Registered Numbor.. 00607648 Charity Nurnber.. 207392 THE RAYNE TRUST (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
THE RAYNE TRUST A company limited by guarantee) CONTENTS Pagg Reference and administrative dotails of th& charity. its truste&s and advisers Truste&s' report Independent audltor's report Statement of financial activities 12 Balance 8heet 13 Statement of cash flows 14 Notes to the financial statements 15-29
THE RAYNE TRUST IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Trustees Lady Jane Rayne, Patron The Hon. Robert A Rayne, Chairman Mr Damian Rayne The Hon. Tamara Wood Company secrotary The Hon. Robert A Rayne Company rggistarod numbgr 00607648 Charity registered number 207392 Registered office 3 Bromley Place, London, W1T 6DB Independent audltor Crowe U.K. LLP, Fourth Floor, St James House, St James, Square. Chellenham, Gloucestershire, GL50 3PR Bankers Barclays Bank plc, 1 Churchill Pla, London, E14 5HP Investment advisers Cazenove Capital Management Ltd., 1 London Wall Place, London, EC2Y SAU Rathbones Brothers PLC, 8 Finsbury Circus, London, EC2M 7AZ Page 1
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees present their reFX)rt and financial statements for The Rayne Trust for the year ended 31 March 2022. The financial slalements have been prepared in accordan with the accounting policies set out in note 2 to the financial statements and comply with the Trust's Memorandum and Articles of Association, FRS 102, the Charities SORP IFRS 102}, the Companies Act 2006 and the Charities Act 2011. Structurej governance and management The Trust is a charitsble company limited by guarantee. 11 is governed by ils Memorandum and Articles of Association, as amended 20 November 1986 and Incorporation on 8th July 1958. The registered company number is 00607648 and registered charity number is 207392. The Trust supports projects in Israel and those in the fields of social welfare, the arts and other sectors in the UK which are of interest lo the Trustees and approved by The Trust. The Trustees who served during the year were." Lady Jane Rayne The Hon. Robert A Rayne Mr Damian Rayne The Hon. Tamara Wood IPalronl {Chairmanl The same Trustees are also directors and members of the company and guarantee lo contribute £1 in the event of a winding up. There were no new appointments of Trustees made in the year. Should new Trustees be appointed, they would be considered on the basis of the skills and knowledge they would bring lo meet the charitable interests of the Trust. Names are suggested by the Chairman and any appointment approved by all the Trustees. New Trustees have an induction and r1ve ne$sary background information for them to meet their responsibilities and properly understand the work of the Trust. There is no Trustee remuneration policy as no Trustee receives any remuneration for being a Trustee, bul travel expenses can be claimed although there were none. The Trustees are volunteers in their role as Trustees, bul The Trust does not othenmise rely on the work of other volunteers. A Joint Finance and Investment Committee IJFICI meets quarterly lo monitor financial mallers and investments and lo recommend investment decisions. 11 has delegated authority to do this from three charities.. The JFR Charitable Trust, The Rayne Foundation and The Rayne Trust. The members of this committee are The Hon. Robert A Rayne la Trustee of The Rayne Foundation and The Rayne Trusll, The Hon. Nicholas Rayne la Trustee of the JFR Charitable Trust and The Rayne Foundalionl, and Sir Emyr Jones Parry la Trustee of The Rayne Foundation). There were no changes lo the members during the year. Day to day responsibility for managing the Trust continued with Amelia Fitzalan Howard, the Director of The Rayne Foundation, a related charity, plus four staff in the UK and a consultant based in Israel. The Director resigned in December 2021 and interim management arrangements were put in place to ensure the continued smooth running of the organisalion. Shan Nicholas was appointed as Interim Chief Executive and The Foundation is in the process of recruiting a pemianent Director. The interim arrangements will remain in place until a permanent Director tskes up post. Staff remuneration is agreed by the Chairman of The Rayne Foundation, The Hon Robert A Rayne. Upon any new appointments being made, remuneration would be agreed in line with other comparable roles in similar charities. Please refer lo note 24 to the financial statements for details of transactions undertaken with related parties in the year. Page 2
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2022 Policies and procedures are in place to ensure best practice, work continues with applicants and active grant recipients in Israel to ensure their responsibilities around safeguarding are understood and that necessary procedures are in place. Al policies and procedures which apply across The Rayne Charities are reviewed annually by the Rayne Foundation Trustees and updated if required. THE YEAR UNDER REVIEW Covid-19 The year under review continued to be affected by Covid-19 with periodic lockdowns and working from home. Board and Finance Committee meetings continued lo operate remotely during the course of the year. We have continued lo slay in more regular contact with grant recipients, outside the formal monitoring report cycle, to offer support and keep abreast of their needs and will continue to do so throughout 2022. The Trust has not reduced ils grant making budget and has no plans to do so. Objectives and activities The Trust's mandate, as per its goveming document, has a very wide mandate covering support for the most vulnerable in society, education and medical assistance plus much more. Within this spectrum, the Trustees focus on understanding and engaging primarily with the needs of society lo build bridges between communities and lo act as a calalysl in supporting new ideas or ways of working. The Trust works to develop and increase tolerance and understanding between communities and people of different backgrounds, to help bring people in from the margins of society and heal divisions and to bring unconnected people and organisations together to benefit society. The Trust's work is measufftd by the d4ree to which grants, and to a lesser exlenl smaller donations, can be considered lo have contributed to projects which meet the above themes. In addition, The Trust considers projects of particular interest to Trustees as well as those which have the potential for wider than just local application or are of national importance, which provide direct benefits to vulnerable or disadvantaged people and communities., which tackle neglected causes, and which strive for excellence. The Trust also Makes grants and donations in the expectation that these sums will lever further funds and encourage the involvement of other funders or organisalions. Collaboration with other funders is also important in terms of wider learning. An added benefit The Trust seeks with grant recipients, is lo introduce organisations to each other lo enhance learning, share good practice and where possible, work together. In the 2019 financial year, the largest grant was to The Old Vic Theatre of £150,000 towards the development of the adjacent building. This will substantially increase scope for community and education work as well as creating more rehearsal space. Release of the grant is conditional on raising the balance and planning permission and was therefore not included In the balance sheet. Neither of these conditions have yel been met, so again il is not included in the balance sheet for the year under review. A broad range of grants and donations were made in the UK reflecting the varied interests of Trustees. They included £30,000 lo the Vision Foundation for research into domestic abuse affecting those who are visually impaired, £20.000 to Springboard supporting young people with mental health cOnM$ who are seeking lo enter the hospitality industry, £10,000 lo the Migration Museum for an exhibition highlighting the entrepreneurial skills of migrants lo the UK and £10,000 to Lifting Limits which is supporting schools to challenge gender stereotypes and help young people develop their full polenlial. The Trust's interest in mental health Continued through grants lo Nip in the Bud and Grief Encounter, and in the arts with a number of small grants to The Almeida, Donmar Warehouse and the Royal Academy ofArts. The Trust in Israel continued to support activities which aim to strengthen relationships between Jews and Arabs or which seek lo improve mental health. The largest grant in the year was made to the Shatil programme which Page 3
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2022 is supporting Arab NGOS to develop their strategies and capacity. Other significant grants were made to Enosh developing an online support service for young people with mental health issues, Givat Haviva- training Arab community members as mediators who can resolve local conflicts, and Mahapach Taghir - supporting Arab women from Jaffa to gain higher education qualifications. A third area of interest in Israel was added in the year". supporting refugees and asylum seekers. This resulted in grants to new organisations Elifelel and Mesila for their work supporting young asylum seekers with their wellbeing and as advocates for their own needs. Shortly before the end of the year, the Trust made the first of a handful of key gonls in response to the Russian invasion of Ukraine and awarded the American Jewish Joint Distribution Committee £50,000 to support those refugees arriving in Israel. New grants and donations totalling £671,131 (2021." £1, 091, 5211 were commilled to 34 organisations in the year 113 in Israel and 21 in the UK). Details of grants of £5,000 and above are given in note 7. Grant commitments lotalling £65,000 were withdrawn during the year under review. Grants payable during the year amounted to £181,131 in the UK (2021.. £542,521) and £490,000 in Israel (2021.. £549,000). Achievements and perfomiance For those awards which are grants, rather than small donations, The Trust's work is measured by the dree to which each grant contributes lo outcomes agreed when the grant was awarded. These cover projects in Israel and the UK. Outcomes are measured in different ways which may include feedback from beneficiaries, formal tracking from statutory agencies or others and data collection. The Trustees consider outcome monitoring on a case-by-case basis and for multi-year grants lusually LJP lo three yearsl, the second or third yearfs payment will only be released upon receipt of satisfactory progress reports and audiledlindependently examined accounts. Publlc beneflt The Trustees confirm that they have complied with their duly in Section 17 of the Charities Act 2011 to have due regard lo the public benefit guidance published by the Charity Commission for England and Wales. The Trust provides PLJblic benefit through the making of grants lo registered charities and other nol-for-profit organisalions with charitable objects which contribute to the needs of UK and Israeli society. Each year. The Trust makes a careful judgement between investing in immediate calls on its funds and safeguarding the endowment to meet future needs and challenges. There are no fundraising activities with the public, or from other sources, as the endowment is used and managed lo support expenditure of grant awards and donations and can be drawn upon if needed. The Trust therefore has no fundraising activities requiring disclosure under S162A of the Charities Act 2011. The year ahead The Trust continues lo be a predominantly reactive grant maker receiving applications from projects in the UK and Israel as well as other appeals for funding. In Israel, these specifically come from sectors which support improved relations between Jews and Arabs, support of refugees and asylum seekers, and improved mental health. In the UK, appeals come from a wider range of sectors spanning social welfare to the arts and other areas which may be of interest to the Trustees. No changes in funding criteria are planned in the year ahead and the Trust will remain predominantly a reactive grant maker. FINANCIAL REVIEW Investment perfomiance and pollcy agalnst objectlves The Trust had investment income of £648,49212021. £675,521). The Trust aims to maximise the investment return, which is the principle and only income stream, lo achieve sufficient cash income lo maintain the level of grants. The value of the investment portfolio moved in the year from £31,475,286 10 £30,919,592. Trustees review expenditure on a regular basis and consider new investments and changes in allocation on a case-by- Page 4
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2022 case basis and do not invest to meet a formal social, environmental or ethical investment policy. Investments are held in George Capital Estate Fund LP in which the Chairman, The Hon. Robert A Rayne, is also an investor. The Trustees hope to maintain distributions amounting to 240/0 of the capital value of the investments, primarily from income, but also periodically from capital. The distribution in the year was 2. lo° of the average capital value of the previous entY quarters. The Trustees agreed lo hold a strong cash balance due lo the uncertainty of global markets particularly affected by Brexit, the world economy and the Covid-19 global pandemic. The Trustees continue to hold a diverse portfolio, whilst recognising that a significant percentage is held in DenNent London pl¢. No changes were made to the Trust's investment policies. Reserves policy Reserves are held in order to ensure that outstanding commitments can be met and that, if necessary, levels of spending can be adjusted in a measured way. The policy of the Trustees is lo maintain, as far as possible, the Trust's funds in order to generate investment income and to fulfil their responsibilities in supporting future projects. The Trustees have the power of discretion to convert the expendable endowed capital into unrestricted funds to support charitable activities as required. The Trustees have therefore not set a fixed level of reserves lo be maintained. The Trust holds cash balances to Manage fluctuations in cash flow and cash liquidity is reviewed quarterly by the Joint Finance & Investment Committee. The Trustees are satisfied that the Trust is in a position to Meet all its current and anticipated future commitments. The Trust had unrestricted funds at the end of the year of £1,345,658 and endowment funds of £31,936,182 12021.. unrestricted funds of £1,515,015 and endowment funds of £31, 974,207). Free reserves at the year end were £1,345,658. Rlsk management The Trustees confirm that internal control proTrdures are in place to mitigate risks as far as possible. This includes an annual budget, approved by the Trustees, and monthly financial reporting of actual against budget and other key performance indicators. Risks relating to financial perf0rrnan and therefore future distribution, due to volatility of markets, are regularly reviewed by the Joint Finance & Investment Committee IJFICI. The Trustees conclude that there are sufficient controls in place across the organisation. Processes and procedures continue to be reviewed to ensure that risks are mitigated as far as possible. The comprehensive risk register is reviewed annually by the JFIC covering the three Rayne charities. This covers a range of issues which include loss of key staff (employed by The Foundalionl, governance, fraud, and reduction in capital and operational risks. Specific examples of risk management include keeping a watching brief on market volatility and portfolio diversification to miligale loss of capital", reviewing governance and good practice from applicants before grants are awarded", maintaining up to date knowledge of policy or slatulory changeslrequiremenls in the sector and setting financial and reporting obligations for grant recipients to monitor mulli-year grants before any subsequent payment is released. Covid-19 and ils global impact affected the day-l¢>day operations of the Trust in terms of moving to remote working, assessing projects and organisations via zoom or equivalent, but grant making continued uninterrupted, alongside managing the additional funds made available. In addition lo the significant implication for millions of individuals, investment portfolios sharply fell but have since improved post year end. The Trust Page 5
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2022 holds high cash resetves, which cover all current grant commitments and operating costs and more, so no funding commitments will be cancelled for lack of funds and Trustees can draw Ljpon capital to meet the additional needs of Covid. 11 will continue lo operate as a going concern. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of The Rayne Trust for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Slandardsl and applicable law. Under company law the Trustees musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required lo.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue to operate. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitsble company's Iransaclions, disclose with reasonable accuracy at any time the fi'nancial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Insofar as each of the Trustees of the charity at the date of approval of this report is aware there is no relevant audit information linformalion needed by the charity's auditor in connection with preparing the audit report) of which the charitable company's auditor is unaware. Each Trustee has taken all of the steps that helshe should have taken as a Trustee in order lo make himselflherself aware of any relevant audit information and to establish that the charity's auditor Is aware of that information. Page 6
THE RAYNE TRUST IA company limited by guarantee) TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 MARCH 2022 AUDITOR Crowe U.K. LLP will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006. In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. This report was approved by the Board of Trustees of The Rayne Trust on 13 December 2022 and signed on its behalf bv.. The Hon. Robert A Rayne Chairman Page 7
THE RAYNE TRUST IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RAYNE TRUST Opinion We have audited the financial statements of The Rayne Trust (the 'lrusl'l for the year ended 31 March 2022 which comprise the Statement of Financial Aclivilies, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally ACpted Accounting Practi}. In our opinion the financial slalements.. give a true and fair view of the slate of the charitable company's affairs as at 31 March 2022 and of ils incoming resources and application of reSoUrs, including ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi¢e', and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial stslements in the United Kingdom, Including the Financial Reporting Council's Ethical Stsndard, 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 lo provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial slalements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable Companls ability lo continue as a going concern for a period of al least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees wth respect to going concern are described in the relevant sections of this report. Page 8
THE RAYNE TRUST IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RAYNE TRUST ICONTINUEDI other information The other information comprises the information included in the Annual Report other than the financial slalements and our Audilorfs Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial slalements does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do not express any form of assuran conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a material misstatement in the financial slalements themselves. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Report for the financial year for which the financial ststemenls are prepared is consistent with the financial slalements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitsble company and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing lo report in respect of the following matters in relation to which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the Information and explanations we require for our audit., or the Trustees were not entitled to prepare the financial statements in accordance wth the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement lo prepare a Strategic ReF)Ort. Page 9
THE RAYNE TRUST IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RAYNE TRUST ICONTINUEDI Responsibilities of Trustees As explained more fully in the Trustees, Responsibilities Slalement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is ne$sary lo enable the preparation of financial statements that are free from material misslatemenl, whether due to fraud or error. In preparing the financial slatemenls, the Trustees are responsible for assessing the charitable company's ability lo continue as a going GOnrn, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic alternative bul lo do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and lo issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslatemenl when it exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. Irregularities, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misstalemenls in respect of irregularities, including fraud. The extent lo which our prOdureS are capable of delecling irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial stalemenls. The laws and regulations we considered in this context were together with the Charities SORP IFRS1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but Complian with which might be fundamental lo the charity's ability to operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation and health and safely legislation. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, lo be within the override of controls by management. Our audit procedures to respond lo these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample lesling on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of delecling material misslalements in the financial statements or accounting records including any material misstalemenls resulting from fraud, error or non-compliance with law or regulations. However, owing lo the inherent limitations of an audit, there is an unavoidable risk that some material misslatemenls of the financial statements may not be detected even though the audit is properly planned and performed in accordance with the ISAS IUKI. No internal control structure, no matter how effective, can eliminate Page 10
THE RAYNE TRUST (A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RAYNE TRUST (CONTINUED)
the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective testing in our audit, we cannot guarantee that errors or irregularities, if present, will be detected. Accordingly, our audit should not be relied upon to disclose all such misstatements or frauds, errors or instances of non-compliance as may exist.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: ww.frc.orq.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Guy Biggin (Senior Statutory Auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor 4th Floor St James House St James Square Cheltenham GL50 3PR
19 December 2022 Date:
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THE RAYNE TRUST IA Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestricted Endowment funds funds 2022 2022 Total funds 2022 Total funds 2021 Note Income from: Investments 648.492 648.492 675,521 Total Income 648,492 648,492 675,521 Expendlture on: Raising funds.. Investment manager's fees Charitsble activities 943 805.381 31.612 32.555 805.381 23,938 884,328 Total expenditure 806,324 31,612 837,936 908,266 Net expenditure before net Ilossesllgains on investments Nel Ilossesl I gains on investments {157.8321 111,5221 131.6121 16,4131 {189.4441 117,9351 (232, 745) 462,660 Net movement in funds {169.3541 138.0251 {207.3791 229,915 Reconciliation of funds: Total funds brought forward Nel movement in funds 1,515.012 {169,3541 31,974.207 138,0251 33.489.219 {207,3791 33,259,304 229,915 Total funds carriod forward 1,345.658 31,936.182 33,281.840 33,489,219 The notes on pages 15 to 29 form part of these financial statements. Page 12
THE RAYNE TRUST IA Company Limited by Guarantee) REGISTERED NUMBER: 00607648 BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 Note Flxed assets Investments Current assets 12 30,919.592 31,475,286 Debtors Investments Cash al bank and in hand 13 3,752 1,829 2.979.629 7,088 2,243 2,937,290 14 2.985,210 2,946,621 Creditors.. amounts falling due wthin one year 15 1532,962} (742,688) Net current assets 2.452.248 2,203,933 Total assets less current Ilabllltles 33,371,840 33,679,219 Creditors.. amounts falling due after more than one year 16 190.0001 (190,000) Total net assets 33.281.840 33,489,219 Charity funds Endowment funds Unrestricted funds 18 18 31,936,182 1,345,658 31,974,207 1,515,012 Totsl funds 33,281,840 33,489,219 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject lo the small companies regime. The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. The Hon. Robert A Rayne Dale.. 13 December 2022 The notes on pages 15 to 29 form part of these financial statements. Page 13
THE RAYNE TRUST IA Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Note Cash flows from operatlng actlvltles Nel cash used in operating activities 20 11.144.326} (690,408) Cash flows from Investlng actlvltles Dividends and Interest from investments Proceeds from sale of investments Purchase of investments Transfer Itol cash held for investment 648,492 675,521 3.883.947 4,460,282 12,568,468} (1, 729,238) 1777,306> {720,673) Not cash provided by investing activitlOS 1.186,665 2,685.892 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 42.339 1.995.484 2,937,290 941,806 Cash and cash oquivalgnts at tho end of the year 21 2.979,629 2,937,290 The notes on pages 15 to 29 form part of these financial statements Page 14
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 General information The Rayne Trust was incorporated in the United Kingdom as a private company limited by guarantee Iregistered number 006076481. The Rayne Trust is also registered with the Charity Commission for England and Wales Iregislered number 2073921. Its registered address and principal office is 3 Bromley Place, London, W1T 6DB. The liability of members in the event of winding up is limited to an amount not exedIng £1 per member., the number of members as at 31 March 2022 was four. Accounting policies 2.1 Basis of preparation of financial Statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Pra¢lice applicable lo charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Charities Act 2011 and the Companies Act 2006. The Rayne Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are Initially recognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy. 2.2 Going concern The Trust has cash resources and no requirement for external funding during the year. The Trustees have a reasonable expectation that the Trust has adequate resources lo continue in operational existance for the forseeable future and there are no material uncertainties about the Trust's ability to continue. Having regard to the above, the Trustees believe il appropriate to adopt the going concem basis of accounting in preparing the financuial statements. 2.3 Income Income from investments is included in the Stslement of Financial Activitie5 only if received, or declared and receivable. Page 15
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.4 Expenditure Expenditure is accrued as soon as a liability is considered probable. Grants and donations expenditure is recognised in full when conslruclive obligation arises which results in the payment being unavoidable. Charitable activities include expenditure associated with grants and donations payable and include both the direct costs and support costs relating lo these activities. Governance costs include those incurred in the governan of the charity and its assets and are primarily associated with constitutional and slatulory requirements and are included within support costs. Support costs include ntral functions and have been allocated to activity cost categories on a basis consistent with the use of resources. All expenditure is classified under activity headings that aggregate all costs related lo the category. Irrecoverable VAT is charged against the category of expenditure for which il was incurred. 2.5 Foreign currencies Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling al the reporting date. Transactions in foreign currencies are translated into sterling al the rale ruling on the dale of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities. 2.6 Investments Listed investments are valued at market value as al the Balance sheet date. Non-listed investments are measured al historic cost and are reviewed annually for impairment. Gains or losses arising on the revaluation of investments are credited or charged lo the Statement of financial activities and are allocated to the appropriate Fund according lo the "ownership" of the underlying assets. 2.7 Debtors Other debtors and accrued income are recognised at the settlement amount due. 2.8 Cash at bank and in hand Cash is represented by cash in hand and deposits with financial institutions. Page 16
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.9 Creditors Creditors are recognised when the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due to sellle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any discounts due. 2.10 Taxation As a recognised charity, the Trust is exempt from corporation tax so far as il relates lo its charitable objects. 2.11 Financial instruments The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value. 2.12 Fund accounting The unrestricted income fund consists of funds lo be used for the purposes of the Trust's objectives al the discretion of its Trustees, and to meet overheads. The Trust's expendable endowment fund is allributable to the original amount sellled on the Trust, subsequent selllemenls and accumulated capital gains and losses thereon. The endowment is expendable al the discretion of the Trustees on expenditure which meets the charitable objectives of the Trust. Critical accounting estimates and areas of judgement Preparation of the financial statements requires management lo make judgements and estimates. The Trustees consider that there are no material judgements in applying accounting policies or key SoUrS of estimation uncertainty. Page 17
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Investment income Unrestricted funds 2022 Total funds 2022 Total funds 2021 Income from listed investments Interest receivable 648,119 373 648,119 373 669,916 5,605 648,492 648.492 675,521 Total 2021 675,521 675,521 Investment management costs Unrestricted Endowment funds funds 2022 2022 Total funds 2022 Total funds 2021 Investment management fees 31,612 32,555 23,938 Total 2021 8,542 15,396 23,938 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2022 Total funds 2022 Total funds 2021 Grant and donation funding Support costs (note 81 606,131 199,250 606.131 199,250 691,521 192,807 805,381 805,381 884,328 Total 2021 884,328 884,328 Page 18
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Grants and donations awarded during the year Name of organisatlon Adam Institute for Democracy and Peace Ayarded 1£) Equipping Desert Stais staff with Dernocratic tods for social chan Towards ensuring that all indwiduals and families ev8CU8ted frotn Ukraine due to the war who arrive in Israel for tem ora shelter will recenie Immediate aid. Towards developing and implementing a comprehensive in-house training. guidance and emotionJ support programme for Elrfdel's staff and volunteers woikn"n wrth refu ee children. Towards eHeadspace- a walk-in online clinic wrth digital support. consuttation and treatrnenl services. prOdIng online professional therapy lat homel lo L5raeli OLrth a ed 1&25 ro Towards establishing TrIEdiation and Dialogue Centres and training 25 community members as mediators to serve in each of 5 Arab municipalities lo curb violence in knb sectors. 20,000 Ameiic8n Jewish Joint DistritION Committee-lsrael 50,000 Elrfe- Gilizens for Refugee Child18n 45,000 Enosh- The Israeli Ventsl Health Esociation 60,000 GThIAT kL4VIVA 40.000 Towards the expansion of Grieftalk. 8 free. nation and confidential helpline that provide5 imtnediate rdief and support to bereaved children and young people, rents, and rofessionals. Towards Scout Troop Adam. the first. integrated. tylingu81 Arab Jewish Scout Troop offering an innovative odel for infoirnal education in cfroperation with the Israel Scouts M)vement in Beer Sheva. Towards creating a student village for 12 Jewish and ab giaduates studying 8t the Hebrew Universty in Jerusalem ro Towards the Haiti earth uake a Towards The Collective Ipreviously'Hope Hubl.. Revolutionvzing JewishlArab Partnership in Israel's Mixed Cities Throu h foEdia Towards psychosocial support programme for refugees and asylum seekers in Jerusalem IRASI- continued fundi of soci81 worker. Towards core costs. Towards the development ofJMls music therapy programme for okjer people and indwiduals liwng with disabilities. Towards the Salary of Caieei Coach to Support students with career Ch0eS and ob seekin Grief Encounter 10,000 HagarA%s(Liation'.Jewish-Arab Education for E ualrt 10,000 Hand in Hand Cenler for Jewisl Atab Education in kiael Internationa Heatth Partners UK 20,000 10,000 krael Social TV 20,000 Jerusalem African Community Center Jew15h Museum London 40.000 10,000 Jewish Musi¢ h51ilute JW3- Jewish Cornmunty Centie lor London 5.000 21,000 Page 19
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Grants and donations awarded {continued) Nama of organisation Awardèd l£} Towards the core costs of a charitywhich challenges gender steieotypirig and promotes gender equality, in and through education using a 'whole school, programme. Towards empowering 30 Arab wornen {ages 30- 601 from Jaffa through higher education. Towards empowering a group of wung asUM seekers to exercise their communib"es' rights - creating agents of change. Towards an innowative online and out of home public engagement campaign about how rnigrants hake shaped our everydaylives. Towards developing Nip In the Bud's web51te. Towards Membership renewal - donation part only. Towards ar$ 2 and 3 for empowering knb-lsraeli ciMI society. Towards Co¥Ad-19 Care. Towards gyTh participation for 14-17 yEar olds suffering from mental healthlanxety due to CoMd- 19 to improve behalOUr and mental health. Towards new approaches to suppporting soung people who are experienang, or at risk of, mental health issues into employnent. Towards 3 general donation. Towards research on Dotnesb"c Violence In the Ihsually Impaiied Community. Lifting Limits CIO 10,000 Mah8pach-Taghir 60,000 Mesila-Treatment for families ofAsOum Seekers and other u 20,QOO Migration Museurn Project Nip Inthe Bud Royal Opera House Ctsnt Garden Foundation 10,000 10,000 5,250 Shatil, The New Israel Fund Init18tive for Soci81 Change 100,000 Supporters of Laniado Hospital 5,000 The BO Clubhouse 10,000 The Springboard Charity UK Homes 4 Heroes Ltd 20,000 5,000 sion Foundation for London 30,000 Total value of other donations less than £5,000 24,881 Total donation8 in the year 671.131 Page 20
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Analysis of Support Costs 2022 2021 staff costs Staff related costs Israel manager eonsultaney Premises costs Travel and subsistence 79.741 5,622 63,637 7.530 85,743 5,008 62,148 9,905 (718) 26,232 22,395 fl 7,306) Office costs Governance costs lanalysed below) Foreign exchange Igainllloss 20,377 22,343 199.250 192,807 Governance costs 2022 2021 Professional fees Auditor's remuneration 14,357 7,986 14,565 7,830 22.343 22,395 Audltovs remuneratlon 2022 2021 Fees payable lo the Trust's auditor for the audit of the Trust's annual accounts 5.430 5,325 Fees payable lo the Trust's auditor in respect of.. Non-audil services 1,225 1,200 Page 21
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Staff costs 2022 2021 Wages and salaries Social security costs Contribution to defined contribution pension schemes 64,077 6.726 8,938 68,396 7,267 9,480 79,741 85,143 All staff, including key management personnel, are employed by the Rayne Foundation, a related charity, and the relevant staff costs as noted above are included in the recharge from the Rayne Foundation of £125,551 (2020.. £134,684) as per note 25 to these financial slalemenls. No employee received remuneration amounting to more than £60,000 in either year. 11. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits {2027 £NIL). During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 £NIL). Page 22
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 12. Fixed asset investments Quoted investments George Capital Total Cost or valuatlon At 1 April 2021 Additions Disposals Revaluations Movements in cash held as investments 30,793,536 2.570,797 13.883.947} 117,935} 775,391 681,750 31,475,286 2,570.797 13.883,9471 117,9351 775,391 At 31 March 2022 30.237,842 681.750 30,919.592 The following investments comprise more than 50/0 of the portfolio.. Market value Derwent London plc £22,638,340 13. Debtors 2022 2021 Other debtors Prepayments and accrued income 1,738 2,014 6,647 441 3,752 7,088 14. Current asset investments 2022 2021 Cash held wth Investment Manager 1,829 2,243 Page 23
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. Creditors: Amounts falling due within one year 2022 2021 Amounts owed to related charity Accruals Grants payable 125,551 21.411 386,000 133,593 19,695 589,400 532,962 142,688 16. Creditors: Amounts falling due after more than one year 2022 2021 Grants payable 90,000 190,000 Reconciliation of grants payable 2022 2021 Commitments al 1 April 2021 Grants and donations made in the year Grants and donations paid in the year Grants withdrawn in the year Year end exchange rale movement 779.400 1,535,552 671,131 1,991,521 1909,531) (1,430,367) {65.000} (400,000) (17,306) Commltments at 31 March 2022 476,000 779,400 Commitments at 31 March 2022 are payable as follows: 2022 2021 Within one year After more than one year 386,000 90.000 589,400 190,0(10 476,000 779,400 Page 24
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 17. Financial instruments 2022 2021 Financial assets Financial assets measured at fair value through income and expenditure 30.237,842 30, 793,536 Financial assets measured at fair value through income and expenditure comprise assets held as investments. Page 25
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Statement offunds statement offunds- currentyear Balance at 31 March 2022 Balance at 1 April 2021 Gainsl (Losses) Income Expenditure Unrestricted funds Unrestricted funds 1.515.012 648.492 {806.3241 {11.522} 1.345.658 Endowment funds Endowment Funds - all funds 31.974.207 131.6121 16.413} 31.936.182 Total of funds 33,489.219 648,492 {837.9361 {17,935} 33,281.840 Statement offunds- prioryear Ba18nce at 31 March 2021 Bal8nce at l Apnl 2020 Gèin (Losses) Income Expenditure Unrestricted funds Unrestricted funds 1, 742,913 675,521 {892,870) {10,552J 1,515,012 Endowmgnt funds Endowment Funds - all funds 31,516,391 (15,396) 473,212 31,974,207 Total of funds 33,259,304 675,521 (908,266) 462,660 33,489,219 The Rayne Trust holds an expendable endowment fund, which can be drawn upon either to maintain similar levels of grant making or to support Increased grant makingldonations as needed. Page 26
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 19. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted Endowment funds funds 2022 2022 Total funds 2022 Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 1,475,587 29,444,005 30.919,592 485,022 2,500,188 2,985,210 1524,9511 18,0111 {532,9621 190,0001 190.0001 Total 1,345,658 31,936,182 33,281,840 Analysis of net assets between funds - prior year Unrestricted Endowment funds funds 2021 2021 Total funds 2021 Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 1,488,246 29,987,040 37,475,286 952,911 1,993, 770 2,946,621 (736, 145) (6,543) (742,688) {190,000) {190,000) Total 7,575,012 31,974,207 33,489,219 Page 27
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 20. Reconciliation of net movement in funds to net cash flow from operating activities 2022 2021 Nel incomelexpendilure for the year las per Statement of Financial Activities) 1207,379) 229,915 Adjustments for: LossesllGainsl on investments Dividends and interest from investments Decrease in debtors 17.935 1648,492} 3,336 1309,726} (462,660) (675,521) 960,683 (742,825) IDecreasel in creditors Net cash used in operating activities 11.144.326} (690,408) 21. Analysis of cash and cash equivalents 2022 2021 Cash in hand 2.979.629 2,937,290 Total cash and cash equivalents 2.979.629 2,937,290 22. Analysis of changes in net debt Cash withdrawn At 1 April from At 31 March 2021 Cash Ilows Investments 2022 Cash al bank and in hand 2,937,290 2,243 467,582 14141 1425,243) 2,979,629 1,829 Liquid investments 2.939.533 467.168 1425.243} 2.981.458 Page 28
THE RAYNE TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 23. Grant commitments At the year end the charity continued lo hold a conditional grant commitment amounting lo £150,000 10 The Old Vic Theatre (2021.. £150,(IOOJ. This has not been recognised within grant commitments within 24. Related party transactions The Rayne Trust holds 3.02Qkn (2021.'3.020A) of shares in LMS Capital plc and 0.630/0 (2021.. 0. 69%) of shares in Derwent London plc. The Rayne Trust holds an investment of £236,257.33 (£0.49 of capital commitment and £236,256.84 of Loan commilmentsl in George Capital Real Estate Fund LLP Ilhe "Fund 1°). The commitments invested represent 2.1750/0 of the total commitments in Fund 1 (2021.. 2. 1750A). Other limited partners include The Rayne Foundation Chairman the Hon. Robert A Rayne ISQP Lldl, holding 11.250/0 of total commitments in Fund 1 (2021. 11.25YoJ. The Rayne Trust also holds an investment of £445,493.161£0.50 of capital commitment and £445,492.66 of Loan commilmentsl in George Capital Real Estate Fund 2 LLP (the "Fund 2,1. The commitments invested represent 2.020/0 of the total commitments in Fund 2 (2021.. 2.020/&J. Other limited partners include The Rayne Foundation Chairman, The Hon. Robert A Rayne ISQP Ltd), holding 7.190/0 lolal commitments in Fund 2 (2021.. 7. 19YoJ. No other partners included in Fund 1 and 2 have any connections with The Rayne Trust. Lady Jane Rayne, The Hon. Robert A Rayne and Natasha Rayne also serve as Trustees of The Rayne Foundation ITRFI, a company limited by guarantee and a registered charity. During the year The Rayne Foundation {TRFI recharged expenses lo TRT lotalling £125,551 (2021.. £134,684). Al the year end the balance within TRF debtors due from TRT is £125,551 (2021. £133,593). Damian Rayne is a Trustee of The Mark Elle Dance Foundation, a registered charity. During the year donation of £Nil was made to this charity (2021.. £5,000). Page 29