**Ref: NT44**
Charity Registration Number: 220124
## **P F CHARITABLE TRUST**
## REPORT AND FINANCIAL STATEMENTS
For the year ended 31 March 2023
**P F CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and Administrative Information|1|
|Trustees’ Annual Report|2 - 5|
|Independent Auditor’s Report|6 – 9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Cash Flow Statement|12|
|Notes to the Financial Statements|13 - 19|
**P F CHARITABLE TRUST**
## **REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2023**
The Charitable Trust was founded under a Deed of Trust dated 28 May 1951 (Settlement Deed), which established the objects and powers of the Charitable Trust. The Charitable Trust is registered with the Charity Commission for England and Wales as Charity Number 220124.
## **TRUSTEES**
Philip Fleming Rory David Fleming Matthew Valentine Fleming
## **PRINCIPAL OFFICE**
RFT Management Services Limited 14 Buckingham Street London WC2N 6DF
## **INDEPENDENT AUDITOR**
Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
## **REGISTERED CHARITY NUMBER**
220124
Page 1 of 19
**P F CHARITABLE TRUST**
## **TRUSTEES’ ANNUAL REPORT FOR YEAR ENDED 31 MARCH 2023**
The Trustees present their report along with the financial statements of the Charity for the year ended 31 March 2023. The reference and administrative information set out on page 1 forms part of this report. The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 15 and comply with the Charity’s Settlement Deed, the Charities Act 2022 and the reviewed Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2015).
## **STRUCTURE GOVERNANCE AND MANAGEMENT**
The Trustees who held office throughout the year are shown on Page 1. Any new Trustee required is selected and vetted by the serving Trustees as to their suitability and then in exercise of the powers given to them by the Trustee Act 1925 (as amended) appointed by Deed to be a Trustee jointly with the continuing Trustees. Trustees are informed of the history of the Charity and acquainted with the activities of the Charity. Additional training and/or information is provided to the Trustees on an ongoing basis when relevant.
No Trustee receives a fee for the service they provide to the Charity, all time spent is donated free of charge.
RFT Management Services Limited provides the Charity with charity administration and financial reporting services. The Trustees receive regular reports from RFT Management Services Limited.
The Trustees meet regularly during the year.
## **OBJECTS AND ACTIVITIES**
The Charity was established for the purpose of making contributions to religious and educational bodies or other legal charities, as the Trustees shall from time to time at their discretion decide.
The Charity’s objectives are wide in scope and allow the Trustees to modify their grant-making activity to consider varying charitable demands over time. This means that funding can be applied where the Trustees consider that it is most needed.
In furtherance of the objectives the Trustees continue to make a substantial number of grants to charitable organisations both on a one-off and recurring basis.
The Trustees aim to continue to generate sufficient income to allow it to meet its grant-making objective. This will be achieved by focusing on the long-term sustainability of the investments and maintaining the capital value to support this income requirement.
The Trustees monitor the performance of the investments against their income requirement and capital growth objectives in supporting income. Performance is discussed regularly with the investment managers against suitable industry benchmarks.
## **GRANT MAKING POLICY**
The Trustees support a wide variety of charitable trusts by providing financial support to other registered charities.
Whilst the Trustees are able to advance funds out of the expendable endowment fund, the intention for the foreseeable future is to pay expenses and grants solely out of income.
Page 2 of 19
**P F CHARITABLE TRUST**
## **TRUSTEES’ ANNUAL REPORT FOR YEAR ENDED 31 MARCH 2023 (CONT’D)**
The Trustees usually meet monthly to consider applications and approve grants. Applications should be addressed to the Secretary at the principal office.
The Trustees have indicated to certain charities that they may make further grants in forthcoming years. The Trustees retain the option to discontinue those prospective instalments at any time.
The Trustees require all beneficiaries to acknowledge grants made and where possible to provide an update as to how funds have been applied by them in meeting their own charitable objectives and hence that the funds have been put to good use.
The Trustees have considered the Charity Commission guidance on public benefit including the guidance “public benefit running a charity” when formulating the grant making policy. The Trustees consider how grants can be made to ensure maximum benefit flows through to the intended ultimate beneficiaries.
## **ACHIEVEMENTS AND PERFORMANCE**
During the course of the financial year covered by this report, the Trustees awarded grants totalling £2,083,280. These charities benefitted by way of increased financial resources to meet their charitable objectives. The grants benefitted a number of public causes as detailed in note 6.
The Trustees continued with their policy of making a large number of smaller grants to widen the number of charities supported. The Trustees are also mindful that some projects require much larger funding levels to be effective.
The Trustees’ policy is to make grants to registered charities over a wide range of charitable objects which during the year were principally in the areas of
- The advancement of health or the saving of lives
- The advancement of education
- The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
- The advancement of the arts, culture, heritage, or science
The Trustees look forward to expanding their work with many other charities and foundations in the years to come in accordance with the grant making policy, which reflects the objectives of the Charity.
## **FINANCIAL REVIEW**
The Charity’s principal source of income is from its investments, which amounted to £3,077,295 (2022£2,609,356).
## **FUTURE PLANS**
The Trustees do not envisage any material change to the operation of the Charity in the long-term. The investments will continue to be managed on a similar basis to now. Notwithstanding this, the Trustees remain flexible in terms of the type of organisations supported so as to meet the demands of the day.
Page 3 of 19
**P F CHARITABLE TRUST**
## **TRUSTEES’ ANNUAL REPORT FOR YEAR ENDED 31 MARCH 2023 (CONT’D)**
While the Trustees are able to advance funds out of the expendable endowment fund, the intention for the foreseeable future is to pay expenses and grants solely out of income.
## **RESERVES POLICY**
It is the Trustees’ intention to sustain the unrestricted funds at a level which will provide sufficient investment income to increase the level of grants paid, cover the Charity’s management and administration costs and to be able to respond to any emergency applications that may arise from time to time. At the Balance Sheet date, the unrestricted reserves, including the expendable endowment of the Charity, amounted to £141,242,983. The Trustees are satisfied with the level of reserves currently held.
## **INVESTMENT POLICY**
The Trustees have agreed an investment policy for the Charity’s investment portfolio and have instructed the investment managers that the portfolio is to be invested to produce a suitable mixture of income, in order that the level of grants may be maintained and capital growth to secure the future of the Charity in the coming years. This policy is monitored by regular investment reports and meetings with the investment managers.
To meet these objectives, the Charity’s investments are managed across a range of asset classes, maintaining diversification, to produce an appropriate balance between risk and return.
The Trustees have decided that it would be inappropriate to impose any specific ethical investment constraints upon the investment manager over and above those already contained within the managers’ own ethical and socially responsible investment policies.
## **RISK MANAGEMENT**
The Trustees have reviewed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate those risks. The principal risk faced by the Charity is an investment risk. This risk could be the reduction in the capital value of the investments and the income derived from the investments, required by the Trustees in meeting their charitable objectives. This risk has been addressed by the appointment of professional advisors to monitor investment performance and to decide on acquisitions and disposals.
## **KEY MANAGEMENT PERSONNEL**
The Trustees are considered to be the Key Management Personnel of the Charity. The Trustees are not remunerated for their services.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the resources and application of resources, including income and expenditure for that period.
Page 4 of 19
P F CHARITABLE TRUST
TRUSTEES, ANNUAL REPORT FOR YEAR ENDED 31 MARCH 2023 ICONT'D
In preparing those financial statements the TNstees are required to:
Select suitable accounting polioes and then apply them consistently;
Observe the methods and principles in the Charities SORP,.
Make judgments and estimates that are reasonable and prudent,.
State whether applicable accounting standards and statements of recommended Practi have
been followed, subject to any departures discloA and explained in the financial statemenls;
and
Prepare the finanaal statements on a going concern basis unless it is it)appropriate to presume
that the Charity will continue in busines5.
In so far as the Trustees are aware..
There is no relevant audit Anformalion OE which the charitable eompany's auditor is unaware.
and
The Trnstees have taken all steps that they ought lo have taken to make themselves aware of
any audit infomation and to establish that the auditor ib aware of thai information.
The Tntstees are responsible for keeping proper accountin8 records that disclose with reasonable
accuracy at any time the finanoal POSAtion of the Charity and to enable them to ensure the Einancial
6tateuients comply with the Charitys Settlernent Deed, the Charities Act 2022 and the reviewed
Statement of Recommended Practice - Accounting and Reporting by Charities {SORP 2015). The
Tn]stees are also responsible for safeguardin8 the assets of the Charity and hence (or taking reasonable
steps Eor the prevention and detection OE fraud and other irregularities.
Approved by the Trustees and signed on their behalf by..
?L4
P Fleming
Trustee
Date:
l( /671is
Pase 5 of 19
**P F CHARITABLE TRUST**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE P F CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2023**
## **Opinion**
We have audited the financial statements of The P F Charitable Trust (the ’charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2022.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 6 of 19
**P F CHARITABLE TRUST**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE P F CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Charities Act 2022 require us to report to you if, in our opinion:
- the charity has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the charity’s 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.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 151 of the Charities Act 2022 and report in accordance with that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Page 7 of 19
**P F CHARITABLE TRUST**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE P F CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charity considered that the most significant are, the Charities Act 2022, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charity company complies with these requirements by discussions with management.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining additional corroborative evidence as required.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
Page 8 of 19
**P F CHARITABLE TRUST**
**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE P F CHARITABLE TRUST FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
- events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2022. Our audit work has been undertaken so that we might state to the charity’s trustees those matters which 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 any party other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Neil Finlayson, Statutory auditor Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
Date:
Page 9 of 19
**P F CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
|NOTE
**INCOME**
Investment income
3
**TOTAL INCOME**
**EXPENDITURE**
Costs of generating funds
4
Charitable activities
6
**TOTAL EXPENDITURE**
Gains on foreign exchange
**GAINS/(LOSSES) ON**
**INVESTMENTS**
Realised
9
Unrealised
9
**NET (EXPENDITURE**)/INCOME
Gross transfer between funds 8
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**BALANCE CARRIED FORWARD**|Unrestricted
Expendable
Endowment
£
Unrestricted
Income
£
Total
2023
£
-
3,175,063
3,175,063|Total
2022
£
2,609,356|
|---|---|---|
||-
3,175,063
3,175,063|2,609,356|
||-
125,966
125,966
-
2,156,311
2,156,311|63,506
2,103,944|
||-
2,282,277
2,282,277|2,167,450|
||38,405
17
38,422
(838,601)
-
(838,601)
(2,986,799)
-
(2,986,799)|32,601
436,979
9,444,864|
||(3,786,995)
892,803
(2,894,192)
441,827
(441,827)
-|10,356,350
-|
||(3,345,168)
450,976
(2,894,192)
143,695,348
441,827
144,137,175|10,356,350
133,780,825|
||**140,350,180**
**892,803**
**141,242,983**|**144,137,175**|
## **CONTINUING OPERATIONS:** all of the Charity’s activities relate to continuing operations.
**TOTAL RECOGNISED GAINS AND LOSSES:** the Charity has no recognised gains and losses other than those shown in the statement of financial activities.
Page 10 of 19
P F CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMEFUS FOR THE YEAR ENDED 31 MARCH 2023 (CONT
NOTE
2023
2022
FIXED ASSETS
Investments
140,350,077
140,350,077
143,695,348
143,695,348
CURRENT ASSETS
Debtors
Cash at Bank
io
97,768
836,392
934,160
131,171
341,596
472,767
LIABILITIES
Creditois.. Ealling aue within one year
li
141,254)
130,940)
NET CURRENT ASSETS
891906
441,827
TOTAL ASSETS LESS CUIUiENf LIABILITIES
Representing..
141241983
144,137.175
UNRESTRIcfED FUNDS
Income
Expendable Endowment
12
12
S9203
I40,3,180
141,242,983
441,827
143,695,348
14£137,175
Approved and authorised by the Trustees for issue
P Flemin8
Trustee
Date:
l(/07113
Pagell of19
**P F CHARITABLE TRUST**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**NET**
**CASH**
**ABSORBED**
**BY**
**OPERATING**
**ACTIVITIES (see below)**
**Cash flows from investing activities**
Dividends and interest from investments
3
Proceeds from the sale of investments
9
Purchase of investments
9
Net cash provided by investing activities
**Change in cash and cash equivalents in period**
Cash and equivalents brought forward
Cash and equivalents carried forward
**RECONCILIATION OF NET MOVEMENT IN**
**FUNDS TO NET CASH FLOW FROM OPERATING**
**ACTIVITIES**
Net movement in funds for the period ended 31 March
2023 (as per the Statement of Financial Activities, page
10)
Adjustments for:
Dividends and interest from investments
3
Realised loss/(gain) on the sale of investments
9
Unrealised loss/(gain) in revaluing investments
9
Decrease/(Increase) in debtors
10
Increase in creditors
11
**Net cash absorbed by operating activities (see above)**|2023
£
2022
£
(2,200,138)
(2,216,444)|
|---|---|
||3,175,063
2,609,356
8,199,285
13,322,242
(11,851,007)
(14,394,015)|
||(476,659)
1,537,583|
||(2,676,797)
(678,861)
3,946,649
4,625,510|
||1,269,852
3,946,649|
||(2,894,192)
10,356,350
(3,175,063)
(2,609,356)
838,601
(436,979)
2,986,799
(9,444,864)
33,403
(83,685)
10,314
2,090|
||(2,200,138)
(2,216,444)|
## **Analysis of cash and cash equivalents**
|Cash at Bank
Cash held in investments|As at 1
April 2022
£
Cash Flow
£
As at 31
March 2023
£
341,596
494,796
836,392
3,605,053
(3,171,593)
433,460|
|---|---|
||3,946,649
(2,676,797)
1,269,852|
Page 12 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES**
## **(a) Basis of Preparation**
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and a registered Charity and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), and Charities Act 2022. These accounts are prepared in sterling, which is the functional currently of the Charity, and rounded to the nearest pound.
## **(b) Going Concern**
The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. With respect to the next reporting period, 2023–24, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the Trustees’ annual report for more information).
## **(c) Fund Structure**
Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.
The Expendable Endowment Fund represents those assets which are held for the longer term for the Charity, in accordance with the terms of the Settlement Deed. Income arising on the Expendable Endowment Fund can be used in the Unrestricted Income Fund. As an Expendable Endowment Fund can be used in accordance with the objects of the Charity and is included in the unrestricted funds, capital can also be spent in certain circumstances in fulfilment of the Charity’s objects. Any capital gains or losses arising on the investments held in the Expendable Endowment Fund form part of that Fund.
## **(d) Income**
All income is recognised in the Statement of Financial Activities (SOFA) when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for repayment of income tax has or will be made such income is grossed up for the tax recoverable. The following accounting policies are applied to different categories of income:
## _**Investment Income**_
Investment income is accounted for when receivable and is stated gross of any reclaimable taxation relief.
Page 13 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## **1. ACCOUNTING POLICIES (CONT’D)**
## **(e) Expenditure**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies are applied to the different categories of expenditure:
## _**Costs of generating funds**_
The costs of generating funds consist of investment management and related costs.
## _**Charitable Activities**_
Costs of charitable activities include grants made and support and governance costs. Grants payable are recognised when they are approved by the Trustees and the recipient of the grant has been informed of the amount to be paid.
## _**Support and Governance Costs**_
Support and governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include expenses related to statutory audit fees, professional and legal fees, and support costs.
## **(f) Fixed Asset Investments**
The Trustees believe that including cash held with investment managers within Fixed Asset Investments is a more accurate portrayal of how this cash is used. This cash is shown within Fixed Asset Investments.
Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.
## **(g) Foreign Currencies**
Transactions in foreign currencies are recognised at the rate of exchange at the date of transaction. Monetary assets and liabilities are translated into sterling at the rate of exchange on the balance sheet date. Exchange differences are recognised through the statement of financial activities.
## **(h) Realised and Unrealised Gains and Losses**
All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
Page 14 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## 1. **ACCOUNTING POLICIES (CONT’D)**
## **(i) Critical accounting estimates and areas of judgement**
In preparing financial statements, it is necessary to make certain adjustments, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
## **(j) Cash and cash equivalents**
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months of less.
## **(k) Financial Instruments**
The Charity has elected to apply the provisions of Section 11 Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **2. INFORMATION REGARDING TRUSTEES AND EMPLOYEES**
In the financial year ended 31 March 2023, none of the Trustees received any remuneration or had expenses reimbursed by the Charity (2022: £Nil). The Trustees are considered to comprise the Charity’s key management. The Charity has no employees.
## **3. INVESTMENT INCOME**
|Income from Investments
Income from Interest
Interest on cash deposits
**COSTS OF GENERATING FUNDS**
Investment Management Fees (after fee adjustment/rebates)
Custody and Administration Fees|2023
£
2022
£
2,732,146
2,315,842
405,882
293,431
37,035
83
**3,175,063**
**2,609,356**|
|---|---|
||2023
£
2022
£
62,760
(2,830)
63,206
66,336|
||**125,966**
**63,506**|
## **4. COSTS OF GENERATING FUNDS**
Page 15 of 19
**P F CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## **5. CHARITABLE ACTIVITIES**
The Charity undertook no direct charitable activities but awarded grants to a number of institutions in furtherance of its charitable activities. These are as follows:-
|ABF The Soldiers’ Charity
Foundation Scotland
The Fleming-Wyfold Art Foundation
Helpforce
Institute of Cancer Research
National Star
British Heart Foundation
Grants above £20,000 and up to £30,000
Grants above £5,000 and up to £20,000
Grants £5,000 and below
**Total for the year**
**ANALYSIS OF GRANTS MADE**
The prevention of relief of poverty
The advancement of education
The advancement of religion
The advancement of health or the saving of lives
The advancement of citizenship or community
development
The advancement of the arts, culture, heritage or
science
The advancement of amateur sport
The advancement of environmental protection or
improvement
The relief of those in need by reason of youth, age, ill-
health,
disability,
financial
hardship
or
other
disadvantage
The promotion of the efficiency of the armed forces of
the Crown, or of the efficiency of the police, fire and
rescue services or ambulance services
The advancement of human rights, conflict resolution of
reconciliation or the promotion of religious or racial
harmony or equality and diversity
The advancement of animal welfare
Any other purposes that are recognised as charitable
under sub-section (4) of the Charities Act 2006 s.2
Support and Governance costs (see note 7)
Charitable Activities|2023
No.
2022
No.
2023
£
11
14
32,000
46
40
230,500
7
7
42,500
183
177
1,240,000
5
10
90,000
22
31
113,780
5
5
26,000
10
13
47,000
36
56
159,000
4
5
84,000
-
2
-
4
7
11,000
2
1
7,500||£
80,000
56,000
50,000
50,000
50,000
50,000
35,000
200,000
620,000
892,280
**2,083,280**
2022
£
65,500
178,000
35,500
1,077,500
121,500
130,780
17,000
86,500
174,500
94,000
8,500
39,000
3,000|
|---|---|---|---|
|||||
||**335**
**368**
**2,083,280**
-
-
73,031||**2,031,280**
72,664|
||**335**
**368**
**2,156,311**||**2,103,944**|
## **6. ANALYSIS OF GRANTS MADE**
Page 16 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## **7. SUPPORT AND GOVERNANCE COSTS**
|**SUPPORT AND GOVERNANCE COSTS**||
|---|---|
|Legal and Professional Fees
Auditor’s remuneration
Auditor’s remuneration prior year under accrual
IT
Bank charges
To Charitable activities|Total
2023
£
Total
2022
£
60,000
60,000
10,000
10,000
1,040
800
1,254
1,140
737
724
(73,031)
(72,664)|
||**-**
**-**|
## **8. MAINTENANCE OF ENDOWMENT FUND**
In accordance with the Trustees’ intentions to preserve capital and enhance income levels, a transfer of £441,827 was made from the Income Fund to the Expendable Endowment Fund (2022: £578,139).
## **9. FIXED ASSET INVESTMENTS**
## **Movement in fixed asset investments**
|Market value
brought forward
Acquisitions at
cost
Less disposal
proceeds
Realised
gains/(losses) on
disposals
Gains/(losses) on
revaluation
Add Investment
Cash
**Market Value**
**Carried Forward**
_Historical Costs_
**Geographical**
**Analysis**
United Kingdom
investments
Overseas
investments
Investment Cash|Unlisted Securities
2023
£
2022
£
14,789,701
10,545,493
1,078,987
1,479,015
(989,128)
(685,211)
100,671
117,554
1,186,064
3,332,850|Listed Securities
2023
£
2022
£
125,300,594
118,591,186
10,772,020
12,915,000
(7,210,157)
(12,637,031)
(939,272)
319,425
(4,172,863)
6,112,014|Listed Securities
2023
£
2022
£
125,300,594
118,591,186
10,772,020
12,915,000
(7,210,157)
(12,637,031)
(939,272)
319,425
(4,172,863)
6,112,014|Total
2023
£
140,090,295
11,851,007
(8,199,285)
(838,601)
(2,986,799)|Total
2022
£
129,136,679
14,394,015
(13,322,242)
436,979
9,444,864|
|---|---|---|---|---|---|
||**16,166,295**
**14,789,701**|**123,750,322**|**125,300,594**|**139,916,617**|**140,090,295**|
||-
-|-|-|433,460|3,605,053|
||**16,166,295**
**14,789,701**|**123,750,322**|**125,300,594**|**140,350,077**|**143,695,348**|
||_10,962,325_
_10,376,859_
1,088,124
926,140
15,078,171
13,863,561
**-**
**-**|_98,833,240_
117,045,690
6,704,632
**-**|_95,076,683_
118,068,990
7,231,604
**-**|_109,795,565_
118,133,814
21,782,803
433,460|_105,433,542_
118,995,130
21,095,165
3,605,053|
||**16,166,295**
**14,789,701**|**123,750,322**|**125,300,594**|**140,350,077**|**143,695,348**|
Page 17 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## **9. FIXED ASSET INVESTMENTS (CONT’D)**
The following investments comprise in excess of the 5% of the value of the portfolio:
|**Investment**
TM Stonehage Global Equities Fund I
Ishare Core FTSE100 UCITS ETF
Evenlodge Global Income Fund
Man GLG UK Income Fund
TM Redwheel UK Equity PLC
Pimco Global Advisors IRL LTD GIS Income Hedged
**DEBTORS**
Income Due
**CREDITORS – amounts falling due within one year**
Accruals
**FUND ANALYSIS**
Unrestricted
Expendable
Endowment
£
Investments
140,350,077
Cash at Bank
103
Debtors
Creditors
-
140,350,180
Unrestricted
Expendable
Endowment
£
Investments
143,695,348
Cash at Bank
-
Debtors
-
Creditors
-
143,695,348|**Investment**
TM Stonehage Global Equities Fund I
Ishare Core FTSE100 UCITS ETF
Evenlodge Global Income Fund
Man GLG UK Income Fund
TM Redwheel UK Equity PLC
Pimco Global Advisors IRL LTD GIS Income Hedged
**DEBTORS**
Income Due
**CREDITORS – amounts falling due within one year**
Accruals
**FUND ANALYSIS**
Unrestricted
Expendable
Endowment
£
Investments
140,350,077
Cash at Bank
103
Debtors
Creditors
-
140,350,180
Unrestricted
Expendable
Endowment
£
Investments
143,695,348
Cash at Bank
-
Debtors
-
Creditors
-
143,695,348|**Holding**
**Value**
12,423,182
48,885,220
1,590,182
11,905,693
8,036,572
11,671,513
6,459,312
7,718,879
7,166,363
7,474,518
778,330
7,067,240
2023
£
2022
£
97,768
131,171
**97,768**
**131,171**
2023
£
2022
£
41,254
30,940
**41,254**
**30,940**
Unrestricted
Income
£
2023
£
-
140,350,077
836,289
836,392
97,768
97,768
(41,254)
(41,254)|
|---|---|---|
|||892,803
141,242,983|
||Unrestricted
Expendable
Endowment
£
143,695,348
-
-
-|Unrestricted
Income
£
2022
£
-
143,695,348
341,596
341,596
131,171
131,171
(30,940)
(30,940)|
||143,695,348|441,827
144,137,175|
## **10. DEBTORS**
## **11. CREDITORS – amounts falling due within one year**
## **12. FUND ANALYSIS**
Page 18 of 19
**P F CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONT’D)**
## **13. RELATED PARTY TRANSACTIONS**
Philip Fleming is a director of RFT Management Services Limited. Philip Fleming is also a director and substantial shareholder of RF Trustee Co. (Holdings) Limited, the holding company of RFT Management Services Limited. RFT Management Services Limited charged the Charity £60,000 (2022 - £60,000) for the year in respect of administration services.
Rory Fleming is a Trustee of The Fleming-Wyfold Art Foundation to whom a grant of £50,000 was paid during the year (2022 £25,000).
Page 19 of 19