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2021-12-31-accounts

DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

REGISTERED COMPANY NUMBER: 00153719 (England and Wales) REGISTERED CHARITY NUMBER: 226072

Report of the Trustees and Audited Financial Statements for the Year Ended 31 December 2021

for

Liverpool Shipbrokers Benevolent Society Incorporated

DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Contents of the Financial Statements For the Year Ended 31 December 2021

Page
Report of the Trustees 1 – 5
Report of the Independent Auditors 6 – 8
Statement of Financial Activities 9
Balance Sheet 10
Statement of cash flow 11
Notes to the Financial Statements 12 -17
Detailed Statement of Financial Activities 18
Schedule of Investments 19 – 21

DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Report of the Trustees For the Year Ended 31 December 2021

The Council of Management of Liverpool Shipbrokers Benevolent Society Incorporated, who are also trustees and directors of the charity for the purposes of the Companies Act 2006, have great pleasure in presenting their 127th Annual Report and Accounts for the year ended 31 December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company Number

00153719 (England and Wales)

Registered Charity Number

226072

Registered Office

4[th] Floor, Melbourne Building 21 North John Street Liverpool Merseyside L2 5QU

Trustees

S Lofthouse J Day J McGuffie P Moss V Raducanescu President R Cooke I Robinson A Seedhouse M Ulfarsson Norddahl David Gilmour resigned 23.03.3022 Barry James Stokes resigned 30.06.2022

Company Secretary

Auditors

D Galbraith Cowgill Holloway LLP Regency House 45-53 Chorley New Road Bolton BL1 4QR

Solicitors

Investment Advisers

Weightmans LLP Tilney Investment Management Services Ltd 100 Old Hall Street Royal Liver Building Liverpool Pier Head L3 9QJ Liverpool L3 1NY

Bank Barclays Bank PLC 28-30 Lord Street Liverpool L2 1TA

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Report of the Trustees For the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Society is governed in its activities by the Memorandum and Articles of Association adopted on the 12 February 1919, as amended by the adoption of the Special Resolutions, passed on 3 June 1970, and is a company limited by guarantee, not having share capital.

Recruitment and appointment of new trustees

Trustees may appoint a Member at any time, during the course of the year, to the Council of Management, however that Member must then seek re-election at the next Annual General Meeting. At each AGM, approximately one third of the members of the Council of Management must resign and become eligible for re-election dependent upon the date of their last election or re-election.

Mr Viorel Raducanescu is currently the Society’s President. In this unpaid and voluntary capacity, he chairs meetings of the Council of Management and the Finance sub-committee of the Society. He is also responsible for instructing the Secretary to call meetings of the Council of Management and assisting the Secretary in setting its agendas.

The Society’s Secretary is David Galbraith who now has 37 years’ experience as the society’s salaried staff member. The Secretary is responsible for the day to day running and management of the Society and liaising with beneficiaries, outside agencies and institutions. The Society employs no other staff.

The Council of Management’s responsibilities in the running of the Society are as stated in the Memorandum and Articles of Association. Your attention is drawn to Note 9 of the accounts, Staff Costs.

Induction and training of new trustees

Newly appointed trustees receive a pack containing:

Newly appointed trustees will then also be invited to attend the Society’s offices for an induction meeting, with the Secretary and one or more long-serving Trustees, during which any additional training as may be required can be achieved and/or individual questions answered.

Organisational structure

Subscriptions, which remain unchanged since 1894 at £1.05 (a guinea) per annum, are the basis of the three-tier structure which manages the Society.

Subscribers, who pay an annual £1.05, are eligible to attend Annual and Extraordinary General Meetings and have a vote therein. From within the ranks of the Subscribers are drawn the Members. Members self-nominate to support the Society up to a maximum of £1.00 (one pound) in the event of the Society being wound up and having outstanding debts. It is this, and only this, which delineates them from subscribers and Members endure no further obligations or enjoy no further privileges. From within the ranks of the Members are drawn the “Members of the Council of Management” who are the legal Trustees of the charity and Directors of the Company.

The Trustees have appointed David Galbraith to act as secretary. Achieving this post initially in 1993, he has been employed by the society since 1985. Although Mr Galbraith’s job title is secretary he also acts as treasurer of the society and the trustees delegate the day-to-day management of the charity to him.

Decisions on the policies of the society as well as all other decisions which materially affect the society remain in the hands of the trustees and are made at one of the regular Council of Management meetings. Mr Galbraith’s role within the society is to apply the agreed criteria in order to make an initial assessment of needs following contact with a potential beneficiary who have made an application for assistance, in order to recommend to the Council of Management the levels of assistance which may be offered. In addition, the secretary assesses the incoming annual returns from existing beneficiaries to ensure their circumstances have not altered so as to exclude them from qualifying for support and provides the Council of Management with a recommended list of potential beneficiaries together with the suggested level of individual assistance for the coming year. Once the Council of Management have agreed on those changes the secretary’s role is to action these decisions and he has limited powers of discretion in these matters. He is also responsible for the day-to-day administrative work and for monitoring the financial markets, reporting to both a Finance subcommittee of trustees and subsequently to the Council of Management itself.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Report of the Trustees For the Year Ended 31 December 2021

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Trustees have continued throughout the year to assess the main risks to their finances.

OBJECTIVES AND ACTIVITIES Objectives and aims

Liverpool Shipbrokers Benevolent Society Incorporated, hereinafter referred to as “the society”, is a registered charity, the Objects of which are contained within the Society’s Memorandum, Clause 3(A) which reads:

“To grant relief during good behaviour either by pensions or donations, firstly to deserving and necessitous persons who have been members of the Society and their wives and families and necessitous widows of deceased members; secondly to persons who have at any time been engaged in the business of shipbrokers and / or shipowners or businesses directly connected therewith, either as principals, managers or clerical staff, in the City or Port of Liverpool, including members of the Liverpool Shipping Staffs’ Association not being at the time of the grant members of the Society who are, in the opinion of the Council, in need of assistance and the wives, partners, widows, children or dependents of such persons.”

There have been no material changes to the objects of the Society or its policy towards those objects since the last Annual Report and Accounts.

In exercising their powers and duties the Society’s trustees have shown due regard to the guidance on public benefit issued and published by the Charity Commission. The trustees believe that they have completed their duties diligently and to the best of their abilities for the benefit of the public and have also managed the funds entrusted to them for the benefit of the public.

There have been no material changes to the Society’s Mission Statement, Equal opportunities Policy nor Conflicts of Interest Policy. All three of these documents were re-appraised and re-adopted during the year under review. The Society’s Mission Statement, the Equal Opportunities Policy and the Conflict of Interest Policy documents are available from the Society upon request.

Significant activities

The Society seeks to improve the quality of life of its beneficiaries by the provision of financial assistance which may be general or, more rarely, with the particular aim of redressing a specific shortfall.

To this end the Society’s investments (a breakdown of which is contained within the accounts) were held in a balanced portfolio which was placed with Tilney Investment Management Services Ltd, who also provided the Society with financial advice.

The objectives of the Society during the year were dictated largely by the events of the ongoing financial difficulties; the relative instability of the markets following the Brexit vote and the subsequent squeeze on income generated by our investments. These factors, added to the global economic contraction caused by the coronavirus pandemic caused many challenges. Essentially the Society’s objectives became a) to maintain the levels of grant assistance to our beneficiaries where possible, and b) to maximise the level of income generated by the investments while at the same time minimising the risks to the overall capital valuation.

Overall income increased by £22,466 to £169,403. Overall expenditure decreased by £22,184. These two factors together meant that the net outgoing resources for the year decreased by £44,650.

The Balance Sheet indicates an increase in the Society’s value during the year. The Society’s total value at the 31 December 2021 snapshot showed an increase of £399,859 to £7,585,925 (2020: 7,186,066). It has again been an extremely challenging year with falling dividend values adversely affecting income. In addition, the value of the Society’s investment portfolio fell substantially as a direct consequence of the pandemic’s effect upon global markets.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Report of the Trustees For the Year Ended 31 December 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the course of 2021, a total of £256,305 (2020: £276,906) was disbursed in the form of grant assistance to the Society’s beneficiaries, thus allowing our beneficiaries a much higher standard of living than they might otherwise have enjoyed. Applications for assistance from deserving and necessitous people are considered by the Council of Management, in accordance with the Memorandum and Articles of Association.

Given the lockdowns which were ordered by the UK Government it was inappropriate to provide extra grants, such as the holiday grant, at a time when our beneficiaries were unable to take holidays. This did not affect our fuel grants which were paid to qualifying beneficiaries at the beginning of February before the pandemic’s impact.

All grants were reviewed at the Society’s budget meeting and adjustments were made in line with cost-of-living expenses against income. Other changes to the beneficiaries’ financial circumstances were also considered and allowances were made for inflation. The Society shall continue to pursue the objects as stated through the disbursement of grant assistance to necessitous persons who qualify for the Society’s assistance.

FINANCIAL REVIEW

Reserves policy

The Society’s Reserves Policy is dictated by the Memorandum at Clause 3(G), which reads: “To invest the monies of the Society not immediately required for its purposes in or upon such investments, securities or property as may be thought fit subject nevertheless to such conditions (if any) and such consents (if any) as may for the time being be imposed or required by law and subject also as hereinafter provided”.

It was the Society’s continued policy throughout 2021, given the contraction in global markets caused by covid, to attempt to consolidate our financial position. However, during the year it became necessary to draw upon some of our cash reserves in order to meet the Society’s expenditure with particular regard to our core charitable activities.

The Society’s policy of constantly monitoring the markets and using our reserves as and when required, will, we hope, also bear fruit in the years to come, as it has in this extremely difficult year. Although dividend income was much lower as a result of the pandemic we remain confident that the Society has a sufficiently firm financial base that will allow us to continue our charitable activities for many years into the future.

The Society’s Policy towards investments is necessarily fluid to meet the demands of an ever changing market place. Professional investment advice is crucial and our brokers have been asked to provide a prudent and sensible balance between income and capital stability which will allow the Society to meet its current and future needs as identified by the Trustees. Following such advice, the Society, in 2019, raised the limits of overseas investments from 15% to a maximum of 25% and in doing so have assisted in valuable income generation during 2020 and 2021.

The accounts contained within the 127th Annual Report and Accounts of the Society were audited by Cowgill Holloway LLP, of Regency House, 45-53 Chorley New Road, Bolton, BL1 4QR who were re-appointed as auditors during the year.

Your attention is drawn to Note 1 of the Notes to the Financial Statements relating to Accounting policies which sets out the basis of the accounting procedure and both the legislation and the recommended practices under which these accounts have been produced.

It can be seen from the Statement of Financial Activities that income increased from £146,937 in 2020 to £169,403 in 2021. Total expenditure decreased from £398,878 in 2020 to £376,694 in 2021. This resulted in an operating loss of £159,072.

The Society is registered with the Charity Commission in accordance with the relevant Acts relating to charitable status and as such is not liable to taxation on its charitable activities. The Society is also unable to register for Value Added Tax and, as such, the element of our expenditure which is paid in VAT is unrecoverable by the Society.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Report of the Trustees For the Year Ended 31 December 2021

STATEMENTS OF CONFIRMATION

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees (who are also the directors of Liverpool Shipbrokers Benevolent Society Incorporated for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

ON BEHALF OF THE BOARD:

Viorel Raducanescu – President of Trustees

DATE: 20/10/2022 | 3:01 PM BST

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Report of the Independent Auditors to the Members of Liverpool Shipbrokers Benevolent Society Incorporated

Opinion

We have audited the financial statements of Liverpool Shipbrokers Benevolent Society Incorporated for the year ended 31 December 2021 which comprise the Statement of Financial Activities including the Income and Expenditure Accounts, the Balance Sheet, the Statement of Cash Flows 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 Financial Reporting Standard 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:

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 the events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

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 or 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Report of the Independent Auditors to the Members of Liverpool Shipbrokers Benevolent Society Incorporated

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 they determine is necessary to enable the preparation of the 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 charity’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 Charity or to cease operations, or have no realistic alternative but to do so.

Auditors responsibilities for the audit of the financial statements

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 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the trustees (as required by auditing standards) and discussed with the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Companies Act 2006, Health and Safety at Work Act and Employment Law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Report of the Independent Auditors to the Members of Liverpool Shipbrokers Benevolent Society Incorporated

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of the auditor’s report.

Use of our report

This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Alex Hesketh, Senior Statutory Auditor For and on behalf of Cowgill Holloway LLP, Statutory Auditor Regency House, 45-53 Chorley New Road, Bolton, BL1 4QR

Date: 20/10/2022 | 7:37 PM BST

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Statement of Financial Activities including income and expenditure account For the year ended 31 December 2021

31.12.21 31.12.20
Unrestricted Unrestricted
Funds Funds
Notes £ £
INCOME AND ENDOWMENTS
Income and endowments from generated funds
Donations and legacies 2 417 728
Investment income 3 168,986 146,209
Total income and endowments 169,403 146,937
EXPENDITURE ON
Raising funds 4 24,042 22,685
Charitable activities
Direct costs 6 96,347 99,287
Grants payable 7 256,305 276,906
Total expenditure on 376,694 398,878
NET OUTGOING RESOURCES (207,291) (251,941)
Realised gains on disposal of investments
48,219 104,603
Net income (expenditure) (159,072) (147,338)
Unrealised gains (losses) on revaluation of
investments 558,931 (530,109)
Net movement in funds 399,859 (677,447)
RECONCILIATION OF FUNDS
As previously reported 7,186,066 7,863,513
TOTAL FUNDS CARRIED FORWARD 7,585,925 7,186,066

The notes form part of these financial statements.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Balance sheet At 31 December 2021

31.12.21 31.12.20
Unrestricted Unrestricted
Funds Funds
Notes £ £
FIXED ASSETS
Tangible assets 10 17,026 22,678
Investments 11 7,486,516 7,027,122
7,503,542 7,049,800
CURRENT ASSETS
Debtors: Amounts due within one year 12 2,345 2,441
Cash at bank and in hand 89,077 142,876
91,422 145,317
CREDITORS:
Amounts falling due within one year 13 (9,039) (9,051)
NET CURRENT ASSETS 82,383 136,266
TOTAL ASSETS LESS CURRENT LIABILITIES 7,585,925 7,186,066
NET ASSETS 7,585,925 7,186,066
FUNDS
Unrestricted funds 16 7,585,925 7,186,066
TOTAL FUNDS 7,585,925 7,186,066

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Board of Trustees on…………………..and were signed on its behalf by:

20/10/2022 | 3:01 PM BST 20/10/2022 | 7:35 PM BST

V Raducanescu – President of Trustees

P Moss – Trustee

Company number 00153719

The notes form part of these financial statements.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Cash flow statement For the year ended 31 December 2021

Note
Cash used in operating activities
19
Cash flows from investing activities
Movement in fixed asset investments
Purchase of tangible fixed assets
Cash provided by (used in) investing activities
Increase (decrease) in cash and cash equivalents in
the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2021
£
405,595
459,394
(-)

459,394
(53,799)
142,876
89,077		 2020
£
(666,705)
463,299
(29,919)
433,380
(233,325)
376,201
142,876

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

1. ACCOUNTING POLICIES

Basis of preparation of the financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: 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 (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Liverpool Shipbrokers Benevolent Society Incorporated meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) .

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity if legally entitled to the income and the amount can be quantified with reasonable accuracy. The investment income includes all dividends and interest on an accruals basis together with the related tax credits. All income generated on investments is transferred to the General Fund.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading, they have been allocated to activities on a basis consistent with the use of resources.

In preparing the Statement of Financial Activities the Council of Management have calculated direct costs which represents a fair allocation as follows:

Motor expenses, office running costs and salaries 100%

Governance costs include 100% of audit and accountancy fees, bank charges and trustees’ meeting expenses.

Expenditure includes VAT where applicable as this is not recoverable by the Charity. Grants to beneficiaries are recognised when paid. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings 15% reducing balance Motor vehicles 25% on reducing balance Computer equipment 25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Leasing commitments

Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

1. ACCOUNTING POLICIES – continued

Realised and unrealised gains/losses on fixed asset investments

Fixed asset investments are valued annually at market value, in accordance with the requirements of the Statement of Recommended Practice, Accounting and Reported by Charities. Gains/losses are added to and deducted from the revaluation reserve each year.

A transfer is made from the revaluation reserve to the general fund to reflect the recognised gains and losses crystallising upon disposal of revalued fixed asset investments.

The realised and unrealised gains and losses are included on the Statement of Financial Activities.

2.
DONATIONS AND LEGACIES
31.12.21

£
Subscriptions
417
417
3.
INVESTMENT INCOME
31.12.21

£
UK Companies & Unit Trusts
136,927
Overseas companies
24,716
Interest
7,343
168,986
4.
INVESTMENT MANAGEMENT COSTS
31.12.21

£
Portfolio management
24,042
5.
CHARITABLE ACTIVITIES COST
Direct
costs
(note 6)
Grant funding
of activities
(note 7)
£
£
Direct costs
96,347
-
Grants payable
-
96,347
256,305
256,305
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
31.12.21

£
Staff costs
Entertaining
Bank Charges
Auditors’ remuneration
57,258
19
-
8,400
Rent
Other costs
13,800
11,219
Depreciation
5,651

96,347		 31.12.20
£
728
728
31.12.20
£
127,541
12,379
6,289
146,209
31.12.20
£
22,685
Totals
£
96,347
256,305
352,652
31.12.20
£
57,348
44
145
3,600
13,800
16,819
7,531
99,287

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

7. GRANTS PAYABLE
GRANTS PAYABLE 31.12.21 31.12.20
£ £
Grants payable 256,305 276,906

During the year 48 (2020: 48) separate beneficiaries received grants from the Charity.

8. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Trustees’ Expenses

There were no trustees’ expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.

9. STAFF COSTS 31.12.21 31.12.20
£ £
Wages & salaries 47,885 48,416
Social security costs 1,414 1,401
Other pension costs 7,959 7,531
57,258 57,348
The average monthly number of employees during the year was as follows: 31.12.21 31.12.20
£ £
Administration 1 1
No staff member in the year was paid in excess of £60,000 per annum (2020: None).
10.
TANGIBLE FIXED ASSETS
Motor
Fixtures
Computer
Vehicles
Fittings
Equipment
£
£
£
COST
At 1 January 2021
Additions
Disposals
At 31 December 2021
29,919
-
-
29,919
9,405
-
-
9,405
7,416
-
-
7,416
DEPRECIATION
At 1 January 2021
7,479
9,223
7,359
Charge for the year
5,610
27
15
Eliminated on Disposals
-
-
-
At 31 December 2021
13,089
9,250
7,374
NET BOOK VALUE
At 31 December 2021
16,830
155
42
At 31 December 2020
22,439
182
76		 Totals
£
46,740
-
-
46,740
24,061
5,652
-
29,713

17,026
22,678

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

11. FIXED ASSET INVESTMENTS Listed
investments
MARKET VALUE £
At 1 January 2021 7,027,122
Additions 706,712
Disposals (806,249)
Revaluation 558,931
At 31 December 2021 7,486,516
NET BOOK VALUE
At 31 December 2021 7,486,516
At 31 December 2020 7,486,516

At the balance sheet date, investment assets held outside the UK totaled £1,916,531 (2020: £1,728,100).

LISTED INVESTMENTS
Market value of B/fwd
Additions
Net unrealised investment gain
Proceeds of disposal
Realised gain on disposal
Market value of C/fwd		 General
fund
£
7,027,122
706,712
558,931
(854,468)
48,219
7,486,516

The cost of the quoted investments at 31 December 2021 amounted to £5,283,286, (2020: £5,382,826).

Investments were valued at the mid-point of the quotation in the Stock Exchange official list at 31 December 2021.

31.12.21 31.12.20
£ £
UK Government stock 1.25% 22/07/2027 292,809 307,572
UK Government stock 1.25% 22/03/2026 308,965 257,576
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.21 31.12.20
£ £
Other debtors 1,657 1,652
Prepayments 689 789
2,345 2,441
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.21 31.12.20
£ £
Social security & other taxes 1,089 1,101
Accrued expenses 7,950 7,950
9,039 9,051

15

DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

14. OPERATING LEASE COMMITMENTS

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases:

31.12.21 31.12.20
£ £
Expiring
Expiring
Expiring		 in one year
in two to five years
in more than five years		 13,800
55,200
2,300		 13,800
55,200
16,100

15. PENSION COMMITMENTS

The charity operates a defined contribution pension scheme which is non-contributory for its employees . During the year, the cost of the pension scheme was £7,959 (2020: £7,531). There were no contribution amounts outstanding at the year end.

16. MOVEMENT IN FUNDS

At 01.01.21
Net
movement
in funds
Unrestricted funds
£
£
General fund
5,541,769
(159,072)

Revaluation reserve
1,644,297
558,931

TOTAL FUNDS
7,186,066
399,859		 Transfer
between
funds
£
-
-
-		 At
31.12.21
£
5,382,697
2,203,228
7,585,925

Net movements in funds, included in the above are as follows:

Incoming
resources
Resources
expended
Unrestricted funds
£
£
General fund
169,403
(376,694)
Revaluation reserve
-
-
TOTAL FUNDS
146,937
(398,878)		 Gains &
losses
Movement
in funds
£
£
48,219
(159,072)
558,931
558,931
(425,506)
399,859

The revaluation reserve represents the cumulative unrealised gains and losses in respect of the revaluation of the fixed asset investments to market value .

17. RELATED PARTY DISCLOSURES

There were no related party transactions during the year ended 31 December 2021.

18. ULTIMATE CONTROLLING PARTY

Control lies with the council of management.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Notes to the Financial Statements For the Year Ended 31 December 2021

19. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2021 2020
£ £
Net movement in funds 399,859 (677,447)
Add back depreciation charge 5,652 7,531
(Increase) Decrease in debtors 96 3,583
Increase (decrease) in creditors (12) (372)
Net cash used in operating activities 405,595 (666,705)

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Detailed Statement of Financial Activities For the Year Ended 31 December 2021

INCOME AND ENDOWMENTS
Income and endowments from
generated funds
Subscriptions
Investment income
UK Companies & Unit Trusts
Overseas Companies
Interest
Total Income and endowments
EXPENDITURE ON
Investment managed costs
Portfolio management
Charitable activities
Wages
Social security
Pensions
Rent
Other costs
Profit on disposal of fixed assets
Depreciation:
Fixtures & fittings
Motor vehicles
Computer equipment
Grants to individuals
Governance costs
Entertaining
Bank charges
Auditors’ remuneration
Total expenditure on
Net expenditure before gains and
losses

Realised recognised gains and
losses
Realised gains on disposal of
investments
Net income (expenditure)		 31.12.21
£
417
136,927
24,716
7,343
168,986
169,403
24,042
47,885
1,414
7,959
13,800
11,219
-
27
5,610
14
256,305
368,275
19
-
8,400
8,419
376,694
(207,291)

48,219

(159,072)		 31.12.20
£
728
127,541
12,379
6,289
146,209
146,937
22,685
48,416
1,401
7,531
13,800
16,819
-
32
7,479
20
276,906
372,404
44
145
3,600
3,789
398,878
(251,941)
104,603
(147,338)

This page does not form part of the statutory financial statements.

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Schedule of Investments For the Year Ended 31 December 2021

31.12.2021
Nominal Cost Market Value
£ £
285,000 1.25% Gilt 22/07/27 289,565 292,809
220,000 1.25% Stk 22/03/26 275,828 308,965
1,479,591 FIL Inv SVCS UK Moneybuilder Inc Gross 251,228 560,989
8,000 Royal Dutch Shell 10,242 129,792
1,230 Croda International 79,258 124,476
3,300 CRH (CDI) 82,036 128,700
25,000 Smiths DS 88,450 95,950
36,000 Glencore PLC 83,806 134,982
20.000 BAE Systems 56,593 109,960
2,200 Intertak Group 60,919 123,860
4,750 Persimmon 88,778 135,660
5,000 Compass Group 24,450 82,550
2,700 Intercontinental Hotels 53,993 129,087
6,650 W H Smith 80,779 98,420
3,000 Diageo 96,254 121,080
2,700 British American Tobacco 31,778 73,805
1,350 Reckit Benckiser Group 78,977 85,617
3,000 Unilever plc 48,718 118,365
36,000 Convatec Group PLC 81,721 69,534
7,450 Smith & Nephew 84,360 96,366
2,250 Astrazeneca 42,644 195,255
6,500 Glaxosmithkline 22,916 104,429
70,000 Barclays 78,292 130,900
4,500 Hargreaves Lansdown 86,375 60,975
26,250 Direct Line Insurance Group 89,592 73,238

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DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Schedule of Investments
For the Year Ended 31 December 2021
61,000 Legal & General Group 86,267 181,475
10,000 Prudential 17,745 127,450
12,000 GB Group 79,402 88,620
87,000 Vodafone Group 98,647 97,666
19,000 Ishares Core 130,421 136,781
87,569 TB Evenlode 212,377 225,417
110,000 Threadneedle UK 197,356 217,756
1,500 Findlay Park 98,679 150,330
5,270 Invesco 121,997 169,689
4,500 Vanguard S&P 194,917 301,916
95,000 Blackrock Continental 149,406 182,685
43,500 Thesis UT Management Ltd 98,884 112,452
50,000 Schroder Oriental Income fund 137,480 134,250
15,000 Stewart Leaders 119,912 161,588
94,000 Fidelity Emerging Markets 96,598 134,044
92,000 BMO Responsible Global Equity 110,990 171,948
72,500 Fidelity 135,782 162,835
95,000 Fundsmith 117,932 176,691
6,868 Iberdrola 9,378 58,104
100,000 Civitas Social Housing 87,601 96,900
100,000 Greencoat UK 141,100 140,600
60,000 HICL 97,144 105,960
80,000 Int Public Partner 99,621 136,000
115,000 Supermarket Income REIT plc 119,603 140,300

20

DocuSign Envelope ID: D2921B69-ED57-4397-A0B4-728D332D5DCF

Liverpool Shipbrokers Benevolent Society Incorporated

Schedule of Investments For the Year Ended 31 December 2021

725
Invesco
280,500
AHFM		 98,109
94,613
158,386
194,684
5,283,286
7,486,516

21