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2023-12-31-accounts

METROPOLITAN AND CITY POLICE ORPHANS FUND

Registered Charity Number 234787

ANNUAL REPORT & ACCOUNTS

2023

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

METROPOLITAN AND CITY POLICE ORPHANS FUND

PATRON

H.R.H The Prince of Wales KG, KT, PC, ADC

METROPOLITAN AND CITY POLICE ORPHANS FUND

PRESIDENT

SIR MARK ROWLEY QPM COMMISSIONER METROPOLITAN POLICE

VICE PRESIDENT

ANGELA MCLAREN COMMISSIONER CITY of LONDON POLICE

METROPOLITAN AND CITY POLICE ORPHANS FUND

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Page
Reference and Administrative Details 1
Chairman's Report 2
Report of the Trustees 3 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 31ST DECEMBER 2023

TRUSTEES

D Davies (resigned 1.6.23) G Gilbert D Lawes (appointed 12.7.23) D Lawes (appointed 12.7.23) A O'Donnell (appointed 12.7.23) S Ovens (resigned 1.6.23) G Smyth Q.P.M J Howard N Jerome (resigned 1.7.23) S Davies G Gaskain K Malda K Gordon M Reed P Dodds A Picton (appointed 1.10.23) A Picton (appointed 1.10.23) S Cundy (appointed 1.7.23) H Isaac (appointed 1.4.23) D Slade (appointed 1.6.23) L Hayden (appointed 1.9.23)

PRINCIPAL ADDRESS 30 Hazlewell Road Putney London SW15 6LH REGISTERED CHARITY 234787 NUMBER AUDITORS George Hay & Company Chartered Accountants & Statutory Auditors 83 Cambridge Street London SW1V 4PS

WEBSITE: https://www.met-cityorphans.org.uk/ CHIEF EXECUTIVE OFFICER (CEO): P. Smyth DEPUTY CEO: M. Cooper (passed away May 2023) D. Davies (from October 2023)

Page 1

METROPOLITAN AND CITY POLICE ORPHANS FUND

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

I am delighted to present my second 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 my predecessor Simon Ovens, who retired during 2023, for the years of dedicated service he gave to the Fund. It is a tribute to his leadership that the Fund is in such a healthy position, whilst having achieved record levels of charitable giving.

Unfortunately I also have to report that our Deputy Chief Executive Malcolm Cooper passed away in May 2023. Malcolm had worked for the fund for just a couple of months short of 10 years. Over that time he helped hundreds of families with compassion and empathy. He will be sadly missed.

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.

Also I would like to thank the members of the Board of Management, they give up their time for no other benefit but to help others, I thank them for their commitment to the fund.

The COVID-19 pandemic had a major effect on our investments with sharp drops in valuations. We are pleased 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. Subsequent events such as the war in Ukraine have led to higher inflation and steeply rising fuel costs. Investment valuations have been largely stagnant with some falls in value, but are now beginning to exhibit growth.

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 and the Global financial situation so much easier.

We are pleased that dividends held up better than we could have hoped for, and have actually increased slightly.

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.

Page 2

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023

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

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.

Page 3

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

OBJECTIVES AND ACTIVITIES 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.

For 2022 the Fund mindful of the financial difficulties facing families coping with inflation and higher fuel costs, decided to introduce a "one off" winter fuel payment. This payment was paid per household rather than the normal payments which are paid per child.

Payments made: 2023 2022
- Compassionate Allowance £580,287 £548,472
- Education Grants (includes tuition fee grants) £59,323 £31,620
- Clothing Grant £5,250 £18,000
- Holiday Grant £132,300 £147,800
- Family Support £93,909 £94,567
- Bereavement £44,000 £44,000
- Winter Fuel £Nil £62,100
- Grants to institutions £10,000 £12,136
TOTAL £925,069 £958,695

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 (£925,069) during the year; the Trustees' are of the opinion that they have discharged their duties under the Charity's Deed of Trust.

Page 4

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023

ACHIEVEMENT AND PERFORMANCE

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 £24,022 compared to a surplus of £6,965 in 2022.

Expenditure in 2023 decreased by £26,267 on the previous year. Prior to 2021 had seen small deficits in expenditure over income, but the last 2 years report a surplus. 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 £33,626 to £925,069 compared to 2022.

Raising funds; decreased by £6,573 to £91,324, details of this expenditure can be found in the notes to the financial statements, under the heading 'Raising Funds'.

Gains on investments amounted to £1,972,179 compared to a loss on investments of £3,856,635 in 2022. Taking into account these gains means that the Fund increased by £2,041,145 in 2023.

Principal funding sources

Income; in 2023 increased by £41,977 on the previous year , and due to the gain in value of our investments (unrealised) and the charities funds increased by £2,041,145.

Police Subscriptions; which produced 30% of our income for 2023 and increased by £21,825 to £374,571 compared to £352,746 in the previous year.

Donations; increased from £60,976 to £69,208. Donations accounted for 5% of our income.

Donations through Collecting Boxes; increased by £742 to £2,192 compared to 2022. 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 no legacy in the year (2022: £2,000) that was invested in our Unrestricted Funds Account.

Investment Income; which produced 64% of our income; increased by £13,178 to £803,967.

Page 5

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

FINANCIAL REVIEW

Reserves policy

The current level of reserves is £29,520,961. The Fund is increasingly reliant upon the income generated by these reserves to fulfil it's charitable objectives. In 2023 the reserves generated 64% 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:

a) The amount of police officer subscriptions

b) The number of recipients of the allowances

c) The level of inflation

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

The charity was founded in 1870 thanks to the generosity of serving officers contributing from pay. Direct contributions from serving officers has always been the largest source of donated income. The substantial reserves that have been built up over our 150 plus years now provide the largest proportion of our income. The contributions of serving officers still provide around 30% of our income and are therefore extremely significant to our finances.

In 1961, the Metropolitan Police decided that there were too many different deduction from pay schemes, they therefore consolidated the charitable deductions into one scheme known as the Metropolitan Police Benevolent Fund (MPBF). Officers contributions to the MPBF are administered by the MPBF and then shared out amongst the constituent charities of which we are one.

In December 2023 we were informed that the number of serving officers contributing to the MPBF had fallen considerably. Due to this fall the MPBF were unable to provide the normal level of funding to the Orphans Fund and decided to cut our funding by £100,000 for 2024. We had no prior warning that our funding would be cut by such a large amount. We have also been warned that if the number of officers contributing to the MPBF does not increase, further cuts to our funding could occur.

In 2024 we will be offering our assistance to the MPBF and the Metropolitan Police Federation to try and increase the number of officers contributing to the MPBF.

Given the background of the Pandemic and the world situation, 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. The money donated by serving officers in both forces is by far the largest source of donated income.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.

Page 6

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

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, 17th January 2017 and 9th May 2023.

Organisational structure

The overall governance of the Fund is vested in the Trustees, there are currently 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 Board of Management recently changed the rules to allow more retired officers the Fund is now permitted to have sixteen Trustees.

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.

ACKNOWLEDGEMENTS

The Trustees wish to convey their sincere thanks to all our generous Donors and Subscribers, for their continued support in 2023.

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.

The Trustees wish to convey their sincere condolences to the family of our Malcolm Cooper, who passed away in May 2023. The Trustees are grateful for his service to support and promote the Fund and to the Police family as a whole in his various roles over the years.

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).

Page 7

METROPOLITAN AND CITY POLICE ORPHANS FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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

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 ............................................. and signed on its behalf by:

........................................................................ M Reed - 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 31st December 2023 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 31ST DECEMBER 2023

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/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
fund
funds
£
£
445,971
-
798,214
5,753
1,244,185
5,753
91,324
-
580,287
-
344,782
-
163,284
-
1,295
-
1,180,972
-
1,952,156
20,023
2,015,369
25,776
27,224,700
255,116
29,240,069
280,892		 2023
Total
funds
£
445,971
803,967
1,249,938
91,324
580,287
344,782
163,284
1,295
1,180,972
1,972,179
2,041,145
27,479,816
29,520,961		 2022
Total
funds
£
417,172
790,789
1,207,961
97,897
548,472
410,223
150,647
-
1,207,239
(3,857,357)
(3,856,635)
31,336,451
27,479,816

The notes form part of these financial statements

Page 12

METROPOLITAN AND CITY POLICE ORPHANS FUND

BALANCE SHEET 31ST DECEMBER 2023

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		 2023
£
1,693
28,681,744
28,683,437
142,057
748,910
890,967
(53,443)
837,524
29,520,961
29,520,961
29,240,069
280,892
29,520,961		 2022
£
1,693
26,651,149
26,652,842
139,191
724,888
864,079
(37,105)
826,974
27,479,816
27,479,816
27,224,700
255,116
27,479,816

The financial statements were approved by the Board of Trustees and authorised for issue on 8[th] October 2024 and were signed on its behalf by:

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

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

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

The notes form part of these financial statements

Page 13

METROPOLITAN AND CITY POLICE ORPHANS FUND

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of fixed asset investments
Sale of fixed asset investments
Net cash used in 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		 2023
£
82,438
82,438
(1,134,270)
1,075,854
(58,416)
24,022
724,888
748,910		 2022
£
102,431
102,431
(878,920)
783,454
(95,466)
6,965
717,923
724,888

The notes form part of these financial statements

Page 14

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2023

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
2023 2022
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 2,041,145 (3,856,635)
Adjustments for:
(Gain)/losses on investments (1,972,179) 3,857,357
(Increase)/decrease in debtors (2,866) 86,238
Increase in creditors 16,338 15,471
Net cash provided by operations 82,438 102,431

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£ £ £
Net cash
Cash at bank 724,888 24,022 748,910
724,888 24,022 748,910
Total 724,888 24,022 748,910

The notes form part of these financial statements

Page 15

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 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 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.

continued...

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METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

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		 2023
£
374,571
69,208
2,192
-
445,971
2023
£
803,967
2023
£
2,856
2023
£
88,468
91,324		 2022
£
352,746
60,976
1,450
2,000
417,172
2022
£
790,789
2022
£
3,867
2022
£
94,030
97,897

continued...

Page 17

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

5. CHARITABLE ACTIVITIES COSTS

Grant
funding of
activities
Direct
(see note
Costs
6)
£
£
Compassionate allowances
-
580,287
Miscellaneous grants
-
344,782
Direct costs
22,477
-
22,477
925,069
6.
GRANTS PAYABLE
Compassionate allowances
Miscellaneous grants
The total grants paid to institutions during the year was as follows:
Family support
The total grants paid to individuals during the year was as follows:
Compassionate allowances
Clothing
Education
Holiday
Family support
Bereavement
Winter fuel		 Support
costs (see
note 7)
£
-
-
140,807
140,807
2023
£
580,287
344,782
925,069
2023
£
10,000
2023
£
580,287
5,250
59,323
132,300
93,909
44,000
-
915,069		 Totals
£
580,287
344,782
163,284
1,088,353
2022
£
548,472
410,223
958,695
2022
£
12,136
2022
£
548,472
18,000
31,620
147,800
94,567
44,000
62,100
946,559

continued...

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METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

7. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Other resources expended 1,295
Direct costs 140,807
142,102

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

Governance costs

Governance costs
Other
resources
Direct
expended
costs
£
£
Staff salaries and pensions
-
124,520
Auditors' remuneration
1,295
9,691
Legal and professional
-
6,596
1,295
140,807
AUDITORS' REMUNERATION
Fees payable to the charity's auditors for the audit of the charity's financial
statements		 2023
Total
activities
£
124,520
10,986
6,596
142,102
2023
£
10,986		 2022
Total
activities
£
126,981
9,755
278
137,014
2022
£
9,755

8. AUDITORS' REMUNERATION

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 £1,155 (2022: £1,120).

10. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Administration		 2023
£
124,520
124,520
2023
2		 2022
£
126,981
126,981
2022
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 31ST DECEMBER 2023

11. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1st January 2023 and
31st December 2023 1,693
NET BOOK VALUE
At 31st December 2023 1,693
At 31st December 2022 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 1st January 2023
Additions
Disposals
Revaluations
At 31st December 2023
NET BOOK VALUE
At 31st December 2023
At 31st December 2022		 Listed
investments
£
26,651,149
1,134,270
(615,348)
1,511,673
28,681,744
28,681,744
26,651,149

Investment assets held outside the UK total £5,687,132 (2022: £4,697,125).

The value of the following investments represents more than 5% of the total market value as at 31st December 2023:

CCLA Revenue Reserve - £8,466,231 (30%)

CCLA General Fund - £7,062,894 (25%)

continued...

Page 20

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

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
28,443,818
237,926
Current assets
848,001
42,966
Current liabilities
(53,443)
-
29,240,069
280,892
16.
MOVEMENT IN FUNDS		 2023
£
1,955
140,102
142,057
2023
£
53,443
2023
Total
funds
£
1,693
28,681,744
890,967
(53,443)
29,520,961		 2022
£
1,593
137,598
139,191
2022
£
37,105
2022
Total
funds
£
1,693
26,651,149
864,079
(37,105)
27,479,816
Unrestricted funds
General fund
Restricted funds
Education
War memorial fund
War memorial hospital
Twells memorial
Sir Edmund Henderson
TOTAL FUNDS		 At 1.1.23
£
27,224,700
94,520
78,417
61,558
8,169
12,452
255,116
27,479,816		 Net
movement

in funds
£
2,015,369
9,547
7,938
6,212
814
1,265
25,776
2,041,145
At

31.12.23
£
29,240,069
104,067
86,355
67,770
8,983
13,717
280,892
29,520,961

continued...

Page 21

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

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
£
1,244,185
2,128
1,784
1,380
173
288
5,753
1,249,938
Resources
expended
£
(1,180,972)
-
-
-
-
-
-
(1,180,972)
At 1.1.22
£
31,058,131
103,117
85,549
67,157
8,912
13,585
278,320
31,336,451

Gains and
losses
£
1,952,156
7,419
6,154
4,832
641
977
20,023
1,972,179
Net
movement
in funds
£
(3,833,431)
(8,597)
(7,132)
(5,599)
(743)
(1,133)
(23,204)
(3,856,635)

Movement
in funds
£
2,015,369
9,547
7,938
6,212
814
1,265
25,776
2,041,145
At
31.12.22
£
27,224,700
94,520
78,417
61,558
8,169
12,452
255,116
27,479,816

continued...

Page 22

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

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
£
1,202,493
2,026
1,681
1,320
175
266
5,468
1,207,961		 Resources
expended
£
(1,207,239)
-
-
-
-
-
-
(1,207,239)		 Gains and
losses
£
(3,828,685)
(10,623)
(8,813)
(6,919)
(918)
(1,399)
(28,672)
(3,857,357)		 Movement
in funds
£
(3,833,431)
(8,597)
(7,132)
(5,599)
(743)
(1,133)
(23,204)
(3,856,635)

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 1.1.22
£
31,058,131
103,117
85,549
67,157
8,912
13,585
278,320
31,336,451		 Net
movement

in funds
£
(1,818,062)
950
806
613
71
132
2,572
(1,815,490)
At

31.12.23
£
29,240,069
104,067
86,355
67,770
8,983
13,717
280,892
29,520,961

continued...

Page 23

METROPOLITAN AND CITY POLICE ORPHANS FUND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023

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
£
2,446,678
4,154
3,465
2,700
348
554
11,221
2,457,899		 Resources
expended
£
(2,388,211)
-
-
-
-
-
-
(2,388,211)		 Gains and
losses
£
(1,876,529)
(3,204)
(2,659)
(2,087)
(277)
(422)
(8,649)
(1,885,178)		 Movement
in funds
£
(1,818,062)
950
806
613
71
132
2,572
(1,815,490)

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 31st December 2023.

Page 24

METROPOLITAN AND CITY POLICE ORPHANS FUND

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023

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 institutions
Grants to individuals
Support costs
Governance costs
Staff salaries and pensions
Auditors' remuneration
Legal and professional
Total resources expended
Net income before gains and losses		 2023
£
374,571
69,208
2,192
-
445,971
803,967
1,249,938
2,856
88,468
1,874
2,688
3,463
1,475
60
12,691
226
10,000
915,069
947,546
124,520
10,986
6,596
142,102
1,180,972
68,966		 2022
£
352,746
60,976
1,450
2,000
417,172
790,789
1,207,961
3,867
94,030
1,782
2,594
6,798
1,147
62
158
1,092
12,136
946,559
972,328
126,981
9,755
278
137,014
1,207,239
722

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 31ST DECEMBER 2023

FOR THE YEAR ENDED 31ST DECEMBER 2023
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net income		 2023
£
460,506
529,472		 2022
£
390,151
390,873

This page does not form part of the statutory financial statements

Page 26