Charity number: 212688 THE COAL TRADE BENEVOLENT ASSOCIATION TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 THE COAL TRADE BENEVOLENT ASSOCIATION CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Advlsers Trusteas. Report Independent Auditors. Report on the Flnancial Statements 10-13 Statement of Financial Actlvities 14 Balance Sheet 15 Notes to the Financial Statern8nts 18-31 THE COAL TRADE BENEVOLENT ASSOCIATION REFERENGE AND ADMINISTRATPIE DETAILS OF THE GHARrrY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees T J Allchurch W Brooks (appointed 1 January 2020) J M Collin5 {appointed 15 September 2020} P E Garner J M Heoinbolham E M Lockley {resigned 15 September 20201 C Rlx (resigned 31 December 2D20) M Way (appointed 1 January 2021) Charty registered number 212688 Prfnclpal office 6 Bridgewharf 156 Caledonian Road London N1 guu Secretary D mo￿oW Independent audÈtors G￿dMan Jones LLP Statutory Auditors 29130 fitzroy Square London W1T 6LQ Bankers Nalwest Bank PLC 39 The Borough Farnham Surrey Gug 7NP Financial Advisor & Fund Manager J Peltil Ralhbones Investment Management 8 Finsbury Circus London EC2M 7AZ Page 1 THE COAL TRADE BENF4lOLENT ASSOCIATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their annual reEx)rt and finan¢ial statements of the Charity for the year ended 31st December 2020. The financtal statements have been p￿pared in accordan￿ wth the accounlillg policies s2t out in notes to the accounts and comply wlh the Charivs Rules. the Charities Act 2011 and Accounting and Reporting by Charities Statetnent of Re¢ommended Practice applicable to charities pre￿rIng Iheir accounts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16th July 2014. OUR PATRON As this report was being prepared. we joined the nation in mourning the passing of our Patron. His Royal Highness, The Prince Philip, Duke of Edinburgh KG at the age of 99 years. His Royal Highness graced our Association with hi5 patronage for over 40 years, which included honouring us in the role of President three limes, in 1976. 1988. and most re￿ntlY in marking our 125th Anniversary in 2D13. His involvement with the ASSO￿at10n was a treasured thing and never taken for granted, as it helped us so much in profiling the CTBA'S work to our sUp￿rterS. Our condolenrE5 were senl b Buckingham Palace. OBJECTIVES AND ACTMTIES FOR THE PUBLIC BENEFtT The Association is established for charitable purwses. The objective5 of the Charity - the provision of reli2f for our less fortunaie colleagues contlnues lo be our prime aim. The Trustees Ix)nfirm that they have referred lo the Ch8rity Commission's guidance on pubfic bonefit when reviewng the aims 2nd objectives of the Charity, in planning future activities. and settlng the grant maknng txjlicy for the year. The Trustees can invest any capital or income not required for Ihe charitable purpose5 of the Association. There have been no changes in the policies adDPted to achieve the Asscciation's objectives. PRESIDENT The Trustees record their thanks and appreciation to The RLHon. the Lord Kennedy of Southwarf<. President of the Associabon for 2020 and we are greauy appreciative of his support for our charity. In this most challenging of years, we We￿ unable to wetcome him as our guest at the Associalion's Festival Dinner or our other events. Given these unfortunate circumslances the Tnjslees offered Lord Kennedy the option to continue in his role for the following year. We were very grateful for his 3￿p1a￿C TRUSTEES The Trustees of the knocietion administer the Charity. Four Trustees are etecled by the membership and they are joined by the Chairman ef the Board of Directors 2nd the Immediate Past Chairman. In 2020 the Trustees were: Mrs &izabeth Lockley (elected 2003 and retiring 2020). Mrs Jane Heginbotham (elected 20081, Mr Tom AIIGhurch (elected 2a15), Mr Philip Gamer (elected 2018). Dr Clive Rix (Chairman 20191. Mrs Wilma Brooks {Chaimian 2D20}, and Mr John Collins {elected 2020). Mrs Lockley stood down at our Annual General Meeting in September 21)20. Her assoclatlon with the CTBA spans five decade& From her firsl involvement twinning in 1973. organising a fundraising eveningi Mrs Lockley began visiting local beneficiaries as the Branch Secretary in the old North Staffordshire branch in the tate 1980s. Following her appointment to the Board of Directors in 1992 she was the first women to be elected as National Chaimian in 1999. Serving as a Trustee since 2003. she became our Senior Trustee in 2015. Under her latter stewardship, Mrs Lockley guided the CTBA'S work wth great care and dedi(xtion. On behalf of the Association the Trustees wish to place on record their great appreciation and thanks to Mrs Lockley for her guidan￿ and counsel and look forward to welcoming her back as a guest at future CTBA events. Mr Allchurch was appointed by other members as the Board's SenKJr Truste Following election. the Trustees wdcomed its newest colleague to the Board at the Annual General Meeting, Mr John Coifins. Mr Collins continues lo work in the coal trade wth a career spanning over 55 years. He joined the CTBA in Ihe mid-1980s. wsiting benefi¢iaries and helping to organise fvndraising events in his North Wesl & North Wales Brancn. He was appoinled the Joint branch 8ecteEary within the BranGh in 2002 and Gonlinues his involvernenl at Branch level to the current day. Mr Collins brings a wealth of experience to the Board. who loo forward to welcoming him as he joins them. Page 2 THE COAL TRADE BENEVOLENT ASSOCIATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER2020 The responsibilities of the TTUStees are set oui in Ihe Association's Rules and defined as to power$ 2nd duties by the Trustees Act of 2000. The new Trustees are appT5sed of their responsibilities by the Senior Trustee. Secrètary, and provision t)f rdevant Charity Commission literature and guidance notes. CHAIRMAN AND DIRECTORS The Board of Directors of the Assoctatton. whose functions and responsibiKties are sel out in the Rules of the A55DGialion, elected as their Chaiman for 2020 Mrs Wdma Br￿ks. The Directors appointed Mr Mervyn Way as Deputy Chairman. In accordance with the Rules of the AS￿￿lali0n, the followng Directors CDmpleted th￿r Ihree-year term of office al the Annual General Meeting on 15th septeM￿r 2020.. Mr D Chubb. Mr P Grabowski, and Mr R Rose. All offered themselves for re-election and were elected lor a further three-year term of office. In additton. Mr P Lees of the Eastem Counties bF3nch w35 nomtnated and app￿1￿1 a5 a new Director. THE COVID-19 PANDEMIC 11 is USU￿ wlh our Trustees. Annual Reports that we reflect upon the organisation's performance over the past months and consider how our activities have benefited those we are working to support. However. 2020 shall be remembere(I principally. and for many years to come. as being defined by the terrible global pandemic which has tragically claimed the lives (at the lime of this report) of almost 130.000 people in the United Kingdom and many millions across the world. In common with every area of life, our staff, trustees. off￿erS and volunteers quickly adapted to new ways ot working as the year progressed. Technology wa5 heavily replied upon and with staff working from home, business meetings were conducled almost solely ty video conferencing. Branch and Natlonal GTBA even15 faced cancellation in Ihe eaty month5, and it became clear very quickly that no such public faclng aclivlty would be possible for the remainder of the year. Thè National offi￿ assessed the risk5 and Instructed its volunteer Case Visttors to remain in Gonlsct with our eneficiaries during the period- most of whom would fall into the highest risk Gategories for ¢ontr8cling the most severe Covld symptoms - bul that such contact musl onfy be done by phone and never in person. Whilst far from ide?1. il was vital that beneficiaries felt the Association ￿Mained a friend and an available resourts they could continue to rely on if needed. We know that lonefiness and isolation is not an uncommon experience for many of those that CTBA supports in times of normality. and further of this social connection could only be exacerbated during the periods of lockdown and the 'shielding' that numbers of our benefiaaries were advised to adhere to. The Trustees fell that such extraordinary tim￿ merited a special support award. All beneficiaries received an addition81 payment of £50 per person in the earfy months lo cover adrfitional cos15 assOCI?ted with lockdown such as needing to shop locally Father than the supermarket or paying for taxis or other 5ervice5 they would usually be able to manage by themselves or expensively. Wtth the vaccine being rolled out at the end of 2020 and its continued uptake since. we must look forward with hope to brighter times returning. THOSE WE LOST DURING THEYEAR We were extremety saddened to leam of the deaths ot several dedicated and long-standing servants of the Associalion during the year. We leamed of the passing of Director Mr Malcolm Williams on 22nd April 2020. aged 67. Ma1￿)Im was a coal merchant of over 40 years and supported the CTBA over rnally year5 at different functK)ns not only in his native East Midlands but at WdriOUS Branch functiDfis as well a5 Ihe Festival dlnner. We were informed that our former National Chairrnan {2CM11> and WI￿ President Mr Grdham Smilh pa558d away died on 30th August, having onty leamed of the death of hi5 wfe DDrothy several weeks earlier. Dorolhy was a long-term setvanl for the CTBA setving as Branch SeGtetary for the Yorkshire region for many years. HONOFiARY OFFICERS AND STAFF The Trustees gratefully aGknowledge and record their appreciation of the support of the Honorary Chaplain, Reverend Jonathan Brewster, Canon Treasurer of St Paul's Cathedral. The Trustees also record their thanks to the Honorary Legal Advtser, Mr Nigel Penzer, for his help and advire throughDUt the year. Our Honorary Auditor5, Mr Julian Fairweather and Mr Mark Waltets, were both re-appointed al the AGM. While they were unable lo visit Ihe National Office during this year to scrutinise operdbons, we ate very grateful they will continue to offer their lime providing reports to the Tnjslees going forward. Page 3 THE COAL TRADE BENEVOLENT ASSOCIATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOuNTA￿rS AND AUDITORS The Truslees record their thanks to Goodman Jones, the CT&I accountants, for the thorough and efficient manner in whlch they rArried out Ihe audit of the Asswation's affairs. Goodman Jones offer themselves for reappointment at the Annual General Meeting. GOVERNANCE The Gharity was founded In 1888 and established in lis current fom in 1896. The Tnjstees, Directors and Members agreed the Rules of the As50uation. which were formally adopled in January 1897, and incorporate the objects of the Charity- Ruies 8 and 13 of the Association were amended at a Special General Meeting held on 7th December 2009. The Registered Charity number is 21268B. The Trustees of the Association administer the Chartty- There is a Board of Directors of the Association, whose functions and responsibiliknes are set oui in the Rule5 of the Association. There are bNo members of staff, the National Secretary and Assistant National Secretary, based at the National Office, Brtdge Wh8rf in London. In addition. the Charity has Branches and individuals throughout the UK who visit applicants and beneficiaries and put a personal profile on the continuing support by the Asswation. ACHIEVEMENTS AND PERFORMANCE We contillue lo receive requests for assistancE from the coal trade and directly from individuals. The Associalton also re￿]Ve$ requests for help from other charitable organisations on behalf of potential beneficiaries who have previousty been employed in the coal industry. We make efforts to identify new beneficiaries at local and national levels who may benefit from our supwrt and assistance. Various artides and adverbsemenls have appeared in the coal Erade magailne 'CoalmerchanV and we record our gratitude to the magazine sponsors CPL and the editor Mrs Wllma Brooks for their supporL During 2020 the Trustees con5idEred and approved 11 new applications from people who went on to become new beneficiaries of the Association. Throughoui the year. a totsl 01246 beneficiaries re￿iVed financial support from the Association. Sadly 22 of those died during the year. The National Secretary condu¢ted a review of historic awards made to berbeficpries in recent years. Where those had been 'one-off payments and the Association had no further contact with the beneficiary, Ihe record5 were removed from the system. We have cover throughout most area5 of the United lfjngdom. Our Branch Secretaries and Case Visitors maintained contact with our benèficiaries by lelephone and e-mail, in the absence ol personal visits, throughout the year. We received reports and recommendations on changed beneficiary circumstances or suggested one- off specific granls and these were Sympatheti￿1￿ considered. The National Secretary reports changes and recommendations to Tnjslees. which enables us to review and respond quickty to new requests far asslstance and deal with them in the shortest possible time. Mosl requests for grant aSsIstan￿ are proce55ed within three week5 or less a timespan that ￿flects favourabty wthin grant-making Charitabk organisatioNs. The main assistance Ihat we provide is through the payment of weekly grants: fuel payments. help with telephone costs. televisions. and of course birthday, Chrtsbnas cheques. and shopping vouchers. The provision of help with the purchase of capital items such as stair lifts. speeial bathrooms, washing machine5. carpels, and other miscellaneous items is becoming more prevalent and these are now regular features in the overall grants programme. Following the BBC'S review ?nd subsequent decisiort to scrap the can￿SsiOnary licence scheme for the over- 75s, the CTBA Stepped in and will now offer to cover the cost of the licenTr for those beneficiaries that would have qualiffed for a free licence previously. The backbone of our Su￿SSful operation is down to the dedicated group of individuals who operate our Branches throughout the county. Most of our Branch Secretaries and Case Visitors worked in or have background experience in the coal industy which is m05t helpful when new applications are being reviewed. The Trustees record their gratitude lo the Branch Secretaries, their reglonal committees, and Case Wisitors who work so tirelessly to ensure Ihat regular contact is maintained with our beneffci8rtes. We are indeed fortunate and very orateful for the ongoing supwrt we receive from the coal trade in ils broadest sense. In Essex, CTBA Supporters were ftjrlunate lo be the only a￿3 of the country able to hold a fund-raising event with their annual Golf Day. taking pLa￿ in the late summer. As ever. we are very gratefvl. Page 4 THE COAL TRADE BENEVOLENT ASSOCIATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECENBER 2020 The National Secretary communitxtes information and guidance notes on s13tutory benefft5 and other grants lo the Branches. The primary function of Ihe Ass(Kiation is to gNe assistan￿ to our benefiGiarie5 by way of financial supporL During the year, direct disbursements to beneficiaries totalled just over £180,000. Case Visitors are advised about their obligations and responsibilities when dealing with beneficiaries in order to protect both parbos. Our commttment lo best practice is underpinned ty good governance ovprsight and the application of the CTBA'S policies, procedures and guidance throughout the Associalion, continuing to operate both efficiently and effectively. Case Visitors are aware that the basis of our assistance is principally through financial support and the Association is not a Ca￿ provider: no personal assistance is provided to beneficiaries. However, our Case Visitors may often prowde information and guidance lo benefi￿arieS on various graAls thal may be available, advocate on their behalf or get them referred to other organisations who may be able to offer the help and support required to provide for a beneficia￿S requiremen15. be that regarding income or generai lèvels of comfort and mobility- We aTr very grateful to our Case Visttors whts so willingly gNe their time 8nd visit our existing beneficiaries thereby keeping the cost of vrsits to a minimum. With new and potential beneficiaries our l(tsl network of Case Visitors makes an appoinlment and In confidence discuss the indiiriduals, (arGumsknces and promde the information to Bridge Wharf. Th2 TnJ5tees con51der the reports. reviews and recommendations. and these are sympathetically considered. We shall continue to work wllh other ¢haril3ble organisations whith make referrals to us and where appropriate offer those indNiduals fin3nGial suppotL During the year. the Trustees reviewed the levels of the weekty grant to reGipients and agreed to increase the minimum level of from £15 10 £20 per week The inGrease was introduced in the December 2020 half-yearly paymenL The relatlonshlp with the Universities of Leeds and Sheffiebj conbnued Ihrough our Edu¢alion and Training bursary fund supporting a student at each inslrtulion. Wth the redesign and launch of the CTBA'S website in September, applications for an educatton or training bursary can also be made direcuy lo the National Office from an onltne fumi. For the year lo come it Is our intention to continue monitoring the needs of our existing beneficiaries and identify possiblB new benefictaries, through outreach with other agencE5 across Ihe country. Initial inroads have been made with Age Scodand for publicising the as￿StanCe provided by the CTB& however further work was paused as a result of the pandemic. The Trustees review our sctial and financial performance against our prime objectives- the provision of relief for our former colleagues and ensuring that we have the financial resoltrces necessary to fulfil Ihis objective. In order to ensure optimum portfolio perfomwnce, we hold regular meetings with Ralhbone Investment Management and efforts made to ma￿Mise fund raising activities through both local and national events. The N?tional Office and the Branthes work ciosely together. and this high degree of co-operation and mutual support ensures that beneficiarie5 receive fitst dass support on a k)cal and national basis. We shall continue to liaise with Branches and where appropriate offer guidance support to back up the excellent work they do on behaif of the AssociatiorL RISK MANAGEIVIENT The Association D￿rateS within a fairly ejosely defined field of activities, few of which gNe rise to any signtficant rlsk apart from financial risk. Rathbone Investrnent M8n8gemen¢ an indepeftdent globai asset management btJ5ine55, provides management of the Association's portfolio on a di5uetionary basi5. The Trustees consider the greatest risk lo be the perfomiance of the investment portfolio which, during the last year, has been subject to a re-evaluation of objectives and strategy and should provide even better retums. Following a strategic review in 2018, the Trustees put into place 2 formal mechanism whereby they conduct a revtew of the Fxjrtfollo tnanagerfs own performance. among other business operations, over a fivewyear cycl& Page 5 THE COAL TRADE BENEVOLENT ASSOCIATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees rewgnise that the wjrk of the Assoc(ation ￿ undefpinned by Ihe Branch organisation and Case Visitors who WOTk on a voluntary basis ￿lch is 50 wlal in maintaining contact with our beneficiarie5. Despite some changes al local level, Branches have expressed cautious optimism in their ability to conknnue deiNering an efficient and first-class servtce on beha￿ of the A55wi*w)n. As a result of an episode reF¥Jrted to the National Office that triggered our safegu2rding procedu￿. a full inve5tigalion was carried out and Ihe relative authoritTres notified prompuy. While the matter was ullimatety concluded with the assurdnce there had been no substance to the report. Ihe Trustees carried out a review of its safeguarding policy and the National Secretary issued additional guidan￿ and instruction lu its Brar¢ch Secretaries and volunteer Case Visitors. Lil(ew5e. the Charity is satisfied that other major risks have been Identified and mitigated. Thèy remain fulty committed to Klentifying and assessing risks and taking appropriate action to prevent or minimise their impact on service delivery. FINANCIAL REVIEW Following a presentation to the Trustees in April 2017. the dectsion was taken io transfer the management of the Investrnent portfolio lo Rathbones. The trar￿r of assels vrds completed in June 2017. The Association's main source of funds remains Ihe investment portfolio. the objective of a balance beiween income generation and maintsining the real value of the portfolio. The assels are invested in a segregated portfolio containing fixed income securthe5, UK and ovetseas equities and altemative a55ets. The performance of the portfolio is monitored against a comp)site benchmark composed of 15% UK Government bonds, gQA UK corporate bonds, 48% UK equitles. 18% overseas equities, 6Yo Alternatives and 4WD cash. The longer-term benchmarf( is the RetaJt Price Index +3.5% per annum over the longer term. After a very challenging start to 2020 as a result of the global impact of COMD-19. the purtFolio generated a total return of +4.4UA for the 12-month period to 31st December 2020. compared to the composite benchmark's +0.5%. The estimated annual Y￿Id from the portfolio was 3.1% at year end. The final market index results for 2020 betray the huge rollercoa5ter-of-a-ride suffered by inve5trnent markets. At the start of 2020, we withessed a huge peak-to-trough fall in equity markets. along with a correspondingly sharp rise of government bond markets. Th2 economic contractions seen in many countries as a resull of the pandemic were the worst for many d￿￿des. and in olhers (including the UK) the worst for centuries. The lockdowns that occurred all over the worfd contracted Ihe global economy by cftra 4.5% in 2020. However, deep and prolonged recession ha5 so far been avoided by swsft central bank action. The speed. scale and scope of the pollcy response is important because the greatest historic failures to recover from a major shock- such as the US in the 1920s or Japan in the 1990s - are characterised by their absence. The authoritie5 were willing to nderwrite the recovery and are ff ady to do more if necessary. Economtc activity should therefore bounce back more quid