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← Charity Of Richard Cloudesley

2021-06-30-accounts

Cloudesley Support in Islington for 500 years Enlrarr Annual Report and Accounts 2020121

TRUSTEE – RICHARD CLOUDESLEY TRUSTEE LTD

Directors of the Trustee Finance &
Endowment
Committee		 Staffing
Committee		 Grants
Committee
Ex-officio
The Mayor of Islington
Archdeacon of Hackney appointed
Revd Ben Bell – resigned 13/9/21 ✓
London Borough of Islington nominated
Denise Ward – Vice Chair ✓ ✓
Tanya Parr ✓
Cllr Janet Burgess MBE - Vice Chair
from 10/3/21		 ✓
Cllr Flora Williamson ✓
Deanery Synod nominated
Susan Sorensen ✓
Sam Prabhu Rubandhas – until 21/7/20 ✓
Seun Olateju ✓
Jean Willson OBE ✓ ✓
Elected
Mary-Therese Barton ✓
Margaret Elliott – Chair until 9/12/20 ✓ ✓ ✓
Adam Jenner ✓
Delyth Richards – Vice Chair until
9/12/20–Chair from 10/12/20		 ✓ ✓
Sharon White ✓

Peter Roscrow was a co-opted member of the Finance & Endowment Committee throughout the year

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ADMINISTRATION & ADVISORS

REGISTERED OFFICE & Office 1.1
OPERATIONAL Resource for London
ADDRESS 356 Holloway Road
London N7 6PA
BANKER CAF Bank Limited ESTATE MANAGERS Daniel Watney LLP
Kings Hill 165 Fleet Street
West Malling London EC4A 2DW
Kent ME19 4TA
INVESTMENT Sarasin & Partners LLP
MANAGERS Juxon House
100 St Paul’s
Churchyard
London EC4M 8BU
LEGAL ADVICE Bates Wells LEGAL ADVICE Charles Russell
(Structural/Charity) 10 Queen Street Place (Property/Estate Speechlys
London EC4R 1BE management) 5 Fleet Place
London EC4M 7RD
AUDITOR Sayer Vincent LLP
Invicta House
108-114 Golden Lane
London EC1Y 0TL
CHARITY NUMBER 205959 TRUSTEE COMPANY 7425897
NUMBER

Registered with the Charity Commission as Charity of Richard Cloudesley, the charity uses the working name Cloudesley. Richard Cloudesley Trustee Limited is the related Trustee Company

KEY MANAGEMENT PERSONNEL

Melanie Griffiths Director and Company Secretary
Yvonne Amar Grants Manager (until 18 May 2021)
Catherine Sorrell Grants Manager (from 12 July 2021)
Kevin Turner Grants Manager (from 12 July 2021)
Phillip Everett Finance Manager

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CLOUDESLEY

The Trustee of the Charity of Richard Cloudesley, which operates under the name Cloudesley, has pleasure in presenting the report and accounts for the charity’s activities in the year to 30 June 2021.

The reference and administrative information set out on pages 2 and 3 form part of this report. The financial statements comply with current statutory requirements, the trust deed and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Achievements and Performance

Grants Awarded

During the year the charity awarded grants totalling £1,732,704. These include grants totalling £388,146 which were directly in response to the COVID-19 crisis.

Response to COVID-19

The COVID-19 pandemic significantly affected the charity’s activities throughout the financial year. A summary of the charity’s response to this unprecedented situation is detailed below:

• Operations

The charity has continued to operate efficiently and effectively throughout the crisis. Staff have worked from home while Board, Committee and other meetings have been held remotely. Contact has been maintained with beneficiaries, other local contacts and funders, and advisors and professional bodies have provided support as required

• Initial Grant Programmes

As reported in last year’s trustee report, the charity’s initial responses to the crisis provided additional support to its beneficiaries in the following ways:

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• Further Grant Programmes

Following the initial grant programmes detailed above, the charity developed a number of grant funding streams to assist its beneficiaries to deal with the ongoing effects of the crisis. These funding streams were developed after consultation with beneficiaries and during the current financial year grants totalling £359,445 were awarded as follows:

• Financial position

The charity is pleased that its endowment continues to perform very well and has increased in value during the year by £5,345,723 from £53,361,342 at 30 June 2020 to £58,707,065 at 30 June 2021. The charity recognises the cyclical nature of investment performance and intends to continue to manage the endowment prudently while seeking to increase the value of the grants awarded over time.

• Plans for year ended 30 June 2022

The charity recognises that, despite the recent easing of restrictions, the additional needs of local residents, organisations and churches created by the pandemic will continue for some time to come. It will take these needs into account when awarding grants in the year ended 30 June 2022 and has allocated grants budgets accordingly.

Staff are beginning to return to the charity’s office and resume in person meetings with local organisations, churches and other contacts and some face-to-face Committee meetings have been held since the year end. Going forward it is planned to have a mixture of office based and virtual working by staff, together with face to face and virtual Board and Committee meetings.

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Health & Welfare Programmes

The charity’s Scheme specifies that half of the residue of its income is for ‘relief in sickness for the purpose of relieving in cases of need persons who are sick, convalescent, disabled, handicapped or infirm’ , and the charity seeks to address this through its Health and Welfare programmes.

Over the years, the charity has taken on a number of small funds, known as Exclusive Medical Funds, from the Richard Cloudesley Charity Convalescent Homes Fund, Islington Relief in Need, Islington Relief in Sickness, Finsbury Dispensary Relief in Sickness, Dame Sarah Temple Foundation and Brand’s Gift Charity. The income generated from these invested funds is only applicable towards the charity’s Health and Welfare Grants programmes (see notes 2 and 16 for further information).

• Grants for individuals

During 2020/21, the charity continued to operate its Cloudesley Partners’ programme of crisis/welfare grant awards for individuals. Through this programme, the charity gives grants to local voluntary organisations (Cloudesley Partners) which are working with a range of different people in Islington. The Partners then distribute this money by making grants of up to £500 to individuals who have health needs and/or disabilities and are in need of financial support. A grant as a contribution to administration costs of 10% is made to each of the organisations as recognition of the time involved in administering and monitoring these grants.

In response to the additional needs created by the COVID-19 crisis the charity considerably increased its funding to the Cloudesley Partners awarding a total of £145,000 to 16 partners for distribution during the year ended 31 December 2020. During the year 2,057 grants (2019 – 1,407) were made to individuals by the Cloudesley Partners to help residents in a wide variety of ways, including for emergency expenses (such as food, clothing, accommodation and travel costs), ‘white goods’ (for example, cookers and washing machines), furniture and furnishings, medical reports, legal documents and fees, disability equipment and Debt Relief Orders. The charity has to date awarded a total of £143,000 to 15 Cloudesley Partners for distribution during the year ended 31 December 2021. A breakdown of the organisations awarded Cloudesley Partner grants during the current and previous financial year are set out in note 22 to the accounts. Further information about the programme is available on the charity’s website.

During 2020/21 the charity continued to work in partnership with Cripplegate Foundation on the Catalyst Programme which is a creative grant-making programme that gives partner support organisations the ability to provide small grants to help vulnerable residents to meet personal goals and to connect to opportunities and services. In September 2019 funding of £70,000 was agreed by Cloudesley. This was divided equally across seven organisations and covered the period of 24 months to 31 December 2021, split evenly between the two calendar years in question. During the year the charity awarded a further Catalyst grant of £5,000 to cover the period to 31 December 2021 as a pilot grant to Age UK Islington. A breakdown of the organisations receiving these grants is set out in note 22 to the accounts. Further details about the Catalyst programme are available on the charity’s website.

During the year to 31 December 2020, over 150 grants were made to vulnerable residents under the Catalyst Programme. These included the costs of training courses to improve employment opportunities and funding activities which both increase skills and provide opportunities for social interaction, for example, music and painting courses.

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During the year the charity conducted a review of its programme of grants for individuals, which was overseen by a group of trustees. As part of the review, feedback on the programme was gathered from a range of external agencies, including the local organisations which distribute the Cloudesley Partners and Catalyst funding, and telephone interviews were carried out with a number of individual grant recipients. The review proposed that a number of minor changes be made to the programme but concluded that, overall, it is appropriate and effective. The findings of the review were approved by the Board at its meeting in June 2021.

• Grants for organisations

The charity’s Health and Welfare funding also provides grants to organisations that offer support to people with health needs and/or who are disabled and living in poverty in the area of benefit. The charity addresses its ‘Sickness Object’ by supporting sustainable organisations that demonstrate initiative in tackling health issues.

The Board has agreed a Health Grants to Organisations programme which runs from 2019 until 2024. The programme aims to reduce health inequalities in Islington by improving health outcomes amongst people who are living in poverty and experiencing multiple disadvantages. The programme comprises of a Principal Grants Fund, a Development Fund and a Grants Support Fund. In addition, the charity continues to provide a number of strategic grants.

• Principal Grants Fund

The Principal Grants Fund provides a small number of larger, multi-year grant awards for core or project costs to organisations that have been identified by the charity and invited to apply. These grantees are established voluntary sector organisations with a track record of delivering positive health outcomes for local residents. The first awards from this fund were made in June 2019 with a total of £315,000 being awarded to four organisations as grants covering a three-year period. The projects covered by these grants are:

Centre 404 - Support to people with learning disabilities and their families

The Manna - Supporting vulnerable adults affected by homelessness, addiction, poor health and poverty

The Maya Centre - Counselling service for women who have experienced trauma and abuse

Solace Women’s Aid - Support service to survivors of childhood and adult sexual violence (including refuges)

The projects have progressed well during the financial year and the charity looks forward to continuing to monitor their progress over the remaining year of the grant programmes. In September 2020 four further awards were made from this fund with a total of £360,000 being awarded as grants covering a three-year period. The projects covered by these grants are:

Holloway Neighbourhood Group – Mental health and wellbeing projects for local residents

Islington Centre for Refugees and Migrants – Practical support to access health services and tackle multiple disadvantages

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St Luke’s Parochial Trust – Improving the health and wellbeing of vulnerable older people

Stuart Low Trust – Addressing health inequalities through a socially therapeutic arts and nature programme

As stated earlier in the report, a fifth principal grant was awarded to The Margins Project directly in response to the COVID-19 crisis.

• Development Fund

The Development Fund aims to provide local organisations with the flexibility and initial funding to develop specific projects, to test a new approach in tackling health inequalities or address an identified gap in local service provision. An award from this fund of £45,000 was made to Manor Gardens Welfare Trust in September 2020. The grant is for a new Health Connector role to help provide efficient and individualised support to Manor Garden’s clients.

• Grants Support Fund

The first awards from the Charity’s Grants Support Fund were made during the year. A grant of £2,000 was awarded to Manor Gardens Welfare Trust to fund an evaluation of the development grant detailed above once the grant term has been completed. A grant of £6,500 was awarded to Help On Your Doorstep – with whom the charity has worked closely for many years – to cover the costs of an internal review.

As stated earlier in the report, a further COVID-19 Support Grant was awarded to Islington Refugee and Migrant Forum directly in response to the pandemic.

• Strategic Grant to Islington Giving

Islington Giving was launched in September 2010 with the aim of raising £3 million over three years by asking local residents and businesses to give money or time to support local people in need. The campaign initially identified three areas for support - tackling poverty, combating isolation and investing in young people, with volunteering underpinning this campaign. The original commitment was that Islington Giving would invest £1 million over five years in each of these three areas for support. Cloudesley was one of the original coalition members supporting Islington Giving, along with Cripplegate Foundation and the Morris Charitable Trust.

In 2015, the Board of Islington Giving (which includes Cloudesley representation) agreed that Islington Giving should move from being a time limited campaign to having a permanent role in the borough. Today, Islington Giving continues as a coalition of funders, businesses, voluntary organisations and residents and is working to:

Since its inception, Islington Giving has raised c. £9.8 million.

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In September 2020 Cloudesley renewed its commitment to Islington Giving by awarding a grant of £100,000 to cover the two years to 31 December 2022 and split equally between the two years. This grant is being used in line with Cloudesley’s charitable object for the ‘relief of sickness’ of vulnerable people in Islington.

• Other Strategic Grants

In September 2019, the charity renewed its longstanding grant support for both Islington Law Centre and Help on your Doorstep to provide advice and outreach services for vulnerable people in financial need by providing each organisation with funding of £107,000 to cover the three-year period to 31 December 2022.

Since May 2017, the charity has supported a Welfare Benefits Project which aims to address long waiting lists for welfare benefits advice being experienced by Islington residents and focuses on Personal Independence Payment and Employment & Support Allowance. The project has been successfully run by the Islington Law Centre, with Cloudesley’s grants being used towards the volunteer form filling clinic supervised by the Law Centre. In September 2019, the charity agreed a further grant of £61,000 to cover the three-year period to 31 December 2022.

As stated earlier in the report, the charity also awarded small grants totaling £139,500 directly in response to the COVID-19 crisis.

A breakdown of the recipients of all health and welfare grants made to organisations in the current and previous financial years is included in note 22 to the accounts and further details are available on the charity’s website.

Church Grants Programme

• Main Church Grants Fund

In January 2019, the charity set up a Church Grants Review Group, comprised of trustees, local church representatives and staff to review the charity’s Church Grants Programme and develop a funding programme to apply from 2020 to 2025. During the review, a formal consultation with all the beneficiary churches was undertaken and in addition a number of other parties were consulted including Diocese of London Parish Property Support Team. In December 2019, the Board agreed a Church Grants Funding Programme to apply from 2020 to 2025. The programme consists of a Main Church Grants Fund and an Urgent Repairs Grants Fund.

The following funding priorities apply to the Main Church Grants Fund:

The Urgent Repairs Grants Fund provides grants of up to £10,000 intended to deal with urgent and unforeseen repairs quickly resulting in an immediate improvement to the fabric of the church building(s).

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During 2020/21, under its main church grants and urgent repairs grants programme the charity awarded a total of 30 grants to 21 of the 27 churches in the Islington Deanery. The total amount awarded was £709,058. The grants awarded covered a wide variety of projects including:

Two small grants totalling £9,400 were awarded under the Urgent Repairs Grants Fund

• Other Church Grants

As reported in previous years, the Sustainable Church Buildings Project (SCBP) was an innovative partnership project aiming to increase the energy efficiency of church buildings, cutting their running costs, and helping the environment. Most of the grants awarded under this project were approved in the years ended 30 June 2018 and 30 June 2019; the final two small grants totalling £5,458 were awarded in the year ended 30 June 2020.

As stated earlier in the report, the charity also awarded grants totaling £113,241 to assist churches during the COVID-19 crisis.

A breakdown of the recipients of all main church grants made in the current and previous financial years is included in note 21 to the accounts and further details are available on the charity’s website.

Finance and endowment review

Total Return Accounting

In December 2018 Trustees resolved to adopt total return accounting as from 1 July 2019. The endowment was valued at £21,600,453 as at 31 December 1998, this being the earliest date at which a reliable valuation could be obtained. The value of the endowment at 30 June 2019 was £53,136,236. Therefore, the adoption of total return accounting created an initial trust for investment of £21,600,453 and an unapplied total return of £31,535,783.

Total return accounting permits the charity to allocate from the unapplied total return to unrestricted funds such sums as the Trustees think appropriate in furtherance of its work. In making these transfers the charity will seek both to be even-handed as between current and future beneficiaries and to maintain the balance of the unapplied total return at an appropriate level considering the volatility of investment markets. The level of the initial unapplied total return made it clear that there was scope for the charity prudently to increase its level of grant awards considerably. Accordingly the charity considerably increased the level of grants during the current year. The total grants awarded during the year were £1,732,704 which represents 3.0% of the value of the endowment at 30 June 2021 of £58,707,065. The charity’s aim is to continue to annually award grants which equate to approximately 3.0% of the value of the endowment.

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Trustees wish to maintain the real value of the trust for investment going forward and, therefore, a transfer from the unapplied total return has been made at the year end in line with the increase in the Retail Prices Index during the year.

Summary of Financial Performance

The charity is reporting net expenditure before gains on investments of £1,174,169, based on income of £1,490,511 and expenditure of £2,664,680. This compares with net income before gains/losses on investments in 2019/20 of £19,325, income of £1,758,201 and expenditure of £1,738,876. During the year, the total value of church grants awarded – net of write backs - was £822,299 (2019/20 - £444,789) and of health and welfare grants was £910,405 (2019/20 - £536,853).

There were net gains on investments of £5,052,092 and a gain on revaluation of properties of £1,467,800 in 2020/21 making a net increase in funds for the year of £5,345,723. The net losses on investments for 2019/20 were £64,805 and the gain on revaluation of properties was £270,586 making a net increase in funds in 2020/21 of £225,106.

Endowment

The charity holds and manages a permanent endowment of almost £59 million consisting of property on the historic Cloudesley Estate and a securities portfolio. Income decreased in this financial year from £1,758,501 in 2019/20 to £1,490,511 in 2020/21. The majority of this decrease - £240,546 – was due to lower investment income as many companies reduced their dividends due to the economic effects of COVID-19 and the appreciation of sterling lead to lower overseas income. However, this reduction in investment income was offset by gains on investments of £5,052,092. Rental income from the charity’s properties decreased slightly by £27,020 but this was offset by a gain of £1,467,800 on revaluation of the properties. The charity is pleased that both elements of the endowment have performed so strongly during the year.

Overall Investment Policy

The charity has an Overall Investment Policy covering both its property estate and its securities portfolio. The main elements of the policy are:

Property Portfolio

During the year, Daniel Watney LLP continued to act as the charity’s estate managers. Following a comprehensive review of the charity’s property portfolio Daniel Watney have produced a planned maintenance programme. This programme includes internal and external redecoration of the three Cloudesley Mansions blocks and refurbishments to properties let as protected and assured shorthold tenancies. Significant works have already been conducted – including works to six properties during the year ended 30 June 2021 at a total cost of £262,554 - and further maintenance

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works are planned for 2021/22. The charity will evaluate future refurbishment opportunities as they arise and seek to further increase the revenue and capital returns from its property portfolio. Daniel Watney carried out a desk top valuation of the charity’s properties as at 30 June 2021 and, accordingly, the Trustees valued the charity’s property at £29,900,650 as at 30 June 2021. In Autumn 2019 the charity conducted a review of its contract for estate management and Daniel Watney LLP were confirmed in post. The charity intends to conduct a further review in 2024.

Investment Portfolio

At 30 June 2021 the market value of the charity’s investments was £29,460,024. The vast majority of the investments are held in a discretionary portfolio which is actively managed on the charity’s behalf by Sarasin & Partners LLP. The investment objective is to maintain the real value of capital over the long-term whilst generating a growing stream of income above inflation. The long-term investment objective is to outperform inflation – as measured by the Consumer Prices Index – by 4% per annum. Since its inception in May 2015 the portfolio has considerably outperformed both its peer group – as measured by the Asset Risk Consultants Steady Growth Index - and the long-term investment objective. During the year the Finance and Endowment Committee – whose members include investment professionals – met virtually with the charity’s investment managers on two occasions and the charity received detailed quarterly reports.

The Trustees regularly review the charity’s environmental, social and governance (ESG) investment policy. The current policy is not to invest in companies involved in the manufacture of tobacco or in companies which have more than 5% of their turnover from any of the following:

Trustees believe that this ESG policy is in line with the charity’s ethos and objectives and the investment managers have confirmed that its adoption has not had a significantly adverse impact on investment returns.

In early 2020 the charity conducted a review of its contract for investment management and Sarasin & Partners LLP were confirmed in post. The charity intends to conduct a further review in 2023.

During the year the charity has commenced a detailed review of its current investment practices and policies against the recommended practice set out in the report published by the Association of Charitable Foundations (ACF) as part of its Stronger Foundations Project. The review is initially beginning undertaken by the Finance and Endowment Committee with regular reports being made to the Board. The ACF report sets out seven pillars of best investment practice. Cloudesley has reviewed its current practices against these pillars and concluded that for three it is “at a fairly advanced stage” and for the other three it has “made some progress”. The charity is currently considering whether there are opportunities to invest its endowment more intentionally and has consulted with its investment and estate managers regarding this. It is planned to present proposals to the Board at some point during the current financial year.

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Expenditure

The charity’s expenditure falls into several categories, the main one of these being its grant-making activities. The charity also incurs expense in maintaining its estate, administering the charity and in investment management fees. Total expenditure during the year was £2,664,680 which is an increase of £925,804 on the expenditure for 2019/20 of £1,738,876. This increase is mainly due to (a) an increase of £676,037 in grants awarded – net of write backs – and (b) an increase of £219,987 in investment property costs. Details of grants awarded and a summary of property costs are given earlier in the report.

Remuneration policy

The Trustees have agreed a remuneration policy to underpin the charity’s commitment to ensuring that its staff are paid and treated fairly. The charity gives a level of salary and other benefits to ensure that staff with an appropriate level of skills and experience can be recruited and retained so that the charity’s objects can be delivered with the greatest possible impact. The Staffing Committee reviews salaries and benefits of all staff against other charitable trusts taking into account relevant factors and makes recommendations to the Finance and Endowment Committee and the Board.

Risk review

The risk register is reviewed annually by the Finance & Endowment Committee and the Board. In accordance with best practice the charity has throughout the COVID-19 crisis maintained and updated a detailed risk assessment on COVID-19. This is maintained as a supplement to the main risk register and has also been reviewed by the Board.

The charity considers that its current key risks are:

In May 2021, the co-opted member of the Finance and Endowment Committee, the Director and Finance Manager undertook an internal audit. The review covered the charity’s financial controls and procedures and no significant issues were highlighted by this audit. A spot check on payments was also conducted by two trustees and there were no issues arising from this. The charity has written ‘Financial Procedures’ and these were last updated and approved by the Board in December 2020. The charity also has a Business Continuity Plan to enable it to respond effectively to a number of possible scenarios with the minimum impact possible on its activities. In accordance with best practice, during the year the charity developed and formally adopted a Counter-fraud policy, a Whistleblowing policy and a fraud response plan.

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Fundraising Policy

The trustees are aware of their obligations under the Charities Act to report the charity's fundraising policy. The charity very occasionally engages with other trusts and foundations in order to raise income but does not engage in public fundraising.

Objectives and activities for the public benefit

The objects of the charity as set out in the Charity Commission Scheme of 1980 were to help those who are sick and poor within the Ancient Parish of Islington and to support the Church of England churches in the Ancient Parish and St Silas, Pentonville. In December 2016 the Charity Commission agreed the Trustees request that the area of benefit be extended so that it is coterminous with the Islington Borough boundary.

The Trustees confirm that they have read and understood the guidance of the Charity Commission on public benefit and meet these requirements in the charity’s current activities and take account of it when planning future grant-making activities.

The charity seeks to be strategic and creative in its grant-making, using its knowledge of the area of benefit to support individuals who have health and financial needs (Health and Welfare grants for individuals), local organisations working with people in this situation (Health and Welfare grants for organisations) and Islington’s Church of England churches (Church Grants). As set out in the charity’s Scheme, in each year, half of the charity’s grant funding goes to the Health and Welfare grants programmes and the other half to the Church Grants programme available to the eligible churches, each of which is itself a registered or excepted charity.

In December 2018, in line with the Governance Code’s leadership principle, the charity adopted the following set of values and guiding principles to underpin its work:

Cloudesley seeks to be an approachable, focused, responsive, fair and accountable organisation.

It aims to be a relational rather than transactional funder, recognising that developing relationships and trust with those organisations and churches that it supports is mutually beneficial.

Cloudesley will be transparent and open about its decision-making and processes, unless it is impossible or not appropriate.

As an engaged place-based funder, Cloudesley is keen to:

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During 2020/21, the charity reviewed the updated Governance Code for larger charities. It also responded to the Institute for Voluntary Action Research’s call for more open and trusting grant making practice, signing up to the Flexible Funders initiative.

Diversity, Equity and Inclusion

Between 2018 and 2020, the Association of Charitable Foundations ran a Stronger Foundations Project which identified 40 ‘pillars of stronger foundation practice’. During 2020/21, Cloudesley set up its own Stronger Foundations Working Group to review these best practice recommendations, focusing initially on three areas for development – diversity, equity and inclusion (DEI); impact and learning; and investments. In relation to DEI, during the year, the charity has adopted and published the following statement of intent:

Cloudesley is committed to valuing diversity, promoting equity and equal access, and ensuring inclusion in all it does. We recognise that we need to do more but are strongly committed to combatting racism, discrimination and inequality and ensuring that we work in order to achieve this.

We recognise the power, resources and advantages that Cloudesley has as an independent, endowed charitable trust and strive to act responsibly and fairly in line with our stated values.

We seek to develop and retain a staff team and Board that reflect the Islington community within which we work. We will identify and take positive steps to remove any barriers to participation and recruitment of people who are currently underrepresented as staff or Trustees.

An initial audit of Trustees was undertaken in late 2020 which highlighted the need to diversify Board membership. In the first instance, this will be addressed by recruiting a number of additional co-opted committee members.

Cloudesley has also used the audit tool in ACEVO’s ‘Hidden Leaders - briefing for external audience’ to identify actions the charity can take to support disabled people in the workforce.

Funder Commitment on Climate Change

In December 2019 the charity joined with several other UK charitable foundations in signing up to a Funder Commitment on Climate Change. The commitment recognises that the growing climate emergency is a serious risk to the pursuit of all foundations’ charitable aims and commits its signatories to a number of actions.

The commitment requires the charity to report annually on progress in the areas detailed. The pandemic has meant that progress on these areas has not been as great as originally intended but these areas will be prioritised in the year ahead.

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Plans for the future

Activities planned for 2021/22 include the following:

Over the coming years, it is hoped that the charity will continue to meet the framework of the wishes set out in Richard Cloudesley’s will, by working strategically and creatively in the area of benefit.

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Structure, governance and management

Cloudesley is a registered charity and is constituted under a Charity Commission Scheme dated 2 July 1980. On 15 November 2010, Richard Cloudesley Trustee Limited became Trustee of the charity, and now all the Trustees are directors of the Trustee Company. The directors are referred to as Trustees in line with their ongoing roles.

The charity was formed as the result of a gift of land (a ‘Stoney Field’ of 14 acres) from the will of Richard Cloudesley dated 1517. In his will it was stipulated that the proceeds from the rental of the land were to be used to bestow good deeds of charity and to fund masses at St Mary’s Church for his and his wife’s souls. During the Reformation, the proportion of the bequest allocated to fund masses was taken by the Crown and, in subsequent years, the charitable trusts have been amended several times and are now contained within the 1980 Scheme referred to above.

Today, Cloudesley is a significant grant-making charity in the borough of Islington. Half of the charity’s grant-making focuses on its Health & Welfare programmes that support people with health and financial needs in the borough, while the other half supports the Church of England churches in the borough.

The charity’s Board has up to 15 Trustees as follows:

There are currently two trustee vacancies which the charity, the Archdeacon and Deanery will seek to fill as soon as possible. All Trustees have undergone an induction to understand the objects of the charity and the methods by which it meets those objects. Other training and support is offered to all Trustees, as required.

Delyth Richards replaced Margaret Elliott as Chair of the charity on 10 December 2020. Trustees would like to record their thanks to Margaret, who remains as a trustee, for her long period as Chair during which the charity’s activities and processes were further developed and modernised enabling the charity to serve its beneficiaries even more effectively. Denise Ward served as Vice-Chair of the charity throughout 2020/21 and was joined by Janet Burgess as the second Vice-Chair on 10 March 2021.

The charity’s administration is undertaken by a small staff team: a Director, two Grants Managers, a Finance Manager, and an Administrator.

During the financial year Trustees worked with the staff through the Board and three standing Committees: the Grants Committee (chair - Denise Ward), the Finance and Endowment Committee (co-chairs Delyth Richards until 8 June 2021, Adam Jenner thereafter, and Mary-Therese Barton) and Staffing Committee (chair – Margaret Elliott until 10 December 2020, Delyth Richards thereafter). The Grants Committee and the Finance and Endowment Committee each met formally four times during the year while the Board met three times. The Staffing Committee met in the spring in order to discuss pay levels for all staff for the following financial year.

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During 2020/21 the charity also operated an Individual Grants Review Group which was chaired by Denise Ward and a Stronger Foundations Working Group, chaired by Sharon White.

In the year all Trustees gave freely of their time and no remuneration was paid to Trustees. During the year the charity paid £204 (2020-£1,010) to enable trustees to attend training courses and conferences which were directly relevant to their office. During the year the charity purchased IT equipment for trustees to enable remote working and full participation in trustee duties at a cost of £798 (2020-£nil).

The charity continues to ensure that it is fully compliant with the General Data Protection Regulations which were published in May 2018.

Statement of the responsibilities of the Trustee Company

The Directors of the Trustee Company are responsible for preparing the report of the Trustee 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 Directors of the Trustee Company 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 Directors are required to:

The Directors of the Trustee Company are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors of the Trustee Company are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Auditors

Sayer Vincent LLP were re-appointed as the Charity's auditors during the year and have expressed their willingness to act in that capacity.

Approved by the Trustee ……………………………………………………………….

Delyth Richards, Chair

21 October 2021

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Independent auditor’s report to the Trustee of the Charity of Richard Cloudesley (known as Cloudesley)

Opinion

We have audited the financial statements of Cloudesley (the ‘charity’) for the year ended 30 June 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 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 Cloudesley'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 Trustee 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 Trustee’s annual report, other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information contained within the annual 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 conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with

20

the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of the Trustee

As explained more fully in the statement of the Trustee’s responsibilities set out in the Trustee’s annual report, 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 Trustee 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

21

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 are set out below.

Capability of the audit in detecting irregularities

We enquired of management and the Finance & Endowment Committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

22

Use of our report

This report is made solely to the charity's Trustee as a body, 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 and the charity's Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

9 December 2021

Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

23

Cloudesley

Statement of financial activities

For the year ended 30 June 2021

Note
Income from:
2
Cost of raising funds
Investment management costs
Property related costs
3
10
11
Reconciliation of funds:
Investments
Other income
Total income
Expenditure on:
Properties
Total expenditure
Net income/(expenditure) before net
(losses)/gains on investments and total
return transfer between funds
Charitable activities
Health and Welfare
Churches
Gains/(losses) on revaluation of properties
Net movement in funds
Total funds brought forward
Total funds carried forward
Net (losses)/gains on investments
4
Total return transfer between funds		 Unrestricted
£
-
-
200		 Endowment
£
602,153
888,158
-		 2021
Total
£
602,153
888,158
200		 Unrestricted
£
-
-
324		 2020
Endowment
Total
£
£
842,699
842,699
915,178
915,178
-
324
1,757,877
1,758,201
153,227
153,227
375,108
375,108
-
663,029
-
547,512
528,335
1,738,876
270,586
270,586
(64,805)
(64,805)
(1,210,217)
-
225,106
225,106
53,136,236
53,136,236
53,361,342
53,361,342
19,325
1,229,542
200 1,490,311 1,490,511 324
-
-
1,000,651
906,535		 162,572
594,922
-
-		 162,572
594,922
1,000,651
906,535		 -
-
663,029
547,512
1,907,186 757,494 2,664,680 1,210,541
(1,906,986)
-
-
1,906,986		 1,467,800
5,052,092
(1,906,986)
732,817		 1,467,800
5,052,092
-
(1,174,169)		 -
-
1,210,217
(1,210,217)
-
-		 5,345,723
53,361,342		 5,345,723
53,361,342		 -
-
- 58,707,065 58,707,065 -

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.

24

Cloudesley

Balance sheet

As at 30 June 2021

Note
Fixed assets:
9
10
11
Current assets:
12
Liabilities:
13
Creditors:amounts falling due after one year
14
15
16
Churches
Total endowment funds
Churches
Health and Welfare
Unapplied Total Return
Health and Welfare
Total net assets
Permanent Endowment Funds:
Trust for investment:
Creditors: amounts falling due within one year
Net current liabilities
Total assets less current liabilities
Debtors
Cash at bank and in hand
Tangible assets
Investment properties
Endowment fund investments		 £
101,903
846,447		 2021
£
3,147
29,900,650
29,460,024		 84,342
867,786		 2020
£
4,585
28,434,850
25,302,391
59,363,821
(461,726)		 53,741,826
(132,609)
948,350
1,410,076		 952,128
1,084,737
11,212,913
11,476,830		 10,792,024
11,046,034
58,902,095
195,030		 53,609,217
247,875
58,707,065 53,361,342
22,689,743
36,017,322		 21,838,058
31,523,284
17,853,151
18,164,171		 15,630,762
15,892,522
58,707,065 53,361,342

Approved by the trustees on 21 October 2021 and signed on their behalf by

Delyth Richards Chair

25

Cloudesley

Statement of cash flows

For the year ended 30 June 2021

Note
17
18
Cash flows from operating activities
Net cash provided by investing activities
Net cash used in operating activities
Purchase of investments
Cash flows from investing activities:
Investment Income
Proceeds of leasehold extension and property disposals
Purchase of tangible fixed assets
Proceeds from sale of investments
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Increase/(decrease) in cash held in investment portfolio		 £
£
(2,407,311)
1,490,311
2,000
(798)
527,103
9,824,688
(9,457,332)
2,385,972
(21,339)
867,786
846,447
2021		 £
£
(2,407,311)
1,490,311
2,000
(798)
527,103
9,824,688
(9,457,332)
2,385,972
(21,339)
867,786
846,447
2021		 £
£
(1,917,512)
1,757,877
49,086
(4,257)
(296,343)
19,592,184
(18,818,660)
2,279,887
362,375
505,411
867,786
2020		 £
£
(1,917,512)
1,757,877
49,086
(4,257)
(296,343)
19,592,184
(18,818,660)
2,279,887
362,375
505,411
867,786
2020
(21,339)
867,786		 362,375
505,411
846,447 867,786

26

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

Cloudesley is a registered charity. The registered office is Office 1.1, Resource for London, 356 Holloway Road, London, N7 6PA.

b) Basis of preparation

The financial statements have been prepared 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)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and 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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Interest and rental income receivable

Interest on funds held on deposit is included on an accruals basis. Rental income is included when receivable.

f) Fund accounting

Endowment funds are to be used for the specific purposes laid down by the donor.

Unrestricted funds are other incoming resources received or generated for the charitable purposes.

Section 4 of the Trusts (Capital and Income) Act 2013 amended the Charities Act 2011 to give permanently endowed charities in England and Wales the power to adopt a total return approach to investment. Trustees resolved to adopt total return accounting as from 1 July 2019. The endowment was valued at £21,600,453 as at 31 December 1998 being the earliest date at which a valuation could be obtained. Under total return accounting, the charity is permitted to allocate from the total return element of permanent endowment to unrestricted funds such sums as it thinks appropriate in furtherance of its work . In making these transfers the charity will seek both to be even-handed as between current and future beneficiaries and to maintain the balance of the unapplied total return at an appropriate level considering the volatility of investment markets.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once 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 measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

27

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

h) Allocation of support and governance costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Property 15.0%
Investment management 5.0%
Health and welfare 40.0%
Churches 40.0%

i) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

j) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

3 years

k) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value is stated in the notes to the accounts.

l) Listed investments

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. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities.

Where the charity has identified specific amounts to be drawn down within the next 12 months, these are classified as currents assets on the balance sheet.

m) Debtors

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

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

28

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

Accounting policies (continued)

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Pensions

The pension cost charge represents contributions payable under the terms of a defined contribution pension scheme established by the charity. The charity has no liability under the scheme other than for the payment of those contributions.

q) Grants payable

Grants payable are made to third parties in accordance with the charity's governing scheme. These grants are charged to the statement of financial activities in the year in which the offer is conveyed to the recipient. Provision for grants is made once the intention to make a grant has been communicated to the receipient although there may be uncertainity about either the timing of the grant or the amount payable. Where a grant is payable in instalments any instalments falling due more than twelve months after the balance sheet date are classified as a creditor due after more than one year. Many of the grants awarded are in respect of building projects which can take considerable periods of time to complete. Since these grants are not subject to instalments they are classified as current liabilities; however, experience has shown that in many cases such grants will not be paid within twelve months of the balance sheet date.

29

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

Income
Other income
Investment income from main portfolio
Investment income from medical funds
Total investment income
Property income		 Churches
£
292,673
-		 Health and
Welfare
£
292,673
16,807		 2021
Total
£
585,346
16,807		 Churches
£
409,589
-		 Health and
2020
Welfare
Total
£
£
409,589
819,178
23,521
23,521
433,110
842,699
457,589
915,178
162
324
890,861
1,758,201
292,673
444,079
100		 309,480
444,079
100		 602,153
888,158
200		 409,589
457,589
162
736,852 753,659 1,490,511 867,340

30

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

3a Analysis of expenditure (current year)

Staff costs (Note 5)
Investment property costs
Grants to churches (Note 21)
Health and Welfare grants (Note 22)
Other staff costs
Legal and professional fees
Office costs
Investment management fees
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of raisingfunds Cost of raisingfunds Charitable activities Charitable activities Support
costs
£
54,781
-
-
-
2,992
51,421
-		 Governance
costs
£
15,359
-
-
-
-
8,880
-
-		 2021
Total
2020
Total
£
£
233,942
203,742
561,284
341,297
789,817
444,789
867,862
536,853
2,992
5,986
8,880
8,760
51,421
58,107
148,482
139,342
2,664,680
1,738,876
-
-
-
-
2,664,680
1,738,876
Investment
management
£
7,418
-
-
-
-
-
-
148,482		 Property
£
13,621
561,284
-
-
-
-
-
-		 Health &
Welfare
£
79,417
-
-
867,862
-
-
-
-		 Churches
£
63,346
-
789,817
-
-
-
-
-
155,900
5,460
1,212		 574,905
16,380
3,637		 947,279
43,677
9,695		 853,163
43,677
9,695		 109,194
(109,194)
-		 24,239
-
(24,239)
162,572 594,922 1,000,651 906,535 - -
153,227 375,108 663,029 547,512 - -

31

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

Staff costs (Note 5)
Investment property costs
Grants to churches (Note 21)
Health and Welfare grants (Note 22)
Other staff costs
Legal and professional fees
Anniversary
Office costs
Investment management fees
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Cost of raising funds Cost of raising funds Charitable activities Charitable activities Charitable activities Support
costs
£
51,920
-
-
-
5,986
-
-
57,005
-		 Governance
costs
£
14,358
-
-
-
-
8,760
-
-
-		 2020
Total
£
203,742
341,297
444,789
536,853
5,986
8,760
-
58,107
139,342		 2019
Total
£
172,270
270,305
706,904
504,859
2,597
8,640
2,365
68,864
132,624
Investment
management
£
6,983
-
-
-
-
-
-
-
139,342		 Property
£
13,106
341,297
-
-
-
-
-
-
-		 Health &
Welfare
£
70,719
-
-
536,853
-
-
-
246
-		 Churches
£
46,656
-
444,789
-
-
-
-
856
-		 Anniversary
£
-
-
-
-
-
-
-
-
-
146,325
5,746
1,156		 354,403
17,237
3,468		 607,818
45,964
9,247		 492,301
45,964
9,247		 -
-
-		 114,911
(114,911)
-		 23,118
-
(23,118)		 1,738,876
-
-		 1,869,428
-
-
153,227 375,108 663,029 547,512 - - - 1,738,876 1,869,428
144,999 315,005 599,786 806,891 2,747 - -

32

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

This is stated after charging / crediting:

This is stated after charging / crediting:
2021 2020
£ £
Depreciation 2,236 1,896
Operating lease rentals:
Property 19,906 19,979
Auditors' remuneration (excluding VAT):
Audit 7,400 7,300
Trustee training - 500

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
£
200,256
17,665
16,021		 2020
£
174,981
14,762
13,999
233,942 203,742

During the year ended 30 June 2021 one member of staff was paid a salary of between £70,000 and £80,000. In the year ended 30 June 2020 one member of staff was paid a salary between £60,000 and £70,000.

The total employee benefits including pension contributions and employer's national insurance of the key management personnel were £158,096 (2020: £142,296). Three members of staff employed during 2020/21 are considered to be key management personnel (2020: 3).

During the year the charity paid £204 (2020: £1,010) to enable trustees to attend training courses and conferences which were directly relevant to their office. During the year the charity purchased IT equipment for trustees to enable remote working and full participation in trustee duties at a cost of £798 (2020:£nil). The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

6 Staff numbers

The average number of employees is detailed below in terms of both head-count and full-time equivalent (FTE).

Support and administration 2021
FTE
4.3		 2020
FTE
3.9		 2021
No.
4.9		 2020
No.
4.5

33

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

7 Related party transactions

It is a condition of appointment of 14 of the 15 directors of the Trustee that they have knowledge of Islington and its voluntary sector.

It is therefore inevitable that directors may be, and are, officeholders, service users, worshippers or beneficiaries of and at the entities the Charity funds. The potential for conflict in practice is addressed by declarations of interest and reticence.

Given the procedures and the breadth of support the Charity offers to all qualifying entities in its area of benefit, the Trustee does not consider that there is a single recipient body of whom it could be said that the awarded grant could have been influenced by interests other than those of the Charity.

Accordingly the Trustee takes the view that no awarded grants (or other transactions) fall within the definition of related party transactions.

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
At the end of the year
At the start of the year
Charge for the year
Depreciation
At the end of the year
At the end of the year
At the start of the year
Net book value
At the start of the year
Additions in year
Cost		 Computer
Equipment
£
11,533
798
12,331
6,948
2,236
9,184
3,147
4,585

All of the above assets are used for charitable purposes.

10 Investment properties

Investment properties
Fair value at the end of the year
Proceeds of leasehold extension and disposals in year
Gain/(loss) on revaluation during the year
Fair value at the start of the year		 Freehold Properties 2021
£
28,434,850
(2,000)
1,467,800		 2020
£
28,213,350
(49,086)
270,586
Interest in
long
leaseholds
£
1,114,850
(2,000)
(187,200)		 Rental and
commercial
properties
£
27,320,000
-
1,655,000
925,650 28,975,000 29,900,650 28,434,850

Desk top valuation of the properties were conducted by independent valuers, Daniel Watney LLP as at 30 June 2021 and 30 June 2020. The most recent full Red Book valuation was conducted by Daniel Watney LLP as at 30 June 2018.

34

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

11 Endowment fund investments

11
Endowment fund investments
12
13
14
Church grants
Additions at cost
Creditors: amounts falling due after one year
Creditors: amounts falling due within one year
Cash
Investments comprise:
UK Common investment funds
Taxation and social security
Accruals and other creditors
Health and welfare grants
Trade creditors
Debtors
Rent receivable
Other debtors
Health and welfare grants
Prepayments
Fair value at the end of the year
Historic cost at the end of the year
Disposal proceeds
Net (loss)/ gain on investments
Fair value at the start of the year
Cash held by investment broker pending reinvestment		 Combined
Range
£
23,789,200
9,193,359
(9,550,461)
4,911,078		 Exclusive
Medical
£
514,627
263,973
(274,227)
141,014		 2021
£
24,303,827
9,457,332
(9,824,688)
5,052,092		 2020
£
25,142,156
18,818,660
(19,592,184)
(64,805)
28,343,176
458,302		 645,387
13,159		 28,988,563
471,461		 24,303,827
998,564
28,801,477 658,547 29,460,024 25,302,391
23,458,226 795,087 24,253,313 23,291,173
2021
£
28,988,563
471,461		 2020
£
24,303,827
998,564
29,460,024 25,302,391
2021
£
55,630
29,201
17,072		 2020
£
52,323
11,585
20,434
101,903 84,342
2021
£
741,755
540,350
6,844
3,732
117,395		 2020
£
568,851
389,435
9,937
4,567
111,947
1,410,076 1,084,737
2021
£
195,030		 2020
£
247,875

Net assets at both 30 June 2021 and 30 June 2020 consisted entirely of endowment funds.

35

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

16a Year ended 30 June 2021 movements in funds

General funds
Churches
Health and welfare
Total funds
Unapplied total return
Churches
Health and welfare
Total endowmwent funds
Total unrestricted funds
Trust for investment
Churches
Health and welfare		 At the start of the year
£
10,792,024
11,046,034		 Income &
gains
£
-
-		 Expenditure
& losses
£
-
-		 Transfers -
see note below
£
420,889
430,796		 At the end of
the year
£
11,212,913
11,476,830
21,838,058 - - 851,685 22,689,743
15,630,762
15,892,522		 3,926,191
4,084,012		 (376,478)
(381,016)		 (1,327,324)
(1,431,347)		 17,853,151
18,164,171
31,523,284 8,010,203 (757,494) (2,758,671) 36,017,322
53,361,342 8,010,203 (757,494) (1,906,986) 58,707,065
-
-		 100
100		 (906,535)
(1,000,651)		 906,435
1,000,551		 -
-
- 200 (1,907,186) 1,906,986 -
53,361,342 8,010,403 (2,664,680) - 58,707,065

In addition to the total return transfer between funds detailed in the statement of financial affairs a transfer from the unapplied total return funds to the trust for investment has been made in order to maintain the real value of the later.

16b Year ended 30 June 2020 movements in funds

At the start of the year
£
10,674,603
10,925,850		 Income &
gains
£
-
-		 Expenditure
& losses
£
-
-		 Transfers -
see note below
£
117,421
120,184		 At the end of
the year
£
10,792,024
11,046,034
21,600,453 - - 237,605 21,838,058
15,586,589
15,949,194		 1,002,471
1,025,992		 (293,527)
(299,613)		 (664,771)
(783,051)		 15,630,762
15,892,522
31,535,783 2,028,463 (593,140) (1,447,822) 31,523,284
53,136,236 2,028,463 (593,140) (1,210,217) 53,361,342
-
-		 162
162		 (663,029)
(547,512)		 662,867
547,350		 -
-
- 324 (1,210,541) 1,210,217 -
2,028,787 (1,803,681)

In addition to the total return transfer between funds detailed in the statement of financial affairs a transfer from the unapplied total return funds to the trust for investment has been made in order to maintain the real value of the later.

36

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

16 Movements in funds (continued)

Trustees resolved to adopt total return accounting as from 1 July 2019. The endowment was valued at £21,600,453 as at 31 December 1998 this being the earliest date at which a reliable valuation could be obtained. Following the adoption of total return accounting it is no longer necessary to designate reserves for specific purposes and the amounts designated at 30 June 2019 have been credited to the unapplied total return funds. The grants reserves at that date have also been credited to the unapplied total return funds.

Allocation of income between the two unrestricted funds is set out in Note 2 to the accounts. Expenditure on charitable activities is allocated directly to the activity involved. Property related costs and gains/(losses) on revaluation of properties are allocated equally between the two charitable activities. The allocation of investment managment costs and net gains/(losses) on investments takes into account the exclusive medical funds referred to below.

Exclusive medical funds - the charity has assumed over the years funds from the following sources:

Richard Cloudesley Charity Convalescent Homes Fund Islington Relief in Need Islington Relief in Sickness Finsbury Dispensary Relief in Sickness Dame Sarah Temple Foundation Brand's Gift Charity

All of these funds have been aggregated and are held and applicable in the Health and Welfare part of the charity's funds.

The exclusive medical funds are the subject of a permanent appropriation of the charity's investment (but not property) portfolio. The current rate of appropriation is 2.7912% (2020: 2.7912%) but this will vary depending on any future capital contributions to or withdrawals from the investment portfolio. This rate of appropriation is also applied to the allocation of investment management charges and gains/(losses) on investments.

17 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Losses/(gains) on investments
(Gains)/losses on property assets
Depreciation
Investment income
(Increase)/Decrease in debtors
Increase/(decrease) in creditors
Net cash used in operating activities		 2021
£
5,345,723
(5,052,092)
(1,467,800)
2,236
(1,490,311)
(17,561)
272,494		 2020
£
225,106
64,805
(270,586)
1,886
(1,757,877)
9,962
(190,808)
(2,407,311) (1,917,512)

18 Analysis of cash and cash equivalents

Analysis of cash and cash equivalents

Cash at bank and in hand
Total cash and cash equivalents		 At 1 July
2020
£
867,786		 Cash flows
£
(21,339)		 £
846,447
At 30 June
2021
867,786 (21,339) 846,447

37

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

19 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Property
2021 2020
£ £
Less than 1 year 5,235 5,235

20 Capital commitments

At 30 June 2021 the charity was not contractually commited to any expenditure (2020 - £119,607) on maintenance works to its properties in addition to minor routine items.

21 Grants to Churches

Grants to Churches
The Church on the Corner
Our Most Holy Redeemer, Clerkenwell
St Mark Clerkenwell
St Clement, King Square
Church grants awarded in the year
St Mary's Islington
St Andrew's, Thornhill Square
St Andrew, Whitehall Park
St Luke, West Holloway
St Mark's, Tollington
St Augustine, Highbury New Park
St James, Prebend Street
St John, Upper Holloway
St Mary, Hornsey Rise
Total church grants in the year
Kings Cross Church
Christ Church, Highbury
St Jude & St Paul, Mildmay Grove
Grants written back
Total grants awarded in the year
St James, Clerkenwell
St Thomas, Finsbury Park
St Silas, Pentonville
St Stephen, Canonbury
St Saviour's, Hanley Road
Emmanuel Church, Hornsey Road
Hope Church Islington - St David
Hope Church Islington - St Mary Magdalene		 2021
£
70,000
34,333
13,322
47,308
60,836
5,000
59,806
60,000
7,500
85,000
13,256
25,000
26,400
70,000
28,000
7,500
1,400
60,000
5,000
44,800
54,600
2,500
5,000
35,738		 2020
£
7,000
50,000
-
24,513
85,080
-
23,122
45,700
8,780
61,950
5,000
22,850
54,390
19,500
31,200
-
5,000
10,000
5,000
42,900
165
-
-
4,400
822,299
(32,482)		 506,550
(61,761)
789,817 444,789

38

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

22 Grants for Health and Welfare Needs

Grants for Health and Welfare Needs
Principal Grants
Islington Centre for Refugees and Migrants
St Luke's Parochial Trust
Stuart Low Trust
The Margins Project
Total principal grants awarded in the year
Holloway Neighbourhood Group
Development and Support Grants
Help on Your Doorstep
Islington Refugee and Migrant Forum
Manor Gardens Welfare Trust
Total development and support grants awarded in the year
Healthy Generations
Small grants
Help on Your Doorstep
Centre 404
Strategic grants
Total small grants awarded in the year
Islington Law Centre
Manor Gardens Welfare Trust
The Manna
The Maya Centre
MER-IT Digital
One True Voice
ALAG/Autism Hub Islington
Prospex
Total grants to organisations awarded in the year
Mencap Islington
Elfrida Society
Single Homeless Project
Islington People's Rights
Home Start Islington
Islington Mind
Healthwatch Islington
Life Chances in partnership with AFLAH
Total strategic grants awarded in the year
Health and Welfare grants made to organisations
Help on Your Doorstep
Islington Giving		 2021
£
-
100,000
-		 2020
£
107,000
50,000
168,000
100,000 325,000
10,000
-
10,000
10,000
10,000
-
9,500
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
-
-		 -
10,000
-
-
-
10,000
-
-
-
-
-
-
-
-
-
10,000
5,060
139,500 35,060
90,000
90,000
90,000
90,000
87,405		 -
-
-
-
-
447,405 -
6,500
22,000
47,000		 -
75,500
762,405 360,060

39

Cloudesley

Notes to the financial statements

For the year ended 30 June 2021

22
Grants written back
Total grants via Catalyst Programme in the year
Health and Welfare grants made to individuals
Grants for Health and Welfare Needs (cont'd)
Help on Your Doorstep
Islington Centre for Refugees and Migrants
Islington People's Rights
Grants to individuals via Cloudesley Partners
St Mungo's Broadway
Total grants via Cloudesley Partners awarded in the year
Grants written back
Consonant
Islington Law Centre
Community Language Support Services
St Luke's Parochial Trust
The Margins Project
Islington Mind
Manor Gardens Welfare Trust
Age UK Islington
Age UK Islington
Manor Gardens Welfare Trust
London Borough of Islington
Humankind Charity
Total Health and Welfare grants awarded to individuals in the year
Total grants written back
Total Health and Welfare grants to Individuals in the year
Total Health and Welfare grants in the year
Total grants via Cloudesley Partners in the year
Grants to individuals via Catalyst Programme
Help on Your Doorstep
Islington Centre for Refugees and Migrants
Peter Bedford Housing Association
Solace Women's Aid
Peter Bedford Housing Association
Solace Women's Aid
St Mungo's Broadway
The Manna
Total grants via Catalyst Programme awarded in the year
Centre 404		 2021
£
5,000
-
13,000
3,000
15,000
20,000
12,000
19,000
12,000
-
10,000
6,000
8,000
5,000
8,000
5,000
2,000		 2020
£
-
6,000
13,000
3,000
12,000
18,000
12,000
12,000
12,000
5,000
13,000
6,000
8,000
10,000
8,000
5,000
2,000
143,000
(28,264)		 145,000
(28,535)
114,736 116,465
5,000
-
-
-
-
-
-
-		 -
10,000
10,000
10,000
10,000
10,000
10,000
10,000
5,000 70,000
(14,279) (9,672)
(9,279) 60,328
148,000
(42,543)		 215,000
(38,207)
105,457 176,793
867,862 536,853

23 Ultimate controlling party

The charity's ultimate parent undertaking and controlling party is Richard Cloudesley Trustee Limited a company limited by guarantee (number: 07425897). Consolidated accounts are not prepared as the parent is dormant. Dormant accounts are filed with Companies House. There are no financial transactions between Cloudesley and Richard Cloudesley Trustee Limited in the year.

40