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2024-09-30-accounts

Charity Commissioners Number 202939

SYLVANUS LYSONS CHARITY

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

SYLVANUS LYSONS CHARITY

REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

CONTENTS Page
Trustees' Report 2 - 7
Statement of Trustees' Responsibilities 8
Independent Auditors' Report 9-12
Statement of Financial Activities 13
Balance Sheet 14
Statement of cash flows 15
Notes to the Financial Statements 16- 29

Page 2

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 30TH SEPTEMBER 2024

The Trustees present their report and financial statements for the year ended 30th September 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, 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 published in October 2019.

1 Origins

The Charity was established by the Will of Sylvanus Lysons of Hempsted, Gloucester who died in 1731. The Charity came into existence on the death of his widow in 1750. The charity is registered with the Charity Commission in England and Wales, its registered number is 202939.

2 Objects

The original objects of the Charity were to pay pensions to poor widows of clergy of the Diocese of Gloucester and to pay the remainder of the income to the Rector of Hempsted in augmentation of his stipend.

The objects of the Charity have been varied from time to time by schemes made by the Charity Commission. The scheme presently governing the regulation of the Charity was made in 1980. It continues to make provision for the payment of grants to clergy widows. Provision is also made for the payment of the stipend of the Priest in Charge of Hempsted Parish.

The residue of the income is to be applied in furthering the religious and other charitable work of the Church of England in the Diocese of Gloucester.

3 Grant making policy

The Trustees' present policy is to provide financial support for projects that fall within the Charity's objects. Such projects may include initiatives taken by the Diocese of Gloucester, individual parishes and other Christian organisations designed to further the work of the Church within the Diocese. The Trustees' policy is to give assistance to establishing projects and to support them through the initial years before they can become self-funding.

Grants have been given in the past to assist with the following types of projects:- working with disadvantaged/disabled young persons and adults, and support in the local community.

The grants are normally made either as a single payment or by seed corn funding by quarterly instalments over a specified period of time for an ongoing project. In such cases the applicant is required to produce annual progress reports.

Applications are also considered from individuals in need falling within the scope of the Charity's objects, including support for education, training and welfare of members of the clergy.

It is not the Trustees' present policy to make grants towards the cost of repairs of churches or other buildings, other than in exceptional circumstances.

Page 2

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

4 Trustees

The Trustees during the year were:

The Right Reverend R.W. Springett Ian J. Templeton Chair The Venerable Phil Andrew (resigned 15th November 2024) Rev Liz Palin (resigned 17th November 2023) Michael G Angell Vice Chair Stuart Hutton Rev Lara Bloom

Bishop of Tewkesbury Chartered Insurance Practitioner Archdeacon of Cheltenham Clerk in Holy Orders Chartered Insurer Investment Manager Clerk in Holy Orders

Method of appointment/election

Trustees are appointed for a term of five years by the current board of trustees. The board must consist of a maximum of nine competent persons, the majority of which must be beneficed clergy, the remainder are laity. The trustees already have the experience and expertise necessary to carry out the work of the Charity. There is an initial consultation and interview process to introduce prospective trustees to the work of the charity.

Advisers:

Tayntons Solicitors Llanthony Warehouse The Docks, Gloucester, GL1 2EH

Secretary and Principal Adviser, this address is also the Principal Place of Business

Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU

Investment Managers

Bruton Knowles Chartered Surveyors Bisley House Green Farm Business Park Bristol Road Gloucester GL2 4LY Pitt Godden & Taylor LLP Auditors Unit 3 Ambrose House Meteor Court Barnett Way Barnwood Gloucester GL4 3GG

Property Advisers

Page 3

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

4 Trustees - continued

The Trustees meet regularly throughout the year. A review of the investment portfolio takes place periodically with the external investment manager. Grant applications that have been received since the last meeting are also considered and determined. Applications for grant aid that cannot be deferred until the next meeting are determined by consultation with each of the Trustees or, in the case of small scale applications, by a committee of any two Trustees.

Following the changes made after the Governance Review, the expanded board are working well. Applicants are appreciating the help and support in the preparation of their applications and the continued development of the website.

5 Investments

The investment powers are contained in a scheme sealed by the Charity Commissioners on 6 September 2000. The objective of the investment policy is to create sufficient income and capital growth to enable the charity to carry out its purposes consistently year on year.

The trustees have an agreed investment performance benchmark with Sarasin based on: the trustees' requirements for cash to make grants; the trustees' attitude to investment risk; and the expected life of the Charity. Based on the answers to these questions they have agreed a bespoke benchmark with the investment managers of: 7.5% ICE BofA Sterling Corporate & Collaterized Index; 7.5% ICE BofA UK Gilts All Stocks; 60% MSCI All countries World Daily (Net Total Return); 10% MSCI AC World (Local Currency) (GBP); 5.0% MSCI All Balanced Property Funds - One quarter Lagged; 10.0% SONIA +2% (Alternative Assets). This allocation is classified as as being 4- 7 on a risk scale of 1 (low risk) to 9 (high risk) and there are agreed limitations as to the minimum and maximum amounts of each asset class that can be held. The trustees understand that over the long term this agreed format will allow the capital value of the portfolio to be retained in real terms and will generate a good level of income to fund grants. The trustees also understand that investments do not move in a linear fashion and there will be years and periods perhaps longer than a year when the portfolio value may fall. However, they also understand that, based on historical returns, equity investment is necessary if the value of both the capital of the fund and income is to maintain its purchasing power when compared with inflation.

The trustees moved to a total return basis from October 2023. Note 26 provides further information on the agreed initial gift , and transfers made in the year.

The endowment portfolio returned 9.7% against a benchmark of 10.2% for the year ended 30th September 2024. For the same period, the unrestricted portfolio returned 4.5% against a benchmark of 4.9%.

The portfolio mix will normally fall within the following ranges:-

Property
Cash
Non-UK equities
Fixed interest
Infrastructure
UK equities		 %
50-75
0-10
0-10
0-10
5-20
0-10

Some investments are excluded on ethical grounds having regard to the guidelines of the General Synod of the Church of England.

Page 4

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

5 Investments - continued

The land and properties held by the Charity may be realised for the benefit of the Charity as and when the opportunity arises.

6 Financial Review

Market values of the investment portfolios increased during the year to £13,033,628 from £11,433,082.

The portfolio mix at 30 September 2024 was:-

Others
Cash
Fixed interest
Equities		 2024
2023
%
%
73.78
63.02
12.55
15.12
11.28
9.41
2.39
12.45
100.00
100.00		 2023
%
63.02
15.12
9.41
12.45

The yield on the investment portfolio for 2024 was 2.5% (2023: 3.6%). Total income generated by the charity was £388,138 (2023: £501,185), which includes income from land and properties of £62,350 (2023: £65,276).

During the year the charity had commitments to pay grants of £317,783 (2023: £213,323). The grants paid out are listed on pages 19 to 20.

The Charity has unrestricted reserves of £665,805 (2023: £645,866) including designated funds of £26,283 (2023: £26,283).

7 Public Benefit

The Trustees have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission on public benefit statements. The projects that have received grants from Sylvanus Lysons Charity during the year provide support, education, employment and training designed to benefit local communities.

For example the following significant grants were agreed in the year and in some cases will be paid in forthcoming years:

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

7 Public Benefit (continued)

Viney Hill Christian Adventure Centre

The Trustees agreed to provide a grant of £20,000 to enable the Centre to subsidise the cost of activities for disabled and disadvantaged groups of people. This grant should cover a years worth of subsidies.

The Rock

A grant of £15,000 to be paid over three years was given to The Rock to pay for youth work time to support the transition of children from primary to secondary school.

A further grant of £25,000 was agreed later in the year to fund the increase in management hours to take advantage of opportunities in new partnerships and local youth provision.

Listening Post

A grant of £12,000 over two years was agreed for the Listening Post to offer support for people on their six month waiting list for counselling, whilst they are on the waiting list.

Whole care GP Chaplaincy in Tewkesbury

The Trustees agreed to a grant of £20,000 paid over two years to start a new chaplaincy in a new GP practice in Tewkesbury. The project has gone well in the original surgery.

Diocese of Gloucester

The clergy counselling grant was approved for another year with £24,000 being agreed. This has a key role in Clergy wellbeing in the Diocese.

Another grant of £5,600 was given as a one off for 'holding crosses' for the annual leavers services.

IsingPOP

The Trustees approved a grant of £20,000 over two years which was matched funding to deliver the 'Main Event' in 20 primary schools.

Beacon Benefice

A grant of £13,500 over two years was approved for their 'BAAD' Beacon All Ages Development Minister.

All Saints Academy

Funding was requested to allow a group of 13 students and 5 staff to visit the partner Diocese in Tanzania, This would involve visiting schools and to build on the success of previous trips in earlier years. The Trustees approved a grant of £20,000 for this.

Prestbury PCC

This application was for funding for the Church to take over the lease of a shop to run a charity shop, house the church and provide rented office space. The Trustees approved a grant of £25,000 over two years.

St Catharine's Gloucester

The Trustees approved a grant of £15,833 in total over two years, with funding loaded towards the second year to employ a children's connector.

Other grants

In addition a total of £29,500 (2023: £28,990) small individual payments were given as educational or subsistence grants.

Page 6

SYLVANUS LYSONS CHARITY

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

7 Public Benefit (continued)

The Charity takes a long term view in not only helping the projects to commence but also in enabling the projects to keep going over a number of years to provide maximum benefit. Where a project requires long term assistance, the Charity pays these grants on a quarterly basis subject to satisfactory annual reports from the beneficiary.

8 Reserves Policy

The capital of the charity is endowed. Unrestricted revenue reserves are held by the charity to mitigate against the risk of unexpected reductions in income affecting its ability to respond to new grant applications and to provide to the extent possible, capacity to respond to future projects for which support on a large scale may be envisaged.

As the charity makes commitments to pay grants over periods extending beyond one year, the charity must ensure there are sufficient reserves available at any time to meet these commitments. The Trustees have reviewed the level of Reserves to be held and as from 1 September 2022 agreed that the Reserve should be held at £225,000. This is calculated to provide for running costs and grants required by the Charity including payments to widows and widowers and for the Stipend of the Rector of St Swithun's Church Hempsted.

The unrestricted reserves, of £665,805 (2023: £645,866) including designated funds of £26,283 (2023: £26,283) held at 30th September 2024, are higher than this. This figure includes long term investments. Liquid available assets are £414,440 (2023: £296,614). Following the move to a total return basis from the start of this year, the trustees can vary the amount of the transfer to the unrestricted income fund, in line with the level of reserves held, and the amount of grant applications received. Going forward the trustees will be looking at reducing the amount transferred from the unapplied total return to reduce the level of income funds. At the November 2024 Trustee meeting, grants of approximately £93,700 were agreed.

The designated funds relate to money released from the Capital Endowment Fund in 2022 for which permission was received from the Charity Commission. This money was initially to support three main charities, and the money is held in a specific investment which is released to fund these projects as the drawdown money is requested or in line with the grant application.

9 Risk management

The Trustees are satisfied there are sufficient systems in place to mitigate any major risks to which the charity is exposed. The trustee have identifed three categories of risks: trusteeship, financial and relationship. Each category has been reviewed, the risks identified and an assessment made on the likelihood, and impact of those risks. Based on this assessment an appropriate control has been put in place. The risk register is reviewed annually at a Trustee meeting and updated as necessary. Any new risks arising are also considered at each meeting.

BY ORDER OF THE TRUSTEES

MR I. J. TEMPLETON

MR. M. ANGELL

4th April 2025

Page 7

SYLVANUS LYSONS CHARITY

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30TH SEPTEMBER 2024

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 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:

The Trustees are responsible for keeping sufficient accounting records that 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BY ORDER OF THE TRUSTEES

MR. I.J. TEMPLETON

MR. M. ANGELL

4th April 2025

Page 8

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF SYLVANUS LYSONS CHARITY FOR THE YEAR ENDED 30TH SEPTEMBER 2024

Opinion

We have audited the financial statements of Sylvanus Lysons Charity for the year ended 30 September 2024. which comprise the Statement of Financial Activities, the Balance Sheet, the statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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:

Basis of 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 Trustee's 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 charity'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. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. 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.

Page 9

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF SYLVANUS LYSONS CHARITY FOR THE YEAR ENDED 30TH SEPTEMBER 2024

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 requires us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 8, the trustees are responsible for the preparation of 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 Charity'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 auditors 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.

Irregularities including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, was as follows:

• We identified the laws and regulations relevant to the charity from discussions with the secretary and from our knowledge of grant-making charities in similar sectors. The laws that we consider may have a direct material effect on the financial statements or the operation of the charity include the Charities Act 2011, & data protection.

• We ensured that the audit engagement team collectively has the appropriate competence, capabilities and skills to identify non-compliance with the applicable laws and regulations noted above.

• We assessed the extent of compliance with these laws and regulations through enquiries with the secretary and inspecting legal costs.

Page 10

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF SYLVANUS LYSONS CHARITY FOR THE YEAR ENDED 30TH SEPTEMBER 2024

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud may occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of any actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate fraud risks and non-compliance with laws and regulation.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify unusual or unexpected transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

• reviewed a sample of transactions from the clients records for authorisation from the Trustees;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed

procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Your attention is drawn to the fact that the charity has prepared accounts in accordance with "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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Page 11

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF SYLVANUS LYSONS CHARITY FOR THE YEAR ENDED 30TH SEPTEMBER 2024

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 auditors' report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Pitt Godden & Taylor LLP Chartered Accountants Statutory Auditor

Unit 3 Ambrose House Meteor Court Barnett Way Barnwood Gloucester GL4 3GG

4th April 2025

Page 12

SYLVANUS LYSONS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH SEPTEMBER 2024

Notes
Income:
Investment income:
Net property income
2
Income from listed investments
3
Interest on bank deposits
Total income
Expenditure
Costs of raising funds:
Investment managers fees
4
Expenditure on charitable activities:
Grants
5
Stipend
6
Other costs
8
Total expenditure
Net gains/(losses) on investments
Net income/(expenditure) before transfers
Gross transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrealised and realised gains/(losses) on
investments		 Unrestricted
income
funds
£
62,350
20,177
-
82,527
(331)
326,862
46,003
32,767
405,301
17,596
(305,178)
325,117
19,939
645,866
665,805		 Capital
endowment
funds
permanent
£
-
305,611
-
305,611
92,278
-
-
-
92,278
1,612,442
1,825,775
(325,117)
1,500,658
13,563,965
15,064,623		 Total
2024
£
62,350
325,788
-
388,138
91,947
326,862
46,003
32,767
497,579
1,630,038
1,520,597
-
1,520,597
14,209,831
15,730,428		 Total
2023
£
65,276
429,336
6,573
501,185
49,781
222,815
43,535
31,848
347,979
114,225
267,431
-
267,431
13,942,400
14,209,831

Page 13

SYLVANUS LYSONS CHARITY

BALANCE SHEET AS AT 30TH SEPTEMBER 2024

Notes
9
10
11
12
13
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS: amounts falling due in
more than one year
14
15
General unrestricted funds
16
Designated funds
17
THE FUNDS OF THE CHARITY:
UNRESTRICTED INCOME FUNDS
TOTAL CHARITY FUNDS
CAPITAL ENDOWMENT FUNDS
TOTAL NET ASSETS
NET CURRENT ASSETS/(LIABILITIES)
CURRENT ASSETS
Cash at bank
Debtors
CURRENT LIABILITIES: Amounts
Creditors
falling due in one year or less
FIXED ASSETS
Property
Listed securities
INVESTMENTS		 Unrestricted
income
funds
£
-
255,888
255,888
25,105
665,509
690,614
(262,595)
428,019
683,907
(18,102)
665,805
-
639,522
26,283
665,805		 Capital
endowment
funds
permanent
£
2,306,500
12,777,740
15,084,240
-
10,104
10,104
(29,721)
(19,617)
15,064,623
-
15,064,623
15,064,623
-
-
15,064,623		 Total
2024
£
2,306,500
13,033,628
15,340,128
25,105
675,613
700,718
(292,316)
408,402
15,748,530
(18,102)
15,730,428
15,064,623
639,522
26,283
15,730,428		 Total
2023
£
2,481,500
11,433,082
13,914,582
55,549
625,621
681,170
(298,321)
382,849
14,297,431
(87,600)
14,209,831
13,563,965
619,583
26,283
14,209,831

The financial statements on pages 13 to 29 were approved by the Trustees on 4th April 2025 and were signed on their behalf by:

MR I.J. TEMPLETON

Trustee

MR. M. ANGELL Trustee

Page 14

SYLVANUS LYSONS CHARITY

STATEMENT OF CASH FLOWS AS AT 30TH SEPTEMBER 2024

Notes
Cash flows from operating activities
24
Investing activities:
Dividends and interest received
Rental income received from investment properties
Transfers from the endowment fund
Payments to acquire investments
Proceeds on sales of investments
Net cash generated from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the end of the year
25
Cash and cash equivalents at the beginning of the
year		 £
£
£
£
(173,638)
(431,819)
60,175
464,550
52,795
80,826
-
-
(79,481)
(375,912)
61,485
356,201
94,974
525,665
(78,664)
93,846
747,917
654,071
669,253
747,917
2023
2024

Page 15

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

1 ACCOUNTING POLICIES

Charity information

The charity is a registered charity with the Charity Commission in England and Wales. Its registered number is 202939. The principal business address is Tayntons Solicitors, 5th Floor, Llanthony Warehouse, The Docks, Gloucester GL1 2EH.

Accounting convention

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), "Accounting and Reporting by Charities" the Statement of Recommended Practice for charities applying FRS 102 published in October 2019, and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have been prepared in order to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent provided to provide a 'true and fair' view. The departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The accounting policies adopted for dealing with items which are judged material or critical are given below. The financial statements are prepared in pound sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of accounting

The financial statements are prepared on the historical cost basis of accounting, except for investments which have been included at revalued amounts.

Going Concern

At the time of approving the accounts, the Trustees have a reasonable expectation that the Charity 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 accounts.

Income

All income is recognised when the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured.

Rents and wayleaves

Rents and wayleaves represent amounts receivable for the year.

Interest and dividends receivable

Interest income is recognised on notification from the bank of interest payable by them. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure and irrecoverable VAT

Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be reliably measured. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure is classified under the following activity headings:

Costs of raising funds comprise the costs associated with managing the investments held by the charity, including the fees charged by the Investment Managers, and costs associated with maintaining the value of the investment properties.

Page 16

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

1 ACCOUNTING POLICIES (continued)

Expenditure and irrecoverable VAT

Expenditure on charitable activities includes the amount of grants given in the year except where a grant has specific conditions attached which are conditional. If conditions have not been met, the grant is disclosed as a contingent liability. Expenditure on charitable activities also includes the stipend paid in respect of the Priest in charge of Hempsted Parish and associated support costs.

Support costs are those functions that assist in the work of the charity, but do not directly undertake charitable activities. These costs have been allocated to the main activity of the charity which is grant giving.

Interests in investment property

Investment property is stated at the trustees' best estimate of its market value at 30th September 2024.

Movements in the market value during the year are included in the endowment funds. Profits and losses on the sale of investment property are included separately in endowment funds.

Professional fees included for advice and representation concerning the maintenance and for preserving the value of the land and properties are charged to the capital endowment fund.

Depreciation

No depreciation is provided on investment property.

Fixed asset investments - equities

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

Debtors

Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term liquid investments.

Contingent liabilities

A contingent liability is identified and disclosed for those grants resulting from:

• a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly within the trustees’ control; or

Capital endowment funds permanent

Capital endowment funds are the non-expendable permanent capital of the Charity. Increases and decreases in the fund represent changes in market value, and gains or losses on disposal of investments. Additionally, investment managers' fees for managing the investment portfolio, together with professional fees for preserving the value of the land and properties are charged to the capital endowment fund. The trustees resolved to move to a total return basis from October 2023, and may allocate any part of unapplied total return to the income fund. The unapplied total return remains part of the capital endowment fund.

Page 17

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

Unrestricted income funds

Unrestricted income funds are funds which can be expended at the discretion of the Trustees in furtherance of the objects of the Charity.

2
Unrestricted
income
funds
2024
£
62,350
-
62,350
Less property rental management costs
-
62,350
3
INCOME FROM LISTED INVESTMENTS
Unrestricted
income
funds
2024
£
20,177
Capital
endowment
funds -
permanent
2024
£
305,611
4
COSTS OF RAISING FUNDS
Capital
endowment
funds -
permanent
2024
£
87,950
4,328
92,278
Rents received
NET PROPERTY INCOME
Rents and wayleaves:
Sundry receipts, wayleave etc.
Dividends and fixed interest received from investment portfolio
Investment portfolio fees paid to Sarasin & Partners LLP for
Portfolio Management
Dividends and fixed interest received from investment portfolio
Fees connected with sale of 206 Bristol Road		 Unrestricted
income
funds
2023
£
65,751
43
65,794
518
65,276
Unrestricted
income
funds
2023
£
429,336
Capital
endowment
funds -
permanent
2023
£
-
Capital
endowment
funds -
permanent
2023
£
49,781
-
49,781

Page 18

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

4 COSTS OF RAISING FUNDS (continued) Unrestricted Unrestricted
income income
funds funds
2024 2023
£ £
Investment portfolio fees paid to Sarasin & Partners LLP (331) -
5 RELIGIOUS AND CHARITABLE GRANTS GIVEN - GRANT FUNDING OF ACTIVITIES
The total number of institutional grants paid was 32 (2023: 44).
The total number of individual grants paid was 91 (2023: 82).
Unrestricted Unrestricted
income income
funds funds
2024 2023
£ £
Grants in aid to clergy, widows and others 29,500 28,990
All Saints Academy 20,000 -
Ashleworth Church - 7,000
Beacon Benefice 13,500 -
Bishop of Tewkesbury Discretionary Fund 2,500 2,500
Bookblest, Stroud 500 1,000
CANDI - 5,000
Coopers Edge Church Plant 1,900 -
Coopers Edge Community Church 800 -
Cheltenham Street Pastors 6,000 -
Clearwater School - 1,770
Diocese of Gloucester 5,600 43,490
Emmanuel Church 1,000 -
Family Space - Cheltenham - 6,526
Gateway Theology School 5,000 -
Gloucester Cathedral - 11,661
Gloucester Diocese Wellbeing Counselling Service 24,000 -
Gloucester Street Pastors 1,600 -
Gloucestershire Nightstop - 5,000
GP Chaplaincy of Tewkesbury - 10,000
Great Rissington Church 180 -
Hempsted Parish 12,500 -
Highnam Church 860 -
HMP Eastwood Park Chaplaincy 2,000 -
Holy Apostles Church - 10,000
Hope, Cirencester - 8,000
Ignition - Festival of Wonder 5,000 -
IsingPOP 20,000 -
KingsSchool 6,000 -
Listening Post 12,000 12,500
Marah Trust 9,000 9,000
Midwyedean Churches - (24,000)

Page 19

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

5 GRANT FUNDING OF ACTIVITIES (Continued)

Northleach Benefice - LEAF grant
Parish of West Cheltenham
PCC of Longlevens
Prestbury PCC
Shalom Network
St Andrew's Church
St Catharine's, Gloucester
St James, Bream
St James Church
St Lawrence, Lechlade
St Luke's, Cheltenham
St Oswald's Church, Coney Hill
St Mary's, Frampton
St Mary's , Kempsford
St Mary's , Kingswood
St Mary's, Newent
St Philips and St James
St Swithuns, Hempsted
Stroud Parishes
The Rock
Tetbury Parish Church (St Mary's)
The Door
Viney Hill CAC
WAM
Welcome to our future
Wholecare - GP Chaplaincy
Working for Wellbeing
Caleb's Mountain - grant written back
Total grants given
Support costs
(Note 7)
Reconciliation of grants payable:
Commitments at 1st October 2023
Grants charged in the SOFA in the year
Grants paid during the year
Commitments at 30th September 2024
Commitments at 30th September 2024
Due < 1 year (note 13)
Due > 1 year (note 14)		 Unrestricted
income
funds
2024
£
-
-
-
25,000
-
2,000
15,883
12,000
960
-
-
-
2,500
-
-
-
-
-
-
40,000
-
-
20,000
-
-
20,000
-
-
317,783
9,079
326,862
2024
£
312,837
317,783
(417,313)
213,307
195,205
18,102
213,307		 Unrestricted
income
funds
2023
£
(15,000)
18,000
1,100
-
10,000
-
-
-
-
2,000
7,820
3,000
1,500
3,300
3,000
3,000
2,000
22,166
12,000
-
(250)
5,500
-
(10,000)
4,000
-
5,000
(3,250)
213,323
9,492
222,815
2023
£
448,208
213,323
(348,694)
312,837
225,237
87,600
312,837

Page 20

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

5
6
7
8		 2024
2023
Grants can be further analysed between activities as follows:
£
£
Grants in aid to clergy, widows and widowers
21,000
20,506
Clergy and licensed ministers support
41,900
28,784
Schools, families, children and youth
138,943
44,262
Community projects
95,940
94,881
Other
20,000
24,890
317,783
213,323
Unrestricted
income
funds
Unrestricted
income
funds
2024
2023
£
£
46,003
43,535
ALLOCATED SUPPORT COSTS
Unrestricted
Unrestricted
income
income
funds
funds
2024
2023
£
£
Secretary & adviser fees and disbursements
4,869
4,860
Grant administrator costs
4,210
4,632
9,079
9,492
OTHER COSTS
Unrestricted
Unrestricted
income
income
funds
funds
2024
2023
£
£
Support costs
Professional fees
4,404
4,299
Secretary & adviser fees and disbursements
6,087
6,075
Sundries
3,144
2,479
Repairs to properties
1,182
1,430
14,817
14,283
Governance costs
4,560
4,200
Secretary & adviser fees and disbursements
13,390
13,365
17,950
17,565
32,767
31,848
Total other costs
STIPEND
Stipend in respect of Priest in charge of Hempsted
Audit fees
These support costs relate directly to the cost of administering the grants reviewed and given by the
Charity
GRANT FUNDING OF ACTIVITIES (Continued)		 2023
£
20,506
28,784
44,262
94,881
24,890
213,323
Unrestricted
income
funds
2023
£
43,535
Unrestricted
income
funds
2023
£
4,860
4,632
9,492

Page 21

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

9
Land West of Hempsted Lane and paddocks
Church Hall and allotments at St. Swithuns Road
All in the United Kingdom:
Freehold Property:
Bristol Road
206 Bristol Road
INVESTMENT PROPERTY		 2024
£
2,000,000
300,000
-
6,500
2,306,500		 2023
£
2,000,000
128,500
220,000
6,500
2,355,000

All investment property relates to the Capital Endowment Fund in 2024 and 2023.

The land and property owned by the Charity at Bristol Road was professionally valued by Bruton Knowles, Chartered Surveyors, on a market value basis, subject to the existing leases, as at 10th January 2022. The Trustees do not consider the market value at 30th September 2024 to be materially different to this, and hence have included that valuation in these accounts. The land West of Hempsted Lane and paddocks, and Church Hall and allotments at St Swithuns Road were also professionally valued by Bruton Knowles, Chartered Surveyors, as at 30th September 2018 on a market value basis. The trustees have updated the valuations to 30th September 2024 having taken professional advice.

Bruton Knowles are external to the Charity.

206 Bristol Road was sold in October 2023 for £175,000 before costs.

10

Cash and deposits
Securities
Securities
TOTAL SECURITIES
LISTED SECURITIES
Fixed interest
Cash and deposits		 Capital endowment fund
Market
Value
Cost
£
£
1,476,714
1,397,734
11,002,406
9,752,177
298,620
271,679
12,777,740
11,421,590
£
£
252,144
252,121
3,744
3,744
255,888
255,865
2024
2024
Income fund		 Capital endowment fund
Market
Value
Cost
£
£
1,579,131
1,568,125
8,205,541
8,200,649
1,299,458
1,299,458
11,084,130
11,068,232
216,553
214,978
132,399
132,399
348,952
347,377
2023
2023
Income fund		 Capital endowment fund
Market
Value
Cost
£
£
1,579,131
1,568,125
8,205,541
8,200,649
1,299,458
1,299,458
11,084,130
11,068,232
216,553
214,978
132,399
132,399
348,952
347,377
2023
2023
Income fund
347,377

Page 22

12

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

10 LISTED SECURITIES (continued)

Total securities are analysed:
Securities in the UK
Securities outside the UK		 2024
2023
£
£
2,949,843
4,648,450
10,083,785
6,784,632
13,033,628
11,433,082

In 2024 individual securities with a market value representing more than 5% of the total market value were:

11

Sarasin Responsible Corporate Bond - I Inc
Investments are held primarily to provide an investment return.
Other cash movements
DEBTORS
Market value at 30 September 2024
Prepayments and accrued income
Net profit/(loss) on disposal and revaluation
Rent receivable
Movements in market value:
Market value at 1 October 2023		 982,831
2024
£
11,433,082
1,630,038
(29,492)
13,033,628
2024
£
25,105
-
25,105		 792,142
2023
£
11,506,058
(12,275)
(60,701)
11,433,082
2023
£
15,550
39,999
55,549

All debtors relate to unrestricted income funds in 2024 and 2023.

BANK

Cash at bank can be analysed as follows: unrestricted funds £665,509 (2023: £615,517); Capital endowment funds £10,104 (2023: £10,104).

Page 23

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

13
than one year
Other accruals
Grants payable
Breakdown of creditors in 2024
Other accruals
Grants payable
Breakdown of creditors in 2023
Other accruals
Grants payable
14
than one year
Secretary & adviser fees
Grants payable
CREDITORS: amounts falling due in more
Audit fees
Secretary & adviser fees
CREDITORS: amounts falling due in less
Audit fees
Secretary & adviser fees
Audit fees		 Unrestricted
income
funds
£
24,000
4,440
38,950
195,205
262,595
Unrestricted
income
funds
£
22,800
4,200
34,315
225,237
286,552		 2024
£
24,000
4,440
68,671
195,205
292,316
Capital
endowment
fund
£
-
-
29,721
-
29,721
Capital
endowment
fund
£
-
-
11,769
-
11,769
2024
£
18,102		 2023
£
22,800
4,200
46,084
225,237
298,321
Total
£
24,000
4,440
68,671
195,205
292,316
Total
£
22,800
4,200
46,084
225,237
298,321
2023
£
87,600

All creditors due in more than one year relate to unrestricted income funds.

Page 24

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

15
Incoming resources
Unrealised gain on investment properties
Transfer to Income fund
Professional fees
16
UNRESTRICTED INCOME FUNDS
Transfer to designated fund
Transfer from Capital Endowment Fund
17
DESIGNATED FUNDS
Investment manager's fees
At 30th September 2024
Realised and unrealised gain/(loss) on securities
CAPITAL ENDOWMENT FUND
At 1st October 2023
Incoming resources
Resources expended
At 30th September 2024
At 1st October 2023
Realised and unrealised gain/(loss) on securities
At 30th September 2024
At 1st October 2023
Transfer from Income fund
Realised and unrealised gains/(loss) on securities		 2024
£
13,563,965
305,611
-
(325,117)
1,612,442
(4,328)
(87,950)
15,064,623
2024
£
619,583
82,527
-
325,117
(405,301)
17,596
639,522
2024
£
26,283
-
-
26,283		 2023
£
13,501,663
-
126,500
-
(14,417)
-
(49,781)
13,563,965
2023
£
419,019
501,185
(166)
-
(298,198)
(2,257)
619,583
2023
£
21,718
166
4,399
26,283

18 TRANSFER FROM CAPITAL ENDOWMENT FUND TO DESIGNATED FUNDS

The Trustees requested and obtained permission from the Charity Commission to release £300,000 from the Capital Endowment Fund in 2022 for the purposes of spending as part of the Charity's income fund. The Trustees intend to use this money to fund substantial grant applications to support the Hempsted community, to support refugee and asylum seekers, and to support the Diocese of Gloucester.

No new grants were paid or confirmed from these funds during 2024 (2023: £nil).

Page 25

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Investment assets
Current assets/(liabilities)
Long term liabilities
Investment assets
Current assets/(liabilities)
Long term liabilities		 Unrestricted
fund
2024
£
125,715
531,909
(18,102)
639,522
Unrestricted
fund
2023
£
122,309
551,639
(54,365)
619,583		 Designated
fund
2024
£
130,173
(103,890)
-
26,283
Designated
fund
2023
£
226,643
(167,125)
(33,235)
26,283		 Capital
endowment
fund
2024
£
15,084,240
(19,617)
-
15,064,623
Capital
endowment
fund
2023
£
13,565,630
(1,665)
-
13,563,965

19 CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

2024
£
Carrying amount of financial assets
25,105
15,340,128
Carrying amount of financial liabilities
308,618
Financial assets that are debt instruments measured at
amortised cost
Financial assets that are equity instruments measured at
fair value through the statement of financial activities
Financial liabilities measured at amortised cost		 2023
£
55,549
13,914,582
385,921

20 TRUSTEES' REMUNERATION

The charity paid £2,604 for Trustee Indemnity Insurance in the year (2023: £2,582). Arch Deacon Phil Andrew received a grant for a sabbatical of £750. No other remuneration was paid and no expenses were reimbursed to the Trustees during the year.

There were no contingent liabilities as at 30 September 2024 (2023: None)

21 CONTINGENT LIABILITIES

Page 26

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

SYLVANUS LYSONS CHARITY

22 RELATED PARTY TRANSACTIONS

Bishop Robert is a patron of Viney Hill Christian Adventure Centre - They received a grant of £20,000 in 2024 (2023: £nil) . Bishop Robert is also a trustee of the Gloucester Diocesan Board of Education - this charity received a grant of £5,600 in 2024 (2023: £nil).

Archdeacon Phil Andrew is a Trustee of the Rock which received two grants amounting to £40,000 in 2024 (2023: £nil). He also personally received a grant of £750 for a sabbatical. Stuart Hutton is a trustee of St Phillip and St James, which received a grant of £2,000 in 2023.

Some of the Trustees also declared interests in the following organisations, which received grants in the year:

IsingPOP - received a grant of £20,000 in 2024 (2023: £nil). Cheltenham Street Pastors - received a grant of £6,000 in 2024 (2023: £nil). The Door- received £5,500 in 2023

All Saints Academy received £20,000 in 2024 (2023: £nil). Prestbury PCC received a grant of £25,000 (2023: £nil). Kings School received a grant of £6,000 (2023: £nil).

23 OPERATING LEASES

The operating leases represent leases of the Charity's investment property to third parties. As at 30th September 2024, there are 30 years remaining on the leases.

At the reporting end date, the Charity had contracted with tenants for the following minimum lease payments:

lease payments:
Expiring:
Within one year
In more than one year and less than five years
In more than five years
24
CASH GENERATED FROM OPERATIONS
Surplus for the year
Adjustments for:
Investment income recognised in statement of
financial activities
Fair value gains on investments
Movements in working capital:
Decrease in debtors
(Decrease) in creditors
Cash generated from operations		 2024
£
62,200
248,800
1,570,550
1,881,550
2024
£
19,939
(82,527)
(17,596)
-
(93,454)
(173,638)		 2023
£
62,200
248,800
1,632,750
1,943,750
2023
£
205,129
(501,185)
(2,142)
175
(133,796)
(431,819)

Page 27

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

25 ANALYSIS OF CHANGES IN NET FUNDS
1 October Cashflows 30 September
2023 2024
£ £ £
Cash at bank and in hand 615,517 49,992 665,509
Cash held as part of investment portfolio 132,400 (128,656) 3,744
747,917 (78,664) 669,253
26 APPLICATION OF TOTAL RETURN TO PERMANENT ENDOWMENT FUNDS
At 1 October 2023
Unapplied total return
Investment return: dividends and interest
Less: Investment management costs
Net movements in reporting period
At 30th September 2024
Gift component of the capital endowment
Unapplied total return
Unapplied total return allocated to income
in the reporting period
Gift component of the permanent
endowment - allocated in October 2023
Investment return: realised and unrealised
gains		 Trust for
Investment
£
-
7,396,722
-
7,396,722
-
-
-
7,396,722
-
7,396,722
7,396,722
-
7,396,722		 Unapplied
Total
Return
£
-
-
6,167,243
6,167,243
305,611
1,612,442
(92,278)
7,993,018
(325,117)
7,667,901
-
7,667,901
7,667,901		 Total
Endowment
£
-
7,396,722
6,167,243
13,563,965
305,611
1,612,442
(92,278)
15,389,740
(325,117)
15,064,623
-
7,396,722
7,667,901
15,064,623

Page 28

SYLVANUS LYSONS CHARITY

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30TH SEPTEMBER 2024

26 APPLICATION OF TOTAL RETURN TO PERMANENT ENDOWMENT FUNDS (continued)

The Trustees resolved to move to a total return basis from October 2023 in regard to the managed investment portfolio only. This power permits the Trustees to invest its capital endowment fund to maximise total return and apply an appropriate portion of the unapplied total return income each year. Until the power is exercised to transfer a portion of the unapplied total return to income (as disclosed in the note on page 26), the unapplied total return remains part of the capital endowment.

Having reviewed the investment portfolio and the transactions that have taken place with property sales being reinvested in the managed portfolio, the Trustees selected the date of the valuation for total return purposes to be the value of the endowed fund at 30 September 2000. This being the earliest date available for which valuations could be obtained. The capital endowment was valued to be £7,396,722 at that date. The remainder being allocated as funds available as unapplied total return.

The trustees agreed the investment strategy with the investment managers, and decided that the transfer from the unapplied total return to the income fund would be £87,500 per quarter. This amount would cover the grant funding, and other costs for one year.

The transfer for the first year including an adjustment for dividend income that had been received in 2023, but not paid over before the end of September 2023 and was therefore already allocated to the income fund.

The level of the amount to be transferred will be regularly reviewed, as the trustees are keen to reduce the level of unrestricted income funds, and the total return basis, gives them the flexibility to vary the amount required from the fund each year.

Page 29