The William Leech Foundation Limited- The Charity Trust Trustee's report and financial ststements for the year ended 31 March 2024 RegLstered Charity Nu]nber: 111674 The William Leech Foundation Limited- The Charity Trust Trustee's report and financial statements for the year ended 31 March 2024 Contents Directors and advisor5 for the year ended 31 March 2024............................ Rew)rt of the tn]5te¢ foT the year ended 31 March 2024................................ Ethical investment poli¢y aTrdpT8¢ti￿..................................................... .. Risk management slateTD¢nt....................................................................._... .10 Independent auditors, report to the tn]stee of The William Leech Foulldation Limiled- The Cbarity Tn￿t.....12 Statt￿ellt of financial activities for the y&qr ended 31 March 2024........_........ .15 Ba]ance sheei &s at 31 Mawh 2024.........................................................._....... . .16 Ststemeni of accounting wlicies.. .17 Not¢s to the f]tWLcial ststrments for the year ¢Dded 31 Marth 2024......._.... .. .. -19 The William Leech Foundation Limited - The Charity Trust Directors and advisors for the year eDded 31 March 2024 Tru5t¢e The William Letth Foundation LAmi*d Directors of the Trustee Company Andrew Browj OBE FRICS {Chair) Alice Ambrose•Thurmau FCA FCIS Paul Burrage FCA Maureen Dixon Daw8r Dvorak CFA IMC (aptK>inted 27 F¢bn]ary 2024) John Harrison ACA Michael Joynson {apN)illted 27 Febrw 2024) John Marshall Philip Poole FCCA Angela Russell FCA CPA {re$l￿d 27 Febnlary 2024) William Seddon CFA (Setjior Director) Jo]]n Stansfeld Fl MarEST MIMechE Secretary and Registered Offiee Marcia Lant FCA AMCT Ballk Chambers 26 Mosley Street Newcastle upon TyD¢ NEI IDF Independent Auditor5 Azets Audit Services Chartered accoulliants and statyrtory auditOf5 Bu]rnaD House Rcgent Centre New¢asile upon Tyne NE3 3LS BaDkeTS Lloyd5 Bank pl¢ 102 Grey Street N¢wcastle upon Tyne NE99 ISL Solicitors Womble Bond Dickinson LLP The Spark, Dra￿nalls Way Newc&tle Hetix Newcastle upon Tyne NE4 5DE InvestmeDt Managers Columbia ThreadD¢ed]e MaDagement Ltd ExcbaJ]ge House 12 Prinyose Street London. EC2A 2HS Stewart Illve%tors FiDsbury Cirtus House 15 Fin5bury Circus London, EC2M 7EB The William Leeeh Foundation Limited - The Charity Trust Report of the trustee for the year ended 31 March 2024 As tsustee The William Leech Foun¢Jation Limitrd fthe tsusttt" or *be Tn￿e Cornpany"), a company iDcofwTat&l in Ellglalld and Wales. presents its re￿rt and audited finallciai gratements of The Willialll Leech Foundation Limiied- The Charity Tr￿st ("The Charity Ttust" or TTUSW) for the year ellded 31 Ma￿h 2024. The fmancial statem¢nts have beett prepared in accoTdance with the Declaration of Tnts4 the sratement of aCc(￿llI￿g policies set out on pages 17 and 18, tbe Charilies Act 2011 and Accounting and Reporttng by Charities: Ststement of Re£om]nended Practice applicable to charities Preparing their fllMll¢ial statements in accorda1￿ the Fitiallcial Reporting Standard applicable in the UK and Republic of Irelalld published (FRS 102) (effective l January 2019). Legal and administrative InfO￿al]0n set out on page I forn)s pth of this re[￿￿ Strllctur4 governaDce and managemeDt A Declaration of Trust dated 16 August 1960 established the Charity Tn￿ for geneA71 charitable pU￿0$e$. The Trust was Cre￿ed by a gift from the late Sir WilliaTD Leech of sbares inhis building compauy, William Leech (Buiidet5) Limited. A Deed dated 27 Febn]ary 1973 v¢sted th¢ Tn]st iti The William Leech Foundatioll L]￿Iled. In 1976 the ￿lIding company atne a public ¢¢)mpaDy with its shares quoted ott the Londoll Stock Exchange. and its name wa5 ¢baDged to William Leech PLC. Approximately half ofth¢ sbares beld by the were sold atthot tiTne &8 of the flotation rngemellts. tn 1985 the ren￿l￿]ng shares of Willtam Lexb PLC were sold on the tskeover of the company by C. H. Beazer (Holdillgs) PLC. Under the Declarntion of TnLSL the income of this is to be applied forgenera] charitsble purposes. Unlil 1973 the Tn￿t chose to distribute one balf of the inC(￿e of the TnW to The British and Foreign Bible Society, Church Mission S(Kiety, The Meth￿Ist Church itt Britaiti• The Salvation A￿Y 8Dd The Society forPromoting Christiall Knowledge (collectively known as Yhe Five Charities? and one baifto ]ocal and other ]Lational chaTitie5. Jn 1973 this policy was ¢hanged and li was decided to distnl)ute all the T￿￿E's income for tbe benefit of the Five Charities, save in circumstances which tbeBoardofthe Tn￿le¢ Company considered to be exceptional. This policy isreviewed bytheB0￿d of the Tn￿e¢ Compally each fitwicial year. LD tbe past the TnL%t h&8 ¢￿ted the en(kTrwnent fithd for the Wiltiam Leech Professorial Fellowship in Applied Cbristian Theology (8lld I￿$ provided additional fJnancia] support fro)n time to tinLe) alld fmanced other projects in the North EasL The Tn￿ d(*s lloi activety fundraise but sttks to support the WO￿ of the Five Charities through the carefu] stewardship of the end0￿￿￿ent fund. Duting the fjnancial yearended 31 March 2(M>8 the Board of the T￿￿ Companyreviewed the investment objectives and approved the prowsal to Jnanage the ¢Ddowrynent fimd on a total retum basis. Thts removes the constraint of an income et to allow the Investtnent Managers greater flwl)ility ill the choice of inv¢sthients and to increase the exposure lo equities. An application w&$ made to the ChaTity Com]nissionto allow the use of the total return strategy. On 16 May 2008 the Charity Com]nission pr(rf]uced a sealed Order agreeing to the change. The Nominations and Remunerdtioll Conllnittee of th¢ Trustee Company has conttnued to provide a fornial, rig¢)rous and trdllsparent procedure for the appointtDent of dir￿lOr$ io the Board. Memlkrship consists of four direcw ineludiDg the Chair, Senior D]r￿tOr and two othtr direc￿. The m¢mbeT5 thould inclu& at least one iDd¢p¢ndent director and at lea8t oDe direetor from the five noTninated by the Five Charities. The curtent rnejnbers are Andre￿. Browi4 Maureen Dixo William Seddon and John Starysfeld and all served througbout the financial year. Wh¢n r¢cnLitiDg, the Nominations and Retnuneration Committee seek5 to appoint individuals with the lleeessary. skills to make a Fositiye contribution to the Boar4 who are sympathetic to the Trustee Company'5 aims and can make a positive impact on its diversiry. Under the Trusttt Compally's current arti¢1¢s of associatio￿ diredors are appointed for a terni of three years after whith they retire and are elioible for re-app)illtmenL Dlrectors who have served tllore than 12 years ar¢ eligible for re- appointment for further terms of one year. The orJginGlbenefficTary)v4XFiJ* I￿￿￿1<￿￿￿(¥￿5oc￿ty nALUS). th 20J3theparenrb(¥tyofMXfj¢kckldioslreamliAe itsoJxraÈiopswd emerging econornic news. Equities made a strong start in 2024 with market s¢ntimeni SUPPrted by the wwing confidence a￿ong the world's leading economies interest rate4 which had increased sharplybetsveen late 2021 andmid-2023.hadpeaked ond th¢ expectstion tbat central banks. next move would be to begui reducing rates. How¢Yer, tOW￿dS the ¢nd of March 2024, the continued resilience in the US economy aDd j(th mwket b&s causoj some ¢oncern with expectations that iy)rrowing costs would remaill "higher for longev, with rat¢ cllts cotuillg l&er more ￿lY than previously anticip￿ed. Whether central ba￿kS follow through on these experted rdtr cuts is likely b¢ a key variable ill investor sentiment and the sustaillabtlity of the rally in equities in 2024. Th¢T¢ is sthl a significant risk that equity pri¢¢s Could fall if monetary poli￿ shifts from that which the markets are currently &5sUll￿g. ELsewhere, ChÉna's economy continues to stswggle. although it is envisaged that high quality. well maDaged cotDpallies there will continue to wforn] well. La￿¢ US tedmology companie4 tbe so-called "Magnificent r abo domillated Ma￿ets over the year as optimism around ArtifLcial Intelligence {"Al') led to iticre&ses of their share price5. The colU￿bia Threadneedle Res￿nsible GlobalEquity fi￿d iti particularbas Und¢￿erfOrmed in this envimnment the to its inability ￿hOld many of tbe5e stocks in its ESG fund as a result of its ethical SCTeening ¢riteria. The p)tential for fither volatility inwf¢)rn]anc¢ retDaiDS all oll-goingTisk. The Board ofthe TTusiee Company's intention is to hold the investments for the longer terni and as 5llch to ride out ￿lo&sof yo1￿lI1ty. Th¢ investment managers remain of tbe view that the long-term operatioll￿ outlooks of the portfolio holdings are good. In the opinion of the Board of the Trustee Company, the TnLStbas establishedresources and systems whicty under nonDal circumstances, should allow these risks to be ￿Itigatrd to an acceptsble level ill its day-to-day operations. Objectives and activities The objective of the Trt￿t is to generate fiw(Ls for cbaritable purposes and this is achieved by providtng financial support to the Five Charities selected by the founder. the latc Sir William Leec￿ and from lim¢-10-time other charitable projec15. The Board of the Trustee Company confirms that it Iw referred to the Chariry Comjnission's g¢neral guidance on public ixnefit when reviewing the Tn￿t'S aims and objectives is satisfied that the requirements have been met. The Trust provides grants to the Five Charities, whose main purp)se is the advallcement of the Christian religio￿ and the Board of the Truste¢ Compatty receives reports from the Five Chariti¢4 which detail their work and th¢ public benefit arising tberefrom. Fillalleial growth Set out below is a staternent sbowing the growth of the endowment fund siD¢e its creation in 1960: Value of origitial gift of shares ID willia￿ t￿Ch (Builders) Lirnited on 16 A￿8￿￿t 1960 Value of the elldowinent fijnd ai 31 March 2024 81.900 23,612,598 FiDancial T¢view alld InvestmeDt policy FollOwAng approval by the Charity Conhmission, the Trust'5 ittvestmeni Stra￿gY is atots] return approach to th¢ investrnent of tbe pemianenl endowmeDt. The ttusiee believes that the investh)eni objectives Should over the long term enable the InYesttDent Manager to produce greater inVes￿ent returns and so in due course this shou]d lead to ￿eater distributions to the beneficiaries. The William Leech Foundation Limited - The Charity Trust Report of the trustee for the year ended 31 March 2024 (coD¢iDued) tn acwrdan¢e with the temts of the Order, the1n￿ee cOnf]rn￿ that in ideDtifying the value of the p)rtion of the pernjanent endowmellt tbatrepr¢sented unappliedtotsl rett￿ it has identified the value of the initial founding gift in 1960. and when deterniining the amouDt of UDapplied totsl return to transfer to income the trustee has considered the amount of iDcome required to mainlain th¢ wrr¢nt l¢v¢l of SUFPOrt for the Five Charities aDd the likety nttd5 of fitdre beneficiaries. 2nd when reacbing the decision as to the unapplied total return to transfer to inolne, tbe In￿ee tsken professional advice frott) the tnYestmeDt ManageTS regarding the m&ket outlooL investment trends and yield and tbe prospects for fvture pital growth. BMO Global Asset MaDagelltellt ('BMO') wa% a￿]nted in September 2017 to manage the investment portfolio of the TLUSt. BMO invests on a discretionary basi4 subject to the collstraints of the approved ethical investment policy (see page In July 2019 the Tr￿st transferred its inveslments into a Privat¢ S￿FUnd {'R&%erved Alternative Investment Fut￿, or 'RAIF'), which was operated ty BMO under its umbrella fiwd - BMO Investments (Lux) ll FCP-RAIF and blsed Tn Luxembourg for #d￿]nIStrative re&sons. There were tko tsx thanlages to the Tnjsi arising frorn the location of the RAIF. Prior to the traD5fer the Trust, for adEninistrative reason& was lirnited to thrtt fijnds on the BMO platforni. The RAtF investment plarform allowed tbe TnL8t to add firther fimds to th¢ inv¢5tment portfolio. iDcludillg fimds JLOt managed by BMO, which gave greaterdiversity andthe opp(rtthty to increase th¢ totslrerllrn. The Tn￿,5 sister charity-Th¢ William tLech Foundation Limit¢d- The Foundation Tn￿t- was also invested the RAIF. In April 2020 the Tlusiee Company took the decision to invest on a global basi5, COll5traitied onty by the need to invest in line with the approved ethical investment policy. By agreemen4 BMO reduced the holdings in kts UK Equity GroThth Fund over a number of Tnonths, the fmal trdnrhe being sold in January 2021. The TTustre Company's review¢d the 1&8et allocation of the TTUSt duritig 2021122 and agreed Ihat the predomiEJatit exposure to equities remainedappropriate although some wjditiollal diver5ificatiottof fi￿dS would bebeneficial in relation to emerging matkets. Consequently, ill Juue 2022. fimds were inv¢st¢d via the RAIF in the First SeDtierlStewart Investors Asia Pacific Leaders Sustainability Fvn(L On 4 July 2022, followÈng the merger between BMO and Columbia Threadneedle. BMO was rebranded as Columbia Threadneedle Investments and the name of the Investlljent Manager of the RAIF was changed to Colutnbia Threadlleedle Asset Management LtsL The BMO holdings in the RAIF were rebranded Is the Columbia Threatheedle Responsible Global Equities Fund and th¢ ColU￿bia Threadneed]e RespoDsil>le Sterling Bond Fwid. All of the fiJn(ts held are open- ended investtnent companies. Under the RAIF Cotumbia Tbreadneedle I￿1 discrdion to vary the allocation betw¢¢n its global equity and sterling EA)nd fi]nds ￿￿thin pre-agreed limits only. On 5 S¢plember2023 all of the ￿lthOldIng$ tbe Columbia ThreadDeedle RAIF were re4egistered Ènto tbe names of th¢ Foundation TTU5t and Charity Tnjst so the unil in the underlying fi￿d5 are Dow held directly by the two cl￿ritieS and not by the IIAIF nominee. Units are now beld directty by each charity in thc ColuTDbia Threath]eL4Jle ResExmsil)le Global Equity FuniL the ColU￿bIa Threathjeedle Respnsible Strrling CoTporate Bolld Fund and the Stewart Investors Asia Pacific Leaders Sustsinabiliry Fun Since August 2019 and ￿ until 5 September 2023. the distnl)utions to the Five Charities were fimdedby r¢alising units tll the RAIF (to 5 September 2023) and from 5 Septernber 2023 by realising units from the Columbia Threadneedie Responsi￿le Global Equity Fulld. No income is r￿¢1Yed aDd the Funds accuD)ulate their dividends and do not pay ollt any cash. Any diyidends orisillg inthe Fun¢ls will be reflected in theirnet asset values. Fee5 payable io Columbia Threadttttdle alld Stewart Investor5 for managing the invesmTrents are charged against the Funds. The Invest￿ent Man4tsers report to the Trustee Company at quarterly aDdawiual intemls. These reports include econowic and market reviews, tratisaction detsib aDd tMTrrtfoiio valuations. The William Leech Foundation Limited - The Charity Trust Report of the trustee for the year ended 31 March 2024 (continued) The Tnts¢'s wrt is entirely dependent on the itivestsnent renrns from the eudowment fund and the perforn]anc¢ of the investments in tbe portfolio durtng the financial year, is reported below. The global stock markets have Continu￿ to be impacted by geopolitical uncertainty. The war in UkEaille sbows no signs of abating and the Middle East is anew concern with tbe p)t¢ntial for fi]rtherescalation audthreatsto suppty cbains given th¢ ￿￿tInuing disruptioD tothe Red Seasbipping routes. MaTkets over the course of the financial yehr have coped with the impact of infiatiOD aud higber interest rotes as central baJ]ks have atte￿pted io bTing tbeir economies under controL Thereare expectations that interest rates Thill be cut, most likely in the S¢CODd half of 2024 aDd that itrtlation will fall although aTry such fall may be irnpacted if the confiiet in the Red Sea continues for a 5ignificallt peri(¥J of ti￿e. On top of this thue are the challenges to the global econoLlly of clizttste change at)d artifi¢iaJ iDtelligence to b¢ mDaged This all creates an ¢xtremety yo￿11¢ backdrop for investment Ferfom]ance. The markets are th¢r¢foT¢ exExded to Telnain volatile in the sbort temi although the investment tllallageTS believe the long-term operaliona] outl(y)ks of the ￿tfolIO are good and they contlnue to focus oll higher quajity, 5ustsiDable growtb cojnpanies wbi¢h they believe can prtss￿ An spiie of matket volatility. The totsl rettun in theyearended 31 March 2ff24 w&$ Is.￿￿. Thets￿¥teetr30sfer[edatotsI of£771692 fromthe unapp]ied return of the endowm¢nt fund to the unrestricted fund. The tket r¢suh of factOT5 15 that the endowment fi￿d in¢re&%ed ill value from £21,188.888 to £23.611598. Following the change to a iotal return apprO￿h io itivestmenL the trustee Teviewed the Tn]st's distribution policy. The trnstee's obje¢tive w&8 to estabtisb a wlicy that will provide sustatnable alld continuing fu￿¢121 SUp￿)rt to the Five Charities. In July 2011, after tsking profe5SiQDal advice and account of the l¢)llg-ierni nature of the endownent fund tbe trustee establish￿ a new policy that came into eff¢¢t on l April 2012. Distributions are set at 40/0 of the rolling five-year average of the Trust's net ￿et value. The In]sle¢ recog￿ tI￿t in establisbillg tbe level of distribution it bas a duty of fairness towards both preseni and fiJDJre beDefi¢iari¢5- tbe witiciple of inter-genetatioDal owity. Distributions w the Five Chatities ftn the financial year a[￿ounted to £760,5(M) {2023: £705,LM)O). The risk piofile of the Investment portfolio 15 medium to high. Tbe Tntst is a IoDg-teTm investor and the trllstee, ¢)n professiollal advice, remains of the view that atortfo]io weigbted towards equities temains appropriate. The total return on the Frfolio is meawred again￿ the Retsil Prices Index ('BPI') alld a weighted bencbrnark refl¢¢ting the neutral assetallocation. During tbe yearended 31 Marcb2021 the benCh￿ark was adi￿¥ted Éorefle£t the 5tageddisp05al of theUK fvnd and at 31 Ma￿￿ 2022 tbe benchmark comprised 9Wo MSCI World Index and I￿/* iBoL¥ NoD-Gilts Ind￿. Following the itivest￿ent in the Stewart Illyestors Asia Pacific Leaders Sustsinability Fun¢ tbe bencbmark for the PAIF was amended to the MSCI World IDdex alld Columbia Thr¢theedle. as iDveslment manager, was able to deviate from the benchmark in teTms of asset allocation i*Neen its Re5FwiI)le Global Equity Fuud al￿ its Responsibl¢ Sterlitig Bond Fund by more than +l- IIW/o a¢wrdittg to their view olmarket conditions but excluding the Stewart Investors Asia Pacific Leaders Sustatnability Fund Any alloC￿lOn to the Stewart Ittvestors Asia Pacific Leaders Sustainability Fund was excluded frotn this benchmark and its CO￿parable wtorn]ance. The Siewatt tnvestors Asia Pacific Leaders Sustainability Fund included iti the yah￿tion of the totsl its ￿fOrmanCe was as5e$5ed against the comparable itidex as provided by Stewart Jnvestors. Followitig the ttansfer out of the RAIF on 5 S¢ptember 2023 no ass¢t allocation is undertaken by Columbia ThreadDe¢dle. Invdstments In theyearellded 31 March 2024 tbe total rettun ofthe Colutnbia Threadneedle R¢sponsil)le Equity FundwLg 15.7/0 whicb W&5 below the benehmark {MSCI World) tothl return of 23.117/0. The Colutttbia Threa¢￿eedle Responsil)le Sterltllg Bond Fwid's return was 6.5 /0 whicb WL% alxTrve the benclJLnark (iBoxx Non&iits all rnaturities) of 6.10/0 and the Stewart Investors Asia Pacific Leaders Sustainability Fund's return w&$ 4.6YrfJ which was above the benchmark IMSCI AC Asia Pacific ex Japan) reDJrn of 3.(PA. In the financial year RPI and the Consww ￿1C¢S Index ('CPI') rose by 4.30/0 and 3.80/ r¢spectively. The William Leech Foundation Limited - The Charity Trust Report of tbe trustee for the year ended 31 March 2024 (CODtiDued) Over the five-year peTiThI ￿ 31 March 2024. the eumulative totsl r¢tUTU ofthe ColumbiaThre2dneedle Responsible Equity Fund was 72.2￿/fj compared to its bencbmaTk return of 86.95%,. the cumulative return of the Columbia Threadneedle Responsible Sterling Bond Fwid over 5 yea[5 w￿-3.45￿. (the compardtive benchmatk CU￿ulative totsl retun) over tbis period isnot available). Overthe same periiKI RPI alldCPI roseby 34.340/0 md 22.9P/• re5pe¢tively. The Stewart tnvesto Asia Pacific Leaders Sustaillabijiry fijnd has rethmed 5.IQA since investsnellt in June 2022 against the fuDd's own benchmark return of 2.6Yo. Reserves policy At 31 March 2024 the balance in the unrestricted fimd w&8 £6,307 (2023: £6,307). This balallce was used to fimd part of the distribution io the Five tharities in April 2024. The policy is to hokl si￿lfiCallt SU]DS in the w)restricted funiL so 8Ximi5ing the amount in the endowment fi￿dth* can be investrd. The InveslmeDtManagers are inforniedof the amount to be transferred from the unapplied renmi element of the endO￿Tren1 fi￿d at the stsrt of each fmancial year. Withdrawals ore spread eventy over the fiuallcial year to fjjnd the monthty diSth￿￿tIons. This policy is reviewed aut)ualty. Plans f(+r future periods As noted abov¢, on 16 May 2￿8 the itivestrttent thiectives wae changed to allow the usc of a total return strategy. The dtrectors believe that the totsl return iDvesttDent objectives should enable the Inv¢strnent Managers to pro(kn¢e greater investment returns and so iD thi¢ course this should lead to greater distrbuuons to the beneficiaTies. The directors of the TnLStee Company have agreed that the distributions to the Five ClwtÉies it) the yw endiDg 31 March 2025 will amount to £800,010 (2024: £760.500). The Trustee CompaDy reviewed the diS￿l)Ut10n policy in February 2024 and concluded tbat it remained appropriate. The next fortnal review Thill tske place in the year ending 31 March 2027. The Tn￿tee Company ¢xpects the geO￿litIcal landscape to Ten￿]ll chall¢ngiDg in the shorttenn to mediwn temi, with the on-going war in Ukrain¢ and concerns ab￿1 fijrtber escalation ID the Middl¢ Fast along with elections happening across major economies in 24125. The Board of the Tnjstee Company will continue to TrEollitor investtnent perfomiaDce closely tsking into account this elevated risk profile. The TnLSt's distrliution tM)licy should d3￿pert the ijnpact of volatility on the distnbutions to the Five Charities and a divexsified wtfolÈo. the Trust should be well-placed to provide incre&sed support to the beneficiaries in th¢ future. The current Ethical Investment p)11￿ and practices statement can be found o page 9. Statement of trnStee's responsibilities The Trustee Company is reSE￿i￿le for preparing the Inth's report and the fu)ancial statements in accordanc¢ with applicable law and regulations. Under that law the trUSteeh&s prepared the f￿an¢]aI state￿eThts ill a¢¢ordantt with UnitedKingdorn Accounting Standard5, ompKi5ing FRS 102 "The Ftnancial Rwning Sialldard applicable ill the UK and Republi¢ of Ireland" and applicable law (United Kingdo￿ Generally Accepted Accounting Pr&tice). Under that law the ￿ste¢ must llot approve the fjnancial statements unl¢ss il is ￿1Sfied thatthey give a lrne and fair view ofthe statr of the affairs of th¢ TTUSt aDd of the incomiDg resour¢¢s and wlicatton of resources of the Tn￿l for tbat perio& Ill preparing these fujancial State￿£llts, the th￿tee is r¢quir¢d to.. select suitable accounting p)licie5 alld then apply them conststently" observe the methods and piinciples in the applicable Cbarities So￿. mak¢ JUdge￿ents and estittth that att re850nable and prudellt" stste whether FRS 102 "The Fitkticial RewrtiDg Standard applicable in tbe UK and Republic of Ireland" bas been followed, subject to any tllaterial departures di5¢105ed and eAp]ained in the financia] staiements. and prepare the FU￿1¢ial 5￿te￿ellts on the 80illg concern basis unless tt is inappropriate to presume tbat th¢ Tnjst will continue in busilless. The William Leech Foundation Limited - The Charity Trust Report of the trustee for the year ended 31 March 2024 (continued) Th¢ trustee is r&wnsli )le for keeping PToper accounting records that disc]ose with reasonable accuracy at any lime the fjnancial tK)sition of the Tn￿t alld enable the ITUStee lo ensure that the fiDaDcial statements cotnply with the Charities Act 2011, the appticable Charity (Accoi]Dts and Reports) R¢gulatiOn5 and the pmyisions of the Trust Deed. The t￿￿te 15 also responsi￿1¢ for safeguaTding the L5sets of the In￿ and hence for taking re&%onable steps for the prevention and detection of fraud 8nd other iTr¢gukn¥. Appointment of auditors A7£ts Audit SerYi¢es bav¢ indi￿ed th¢iT willingD¢S5 ty 5taDd for Ttapp)inbneot * the fortbcoming Annual Genernl Meeting. A resolution for the r¢-winttnenl of Az¢ts Audit SeTvices &5 auditors of th¢ TTUSt is to be proposed at the fortbcotning Annual General Meeting. The Trustee Thishes to on record its that]ks to Marcia Lant and Lindsey Nicholls for their s￿pOrt which has wbled their WO￿ in supwTrrt of the Five ￿arItieS. Approved by the ttustee and signed on its behalfby: Andrew BrosvD Director Willialn Seddon 2024 Tbe William Leech Foundation Limited- The Charity Trust Ethieal investment policy and practices for The Charity Trust (as approved by the truslee on 7 February 2023) Our policy is to invest in a rna[￿er wnsistent with the promotion of the objects and priD¢iple5 of the Five Chariti4S. We aim to strthe a balance between investitig iti ways tske account of Chri5tiaD principles and ethical consideratiODS and securing strong rmanc1￿ returns for the Five Charities over the long terni. li is our opinion that in the long terni an ethical investment wb]icy along the lines set outbelow is unmoely to be of sigDificant detriment to rat¢s of illvestment ret￿71. We have prepared this pojicy itt consultstion with the Five C￿￿￿tieS but recognise that this policy is ultimatety the responsibility of tbe directors. Our policy takes into ￿cOUnt the Church of England Ethical Inve%tsuent Advisory GTOUP (EIAG)'s Sts*ment of Ethical Investtnent Policy in the selection of our investllJ¢Dts. We believe that thi5 guidance broadty reflects the Christian ethical perspectives of the Five Charities and that it is helpful to draw up)D EIAG'S ex￿]Se tn suchmatters. The EIAG guideline5 ar¢ aly> readity availabl¢to our tnvestment Mallag¢rs and will therefore be a helpful and clear N)illt of Teference for them. R£cognisillg that we should not bind ourselv¢$ absolutely to the vi¢w5 of an cxterna] I￿, we will review EIAG guidance m a regul￿ basis to a$￿S how it remains appropriate for us. paitiLvknrty &5 majoTllew arw of exclusion brougbt in or as existing r¢5trictions are reconsidere Expertise in Envirtinmentai Social and Governanee iuvesthient issues is one ofth¢ criteria we use to sele¢t our Investment Mamagers. we will also considerthe ethical cred¢Dtia]s ofthe Investsnentmanagers then￿1ve5 ift makingthat appointm¢nt. Througb our tne)nbership of th¢ Cburcb Investors GrOll￿ we will shar¢ ourttrspectives with otheT like-minded illvestors and togetber will aim to encowdg¢ cornpaDies to ￿fOrnI in an ethical and rq)onsil)le manner. Caslt investments When making cash dep)sits we will not use 8ny bat￿S in whose sh8Trs EIAG would recommend we sknllld not inv¢5t. Colleetive investments The portfolios of The Foundation Tn￿ The Charity TrusL the William I£ech Research Fwid and William Leech (Tnvestments) Ltd are invested in collertive illvestnient fijnds. Th¢ ethical iDvesttnent policies adopted by these fifftdg broadly coDJply witb EIAG guidelines. We will conttnue to liaise with th¢ uwiagers of these fiujds Ind monitor any clllllges in theiI ¢thi£al investment poitcies. There will be times when it is prudent tohold other collective illvestsnents in orderto a￿£$$ less Iiquid parL8 of the rnarkets and a¢hieve adequate diYersifi¢atiOll WAthin our portfolio, for eXa￿PIt to Anvesl in smaller cornpanies or companies listed in less developed countries. W¢ re£oguise, however. that there are particul& challenges in screening the ethical credentia15 of all tbe component parts of some collective investments. We will th￿efore review regularly the rationale for suc Av¢sttllents and the extent to which they may include holdings that would nonnally be excllldedby EIAG guidelines. We will also liaise with investment malthgers over their holdiw and will moniior the implementation of their policy. Monitoring a￿d reyiew We will ]nonitor our adherence to these prnciples and tbe finallcial impact of this ethical invesknent policy annually. If the f]ndings of our periodic review show a significallt detrimenral impact that 15 expected to persist in the long term. thell we will discuss with the Five Charities whether OT noi the tK)licy should be aThende￿ In additio￿ if the Board decides to challge its investment appro&h and return ￿ a direcdy held inveslm¢nts, this ￿lleY will be reviewed updaÉed accordingly. We will fornially review this p)IiLy as a whole every three y¢8rs. More information about EIAG and its policie5 tllay be found at: ove eeletbical-tnvestmeDt JA¥ww.cburcho alxiubleaders The William Leeeh Foundation Limited- The Charity Trust Risk management statement The Trustee Company's approach to the mallagement of risk is designed to enable the Board to proactiY¢ly identify and Jnanage risks to support tbe achievement of the TnL8t's objectives. The Board is responsible for ensuring that adequate systems of risk nwiagemeni are in place and that it bas a consirfent appetite for risk alld that th¢ level of risk is conllnensuratt with achievement of its objectives. A key part of the pro¢e5s is the maintenance of a detsiled Risk Register, which is reviewed regularly ally sIg￿ficant d)anges being Tewrted lothe Bort The Board has identified a number of key risks and th¢5¢ att set out b¢low together with an explan&ion of its ￿ltigatIon strategies and ass¢sSULent of each TisL KEY RISK AREA MITIGATION STRATEGIES l. InvestmeDt risks a) Mw¢roeconomic and m*rk¢t Conditions {including ￿th¥JIg¢ rat¢. inkrestratr alld JDfiatioD risks} could raluce our ability to deliv long.tertn real ￿ ofincome lo ourbenefici*ie Alth￿¥b we 8lway5 k CA￿S￿l lo short-trrw JJJ8rkd volatiltty, we base distribthionson ourrollmg flve-year avernge nel v8lll4 wbith hejps trt smooth th¢ It￿p￿ of sh¢Kt.ternt Jtwkd Ow investmetsts are held ID weU4Jivasified fund& whith t4)mprise glob8J equiti¢S and 5terlin8 to srKtad ri￿. The Board cottsideT5 that a globvlly diversified rtfolio is aE(KMI hedge a8￿￿&the Inacr￿o[LoMIc and rnarket risks. a long4enn itivestor we cOn￿loUS]y hold a high weighting towards equitie& as we bcli¢v¢ thi5 offers the b&%1 pr05pe¢ts of pmiectiDg our elldowTretLt itjflation and deliverÈtig re41 growth OVeT the long tenn. M05t of our invtsttllents catt be liquidated oily itt the short t¢1￿ ¢nabliDg us to in short-terni dIStri￿tionS th'en int￿e$l or divideDd rates are low. We do not bedge CUTTEDCY risk be£aus¢ ￿lIeve the ￿sts of doing $0 outweigb the F*ll¢fi￿ gi￿¢n our liquidity attd long-term PJ5FectiVC. in uATO1'nÈo￿{htAf1ddleEtw reduc1￿ olihou*h niuhigherlhun centrul banks. high ivlerth T￿eS on*oingge￿polI11crtl uncÉnalnty. Be￿5¢￿I￿¢10Th￿￿rn1 mmreoJo¥Tendow￿ttr￿I￿0Mr￿lNlity tosnwtkJ70 ofthcoHY&¥ beAeJ7ckn?e& webdievejveiireirt u8oodp05ilion io Tideout5horter- 1ermj1H￿￿￿OnsQhd1ht1lsk1nec0￿tsNHCOndiNqr￿￿cQ￿rf$I￿￿ Thégeopolhical Iandscw h weded chiiUen¥lng th the short ierry with elÉ(*OnS hoppeniKg aLTOSS nwiorteOnOmTe5 in 2024K25. The frn5tee io b) lllYtstmeDt Manager rtsk Underperfortn8￿C¢ by maoa8¢r reduc£ the we are able to detivcr. We tompate the Ma￿%￿$, pfonnaDCt agairLrf extrTllal benchmark% to he]p hold thetD to &eOUDL Our[￿litY is to out regularTr.tenduittg exercise5 forinves1ment mywtment Follo￿]￿8 Portfolio Evaluation LirDitcd's decisiott to Clo￿ its b￿sinesS. JnaJ)qics were apEK>lnttsltocontinuetopro￿dtan independellttneasu￿ of itivestmetlt return& the rib* betttg njo and the level of actiTre oj*)agement. This assists us in assessing wbethcr. our portfo]i0s meet thew objectives. the futyjs b¢i*)8 D)auaged exp￿. wjd whether ￿.¢ have efficient mix of manag¢TS. The Jyerfornwnce of the BMO/Columbio Thre4theedle manoger since in SqKeml*r 21117 beÉn sttthfaaory ond hod up unill 21122Q3 creeeded ihé However Éhere havé been 5ignificuhi IlWlTk¢t ch&lleAges 1operforn￿ntt irt lallyear l￿di￿￿ a4FreMyeaT andihe 04dook rtmoins iv pgrffjrn*￿ee has been seen IA ihe l& quther of 2021Q4from Columbiu ThTeadneedl& Jnve51oFS hove ￿1¥rtÉd well since the inu￿1 in June 2022. Tke Investsvent Comnutlee io The William Leeeh Foundation Limited- The Charity Trust KEY IUSK AREA MITIGATION STRATEGIES 2. Govtrngn¢e altd key personDtl rLsks a smatl organi5ation we have a higherihats average dependenry on o two Tllefflbers of stalt attd rely ott having wfftcient speciali# ex￿tise on ourBoard. Ap￿l￿tIllg Sfl ]Ddcp￿deDt dirwrs allows 4)ecifi¢ skills tr) be ￿cruI￿] where th￿¢ are not already in pla(r thmugFL our five clwtty.uoJnitiated d]r￿￿r* An annual Board Self-&&%e￿1art pmcess tsk￿ plxc to mOTLitor the qualiry of OUT governallce. Careful d(xumartation of pr(Kalurcs ond records hds br¢n set w) to etthl¢ new filad￿Se[S to pick up infmation quickty sbould our l¢ave ￿ bc slilLfwereiiddedththéBo&rdolthe Tnutsecorytsttj inFebruury2024ffofiirther 3. Fraud We ned io ￿ vigilaut th)ut the risks of iDternai ¢xt¢rnai fr8ud itnpaciing urx>ll our oFKratioll4 and ert￿re our funds are us&J forth pr(4)ercharitable PUTpose5. Two si8tiaknri&8 are required all chques ill excess of £l.W). (kn.lll)¢ paymentsrequtre & se£ondauthori5er. AuthoTiwJ *gy)8tory liys are beld by illvest￿￿rt Jjjawers with two signabJTCS uited for aDy withdrdwals. EY*rnal audtti>Th aJE look (Njt for pot¢nti21 rna(￿1￿ iTregul8riiies atld have diT#ta¢tessto theChatr&8well&sr¢portiDg wifically onthi5 The2chye8J. We pla(E reli8￿¢< on the sygett6 and iDtrmal audil op¢ratioJJs of our b&ukers lllvcstrtlart MaJwgcr5 4$ TEgulatcA trM)dies. We reTriew the anuual fill9￿¢1￿ s￿￿)ellts of OUT ben¢fici¥Ji¢s to en5w¢ they continue to use our fitT¥Js for apwopriatr cbaritable purpose A&￿￿e￿.. IP7tlrin iheprudicjl constrqints of o smqu Orzani￿. we believe we toprrnifv¥& 4. Reputation81 Ti5k willia￿ Le¢¢h itself is a rel￿1Vety Iow-PTofLlt organisatioty bui o policies alld b¢havii¥Jrs cou]d impaLt on the reputstion of the Five Cbarities as ow beneficiarÉ¢5. Wehave adopted attd implemenied zncthid iDve5trrL¢Dt w>licy in co[L￿1￿tiOn with the Fiv¢ Ckntits and aim to follow the T￿￿[[￿¢nd8tsonS of the Chur¢h of F*d'5 Ethicoj Investmthi Advisory Group (EIAG). We maitltsin high pmfessio]Jal staDdarts in our hatLdlttLg of ￿latIo￿thIpS with profcsfionaj a(h75¢T5. Assessrnatt.. Glven thor wefollowdhicolgwidellnlv Éstobltshedby the EL46, we consider il Mhlikefy. Ihw the leech benefoc1i0￿ would be theptirticulur htrch*rch InV￿or5 th *i&trongerpobciu speufic oreA& t l#srfornwl of the FtshAcd Jnvellme￿pol1LY by the Trustee Coryfj iookplaceon 7FebTh￿y 21P23. nÉpolio sroemenl Is also rÈvlewédoKnu￿lly by lhtJnvejtre￿Co￿￿￿￿et￿b￿dB0ll1dIo t￿S￿re￿allITe￿￿l￿%llp Thenal lornwl rebwv ofthewll¢y wUIMkeploteln thefvaN¥olyeorthding 31 MaT¢h 2112 The William Leech Foundation Limited - The Charity Trust Independent auditors, report to the trustee of The William Leech Foundation Limited- The Charity Trust Opillioll We have audited the financiaI statements of The Williarn Leech Foundation LimT*d- The CFwity Trnst {the 'charity') forthe yearended 31 March 2024. vthtch comprise th¢ State]nent of Fitwicial Activities, Balan¢e Sb¢et and Notes to the Financial s￿eMents. including a summary of sigtsificant accounting rA)licies. Th¢ financial reporting framewo￿ that has been applied ID their pr¢paratiOD is United Kingdom AccoulltiDg StaDda comprising Charities SORP- FRS 102 The Financial R¢porttng Standard applicable in the UK and Republic of IrelaTtd' alld applicable law (United King&)m Generally Accepted A£counttno Pradi¢e). In our opinioll the ￿#￿¢121 wements: give a Irue and fair view of the stste of the chariws affairsas at 31 March 2￿24 and of its illC4)millg resources aDdapplication ofmurces, includillg its iDCOm¢ and expendibjre forth¢y¢arthenende4L' have been property prepared itl aco)rdallce with Unitd Killgdom Generally A￿epted Acco￿ting Practi¢e" and have been prepared in accordance with the requirements of Charities Act 2011. Basis for opinion We conducted our audit in accordance with tDternatiODal Standards on Auditing (UK) (ISA5 (UK)} aJ]d applicable law. Our r¢s￿nSI￿]I1tleS under thos¢ standards are fi]rtberdescnbed ￿ tb¢ Auditor's reS￿nSibilitieS for the audit of the f]nancial ststements section of our Teport. We are independent of the Chariry in accordance with the ethical r¢quir¢]Dents that are relevant to our audti of the fowicial statements in the UK ijkcludiDg the FRC'S Ethical Standrt and we have fulfilled our other ethical resp)nsibilities ID accordance with these requirements. We believ¢ that the audit evidence w¢ bav¢ obtained 15 sufficiellt aJJd appropriate to provide a basi5 for OUT opinion. ConclusioDs relating ¢0 going concern In audiiing the financial ￿ateMents. we have toncluded that the tr￿st¢e'S use of tbe going concern b&8is of accounting in the pr¢parntioll of the fmallcial statements is appropriate. B&sed on the work we have FKrfornie(i we have not identified ally tttsterial uncertaintie5 relating to events or collditions tha¥ individually or collectively, may cast significant doubt on tbe charity's ability to continue as a going concern for apericd of at least twelve months from when the origillal fmancial statements were authorised for issue. Our responsibilities and the responsiThi]ittes of the tslLs*es with respect to going concern are described in the relevant sections of this ttpott Other information The ts￿Stre is responsible for the other infonnation. The other ittforniation compTiS¢S the infomiatioll included the annual reFrt other thaD the fmaTrcial 5fat¢ments attd our a￿lItor'S report thereon. Our opinion on the f]nantial siatements does not cover the other iDfoTmation an¢ excepi to the extent otherwise explicitly stated in our report we do not express any fomi of assurAnce colltlusion thereon. In ¢onnectioll with our audit of th¢ fwallcial S￿￿]nents. our responsibility 15 to read the other information an¢1 in doing so, consider whether the other infotmation is materialty inconsistent with the fjnancial Stat¢￿entS or our knowl¢dge obtsitied In the audit or i)therwise appears io be materially ￿15st#tE The William Leech Foundation Limited - The Charity Trust Independent auditors, report to the trustee of The William Leech Foundation Limited - The Charity Trnst (eoDtinued) If we identify such material inconststencie5 or apparellt material misstst¢tDents, we are required to detetinille whether there is a ￿￿er[al miSstate￿¢￿t in the financial stat¢￿ents OT a mal¢rial misstatement of the other information. If. based on the work we have wfonne¢i we conclude thatth¢re is A material misstatement of tbis other illfornlati0￿ we are required to rep)rt that facL We have nothing to report in this regar Matters on wbicb we are reqllired ¢0 report by ¢Jc¢plioD In the ligbt of our knowledge and understanding of the clwity and its environ￿ettt Obtain￿ in the cowse of the audiL we have not idelltified material misstatements in the Tn￿tee.5 Re[￿L We have nothing to re￿rt in respect of the followiDg uotters wbere the Charitie5 Aci 2011 requires us to report to you if, in our opinion: adequate accounting records have not been or reDllmS adequal¢ for our audit have not l)ee received from branches not visited by us" or the fi[￿nCIal statements are not in agreement with the accounting records aDd rettmis. or ¢rtain disclosutrs of trustee's remwieralion specified by ]aw are notma(k" or we hove Dot received all the i￿OrnIa110n and exp]atiationswe require for ow auditi R￿ponsibIlitieS of the Irustee As explained more fvlly in ttL¢ Ststejnent of Tnth's ReSw)nSi￿ilitles (set out oll page 7), the trustee is respoDsible for the preparation of the financial ststements and for tging satisfied that they give a true Ind fair View, and for such internal control as the trustee deterniines is necessary to enable the preydration of fjnanciai statements that are free from material missthtelneni whether due to fraud or error. In prepaw the f]nan¢ial statements, the tsustee is responsi￿1¢ for a4essing the chatity'5 abilty to conttnue as a going concenL d￿clOs]ng, a5 applicable, matters related to going conc£rn aud using the going coneern basis of accourtting unless the trustee eitber inten¢l8 to liquidate the charÉty or to C¢￿ operations. or have no realistic IterDaiive but to do so. Auditor's T¢SPQltsibilities lor tbe audit of ibe finalldal statements Ollrobjeciives are to obtain rea5(M￿le &4SUrd￿ab0UIWhether the fitwlcial siatements as a whole ate free from ￿￿trial missthtemenL whether due to fraud or error. aud to issue all auditOT'S re￿rt that includes our opinion. Re￿onable assurance 15 a higb level of ￿urallCe. but is not a guardlltee that an audii conducted in accordance with ISAS (UK} will ahvays detect a ￿￿terIal misstatement when it exists. Misststements Can arise from fraud or e￿or and are considered material if. indiyidualty in th¢ aggregate, they could ￿50D8bty be eX￿ted to influence the economic decisions of usets tsken on the b&5is of these f]Dancial statements. ItTegularities, illcluditig frau¢L are inslonces ofnoll-compliance with la￿S and regulations. We design proced￿eS in line with our responsibilities. outlined above, to detect material mi&%tstem¢nts iti Ttspect of irregularities. itictuding fraud. The extent 10 which our procedures are capable of detecting iryegularities. including fraud is detailed below= EnquiTies with AnanagemenL about 8lly known or suspected instsDces of DOn-C(￿lp]ianCc Thith laws and regu]ations and fraud. Revi￿ving board n)inutes' Challenging assumptions and iudg¢ments made by maDagement in their significant accounting e5titnates' and The William Leech Foundation Limited - The Charity Trust Independent auditors, report to the trustee of The William Leech Foundation Limited- The Charity Trust (wntillued) Auditing the risk of rnanagement ovetTide of CthLtrols, includi￿g through testing journal ¢Dtries and other adjusttneDts for appropriateness. BeCa￿e of the field ill wbich the cliellt operates, we identifRd the following aT¢aS &8 those m05t likely to bave a material impact on the financial ststements: Health and Safety. anti- bnbery and t(￿l￿ptIon. and wmpliance with the UK Chatities Au. Owing to the inh¢rent limitati(TrDS of all audi( thu¢ is an wwvoÈdabk risk that some Djatuial llJissta*ments in the financial Statements may not be detecte(L even though th¢ audit is property planned and perfomied in cordance with the ISAS (UK). For instance. the fiuther removed non-compliance is fro￿ tbe events and transactionsreflected inthe financial statements. the less ￿￿elY the auditorisio becomeaware of it ortorecogllise the non40mpliance. A further dewiption of our r4M)nsJ)ilitses for the audit of the finaDcial Yatements is located ¢)n the Financial RePort￿￿g Council's website at www.frc.trg.uklaudil(rnWi￿IjitscS. This description forn￿ pgrt of our audiiorfs report. Use ofour report Thi5 report is made solety to the cTrwity trustee in accorda￿¢¢ with section 144 of the Charities Act 2011 and regulations made uttder section 154 of thal ACL Our work ha5 kn undertaken so that w¢ migbt state to the trustee thos¢ rnatters we are required to slate to the t￿￿¢ in an auditors, rqx)rt and for no other purpose. To the fullesl extent p¢rnitted by law, we do not accept or assume respon5bi ility to anyone other thall the clwity and its iThslee for our wdit wo￿, for this retMKL or for the opini4)Ths w¢ have fornie Simon Browi BA ACA DCbA (Senior Stthtory Auditor) For and on beFLalf of Azets Audit Sentices Chartered Accountants Starniory Auditor Buhttan Ho￿e Regent Centre Gosforth Newcasile upon Tyne NE3 3LS Date.. 9]9/g4L Azets Audit Services is eligible to act as auditOT in trrnis of Section 1212 of the Companies Act 2006. Azets Audit Services is a trndillg name of Azets Audit Servic¢s LTmit 14 The William Leech Foundation Limited - The Cbarity Trust Statement of financial activities for the year ended 31 March 2024 Unrestricted EDdowtDent Totsi funds Unrestricted EDd(Trwment fuDd nd 2024 ffijnd fjjnd Totsl fimds 2023 Note llleome Investment IU¢OllLe ¥469 21469 Total illunxts ofth¢ underlying fijnds by the itivestment managas. The T[￿8t does not awTre put optioDS, derivatives or other complex fmancial instruments. The tnain fomi of fjnancial risk faced by the Trust is that of volatilty iti equity and investment markets due lo wi¢kr ec¢)DOrniC Conditio￿ the attl￿de of investors to inve51ment risk. and ¢]￿ngeS in sentiment concerning equitie5 alld within particular sectors or sub-%ciors. All gains and IITrs5es are tskell to the Statement of Financi￿ Activities as they ￿]Se. Realised gain5 aod losses on investments are calculated &$ the difference betre¢n 5aks proceeds and their 0￿1]ng callyiug value or their purchase value if acquired subsequellt to the fitSt day of th¢ flltsncia] year. unreali￿ gaiDS and Ios5e5 are ca]wlated as the diffeTenee between the fair value at the year-end and their tanying value. Rdised and unrealised gains and losses at combined in the Ststement of Finallcial Activities. Fund aecounting The Tn￿tha5 a single elldowThellt fvD¢i which provides forthe tll￿eeto itivestthe capital in perpetillty and is ll)allaged oll a total retUTn b&sis. The tnLsiee at its discretion may allocate any part of the unapplied ￿tal return to the unrestricted fi￿d of the Trust to be used for clwitsble pUry)0s￿ in accordance with the Trust Dee(L The wJr¢$trtcted fijnd compri5¢s the cutTent ass¢ts and liabllitses tbat th¢ tEUStee As free to use iti accorilante with the charitable objects. b) Foreign eurreney The TEUSt's functional al￿ presentation o]rrency is the P)Ut￿ st¢rlin Cash now ststernent The TTr￿t b&s taken advantage of the cxemption available ￿ small entities fro]n prep￿Illg a casb flow statement undtr section IA of the Fitiancial Reporting Stslldard applirable in the UK and Rwublic of Ireland (FRS 102). 18 The William Leech Foundation Limited - The Charity Trust Notes to the Financial Statements for the year ended 31 Mareh 2024 Taxation The Charity Tnju is a registered cbarity and its non-lraditig Atic(Mne is ¢xempt from taxation. Anatysi5 of expenditure on ebaritable activities Th¢ followitjg pa>inellts were made w th¢ Five CIthTitits during the fllwicial year. 2024 2023 Payments to beneficiaries: The British and FIX¢1￿ Bbi le Society 152.1 141.0(M) Church Mission S(*i¢ty 152,10(1 141.000 The Methodisi Church in Britain 152,11)0 141.0 The Salv*ion Arniy 151100 141,0(M) The So¢iety for Promottng Christian Knowledge 152,100 141,000 Tolal paymtnts to beDeficiaTi¢5 760AOO 705,000 Gov¢rngnte Costs: Audit Ser￿CeS 4.140 3,840 L¢gal and professional f¢¢s 7,727 2,859 Directors, indemnity insurdllce 325 471 Total governance costs 12,192 7,170 Tothl txpenditure ebaritable 3CttYities 772,692 712,170 The trustee has decided to meet all governallce costs from wJr¢strided fimds and so Do ail(Kation oi clwge is ade to the end(TrwThent fulld for any governance rela￿d costs. Trust¢¢'s remuneration The trnst¢¢ did not receive and was not elltitled io any remunerntion attdexpenses in respect of its servic¢s during the flliancial year (2023: £nil). Th￿¢ were no enjployees duruig the financial year (2023.. llone). 19 The William Leech Foundation Limited - The Charity Trust Notes to the Financial Statements for the year ended 31 March 2024 (eontillued) Fund transfers A Charity Conllnission Ordergrdnted the powerof investing on a totsl rebm b&5is oll 16 May 2008. Atthe time the power wag granted tbe idelltified the value olthe gift of pemiallent endowDentreceived in 1960. Th¢ difference betweett the value of the endowment funds as at 15 May 2(M)8 and the vdue of the gift compom)t TepreseDted tbe opening balance of mwylied retUnL Th¢ power pem]its the lThstee to invest P¢Tmanently endowed to m&xiJnise total rebjrn and to apply an appropriatr p)rtion of the unapplied totsl return to income each ftnancial year. Until the power is exercised to traDsfer a p)rtion of unapplied tothl return to ]llCo￿e. the wwlied totrl retLEm remain5 invested as part of the penllallent endowment. The power all¢)w5 the trustee to decide it) each ￿8￿cial yearhow Luuch of the UDappli¢d total return is transfe￿ed to income fimds so avafiable for expeD¢Jiture. Having c¢)nsidered its obligations under th¢ duty of even-handedness betm'een present and fijture b￿erIc13[les, the made a tronsfer of £772.692 of uD4)plied iotal rettjrn to wwestricted illcome ffi￿ds. Thi5 de¢ision is in a¢cordance the distribution EK)licy established ill Juty 2011. 21124 2024 Unapplied Endowmellt total rethrD 2024 Total Opening value of ¢DdOTV￿ettt Gift component of pernjonent endowment 81, 81.900 Unapplied total rettlln 21.106.988 21,106.988 Total 81,9( 21,106.988 21,188,888 MovemeDt in unapplied total rethrD aDd endoThilleDt in ¢b¢ year: 3.139,278 3,139,278 Investm¢nt rehrn: dividends awllnulated 24.469 24,469 AMC rebates reinvestrd 32,655 32.655 Total 3.196.402 3,196.402 Unapplied iotal return allocated to income (772,692) (772,692) Net ￿0veMent in reportiDg period 2,423,710 2,423.710 Closing Yalue ofperm8neDt elldowment Gift component of pernwent ￿doWment 81,9 81,9￿> Unapplied totsl renun 23,530,698 23.530,698 Total 81,W) 23,530,698 23,612,598 The William Leeeh Foundation Limited - The Charity Trust Notes to the Financial Statements for the year ended 31 March 2024 (continued) Inveslmenls 2024 2023 Markd value at the begÉnntng of the firnancial year Sa1¢5 procee&% from disposals 21,185J76 23,043.552 {770AOI) (711,000) Additions at cost 52,947 Gain￿(lOSses) in the financial year 3.139,278 (1,147,176) Market vakne at the end of the fitLancia] year 23,007,10 21,185,376 Investtnents at market value comprised: 2024 2023 Cash held global equity funds Global equity funds 508,449 21532074 20,359,146 SteTIiDg bond futtds 349,845 317,781 Asia Pacific equity funds 1,724J81 Market value as at 31 March 23,607,IIKI 21,185,376 Historical cost &5 at 31 March 13W6292 14.3(K).816 Investments ar¢ carried ￿ fair value. Inveslm¢nts in equities and fLxed tnt¢r¢st se¢uriues are all traded in quoted public M￿kets. Holdings in unit tsusrs and open-ended inYesDnent companies are valued at the bid price. The b&gis of fair value for quoted inyesthients is equivalent to the m&tet value, using the bid price. Assel sales and pjrebases are ￿¢ogDis¢daI tbe date of trade. In 2022r23 theAsia Pacific quity funds werebeld within the RAIF Structtwe and forn]ed part of tbe global equity fvDds balance. In 2023124 these uuits were re-registeied and are now held directly in th¢ na￿e of the Charity Trust The significance of fillancial inslnuneDts th the ongoing financial sustainability of the TTu* is co]Jsidered in the financial r¢view and inYesDnent poii¢y ond pttfornwLce sectioDs of tbe tr￿.$ ADnuai R¢port. Debtors 2024 2023 Prepayments. itisurnllte premium and iDve51meni perfomlance ￿￿tting setvices 1,131 230 Accrned bond interest 4,177 SJ08 230 The insurance premium ond investmeiit perforn)ance reporting Servi￿ prepa)Tnents relate to the unre5tri¢ted funiL The accru￿ bond inl¢r¢5t relates to the endowm¢nt fun 21 The William Leech Foundation Limited - The Charity Trust Notes to the Financial Statements for the year ended 31 March 2024 (eontlDued) Creditors: amoullts falling due withiD one year 2024 2023 Accrua]s. audit servic¢5 4,140 3,840 Creditors 1,462 5,6112 3,840 All creditors relate to the unTestricted fun Related parties The trustee considers that it is related to Williatn tLech (InvestEnents) Limited by vi￿ of haviDg coll]mon diTe¢tors. Certaiu ad￿]niStratIon services areprovided free of cb&gebYthestaffofW￿Ila￿LeeChUllVe$t￿ents} Limited. These services bave not been qLWitifieAI for inclusion ill these fiEwicia] statementy as tbe arDounts ar¢ considered inllnaterial. The trusitt considers it is the par¢nt undertaking and ulttmale ¢ODtrolling pty of The Charity Trust. It is a piivat¢ co￿panY lijnited by shares, incorFK)rdted iti Ellglall¢l registration Dumber 00664118, and is a charity, registrdtion Du￿ber232O62. The priD¢ipal activity of the Con)pally istoactas the sole tn￿ee foT thr¢e clwitabl¢ usts, including The William Le￿h F¢)vndation Limitrd - The Foundation Ttust and The William Leech Research Fund. These are considered to be fellow subsidiaries of the sam¢ parent undertaking and ultttnate controlling party. Paul Burrage, Maureen Di¥0￿ John Haffis(￿, Pbilip Poole and Jobn StsL8feld are repre5¢ntatives of the Five arities, which have received pay￿ellts as seÉ out in note 2. Th¢ consolidated fmancial ststerneDts of The Williarn Leech FoutJdÈtion Lijnited be obtAined from the Cotupany Secretary at Bank Chamb¢rs. 26 Mosley StreeL N¢wu5lle upon Tyne, NEI IDF.