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2021-12-31-accounts

METROPOLITAN AND CITY POLICE

ORPHANS FUND

Registered Charity Number 234787

ANNUAL REPORT & ACCOUNTS 2021

George Hay & Company Chartered Accountants & Statutory Auditors 83 Cambridge Street London SW1V 4PS

METROPOLITAN AND CITY POLICE ORPHANS FUND

PATRON

H.R.H The Duke of Cambridge KG, KT, PC, ADC

METROPOLITAN AND CITY POLICE ORPHANS FUND

PRESIDENT

Cressida Dick CBE QPM

VICE PRESIDENT

Ian Dyson QPM

METROPOLITAN AND CITY POLICE ORPHANS FUND

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Page
Reference and Administrative Details 1
Chairman's Report 2 to 3
Report of the Trustees 4 to 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 24
Detailed Statement of Financial Activities 25 to 26

METROPOLITAN AND CITY POLICE ORPHANS FUND

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2021

TRUSTEES

TRUSTEES D Davies G Gilbert C Knight (resigned 31.12.21) D Lawes S Ovens G Smyth Q.P.M A Sutherland (resigned 30.11.21) A Maybanks (resigned 31.10.21) J Howard A Shuttleworth (resigned 1.4.21) N Jerome S Davies G Gaskain D Murphy (resigned 30.9.21) K Malda (appointed 1.4.21) K Gordon (appointed 1.12.21) M Reed (appointed 1.12.21) P Dodds (appointed 1.10.21) A Picton (appointed 1.4.22) EX-OFFICIO MEMBERS The President and Vice-President CHIEF EXECUTIVE OFFICER P. Smyth DEPUTY CHIEF EXECUTIVE M. Cooper OFFICER WEBSITE: https://www.met-cityorphans.org.uk/ PRINCIPAL ADDRESS 30 Hazlewell Road Putney London SW15 6LH REGISTERED CHARITY 234787 NUMBER BANKERS LLOYDS TSB BANK PLC Pall Mall Branch, St. James’s, 8 – 10 Waterloo Place, London, SW1Y 4BE AUDITORS George Hay & Company Chartered Accountants & Statutory Auditors 83 Cambridge Street London SW1V 4PS INVESTMENT MANAGERS CCLA Investments Management Limited 80 Cheapside, London, EC2V 6DZ Close Brothers Asset Management 8th Floor, 10 Exchange Square, Primrose Street, London, EC2A 2BY

Page 1

METROPOLITAN AND CITY POLICE ORPHANS FUND

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

I am delighted to present my fifth Annual Report and Annual Accounts as Chair of the Metropolitan & City Police Orphan's Fund, it was an honour to be appointed as Chair of the fund which is the oldest Police Charity in the world. I would like to take this opportunity of thanking all those who gave up their valuable time to serve on the Board of Management.

I would also wish to place on record our enormous thanks to the sponsors of our Annual Luncheon, George Burrows Insurance, Reynolds Dawson Solicitors and ARC Legal Insurance. Their support for our luncheon and indeed their support throughout the year is of huge assistance to the Fund.

The COVID-19 pandemic had a major effect on our investments with sharp drops in valuations. We are please that by mid 2021 the value of our investments had largely recovered. We sincerely thank CCLA Investments and Close Brothers Asset Management for all their work in protecting our investments at such a volatile time.

Working in close liaison with our investment advisers, CCLA and Close Brothers, we closely monitored the performance of our investments and in particular the dividend payments that are our lifeblood as a charity. Our sincere thanks go to Antonia Cavalieri at CCLA and Adam Griffin at Close Brothers for their patience and advice. They made steering our way through the pandemic so much easier.

We are pleased that dividends held up better than we could have hoped for, and although down on previous years, not as bad as first feared.

The Board took the pandemic as an opportunity to have a close look at our investment strategy and having considered the matter decided to instruct Close Brothers to try and achieve a better rate of income albeit if that means slightly less growth. The Board took the view that it is the income that is important to support our families. Growth leads to a better looking balance sheet but increased valuations do not necessarily mean increased income. In the last 5 years our investments have grown by around 50%, which is great but in the same period our investment income has grown by around 10%, barely keeping up with inflation. The Board have decided that extra income is preferable to extra in valuations.

As we enter 2022, it is pleasing to report that our income streams are steady and we anticipate all our grants and allowances being maintained at normal levels throughout 2022.

Given the background of the Pandemic, the fund had a successful year, we hope to continue this in the coming years by increasing the level of support to the children of police officers serving or retired who have died or are so incapacitated that they are unable to contribute financially to the upkeep of their families.

We are now supporting more children than at any point since the years following the two World Wars. This is mainly due to our efforts to trace families who for whatever reason had not applied to the fund previously. By liaising with Police Pension Branch we were able to trace a number of families who had up until then missed out on our support. We will endeavour to continue to support children who otherwise would be faced with financial hardships in their family life. We continue to review our finances to ensure we can maximise the amounts we can provide in support of families.

As a Charity we rely very heavily on voluntary contributions. I would like to thank all our donors and subscribers for their financial generosity. Without their on-going commitment we would not have been able to provide the same level of support in caring for our unfortunate orphans.

We are very proud of the achievements of the children we support it never ceases to amaze me of the resilience of young people and the fantastic results they attain, often in the face of adversity and tragic family loss. Many of the young people we support go on to attain qualifications to assist them in life and benefit their communities.

The Trustees wish to convey their sincere thanks to all our generous Donors and Subscribers, for their continued support in 2021.

Page 2

METROPOLITAN AND CITY POLICE ORPHANS FUND

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

We wish to thank the Staff Associations and National Association of Retired Police Officers (London Branch) who kept the fund informed of officers and retired officers who have died and still have children in full time education, but for this information, many cases could have been overlooked.

I also wish to place on record my thanks to my fellow Board of Management members for their continued support and for finding the time in their busy working lives to attend meetings, at their own expense, I am very grateful for their unwavering commitment and dedication.

Simon Ovens Chairman of the Board of Management

Date: 12[th] October 2022

Page 3

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report with the financial statements of the charity for the year ended 31 December 2021. 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).

ORIGINS

The Charity ( Charity Number 234787 ) was founded in 1870, and was formerly known as THE METROPOLITAN AND CITY POLICE ORPHANAGE . With the approval of the Charity Commission, the orphanage closed on 31st July 1937. On the following day the Metropolitan and City Police Orphans Fund came into being.

OBJECTIVES AND ACTIVITIES

Objectives and aims

  1. To relieve beneficiaries in cases of need or hardship.

  2. To advance the education, professional or vocational training of beneficiaries in need of financial assistance, to include education at school, college or university and education or training in music or the arts.

  3. To promote the health of and relieve sickness, infirmity or disability among beneficiaries in cases of need, by the provision of medical treatment and financial assistance to enable them to participate in healthy recreational activities. 4. To help the beneficiaries, especially but not exclusively, through leisure time activities, so as to develop their skills, capacities and capabilities, to enable them to participate in society as mature and responsible individuals.

Public benefit

The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. In order to carry out the Charity's aim for the public benefit, the Trustees award grants and allowances to cover the different circumstances of those in need:

Bereavement Payment is given to families immediately upon the death of a serving officer.

Compassionate Allowance is awarded to children of police officers of the Metropolitan Police Service ("the MPS") and the City of London Police who have not completed their education where one or both of whose police parent are dead, disabled or incapacitated, or in the judgement of the Trustees, is incapable of materially contributing to their own family's support due to sickness, infirmity or disability; or in exceptional cases, persons who have ceased to be beneficiaries on completion of their education but who in the opinion of the Trustees remain in need of assistance.

Education Grants are awarded to children for any educational purpose which in the opinion of the Trustees is likely to contribute to the spiritual, moral, mental or physical development of the child. We also award a Discretionary Grant to help with the payment of tuition fees.

Clothing Grant is awarded to children who are leaving full time education to seek employment. The grant is awarded for financial assistance in the purchase of clothing for employment interviews.

Holiday Grant is awarded to our families who are on the lowest incomes.

Family Support is awarded to families on a higher income and are small payments given to such families twice per year, at summer holidays and Christmas, to assist with maintaining the children's wellbeing. Such payments are felt necessary to ensure that all police officers children receive an acknowledgement of the contributions made by their police parent.

Payments made in 2021:
- Compassionate Allowance £549,970
- Education Grants (includes tuition fee grants) £57,570
- Clothing Grant £6,750
- Holiday Grant £153,580
- Family Support £92,884
- Bereavement £16,000
TOTAL £876,754

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METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Charity continues to remain focused on the educational needs of our orphans. The Grants paid by the Fund go to individuals and not to corporate bodies. The Trustees are of the opinion that the Fund's responsibility under the Charity's Deed of Trust is to provide educational funding in order that our orphans are given the best possible educational advantage.

In making grants (£876,754) during the year; the Trustees' are of the opinion that they have discharged their duties under the Charity's Deed of Trust.

Investment performance

Our investments are managed by CCLA Investment Management Limited and Close Brothers Asset Management with the objective of maximizing the income receivable whilst allowing a degree of capital growth. We will continue to have quarterly reports provided on the performance of our investments, in light of our continued policy of reducing the exposure to UK equities in favour of a greater allocation to markets overseas. In our view, the enhanced allocation to international investment increases the opportunities to generate attractive long term returns and reduces the risks that arise from too great an exposure to a single market.

FINANCIAL REVIEW

Financial position

The accounts have been prepared in accordance with the revised Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2019).

The net result show a net cash surplus of £228,281 compared to a surplus of £116,949 in 2020.

Expenditure in 2021 decreased by £37,194 on the previous year. Previous years have seen small deficits in expenditure over income. This has been largely offset by the growth in valuation of our investments .In 2019 with the assistance of Metropolitan Police Pensions Branch we undertook a major effort to try and trace families who were eligible for assistance but not currently claiming. This resulted in an additional 37 children coming onto the fund.

With the assistance of the Metropolitan and City Police Federations, the National Association of Retired Police Officers (London Branch) we are trying to ensure that no families are missed in future.

Compassionate Allowance and Miscellaneous Grants; which represented 78% of the Funds expenditure, decreased by £42,226 to £876,754 compared to 2020.

Other Costs; decreased by £3,837 to £100,756, details of this expenditure can be found in the notes to the financial statements, under the heading 'Total Resources Expended'. The main reason for this decrease was due to higher costs in 2020 relating to higher prremises costs.

Gains on investments amounted to £3,281,450 compared to a gain on investments of £1,983,682 in 2020. Taking into account these gains means that the Fund grew by £3,580,542 in 2021.

Page 5

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Principal funding sources

Income; in 2021 increased by £303,786 on the previous year, however due to the performance of our investments overall and the receipt of a large legacy the charities funds increased by £3,580,542.

Police Subscriptions; which produced 25% of our income for 2021 and increased slightly to £356,464 compared to £354,153 in the previous year.

Donations; decreased from £58,373 to £55,058. Donations accounted for 3.9% of our income.

Donations through Collecting Boxes; decreased by £3,150 to £886 compared to 2020. Collection Boxes were a significant income stream for us in the past and used to regularly bring in £20k per annum. The closure of so many police station front counters and the move to telephone and internet reporting has greatly reduced the effectiveness of this method of income generation.

Legacies; There was one legacy totalling £267,434 that was invested in our Unrestricted Funds Account.

Investment Income; which produced 52% of our income; increased by £66,442 to £744,162.

Reserves policy

The current level of unrestricted reserves is £31,058,131. The Fund is increasingly reliant upon the income generated by these reserves to fulfil it's charitable objectives. In 2021 the reserves generated 52% of Income. The policy on reserves is reviewed annually. The Fund supports it's beneficiaries over long periods, up to 20 years and, in ensuring that sufficient reserves are held for the continuity of such support, the Trustees are mindful of the need to make long term projections.

The Trustees regularly review the level of reserves to ensure that they are appropriate, taking into account projections of:

The current policy of the Trustees is to maintain the current level of reserves and to try and achieve small increases in reserves to alleviate the effects of inflation. The income generated from our reserves is expended for the benefit of our unfortunate orphans. Other sources of income are insufficient to support our charitable aims, without the income from reserves. The current level of reserves is therefore needed to meet the capital requirements of the Charity.

FUTURE PLANS

We intend to strengthen our links with our benefactors and donors to assist us in developing more effective initiatives to expand the general awareness of the Charity.

The Fund has signed up to organisations such as EasyFundraising, VirginMoneyGiving and Love2Donate in order to maximise opportunities for donations and to ensure that all due Gift aid is claimed.

We will continue to improve our performance by increasing the number of applicants registered with the Charity and therefore increase the amount of expenditure on grants payable.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Declaration of Trust dated 31st August 1918 and Scheme of 12th October 1937 and adopted 8th May 1964 as amended 28th June 1967, 23rd May 1968, 28th May 1970, 26th September 1983, 14th November 2002, 10th June 2009 and 17th January 2017.

Page 6

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

The overall governance of the Fund is vested in the Trustees, there are fourteen members, two nominated by the Metropolitan Police Commissioner and one by the Commissioner of the City of London Police, with the remainder nominated by Staff Associations within the Services. The Board of Management meet at the Fund's office each month to consider applications and variations in the circumstances of recipients. Regular checks for changes are made by way of correspondence, enquiries of parents and educational establishments.

The day to day running of the Fund is delegated to the Chief Executive Officer (CEO) and Deputy Chief Executive Officer. The Chief Executive Officer is responsible for the day-to-day management and control of the administration of the charitable funds and reports monthly to the Board of Management. The CEO ensures that the criteria for spending charitable monies are fully met; that full accounting records are maintained and that devolved decision making or delegated arrangements are in accordance with the policies and procedures set out by the Board of Management.

Induction and training of new trustees

New trustees undergo an orientation day to brief them on their legal obligations, to improve their knowledge of charity law and their responsibilities as trustees.

Risk management

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

The Trustees have assessed the major risks to which the Fund is exposed, in particular those related to the operations and finance of the Fund, and are satisfied that systems are in place to mitigate their exposure to major risks. A review of the Charity's risk management process is undertaken on a quarterly basis. Procedures are in place to ensure compliance with health and safety of staff and visitors to the offices. These procedures are periodically reviewed to ensure that they continue to meet the needs of the Charity.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

ACKNOWLEDGEMENTS

The Trustees wish to convey their sincere thanks to all our generous Donors and Subscribers, for their continued support in 2021.

We wish to thank the Staff Associations and National Association of Retired Police Officers (London Branch) who kept the fund informed of officers and retired officers who have died and still have children in full time education, but for this information, many cases could have been overlooked.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Annual 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

Page 7

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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.

Approved by order of the board of trustees on 12[th] October 2022 and signed on its behalf by:

........................................................................ S Ovens - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF METROPOLITAN AND CITY POLICE ORPHANS FUND

Opinion

We have audited the financial statements of Metropolitan and City Police Orphans Fund (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF METROPOLITAN AND CITY POLICE ORPHANS FUND

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as 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 trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company’s operations, we identified that the principal risks of non-compliance with laws and regulations relates to grant making. We considered the extent to which non-compliance might have a material effect on the financial statements that results in the situation that no further grant funding can be provided. We also considered the relevant laws and regulations that have a direct impact on the preparation of the financial statements.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined there were no principal risks directly impacting the Fund's revenue and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF METROPOLITAN AND CITY POLICE ORPHANS FUND

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.

George Hay & Company Chartered Accountants & Statutory Auditors 83 Cambridge Street London SW1V 4PS

Date: .............................................

Page 11

METROPOLITAN AND CITY POLICE ORPHANS FUND

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Compassionate allowances
Miscellaneous grants
Direct costs
Other
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
fund
funds
£
£
679,816
-
738,322
5,840
1,418,138
5,840
100,756
-
549,970
-
326,784
-
147,376
-
-
-
1,124,886
-
3,250,818
30,632
3,544,070
36,472
27,514,061
241,848
31,058,131
278,320		 2021
Total
funds
£
679,816
744,162
1,423,978
100,756
549,970
326,784
147,376
-
1,124,886
3,281,450
3,580,542
27,755,909
31,336,451		 2020
Total
funds
£
442,472
677,720
1,120,192
88,062
629,151
289,829
138,507
16,531
1,162,080
1,983,682
1,941,794
25,814,115
27,755,909

The notes form part of these financial statements

Page 12

METROPOLITAN AND CITY POLICE ORPHANS FUND

BALANCE SHEET 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
£
1,693
30,413,040
30,414,733
225,429
717,923
943,352
(21,634)
921,718
31,336,451
31,336,451
31,058,131
278,320
31,336,451		 2020
£
1,693
27,156,969
27,158,662
129,160
489,642
618,802
(21,555)
597,247
27,755,909
27,755,909
27,514,061
241,848
27,755,909

The financial statements were approved by the Board of Trustees and authorised for issue on 12[th] October 2022 and were signed on its behalf by:

............................................. Trustee

............................................. Trustee

............................................. Trustee

The notes form part of these financial statements

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METROPOLITAN AND CITY POLICE ORPHANS FUND

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of fixed asset investments
Sale of fixed asset investments
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
202,902
202,902
(410,550)
435,929
25,379
228,281
489,642
717,923		 2020
£
(8,647)
(8,647)
(2,283,799)
2,409,395
125,596
116,949
372,693
489,642

The notes form part of these financial statements

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METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2021 2020
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 3,580,542 1,941,794
Adjustments for:
Gain on investments (3,281,450) (1,983,682)
(Increase)/decrease in debtors (96,269) 29,466
Increase in creditors 79 3,775
Net cash provided by/(used in) operations 202,902 (8,647)
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.21 Cash flow At 31.12.21
£ £ £
Net cash
Cash at bank 489,642 228,281 717,923
489,642 228,281 717,923
Total 489,642 228,281 717,923

The notes form part of these financial statements

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METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 incoming resources are recognised once the Fund has entitlement to the resources.

Subcription income is recognised on a receivable basis.

Donations are recognised as and when they received as cleared funds in the bank.

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is virtually certain; this will be once confirmation has been received from the representatives of the estate(s) that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled and it is virtually certain that the amount of the incoming resources is known.

Investment income is recognised on a receivable basis.

Tax recovered from voluntary income received under gift aid is recognised in the Statement of Financial Activities when the income is receivable and is allocated to the income category to which the income relates.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred and has been classified under headings that aggregate all costs related to the category.

Expenditure on raising funds comprises costs associated with attracting voluntary income and investment management costs.

Direct costs include central functions allocated to activity cost categories on a basis consistent with the use of resources, and governance costs associated with meeting the constitutional and statutory requirements of the Charity and includes the audit fees and costs linked to the strategic management of the Charity.

Grants payable are payments made to third parties in furtherance of the charitable objectives of the Fund. The grants are accounted for where either the Trustees have agreed to pay the grant without conditions or the recipient has a reasonable expectation that they will receive a grant.

Tangible fixed assets

Freehold property held for the Charity's use is valued at cost. No depreciation has been charged, as it is the Trustees' policy to maintain the building in a continual state of sound repair. The Trustees consider that the life of this asset is so long and its residual value so high that its depreciation is insignificant.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Restricted funds comprise those funds held on trust to be applied for restrictive purposes.

Page 16

continued...

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value (or their purchase value if acquired subsequent to the first day of the financial year). Unrealised gains and losses are calculated as the difference between the fair value at the year end and the carrying value. Realised and unrealised gains ans losses are combined in the Statement of Financial Activities.

2. DONATIONS AND LEGACIES

2.
DONATIONS AND LEGACIES
Police subscriptions
Donations
Collecting boxes
Legacies
3.
INVESTMENT INCOME
Investment income
4.
RAISING FUNDS
Raising donations and legacies
Fundraising events
Investment management costs
Investment management costs
Aggregate amounts		 2021
£
356,464
55,058
860
267,434
679,816
2021
£
744,162
2021
£
1,621
2021
£
99,135
100,756		 2020
£
354,153
58,373
4,036
25,910
442,472
2020
£
677,720
2020
£
5,927
2020
£
82,135
88,062

continued...

Page 17

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

5. CHARITABLE ACTIVITIES COSTS

Grant
funding of
activities
Direct
(see note
Costs
6)
£
£
Compassionate allowances
-
549,970
Miscellaneous grants
-
326,784
Direct costs
17,558
-
17,558
876,754
6.
GRANTS PAYABLE
Compassionate allowances
Miscellaneous grants
The total grants paid to individuals during the year was as follows:
Compassionate allowances
Clothing
Education
Holiday
Family support
Bereavement
7.
SUPPORT COSTS
Direct costs		 Support
costs (see
note 7)
£
-
-
129,818
129,818
2021
£
549,970
326,784
876,754
2021
£
549,970
6,750
57,570
153,580
92,884
16,000
876,754		 Totals
£
549,970
326,784
147,376
1,024,130
2020
£
629,151
289,829
918,980
2020
£
629,151
8,500
78,080
110,085
51,164
42,000
918,980
Governance
costs
£
129,818

continued...

Page 18

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

7. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Governance costs

Staff salaries and pensions
Auditors' remuneration
Legal and professional
8.
AUDITORS' REMUNERATION
Fees payable to the charity's auditors for the audit of the charity's financial
statements		 2021
Direct
costs
£
121,238
8,374
206
129,818
2021
£
8,374		 2020
Total
activities
£
120,985
8,667
7,864
137,516
2020
£
8,667

9. TRUSTEES' REMUNERATION AND BENEFITS

The Trustees received no remuneration during this year or the previous year and there were no expenses reimbursed during this year or in the previous year. The Charity has taken out a Trustee indemnity insurance policy and paid a premium of £1,120 (2020: £1,120).

10. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Administration		 2021
£
121,238
121,238
2021
2		 2020
£
120,985
120,985
2020
2

No employees received emoluments in excess of £60,000.

continued...

Page 19

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

11. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1 January 2021 and 31 December 2021 1,693
NET BOOK VALUE
At 31 December 2021 1,693
At 31 December 2020 1,693

The freehold property at 30 Hazlewood Road, Putney was purchased in 1937 and is used as the Fund's Office. The property was valued on 1st April 2003 by Foxtons, Estate Agents at £1.5m. The market value of the property is now believed to be in the region of £2m. This value has not been incorporated into the financial statements. The property is subject to a covenant whereby it cannot be sold without the prior consent of the Charity Commission.

12. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2021
Additions
Disposals
Revaluations
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Listed
investments
£
27,156,969
410,550
(192,341)
3,037,862
30,413,040
30,413,040
27,156,969

Investment assets held outside the UK total £5,927,841 (2020: £5,768,851).

The value of the following investments represents more than 5% of the total market value as at 31st December 2021:

CCLA Revenue Reserve - £8,773,993 (29%)

CCLA General Fund - £7,319,642 (24%)

continued...

Page 20

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Accrued income
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
15.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
fund
funds
£
£
Fixed assets
1,693
-
Investments
30,166,466
246,574
Current assets
911,606
31,746
Current liabilities
(21,634)
-
31,058,131
278,320
16.
MOVEMENT IN FUNDS		 2021
£
1,309
224,120
225,429
2021
£
21,634
2021
Total
funds
£
1,693
30,413,040
943,352
(21,634)
31,336,451		 2020
£
1,352
127,808
129,160
2020
£
21,555
2020
Total
funds
£
1,693
27,156,969
618,802
(21,555)
27,755,909
Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 At 1.1.21
£
27,514,061
89,604
74,339
58,356
7,744
11,805
241,848
27,755,909		 Net
movement

in funds
£
3,544,070
13,513
11,210
8,801
1,168
1,780
36,472
3,580,542
At

31.12.21
£
31,058,131
103,117
85,549
67,157
8,912
13,585
278,320
31,336,451

continued...

Page 21

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

16. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 Incoming
resources
£
1,418,138
2,164
1,795
1,409
187
285
5,840
1,423,978
Resources
expended
£
(1,124,886)
-
-
-
-
-
-
(1,124,886)
At 1.1.20
£
25,590,652
82,793
68,688
53,920
7,155
10,907
223,463
25,814,115

Gains and
losses
£
3,250,818
11,349
9,415
7,392
981
1,495
30,632
3,281,450
Net
movement
in funds
£
1,923,409
6,811
5,651
4,436
589
898
18,385
1,941,794

Movement
in funds
£
3,544,070
13,513
11,210
8,801
1,168
1,780
36,472
3,580,542
At
31.12.20
£
27,514,061
89,604
74,339
58,356
7,744
11,805
241,848
27,755,909

continued...

Page 22

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

16. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 Incoming
resources
£
1,114,788
2,002
1,661
1,304
173
264
5,404
1,120,192		 Resources
expended
£
(1,162,080)
-
-
-
-
-
-
(1,162,080)		 Gains and
losses
£
1,970,701
4,809
3,990
3,132
416
634
12,981
1,983,682		 Movement
in funds
£
1,923,409
6,811
5,651
4,436
589
898
18,385
1,941,794

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 At 1.1.20
£
25,590,652
82,793
68,688
53,920
7,155
10,907
223,463
25,814,115		 Net
movement

in funds
£
5,467,479
20,324
16,861
13,237
1,757
2,678
54,857
5,522,336
At

31.12.21
£
31,058,131
103,117
85,549
67,157
8,912
13,585
278,320
31,336,451

continued...

Page 23

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 Incoming
resources
£
2,532,926
4,166
3,456
2,713
360
549
11,244
2,544,170		 Resources
expended
£
(2,286,966)
-
-
-
-
-
-
(2,286,966)		 Gains and
losses
£
5,221,519
16,158
13,405
10,524
1,397
2,129
43,613
5,265,132		 Movement
in funds
£
5,467,479
20,324
16,861
13,237
1,757
2,678
54,857
5,522,336

Unrestricted funds comprise those funds which the Trustees are free to use in furtherance of the general objective of the Charity.

Restricted funds comprise of the following funds:

Education Fund: Income of the fund provides grants to orphans for education purposes. War Memorial Fund: Income of the fund provides allowances for benefit of necessitous orphans.

War Memorial Hospital Fund: Income of the fund provides grants to orphans receiving compassionate allowances.

Twells Memorial Fund: Income of the fund provides grants to orphans receiving compassionate allowances. Sir Edmund Henderson: Income of the fund provides education grants to orphans.

17. RELATED PARTY DISCLOSURES

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

18. POST BALANCE SHEET EVENTS

In March of 2020, the World Health Organization declared a novel coronavirus and its resulting disease (COVID-19) a pandemic. In view of the potential impact on the Charity the Trustees have been closely monitoring of the value and performance of the investments held.

Page 24

METROPOLITAN AND CITY POLICE ORPHANS FUND

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

INCOME AND ENDOWMENTS
Donations and legacies
Police subscriptions
Donations
Collecting boxes
Legacies
Investment income
Investment income
Total incoming resources
EXPENDITURE
Raising donations and legacies
Fundraising events
Investment management costs
Investment management costs
Charitable activities
Rates
Insurance
Other premises costs
Telephone
Postage and stationery
Computer expenses
Miscellaneous costs
Grants to individuals
Support costs
Governance costs
Staff salaries and pensions
Auditors' remuneration
Legal and professional
Total resources expended
Net income/(expenditure) before gains and
losses		 2021
£
356,464
55,058
860
267,434
679,816
744,162
1,423,978
1,621
99,135
1,717
2,634
4,464
1,357
670
5,705
1,011
876,754
894,312
121,238
8,374
206
129,818
1,124,886
299,092		 2020
£
354,153
58,373
4,036
25,910
442,472
677,720
1,120,192
5,927
82,135
1,633
3,560
7,612
1,316
35
2,223
1,143
918,980
936,502
120,985
8,667
7,864
137,516
1,162,080
(41,888)

This page does not form part of the statutory financial statements

Page 25

METROPOLITAN AND CITY POLICE ORPHANS FUND

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

FOR THE YEAR ENDED 31 DECEMBER 2021
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net income		 2021
£
243,588
542,680		 2020
£
1,118,548
1,076,660

This page does not form part of the statutory financial statements

Page 26