**Charity Registration No. 233463** **METROPOLITAN POLICE COMMISSIONERS FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Responsibilities Of The Trustees** Cressida Dick Commissioner of the Metropolis Stephen House Deputy Commissioner of the Metropolitan Police ## **Treasurer** **Secretary** **Charity registration number** Helen Ball Assistant Commissioner Professionalism Neil Basu Assistant Commissioner Specialist Operations Mr J Morgan Senior Accountant, MPS Miss N Raj Charities Accountant, MPS 233463 **Registered office and Operational address** **Registered office and Operational address** MPS Charities Section 2nd Floor (South) Kilburn Police Station 38 Salusbury Road London NW6 6LT **Auditor** Bright Grahame Murray Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG **Bankers** Lloyds Pall Mall, St James Branch 8/10 Waterloo Place London SW1Y 4BE **Solicitors** Bircham Dyson Bell 50 Broadway London SW1H 0BL **Investment Managers** Newton Investment Management Limited 160 Queen Victoria Street London EC4V 4LA Black Rock Investment Managers PO Box 9036 Chelmsford CM99 2XD ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 5| |Statement of trustees' responsibilities|6| |Independent auditor's report|7 - 10| |Statement of financial activities|11| |Balance sheet|12| |Notes to the financial statements|13 - 18| ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The Trustees have pleasure in presenting the Annual Report of the Metropolitan Police Commissioner's Fund ("the Charity") for the year ended 31 December 2020. ## **Structure, Governance and Management** ## **Governing Document** The charity's governing document is a declaration of Trust dated 29 October 1935. The Declaration of Trust provided a permanent endowment from stocks and cash from 1st Viscount Hugh Montague Trenchard the Commissioner of the Metropolitan Police at that time. The charity has no property or employees. ## **Appointment of Trustees** In 2012 a resolution was passed by the Commissioner and Deputy Commissioner to increase the number of Trustees from three to four. The power of amendment is clause 12 of the governing document. The replacement for clause seven now reads: "The Trustees shall be four in number and shall consist of the following persons that is to say: (1) The Commissioner of Police of the Metropolis for the time being plus three members of the Management Board as nominated by the Commissioner." ## **Public Benefit** The Trustees confirm that they have complied with their duty to have regard to the guidance on public benefit published by the charity commission in exercising their powers and duties. ## **Trustees Induction** Each new Trustee is a volunteer, appointed in accordance with the provisions of the charity's governing document and is: a) Invited to sign an "Appointment as Trustee and Declaration of Eligibility" form. And provided with: a) A copy of the charity's Governing Documents b) A copy of the latest audited accounts c) Charity Commission Booklet CC3 "The Essential Trustee. What you need to know" d) Charity Commission Leaflet CC3 (a) "Responsibility of Charity Trustees. A Summary" ## **Management** Members of MPS staff represent "donated services" and administer the charity on behalf of the Trustees. Two signatories, being two Trustees, the Treasurer and a Trustee, or two other authorised signatories must sign the cheques. ## **Exposure to risk** The Trustees are confident that there are no major risks to which the charity is exposed that have not already been mitigated against. All new Trustees have signed the "Appointment as Trustee and Declaration of Eligibility" form to declare not only their acceptance in becoming a Trustee, but also to declare that he/she knows of no legal reason why he/she should be disbarred from acting as a Trustee. - 1 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Objectives and activities** The charity aims to benefit a section of the public, who are Metropolitan Police Service (MPS) police officers, members of the police staff and both their dependants and former members of the MPS and their dependants as set out in the Declaration of Trust:- - By promoting efficiency and well-being by supporting sporting and recreational activities - Also by supporting other charities which are to the benefit of members, past members and their dependants or by offering these groups assistance in any way that the Trustees see fit provided that it shall be wholly charitable The Responsibilities of the Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** The above objectives are achieved by providing financial assistance by way of grants. During 2020 grants of £18,862 (2019: £26,186) were provided and are detailed at Figure 1 below. Other expenditure relates to overheads and governance costs. Applications for financial assistance from police officers, members of the police staff and both their dependants and former members of the MPS and their dependants are reviewed initially by the Secretary of the charity who ensures each case falls within the objects. Following examination the Secretary makes a recommendation to the Trustees who decide whether assistance is given. ## Awards made in 2020 During the year 10 applications for assistance were approved with a total value of £18,862 (compared to 13 with a total value of £26,186 in the previous year). The number of applications varies each year and an increase in applications does not always result in an increase of expenditure. Figure 2 shows the amount of grant requests received and funds awarded for the previous four years. _Figure 1 - Grants awarded in 2020_ **----- Start of picture text -----**
£
Contribution to support widows and widowers of police officers over the 6,994
Christmas period
Grants to offer support to officers and their families 750
Hosanna House & Children’s Pilgrimage Trust 3,000
Donation for the Book of Condolences 2,118
Donation to Police Roll of Honour Trust 6,000
Total of awards given 18,862
**----- End of picture text -----**
- 2 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ _Figure 2 – Breakdown of grant expenditure from 2016 to 2020_ **----- Start of picture text -----**
Year Number of £
applications
2020 10 18,862
2019 13 26,186
2018 9 16,158
2017 13 16,633
2016 11 15,220
**----- End of picture text -----**
## **Financial review** The value of the fund from 31 December 2019 to 31 December 2020 is shown in Figure 3 below. There were net incoming resources for the year of £11,327 after unrealised gains on investments of £337. _Figure 3 – Financial summary_ **----- Start of picture text -----**
2020 2019
£ £
Income 33,968 45,285
Expenditure (22,978) (30,133)
Net incoming/(outgoing) resources before investments 10,990 15,152
Fixed Assets (investments) 602,459 602,122
Net Current Assets 52,289 41,299
Net Assets/Fund Balance 654,748 643,421
**----- End of picture text -----**
The Trustees have reviewed the reserves policy and are content with the current investment strategy which is reported on later in the financial statement. The liquid current assets are £53,529 of which £42,453 is in the current account for instant access and £11,076 in the CCLA Investments COIF account, which can be accessed with two days’ notice. The Trustees are content that the charity is a going concern. - 3 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ To ensure the investments were diverse, units were originally purchased in the following investment Funds: - Newton Global Growth & Income Fund for Charities - Black Rock Charinco Income Fund By investing in these two Funds the charity was able to secure a portfolio that favours equities over bonds. This provides security against short term trends in the markets and allows for long term capital gain. The chart below highlights the sector spread of the investments. ____________________________________________________________________________ Newton Global Growth & Income Fund for Charities - is a balanced fund designed to achieve long term capital growth and a reasonable income. The target minimum yield is 3% p.a. BlackRock Charinco Fund - aims to provide a high level of income from a professionally managed portfolio of fixed interest securities. It invests predominantly in UK Government (gilt-edged) and corporate fixed interest securities. ______________________________________________________________________________________ ## _Figure 4 – Investment portfolio diversity_ **----- Start of picture text -----**
MPCF Investment Portfolio 2020 (Overall %)
**----- End of picture text -----**
**----- Start of picture text -----**
UK Equities (32%) Overseas (37%) Bonds (28%) Property (0%) Cash (3%)
**----- End of picture text -----**
The overall value of the investments increased by £337 in 2020 to £602,459. The investment is made up of both permanent endowment and unrestricted units. No units were purchased or sold in the year. - 4 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **TRUSTEES' REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ _Figure 5 - Total value of the investments as at 31 December 2020_ **----- Start of picture text -----**
Investment Number of 2020 2019
Units £ £
Newton Global Growth Permanent 329,288 478,522 481,090
& Income Fund for Endowment
Charities Unrestricted 16,700 24,268 24,399
TOTAL 345,988 502,790 505,489
Black Rock Charinco Permanent 49,570 97,654 94,679
Income Fund Endowment
Unrestricted 1,023 2,015 1,954
TOTAL 50,593 99,669 96,633
OVERALL Permanent 576,176 575,769
Endowment
Unrestricted 26,283 26,353
TOTAL 602,459 602,122
**----- End of picture text -----**
## **Future Aims and Objectives** The Trustees are committed to carrying out the objects of the charity to the best of their abilities for the future year. ## **Governing Document** The charity's governing document is a declaration of Trust dated 29 October 1935. The Declaration of Trust provided a permanent endowment from stocks and cash from 1st Viscount Hugh Montague Trenchard the Commissioner of the Metropolitan Police at that time. The charity has no property or employees. ## **Trustees Induction** Each new Trustee is a volunteer, appointed in accordance with the provisions of the charity's governing document and is: a) Invited to sign an "Appointment as Trustee and Declaration of Eligibility" form. And provided with: a) A copy of the charity's Governing Documents b) A copy of the latest audited accounts c) Charity Commission Booklet CC3 "The Essential Trustee. What you need to know" d) Charity Commission Leaflet CC3 (a) "Responsibility of Charity Trustees. A Summary" The trustees' report was approved by the Board of Responsibilities Of The Trustees. .............................. **Cressida Dick** Trustee Dated: ......................... - 5 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The Responsibilities of the Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Responsibilities of the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the Responsibilities of the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Responsibilities of the Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 6 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE RESPONSIBILITIES OF THE TRUSTEES OF METROPOLITAN POLICE COMMISSIONERS FUND** ## **Opinion** We have audited the financial statements of Metropolitan Police Commissioners Fund (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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 Responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The Responsibilities of the Trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 7 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE RESPONSIBILITIES OF THE TRUSTEES OF METROPOLITAN POLICE COMMISSIONERS FUND** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Responsibilities of the Trustees** As explained more fully in the statement of trustees' responsibilities, the Responsibilities of 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 the Responsibilities of the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Responsibilities of 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 Responsibilities of the Trustees either intend to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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. - 8 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE RESPONSIBILITIES OF THE TRUSTEES OF METROPOLITAN POLICE COMMISSIONERS FUND** Extent to which the audit was considered capable of detecting irregularities, including fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following: - We obtained an understanding of laws and regulations that affect the Charity, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the Charities SORP (FRS 102) and General Data Protection Regulation (GDPR). - We enquired of the trustees and reviewed trustees' meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the trustees have in place to ensure compliance. - We gained an understanding of and evaluated the controls that the trustees have in place to prevent and detect fraud. We enquired of the members about any incidences of fraud that had taken place during the accounting period. - The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: income recognition, management override, misappropriation of assets. - We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. - - We enquired of the trustees about actual and potential litigation and claims. - We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. - In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Due 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, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 9 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE RESPONSIBILITIES OF THE TRUSTEES OF METROPOLITAN POLICE COMMISSIONERS FUND** ## **Other matters** Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice. ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Bright Grahame Murray Chartered Accountants** ## **Statutory Auditor** Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG ......................... Bright Grahame Murray is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006. - 10 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**Unrestricted**
**Permanent**
**endowment**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
17,640
-
Charitable activities
**3**
2,368
-
Investments
**4**
602
13,358
**Total income and endowments**
20,610
13,358
**Expenditure on:**
Charitable activities
**5**
22,978
-
Net gains/(losses) on investments
**10**
(69)
406
**Net (outgoing)/incoming resources before**
**transfers**
(2,437)
13,764
Gross transfers between funds
13,358
(13,358)
**Net movement in funds**
10,921
406
Fund balances at 1 January 2020
67,653
575,768
**Fund balances at 31 December 2020**
78,574
576,174|**Total**
**2020**
**£**
17,640
2,368
13,960
33,968
22,978
337
11,327
-
11,327
643,421
654,748|**Total**
**2019**
**£**
25,178
2,320
17,787| |---|---|---| |||45,285| |||30,133| |||70,690| |||85,842
-| |||85,842
557,579| |||643,421| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 11 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **BALANCE SHEET** ## _**AS AT 31 DECEMBER 2020**_ |**Notes**
**Fixed assets**
Investments
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Capital funds**
Permanent endowment
**Income funds**
Unrestricted funds|**2020**
**£**
2,288
53,529
55,817
(3,528)|**£**
602,459
52,289
654,748
576,174
78,574
654,748|**2019**
**£**
1,248
49,570
50,818
(9,519)|**£**
602,122
41,299| |---|---|---|---|---| |||||643,421| |||||575,768
67,653| |||||643,421| The accounts were approved by the Responsibilities Of The Trustees on ......................... ## .............................. Cressida Dick ## **Trustee** ## .............................. James Morgan **Treasurer** - 12 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Responsibilities of the Trustees in furtherance of their charitable objectives. Permanent endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. Any income arising on the Permanent Endowment is credited to unrestricted funds. ## **1.4 Incoming resources** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Donations receivable Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. ## Donated services The administration and operation of the fund is carried out by members of the MPS Finance Services’ Charities and Special Payments Section. An appropriate element of the salary cost of those individuals, together with their accommodation and overhead costs, is reflected within the Statement of Financial Activities. Investment income Dividends and interest receivable are included at their gross amounts. - 13 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **1.5 Resources expended** ## Grants payable Grants payable are payments made to third parties in the furtherance of the charitable object of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or amount of grant payable. ## Governance costs Governance costs include the costs of governance arrangements that relate to the general running of the charity. These activities provide the governance infrastructure that allows the charity to operate and to generate the information required for public accountability. ## **1.6 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. ## **1.7 Cash and cash equivalents** - Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **2 Donations and legacies** |Donations receivable
**3**
**Charitable activities**
Donated services|**2020**
**2019**
**£**
**£**
17,640
25,178
**2020**
**2019**
**£**
**£**
2,368
2,320| |---|---| - 14 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **4 Investments** |**Unrestricted Endowment**
**funds**
**funds**
**general**
**£**
**£**
Income from listed investments
561
13,358
Interest receivable
41
-
602
13,358
**For the year ended 31 December 2019**
814
16,973|**Total**
**2020**
**£**
13,919
41
13,960|**Total**
**2019**
**£**
17,714
73| |---|---|---| |||17,787| |||17,787| ## **5 Charitable activities** |Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)|**2020**
**£**
18,862
2,368
1,748
22,978|**2019**
**£**
26,186
2,320
1,627| |---|---|---| |||30,133| ## **6 Grants payable** In total 10 (2019: 13 grants) were made during the year. 3 grants (2019: 3) were made to individuals. 7 grants (2019: 10) were made to institutions. Grants made in 2020 are detailed in Figure 1 in the Trustees’ Report. - 15 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **7 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
1,900
-
Accommodation costs
(rent, rates, etc.)
265
-
Office costs
203
-
Audit fees
-
900
Legal and professional
-
848
2,368
1,748
Analysed between
Charitable activities
2,368
1,748|**2020**Support costs
Governance
costs
**£**
£
£
1,900
1,852
-
265
265
-
203
203
-
900
-
900
848
-
727
4,116
2,320
1,627
4,116
2,320
1,627|2019
£
1,852
265
203
900
727| |---|---|---| |||3,947| |||3,947| Governance costs includes payments to the auditors of £900 (2019- £900) for audit fees. Staff, accommodation and office costs are allocated on a time spent basis. ## **8 Responsibilities Of The Trustees** None of the Responsibilities of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. ## **9 Employees** There were no employees during the year. ## **10 Net gains/(losses) on investments** ||**Unrestricted **|**Endowment**|**Total**|Unrestricted|Endowment|Total| |---|---|---|---|---|---|---| ||**funds**|**funds**||funds|funds|| |||**general**|||general|| ||**2020**|**2020**|**2020**|2019|2019|2019| ||**£**|**£**|**£**|£|£|£| |Revaluation of||||||| |investments|(69)|406|337|3,343|67,347|70,690| - 16 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **11 Fixed asset investments** |**Cost or valuation**
At 1 January 2020
Valuation changes
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019
Newton Global Growth and Income Fund for Charities (345,988 units) [2019:
345,988 units]
Charinco Common Investment Fund (50,593 units [2019: 50,593 units]
**12**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**13**
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**Listed**
**investments**
**£**
602,122
337
602,459
602,459
602,122
**2020**
**2019**
**£**
**£**
502,790
505,489
99,669
96,633
602,459
602,122
**2020**
**2019**
**£**
**£**
2,288
1,248
**2020**
**2019**
**£**
**£**
1,728
8,619
1,800
900
3,528
9,519|**Listed**
**investments**
**£**
602,122
337
602,459
602,459
602,122
**2020**
**2019**
**£**
**£**
502,790
505,489
99,669
96,633
602,459
602,122
**2020**
**2019**
**£**
**£**
2,288
1,248
**2020**
**2019**
**£**
**£**
1,728
8,619
1,800
900
3,528
9,519| |---|---|---| |||602,459| |||602,459| |||602,122| |||**2019**
**£**
505,489
96,633| |||602,122| |||**2019**
**£**
1,248| |||**2019**
**£**
8,619
900| |||9,519| - 17 - ## **METROPOLITAN POLICE COMMISSIONERS FUND** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**14**
**Analysis of net assets between funds**
**Unrestricted**
**Funds**
**Permanent**
**Endowment**
**£**
**£**
Fund balances at 31 December 2020 are represented by:
Investments
26,285
576,174
Current assets/(liabilities)
52,289
-
78,574
576,174|**Total**
**£**
602,459
52,289| |---|---| ||654,748| - 18 -