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2020-12-31-accounts

Charity Registration No. 205798

SMALLWOOD TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SMALLWOOD TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Patron Her Majesty The Queen
Trustee Smallwood Trust (Trustee) Limited
Directors of Trustee Company D Myers (Chair)
M Margrie (Deputy Chair)
J R Bailey
C Hine
M Toman (resigned 31 December 2020)
Dr A Shah (appointed 15 December 2020)
F Vaid (appointed 15 December 2020)
Chief Executive P Carbury
Charity number 205798
Principal address Lancaster House
25 Hornyold Road
Malvern
Worcs
WR14 1QQ
Auditor Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Lloyds Bank plc
48 Belle Vue Terrace
Malvern
Worcestershire
WR14 4PZ
CCLA Investment Management Limited
80 Cheapside
London
EC2V 6DZ
Investment managers Investec
30 Gresham Street
London
EC2V 7QN
Newton Investment Management Limited
BNY Mellon Centre
160 Queen Victoria Street
London
EC4V 4LA

SMALLWOOD TRUST

CONTENTS

Page
Trustee’s report 1 - 16
Independent auditor's report 17 - 19
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 – 37
Appendix: Full list of grants awarded 38 - 41

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Smallwood Trust (Trustee) Limited (“the trustee”) presents its report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 of the financial statements and comply with the Trust’s governing documents (The Charity Commission Schemes of 2 November 1917, 9 November 1928, 29th October 2019 and the section 280 resolution of the trustees dated 18 May 2017), the articles of association of Smallwood Trust (Trustee) Limited, the Charities Act 2011 and “the Statement of Recommended Practice for charities (SORP 2019) (Second Edition, effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Charitable objects

The charitable object as set out in the Schemes is the application of the income of the Trust for the benefit of women in poverty.

Public Benefit

The trustee confirms that it has complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Trust. The trustee confirms that in planning the activities of the Trust, the Trustees have given careful consideration to how the Trust has fulfilled its charitable objectives.

The Trust’s primary purpose is to provide direct financial assistance by way of grants to women on low incomes and to provide grant funding to charities, social enterprises and other non-profit organisations to help deliver the Trust’s mission of enabling women to be financially resilient.

Research suggests that 1 in 4 women, that’s 8 million women, in the UK will retire below the poverty line. Low income in retirement is often linked to earlier low pay or time out of employment (source: Joseph Rowntree Foundation). Research from the Women’s Budget Group suggests that women and female dominated employment sectors have been disproportionately affected by the global COVID-19 pandemic – this has resulted in a significant increase in demand for funds.

The Trust’s funding aims to help women in or at risk of poverty become self-reliant and financially independent both through the provision of direct financial assistance and funding for non-profit organisations that aim to encourage financial stability and help overcome barriers such as low income, debt, economic abuse, poor housing or mental health concerns.

There is clear evidence for our approach to ensuring public benefit:

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Therefore, to help meet our charitable objectives, the trustee has agreed the following vision, mission and values statements:

VISION

Our vision is a country where no woman lives in poverty.

MISSION

Our mission is to enable women to be financially resilient.

VALUES

AIMS AND STRATEGIES TO ACHIEVE OBJECTIVES

The Trust’s strategic framework aims to enable women in or at risk of poverty to build a confident, positive and secure future. The trustee has identified three ways to maximise impact:

1. Direct funding and support for economically disadvantaged women

Grants for individuals to help relieve financial needs and hardship, and support to help women on low income through a tough situation. Funding is directed to women on low income who are living on a tight budget and/or in receipt of benefits and facing financial difficulty. Our needs-led funding helps unlock barriers to financial resilience, helping to provide stability, security and safety.

2. Funding for frontline voluntary sector organisations

Grants to organisations for projects that are developing sustainable services relevant to women’s needs and which target women with multiple and complex needs. We are also interested in funding innovative ways to help women along the employability pathway, helping women to access flexible and quality job opportunities.

3. Funding for policy and research

Grants to voluntary sector organisations who are undertaking practical policy initiatives leading to improved economic and social outcomes for women. Under this theme, we award grants to organisations that strengthen the voice of women on issues relating to financial exclusion and support practical policy initiatives that support the potential for system change and improving the lives of women.

This approach enables the Trust to continue to develop its knowledge of the main barriers to helping women out of poverty and enable us to learn from practical projects that can inform our future funding strategy.

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

The following objectives were agreed for 2020:

Since the 2020 objectives were agreed, the COVID-19 pandemic sent economic and social shockwaves across the world. Existing inequalities affecting women and the funding of the women’s sector were exacerbated. Like many organisations, Smallwood responded to the increased demand and need for support. The majority of our effort during 2020 was on providing much needed emergency funding for women and the women’s sector, while reviewing how our grant funding can support the (eventual) recovery phase.

Therefore, our report on achievements of our 2020 objectives naturally focuses on how we responded during the pandemic as follows:

1. To approve total grant funding at an increased level.

The funding of £4,515,312 was allocated across our main grant programmes as follows:

Programme Amount % of funding allocated
Grants to individual women for relief of poverty and £722,962
progress towards stability 28%
Grants to community grant partners to make £549,195
onwards grants to individual women
Grants to frontline and women’s sector £3,002,072 67%
organisations to build capacity and deliver services
Grants to policy and research initiatives to highlight £241,083 5%
the causes, consequences and solutions to
gendered poverty
Total £4,515,312

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants to individuals

In 2020 we continued to make substantial funding available to distribute to individual women from our HQ:

In order to understand more about women’s lives during the pandemic and the impact that the grants have, the Trust undertook an evaluation of the grants to individuals through an online survey and in-depth interviews with a selection of grantees. Some of the main findings included:

What happened that meant that you needed to apply for a grant?
Reason % of respondents
I have struggled with debts 33%
I am unable to work at the moment due to health reasons 28%
I lost my job/lost income 26%
I am unable to work at the moment due to other reasons 15%
I am caring for children 15%
I have lost my home/risk losing my home 10%
I am caring for adults 6%
My family lost income 4%

How much of a difference do you feel this money has made to your overall circumstances?

Answer % of respondents
A great deal 67%
Some difference 24%
A little difference 9%
No difference 0%

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Please tell us if you identify with any of the following statements

Answer % of respondents
Have a history of anxiety and/or depression 49%
Am a lone parent with dependent children 42%
Am living with a long-term health condition 33%
Have experienced homelessness 30%
Have a disability 16%
Not applicable/prefer not to say 8%
Have caring responsibilities for other adults 6%
Unpaid care responsibilities 6%
Are of retirement age or older 4%
Experience of criminal justice system 3%
Have left the care system 1%

Has the pandemic impacted your life? If so, how?
Answer % of
respondents
I have struggled with isolation and loneliness 57%
It has been difficult to pay my bills 57%
My mental health has deteriorated 49%
I have lost income/a job 34%
The quality of the food me and my family eat has reduced 33%
My physical health has deteriorated 29%
I have not been able to access support services I need 22%
My caring responsibilities for children have increased 21%
A lack of internet/equipment has made is hard for me to access training and job
opportunities		 13%
I have not been able to pay my rent/been forced to move 8%
A lack of internet/equipment has made it hard for my children to access school 7%
My caring responsibilities for adults have increased 5%

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Onwards grants to individuals via community grant partnerships

We rolled out this funding to 14 community grant partners in 2020. The community grant partnerships are a new model of delivering grants to individuals via local women’s organisations and other partners, to complement and enhance local service delivery. This was one of our key objectives for the year and is described in more detail at point 2 below ( Page 7 )

Grants to frontline organisations

In 2020, we awarded funding of £3,002,072 (2019: £404,509) to frontline organisations to help them respond to the COVID emergency and safeguard vital frontline jobs and services across the women’s sector. The average grant size was c. £20,000 .

The increase in funding was made possible by substantial grants to the Trust from the DCMS Community Match Fund (£2.1 million for the “Women’s Sector Resilience Fund”), The National Lottery Community Fund (£498,625 for the “COVID-19 Frontline Women’s Fund”), existing support from Barclays £165,600 and additional funds from the Trust’s expendable endowment.

Unsurprisingly given the impact of the pandemic, the majority of our funding to organisations focused on our COVID-19 response funds. Overall data from the distribution of these funds includes:

Through previous research, Smallwood were already aware of the disproportionate effect that poverty and austerity has had on Black and minoritised communities prior to the outbreak but a survey that we collaborated with, led by Women’s Resource Centre and Rosa UK in March/April 2020, reported that these communities were being adversely affected during the pandemic, too.

Through the emergency grants we were able to increase the number of funds awarded to organisations led by Black and minoritised women to 31%, compared to 3% for previous programmes.

An analysis of the applications to the funds produced a number of other important findings, such as 84% of organisations reported they were supporting women with mental health issues and 82% reported they were helping women who had suffered violence and abuse.

One of the findings from this funding was that many women were facing a complex web of multiple disadvantages, simultaneously, such as mental health, care responsibilities and domestic abuse which was pushing them and their families into further crisis.

The next major challenge on the horizon is to support the women’s sector in the eventual recovery phase. Towards the end of 2020, we entered a partnership with Rosa UK, to secure an additional £1.9 million from the Tampon Tax Fund. This new funding will be launched in 2021 as part of our ongoing response.

Please see the appendix to the financial statements for a full list of grants awarded in 2020.

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants to policy initiatives

In 2020 we awarded £241,083 of which £164,479 was paid out, (2019: £272,939) funding to policy, influencing and research organisations, slightly less than the previous year as we focused our attention on supporting frontline organisations due to the pandemic.

Under this programme, we continued to support organisations that are taking a strategic approach to tackling gendered poverty. Examples of three initiatives funded through this programme include:

Surviving Economic Abuse (SEA)

The Trust is funding SEA’s ‘experts by experience’ initiative which aims to gather insight from women who have experienced economic abuse to influence policy and to develop tools and resources that enable women to thrive. Group members also act as powerful advocates for change by speaking out publicly via the media to ensure that women’s voices are reflected in features about economic abuse.

New Economics Foundation and the Women’s Budget Group

This partnership will incubate a women-led policy development and movement-building process which will build a policy agenda starting with the lived experiences of financially vulnerable women and the local organisations who provide vital services to them. The partnership aims to develop the capacity of local women’s sector organisations to have influence on relevant issues, first at a local and then at a national level, through the provision of leadership development and network building.

Fawcett Society

The Trust is supporting Fawcett to deliver a project exploring the pay and progression of women of colour. Building on the Government’s Race Disparity Unit’s work and the independent McGregor-Smith Review, the project will explore in-depth ways to unlock the potential of women of colour at work, by understanding the inequalities and intersecting barriers they experience, and the solutions they think would help to overcome them.

2. To roll-out the grants to individuals funding model to community grant partners

In the previous year of 2019 the trustee agreed the following model to help expand our grants to individuals’ programme through community grant partnerships:

Criteria for community grant partner • Be aligned with the Trust’s mission and values
selection • Be working with the Trust’s target beneficiary groups
• Have the required capacity / reach
• Have a strong track record of delivery
• Be financially capable, have good leadership
• Have a long-term commitment to their communities
• Have monitoring and evaluation capability
Community grant partner role • Operate the Trust’s grant-making policy locally
• Identify beneficiaries
• Assess need for financial assistance
• Make grant payments to beneficiaries
• Provide impact data to the Trust
• Support and connect beneficiaries
Smallwood Trust role • Partner and geographic selection
• Training and support for partners
• Grant / contract management with partners
• Quarterly reviews
• Consolidate the impact reporting from all partners
• Feed insights into policy / practice development

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2020 was the year that the programme was implemented. In total funding of £549,195 (2019: £0) was awarded to community grant partnerships to focus on the following key drivers of stability:

This significantly increased our capacity to make grants to individuals. The Trust believes that locally based or specialist women’s organisations are well-placed to make grants to the individual women they support as the funds can be used to complement and enhance the services that women’s organisations are already providing.

Though the programme is in its infancy, we undertook a qualitative evaluation of the first year with partners. These were the key learnings:

This feedback will be taken forward in 2021.

3. To undertake research and consultation with stakeholders to inform plans for the 135[th] anniversary of the Trust in 2021 and future strategic direction.

We deferred plans for the 135[th] anniversary to focus on our response to the pandemic.

We did however undertake significant analysis and stakeholder engagement which will help feed into future strategic direction, this included:

Deeper-dive and co-production conversations will be taken forward in 2021.

4. To produce an Annual Impact Report which highlights the Trust’s learning, impact, monitoring and evaluation activities.

The main learnings from our MEL Report and COVID-grants analysis include:

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

During the year there was an increased focus on equity, diversity and inclusion with a particular focus on racial justice as a core part of our mission in reducing gendered poverty. This is discussed in more detail below.

5. To implement the Stabilisation Fund model to support the increase in the Trust’s grant-making.

The main purpose of the Stabilisation Fund is to create a sustainable framework and control mechanism to increase the grant-making spend, while enabling the trustee to remain in the driving seat in relation to decision making on strategy, spend and risk. This is described in more detail on Page 12.

This methodology was implemented in 2020. This model enabled Smallwood to contribute more than £2 million from its own funds towards grant-making (2019: £1,250,000) as part of our coronavirus response in addition to external funds raised from DCMS and The National Lottery Community Fund.

6. To undertake a board evaluation and additional board recruitment activities to continue to strengthen the governance of the Trust.

During the year, the Trust announced plans to recruit additional board members help us accelerate our strategy to achieve a gender equal economy and society. We appointed Prospectus as the recruitment agents to run an open process and to help us make appointments that would help us develop greater diversity, perspective and skills. Dr Ambreen Shah and Faeeza Vaid MBE were appointed after a rigorous process and open competition.

Their biographies can be accessed here.

The recruitment process was initially delayed due to the pandemic and it was therefore decided to defer the board evaluation to 2021 to enable the new board members to be inducted and the board as a whole to develop working relationships and support the additional members in their newly appointed roles.

EQUITY, DIVERSITY AND INCLUSION (EDI)

EDI is a core component of Smallwood’s Governance Action Plan. Our work as an organisation on equity, diversity and inclusion is about ensuring we have a culture (which includes Board members, staff, consultants and any volunteers) that encourages people of all backgrounds and experience to feel a key part of what we do and our mission.

We believe that by having a diverse organisation we will be able to meet our objective of reducing gendered poverty more effectively. We value the voices of those with lived experience who identify with one or more protected characteristics and these voices will be integral to organisational and programme planning.

EDI work that was progressed in 2020 includes:

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Strengthening EDI processes in 2021 is a high priority for our Governance Action Plan. The Board has agreed to:

GRANT-MAKING POLICY

Individuals are eligible if they meet the following criteria:


Woman living on low income and/or in receipt of benefits

Right of residence in the UK

Aged 18 and over

Savings of no more than £4,000

Debt of no more than £10,000 excluding mortgage and any student debt

Evidence / documentation of current financial need

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

We have adopted the following framework for awarding grants to frontline organisations and policy initiatives:

Area for analysis Assessment Criteria
Activities  Does the organisation and its activities fall within our
mission and the outcomes of the Fund?
 Are activities focused on women in greatest need?
 Canthe organisationadapt andinnovate?
Results  Evidence of previous positive results and outcomes
 Quality ofevidence
Leadership  Is there a compelling vision and strategy?
 Can the CEO / management team articulate and deliver
this?
 Is there good governance (including safeguarding) and
direction by trustees?
 Are there clearly defined priorities?
 Are safeguarding and equalities policiesinplace?
People and resources  Does the organisation have the appropriate staffing
structure to deliver?
 Can the organisation identify gaps in capacity and/or
service provision that the Fund can support?
 Are volunteers managed well?
 Does the charity make best use of its other resources
such as IT, IP and any other assets?
 Is the charity successful in leveraging support and
resources from external sources?
Finances  Are there good processes for financial management?
 Are financial resources used efficiently?
 Is there anunqualified audit opinion?
Ambition  Does the charity have the potential to sustain, grow
and/or thrive?
 Does the charity have the potential to improve its
impact?
 Does the charity have the potential to influence
stakeholders and have a wider impact in its area of
focus?

FINANCIAL REVIEW

The financial objectives have been agreed as follows:

The trustee has adopted an interlocking financial framework proposed by Yoke and Co to support the financial objectives of the Trust. The Yoke and Co framework comprises the following:

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The results for the year are set out in detail on page 22. The Trust’s income for the year was £3,729,514 (2019: £1,438,932). The income included restricted funds for grants of £2,764,225 from the DCMS, The National Lottery Community Fund and Barclays.

Expenditure in this year was £5,139,845 (2019: £1,952,216). The increase in expenditure includes substantial external grants and is in line with our strategy of increasing our grant expenditure and strengthening our monitoring and evaluation function. Fund balances at the year-end were £34,483,158 (2019: £36,608,302).

RESERVES POLICY

The reserves policy is as follows:

We wish to hold reserves to ensure the uninterrupted provision of financial assistance to women in poverty and grants to women’s led service delivery and policy organisations, if adverse economic conditions arise or unexpected events materially affect the income from our endowment.

The Board also wish to support an increase in the grant-making over the short to medium term (five years) to help meet the need and demand and help more women out of poverty.

Therefore, the Board have agreed to create a ‘Stabilisation Fund’ of initially £5 million from the expendable endowment to allow the Trust to increase its grant expenditure and/or to cover any shortfall in investment income. The status of the Stabilisation Fund will be reported to and reviewed by the Board on a quarterly based on the following red/yellow/green basis:

RED Over 50% of the fund is currently employed in
supporting grant income in the coming 12
months
YELLOW Between 25% and 50% of the fund is currently
employed in supporting grant income in the
coming12 months
GREEN Less than 25% of the fund is currently
employed in supporting grant income in the
coming12 months

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The total funds held were £34,483,158 (2019: £36,608,302) of which £33,624,105 (2019: £35,363,485) were endowed funds being the capital of the Trust and unrestricted funds of £671,087 (2019: £1,226,949) and £187,966 restricted funds (2019: £17,868). £917,965 was transferred from the expendable endowment to unrestricted funds to support the Stabilisation Fund expenditure. The trustee expects to make similar transfers in the future as the Trust continues to increase its grant expenditure over the next three years.

FUNDRAISING

The Trust does not currently proactively fundraise from the public as it mainly relies on its investment income to fund its activities. During the year, the Trust secured substantial additional funds from DCMS, The National Lottery Community Fund and Barclays to further its objectives. All of these funds were to make onwards grants to organisations. The Trust has not yet voluntarily subscribed to any fundraising standards or scheme. However, as the trustee considers continuing to raise additional income in the future, we will consider signing up for an appropriate scheme.

From time to time the Trust is in receipt of legacies and we undertake a modest amount of advertising aimed at increasing the level of legacies.

There were no complaints during the year.

INVESTMENT POWERS AND POLICY

The Trust holds assets for the generation of income in accordance with the Schemes. The trustee exercises the general power of investment conferred upon them by the Trustee Act 2000. They have delegated discretionary management of some of its assets to an investment manager in accordance with a Charity Commission Order of 19 December 1995.

The investment policy is to create sufficient income and capital growth to enable the Trust to carry out its purposes consistently year by year with due and proper consideration for future needs and the maintenance of, and if possible, enhancement of, the invested funds.

INVESTMENTS

Sufficient cash is held to cover working requirements and provide a readily accessible reserve. 16.45% of all of the funds invested are with the Newton Multi-Asset Fund as part of our new investment mandate to increase the income from the endowment funds to support the Strategic Plan.

The remaining investment assets are managed on a discretionary basis in accordance with a Charity Commission Order of 19 December 1995 by Investec Wealth & Investment Limited ("Investec") and are separated into two discrete portfolios representing assets belonging to the Endowment Funds and the Unrestricted Fund respectively.

Performance of the Newton funds is measured on a total return basis (before management and other expenses) through capital and income return combined. The return on the fund for the full year was a decrease of 0.24%.

Performance of the Investec Endowment Funds portfolio is measured on a total return basis (before management and other expenses) through capital and income return combined. The return on the portfolio for the year was a decrease of 3.82%.

The Unrestricted Fund portfolio comprises a mixture of cash and common investment funds and will be drawn down over the next few years as expenditure exceeds income. It is measured on a total return basis through capital and income return combined. The funds were fully expended in the year.

The Trust has no social investments or programme-related investments.

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

RISK MANAGEMENT

The trustee has identified the major risks to which the Trust is exposed and has established procedures to mitigate them and these are kept under review. The major risks that the trustee has identified and how they are mitigated are:

The Trust maintains a Strategic and Operational Risk Register, which incorporates procedures for mitigating risks, and this is reviewed formally by the trustee on an annual basis.

PLANS FOR FUTURE PERIODS

The objectives for 2021 are as follows:

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Smallwood Trust ("the Trust") was founded in 1886 and is registered with the Charity Commission under charity number 205798. While making grants in Scotland and Northern Ireland, it does not carry out any other activities there and it is the trustee’s opinion that the Trust is not currently required to register with the Office of the Scottish Charity Regulator in Scotland or the Charity Commission Northern Ireland. Trustees have resolved to keep this under review should the Trust’s activities dramatically increase in these jurisdictions. The Trust was formerly known as the Society for the Assistance of Ladies in Reduced Circumstances until 18 May 2017.

In November 2019 Smallwood Trust (Trustee) Limited was appointed as the sole corporate trustee of the Trust, replacing the individual trustees, who were all appointed as the first directors of the limited company.

The Trust has adopted a portfolio model of leadership, with individual Directors of the limited company retaining strategic oversight of the following functions:

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

During the year, a time-limited Futurology Working Group was established to advise the board on future trends and propose ideas for new programmes.

Roles and responsibilities have been agreed for the Chair, Deputy Chair, Directors, Portfolio leads and the Futurology Group.

The patron, trustee, directors of the trustee company, principal officers, principal addresses and professional advisors of the Trust are listed on the Legal and Administrative Information page.

Governing documents

The Trust is an unincorporated association governed by Charity Commission Schemes of 2 November 1917, 9 November 1928, 29 October 2019 and the section 280 resolutions of the trustees dated 18 May 2017 and 1 November 2019.

The Smallwood Trust (Trustee) Limited is the sole corporate trustee of the Trust and is a company limited by guarantee.

RECRUITMENT AND APPOINTMENT OF TRUSTEES

The first directors of Smallwood Trust (Trustee) Limited were the previous individual trustees of the Trust.

Subsequently new Directors of the trustee company were appointed in December 2020 by the board of directors and will hold office for up to three years before retiring and being eligible for re-election for a further two terms of up to three years, after which they must retire for at least one year before being eligible again for reappointment.

Neither Smallwood Trust (Trustee) Limited or the Directors have any beneficial interest in the Trust.

ORGANISATIONAL STRUCTURE

The trustee governs the general policy of the Trust. There were sub-committee meetings to discuss board recruitment, finance and strategy. The day-to-day business of the Trust is managed by the Chief Executive, supported by the team at the HQ in Malvern, Worcestershire and staff working from home in Blackburn, Bristol and Warwickshire.

DIRECTORS’ INDUCTION AND TRAINING

New Directors of Smallwood Trust (Trustee) Limited are provided with information about the Trust and its work, the role and responsibilities of trustees, company directors and the composition and workings of the board. They are given copies of the Trust's and the trustee company’s governing documents and minutes of previous meetings, and offered any training that may be considered necessary. All Directors have the opportunity to attend seminars, and conferences and participate in board development activities.

PAY AND REMUNERATIONS OF THE TRUST’S KEY MANAGEMENT PERSONNEL

Salaries are reviewed annually at the absolute discretion of the Trustee. In addition, an amount equivalent to 10% of gross salary is paid into a defined contribution Group Personal Pension Plan for each member of staff.

RELATED PARTIES

There is no special relationship with any other charity.

SMALLWOOD TRUST

TRUSTEE’S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEE RESPONSIBILITIES

The Directors of Smallwood Trust (Trustee) Limited are responsible for preparing the Trustee 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 trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.

In preparing these financial statements, the trustee is required to:

The trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustee’s report was approved by the Trustee on 14th October 2021.

.............................. D Myers (Chair) On behalf of Smallwood Trust (Trustee) Limited

SMALLWOOD TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEE OF SMALLWOOD TRUST

Opinion

We have audited the financial statements of Smallwood Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Trustee is responsible for the other information. The other information comprises the information included in the Trustee’s Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance or 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 financial statements 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.

SMALLWOOD TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEE OF SMALLWOOD TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the Trustee for the financial statements

As explained more fully in the Statement of Trustee Responsibilities set out on page 16, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines 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 is 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 Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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:

Based on our understanding of charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with trust law requirements over the use of restricted and endowment funds, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such the Charities Act 2011 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income. Audit procedures performed by the engagement team included:

SMALLWOOD TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEE OF SMALLWOOD TRUST

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

Use of our report

This report is made solely to the charity’s trustee, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustee for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG Date: 20 October 2021

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

SMALLWOOD TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Income and endowments from:
Donations and legacies
3
Investments
4
Total income and endowments
Expenditure on:
Raising funds
5
Charitable activities
Total expenditure
6
Net (losses)/gains on investments
10
Net (expenditure)/income
Transfer between funds
Net movement in funds
Fund balances at 1 January 2020
Fund balances at 31 December 2020
Unrestricted
funds
2020
£
22,489
942,800
965,289
-
2,439,116
2,439,116
-
(1,473,827)
917,965
(555,862)
1,226,949
671,087		 Restricted
funds
2020
£
2,764,225
-
2,764,225
-
2,594,127
2,594,127
-
170,098
-		 Restricted
funds
2020
£
2,764,225
-
2,764,225
-
2,594,127
2,594,127
-
170,098
-		 Endowment
Unrestricted
funds
Total
funds
2020
2020
2019
£
£
£
-
2,786,714
38,692
-
942,800
1,249,240
-
3,729,514
1,287,932
106,602
106,602
-
-
5,033,243
1,700,898
106,602
5,139,845
1,700,898
(714,813)
(714,813)
53,107
(821,415)
(2,125,144)
(359,859)
(917,965)
-
-		 Endowment
Unrestricted
funds
Total
funds
2020
2020
2019
£
£
£
-
2,786,714
38,692
-
942,800
1,249,240
-
3,729,514
1,287,932
106,602
106,602
-
-
5,033,243
1,700,898
106,602
5,139,845
1,700,898
(714,813)
(714,813)
53,107
(821,415)
(2,125,144)
(359,859)
(917,965)
-
-		 Endowment
Unrestricted
funds
Total
funds
2020
2020
2019
£
£
£
-
2,786,714
38,692
-
942,800
1,249,240
-
3,729,514
1,287,932
106,602
106,602
-
-
5,033,243
1,700,898
106,602
5,139,845
1,700,898
(714,813)
(714,813)
53,107
(821,415)
(2,125,144)
(359,859)
(917,965)
-
-		 Restricted Endowment
funds
funds
2019
2019
£
£
151,000
-

-
-

151,000
-
-
108,963
142,355
-

142,355
108,963
-
4,255,470
8,645
4,146,507
-
-		 Restricted Endowment
funds
funds
2019
2019
£
£
151,000
-

-
-

151,000
-
-
108,963
142,355
-

142,355
108,963
-
4,255,470
8,645
4,146,507
-
-		 Restricted Endowment
funds
funds
2019
2019
£
£
151,000
-

-
-

151,000
-
-
108,963
142,355
-

142,355
108,963
-
4,255,470
8,645
4,146,507
-
-		 Total
2019
£
189,692
1,249,240
1,438,932
108,963
1,843,253
1,952,216
4,308,577
3,795,293
-

170,098
17,868
187,966		 (1,739,380)
35,363,485
33,624,105		 (2,125,144)
36,608,302
34,483,158		 (359,859)
1,586,808
1,226,949		 8,645
9,223
17,868		 4,146,507
31,216,978

35,363,485		 3,795,293
32,813,009
36,608,302

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

20 -

SMALLWOOD TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2020

2020
Notes
£
£
Fixed assets
Tangible assets
13
9,276
Intangible assets
13
7,650
Investments
14
32,303,026
Investments - cash
14
2,032,286
34,352,238
Current assets
Debtors
15
763,920

Investments
16
-
Investments - cash
16
-
Cash at bank and in hand
653,891
1,417,811
Creditors: amounts falling due within
one year
17
(1,286,891)
Net current assets
130,920
Net assets
34,483,158
Capital funds
Permanent endowment
23,171,757

Expendable endowment
10,452,348

19
33,624,105
Income funds
Restricted funds
20
187,966
Unrestricted funds
671,087
34,483,158		 2019
£
£
8,247
6,750
35,310,486
165,521
35,491,004
49,856
781,438
270,410
314,332
1,416,036
(298,738)
1,117,298
36,608,302
23,648,299
11,715,186
35,363,485
17,868
1,226,949
36,608,302

The financial statements were approved by the Trustee on 14[th] October 2021.

D Myers (Chair) On behalf of Smallwood Trust (Trustee) Limited

SMALLWOOD TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
Notes £ £ £
£
Cash flows from operating activities
Cash used in operations 24 (2,049,945) (1,709,993)
Cash flows from investing activities
Purchase of fixed assets (14,903) (17,358)
Purchase of investments (5,270,032) (2,509,804)
Proceeds on disposal of investments 8,347,124 2,412,898
Dividends and Interest received 923,670 1,249,240
Net cash generated from investing
activities 3,985,859 1,094,976
Net increase/(decrease) in cash and cash 1,935,914 (615,017)
Cash and Cash Equivalents at beginning of year 750,263 1,365,280
Cash and Cash Equivalents at end of year 2,686,177 750,263
Cash and cash equivalents:
Cash at bank and in hand 653,891 314,332
Short term deposits included in fixed and current asset investments 2,032,286 435,931
2,686,177 750,263
Analysis of Net Debt
At 1 January 2020 Cash Flows At 31 December 2020
Cash and Cash Equivalents 750,263 1,935,914
2,686,177

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Smallwood Trust is a public benefit entity as defined by FRS102. The Trust operates from its principal address, Lancaster House, 25 Hornyold Road, Malvern, Worcestershire, WR14 1QQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's governing document, the Charities Act 2011 and the Statement of Recommended Practice for Charities (SORP 2019) (Second Edition, effective 1 January 2019).

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. While the effects of Covid have been significant for our beneficiaries and our level of charitable giving, the pandemic has had no material effect on the Charity’s financial stature. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

The unrestricted fund comprises voluntary and investment income generated by the assets representing the permanent and expendable endowment funds as well as those representing the unrestricted fund itself. The unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

The permanent endowment fund represents the permanent capital of the Trust, and cannot be spent as if it were income. Income arising on this fund can be used in accordance with the objects of the Trust and is included in unrestricted income. Charges incurred in the management of this fund, including investment management fees relating to those investments by which it is represented, are charged to it.

The Trustees have power of discretion to convert the expendable endowment fund into income. It is however their policy to retain the capital of this fund to generate income. Income arising on this fund can be used in accordance with the objects of the Trust and is included in unrestricted income.

1.4 Income recognition

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2019

1 Accounting policies

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Legacies subject to a life interest are not recognised in the financial statements until they become receivable.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is allocated to the particular activity where the cost relates directly to that activity. The fees due in respect of the investment manager's services are charged against income as the cost of raising funds. Salary and other office running costs are apportioned between charitable activity support costs and governance costs based on estimate of staff time to each. The same methods of apportionment have been used in previous years.

Support costs have been differentiated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs relating to trustee meetings.

Grants to individuals are charged in the year in which payment is made. It is clear to beneficiaries that grants from the Trust are voluntary payments from a charitable organisation, which the recipient has no rights to enforce. Future grants are neither noted as a commitment nor accrued as expenditure as the trustees are of the opinion that there is no constructive or legal obligation to continue payments.

Grants to institutions are charged in the year when they are committed and included as creditors until they are paid.

1.6 Fixed assets

Tangible and intangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 0% not depreciated on grounds of immateriality Fixtures and fittings 25% on cost Intangible assets database software amortised over 2 years

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Accounting standards require that provision be made for depreciation of fixed assets having a finite useful life. However, the Trustees are of the opinion that the residual value at the end of the estimated useful life of the freehold buildings is not likely to materially differ from its cost. This is because it is the Trust's policy to maintain the freehold buildings in such a condition that their value is not diminished by the passage of time; the relevant expenditure is charged against income in the financial period in which it is incurred. Therefore, any element of depreciation is considered to be immaterial and no provision is made.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, or in the case of investments at fair value (market value).

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Trustee is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the view of the Trustee in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognized in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

3 Donations and legacies

Unrestricted Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Donations and gifts - 165,600 165,600 12,232 151,000 163,232
Legacies receivable 22,489 - 22,489 26,460 - 26,460
Grant income - 2,598,625 2,598,625 - - -
22,489 2,764,225 2,786,714 38,692 151,000 189,692
4 Investments
Unrestricted Endowment Total Unrestricted
funds funds funds
2020 2020 2020 2019
£ £ £ £
Income from listed investments 942,755 - 942,755 1,247,919
Interest receivable 45 - 45 1,321
942,800 - 942,800 1,249,240
5 Raising funds
Unrestricted Endowment Total Unrestricted Endowment Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Investment management - 106,602
106,602		 - 108,963 108,963
- 106,602 106,602 - 108,963 108,963

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Expenditure - 2020

Direct Costs
Grant Funding
£
£
Fundraising Costs
Investment Management Costs
106,602
-
------------------
------------------
Total
106,602
-
------------------
------------------
Charitable Activities
Grant Funding (see note 8)
-
4,515,312
Support Costs (see note 7)
436,469
-
Governance Costs (see note 7)
-
-
------------------
------------------
436,469
4,515,312
------------------
------------------
Total expenditure
543,071
4,515,312
6 Expenditure - 2019
Direct Costs
Grant Funding
£
£
Fundraising Costs
Investment Management Costs
108,963
-
------------------
------------------
Total
108,963
-
------------------
------------------
Charitable Activities
Grant Funding (see note 8)
-
1,430,382
Support Costs (see note 7)
341,414
-
Governance Costs (see note 7)
-
-
------------------
------------------
341,414
1,430,382
------------------
------------------
Total expenditure
450,377
1,430,382		 Other
Costs
Total 2020
£
£
-
106,602
------------------
------------------
-
106,602
------------------
------------------
-
4,515,312
-
436,469
81,462
81,462
------------------
------------------
81,462
5,033,243
------------------
------------------
81,462
5,139,845
Other
Costs
Total 2019
£
£
-
108,963
------------------
------------------
-
108,963
------------------
------------------
-
1,430,382
-
341,414
71,457
71,457
------------------
------------------
71,457
1,843,253
------------------
------------------
71,457
1,952,216

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

7 Support Costs - 2020
Basis of Charitable Governance Total
apportionment Activities Related Allocated
2020
Staff Costs Staff time 155,918 72,000 227,918
Support Cost contract Contract cost 128,724 - 128,724
DCMS & Lottery Grant Staff Time 70,771 - 70,771
Office running costs Staff time 44,880 - 44,880
Depreciation Use of Equipment 12,974 - 12,974
Legal Purpose of spend 6,335 - 6,335
Publicity and Marketing Purpose of spend 16,867 - 16,867
Governance Costs details note 9 - 9,462 9,462
------------------ ------------------ ------------------
436,469 81,462 517,931
========== ========== ===========
7 Support Costs - 2019
Basis of Charitable Governance Total
apportionment Activities Related Allocated
2020
Staff Costs Staff time 225,390 10,774 236,164
Support Cost contract Contract cost 39,840 - 39,840
Office running costs Staff time 34,883 5,340 40,223
Depreciation Use of Equipment 4,941 - 4,941
Legal Purpose of spend 13,316 27,650 40,966
Publicity and Marketing Purpose of spend 23,044 - 23,044
Governance Costs details note 9 - 27,693 27,693
------------------ ------------------ ------------------
341,414 71,457 412,871
========== ========== ===========

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Grants payable

2020 2019
£ £
Grants to organisations (see appendix) 3,792,350 677,448
Grants to individuals 722,962 752,934
4,515,312 1,430,382

Assuming all grant milestones are met, then Smallwood Trust is expecting to pay an additional £1,046,895 in future payments to existing frontline organisations under current multi-year contracts.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Governance Costs

Governance Costs
2020 2019
Staff Costs 72,000 10,774
Office running costs - 5,340
Trustee meeting and training costs - 3,680
Trustee expenses 1,182 3,369
Legal and Professional Fees - 27,650
Auditors remuneration 8,280 12,000
Accountancy Fees - 8,644
---------------- ----------------
81,462 71,457
========== ==========

Governance costs include payments to the auditors (including VAT) of £8,280 (2019: £12,000) for audit fees.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10 Net gains/(losses) on investments

**Unrestricted ** Endowment Total Unrestricted Endowment Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Revaluation of
investments - (714,813) (714,813) 53,107 4,255,470 4,308,577

11 Trustee

None of the Directors (or any persons connected with them) of Smallwood Trust (Trustee) Limited, the sole Trustee, received any remuneration during the year. Travel expenses paid to 5 of the Directors of the Sole Trustees, for travel and subsistence, amounted to £1,182 (2019: £3,369).

12 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
 2020
2019
Number
Number
7
5
2020
2019
£
£
189,281
191,470
19,276
15,173
19,361 28,574
227,918
235,217		 2020
2019
Number
Number
7
5
2020
2019
£
£
189,281
191,470
19,276
15,173
19,361 28,574
227,918
235,217
235,217

Amounts paid to key management personnel in the year amounted to £80,795 (2019: £80,295).

The number of employees whose annual remuneration was £60,000 or more were:

were:
2020 2019
Number Number
£60,000 to £70,000 1 1

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

13
Fixed assets
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
Carrying amount
At 31 December 2019		 Intangible
Total
Freehold
land and
buildings
Fixtures and
fittings
£
£
£
10,800
657
36,394
10,800
-
4,103
21,600
657
40,497
4,050
-
28,804
9,900
-
3,074
-
13,950
-
31,878
7,650
657
8,619
6,750
657
7,590		 Tangible
Total
£
37,051
4,103
41,154
28,804
3,074
31,878
9,276
8,247

The freehold property is Lancaster House, 25 Hornyold Road, Malvern, which has been estimated by the trustee to have a market value of £ 400,000 (2019 - £400,000).

14 Fixed asset investments

=

Fixed asset investments
Cost or valuation
At 1 January 2020
Additions
Revaluation
Investment managers costs and dividends
Net transfer out
Disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
Investments at fair value comprise:
Equities
Fixed interest securities
Cash held within investment portfolio		 Listed
investments
Cash in portfolio
Total
£
£
£
35,310,486
165,521
35,476,007
5,273,040
(5,270,032)
3,008
(686,530)
-
(686,530)
-
(312,301)
(312,301)
-
(144,872)
(144,872)
(7,593,970)
7,593,970
-
32,303,026
2,032,286
34,335,312
32,303,026
2,032,826
34,335,312
35,310,486
165,521
35,476,007
2020
2019
£
£
28,916,062
33,022,635
3,386,964
2,287,851
2,032,286
165,521
34,335,312
35,476,007

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

15
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
16
Current asset investments
Short term deposits
Cash in portfolio
17
Creditors: amounts falling due within one year
Accrual for grants payable
Trade creditors
Accruals and deferred income		 2020
£
755,875
8,045
763,920
2020
£
-
-
-
2020
£
1,187,714
86,182
12,995
1,286,891		 2019
£
40,250
9,606
49,856
2019
£
781,438
270,410
1,051,848
2019
£
223,032
37,877
37,829
298,738

18 Retirement benefit schemes

Defined contribution schemes

The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund. For some employees the Trust pays the employers contribution directly the employees personal pension scheme.

The charge to the Statement of Financial Activities in respect of defined contribution schemes was £19,361 (2019: £28,574).

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19

Endowment funds

Endowment funds represent assets which must be held permanently by the Trust. Income arising on the endowment funds can be used in accordance with the objects of the Trust and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Permanent endowments
Permanent endowment fund
Expendable endowments
Expendable endowment fund		 Balance at
1 January
2019
£
20,811,319
10,405,659
31,216,978		 Income
Expenditure Revaluations
gains and
losses/Transfers
Balance at
1 January
2020
£
£
£
£
-
-
2,836,980 23,648,299
-
(108,963)
1,418,490 11,715,186
-
(108,963)
4,255,470 35,363,485		 Movement in funds
Income Expenditure
Revaluations
gains and
losses/transfers
Balance at
31 December
2020
£
£
£
£
-
-
(476,542) 23,171,757
(106,602)
(1,156,236) 10,452,348
-
(106,602)
(1,632,778) 33,624,105

The permanent endowment fund has arisen from the initial capital on the establishment of the Trust as a registered charity, to which it has been added to further on the capital absorption of other charities. £917,965 was transferred from the expendable endowment to unrestricted funds to support the Stabilisation Fund expenditure. The trustee expects to make similar transfers in the future as the Trust continues to increase its grant expenditure.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Income Expenditure Balance at Income Expenditure Balance at
1 January 1 January 31 December
2019 2020 2020
£ £ £ £ £ £ £
Tampon
Tax fund 9,223 70,000 (79,223) - - - -
Barclays - 81,000 (63,132) 17,868 165,600 (101,239) 82,229
DCMS - - - - 2,100,000 (2,005,292) 94,708
TNLCF - - - - 498,625 (487,596) 11,029
------------------ ------------------ ------------------------ ---------------- ------------------------ --------------------- ------------------
9,223 151,000
(142,355)		 17,868 2,764,225
 (2,594,127) 187,966
======== ========= =========== ======= ------========= ============== =========

The Tampon Tax Fund was a grant from DCMS to enable the charity to fund women's employability projects.

The Barclays donation provides support to our community grant partnerships.

Funding from DCMS and the National Lottery Community Fund (TNLCF) is to provide grants to women’s sector organisations as part of the COVID-19 emergency response. Funds will be expended by March 2021 and May 2021 respectively.

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

21 Analysis of net assets between funds

Unrestricted
Funds
2020
£
Fund balances are represented by:
Tangible and intangible assets
16,926
Investments
711,207
Current assets/(liabilities)
(57,046)
671,087		 Restricted
Funds
Endowment
Funds
2020
2020
£
£
-
-
-
33,624,105
187,966
-
187,966
33,624,105		 Total
Unrestricted
Funds
2020
2019
£
£
16,926
14,997
34,335,312
112,522
130,920 1,099,430

34,483,158 1,226,949
 Restricted
Funds
Endowment
Funds
Total
2019
2019
2019
£
£
£
-
-
14,997
35,363,485
35,476,007
17,868
-
1,117,298
17,868
35,363,485
36,608,302

SMALLWOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

22 Related party transactions

There were no disclosable related party transactions during the year (2019: none).

23 Distribution from Grove Hill Trust

In 2017 income of £288,318 was received from the Grove Hill Trust, based in Jersey. This followed negotiations with the Trustee of the Grove Hill Trust and after the Trustees of the Smallwood Trust signed a deed of indemnity as a condition of receiving the distribution. In 2020 the deed of indemnity was novated from the individual Trustees of the Smallwood Trust to the Smallwood Trust (Trustee) Limited. Given the clauses negotiated in the indemnity, the current view of the Trustee is that it is not probable that the funds will have to be returned. The Trustee has resolved to review the situation on a regular basis.

24

Reconciliation of net movement in funds and net cash flow from
operating activities
2020
£
(Deficit)/surplus for the year
(2,125,144)
Adjustments for:
Investment income recognised in statement of financial activities
(942,800)
Fair value gains and losses on investments
714,813
Depreciation of fixed assets
12,974
Movements in working capital:
Decrease in debtors
(697,941)
increase in creditors
988,153
Cash used in operations
(2,049,945)		 2019
£
3,795,293
(1,249,240)
(4,308,577)
4,941
(4,788)
52,378
(1,709,993)

.

SMALLWOOD TRUST

APPENDIX TO THE FINANCIAL STATEMENTS

FULL LIST OF GRANTS AWARDED

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants paid to organisations
2020 2019
£ £
4Wings 38,496 -
A Way Out 45,412 10,000
Alice Charity 39,592 -
Alpha Vesta CIC 11,820 -
Anawim 33,787 -
Angelou Centre - 14,955
Apna Haq 20,323 -
ARCH 52,703 -
Aspirations Day Programme 17,770 -
Baby Aid Birmingham CIC 25,000 -
Beyond the Page Ltd 23,233 -
Beyond the Streets 28,292 -
Big Help Project 23,629 -
Birmingham and Solihull Women's Aid 24,991 -
Birth Companions 23,100 -
Blackburne - womens tech 25,000 -
Bloody Good Period 30,000 -
Brighton Women's Centre (BWC) 14,352 -
Building Futures East 28,436 -
C2C Social Action 24,734 -
Campaign for Learning - 12,820
Caritas Diocese of Shrewsbury 19,273 -
Cavell Nurse's Trust 25,000 -
Changing Life Directions 10,060 -
CoLab Exeter 79,302 -
Community-Led Action and Savings Support (CLASS) 15,830 -
Connected Routes CIC 27,300 -
Coventry Haven 8,516 8,516
Coventry Law Centre 17,000 26,992
Coventry Panahghar Project 30,000 -
CRASAC 15,223 11,918
Creative Design & Manufacture UK Limited 10,130 -
Crossroads Derbyshire 22,417 -
Deaf Ethnic Women's Association (DEWA) 9,000 -
DINN Enterprise CIC 25,000 -
Ella's Home 24,611 -
Encompass Southwest 25,207 -
EVA Women's Aid 23,000 -
Fawcett Society 50,934 28,285
Feathers Futures CIO 20,044 -
First Step North East 20,235 -
Foleshill Women's Training 36,267 35,990
Footprints Project - 15,000

SMALLWOOD TRUST

APPENDIX TO THE FINANCIAL STATEMENTS

FULL LIST OF GRANTS AWARDED

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants paid to organisations (continued)
2020 2019
£ £
Fourth Action 29,368 -
Futures Theatre 19,000 -
Getaway Girls 27,972 -
Gilgal Birmingham 27,471 -
Gingerbread 45,000 -
Girl Dreamer 15,000 -
Glasspool - 50,000
Granby Somali Women's Group (GSWG) 21,400 -
Grimsby Institute of Further and Higher Education - (9,950)
Growing Club CIC 21,537 -
Halo Project 25,000 -
HARV 29,827 -
Heaton Norris Pavilion Community Centre 10,000 -
Her Centre 20,000 -
Hull Sisters 15,000 -
Imagine Torbay Multicultural Group CIC 11,122 -
Insight Society 14,000 -
Inspire 70,000 -
Inspire Women Oldham - 15,000
Inspire at St Peters 26,681 15,000
Inspired Neighbourhoods CIC 20,009 -
Irise International 30,000 -
Joanna Project 11,951 -
Kairos WWT 15,167 11,833
Keighley Association for Women and Children's Centre 29,400 -
Kilmarnock Road Children, Young People and Family Centre - (5,646)
Lancashire Women 58,739 -
Lesbian Immigration Support Group (LISG) 9,500 -
Maternity Action 20,000 -
Migdal Emunah Ltd 21,445 -
Muslim Womens Council 17,000 14,800
My Sisters Place 55,000 -
Nanny Solidarity Network 10,012 -
New Economics Foundation 101,875 163,842
NILS 15,000 -
North Tyneside Disability Forum 20,165 -
Old Hall People's Partnership 13,437 -
OLDALONE UK 26,892 -
One Knowsley 20,090 -
One Voice 4 Travellers 18,546 -
Pathway Project 27,131 -
Pathway project Burntwood 25,000 -
Platform Thirty1 23,413 -
Positively UK 19,769 -
Precious Gems 13,885 -
Preston Road Women's Centre - 15,000
Rape and Sexual Abuse (RASA) Centre Ltd 9,829 -

SMALLWOOD TRUST

APPENDIX TO THE FINANCIAL STATEMENTS

FULL LIST OF GRANTS AWARDED

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants paid to organisations (continued)
2020 2019
£ £
Rochdale Connections Trust 25,000 -
Roshini Birmingham 19,044 -
Safety 4 Sisters 26,502 -
Saheli 26,848 -
SAMEE 47,817 14,870
Sandwell African Women's Association 17,750 -
Savera UK 25,000 -
Shama Women's Centre 29,857 -
Sheffield Women's Aid 13,024 -
Sister System 15,306 -
Sisters of Frida 13,500 -
Smart Works 54,712 -
Somali Girls Can 25,000 -
Somali Welfare Trust 15,873 -
Sophie Hayes Foundation 52,858 -
Spark Burntwood CIO 15,134 -
Staffordshire Women's Aid 51,590 -
Street Talk 13,486 -
Success4All CIO 16,737 -
Sunderland Women's Centre 9,772 -
Support and Action for Women's Network ( SAWN) 29,600 -
Surviving Economic Abuse 60,000 30,000
Teen Action 10,100 -
Tenbury NILS Scheme 24,370 -
The Childrens Society 33,333 -
The Halo Project 19,445 -
The Happy Baby Community 24,700 -
The Motherhood Plan Trading As 'Pregnant then Screwed' 25,250 -
The My Way Project 9,520 -
Time to Change CIC - 10,000
Timewise 30,850 -
Together Women 58,750 -
TWO 25,000 -
Tyneside Women's Health 22,046 -
University of Nottingham - 25,000
Venus 50,000 10,000
Wai Yin Society 22,174 -
Water Lily Project 7,235 -
Well Women Centre 21,300 -
Winner, The Preston Road Women's Centre Ltd 29,301 -
Women at Wish 22,987 -
Women Into Construction CIC 19,828 -
Women Like Us - 14,961
Women Today CIC 21,866 -
women@thewell 26,315 -
Women’s Health in South Tyneside (WHiST) 29,308 14,740
Womens budget group 89,725 18,093

SMALLWOOD TRUST

APPENDIX TO THE FINANCIAL STATEMENTS

FULL LIST OF GRANTS AWARDED

FOR THE YEAR ENDED 31 DECEMBER 2020

Grants paid to organisations (continued)
2020 2019
£ £
Women's Health Information and Support Centre 11,808 -
Women's Health Matters 29,239 -
Women's Resource Centre 66,073 17,919
Women's Voices CIC 15,820 -
Women's Work Derbyshire 25,621 -
Womenzone Community Centre 30,000 14,956
Wonderfully Made Woman 21,268 -
Working Chance 30,000 30,000
Young Women's Housing Project 26,039 -
Young Women's Trust 25,000 -
YSS 99,397 42,554
Zinthiya Ganeshpanchan Trust 77,620 -
-------------------------- ----------------------
3,792,350 677,448
============ ==========