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2021-04-30-accounts

Tower Hill Trust

Annual Report and Financial Statements

30 April 2021

Charity Registration Number: 206225

Contents

Reports

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 13
Financial statements
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Principal accounting policies 20
Notes to the financial statements 23

Tower Hill Trust

Reference and administrative information

Trustees Susan M. Wood (Chairman)
Leslie A. Chapman
Kenneth E. Clunie
Col. Richard E. Harrold
Jonathan D. Solomon
Davina J. Walter
Edward W. Walter
Trust deed 7th February 1938 (subsequently varied by Schemes
approved by the Charity Commissioners on
23rd October 1973 and 23rd April 1987)
Registered address Marshall House
66 Newcomen Street
London
SE1 1YT
Charity registration number 206225
Bankers NatWest Bank (until 20 October 2020)
National Westminster Bank
Liverpool Street Station Branch
216 Bishopsgate
London
EC2M 4QB
HSBC UK (from 20 October 2020)
28 Borough High Street
London
SE1 1YB
Solicitors Wedlake Bell LLP
71 Queen Victoria Street
London
EC4V 4AY
Investment managers Newton Investment Management Limited
Mellon Financial Centre
160 Queen Victoria Street
London
EC4V 4LA
Auditors Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal officers Cherry Bushell (Secretary and Treasurer)
Elaine Crush (Grant Officer)

Tower Hill Trust 1

Trustees’ report Year to 30 April 2021

Statement of Trustees’ Responsibilities

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Charity and of its financial activities for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with relevant legislation. They are also responsible for safeguarding the assets of the Charity, and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. The Trustees confirm that the accounting policies adopted are in accordance with the Charities Act 2011, and 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). The financial statements have been prepared on the going concern basis.

Structure, Governance and Management

The Trust was established as the Tower Hill Improvement Trust in 1938. The original Trust Deed of the Tower Hill Improvement Trust, dated 7[th] February 1938, was subsequently varied by Schemes approved by the Charity Commissioners on 23[rd] October 1973 and 23[rd] April 1987. On the 8[th] February 2005, the Charity Commissioners made an Order giving the Trustees general authority to amend the trusts of the charity, subject to certain limitations, including the need on some matters to obtain the prior written approval of the Charity Commissioners. This power has been used four times. On the 16[th] March 2005, the maximum number of Trustees was increased from five to eight. On the 21[st] June 2006, with the approval of the Charity Commission, the name of the Trust was changed from Tower Hill Improvement Trust to Tower Hill Trust. Again, with the approval of the Charity Commission, on the 14[th] March 2007, the Trust’s area of benefit was enlarged, and now comprises the Tower Hill area and the whole of the London Borough of Tower Hamlets. Finally, on 17[th] September 2008, the period for which the Chairman is elected by the Trustees was increased from one to three years.

The Charity is governed by a Board of not more than eight Trustees; seven Trustees served during the year.

Tower Hill Trust 2

Trustees’ report Year to 30 April 2021

Structure, Governance and Management (continued)

The Trust’s office is located at Marshall House, 66 Newcomen Street London SE1 1YT. The office is provided by the Wakefield & Tetley Trust and staffed by a part-time Secretary and Treasurer and a part-time Grant Officer (at present Ms Cherry Bushell and Ms Elaine Crush respectively). Both members of staff are employed and paid by the Wakefield & Tetley Trust, and a service charge is paid to this Trust for the provision of staff and services; in 2020 a Memorandum of Understanding was agreed between the two Trusts for the future arrangement of this service. The Secretary and Treasurer is responsible for administration and book-keeping. The Grant Officer is charged with keeping up-to-date with local charitable activity and funding needs, the development and delivery of funding programmes, monitoring the expenditure of grants and providing advice and support to applicants and funded organisations. Staff are responsible for all day-to-day matters, and for making recommendations to the Trustees, but all significant decisions are taken by the Board of Trustees.

Objectives and Activities for the Public Benefit

The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives, and in planning future activities. The Trust’s objectives are to use Trust resources for the promotion of charitable purposes for the general benefit of the inhabitants in the Trust’s area of operation in any or all the following ways:

These objects are listed in the order of priority determined by the Trustees. The Trust seeks to do these things not by giving money to individuals or by carrying out programmes of its own, but by making grants to registered charities and other bodies for activities and projects which help to advance the objects. In making grants, the Trust always looks at the question of who will be the ultimate beneficiaries, and what will be the benefit to them. The Trustees insist that all activities or projects must be open to anyone who qualifies as a potential beneficiary, and that people in poverty are not excluded.

The chief restriction on the Trust’s grant-making is geographical. The guidance on public benefit published by the Charity Commission recognises that: “it is generally reasonable for a charity’s aims to be intended to benefit people living in a particular geographical area, such as a village, town, city, county or country”. The Trust’s area of benefit comprises the area of Great Tower Hill, Tower Hill and the London Borough of Tower Hamlets. Trustees particularly welcome proposals for capital costs, and proposals that have a link with the Trust’s original area of benefit, i.e. the area around Tower Hill, and the former St Katharine’s ward in the borough of Tower Hamlets.

Tower Hill Trust 3

Trustees’ report Year to 30 April 2021

Objectives and Activities for the Public Benefit (continued)

The public benefit of funding by the Trust is measured against the achievements of the organisations and projects that are funded. Grant recipients are required to provide regular or one-off progress reports, depending on the nature of the project and the size of grant awarded.

The monitoring process aims to be ‘light touch’, and there are no formal monitoring or evaluation forms to complete, since organisations and projects can struggle under the burden of monitoring requirements. Grant recipients can devise their own reports and may submit information that has been prepared for another funder if this is appropriate (many of the Trust’s grants are contributions to projects also supported by other donors). Recipients are asked to reflect on the progress that they have made in relation to the aims, objectives and outcomes which they identified at the beginning of a project, and any learning that has taken place.

Achievements and performance

The Trust’s income is derived partly from an investment portfolio managed by Newton Investment Management Limited, and partly from the head rent of the Tower Hill Wine Vaults, of which the Trust owns the freehold.

The Trust aims to maintain a high level of grant-giving, while ensuring that funds are available when needed for high priority initiatives, that reserves are maintained to generate income for the future, and that adequate funds are available for the proper administration of the charity. During 2020-21, the Trust awarded £159,656 under its Main Grant Programme (this includes five Covid-19 emergency grants), and a further £14,872 to a Biodiversity Grant Programme. A total of £203,538 was paid out during the year to grant recipients. A considerable proportion of the amount paid out in grants during the year reflected the continuation of grants awarded in previous years. Similarly, a considerable proportion of grants awarded in 2020-21 will be paid out in subsequent years. The Trustees have decided that grants payable should be charged in the year when they are awarded, irrespective of when they are paid, as Trustees regard them as financial obligations. For this reason, the amount shown in the Statement of Financial Activities under charitable activities does not represent the grants paid in 2020-21, but the grants awarded during the year. Details of both grants paid, and grants awarded during the year are contained in note 11.

The Grant Officer attended Tower Hamlets Funder Fair in February 2021 to promote the work of the Trust and meet with potential grants applicants. The Trust also joined Tower Hamlets Funder Forum, a new initiative to bring key Tower Hamlets funders together to reduce duplication of work, consider possible joint initiatives and gather intelligence regarding issues in the borough.

Tower Hill Trust 4

Trustees’ report Year to 30 April 2021

Main Grant Programme

In 2020-21, a total of 42 applications were received, of these 33 were awarded grants (a high success rate of 78%). Of the main grants awarded, 48% were to recipients whom the Trust had not previously assisted.

Most funded projects met two or more of the Trust’s priorities. The main priority of the Trust is the development and ‘provision of gardens and open spaces’ across the London Borough of Tower Hamlets; 38% of the total funds awarded in the year were targeted at this priority (this rises to 46% when the Biodiversity grant programme is included). Of the remaining grants, 34% was awarded to support ‘facilities for recreation and leisure’, 21% focused on the provision and support of ‘educational facilities’ and of all grants made, 60% also benefited people on low incomes or disadvantaged due to homelessness, ill health and/or disability. £63,088 (36% of the Main Grant budget) was awarded in response to the Covid-19 pandemic emergency, to support ‘immediate response activities’ for vulnerable families needing food and other essentials, or to help charities make adaptions so that they could continue to operate.

Main Grants that were awarded during the year included:

East London Cares £6,925 to support the ‘Venturing Out’ project over six months, bringing together 72 older and younger neighbours, through six outdoor Social Clubs.

First Love Foundation £7,000 towards a triage advice service for food bank clients in Tower Hamlets.

Newark Youth £4,386 to support the Connect with Nature Project for 36 young people aged 10-19 years. The project will comprise of six sessions with staff at Tower Hamlets Cemetery Park.

Real DPO Ltd £8,000 towards equipment and training to help the staff, board and volunteers to work safely from home and engage with disabled clients more effectively.

Seeds for Growth £5,000 to support the ‘Greening Communities’ project across six estates in Tower Hamlets, supporting tenants and residents to grow seeds at home, to maintain and improve their existing community garden beds and safely dispose of invasive plants.

Shadwell Community Project £4,850 to pilot a new range of activities at the adventure playground, providing 60 hours of well-being sessions over five months.

Shadwell Basin Sailing Club £4,000 match funding to enable the purchase of a second-hand safety boat to expand the capacity of the club and benefit more people .

Weavers Adventure Playground £4,700 to enable the charity to continue to provide emergency pandemic support to members and expand activities at the playground. The grant was made in partnership with East End Community Foundation who funded 50% of the project costs.

Tower Hill Trust 5

Trustees’ report Year to 30 April 2021

The Covid-19 pandemic and impact on grant making

The Trust renewed its commitment to the London Funders’ joint statement in November 2020 to pledge support to the sector and committing to be responsive and flexible to the needs of grant holding charities. At the outset of the pandemic, the Trust recognised that this was an exceptional period of crisis for our grantees and their beneficiaries as the demand for support and services rose dramatically; it was a time when charities had to postpone or cancel projects, close face to face services, furlough staff and volunteers.

Trustees agreed that it would be appropriate to re-direct funding to charities clearly dealing with the fallout from the pandemic, and fulfilling extreme needs during this extraordinary period, and that the Trust’s Objects could be interpreted in their broadest sense. Any crisis grants would be in line with the Trust objective: “The relief of the aged, handicapped and poor”. Staff continued to consult with staff at the East End Community Foundation (EECF) who worked with Tower Hamlets Council and other key strategic bodies to support the immediate needs of communities, from food and essentials, to equipment and additional short-term staff costs. A grant of £9,000 was agreed to match fund money provided by the National Emergencies Trust, managed by EECF, to the First Love Foundation and the Royal Foundation of St Katharine.

Completed projects

Main Grant projects that were completed during the year included:

Friends of Tower Hamlets Cemetery Park £8,000 was awarded to help the charity to adapt and restart nature-based activities that improved vulnerable community members' mental and physical health and reduce feelings of isolation during and after the pandemic. The charity was able to safely re-establish activities as well as look after the park during a period of increased use during 2020. Activities such as therapeutic gardening sessions, walks, online talks, and Forest School sessions were organised for residents. With this grant the Friends were able to:

● Improve safety and reduce the risk of damage, through increased volunteer and staff presence and cleaning onsite

● Clear planting areas, supporting biodiversity and reducing overgrowth. This was vital work as the charity did not have their regular 2,000 corporate volunteer days to support site maintenance.

● Put in place relevant PPE measures so they could open events to the public again. This included installing an outside wash basin, purchasing new gardening and Forest School equipment (to reduce sharing), instigating a more regular cleaning schedule, as well buying cleaning and sanitising products. They were also able to pay for extra staff and Forest School leader time to be able to implement the Covid-19 risk measures.

From August to December they completed nearly 60 activities with an estimated 871 participants booked. Overwhelming demand for nature-based activities meant that all activities were fully booked with waiting lists. 162 participant places were booked across 26 in-person therapeutic gardening sessions. Some people attended regularly, some having been recently unemployed or furloughed because of the pandemic. Many participants reported the positive impact the sessions had on their mental wellbeing.

Tower Hill Trust 6

Trustees’ report Year to 30 April 2021

Completed projects (continued)

Friends of Tower Hamlets Cemetery Park (continued)

The funding also enabled the Friends to give seven online talks for those shielding, with 280 participant places booked. A further five in-person events were specifically aimed at the isolated, elderly, and victims of domestic abuse, attended by 52 people. Eight Forest School sessions were run for children, with 120 participants. They also ran guided heritage walks which helped generate additional income from ticket sales. Staff worked hard to adapt activities to meet more people’s needs (e.g. more volunteering sessions at new locations to accommodate more people’s schedules and faiths, especially those on part-time furlough).

Shadwell Basin Outdoor Activity Centre: £5,000 was awarded to support the delivery of a four-week outdoor and adventure summer project for 150 young people. The activity centre provided weekly online sessions for youth provision during lockdown and it was clear that the mental health of young people was under pressure especially those with disabilities, specifically Autism. It was extremely important to get young people back out, doing activities and socialising safely. The summer project also provided important respite for parents with some young people using this as their summer vacation. The activities were; kayaking, canoeing sailing, bell boating, raft building, climbing, high ropes, rowing, orienteering, mountain biking and problem solving. Complementing these skills were the concepts of communication, team work and leadership as well as the Shadwell values of; achievement, courage, respect, confidence, humility, friendship, equality and motivation. The activities enabled young people to benefit from fun and healthy activities whilst decreasing isolation and were used for learning and accreditation and as a catalyst to bring together young people from different backgrounds. Due to the pandemic restrictions only 79 individual young people between 9-18 years took part over the period, however they gave very positive feedback with 94% saying that they felt healthier after the activities and 92% stating the programme was good for making friends. Of the participants, 14 achieved National Governing Body Awards.

Stepney City Farm : £2,538 was awarded in June 2020 for the installation of a contactless donation system to transform the Farm’s capacity to collect funds and boost the long-term financial resilience of the charity in light of the pandemic restrictions. An online portal allows them to monitor the donation amounts and machines, and on an average week day £30-£40 was raised with as much as £70-£80 per day on weekends. Prior to lockdown, they would collect around £50 a week for onsite cash only donations, usually in small change which would need to be laboriously collected, counted, and banked. The contactless machines have significantly increased the donation totals and the efficiency of collection. Without a grant, the capital outlay for the machines and the risk of a long period before any return on investment was significant and the Farm was pleased to confirm that the results more than justified the outlay.

St. Peters Community Wellbeing Projects £2,000 was awarded to provide resources for the Community Gardening Club. The club engaged isolated and homebound elderly women, particularly those from the Bangladeshi community. Gardening activities aimed to help reduce participants’ loneliness and improve their physical health and mental wellbeing, and support further social integration of the vulnerable and disadvantaged women, as well as provide a rewarding volunteering opportunity for the women befrienders. Users made new friends, helping them become independent and socially active. The club also used gardening as an easy full-body exercise and mental therapy.

Tower Hill Trust 7

Trustees’ report Year to 30 April 2021

Completed projects (continued)

St. Peters Community Wellbeing Projects (continued)

The pandemic made a significant difference to the club during 2020; only a few participants were permitted to take part in group activities and sessions were restricted to a maximum of 5 people, so sessions were increased from 2 days to 3 days per week to minimise the risk. For more vulnerable housebound users with access to gardens or balconies, St Peters provided potted vegetable plants from July-November, and this was highly appreciated.

Specific achievements

Women’s Environmental Network (WEN)

£11,500 was awarded to support the Tower Hamlets Food Growing Network, a thriving network of local community gardens, city farms, community organisations and individual food activists. A monthly ‘Tower Hamlets Food Growers’ newsletter reached 1,500 grassroots growers in the year, and residents were able to access opportunities to learn about, share and enjoy healthy and sustainable food. Pre-Covid-19, WEN ran four free seasonal gatherings a year, attracting around 100 grassroots growers. Events comprised talks, workshops, and skill shares focused on growing, cooking and eating healthy sustainable food. However, the work had to be adapted during 2020 because of the Covid-19 pandemic. Instead, they began ‘Keep Growing’, a public-facing campaign encouraging people to grow their own food. Over 700 people in Tower Hamlets signed up to receive growing packs (seeds and coir pellets) and were supported at all stages of the growing process through videos, blogs and four Growers’ Question Time events. In 2021, the campaign supported 20-30 champions to grow 50 seedlings on their windowsill or balcony, to be shared with the wider community at events later in the year.

Biodiversity Grant Programme

The Trust established this as a new small grant programme in 2016 to encourage matched funding from Tower Hamlets Council, working in partnership with the Council’s Biodiversity Officer. The Biodiversity Programme awards grants from £100 to £2,000 to fund biodiversity enhancements by schools and community groups in school grounds, around housing estates or in community gardens. Projects must directly contribute to objectives and targets in the Tower Hamlets Local Biodiversity Action Plan. Opportunities during the year to promote the programme were limited and it was difficult for schools and community groups to prioritise these types of initiatives because of the pandemic, so fewer awards were made compared to previous years.

Tower Hill Trust 8

Trustees’ report Year to 30 April 2021

Biodiversity Grant Programme (continued)

Seven Biodiversity grants were awarded totaling £14,872, and were as follows:

A large Biodiversity grant of £8,000 was awarded to Wilder Communities for the greening of Malmesbury estate across seven sites, providing a green urban network, connecting the spaces and improving biodiversity. Because of the pandemic, this work has been put on hold and will be completed in Autumn 2021.

Some biodiversity projects supported in the previous financial year are also pending completion as there were delays due to the pandemic shut downs. For example, the Trees for Cities tree-planting project on Bede aimed to mobilise over 120 volunteers to transform spaces on the estate for the local community whilst enhancing green infrastructure in the area, creating and enhancing 2000 square metres of priority habitat. However, it was not practical to work with volunteers in the year and this project was also postponed.

Completed Biodiversity Projects Stepney City Farm

£2,538 was awarded to support a new wildflower meadow at the Farm. A six-week wildflower course was successfully delivered by the Friends of Tower Hamlets Cemetery Park, during which participants worked to install the new wildflower meadow on land recently returned to the Farm by Crossrail. A corporate volunteer task in November prepared the land with “crushed concrete fines” dug into the soil and spread over it, to control weeds while the meadow gets established. The wildflower course then allowed members of the local community to help plant and sow the meadow, and learn about wildflowers and how to encourage them elsewhere (e.g. in amenity grass in parks and housing estates). Seed mixes contained wild grasses, annual wildflowers and perennial wildflowers, including some more mature biennial and perennial plants e.g. Teazel, Tansy, Ox-eye Daisy, Black Knapweed, Chicory and Cowslip. The Farm reports that the meadow has been very successful, with a huge diversity of planting and a large number of bees and other pollinators visiting the flowers.

Tower Hill Trust 9

Trustees’ report Year to 30 April 2021

Tower Hamlets in Bloom

The Trust sponsored the Tower Hamlets in Bloom Awards for the first time in December 2019, and was keen to support the event in 2020, unfortunately the event was cancelled because of the pandemic restrictions.

Ongoing projects

The Trust currently funds three bursaries for eligible pupils’ resident in the London Borough of Tower Hamlets to attend the City of London School for Girls. Trustees receive progress reports from the School and have been impressed with the impact that these bursary places have had, and the opportunities taken up by the bursars, despite the impact of pandemic restrictions. This included the opportunity to study Mandarin and Latin and to benefit from a significant range of extra-curricular activities, including the school’s Young Enterprise Team. In 2020-21 a total of £29,010 was spent on these bursaries, with the same amount provided in matched funding from the City of London Corporation.

There were no other multi-year grants awarded in the year.

Investment policy

The Trustees’ investment policy aims to provide revenue for the current purposes of the Trust, and to enhance income and capital growth over the longer term, thereby enabling the Trust to meet its current and future objectives. The Trust’s assets consist of one freehold property, the Tower Hill Wine Vaults, and investments currently managed by Newton Investment Management Limited.

Investment performance

The Wine Vaults were originally acquired because of the Trust’s overall interest in the Tower Hill area, but are now a commercial investment, let on a lease of 150 years (from 1991). The investment in the property is justified both by the return which it provides and by the contribution which it makes to the Trust’s objectives. In April 2021 the Vaults were valued at £1,450,000 which reflected a fall in capital value compared to the last value of £2,070,000 in 2016. Trustees accepted that the pandemic’s effect on property values and rental income was reflected in this fall in value of the Vaults, however the valuation had a negligible impact in the short term as the Trust has no need or intention to realise the capital value of the Vaults.

The head lease is held by the Fishmongers’ Company, one of the Great Twelve Livery Companies of the City of London, with whom the Trust has established a good co-operative relationship.

Income from the Wine Vaults continued to be reduced due to the impact of the pandemic shut downs between March 2020 and June 2021 and Trustees have accepted that income may continue to be reduced during 2021-22.

In respect of the investment portfolio, the income in recent years had been sufficient to fund annual grant programmes. Trustees have also drawn on capital for high priority projects. The annual grants budget based on a sustainable withdrawal, considering current market conditions and advice from the investment manager. The Trustees recognise that inflation is a key risk to the long-term sustainability of the Trust, and accordingly the investment assets need to be invested to mitigate this risk over the longer term. The Trustees understand that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate.

Tower Hill Trust 10

Trustees’ report Year to 30 April 2021

Investment performance (continued)

The Trustees can tolerate volatility of the capital value of the investment portfolio, if the Trust is able to meet its short-term grant-making commitments through either income or liquid capital assets. The Trustees have considered matters of ethical and socially responsible investing and place no restrictions on their investment manager. The Trust’s investments are managed by Newton Investment Management Limited. The Trustees would like to thank Newton Investment Management for its work for the Trust over the year. Review meetings are held with Newton Investment Management once a year.

For the present, all the investments are in the Global Growth and Income Fund for Charities, which is a pooled managed fund for charities. The portfolio produced income totalling £123,080 during the year, and its value stood at £6,429,061 at the end of the year. In this year, Trustees agreed to withdrew £36,000 from investments to support their commitment to award grants during this year of huge challenge for local charities and community groups.

For 2021-22, Trustees were advised that investment income may fall further and will keep this under review. Trustees have the flexibility to draw upon capital reserves for high priority initiatives if required.

Financial review

During the year the total income was £178,425 compared to £221,226 in the previous year. Expenditure totalled £250,229 (2020 - £174,310). The increase in expenditure is predominately due to an increase in grant expenditure of £72,004. Further details of the grants awarded in the year can be found in note 11 of the financial statements. Net expenditure for the year, therefore, amounted to £71,804 (2020– net income £46,916) before net investment gains. The net investment gains of £339,887 (2020 – losses of £370,021) give rise to a net increase in funds of £268,083 (2019 – net decrease in funds of £323,105).

Reserves policy

The Trust holds net assets, in the form of cash and investments, to produce income which can be used, after payment of management expenses, for grant-giving. The Trust aims to sustain and increase its grant-making capability over the long term. At the year end, the free reserves of the Trust amounted to £6,421,167 equating to the net assets less the investment property.

The financial position of the Trust is such that all current and future commitments can be carried out, and the Trust will be able to fulfil its charitable obligations.

Key management

The Trustees consider that they comprise the key management of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis.

Fundraising statement

The Trust does not work with any commercial or professional fundraisers and does not solicit donations from the general public.

Tower Hill Trust 11

Trustees’ report Year to 30 April 2021

Risks and uncertainties

The Trustees have assessed the major risks to which the Trust is exposed, particularly those relating to the operations and finances of the Trust and are satisfied in general that systems are in place to protect its grant-making activities and to guard against the possibility of fraud. The Trustees review the risk assessment annually. The financial risks to the Trust are assessed as low, since the Trust has investments which produce income, while most of the Trust’s expenditure is on grants, and can therefore be relatively easily and quickly adjusted if at any time there is a reduction in income. However, like any grant-giving charity, the Trust must face the possible risk of fraud, and the risk that grants might be used for purposes outside the Trust’s objects. Procedures are in place to guard against these risks so far as possible, and there have been no actual cases in recent years of fraud or of inappropriate use of the Trust’s grants.

Having only two staff, both employed by the Wakefield & Tetley Trust, the Trust is inevitably always at risk of losing key skills and experience when staff leave. The Trust consults closely with the Wakefield & Tetley Trust on staff matters. The Trustees also insist that good records are kept, particularly in relation to the awarding of grants, so that new staff can easily familiarise themselves with all matters.

There is also a risk that, if the Trust’s office were to suffer any kind of disaster, vital information might be lost. To reduce this risk, cloud-based storage is used for all information, and the Trust has ensured electronic storage of all the information in its archives.

The specific risks caused by the Covid-19 pandemic were assessed and added to the Risk Register. The business continuity plans were put into effect and the staff were able to continue working as normal remotely during 2020 and 2021.

Plans for future periods

The Trust aims in the future to maintain the level of its grant-giving; to rebalance the level of its reserves in real terms; and to continue to engage with charities, schools, community groups and other organisations working in its area of benefit, to ensure that its grants are as welldirected as possible.

To deal sensibly and coherently with grant applications, the Trust has developed focused grant priorities and criteria for funding. These priorities and criteria will be kept under review and will be used in assessing grant applications during the coming year. The Trust’s response to the Covid-19 pandemic crisis has been a determination to maintain grant-making at the same levels as recent years and, whenever necessary, to draw down on investments to top up cash reserves in order to award grants during the year. For 2021-22, Trustees set a baseline figure of £135,000 for grant-making and agreed to keep that figure under review.

Approved by the Trustees on 27 July 2021 and signed on their behalf by:

Susan Wood

Davina Walter

Chairman

Trustee

Tower Hill Trust 12

Independent auditor’s report Year to 30 April 2021

Independent auditor’s report to the trustees of Tower Hill Trust

O pinion

We have audited the financial statements of the Tower Hill Trust (the ‘charity’) for the year ended 30 April 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

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Independent auditor’s report Year to 30 April 2021

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Tower Hill Trust 14

Independent auditor’s report Year to 30 April 2021

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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

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

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

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Tower Hill Trust 15

Independent auditor’s report Year to 30 April 2021

Auditor’s responsibilities for the audit of the accounts (continued)

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at 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 Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

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

Tower Hill Trust 16

Statement of financial activities Year to 30 April 2021

Notes Total
Unrestricted funds		 Total
Unrestricted funds
2021
£		 2020
£
Income:

Investment income
1
Total income


Expenditure on:

Charitable activities
2
Total expenditure


Net (expenditure) income before investment gains
(losses)


Gains (losses) on investments
4

Net income (expenditure) and net movement in funds


Fund balances brought forward at 1 May


Fund balances carried forward at 30 April
178,425		 221,226
178,425 221,226


250,229
174,310
250,229 174,310

(71,804)

339,887		 46,916
(370,021)


268,083

7,603,084		 (323,105)
7,926,189

7,871,167		 7,603,084

All movements derive from continuing activities during the above two financial periods.

The charity has no recognised gains and losses other than those shown above and therefore no separate statement of total recognised gains and losses has been presented.

Tower Hill Trust 17

Balance sheet 30 April 2021

Notes 2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Investment property
6
Listed investments
7
Current assets
Cash at bank and in hand
Creditors: amounts falling due
within one year
8
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
more than one year
9
Total net assets
The funds of the charity
Designated funds
12
Unrestricted income funds

184,149		 1,450,000
6,429,061		 173,497 2,070,000
5,505,174
7,879,061
72,106		 7,575,174
90,149
184,149

(112,043)		 173,497
(83,348)


7,951,167
(80,000)		 7,665,323
(62,239)
7,871,167 7,603,084
1,450,000
6,421,167		 2,070,000
5,533,084
7,871,167 7,603,084

The financial statements were approved by the Trustees on 27 July 2021 and signed on their behalf by

Susan Wood Davina Walter Chair Trustee

The notes on pages 20 to 27 form part of these financial statements.

Tower Hill Trust 18

Statement of cash flows 30 April 2021

Notes
2021
£		 2020
£
Cash used in operating activities:
Net cash used in operating activities
A
Cash inflow from investing activities:
Investment income receivable
Proceeds from disposal of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 May
B
Cash and cash equivalents at 30 April
B

**(203,773) **		 (169,703)


178,425
36,000		 221,226
—
214,425 221,226

10,652


173,497
 51,523
121,974

184,149		 173,497

Notes to the statement of cash flows for the year to 30 April:

A Adjustment of net income to net cash used in operating activities

2021
£		 2020
£
Net income (expenditure) as per the statement of financial
activities
Adjustments for:
(Gains) losses on investments
Investment income receivable
Decrease in debtors
Increase (decrease) in creditors
Net cash used in operating activities		 268,083
(339,887)
(178,425)
—
46,456		 (323,105)
370,021
(221,226)
14,453
(9,846)
(203,773) (169,703)

B Analysis of changes in cash and cash equivalents

2021
£		 2020
£
Cash held at bank
Short term deposits
Total cash and cash equivalents		 118,149
66,000		 173,497
—
184,149 173,497

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

Tower Hill Trust 19

Principal accounting policies 30 April 2021

Background Information

Tower Hill Trust is an unincorporated charity registered under number 206225 with the Charities Commission in England and Wales. It is a public benefit entity, it is domiciled in England and Wales and its principal office is at Marshall House, 66 Newcomen Street, London, SE1 1YT.

The object of the charity is the benefit of people in the area of Great Tower Hill, Tower Hill and the London Borough of Tower Hamlets, through the provision of gardens and open spaces, support of education, recreation and leisure facilities, and the relief of the aged handicapped and poor.

Basis of preparation

These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies selected for use by the Charity. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates.

The charity meets the definition of a public benefit entity as defined by FRS 102.

Critical judgements and estimates

The investment property is carried at the last formal valuation conducted in April 2021.

In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy.

As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its financial statements on the going concern basis.

Tower Hill Trust 20

Principal accounting policies 30 April 2021

Going concern

Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the charity, its beneficiaries, partners and stakeholders and on wider society. The total impact on investment income is unclear but it is not anticipated at the current time that the overall financial position of the charity will be adversely affected, or its financial solvency threatened.

The Trustees have considered the financial position and resources of the charity for the foreseeable future. Given the charity’s net assets position and that grants are awarded at the charity’s discretion, the Trustees deem that the charity will be able to meet its future obligations as they fall due. Therefore, the Trustees have concluded that the going concern basis of accounting continues to be appropriate.

Investment property and investments

Listed investments are included in the financial statements at market value at the balance sheet date. The freehold investment property is included in the financial statements at the formal valuation conducted in April 2021. The realised and unrealised gains (losses) on investments are credited (debited) to the statement of financial activities.

Interest and dividends on investments

Interest and dividends, including associated tax credits where recoverable, are included in the financial statements when they are due.

Rent receivable

Rent receivable is included in the financial statements on the basis of the amounts receivable within the Trust’s accounting period.

Grants payable

Grants to beneficiaries are charged on the date approved by the Trustees or on the date of the requirements of the grant being met, if later.

Other expenditure

Other expenditure, including support costs are included in the financial statements on an accruals basis, including any irrecoverable VAT.

Tower Hill Trust 21

Principal accounting policies 30 April 2021

Financial instruments

The financial instruments held by the charity are investments, debtors and creditors. These are categorised as ‘basic’ in accordance with Section 11 of FRS 102 and are initially recognised at transaction price. Investments are subsequently measured at fair value, based upon market price, and changes in fair value recognised in the Statement of Financial Activities. Other financial instruments are subsequently measured at their transaction price less any impairment.

Fund accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the Trustees.

The designated funds are monies set aside out of general funds and designated for specific purposes by the trustees.

Tower Hill Trust 22

Notes to the financial statements 30 April 2021

1 Investment income

Investment income
Total
Unrestricted funds
2021
£		 2020
£
Rent receivable from investment property
Dividends from listed investments
Interest receivable
Total		 55,310
123,080
35		 54,019
167,207
—
178,425 221,226

2 Expenditure on charitable activities

Expenditure on charitable activities
Total
Unrestricted funds
2021
£		 2020
£
Grants payable
Direct costs of charitable activities
Support costs (note 3)
Total		 207,617
20,242
22,370		 135,613
19,143
19,554
250,229 174,310

The total office expenditure amounted to £30,212 (2020 - £28,572), this balance was charged to ‘Direct costs of activities’ (67%) - £20,242 (2020- £19,143) and 33% as support costs- £9,970 (2020 - £9,429). Further details of these costs can be found in note 10.

3 Support costs

2021
£		 2020
£
Office expenditure
Other
Sub-total
Governance
Audit and accountancy fees
Legal and professional
Meeting and event costs
Total		 9,970
1,509		 9,429
1,768
11,479
6,900
3,600
391		 11,197
6,456
329
1,572
22,370 19,554

4 Gains (losses) on revaluation of investments

Gains (losses) on revaluation of investments
2021
£		 2020
£
Net gains (losses) on revaluation of listed investments (note 7)
Loss on revaluation of investment property (note 6)
Net gains (losses) on revaluationof investments		 959,887
(620,000)		 (370,021)
—
339,887 (370,021)

5 Taxation

Tower Hill Trust is a registered charity and, therefore, is not liable to income tax or corporate tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Tower Hill Trust 23

Notes to the financial statements 30 April 2021

6 Freehold investment property

Freehold investment property
2021
£		 2020
£
Market value at 1 May
Loss on revaluation
Market value at 30 April		 2,070,000
(620,000)		 2,070,000
—
1,450,000 2,070,000

The Trust’s principal freehold investment property was re-valued in April 2021 by Lambert Smith Hampton, external valuers, in accordance with the Royal Institution of Chartered Surveyors Valuation Guidance Standards – Red Book Global. The historical cost of the freehold UK investment property is £257,608.

7 Listed investments

Movements in investments during the year were as follows:

2021
£		 2020
£
Market value at 1 May
Disposals at book value (proceeds: £36,000; gain of £2,510)
Gain (loss) on revaluation
Market value at 30 April
Historic cost of investments		 5,505,174
(33,490)
957,377		 5,875,195
—
(370,021)
6,429,061 5,505,174
3,867,211 3,890,881

The charity holds all of its investments in Newton Growth & Income Fund for Charities.

The total unrealised gains as at 30 April constitute movements on revaluation and are as follows:

2021
£		 2020
£
Reconciliation of movements in unrealised gains
Unrealised gains at 1 May
Less: net gains arising on disposals
Add: net gains (losses) arising on revaluation arising in the year
Total unrealisedgains at 30 April		 1,614,293
(9,820)
957,377		 1,984,314
—
(370,021)
2,561,850 1,614,293

8 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Grants Payable (note 11)
Accruals
Wine Vaults rental overpayment		 94,473
6,900
10,670		 70,615
6,753
5,980
112,043 83,348

9 Creditors: amounts falling due after more than one year

2021
£		 2020
£
Grants Payable(note 11) 80,000 62,239

Tower Hill Trust 24

Notes to the financial statements 30 April 2021

10 Related party transactions

Expenses were reimbursed to the Trustees in the year amounted to £356 (2020: £327). The Trustees received £nil remuneration for the year (2020 - £nil).

The principal officers of the Trust are employed by the Wakefield and Tetley Trust. During the year, the Trust paid office expenditure recharges to Wakefield and Tetley Trust of £30,212 (2020 - £28,572).

11 Grants payable

Grants payable
2021
Total
funds
£		 2020
Total
funds
£
At 1 May
Grants awarded in the year
Grants revised (withdrawn) in the year
Paid during the year
At 30 April
Grants at 30 April are payable as follows:
Within one year (see note 8)
After more than one year (see note 9)		 132,854
203,538
4,079
**(165,998) **		 149,133
136,113
(500)
(151,892)
174,473 132,854


94,473
80,000
70,615

62,239
174,473 132,854

Of the £203,538 awarded in the year £30,038 was awarded from the 2019-20 grant budget underspend, to support five Covid-19 emergency grants.

Tower Hill Trust 25

Notes to the financial statements 30 April 2021

Note 11 Grants Payable (continued)

Note 11 Grants Payable(continued)
Grantee Name Committed at 1st May
2020
£		 Awarded in the Year
£		 Revised or
Withdrawn
£		 Paid in the Year
£		 Committed at 30
April 2021
£
Barbican Centre — 4,000 — — 4,000
Biodiversity SmallGrants Scheme 3,533 6,872 (2,000) (868) 7,537
City of London School for Girls-Bursaries 99,421 29,010 10,579 (29,010) 110,000
Cleanup UK — 10,000 — (10,000) —
Duke of Edinburgh Award Scheme 5,000 — — (5,000) —
East End Community Foundation (for RFSK + First Love) 9,400 9,000 — (18,400) —
EastLondonCares — 6,925 — — 6,925
EMLV Shadwell Basin Project — 5,000 — (5,000) —
FirstLoveFoundation — 7,000 — (7,000) —
Friends of Arnold Circus — 10,000 — (5,000) 5,000
Friends of Tower Hamlets Cemetery Park — 8,000 — (8,000) —
Lower Regent’s Coalition 3,000 3,000 — (6,000) —
Neighbours in Poplar — 5,500 — (5,500) —
Newark Youth — 4,386 — — 4,386
Real DPO Ltd — 8,000 — (8,000) —
SeedsforGrowth — 5,000 — — 5,000
Shadwell Basin Sailing Club — 4,000 — — 4,000
Shadwell Community Project — 4,850 — — 4,850
SocietyLinks — 15,000 — — 15,000
Spitalfields City Farm — 7,775 — — 7,775
Spitalfields CryptTrust 6,000 2,000 — (8,000) —
SPLASH — 6,982 — (6,982) —
SSAFACentral, City,NE Division — 8,000 — (8,000) —
St Katharine's Trust — 4,500 — (4,500) —
St Peters Community Wellbeing Projects 2,000 — (2,000) —
Stepney CityFarm — 2,538 — (2,538) —
Tower Hamlets Youth Sport Foundation 4,500 (4,500) —
WeaversAdventurePlayground — 4,700 — (4,700) —
Wilder Communities — 2,000 — (2,000) —
Wilder Communities-Large Biodiversity — 8,000 — (8,000) —
Women's Environmental Network — 11,500 — (11,500) —
132,854
203,538
4,079
(165,998)
174,473

Tower Hill Trust 26

Notes to the financial statements 30 April 2021

12 Designated fund

The funds of the charity include the following designated fund which has been set aside out of unrestricted funds by the trustees for a specific purpose:


At
1 May
2020
£
New
designations
£		 Gains
(losses)
£

At
30 April
2021
£
Freehold investment property

2,070,000 — (620,000) 1,450,000
2,070,000 — (620,000) 1,450,000

This designated fund represents the value of the freehold investment property (note 6). It is the intention of the trustees that the investment property should continue to contribute to the Trust’s objectives for the foreseeable future, and as such its value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.

Tower Hill Trust 27