REGISTERED CHARifYNUMBER: 218573 REPORTOFTHETRusfEESAND FINANCIALsfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FOR TOMSON'S CHARITY
TOMSON'S CHARITY CONTENTS OFTHE FINANCIALSTATEMES FOR THEYEAR ENDED31 DECEMBER 2021 Page RertOftheTrnStee$ Ito4 Rertof the IndependentAuditors 5t06 statement of FinancialActivities Balancesheet Notesto the Financial Statements 9t012
TOMSON'S CHARITY REPORTTOTHETRUSfEES FOR THE YEAR ENDED 31 DECEMBER 2021 The trustee5 present their report with the financi31 statements of the charity for the year ended 31 Decernber 2021. The trust have adopted the provision5 of Accounting and Rewjrting by Charities-. Statement of Recommended Practice applic2bletocharities preparingtheiraccounts in accordancewiththe Financial Reportingstandard applicable in the UK and Republicof Ireland IFRS 1021 (effective l January 20151. OBJECTIVESANDACTIVITIES Objertives and aimsof the¢harity Thecharityis established to maintain choral stholar5hips atthe Cathedral School inthe Cityof Hereford for boys resident in the Di0e0f Hereford. The Charity aims to fulfil its object set out above by sound investment management to maximise income concomitant with preservation of c3pit31. to provide financi31 support for the cathedral choristers at Hereford Cathedral School. The rnain objective for the year isto rnaximise incometo provide maxlmum support forchoristers. Significantactivities Therewere no newsignificant activFties during theyearended 31 Decernber 202L Public benefit The trLJStees confirrn th3t they have referred to the guid3nce contained in the Charity Comrni55ion's general guidan on public benefitwhen reviewingthe Charity's aims and objectives and sndeterrnining thegrant rnzking policyforthe year. Grantmakin8 All grant making is in accordanWIth the provisionsofthecharity Commi5sionSchemeSealed 1st December 1977. ACHIEVEMENT AND PERFORMANCE Reviewof progre5sand achievement The charitable activity remains, as set out in the scheme, the provision of money for the estsblishment and rn2intenance of choral scholarships atthe CathedralSchool.Thecostof theseschol3rships is a rn3jorpartof thec05tof thecathedral'schoral Foundation and it 15 unlikelythat, wthout the aid of T0rn50n's Charity, the Chapterof Hereford Cathedral would be able to raise sufficient moneyto maintsin thechoir at its presentstren8t Material Investments The Charity draws its incomefrom investments. Intome has been made over to the Chapter of Hereford Cathedral to meet the cost of educating choristers and scholarships totalling £66,36012020.- E64,(ml duringthe year. Given the rising cost of the choral scholarships, the entire annual income of this Charity T5 insufficient to meet the shortfall betr4een the costs of choral scholarships of £151,71012020= £150,358) and the income generated for this purpose in their own right by the Chapter of Hereford Cathedral. There is unlikelyto be any furthersurplus incomeforthe Charity in thefvture. FINANCIAL REVIEW Investment Powers Thetrustees have wide powers of investment Investment policyandoblertives The trustees have considered the most 2ppropri3te policy for invting funds and consider that a mix of primarily UK and overseas equities complimented byfixed intere5tand altemative holdings meettheirreqLJirements to generate both incorne and capit31 growth. To reflect more accurately the nature of the charity the trustees have decided to split the fijnds between the original endowment and the net income available after char8ing d)arity governance cost. Thi5 net incorne is reco8nised 25 unrestricted funds and is distributed tocoverpart of the annual cost of the Cathedral choral scholarship% Page 1
TOMSON'S CHARITY REPORTTOTHETRUSTEESlcontinuedl FOR THEYEAR ENDED 31 DECEMBER2021 Reserves policy The 8re3ter part of the charity's assets is represented by its endowment. These funds are held as InVe5trnen The cost of man3ging investments 2021 £8,719,.12020 £5.6941 is charged against the endowrnent fund. Inve5trnent5 generated a net gain of £260,307 in 202112020 net 8ain of £17.(X)51.Total endowment net a55ets at the year-end amounted to£l.952,994 12020.. £1,733,974). Incorne from itments is released to the unrestricted fund based on a 4% return of the market valuation of investments at 30th June of the 3 previous years. This income is applied as a grant to Chapter to help cover the cost of the choral scholarships. The dividend income generated by the investrnent5 in 2021 was £33,79212020 £37,265). The result for the year showsadecrease in unrestricted net incomeof£3,77912020.' decreaseof £781. Itis thepolicyof thetrustees tomaintain a small unrestricted fund to meet day-to-daycosts. This stsnd53t£4,766 at 31 December 202112020.-£8.0871. Rlsk revlew and Mana8ement The main risk affectingthe charity is txjorperforrnanceof rnve5trnents VIng lower income returns.This is mitigated through good management of thefunds as highlighted above.The trustees keepthis under review at all times. FUTURE PLANS Toeontinueto maximise income without jeopardi5ingthecapital basebyconstant reviewof inve5trnent Performan forthe better provision of choral scholarships. STRucfuRE, GOVERNANCEAND MANAGEMENT Governingdocument Charity Commission Scheme Sealed l December 1977. Recruitment and appointrnentof newtrustees The Charity Commission Scheme providesfor the Chapter of Hereford Cathedral to bethetrustee& Organlsational structure The clerk to the tru5tee5 oversees the day-to-day operation of the Charity in accordance with the accounting instruction5 that have been adopted by the trustees. Administrative and financial duties are carried out by the trustees or delegated as appropriate. Indurtion and trainingof newtrustees New members of Chapter are briefed on their dutie5 as trustees as appropriate and attend courses covering the respon5ibilitie5 of thetrustees. Related parties Related parties transactions aresetout in the notes tothe accoun Page 2
TOMSON'S CHARITY REPORTTOTHETRUSTEESlcontinuedl FOR THEYEAR ENDED31 DECEMBER2021 REFERENCEANDADMINlStRATIVE DAlL5 Registered Charity number 218573 Prlntipal address 5 College Cloisters The Close Hereford Herefordshire HR12NG Trustee5 The Trustee of the Charity who h35 day to day management reswjnsibility ts The Chapter of Hereford Cathedral. whose rnembers at 31 Dernber 2021 are listed below. The Very Revd Michael Tavinor IDe3n of Hereford) The Very Revd Sarah Brown (Dean of Hereford) The Revd Canon Andrew Piper The Revd Canon Chris Pullin Canon Barbara Gratton Canon Duncan Jones Canon Barry Forrester OBE Canon Nicholas Harvey (Resigned 28th Febru3ry20211 (Appointed 2roctober 2021 IR&igned 28th Marth 20211 (Resigned 28th March 20211 Audltors Haysmacintyre LLP 10 Queen Street Pla London EC4R IAG Page 3
TOM50N'S CHARITY REPORTTOTHETRUSfEES FOR THE YEAR ENDED 31 DECEMBER2021 REFERENCE ANDADMINISTRATIVE DAlLs Charity Nzrne Richard Lane OtheMseTomson Charltyworklng Name ' Tomson's Charity ClerktotheTrustees: Christopher Milton Banker5 LloydsTBS plc 8 HighTown Hereford HR12AE InvestmentAthiisers Rathbone Investment Managernent Ltd 8 Finsburycircus London EC2M 7AZ STATEMENTOFTRUSTEES RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financi315tatements in accordance with applicable law and United Kingdorn Accountingstandards Iunited Kingdorn GenerallyAcceptedAccounting Practice). The law applicable to charities in England and Wales, the Charities Att 2011, Charity (Accounts and Reptsrtsl Regulations 2008 2nd the provisions of thetrust deed requires thetrustees to preparef1nancial statements for each financial yearwhich give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources. including the income and expenditu, of the charityfor that period. In preparing those financial statements, the trustees are required to select suitable accountin8 fM)licies and then applythem consistently, Obseethe methods and principles in the Charity SORP., make judgement5 and estimates thatare reasonable and pnjdent., prepare thefinancial staternents on thegoingconcern basis unless it is inappropriate to pre5umethatthe charitywill continue in business. The tru5tee5 are responsiblefor keeping properaccounting record5which disclose with reasonable accuracy at anytimethe financial position of the charity and to enable them to ensure that the financial staternent5 comply wth the Charities Act 2011, the Charity IAccounts and Reportsl Regulation5 2008 and the provisions of the trust deed. They are 3150 responsible forsafeguardingthe assetsof thecharityand heneefortakingre350nable 5tepsforthepreventTon anddetection of fraud and other irregularities. Approved by order of the board of trusteeson 31" May 2022 and signed on its behalf by. Thevery Revd Sarah Brown- On behalfofthe Trustees Page 4
REPORT OFTHE INDEPENDENT AUDITORSTOTHETRusfEES OFTOMSON'SCHARITY Oplnlon We have audited the financi31 statements of T0rn50ns Charity (Dthetwise Richard Lane) for the year ended 31 December 2021 which comprise theststement of fsr13nC131 activities, the balance sheet and notes to thefinancial statements, includin8 a summary of significant accounting policies. Thefinancial reportingframework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Fin3nci31 Reporting Standard 102 The Financial Rew)rtingStandard applicable in the UK and Republicof Ireland Iunited Kingdom Generally Accepted Accounting Practice). In ouropinion.thefin3ncial 5t3tements.. give a true and fair view of the state of thechariws affairs asat 31 December2021 and of the chariws net movement in funds for theyearthen ended- have been properly prepared in aCcordanWIth United Kingdom Gener311yAccepted Accounting Prattice; and have been prepared in accordancewith the requirements of the Charities Act2011. Basis foropinÈon We have been appointed as auditor under section 144 of the Charities Att 2011 and port in accordance with the Act and relevant regu12tions rnade or having effect thereunder. We conducted our akjdit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our reswnsibilities under those standards 3re fLJrther described in the Auditor'5 re5pon5ibilitie5forthe auditof thefinancial statementssection of our reportwe are independent of thecharity in accordance with the ethical requirements that are relevant to OLJf audit of the financial statements in the Ulq includingthe FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We beSievethatthe 3udit evidencewe haveobtained is sufficient and appropriate to provide a ba515for our opinion. Conclusions relatingtogoingconcem In auditin8 the financial statements, we have concluded that the trustees, use of thegoingconcern ba5150f accounting in the preparation of thefinancial statements is appropriate. Based on theworkwehave performed,wehave not identifiedanymaterial uncertaintie5 relatTngtoeventsorconditionsthaL individually or collectively, may cast significant doubt on the charity'5 abilityto continue a5 3 going concern fora period of 3t leasttwelve months frorn when thefinancial ststements are authorised for issu& Our responsibilities and the reswnsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The trustees are responsible tor the other information. The other information comprises the information included in the Trustees, Annual Report. Our opinion on the financial statements doe5 not cover the other information and. except to the extentotherwi5e explicitlystated in our report, we do not expre55 3nyforrn of assurance conclusion thereon. In connection with our audit of the financial st3tements, our responsibility is to read the other information and, in doing so, consider whether the other inforrnation is materially incOlstent with the financial staternents or our knowledge obtained intheauditorotherwiseappe3rsto bemateriallymi55tated. If we identifysuch materi31 incon51Stencies or apparent tnaterial misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstaternentof theotherinfomiation. If,based ontheworkwe have performed,weconcludethatthere isamaterial misstaternentof this other inforrn3tion.we are required to reportthat fact. We have nothingto report in this regard. Matterson which we are required to report byexception We have nothing to report in rpect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2(X)8 require usto reportto you if. in ouropinion= adequate accounting record5 have not been kept bythe charity. or sufficient aCconting records have not been kept- or the charityfinancial stètements are not in agreement with theaccounting records and returns; or we have not received all the information and explanations we requirefor our audiL ReSnsibIlItieS of trusteestorthe financial statements explained more fully in the trustees, rpol1b1Iities statement set out on page 4, the trustees are responsible for the preparation of thefinancial statements and for beingsatisfied that theygive atrueand fairview.and forsuch internal control 35 the trustees determine 15 nece55ary to enable the preparation of financial statements that are free from material misststemen¢whetherdue to fraud orerror. Page 5
REPORT OFTHE INDEPENDENT AUDITORSTOTHETRUSTEESOFTOMSON'SCHARITYICONTINUEDI In preparing the financial staternents, the trustees are responsible for assessing the charitys ability to continue * a going concern, disclosing, as applicable, matters related to going concern and using the going concern basi5 of accounting unless thetrugtees either intend to liquidate the charity ortocease operations, or have no realisticalternative but to doso. Auditor's responsibiltties forthe zuditof the financial statements Our objective5 are to obtain reasonable assurance about whether thefinancial Statements as a ¥vhole arefreefrom material misstaternent. whetherduetofraud orerror,and to issuean auditor's reportthat includesouropinion. Re2sonable3ssurance is a high level of assurance, but is not a guarantee that an audit condurted in accordance with ISAS (UK) will alw3y5 detect a material mi5Statementwhen itexists. Misstatements can arisefrom fraud orerror and areconsidered material if. individually or in the aggregate. they could reasonably be exrEded to Influen the economic decisions of users taken on the basis of these financial ststements. Irregularities, includingfraud, are instances of non-compliance with laws and regulations.we design procedure5 in line with our responsibilitie5, Outlined above, to detett material misstatements in respectof irregularitie5, includingfraud. The extent towhich our procedures are capableof detectingirregularitie5. includingfraud is detailed below. Based on our understanding of the charity and the environment in which it operates, we identified thatthe principal risks of non-compliance with law5 and regulations related to registered charities, and we considered the extent to which non- compliance rnight have a materialeffect onthefinancial statements.Wealsoconsidered thoselawsand regu13tionsthat have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and other factors such as taxation. We evaluated management's incentives and oprtunItieS forfraudulent manipulation of thefinancial statements (including the risk of override of controls), and detemined that the principal risks were lated to manual accounting journals. Audit procedure5 performed bythe engagement team included.. Discussions with management including consideration of known orsuspected instances of non-compliance with laws and regulation 2nd fraud., Evaluating managetnent's controls designed to prevent and detect irregularities; and Identifying and testingjournals, in particular journal entries posted with unusual account cornbinations, postings by unusual users orwith unusual descriptions. A further description of our responsibilities for the 2udit of the financial statements is located on the Financial ReF¥)rting Council's website at.. .frc.or au ito .This description forms part of our auditor's report. Useof our report Thi5 report is rnade solely to the charitys trustees. as a body, in accordan wth section 144 of the Charities Act 2011 and regulations rnade undersection 154of that Act. Our audit work has been undertaken so thatwe might state to the charity's trustees those matter5weare required to stateto them in an Auditor's port and for noother purpose.To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity's trustees a5 a body for our audit work, for this reFort orfor the opinionswe haveforrned. Haysmacintyre LLP StatutoryAuditor5 Date.. 01 lune 2022 10 Queen Street Pla London EC4R IAG Haysmacintyre is eligibleto act as an auditor in temis of section 1212of the Companies Act2CK)6 Page O
TOMSON'SCHARITY STATEMENTOF FINANCIALACTIVITIES FOR THEYEAR ENDED 31 DECEMBER 2021 Unrestrrcted Funds Endowment Funds Total Funds 2021 Total Funds 2020 INCOMEAND ENDOWMEMfs FROM Investment income 33,792 33,792 37.265 EXPENDITURE ON Raisingfvnds- invesbment management fees Charitable activitie5 8.719 8.719 5,694 90 Total 69,681 8,719 78,4CM) 71,596 Inve5tmentgains/llossesl NINcOmE 169,6811 285,380 215.699 117.3261 Transfers betweenfunds Net movement in fund5 io 13.3211 219,020 215,699 117.3261 RECONCILIATION OFFUNDS Total funds broughtfonvard TOTAL FUNDS CARRIED FORWARD All incotne and expendlture has arisen from continuingactivities. The notes numbered I to 13form part ofthesefinancial ststements. The note5 form part of the* financlal statements Page 7
TOMSON'S CHARrrY BALANCE SHE AT31 DECEMBER 2021 Unrestricted Funds Endowment Funds Totsl Funds 2021 Totsl Funds 2020 Note5 FIXED ASSErs Investments 2,121 1,952,994 1.955.115 1.736,095 CURRENT ASSET5 Debtors C35h at bank 22,355 22,355 23,658 CREDITORS Arnounts fallingduewithin one year NCURRENT AS5 645 TOTALAssEfs LESSCURRENT LIABILITIES ASSErs FUNDS Unrestricted fund5 EndoentfUnd 4,766 4.766 1952 994 8.087 173397 TOTAL FUNDS The notes numbered I to 13 form partofthese financial statements. Thefinancial statementswere approved bythe Board of Trustees on 31st May2022 and were signed on its behalf by.. Very Revd S Brown- On behalf of theTrustees The notes fom part of ttw financlal statements Page 8
TOMSON'SCHARITY NOTESTOTHE FINANCIALSTATEMENTS FOR THEYEAR ENDED 31 DECEMBER 2021 ACCOUNTING POLICIES Basis of preparingthe financial statements The financial statements of the charity, whith 15 3 public benefit entity under FRS 102, have been prepared in acCOrdanWIth the Charities SORP IFRS 1021'Accountingand Reportingby Ch3rities= Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20151., Financial Reporting Standard 102 The Financial Reporting Stsnd3rd applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statetnents have been prepared under the historical cost convention with the exception of investments which are incjuded at marketvalue, a5 modified bythe revaluation of certain assets. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the incomewill be received and the amount can be measured reliably. Expenditure Liabilities are recognised as extEnditure as Soon as there is a legal or construrtive obligation comtnitting the tharity to that expenditure, it is probable that a transferof economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted foron an 3ccru3ls basis and has been classified under headings thata8gregatea1jcost1ated tothecategory.Wherecosts cannot be directlyattributed toparticular headings they have been allocated to activities on a basis con51Stent with the use of resources. Taxation The charity is not generally liable to corporation tsx on its 5urplu5. The charity is not registered for value added tax purposes. Fund accountin8 Unrestricted fund5can be used in aCcOrdanWIth the charitable objertive5 atthe discretionof thetrustees. The inve5tments,and anyincome and expenditure in mana8in8thecapital assetsof thecharityarerecognised as part of theoriginal endowrnent bythe Tomson Charityand shown as Endowrnent Funds. Furtherexplanation of the nature and purpose of each fund is included in the notes to thefinancial statement Investments Investments are ststed at market value at the balan sheet date and unrealised gains or105ses are shown on the Statement of Financial Activities. Liabilities Liabilities arereco8nised when the Charity has a present obligation ari5ingfrorn pa5tevents. Cash at bank and in hand Cash at bank and cash in hand include5 cash and shortterm investmentswith a short maturityof threemonthsor less from the date of acquisition oropenin8 of the deFX)Sit or5irni13r account. Debtors Trade and other debtor5 are reco8nised at the 5ettlernent amount du& Prepayments are valued at the amount prepaid. Creditors and provisions Creditors and provisions are recognised where the tharity has a present obligation resulting from a past event that will prob2bly result ITh the transfer of fund5 to a third party and the amount due to settle the obligation can be rne35ured orestimated reliably. Creditors and provisions are normally recognised at theirsettlerT>ent arnount Page 9
TOMSON'S CHARITY NOTg5TOTHE FINANCIALsfATEMENTS Icontinuedl FOR THEYEAR ENDED 31 DECEMBER2020 INVEsfMENT INCOME 31.1221 31.1220 Dividends 33.792 37265 CHARITABLEACTIVITIESCOSrs Dlrect costs spport costs 15ee notes) Totsls Choristers. school feesgrant 66,360 3.321 69,681 MOVEMENT ON INVEsfMENTS 31.1221 31.1220 G3ins/llossesl investments Inve5tTnent m3nagementfees 260,307 18.7191 17,005 15,6941 251.588 11,311 SUPPORTcosrs Governance costs Auditor5 remuneration Bankch3r8es 3.138 183 3.321 TRUSTEES, REMUNERATIONAND BENEFITS Thewere no employees duringthe year. No emoluments or expenses were paid tothetrustees during the year. Trustees. indemnity insur3nce has not been purchased durÈngthe year. TrLtstees'expenses The were no trustees, expenses paid for the year ended 31DeMber2021 nor for the year ended 31 December 2020. Page 10
TOMSON'SCHARITY NOTESTOTHE FINANCIALSTATEMENTSlcorttinuedl FOR THEYEAR ENDED 31 DECEMBER2021 COMPARATIVES FOR THESTATEMENTOF FINANC[ALA1VlTIE5 31.1220 3L1220 Unrestrscted Endowment Funds Funds 31.1220 Total fvnds Investment income 37,265 37265 Total 37,265 37.265 Raising Funds Investment management fees 5.694 5,694 Charitable activities 65,902 65,902 Total 65,902 5,694 71,596 Inve5tmentgainslllosse51 17,005 17,005 NINcOmE 165,9)21 48,576 117.3261 fran5fers between bjnds 65,824 165,8241 Net movementon fvnds 1781 117,2481 117,3261 Totsl funds brou8htfotrward 8,165 1,751,222 1,759,387 Total fund5 carried forward 8,087 1,733.974 1,742,061 FIXEDAss INVESTmEs Cash and settlements pendin¥ Listed investments Total$ MARKETVALUE At l January 2021 Additions Diswjsals Gains on investments Movementon cash 1.733,796 472.970 1509,0411 260,307 2,299 L736.095 472,970 1509,0411 260,307 15,2161 5,2161 At 31 Decernber 2021 1.958,032 12,9171 1,955.115 Fixed asset investments are quoted on a recognised stock exchange and held within the United Kingdom. Investments which cornpri5ed more than 5% ofthe tota5 market value at 31 December 2021 were Edgewood Select Fund £100.61415.15%1, Findlay Park American Funds Unhedged £131.88016,75%1. Page 11
TOMSON'SCHARITY NOTES TOTHE FINANCIALSTATEMENTS Icontinuedl FOR THEYEAR ENDED 31 DECEMBER 2021 CREDITORS.. AMOUNTSFALLING DUEWITHIN ONEYEAR 31.1221 31.1220 Othercreditor5 19,710 17,692 io. MOVEMENT IN FUNDS Net movement In fvnds Transfers between fvnds At l.L21 At31.1221 Unrestrirted fijnds Genera1 fund 8,087 169,681) 66J60 4,766 Endowmentfund 1,733,974 285,380 166.3601 1,952,994 TOTAL FUNDS 1.742,061 215.699 1,957,760 Net movement in funds. tncluded in the above areas follow5.. Income and endowments Expendtture Galns and Movementln losses funds Unrestricted fvnd$ General fund 169,6811 169,681) Endowmentfund 33,792 18.7191 260,307 285,380 TOTALFUNDS 33,792 178.4001 260,307 215,699 Unrestricted funds represent the funds of the charitythat are not subject to any restrictions regardingtheir use and are available forapplic3tion of thegeneral objects of the charity. The Endovfflient fund ig the capital assets of the charity which are used to generate the income paid over to the unrestricted fund fordistribution in fUrtheran0f the aims of thecharity. RELATED PARTY DISCLOSURES Therewere no related partytransactions fortheyearended 31 Dember 2021. ULTIMATE CONTROLLING PAR The charity is controlled by Hereford Cathedr21 on the b3ST5 that the Chapter of the Cathedral is the 501e trustee of thecharify. Hereford Cathedral ischarity but as an ecclesiastical corporation 15 not required to be registeredwth the Charity Commission. A copy of the Consolidated accounts of the cathedral may be obtained from its principal office tthe addre55shown on page 2. Page 12