee Inyeslmenl (Stdar￿}A￿ 21x15 aThJ wuLglv)n 8 of lh8 ￿L*S At¢4yJnls (SCO￿8nd) 21th(￿ •mÈrKWI. Baslslor •plnlon We c¢nduGied our wdil In xcudance wilh kn1ern81￿n8l Sl8rtard$ on ￿All￿ng IVKI IISAS IUKII 8nd aprlicabk kgw. (Xjr respo￿￿111t18s und those SlBndards ar8 futher dl8cussed In audblorfs 18$ponsibililies for thè finanrAal slalem8Thts 8ectlon of our report. We are in¢ependenl ol Ihe ch￿lY In afjc0rdan￿ ￿4th the elhicfil requiremeThls Ih•l gre re￿¥3￿1 lo our of ihe financlal slelements in the UK, 1ncludln9l￿ FRC'S Ethkal SIwKl8rd. and we have fuNI1￿ our olher ethul respon&blilies kn 8cCO￿a￿a wKh these requirements. We tr*1￿¥• Ihai the audil In ih&1kn8nck81 stal8menw, have CAnc￿lad Ihot IhÈ Vusi80È' U80 of lh¢ concwn Ws Df In fv ¥ryarabon ofihe finarKl#l $lJlemenls is appitsOyle. Ba￿j on the have p8rfcffi18d, hawe not hI*)Ir￿d any Mats￿84 urtèrtairths rdatlw io •v•nts or coThJlUon8 fvl. Ind1¥Edul￿ or CA￿l¥dy. mJyc*si dtNbt ￿ the •Wlllyto •$ • for • F•rk)d rAal knl Wv• mrths from the riTharKk415ts¢￿ents are 8Uthr*￿•J fw issW. Olhet Ihlwmatloft lrnslms Bre resTWSib￿ for the other inftymab￿. Th other infomthn cornprfses the reporf of Ihe IN51ees. opknh)n cfi tha finan¢￿1 slalw￿￿ ¢J¢￿ Th)1 cover the Oltsr infom)81w and. •x¢ept 10 the exienl 0lh8Thth eX￿KIllY 81818d In tyjr re[￿. do oxwpss any form In ¢[￿DeG1k)n our a￿￿11 of the finan&al stalernenl8. our reswnslbllrty18 lo read Ihe other Infomauon and. kn doing 50. conswJeT Atheih¥ih• Olher Informat￿￿ is maleii8lly Incon*sieni *iih Ihe fin8nci81 st818mtnis or our kn(A¥lad9e obt81nod In the audit or Olhen￿$t appears lo be mat8rf811y MIss￿led. If Idgnlify suGh fftalerial incon$i5tenc￿S or apparonl materi81 misstaigmeni$, we are requlréd 10 delermirE thelher Iherg is 8 rngledgl mls5btemenl In the flOan￿81 slateTrvits or a maieri¥ misslaiemenl of olhei intorrn81i￿. If based on Ihe ￿fjrk w& have pwf¢ymod. we crmcwethal there ts A material missla18m￿l of rAher Inlrrfmaiw)n, ￿ are rwutred lo repcrt thth Ixt. Wg h•v• r￿)￿ Ln rty9rn1. Matt•rn on wthl¢h we •r¢ r•qulrod to report by •xc•ptlon In ￿ IIBhl ol Ihe knOwknd￿ underBtwdirwJ of tharfly and 115 envlrwM￿I obtsined in eour% ollhe ¥￿Ill, ￿ have ncl hI￿￿led any lenal m￿51￿10ments in ￿ rep)rt oftts ImJsl8es. We ha￿ Mtlthvj to rekKNt h) tesptd of Ihe I￿￿￿7n9 m¥MW5 In rela11￿ to Ihe CtwitEs {AccoU￿ 8rMI Rrfunlin9 stsrKlar¢s due to th8 tru51ee board of both organisations not hawing a majority of members in common. One of thg reouirements f charity rewnslruction to b8 account8d for a5 a m&rg&r Is Ihal the persons conslilule ihe trust88 ￿dY are not slgnificanlly changed. As merg8r awunlng is rnt allow￿1 uTh1er the 8CCOi*ltlng stsndards. the donalon of Iha fund5 Irom tt)e dd charily have been Induded as dorotion wthin these a¢￿Unts and as an extraordlnary i18m. Icl Going concem Al th$ ttrne of approvlng the finandal slalements, the tru51ees h2ve a reasonable Èxp&ct8tion that the Charity has adequate ￿soUrC@S lu conunue In operational &￿StenCe for th& forÈseeable future, Thus the trust￿ ¢ontinu8 to adopl the golr¥J concern basis of accounllng in preparin9 the finan(xal stalements. Idl Group flnanclal statements The fi￿anGI￿ ststemMts cor6olldat8 the re5uMs of the Charity aNJ its wtholly owned subsidlary. The Th51i118ts' Ventures Llmited. on a line by line basis. Inler-entity trans8cUons have been removed on consolldaoon. lel In¢ome Income Is recognised Ihe Chartty is legally entiyed lo it, the amounts can be measured rdlably, and 1155 probthe that Ino)m8 ￿11 be received. Income frorn inv85knBnls Is Induded in the ststement of flnanc4al actIv￿leS In the year in vthlth it is re￿IV0b1e. Incorne from fundraislng acllvlll8s is derlved from Ihe Charfty's subsldiary Dlsliller5 Vetbtur88 Llmiled wthi¢h runs 8 bimnial auction. The lols donated are induded al the level of Income derived trom the auction. The op&ralbn of the au¢bon. and the sale of IhÈ ilem, is consid8r8d lo be 3 performarKe related eon(Jition under FRS 102 and the Income is not recognis￿j unll pérformanc8 related ¢ondIt￿nS are mel. As ihe Iiems glven are for Ihe specific biennial 8Uetion only. no income or assel is re￿gnised In the event th31 Ihe item does not Sell. Slmilarfy. if the underlwng sale has not completed al the year-end, and the donor retsins ovm8rship of the item, than ￿ Incorne is rewgnised. Auctton Parilclpalion loes are r8cognis8d a5 Ihey fall due and donated buy8¢s premiutn is ￿¢¢gnISed vthen the buyer's premium is P3id by the bidder. an¢J so falls due to the company from Ihe dorw. d¢&1 S81es 3re recognised on the date ol the auction. Sponsorship Ino)m8 Ss re￿gn￿ed over the p8ri0d of the activlties provhled in return forthe ificome based on an e$ts"male the level Of servlc8 p8rforne(S. Donations from Ihe transfer of the f0rn7er Distillers. Charity have been r8wrded at the value transferred. Where the transfer involved in¥￿tM￿nts, these have been recorded al their mark8t Value on the date of Iran5fv_ The r8maining assets of Ihe former Di51illers ¢harlty hav8 been record￿ as a debtor vithin these aceounl. The fom8r tharily is still recelwng funds from direct debil colleotsons and any net inGome ￿￿￿0￿ by th8 former charity after the balance sheet date will be recorded as a donats'on in th& followng year. 111 ExpÈndlturo and Irrg¢c*v¢rable VAT All expenditsJr8 Is Included on an accruals basi5 and 1$ r￿￿gnISed when there Is a legal or ¢onstruclive cbligalion lo pay for eypenditure. The Charity makes grants lo Indlviduals and Instllulbns In meeliry Its ch8rilaile objects. In accordan¢e ￿th the SORP prowslon Is mad8 for all grants authorised by the Board of Trustees in Ihe year. Where grants are conditional. only those grants all the conditSons have been fflet al the year end and the grant Is approved to bs made are recognlsed in the financial sl8lemenlS. The Éxpense for the period 1$ reduced by any catKd1a￿0n of gr3nls 8Uthorised bul not subsequendy requirèd. The dlrecl CA)5ts of staglng the auction. su¢h as venu8 hire and Pfogramme costs. a￿ reo)gnised on the date ofthe auGllon. Where these are pald in advance al the ba￿n¢t sh&8t dale. thay%*ill be Induded In prepayments. Page 13 The Distillers, Charity Notes to the Financial Statements as at 30 September 2023 191 Allo¢BUon of 8UPP¢rt ¢ofyts Investrne￿ managémonl lees are reeognisod on an 8¢eruals ba￿s. As of the funds arè endowed, 811 the Invo8imgnl managementfg&s are charggd to unre5trfcl£d fund5. Govem8nce cos15 are pvrely thosa necessary for Ihe ¢harlly lo meel ihe administ￿lIVe requiremBnts ollhe ChaFIty Commission. Support ¢o$l$ are general admlni$iraNvg ¢0$15 In support of the charflabl8 aclivlues. Ifrecover¥ble VAT is charged as a c091 again51 the acli%diyfor**lch thb expenditur• was Incurred. In accordaDcB wllh Ihe SORP SUPPDrt and 9ovemance costs Sre 81lo¢al￿ across th& ctr$n￿b7e acUviU&B. The b¥$l$ of sllocalion Is calcLl¥ied by Iha percen￿gO of total 9ranls paid in thai cale90ry after ihe dired allo¢atson of th8 Youth Acllon Fund mana9emoni fee lo the YoLth Acllon Fund. Given the Mlure of Ihe fundraiBing act￿11*$. and their ari$1[￿ in IhJ Charil¥$ $ubsidiary, nD 9eneral wppDrt orsovernance costs are allocated lo Ihl G¢mparatlv8 p•rlod The ¢(mP8rabvB pèdod rws from 1st Oclober202110 30th $￿ternber 2023 for bo￿ ihe parenl rharityand its wknlly owned sub$idl8ry. Ill Stock¥ ThBre are no stocks ofdonaiod gr￿$ aucbon held allhe year end. Ikl Funds accountinu Unreslricitd fur￿9 8rg avallabl• foruse al tho d19cret￿n of the IrJ$loos in furlheraDce gf Iholr¢harilabl8 objeGlives Reslri¢led funds are ￿c¢￿ed for p￿￿O$e3 as spgofied bylhe tlonor. Delails of the fB$iricled funds can befo￿￿ In note 17. 111 P6nsl¢n Bchgrng8 PayTnenlS io defined conlribulioD retiffjmenl benefilEchemes 8r8 ¢h8r9gd 85 Bn &xpen$8 as theyfall due. Ul Flxed ais•t Involtmonts Fixed 8$s•t Inveslmellls are irtluded 81 Iheirfair walues Im8rkel ¥alug141 thè balan¢9 8hgel dale. Any gain or1¢5s on ￿VaIL411¢￿ is tak￿ to th8 Staterneni ol FlnanGial Acbwli•$. Ikl Débtot8 Trade and other deblors are ro¢ognlsed al the Bett￿￿￿ni 8mouDldue 8fter aw tod8 dl$¢ounl ortered. Prepayr￿nt9 are WdlL*d ai the amtsunl Prepa￿ netof anylrade dixuunls due. 111 Cash af bank and In hand Cash at bank and cash In hand in£lL*le6 ca8h ghort teim highly liquid InwstmeTrts ¥%ilh a Maturity of threo monlh6 grl&B8 from the dale of 8cqu1s1l￿n oropenlw of the depo*i or$ir￿lS¢ Bccounl. lrnl Credltor¥ and provl¥lon8 Crediloffs and proYi8ion$ are re¢ogni8ed the charity has a prgsenl obli981iDn rasulting from a pa81 eveni Ihalwll probably re6uII In the Iransl•rof fundB to S third and the amount dL* 10 $6We ￿ obllgatlon ¢8n be meagured ores1imalBd ￿lIablY. Creditors and pro￿3￿n3 are nortnally recognis8d ai their gelllemenl am￿n1¥flOralI￿rQ forany trad¥ di$¢ounlB due. Thtr charily orty has financi81 assots and finandal liabilthes of 8 klnd ihalqualify8$ basic financial instsumgnls. Inl Guarants88 The Charity has agreed to indemnfy tho former DislilL*ts' ChaDty Irusie05 agalnsi sp8¢thc HMRC fundrsisin9 clalms for a period of 6 stars In return forihB transfer of 113 nei a$selg. The total tranSfe￿a to d81e 15 £1.357.298. 2. Net Income 2023 2022 Net income Is slatsd after charging.. Depreciation Auditor's remuneration- eharily Audiloi's r&muner81ion- subsidiary Auditor's remuneration- payroll Audltor's remunar8lion- subsidiary other seNices- VAT 6,000 3,000 1,090 3,500 6,000 3.000 1.800 Page 14 The Distillers. Charity Notes to the Financial Statements as at 30 September 2023 3. Donations - group 2023 2022 Donation trom the old Dlstillers, Charity11038763F nole 1lbl G6neral donations including gift aid 11,000 79,513 90.513 1,266,889 58,600 1.325.489 Don¥tlons Charlty 2023 2022 Donation from the old Disllllers, Charity {1038763F note 1lbl Gèneral dOna￿On5 includlng 9ift aid Donation from The Distillers, V8ntures Limited 11,000 79,513 879,538 970,051 1,266.889 58.600 1,691.613 3,017,102 Raising funds - group 2023 2022 Ch8rlty auction pr¢xeeds Other income in The Distillers, Ventur8s Limited 899,400 215.000 1,114,400 1,777,680 55,000 1.832,680 Ralsing fund$ Charlty 2023 2022 Other fundraising income 5. InvoslmeTht Income- group 2023 2022 Bank deposK Interest Income from UK listed investments 12,434 41,212 53,646 599 20,078 20.675 Invostment Incomo Charity 2023 2022 Bank deposit interest Income from UK listed Investments 8,335 41,212 49.547 599 20.076 20.675 6. C081 of ralslng funds - group 2023 2022 The Dislillgis, Ventures Limited costs Charity Comms General fundr8ising costs 238,961 47,118 240 286,319 141.067 240 141.307 Page 15 The Distillers. Charity Notes to the Financial Statements as at 30 September 2023 6. Cost of ralslng funds- Charlty 2023 2022 Charity Comms General fundraising costs 47.118 240 47,358 240 240 No allocallon of support costs has been made to the costs of raising funds as all the subsidiary costs are contained within the above figure and the remaining support costs attributable are nol ¢onsidered material. 7. Expendtture on Charitable Actlyltles . Group & Charlty Vo¢atlonal Tralning & Educatlon Youth Actlon Clty & Llvery F￿nd Charltles 2023 Current y•ar Granls-nole 9 Share ol SLJPPOrt costs- note 10 Share of governance costs- note 11 982,665 63,770 9,913 1.056,349 123,352 1.234 1,244 125.830 23,045 20,188 232 43,466 1,129,062 85,192 11,390 1,225,645 Vocational Training & Education Youth Action City & Livery Fund Charities 2022 Prlor year Grants-nole 9 Share of support costs- note 10 Share of govemance costs- note 11 S14,727 82.540 5,447 602.714 102,250 1,404 1,082 104,736 27,110 16,399 287 43,796 644.087 100,343 6,816 751,246 The cost of third party grant monitoring of th8 Youth Aclion Fund and vfE is allocated directly to those ftjnds, with other support and governancè costs allocated in proporbon to grant giving. 8. Staff costs, trustee remunoratlon and expense5. and tho cost of key manag•m•nt per50nno1- Group & Charlty Group 2023 Group 2022 Gross salarles Social security Pension costs 82.622 10.957 2,250 95.830 16.827 2,190 505 19.522 Salaries by band- gross salary £80,001-£90,OL)O Thare were no staff gmployed during Ihg year by the Charity. The Charfty's subsidiary employèd one person {2022.. One person for four months. average nil). ThÉ amployee was also 8 director resulting in key management salaries of £95,668 Including employar's national insurancè and pension12022 £19,522). One person r8¢eived remuneration above £60,000. 12022.. nill. Tha salary was is the £80,001-£90,000 bracket with a defined contribution pension cost of £2,250. None of the Iruslees lor any persons connected wfjth theml received any remun&ration or benèlils from thè charity during the current or preceding yèar. No travel expens&s were pald to any Iruslee8 during the current or pie¢¢ding year. No insurance limiting trustees, liabilities was purchased during the year aside from any covor contained within the general insurance PDIicy 12022.. nill. Trusteés and diTe¢tors of The Distillers. Ventures made general donations of £3.055 in total, and organisalions closely connècted to Iruslees, aside from the Worshipful Company of Distillers and The Distiller5. Venturas. donated £10,000 lo the Charity. Durlng the year thère were no other related party Iransactions other than transactions with th6 Charity's subsidiary12022 - £Nill and with th& Worshlpful Company of Distillers.. See note 18. Page 16 The Distillers. Charity Notes to the Financial Statements as at 30 September 2023 9. Grants making adNllles- Group & Ch8rlty Grants were recognised as Commitmènts during the y8ar lo Ihe following organisations.. Vocational Youth Action Clty & Livery Tralnlng & Fund & Glvlng Edue8tlon 2023 The Inslilule of Brewing & Distilling ICBO Heriot Watt University Wine & Spirit Education Trust The Drinks Trust Fulure Youth Zone The S81mon Centre Alcohol Education Trust Lord Mayorfs Appeal Aberd¢en Foyer En8blg Slreot League Action for Children FARE Scotland Grants under £2,000 4,441 2,339 13,915 4,441 2,339 13,915 40,000 30,000 30,052 48,350 10,000 100,000 185,000 239,315 250,000 160,000 15.650 1,129,062 40.000 30,000 30.052 48.350 10.000 100,000 185.000 239.315 250,000 160,000 13.300 123,352 2,350 23.045 982,665 Vocational Youth Action Clty & Llvery TrairTring & Fund & Glvirbg Education 2022 The Institute of Brewing & Dlstilling Tho Drinks Trust Ukraine Humanitarian Appeal cohol Education Trust Lord Mayor's Appèal Aberdaan Foyer Enable Street Leagua Aclion for Children FARE Scotland Grants under £2,000 27,110 27.110 20.000 20.OQO 78,351 30.000 11yJ,000 125,114 138,762 62.500 40.000 2,250 644.087 20,000 20,000 30,000 30,000 48,351 100,000 125,114 138,762 62,SOO 40,0 2,250 102.250 514.727 27,110 Grant inslalments subject to conditions, whid) have not been Included in th8 granl expendilurg In the year, total £012022.. £982.6661. 2023 2022 10. Support costs- Group & Charity Youth Action Fund grant management fees and launch Vocational Training & Education manag8menl Vocational Training & Educallon admlnistration Genèral consultancy 8ookkeepirrfJ 53,941 18,520 1,437 2,160 7,503 75,471 12,960 3,067 4,200 1.46 897 395 1,887 100,343 Bank charges Sundry 533 1,098 85,192 11. Govornance c08ts- Group & Charlty 2023 2022 Audit costs Trustees meeting expenses and room hlre Legal costs 7,200 565 3,625 11,390 6.000 816 6,816 Page 17 The Distillers. Charity Not85 to the Financial Statements as at 30 September 2023 12. Inv•stments Consolidat•d 2023 2022 Charlty 2023 2022 Market value or co$¢ al 1 October Addltions al cost Transferred in from The Disti118rs' Charity110387631- note 1{bl Cash movements Disposals at rnarket value Net gain on revaluation Market value or costs at 30 Seplemb&r 1,098,348 1,124,063 1,123,348 1,124.063 25,000 1,220,083 21,220 1,220,083 21,220 {42,178} 11,139,154} 75,042 1.116,120 {42,1781 11,139,154) 75,042 1.141,120 142,955 1.098.348 142.955 1,123,348 Histtsrical cost at 30 Sept&mber- trdnsfer value or cost 1,124,063 1.220,083 1,149.063 1,245,083 Th8 Charily received the portfollo of The Distillers, Charily Ino 10387631 as part of the donations detailed in note 1 b. These investments were transferred al market value on the 23rd March 2022 which rebased as cost for the purposes of thes8 accounts. The portfolio vms reinvested during th9 year into COIF Charilies Investment Fund income unlts. Investments al mark81 v8lug ¢omprSsed: Equities- UK Equities- Global Bonds Altematives-Property Fund Altematives-otherfunds Cash held by investrnenl manager awaiting relnvestmgnt Common investment fvnds Unlislgd investments- see below Market value or cost as at 30 Septèmber 445,895 337,830 139.242 106.047 27,156 42.178 445,895 337.830 139,242 106,047 27,156 42,178 1,116,120 1.116.120 25.000 1 141 120 1 116.120 1 123348 Unlisted investrnenls al cost comprisg.. 2023 2022 The Di81111ers' Venturès Limited - 25.000 ordinary shares of £1 each 25.000 25.000 25.000 25,000 13. The Dlstlllors. Vèntures LSmlt8d The Charty owns 1000/0 of The Distillers. Ventures Llrnf(8d (company number 132641211. The main actlvity of the company18 to hold auctions of donated goods. Al profits are donatsd io The Dlstillers. Ch8rity under gift 8ld, and the Company has been consolidated as a subsidlary in these accounts. The reglstered address of the company is 9 Bonhill Strèèt. London. EC2A 40J. Trading rgsultB &Xtracled from its audited accounts are as follows.. 2023 2022 Profit & Loss •¢eount Tumover Cost of sales 8nd adrnlnisttauve expens8S Net profil Int8rest receivable Payablts lo The Distillars, Charity ILossl I Profit rel8ined in The Distillers, Ventures Lbmited Balan￿ sheet 1.114,400 238,961 875,439 4,099 B79,538 1,832,680 141,067 1.fj91,613 1,691.613 2023 2022 Debtors Cash al bank 92.628 571,288 663,916 39.824 28.302 68,126 Creditors- amounts falling due vlthin on$ ygar Nel current assets 638,916 25,000 43,126 25,000 Credltors- amounts falling dus after mor8 than one year Nel assets I Iliabiiiliesl Share capitsl Profil and loss account C8Pital and reseNes al 30 September 25,000 25,000 25,000 25,000 25,000 25,0(H) Th& donation payable und8r gift aid has been removed on con8olldaUon. Page 18 The Distillers. Charity Notes to the Financial Statements as at 30 September 2023 Consolldated 2023 2022 14. Debtors Charity 2023 2022 Trada debtors Prep2yments and accrued income other debtor5 Amount5 due from subsidiary undertakiThJ 26.336 13.485 69,084 114,207 21,579 13,485 55,596 35,269 104.350 519,478 541,057 114,207 108,905 All d8blors are due withln one year. 15. Creditors Congolldalod 2023 2022 Charlty 2023 2022 Amounts falling due within one year Trade Creditors Other creditors Taxation and so¢ial secLJrity Pgnsion contributions payabl Accruals Grant accruals 38,894 11,419 10,948 722 2,463 1.347 23.751 10.626 38,909 67,426 7,384 136,757 9,935 7,384 17.319 20,426 10,626 31.052 Amounts fallin9 due after one year Grant accruals 3,692 3,692 10,626 10,626 3,692 3.692 10.626 10,626 16. M0￿MentS in Funds Balance ai 1 October 2022 Incomlng Outgoing Transfers Galns and Balance at Current year R¢sourc•$ Rg$ourc8s Los$es 30 Sept 2023 Reslri¢ted fun(ts Youth Action Fund Master's Chaiity of the Year The Distillers. Velo Club 966.673 747,000 4.689 18,726 770,415 1982,665) 14,e89) 18,726 11.006,080) 731,008 966.673 731.008 UnrestrlctedFunds Designated Investment share capital General unrestricted fund 25.000 1.311,183 1,336,183 25.000 1.366.193 1,391,193 488,145 488.145 508,176 1508,1761 75,042 75,042 Tolal Funds 2,302,856 1.258,559 1.514,255 75,042 2,122,201 Balance al 1 October 2021 Incomlng Oulgolng Transfers Gains and Balance al Prior year Resour¢as Resourcas Losses 30 Sept 2022 R•slrlcled fiinds Youth Action Fund Ukralno Fund 1,481,400 1514,7271 966,673 1.490,375 1523,7021 966.673 Unrestrlcted Funds Designated inveslmenl sharg capital Gèneral unrestricted fund 25,000 135,312 160,312 25,000 1.311.183 1,336,183 1,688,469 1,688.469 3.178,844 369,642 1369,6421 893,344 142,955 142,955 Total Funds 160,312 142,955 2,302,856 Rastricted and deslgnated funds Youth Aclion Fund A ftjnd for grant making to youth projécts in Scotland. 90Vo of thè hammer prlc& of charity auction proceeds is restricted to this fund. A fLJndraising event for the Salmon Youth Centre. The funds collected werg increased by the Charity to a lolal donation of £30,052. Fundraising long distanc& cycle challenge - lor 2023 in aid of a variety of Charities including the Future Youth Zone in Barking & Dagenham. Funds raised specifi¢alty for the Ukraine Humanitarian Appeal. FLJnds invested in the share capital of the Charity's subsidiary Master's Charity ofthe Year The Distillars, Velo Club Ukraine Fund Investment share capilal Page 19 The Distillers. Charity Noles to the Financial Statements as at 30 September 2023 17. Analysis of group net assets between funds (Current yearl- Consolldat8d Net curr¢nt as$et$ Long tgrm Ilabilitlas Investments Total Genaral unrastricled Designated Restricted Nel assels as al 30 Septembèr 2023 1.116.120 278,765 13.6921 1.391.193 731.008 1,009,773 731.008 2,122,201 1.116.120 3.692 An¥lysis ot group net assets betwoen funds (Current yearl- Charlty Net current 4$$¢ts Long tomi Ilabllltles Investm•nts Totsl Genèral unrestricted Designated Restricted Net assets as at 30 Sepl8mbeT 2023 1,116,120 25,000 253,765 13.6921 1.366,193 25.000 731,008 2,122,201 731.008 984,773 1.141,120 3,692 Anaty$ls of group net #$s•ts between funds IPrlor yearl- Con$olldated Net curr&nt a$sats Long lerm Invtsstments Total General unreslricled Designatad Reslri¢l8d Nel assals as at 30 September 2022 1,098,348 248,461 {10,6261 1.336,183 966,673 2 302.856 1.098.348 1215134 10.626 Analys18 of group not assets betw•èn funds (Prlor yearl- Charlty Nel Current assets Long lem Investments Total General unreslri¢t&d Deslgnaled Restrlcled Nel assots as at 30 September 2022 1,098,348 25.000 223.461 {10,6261 1.311,183 25,000 966.673 2 302 856 966.673 1,190,134 1,123,348 10.626 18. Tran8a¢tlons wlth Subsldlary and th• Worshlpful Company of Distlll•rs The charltls subsldiary is obliged to donate 100% of the Hammer Price Iprice paid bèfore Buyers Premiuml from the Distillers 'One of One, auctions to the charity, wilh 90°k of this being restricted lo the Youth Action Fund. 11 also distributes all other surpluses under gift aid. The don81ion for 2023 Ss £879,538 with £747.000 restricted12022.. £1,691.613 with £1,481,400 restrictedl, of which £519,47812022.' £35,269) remains outstanding al the balance she81 dale. The Charity also invesled in communications lo support fundraising and its website which includéd mention of Ihg One of One auction. As detailed in the Iruslees rèport, the Worshlpful Company of Oislillers appoints some Df the trustees of the Charlty, and is also the corporate trustee of the old Distillers, Charity. The old Distsllers Charity donaltsd £11.QQ012022.' £1,266.8891 tr) th9 Charity during th8 year, of whlch £Q12022.' £45,000> remains outstanding al thè balance Sheet date. During 2023 the Charity paid the Worshipful Company of Distillers £4,106 for bookkeeping and management seNi¢es and £656 for the Scottish Court & Livery Diner in addition to items recharged at cost. 19. Events after the rep¢rtlng dato After the balance sheet dale the company held the second biennial One of One auction with lols selling for a total hammer price of £1.8m. Pagg 20