REGISTERED CHARITY NUMBER: 232174
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023
FOR
LILLEY BENEVOLENT TRUST
Magee Gammon Chartered Accountants Henwood House Henwood Ashford Kent TN24 8DH
LILLEY BENEVOLENT TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023
| Page | Page | Page | |
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Financial Statements | 7 | to | 12 |
LILLEY BENEVOLENT TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023
The trustees present their report with the financial statements of the charity for the year ended 5th April 2023. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the trust are to pay or apply the income and capital of the trust in such manner and in such proportions to or for such one or more charitable objects as the trustees shall in their absolute discretion think fit.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The gross income for the year ended 5 April 2023 was £27,814. From this, donations totalling £22,000 were made to 22 charities or organisations having charitable status. All selected charities received £1,000.
The trustees have paid due regard to the Charity Commission guidance on public benefit in deciding what activities the charity should undertake.
FINANCIAL REVIEW
Investment policy and objectives
The investment powers of the trustees are set out in the Trust Deed. The trustees continue to give authority to Rathbone Investment Management Limited, to manage the charity's investment portfolio and the trust investments are held by them on behalf of the trustees. All transactions are carried out within the limits of the Trust Deed and Charities Act requirements.
The investments are made on a net return basis, with the Charity to receive a fixed payment each month to cover the Charity overheads, and donations each year. Additional donations can then be made from capital as necessary. This allows the Charity's investments to be invested for the best possible growth and income, and to ride out fluctuation in markets rather than always striving for a minimum income, which can see greater risk applied Capital.
Messrs C Hoare & Co continue to be the Trust's bankers.
Reserves / resources policy
It has historically been the policy of the Charity to maintain unrestricted income funds, which are free reserves of the Charity, at a level which equates to 3 months unrestricted expenditure. However as the charity now undertakes a net returns basis on its investments, it is determined that capital and income can be used as funds to cover management and administration costs and to respond to any emergency charity appeals which might arise from time to time.
Unrestricted capital reserves represent the funds used to establish the charity. It is the policy of the charity to maintain these capital funds in investments which provide income and returns for distribution. It is the Trustees preference to preserve capital, however they agree that should a suitable project be proposed, larger capital distributions would be considered.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Legal constitution
The Lilley Benevolent Trust is a charitable trust created under the terms of a trust deed dated 19 December 1961, the name being changed from the Thomas Lilley Memorial (No2) Trust to its present name in 1961.
Recruitment and appointment of new trustees
Trustees are appointed by a special resolution of the Trustees passed at a special meeting.
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LILLEY BENEVOLENT TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure
The charity is headed up by the Board of Trustees and managed on a day to day basis by the administrator.
At the annual trustees' meeting the trustees agree the broad strategy including grant making, investment, reserves and risk management. Further trustees' meetings may be called at other times during the year as the need arises. The day to day administration and management of the trust is undertaken by Mrs. A Page CTA ACA.
Induction and training of new trustees
The induction process for any newly appointed trustee comprises an initial meeting with the Board of Trustees to explain the grant making process and investment strategy. New trustees are provided with a copy of the latest accounts, a copy of the governing trust deed and a copy of the charity Commission's guide "The Essential Trustee: What You Need to Know".
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
232174
Principal address
82 High Street Tenterden Kent TN30 6JG
Trustees
Mrs C A Merricks Mrs A V Neal W T J Osmond G B Lilley N C O'Brien Ms J J Lilley Ms A M Briggs R P J Merricks Miss R Lilley
Independent Examiner
Magee Gammon Chartered Accountants Henwood House Henwood Ashford Kent TN24 8DH
Administrator
A Page CTA ACA
Investment adviser
Rathbones Investment Management Limited
Bankers
C Hoare & Co
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LILLEY BENEVOLENT TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5TH APRIL 2023
Approved by order of the board of trustees on 30th November 2023 and signed on its behalf by:
W T J Osmond - Trustee
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LILLEY BENEVOLENT TRUST
Independent examiner's report to the trustees of Lilley Benevolent Trust
I report to the charity trustees on my examination of the accounts of Lilley Benevolent Trust (the Trust) for the year ended 5th April 2023.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or 2. the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mr A J Childs FCA
Magee Gammon Chartered Accountants Henwood House Henwood Ashford Kent TN24 8DH
1st December 2023
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LILLEY BENEVOLENT TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5TH APRIL 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| funds | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Investment income | 2 | 27,814 | 29,130 |
| EXPENDITURE ON | |||
| Raising funds | 3 | 6,373 | 7,307 |
| Charitable activities | |||
| Direct charitable donations | 22,000 | 21,000 | |
| Other | 4,978 | 6,536 | |
| Total | 33,351 | 34,843 | |
| Net gains/(losses) on investments | (27,179) | 25,297 | |
| NET INCOME/(EXPENDITURE) | (32,716) | 19,584 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 785,141 | 765,557 | |
| TOTAL FUNDS CARRIED FORWARD | 752,425 | 785,141 |
The notes form part of these financial statements
Page 5
LILLEY BENEVOLENT TRUST
BALANCE SHEET 5TH APRIL 2023
| Notes FIXED ASSETS Investments Investments 9 Investment property 10 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds: Income Account Trust Capital TOTAL FUNDS |
2023 2022 Unrestricted Total funds funds £ £ 742,917 769,701 3,000 3,000 745,917 772,701 8,338 37,827 (1,830) (25,387) 6,508 12,440 752,425 785,141 752,425 785,141 6,508 4,225 745,917 780,916 752,425 785,141 752,425 785,141 |
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 30th November 2023 and were signed on its behalf by:
W T J Osmond - Trustee
The notes form part of these financial statements
Page 6
LILLEY BENEVOLENT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5TH APRIL 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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.
Investments
Listed investments are included at market value at the year end. Gains and losses on disposal and revaluation of investments are charged or credited to the Statement of Financial Activities.
Taxation
No provision has been made for tax as the charity is a registered charity and is therefore exempt. Tax deducted from overseas income is shown as a cost under resources expended as these cannot be recovered. Tax deducted from income received from Real Estate Investment Trusts can be recovered and the amount claimed is shown under debtors.
Fund accounting
General income funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
There are currently no restricted funds.
Cash and cash equivalents
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
continued...
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LILLEY BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023
2. INVESTMENT INCOME
| Rents received Brokers deposit interest Bank interest Equity income 3. RAISING FUNDS Investment management costs Portfolio management Tax charge Exchange rate difference 4. GRANTS PAYABLE Direct charitable donations The total grants paid during the year was as follows: 2023 £ Afghanistan and Central Asian Association 1,000 Action for Stammering Children - Autistica 1,000 The Brain Tumour Charity 1,000 British Red Cross 1,000 Caring Altogether in Romney Marsh 1,000 Chailey Heritage Foundation 1,000 Cornwall Hospice Care 1,000 East London Waterworks 1,000 Elimination of Leukaemia Fund - Encircles 1,000 Fairshare - Farms for City Children 1,000 Footwear Benevolent Society 1,000 Leukaemia UK 1,000 Little Angleman 1,000 Motor Neurone Disease Association - Off The Fence 1,000 Phyllis Tuckwell Memorial Hospice Limited 1,000 Prostate Cancer Charity 1,000 RABI 1,000 Roald Dahl Marvellous Children's Charity - Salisbury Womens Refuge - Sarcoma UK 1,000 Southmead Project 1,000 St Michael's Hospice 1,000 Strongbones 1,000 Sussex Association for Spina Bifida - |
2023 £ 500 5 57 27,252 27,814 2023 £ 6,583 306 (516) 6,373 2023 £ 22,000 |
2022 £ 500 - - 28,630 |
2022 £ 500 - - 28,630 |
|---|---|---|---|
| 29,130 | |||
| 2022 £ 6,985 322 - 7,307 2022 £ 21,000 |
2022 £ 6,985 322 - |
||
| 7,307 | |||
| 2022 | |||
| £ | |||
| - | |||
| 1,000 | |||
| - | |||
| 1,000 | |||
| - | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| - | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| - | |||
| - | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| - | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| 1,000 | |||
| - | |||
| 1,000 | |||
| - | |||
| 1,000 |
continued...
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LILLEY BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023
4. GRANTS PAYABLE - continued
| GRANTS PAYABLE - continued | ||
|---|---|---|
| Versus Arthritis | - | 1,000 |
| Vics in the Community (98) | - | 1,000 |
| XLP | 1,000 | 1,000 |
| 22,000 | 21,000 | |
5. SUPPORT COSTS
| Governance | |
|---|---|
| costs | |
| £ | |
| Other resources expended | 4,978 |
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 5th April 2023 nor for the year ended 5th April 2022.
Trustees' expenses
Two trustees received reimbursement of expenses during the year. The aggregate amount of these expenses was £72 (2022: nil).
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
All income and expenditure in the previous year relates to unrestricted funds.
8. INDEPENDENT EXAMINERS FEES
The Independent Examiner's remuneration represents the fee for examination of the accounts of £810 (2022: £774).
9. FIXED ASSET INVESTMENTS
| Fixed Equity interest investments investments £ £ MARKET VALUE At 6th April 2022 713,321 56,380 Additions 43,601 - Disposals (49,038) - Revaluations (15,815) (5,532) At 5th April 2023 692,069 50,848 NET BOOK VALUE At 5th April 2023 692,069 50,848 At 5th April 2022 713,321 56,380 |
Totals £ 769,701 43,601 (49,038) (21,347) 742,917 742,917 769,701 |
|---|---|
The investment assets are managed by Rathbone Investment Management Limited in the UK. The portfolio cost a total of £550,379 as at the balance sheet date. Within the portfolio there are overseas investment assets with a market value of £395,084 as at the balance sheet date.
continued...
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LILLEY BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023
10. INVESTMENT PROPERTY
The investment property relates to Chief Rents Northern Ireland valued at £3,000 on 12 November 2003 when the property was introduced into the charity. The valuation of the property is based on a return on the ground rent received. Since the ground rents are unchanged the trustees believe that there has been no significant change in this value.
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts (see note 12) | - | 22,931 |
| Other creditors | 1,830 | 2,456 |
| 1,830 | 25,387 |
12. LOANS
An analysis of the maturity of loans is given below:
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Amounts falling due within one year on demand: | |||
| Bank overdrafts | - | 22,931 |
13. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | ||||
|---|---|---|---|---|
| Net | Transfers | |||
| movement | between | At | ||
| At 6/4/22 | in funds | funds | 5/4/23 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Income Account | 4,225 | 529 | 1,754 | 6,508 |
| Trust Capital | 780,916 | (33,245) | (1,754) | 745,917 |
| 785,141 | (32,716) | - | 752,425 | |
| TOTAL FUNDS | 785,141 | (32,716) | - | 752,425 |
Net movement in funds, included in the above are as follows:
| Unrestricted funds Income Account Trust Capital TOTAL FUNDS |
Incoming resources £ 27,814 - 27,814 27,814 |
Resources expended £ (27,285) (6,066) (33,351) (33,351) |
Gains and Movement losses in funds £ £ - 529 (27,179) (33,245) (27,179) (32,716) (27,179) (32,716) |
|---|---|---|---|
continued...
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LILLEY BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023
13. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net | |||||
|---|---|---|---|---|---|
| movement | At | ||||
| At 6/4/21 | in funds | 5/4/22 | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| Income Account | 9,937 | (5,712) | 4,225 | ||
| Trust Capital | 755,620 | 25,296 | 780,916 | ||
| 765,557 | 19,584 | 785,141 | |||
| TOTAL FUNDS | 765,557 | 19,584 | 785,141 | ||
| Comparative net movement in funds, included in | the above are as follows: | ||||
| Incoming | Resources | Gains and | Movement | ||
| resources | expended | losses | in funds | ||
| £ | £ | £ | £ | ||
| Unrestricted funds | |||||
| Income Account | 29,130 | (34,843) | - | (5,713) | |
| Trust Capital | - | - | 25,297 | 25,297 | |
| 29,130 | (34,843) | 25,297 | 19,584 | ||
| TOTAL FUNDS | 29,130 | (34,843) | 25,297 | 19,584 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | Transfers | |||
|---|---|---|---|---|
| movement | between | At | ||
| At 6/4/21 | in funds | funds | 5/4/23 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Income Account | 9,937 | (5,183) | 1,754 | 6,508 |
| Trust Capital | 755,620 | (7,949) | (1,754) | 745,917 |
| 765,557 | (13,132) | - | 752,425 | |
| TOTAL FUNDS | 765,557 | (13,132) | - | 752,425 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Income Account | 56,944 | (62,127) | - | (5,183) |
| Trust Capital | - | (6,067) | (1,882) | (7,949) |
| 56,944 | (68,194) | (1,882) | (13,132) | |
| TOTAL FUNDS | 56,944 | (68,194) | (1,882) | (13,132) |
continued...
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LILLEY BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5TH APRIL 2023
13. MOVEMENT IN FUNDS - continued
General income funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Trust capital funds are unrestricted funds which are retained to generate income.
Transfers between funds
The trustees have reviewed the capital account balance at the year end and have agreed that, as both capital and income is expendable and to align with the investment policy, the capital account balance should mirror the capital fund assets. Therefore a transfer was made to agree the capital fund balance at the year end.
14. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 5 April 2023, other than those shown in note 6 relating to trustees' remuneration and benefits.
15. LEASE OBLIGATIONS RECEIVABLE
The trust is entitled to a perpetual yearly rent charge of £500 in respect of property situated in Belfast, Northern Ireland.
Page 12