IM irwinmitchell FRIARSGATE TRUST REGISTERED CHARITY NUMBER 220762 FINANCIAL STATEMENTS For the ear ended 5th A rll 2021 (Ref.. TST1450369611 FRIARSGATE TRUST REGISTERED CHARITY NUMBER 220762 Cont&nts to the Financial Statèments for the ear e#d&d 5th A ril 2021 1- 5 Trustees report Indapend8nt AuditOTk' Report 10 Statement ol Financial Aclivilies Balance Sheet 32 ststement of Cash Flows 13- 19 Noles to Financ4al Sl8lements 20- 24 Schedule of Investments Page 1 Frlarsgate Trust Trusteès Report For the Year ended 5" April 2021 General Information Full Name of Charity.. Friarsgale TTUSI Nature of Governing document.. Deed of Trust dated 26. hAarch 1955 Registration Number: 220762 Registered Address.. Thomas Eggar House, Friary Lane. Chichester, West Sussex. P019 1UF Principal Banker National Westminster Bank Plc, 5 East Street, Chichester, Wesl Sussex, P019 1HH Solicitors.. Irwin Mitchell LLP, Thomas Eggar House, Friary Lane. Chichester. West Sussex, POJ9 1 UF Auditors.. Jones Avens, Piper House, 4 Dukes Court. Bognor Road. Chichester, Wesl Sussex. P019 8FX Investment Managers.. Brewin Dolphin Limited, 12 Smilhfield Slreol, London EC1A 9LA Constltutlon and Otjjects The Trust was established under a Deed of Trust dated 25 March 1955 executed by the late C.P.B Shippam and is a registered Charity number 220762. The objects of the Trust are-. al To provide funds for the academic and general education of orphans and children (whether inftaiit or adult) w1105e par¢nls are in poor or reduG¢d ¢ircum3tances. b) To provide the mental, moral. physical, technical and social education of children, young persons and adulis. l To provide. equip and maintain for the purposes refeired to in (a) and {bl above camping grounds, holiday camps, playing fields. club rooms or other accommodation and facilities. d) To provide for the relief and care of impotent persons including in that expression Ibul without in any way reslricling the generality thereofj all persons suffering either temporarily or permanently from disease or disability of any kind affecting their body or mind. el To provide for the relief of persons over the age of sixly years by the piovision of maintenance. food, clothing and housing. To promole and support or aid any charitable inslilutions, purposes or projects in any way connected with the objects aforesaid or calculated to further such objects or any of them. GA.. 6671949 1 Page 2 Trustegs The cUr￿n1 Iruslees are.. Mrs S Bain Mrs G Livingstone Mr R M Newman Mrs D A Altman The appointment of the Trustees is governed by the Trust Deed. The TrLJslees are authorised to appoint new Trustees lo fill vacancies arising through resignation or death of an existing Trustee. Trustees are appointed both on the basis of their specialist knowledge of the area bul also on the skills they have lo bring lo the role. Prospective new Trustees are invited to allend al least one Iruslee meeting before making their decision on whether they wish lo be appointed. l-hey are provided wrth copies of the conslilution, minutes of trustee meelings and the last two sets of accounts. In the year lo 5 April 2021 no Iruslees retired and no new Iruslees were appointed. In the absence of express provisions under the Trust deed, the power of appointment and reli¥emenl of Iruslees is exercised in accordan¢e with the Trusiee Act 1925. Operational and Declslon Making The Trustees meet al least twi￿ a year lo monitor the activities wilhin the Trust and the financial and investment priorities. In addition, they meet on a regular quarteily basis lo assess grant applications and lo approve or refuse grants against the grant making criteria. All decisions are made by the Trustees with tho help of their professional advisers. There are no employees of the Trust. Decisions are made by majority vole bul execulion and implementation may require only two signatures from Iruslees. Fundralslng and Grant Maklng Pollcy The Trustees do not carry out any independent fundraising bul rely solely on the income generated by the investment portfolio as managed by the investment managers on a discretionary basis. There is no geographical reslri¢lion in the Objecls, the Trustees give priorily lo local projects and those based in Wesl Sussex. Grants are made on the basis of crileria laid down and agreed by the Trustees. The Trustees evaluate grant applications made lo the Charity. Visits are arranged to applicants potentially gualilyiiig for support in some Ga8¢3 and then, if appropTiat¢, a writtcn commitment madé satling out the a9reed eondilions including any lime limits. In some cases follow up visits are arranged to assess the impact of the grant payment. Alms and Objectives The aim of the Trust is lo apply the income and, if appropriate, capital towards the Objects of the Gharity. The annual income generated by the investments is used lo support particular projects or, where appropriate. individuals. The anlicipaled income for the coming year is approximately £95,000, a second yeai al around 80010 of historical income levels, due to the anlicipaled effect of Covid-19 on dividend levels, the outlook for 2021-22 is currently even worse. Although not formally resolved, the Trustees apply between £15,000 and £25.000 per quarter if suitable appeals are received- whilst ensuring sufficient liquid funds remain for the day lo day running of the Trust. The Board of Trustees have paid due regards lo guidance issued by the Charity Commission on public benefit. GA.. 6671949 1 Page 3 Overview of the year There have been external Challenges dunng Ihe year., firsiiy the Trustees, were mlndful of any downward turn on the income and value ofthe portfolio in light of Brexit and the Covid-19 pandemic. During the year the trustees made 22 grants lolalling £77,650, 10 inslilulions. of the 22 grants made over 630A were for £2,000 or less. No further pledges were made, bringing the lolal grants and pledges in the year ended 5 April 2021 to £77.650 lin 2020 the grant payments were £97.575, there were no pledgesl- The overall reserves of the Charity increased during the year by £920,150 12Q20 decreased by £581,032). The professional fees paid lo Iwin Mitchell LLP were £12.480 in both 2021 and 2020. The Trustees continue lo use friars alelrus1.oro.uk oivinq the ITUSI a web presence, for a very modest outlay. The principle object is lo improve the quality of grant applicants by requesting applicants lo provide relevant information in a standard format.. as well as lo further publicise the Trusts aims and objeclives. Invèstments The investment portfolio as at 5 April 2021 was £4,182,035 12020 £3,267,588} with income generated of £98,133.00 12020 .. £117,244>. The lolal portfolio return was 32.22°/G compaied with 27.560kn in the agreed benchmark. There are no restrictions on the Charily's power lo invest. The investment strategy is set by the Trustees for a period of three years and takes account of likely demands for funds and the qualily of the fijnding applications. The Trustees consider the in¢ome requirements. the risk profile and the investment managerfs view of the market prospects in the medium term. This slralegy is sel within an overall policy which states Ihal the fund is lo be invested in a balanced portfolio with moderate risk based on a balance between income and capital growth. The investment portfolio may comprise equities, fixed income stocks and cash with a view lo ensuring that ¢apilal appreciation of the fund matches or excaeds the FTSE 100, the FTSE All Share Index, WM Charilies Unconslrained Model and FTA Governmenl All Stocks over edLlI Iliie¥ yedr peiiud. The fuiids, all of which are unrestriGt¢d, m8y be invested in any typ¢ of investment. The slratagy is reviewed with the investment manager al leasl annualty. The portfolio is managed on a discretionary basis by Brewin Dolphin for a fee based on the value of the portfolio. In addition to a valuation al the end of the financial year. the investment manager provides the I rustees witn a valuaiion and formal revlew every ihree months as al IhE eri(J vl Juli¥. Strpl¥iiiber, December and MaF¢h. The quarterly reports are considered al the Trustee meetings. GA.. 6671949 L Page 4 Cash at bank Changes in cash levels are largely diclaled by the incidence of charitable grartl payments.. Ihis year the Trustees, beino mindful of the uncertainly over income, agreed lo hold as a minimum positive cash balance sufficieni io cover the cost of runnlng the Trust for a year. The Ggsh baldllLe al S Apiil 2021 was £56,659 Gompared with £50,214 a yeai earlier. an increase of £6,445. The cash funds are under the supervision of the Charity's adminislralors, the Trust Department of ils solicitors. Resetves It is the policy of the Charity lo maintain sufficient cash funds lo meet ils anlieipaled expenditure on charitable grants. Income from investments are geneTally sufficient lo covers ils normal ongoing expenditure. The reseNes at the balance sheet dale were £4,226,225 (2020.. £3,306,074). Risk Management Throughout the year the Trustees have examined the major strategic, business and operational risks which the Trust faces. A minimum of two trustees are needed to sign all cheques and other documentation relating to financial or other transactions. but Ihe de¢ision having been made by all trustees. The iwo assets of Ihe Friarsgale Trust are the portfolio of inveslmenls and a cash deposit. The portfolio is subject lo discretionary management bul the Trustees have in place a management agreement and Investment Policy. The market risk is moderate and high risk investments are specifically excluded. Regular reports are received from the investment managers. These reports are reviewed regularly and a meeting with the investment advisers is held al least annually. The Investment Policy provides for a maximum of three years beiween formal reviews of investment advisers. For subslanlial projects, the Trustees will liaise with the organisation in question, review (he b8ckground and ensure the do¢umentalion is in place. Whe¥e appropriala funds are pledged with conditions lo be satisfied befoTe the grant is made. Statement of Trustees. Responslbilltles The ITLtslees are responsible for preparing Ihe Trustees. Report and the accounts in accordance wilh applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Aceounling Practice). The law applicable to charilies in England and Wales requires the Iruslees lo prepare accounts for è8r.h linAnr.IAI yAAr whirh give 8 trué 8nd fair view of the trust's financial activities dufing the year and of ils financial position al the end of the year. GA.. 6671949 1 Page 5 In preparing accounts 9tving a true and fair view, the Iruslees should follow besl practi￿ and.. select suitable accounting policies and then apply them consislenlly- observe the methods and principles of the ChaTiliès SORP., make judgments and estimate8 Ihal are reasonable and prudent: Stale whether applicable accounting standards and statements of recommended practice have been followed. subject lo any departures disclosed and explained in the accounts,. and prepare the accounts on the going concern basis unless il is inappropriate to presume that the chafily will conlinue in operation. The trustees are responsible for k¢eping 8dequ8te 8ccounting rcotsrd- thol diThpcIo4JC Wlth rea￿Onable accuracy al any lime the financial position of the trust and which enable them lo ensure that the accounts comply with the Charities Act 2011. the Charily {A¢counls and Reports) Regulalions 2008 and the provisions of the trust deed. They are also iesponsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and deleclion of fraud and other irregularities. Approved by the Tru81ees and signed on their behalf.. -Truslee ( ..Tru8lee .Truslee .T¥uslee Dated....231.1.1J.2Q.21.............. GA.. 6671949 1 Page 5 In preparing a￿OUnts giving a true and fair view, the truslees should follow bèst practice and.. select suitable accounting policies and then apply them consistently., obsetve tho methods and principles of the Charities SORP.. make judgments and estimates that are reasonable and prudent., slate whether applicable accounting standards and statements of recommended pra¢tlco hav8 been followed, subject to any departures disclosed and explained in the accounts,. and prepare the acGounts on the going concem basis unless il is inappropriate to presume thal the charity wll ¢onlinue in operation. The trustees are responsible for keeping adequate accountlng records that disGlose with reasonable accuracy at any lime the financial position of the trust and which enable them to ensure that the accounts comply with the Charities Act 2011, the Charity {Accounls and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and dètection of fraud and other irregularities. Approved by the Trustees and signed on their behalf.. ..Trustee -Trustee ..TnJstee Dated. 2311112021 GA.. 6671949 1 P8ge 6 FRIARSGATE TRUST INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF FRIARSGATE TRUST Opinion We have audited the financial slalemenls of FTiarsoale Trust Ilhe 'charity'l for the year ended 05 Ap¥il 2021 which comprise the slalemenl of financial activities, the balance sheet, the slalemenl of cash flows and the notes lo the financial slalemenls. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applic•bl• law and United Kingdom AecoLinting Standards. inp.Iiidino Fin2nr.ial Reporting Standard 102 The Financial Reporting Standard applicable the UK and Republic of Ireland {Uniled Kingdom Generalty Accepted Accounting Praclicel. In our opinion, the financial slalemenls.. give a true and fair view of the state of the charity's affairs as at OS April 2021 and of ils inGominy iebvurLeb uT)d