## **Tower Hill Trust**
**Annual Report and Financial Statements**
30 April 2023
Charity Registration Number: 206225
**Contents**
## **Reports**
|**Reports**||
|---|---|
|Reference and administrative information|1|
||2|
|Independent auditor
s report|12|
|**Financial statements**||
|Statement of financial activities|16|
|Balance sheet|17|
|Statement of cash flows|18|
|Principal accounting policies|19|
|Notes to the financial statements|21|
Tower Hill Trust
## **Reference and administrative information**
|**Trustees**|Susan M. Wood (Chairman until 1 May 2023)|
|---|---|
||Leslie A. Chapman|
||Kenneth E. Clunie (Chairman from 1 May 2023)|
||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**|HSBC UK|
||28 Borough High Street|
||London|
||SE1 1YB|
|**Solicitors**|Wedlake Bell LLP|
||71 Queen Victoria Street|
||London|
||EC4V 4AY|
|**Investment managers**|CCLA Investment Management|
||One Angel Lane|
||London|
||EC4R 3AB|
|**Auditors**|Buzzacott LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Principal officers**|Cherry Bushell (Secretary and Treasurer)|
||Elaine Crush (Grant Officer)|
Tower Hill Trust **1**
Year to 30 April 2023
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:
- a) select suitable accounting policies and then apply them consistently;
- b) make judgements and estimates that are reasonable and prudent;
- c) state whether the policies adopted are in accordance with the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), subject to any material departures disclosed and explained in the financial statements;
- d) prepare the financial statements on the on-going concern basis, unless it is inappropriate to assume that the charity will continue in business.
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] enefit 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**
Year to 30 April 2023
## **Structure, Governance and Management** (continued)
office is provided by Wakefield and 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 Wakefield and Tetley Trust, and a service charge is paid to that Trust for the provision of staff and services; a Memorandum of Understanding between the two Trusts provides for the oversight 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 conf
resources for the promotion of charitable
the following ways:
- a) The provision of gardens and open spaces for the general benefit of the inhabitants;
- b) The provision and support of facilities for recreation and leisure-time occupation;
- c) The provision and support of educational facilities; and
- d) The relief of the aged, handicapped and poor.
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 -making is geographical. The guidance on public al area, such Great Tower Hill, Tower Hill and the London Borough of Tower Hamlets. Trustees particularly welcome proposals for capital costs, and proposals th borough of Tower Hamlets.
Tower Hill Trust **3**
Year to 30 April 2023
## **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 monit 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 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**
by CCLA Investment Management, 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 2022-23, the Trust awarded 17 grants totalling £105,562 (£90,360, 2021-22) under its Main Grant Programme and a further 4 grants totalling £14,864 under its Biodiversity Grant Programme. A total of £148,073 was paid out during the year to grant recipients. A proportion of the amount paid out in grants during the year reflected the continuation of grants awarded in previous years. Similarly, a proportion of grants awarded in 2022-23 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 2022-23, but the grants awarded during the year. Details of both grants paid, and grants awarded during the year are contained in note 12.
Trustees differentiate the grants into three distinct categories with their own funding approach and financial treatment. Those categories are Main Grants, Biodiversity Grants and School Bursaries (multi-year projects).
The Trust is a member of Tower Hamlets Funder Forum, an initiative that brings key Tower Hamlets funders together to reduce duplication of work, consider possible joint initiatives and gather intelligence regarding issues in the borough. Staff also attend regular Funder Fairs to promote available grants to local community groups and charities.
## **Grant Programmes**
The Trustees take care to provide for the diversity of the population of the area of benefit through the spectrum of grants available. They particularly seek to take into account the needs of an ethnically diverse community with higher-than-average numbers of older and disabled people and to ensure that people in poverty are not excluded from benefiting from grants.
Tower Hill Trust **4**
Year to 30 April 2023
## **Main Grant Programme**
In 2022-23 the Trust ran four open grant rounds, and one closed grant round targeted at initiatives for people affected by the cost-of-living crisis. A total of 25 applications were received, of these 17 were awarded grants (a success rate of 68%). Of the Main Grants awarded, 23% were to recipients whom the Trust had not previously assisted.
is the oss the London Borough of Tower Hamlets; 47% of the total funds awarded in the year (excluding bursary grants) were targeted at this priority. Of the remaining grants, 22% 18% focused on the . Across all grants, 64% benefited people on low incomes or disadvantaged due to homelessness, ill health and/or disability. 14% of the Main Grant budget was awarded to the Felix Project and East End Citizens Advice Bureaux in response to the cost-of-living crisis, to and other essentials.
Examples of Main Grants that were awarded during the year included:
**Crisis** £15,000 was awarded as a contribution towards building refurbishment works for a new Skylight Centre in Tower Hamlets. The current Crisis Skylight London Centre for homeless people (66 Commercial Street, Tower Hamlets) is no longer suitable to accommodate services, as need for these is rising and the way they work is changing. The charity has secured a new building at 50 Commercial Street and required funding to refurbish and fit-out this out in 2023. The new Skylight London will provide drop-in and referral services to support homelessness people with their mental and physical health, life skills and vocational training, with 1:1 support, including literacy and numeracy and employability skills, and support to find accommodation.
**Bureaux** Match funding of £7,000 was provided for a social welfare advice service in three Tower Hamlets primary schools Manorfield, Marnor and Mulberry; the project provides advice to families to resolve their benefit, debt, housing and employment problems. The charity reports that work to date has seen a huge improvement in family incomes and wellbeing and has been especially helpful for families who have a child with special educational needs or disabilities, who might struggle to attend the EECAB offices. the additional funding.
**Felix Project** Two grants of £7,000 (£14,000 in total) were awarded in the year. The charity rescues surplus food and distributes it for free to 1000 charities across London, including a number in Tower Hamlets and they saw demand for their service significantly increase in 2022 (+50%). The grants were awarded as a contribution to the running costs of their depot in Poplar, Tower Hamlets. The depot supports community organisations in East London, and there is also a kitchen where local volunteers use surplus food to prepare meals for vulnerable themselves.
**Portsoken Activities Group** £3,400 was awarded to establish a new garden and open communal space for residents on the Guinness Trust Mansell Street estate. A large and enthusiastic group of gardeners has been running on the estate since 2005. The grant will support the construction of two new open garden spaces on the top floor of one of the housing blocks, to provide a growing space for fruit, vegetables, and herbs for all the community. They also plan to install 3 raised planting beds, and overhead flower containers to enhance the look
Tower Hill Trust **5**
Year to 30 April 2023
of a former bin and rubbish collection area. As well as encouraging gardening activities for residents, they aim to provide some educational activities for the local community. The grant will purchase equipment and materials to construct the new garden spaces, purchase gardening equipment, propagation boxes /cold frames for seedlings, extend watering facilities, and support planting workshops.
**Providence Row Housing Association** £9,595 was awarded towards to support the Grounded eco-therapy project, specifically for volunteer expenses, project and capital costs. Grounded is an inclusive project working with PRHA residents and the wider community to transform the outdoor spaces of local authorities, housing associations and voluntary groups, working with homeless hostel residents to transform underused and neglected spaces into biodiverse places of sanctuary. At the same time, it provides the volunteers, many of whom have substance abuse issues, poor mental health and significant levels of trauma, the opportunity to build new skills, strong and positive peer relationships and work towards employment.
**Women's Environmental Network** £8,280 was granted to support the co-ordination, promotion and support of the Tower Hamlets Food Growing Network (THFGN) during 2023, and for materials and running costs to deliver the Wellbeing Gardens Project across three Tower Hamlets gardens in Tower Hamlets and a new garden being planned for the Ocean Estate in Mile End. THFGN will put more people in touch with their local community gardens and green spaces through the delivery of four in-person seasonal gatherings per year. The gatherings bring together 100+ people at each event, building relationships between small food growing projects and residents, and encouraging people to share food, resources, skills and knowledge.
_Image credit:_
Tower Hill Trust **6**
Year to 30 April 2023
Main Grant projects that were completed during the year included:
**Cayley Primary School** £5,357 was awarded to the school in the year to commission four bespoke ID and interpretation boards, especially designed for teachers and primary-aged children, including questions children can go back to the classroom to research. They also wanted to purchase chalkboards for seasonal notes and nature sightings. The boards have now been developed and are being installed, they should enhance the educational value of a new wildlife and pond space (supported by the Trust through the biodiversity grant programme) and make it more accessible.
**Seeds for Growth** £5,000 was granted to encourage and support tenants and residents to grow seeds at home, maintain and improve their existing community garden beds, plant new flowers, trees and vegetables, remove and safety dispose of invasive plants across the Barkantine Estate, Isle of Dogs and Columbia Road estate, Bethnal Green. Unfortunately, the project start was delayed because of the pandemic, but the project eventually worked with 19 tenants and resident families (95 people) on Barkantine to support and encourage them to start growing flowers, fruit and vegetables on balconies and community gardens. Work on Barkantine culminated with the creation of a new orchard on the Quarterdeck of the estate, which included 7 James Grieve apple trees, 1 Conference Quince pear tree and a Victoria plum tree. At Columbia Road, a team of 20 active volunteers was trained to plant and maintain 18 new cherry trees.
_New orchard - Barkantine Estate, image credit www.seedsforgrowth.org.uk_
**Oxford House in Bethnal Green (OH)** £3,590 was awarded to support 20 free or low-cost creative community events throughout the summer. The project was very well attended. The impact of the cost-of-living crisis meant that more families and local people were interested in the free and accessible activities. OH also developed a number of partnerships, which were key to the success of the programme. For example, delivering 4 creative workshops with 50 participants from Tower Hamlets Youth League a local organisation based in OH working with young people aged 6-15. They also partnered with the Royal Drawing School to deliver two rooftop drawing workshops, led by tutors who taught young people special techniques for drawing famous landmarks and led sessions responding to different types of music. The funding also enabled them to offer opportunities to 14 local artists who led workshops and performances over the summer. This included the OH House Jazz Band; an ensemble of 4 local young musicians based in Whitechapel, and community focused artists including crafter
Tower Hill Trust **7**
Year to 30 April 2023
Ruhela Begum (based in Tower Hamlets). They were also able to collaborate with Zoo Nation, an award-winning dance company which taught 24 young people hip-hop moves in the OH chapel. In total 535 people participated and they are looking for ways to expand the programme from 2023.
_Image credit: Oxford House_
## **Biodiversity Grant Programme**
The Trust established this small grant programme in 2016 working in partnership with the fund biodiversity enhancements by schools and community groups in school grounds, around housing estates or in community gardens, and larger grants of up to £10,000 for more ambitious project with significant biodiversity outcomes. Projects must directly contribute to objectives and targets in the Tower Hamlets Local Biodiversity Action Plan. Once again, opportunities during the year to promote the grants were limited because of the pandemic, and it was difficult for schools and community groups to prioritise these types of initiatives, so fewer awards were made compared to previous years. Four Biodiversity grants were awarded totaling £14,864 as follows:
**Cayley Primary School** In total £4,000 was awarded (two grants) to complete the transformation of an abandoned and underused space in the playground to create a nature garden. The first grant was used to clear the area and dig/create a new pond, with associated planting. They also began to landscape the surrounding area, but there were problems with underground cables, which pushed up the cost of the work. It was therefore agreed to award a second grant to complete the landscaping and planting, and purchase bird/bat boxes/tools. Work on the pond, which is the main feature, was supported by Tower Hamlets Cemetery Park staff, who advised on construction and planting, and by volunteers.
**Spitalfields City Farm** £864 was awarded to support the improvement of a designated wildlife area for the benefit of native amphibian species in partnership with Froglife. The grant supported a grass path survey and management plan, a wildlife pond survey and terrestrial habitat management in close proximity to the ponds.
**London Borough of Tower Hamlets** A contribution of £10,000 was awarded to complete the funding for a large biodiversity enhancement project on Wapping Canal, match funding some failed floating rafts at the western end of Wapping Canal with top of the range Biohaven rafts, which have been successfully installed in numerous parts of the Tower Hamlets canal
Tower Hill Trust **8**
Year to 30 April 2023
system. 240 metres of canal will be enhanced providing new, long-term floating wetland habitats, and incorporating nesting platforms for water birds.
## **Ongoing work**
Borough of Tower Hamlets to attend the City of London School for Girls. In 2022-23 a total of £39,524 was disbursed in relation to these bursaries, with the same amount provided in matched funding from the City of London Corporation, with a remaining amount of £247,738 committed by the Trust at 30 April 2023. Bursary students are normally supported for a period of 7-years and Trustees receive progress reports from the School.
## **Investment policy**
and to enhance income and capital growth over the longer term, thereby enabling the Trust of one freehold property, the Tower Hill Wine Vaults, and investments managed by CCLA Investment Management.
## **Investment performance**
The Tower Hill Wine Vaults were originally acquired 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 On 16 June 2023 the Tower Hill Wine Vaults was valued at £1,605,000 which reflected a rise in capital value compared to the last formal valuation of £1,450,000 in 2021. Trustees accepted that partial recovery from the al income was reflected in this rise in value of the Tower Hill Wine 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 Tower Hill Wine Vaults.
The head lease is Companies of the City of London, with whom the Trust has established a good co-operative relationship.
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 is 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.
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. and review meetings are held with CCLA Investment Management once a year.
The investments are held in COIF Charities Investment Fund which is a pooled managed fund for charities. The fund has a broad asset allocation
Tower Hill Trust **9**
Year to 30 April 2023
and incorporates ethical restrictions which exclude investments in indiscriminate weaponry and tobacco producers and apply revenue screens to avoid exposure to other controversial areas, including coal and oil sands extraction, pornography and online gambling. By value, The portfolio produced income totalling £184,090 during the year and at the end of the year its value stood at £6,341,498 **.** The fall in value reflected ongoing challenging conditions for financial markets as investors deal with the rising rate of inflation and the ongoing war in Ukraine which continued to exacerbate inflationary pressures, affecting energy and food prices in particular.
Trustees expect that investment income will remain consistent in 2023-24, reflecting CCLA's total return approach to distributions from the COIF Charities Investment Fund and the Fund's broader sources of income, particularly from alternative asset classes, including property, renewable energy and infrastructure. Trustees have the flexibility to draw upon capital reserves for high priority initiatives if required.
## **Financial review**
During the year the total income was £268,343 compared to £211,086 in the previous year. Expenditure totalled £157,805 (2022 - £339,113). In the previous year, expenditure in the had been unusually high due to two new long-term school bursary commitments being recognised. Total grants awarded was £120,426. Further details of the grants awarded in the year can be found in note 12 of the financial statements. Net expenditure for the year, therefore, amounted to £110,538 (2022 - net deficit expenditure £128,027) before net investment gains. The net investment gains of £68,092 (2022 - net gains of £112) give rise to a net increase in funds of £178,630 (2022 - net decrease in funds of £127,915).
## **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 £6,301,882 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 objectives.
## **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 **10**
Year to 30 April 2023
## **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 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 and there have been no actual cases in recent years of fraud or of inappropriate use of the T
Having only two staff, both employed by Wakefield and Tetley Trust, the Trust is inevitably always at risk of losing key skills and experience when staff leave. The Trust consults closely with Wakefield and 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.
isaster, 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 staff ensure that business continuity measures are actionable at any time and that Trust operations can be effected remotely, particularly in the event of future government-issued lockdowns and restrictions.
## **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.
The Trustees have set a baseline figure of £135,000 for grant-making in 2023-24 and will keep that figure under review.
Approved by the Trustees on and signed on their behalf by:
**Chairman**
**Trustee**
Tower Hill Trust **11**
Year to 30 April 2023
## **Opinion**
We have audited the financial statements of 30 April 2023 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- 3 and of its
- income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accoun 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 Trustees 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 t 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.
Tower Hill Trust **12**
Year to 30 April 2023
## **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 not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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:
- the information given in the T with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns.
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the T 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.
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 **13**
Year to 30 April 2023
Our objectives are to obtain reasonable assurance about whether the accounts as a whole 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:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and
- we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011).
including obtaining an understanding of how fraud might occur, by:
- making enquiries of principal officers as to their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
- To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- reviewed cashbook entries to identify unusual transactions; and
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias.
Tower Hill Trust **14**
Year to 30 April 2023
(continued) In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
review of the minutes of meetings of those charged with governance; and
enquiring of principal officers as to actual and potential litigation and claims.
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
## **Use of our report**
This report is made solely to the cha 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 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 or for the opinions we have formed.
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
Date: 17 October 2023
Tower Hill Trust **15**
## **Statement of financial activities** Year to 30 April 2023
|**Notes**|Total
Unrestricted funds|Total
Unrestricted funds|
|---|---|---|
||**2023**
**£**|_2022_
_£_|
|**Income:**
Investment income
**1**
**Total income**
**Expenditure on:**
Charitable activities
**2**
**Total expenditure**
**Net income before investment gains**
**Net gains on investments**
**4**
**Net income and net movement in funds**
**Fund balances brought forward at 1 May**
**Fund balances carried forward at 30 April**|**268,343**|_211,086_|
||**268,343**|_211,086_|
||**157,805**|_339,113_|
||**157,805**|_339,113_|
||**110,538**
**68,092**|_(128,027)_
_112_|
||**178,630**
**7,743,252**|_(127,915)_
_7,871,167_|
||**7,921,882**|_7,743,252_|
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 **16**
**Balance sheet** 30 April 2023
|**Notes**|**2023**
**£**|**2023**
**£**|_2022_
_£_|_2022_
_£_|
|---|---|---|---|---|
|**Fixed assets**
Investment property
**6**
Listed investments
**7**
**Current assets**
Debtors
**8**
Short term deposits
Cash at bank and in hand
**Creditors**: amounts falling due
within one year
**9**
**Net current assets**
**Total assets less current liabilities**
**Creditors**: amounts falling due
more than one year
**10**
**Total net assets**
**The funds of the charity**
Designated funds
**13**
Unrestricted income funds|**36,053**
**230,083**
**27,001**|**1,605,000**
**6,341,498**|_66,161_
_156,566_|_1,450,000_
_6,428,406_|
|||**7,946,498**
**152,595**||_7,878,406_
_88,037_|
||**293,137**
**(140,542)**||_222,727_
_(134,690)_||
||||||
|||**8,099,093**
**(177,211)**
**7,921,882**
**1,605,000**
**6,316,882**||_7,966,443_
_(223,191)_
_7,743,252_
_1,450,000_
_6,293,252_|
|||**7,921,882**||_7,743,252_|
The financial statements were approved by the Trustees on and signed on their behalf by
Chair
Trustee
The notes on pages 21 to 25 form part of these financial statements.
Tower Hill Trust **17**
## **Statement of cash flows** 30 April 2023
|**Notes**|**2023**
**£**|_2022_
_£_|
|---|---|---|
|**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
Cost of purchase 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**|**(233,986)**|_(173,275)_|
||**(233,986)**
**268,343**|_(173,275)_
_211,086_
_7,025,767_
_(7,025,000)_|
||**268,343**|_211,853_|
||**34,357**
**222,727**|_38,578_
_184,149_|
||**257,084**|_222,727_|
## **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**
**----- Start of picture text -----**
2023 2022
£ £
Net income as per the statement of financial activities 178,630 (127,915)
Adjustments for:
(Gains) on investments (68,092) (112)
Investment income receivable (268,343) (224,542)
(Increase) in debtors (36,053)
Decrease in creditors (40,128) 165,838
Net cash used in operating activities (233,986) (173,275)
**----- End of picture text -----**
## **B Analysis of changes in cash and cash equivalents**
||**2023**
**£**|_2022_
_£_|
|---|---|---|
|Cash held at bank
Short term deposits
**Total cash and cash equivalents**|**27,001**
**230,083**|_156,566_
_66,161_|
||**257,084**|_222,727_|
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 **18**
**Principal accounting policies** 30 April 2023
## **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**
Preparation of the financial statements requires the trustees and management to make judgements and estimates. The item in the financial statements where judgement and estimate has been made relates to the investment property. The investment property is carried at the desktop valuation conducted in June 2023.
## **Going concern**
The Trustees have considered the financial position and resources of the charity for the the cha 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 desktop valuation conducted in June 2023. The Trust has a policy of conducting a formal Red Book compliant valuation at a minimum of every five years with a desktop valuation in each of the intervening years. The latest formal valuation took place in April 2021. The realised and unrealised gains (losses) on investments are credited (debited) to the statement of financial activities.
Tower Hill Trust **19**
**Principal accounting policies** 30 April 2023
## **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
## **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.
## **Financial instruments**
The financial instruments held by the charity are investments, debtors and creditors. These 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 **20**
**Notes to the financial statements** 30 April 2023
**DRAFT**
## **1 Investment income**
|**Investment income**|||
|---|---|---|
||Total
Unrestricted funds||
||**2023**
**£**|_2022_
_£_|
|Rent receivable from investment property
Dividends from listed investments
Interest receivable
**Total**|**81,053**
**184,090**
**3,200**|_46,544_
_164,381_
_161_|
||**268,343**|_211,086_|
## **2 Expenditure on charitable activities**
|**Expenditure on charitable activities**|||
|---|---|---|
||Total
Unrestricted funds||
||**2023**
**£**|_2022_
_£_|
|Grants payable
Direct costs of charitable activities
Support costs (note 3)
**Total**|**109,056**
**22,688**
**26,061**|_297,586_
_21,846_
_19,681_|
||**157,805**|_339,113_|
The total office expenditure amounted to £33,863 (2022 - £32,606). This balance was activities (67%) - £22,688 (2022 - £21,846) and 33% as support costs - £11,175 (2022 - £10,760). Further details of these costs can be found in note 11.
## **3 Support costs**
||**2023**
**£**|_2022_
_£_|
|---|---|---|
|Office expenditure
Other
**Sub-total**
**Governance**
Audit and accountancy fees
Legal and professional
Meeting and event costs
**Total**|**11,175**
**755**|_10,760_
_677_|
||**11,930**
**7,248**
**5,231**
**1,652**|_11,437_
_7,074_
_1,170_|
||**26,061**|_19,681_|
## **4 Net gains on revaluation of investments**
|**Net gains on revaluation of investments**|||
|---|---|---|
||**2023**
**£**|_2022_
_£_|
|Net gains on revaluation of listed investments (note 7)
Gain on revaluation of investment property (note 6)
Netgains on revaluation of investments|**(86,908)**
**155,000**|_112_|
||**68,092**|_112_|
## **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 **21**
**Notes to the financial statements** 30 April 2023
**DRAFT**
## **6 Freehold investment property**
|**Freehold investment property**|||
|---|---|---|
||**2023**
**£**|_2022_
_£_|
|Market value at 1 May
Gain on revaluation
Market value at 30 April|**1,450,000**
**155,000**
**1,605,000**|_1,450,000_
_1,450,000_|
The historical cost of the freehold UK investment property is £257,608.
## **7 Listed investments**
Movements in investments during the year were as follows:
|**Listed investments**
Movements in investments during the year were as follows:|||
|---|---|---|
||**2023**
**£**|_2022_
_£_|
|Market value at 1 May
Additions at cost
Disposals at book value (proceeds: £nil; gain of £nil)
(Loss) on revaluation
Market value at 30 April
Historic cost of investments|**6,428,406**
**(86,908)**|_6,429,062_
_7,025,000_
_(6,429,061)_
_(596,595)_|
||**6,341,498**|_6,428,406_|
||**7,025,000**|_7,025,000_|
The charity holds all of its investments in CCLA COIF Charities Deposit Fund.
The total unrealised (losses) gains as at 30 April constitute movements on revaluation and are as follows:
||**2023**
**£**|_2022_
_£_|
|---|---|---|
|**Reconciliation of movements in unrealised gains**
Unrealised losses at 1 May
Less: net gains arising on disposals
Add: net gains arising on revaluation arising in the year
**Total unrealised (losses) gains at 30 April**|**(596,594)**
**86,908**
**(509,686)**|_2,561,850_
_(2,561,850)_
_(596,594)_
_(596,594)_|
## **8 Debtors: amounts falling due within one year**
||**2023**
**£**|_2022_
_£_|
|---|---|---|
|Rents due at year end|**36,053**||
||**36,053**||
## **9 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2023**
**£**|_2022_
_£_|
|Grants Payable (note 12)|**129,487**|_114,154_|
Tower Hill Trust **22**
**Notes to the financial statements** 30 April 2023
**DRAFT**
|Accruals
Tower Hill Wine Vaults rental overpayment|**11,055**|_7,080_
_13,456_|
|---|---|---|
||**140,542**|_134,690_|
|**Creditors: amounts falling due after more than one year**|**2023**
**£**|_2022_
_£_|
|Grants Payable(note 12)|**177,211**|_223,191_|
## **10 Creditors: amounts falling due after more than one year**
## **11 Related party transactions**
Expenses were reimbursed to the trustees in the year amounted to £91 (2022: £nil). The trustees received £nil remuneration for the year (2022 - £nil).
The principal officers of the Trust are employed by Wakefield and Tetley Trust. During the year, the Trust paid office expenditure recharges to Wakefield and Tetley Trust of £33,697 (2022 - £32,606).
## **12 Grants payable**
|**Grants payable**|||
|---|---|---|
||**2023**
**Total**
**funds**
**£**|_2022_
_Total_
_funds_
_£_
_174,473_
_294,346_
_3,240_
_(134,714)_
_337,345_
_114,154_
_223,191_
_337,345_|
|At 1 May
Grants awarded in the year
Grants revised 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)|**337,345**
**120,426**
**(3,000)**
**(148,073)**||
||**306,698**||
||**129,487**
**177,211**
**306,698**||
Tower Hill Trust **23**
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**Notes to the financial statements** 30 April 2023
**DRAFT**
## **13 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**
**2022**
**£**|**New**
**designations**
**£**|**New**
**designations**
**£**|**Gains**
**(losses)**
**£**|**At**
**30 April**
**2023**
**£**|
|---|---|---|---|---|---|
|Freehold investment property|**1,450,000**
**1,450,000**
_At_
_1 May_
_2021_
_£_|_New_
_designations_
_£_||**155,000**
**155,000**
_Gains_
_(losses)_
_£_|**1,605,000**
**1,605,000**
_At_
_30 April_
_2022_
_£_|
|_Freehold investment property_|_1,450,000_
_1,450,000_||||_1,450,000_
_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 as such its value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.
Tower Hill Trust **25**