FRANK RUSSON CHARITABLE TRUST Registered Charity Number.. 237598 TRUSTEES. ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024
Frank Russon Charitable Trust Index to the Accounts Year Ended 5 April 2024 Page Reference and Admlnistrative Information Trustees Annual Report 9-10 Independent Examlner's Report li Statement of Financial Activlties 12 Balance Sheet 13- 15 Notes to the Accounts
Frank Russon Charitable Trust Page I Reference and Administrative Information Year Ended 5 Aprll 2024 Governing Document The Trust is governed by a Declaration of Trust dated 16 April 1964 as amended on 19 November 2018. The Trust's registered charity number is 237598. Trustees Mrs Pamela Clare Hagon Mr Timothy Gerald Tyler Hagon Mr David John Nightingale Clerk to the Trustees Ms Kirsty M McEwen Solicitors Higgs LLP 3 Waterfront Business Park Brierley Hill West Midlands DY5 ILX Investment Managers LGT Wealth Management 14 Cornhill London EC3V 3NR Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling ME19 4TA Independent Examiners Churchill Taxation 835 Birmingham New Road Tption DY4 8AS
Frank Russon Charitable Trust Page 2 Trustees Report Year Ended 5 April 2024 Report of the Trustees for the year ended 5 April 2024 The Trustees present thelr annual report and financial statements of the Trust for the year ended 5 April 2024. The financial statements have been prepared in accordance with the accounting policies set out in the accounts and comply with the Trust's Governing Document, the Charities Att 2011 and the Statement of Recommended Practice applicable to the charities preparing their accounts with the Financial Reporting Standard applicable on l January 2019. Structure. Governance and Management The Trust was registered with the Charity Commission on 10 November 1964 under registered charity number 237598 and is governed by the Declaratlon of Trust dated 16 April 1964 as amended on 19 November 2018 ("the Governing Documents"). The Trust does not artively fundraise and seeks to continue the charitable work desired by the Settlor through the careful stewardshlp of its existing resources. The Governing Documents provide for there to be three Trustees. Trustees are appointed for a term of office for three years, with no maxlmum number of terms of office. Trustees terms of office took effect from their current term of office as served at the date of resolution passed on 19 November 2018. The Trustees must hold one meeting each year. The quorum at any meeting is at least one third of the totèl number of Trustees at the time, or two, whlchever is the greater. At the Trustees, meetings, the Trustee5 agree the broad strategy and areas of activities for the Trust, including consideration of grant making, investment pollcy, level of reserves and risk management. The day to day administration of grants and the processing and handling of applications prior to consideration by Trustee5 15 delegated to the Clerk. The Clerk will consider the monitoring information concerning the performance of grants to date and make recommenclètions to the Trustees concerning the extension, cessation or Suspension of exlsting grant approvals. The Trustee5 would take account of the recommendètions of the ICSA best prartice gulde 'Recruitment, Appointment and Induction of Charity Trustees, should the need to recrult new Trustees arise. The Trustees would look to recruit In light of an appropriate skills audit of the current Board and taking into account the experlence, expertise and diversity of the current Board, as well as their knowledge of the Trust's beneficlal dass.
Frank Russon Charitable Trust Page 3 Trustees Report Year Ended 5 April 2024 New Trustees may be sought by open advertisement or through a dialogue with local communlty groups respecting the ethos of the Trust. To continue the charitable work intended by the Settlor, the Trustees actively seek those with a knowledge of the local are4 when consldering any prospettive candidate. The ultimate decision on selettion 15 a matter for the Trustee5. On appointment new Trustees sign a Trustee Declaratlon and Undertaking commltting them to the givlng of thelr time and expertise. It also confirms their ability to art in the role of Trustees. The induction process has been changed to follow the ICSA good practice guide with a formal induction programme for any newly appointed trustee being led by the Clerk, to include initial tralning in the grant making process, the duties and responsibilities of the Trustees and the role of any sub committees. The welcome pack includes, amongst other information and guidènce, a brief history of the Trust, copy of recent Trustee minutes, a copy of the last three years of annual reports and accounts, a copy of the Governing Document and a copy of the Charity Commission's guidance 'The Essential Trustee.. What You Need to Know, and 'Charities and Public Benefit,. The Trustees intend in the upcoming year, with the support of the Clerk, to developing a code of conduct for Trustees including formal statements of roles and responsibilities and to undertake work on the Charity Governance Code.. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Trustee5 are entitled to claim reasonable out of pocket expenses and where they do those are noted in the accounts. Trustees are required to disclose annually (and as they arise) any potential interest5 which might conflict and register them with the Clerk and In accordance with the Trust's written confllcts of interest policy. Rlsk Management The Trustees have considered the major risks to whlch the Trust is exposed and have reviewed those risks and established systems and procedures to manage those risks. The major financial risk is the variability of investment retum5 on the portfolio and its impact on income levels and capital growth. The Trustees have actively sought to manage this risk by appolnting LGT We6lth Management as Discretlonary Managers of the investment portfollo. Their role is to monitor the performance of the portfolio, to take appropriate artion to mitigate any loss to the portfolio, and to ensure that the objectives as detailed in the Investment Policy Statement are following and reviewed annually. The major operational risk is the extent to which grants awarded to charitable or not for profit organisations advances the objects of the Trust and demonstrate sufficient public benefit. The Trust ha5 managed its risk by retaining Trustees of sufficient expertise and experience, and through the quality of the institutlons and the people who they support. In addition, the Trustees rely on the Clerk to undertake appropriate and proportionate due diligen on applications and ensure all grant giving retains a focus on the public benefit.
Frank Russon Charitable Trust Page 4 Trustees Report Year Ended 5 April 2024 The major regulatory irnpart of the Common Reporting Standard {'the CRS.), on the operation of the Trust. CRS 15 being an international tax trènsparency regime aimed at preventing tax evasion. CRS came into force from l January 2016 and the Trust is now required to provide information about their beneficiaries, tax residency status to HMRC, who will then share thls information with the appropriate tax authority in other Jurisdictions. The Trust is subject to this reglme because it relies on investments for more than 50 % of its income arTrd those investments are professionally managed by a financial institution under discretionary mandate. This means the Trustees are required to carry out due diligence to establish a tax residency status of all beneficiaries, keep records of efforts to comply with the regime, register with HMRC as a financial institution ("Financial Institution") if they have reporting requirements and report to HMRC if required. The grant application process is reviewed annually and the grant appllcation form expanded to collect the necessary due diligence information that is required in order to establish tax residency status of all grènt recipients. Thls includes additional informètion Including tèx resident jurisdiction and entity status (for organisations)- The Trustees will keep this under review. The Trust rnanages thSs regulatory risk by retaining Trustees of sufficient skill and expertise and through the qLJality of the institutions and people who they support. In addition, the Trustees rely on the Clerk to ensLJre any review process retalns a focu5 on the public benefit derived from the funding of the individuals and projects. Objects and Activities for the Public Benefit The objerts of the Trust are to make grants for general charitable purposes. The Trustees confirm that they have referred to the guidance contained in the Charity Cornmission's general guidance on public benefit when reviewing the Trust's objects and purposes and in planning future attlvities and setting the grant making policy for the year. The Trust carries out its objects by providlng grants to charitable and not for proflt organisations (for exclusively charitable purposes). By focusing on these areas of grant attivity, the Trnst achieves its Strategic priority of maintaining a stable grant making prograrnme, balancing support to both individuèls and voluntary organisations (for exclusively charitable purposes). Grant Making The Trustees have power to spend the income and capltal In furtherance of the objects, but have during the course of the year, the Trustees have resolved to spend only the income, retaining the capital.
Frank Russon Charitable Trust Trustees Report Page 5 Year Ended 5 April 2024 The Trust has established its grant making policy to achieve its object5 for the public benefit, to support charitable and not for profit organisations. The Trustees review the grènt making policy annually to ensure It reflects the Trust's objects and thereby advances public benefit. Grants are awarded to chèritable or not for profit organlsations (for exclLJslvely charltable purposes) for capital projects, but the Trustees will not meet core administration costs such ès staff costs or property costs etc. The general policy of the Trustees is not to glve retrospective grants and the Trustees will only conslder one application per year from any applicant. Grant Making Procedure Appllc3tions can only be considered If they are on the Trust's standard applicatlon form. The application form must be completed and returned (together with a copy of any supporting irTrformation relevant to the applicètion) to the Clerk at least four weeks befo the meeting at which the application Is to be considered. The Trustees meet once a year to consider applications. It is the pollcy of the Trustees to consider grants on an equal opportunities basis, regardles5 of gender, religion and ethnic background. Public Beneflt The Trustees confirm that they have referred to the information contained in the Charity Commission's guidance on public benefit when reviewing the Trust's objects and activlties, their grant making policy and plans for future periods. The objects and activities of the Trust are largely determined by the provisions of the Governing Docurllents, and from there the Trustees exercise a discretion in considering how best to meet the public benefit test and ensure that as many charitable and not for profit organisations (for exclusively charitable purposes) benefit. Further detalls of the grants made are set out in schedule to the accounts at Appendlx A. Monitoring and Achievement The Trustees have continued wlth an aspirètion to seek a reasonable return over the long term. In recent year5 the portfolio has shown a welcomed recovery and it Is considered that the long-term objectives to meet income needs and grow the capital remain obtainable. Durlng the year the performance of the principal investment portfolio was marTraged by LGT Wealth Management and was considered satisfactory with 811 benchmarks being largely achieved.
Frank Russon Charitable Trust Trustees Report Page 6 Year Ended 5 April 2024 Grènts awarded during the period are listed at Anrlex A in the accounts. Financial Review The Trust's work is entirely reliant on income and investment returns from its capital. As at 5 Aprll 2024, the value of the Trust fund stood at £1,142,163. During the year the investment income of the Trust amounted to £34,523. Investment Policy and Performance The investment powers of the Trustee5 are wide and allow the Trustees to invest funds in any manner (after taking such advice as they consider necessary) and having regard to the suitability of investments and need for diversification. The principal investment holdings of the Trust comprise funds and portfoli05 of quoted securities. As at 5 April 2024, the value representecl 100 % of the Trust's Investments. The management of the portfolio Is undertaken on a discretionary management basis by LGT Wealth Management and the written investment policy is revlewed on at least an annual basis by the Clerk in corljunttion with the investment managers and ultimately approved by the Trustees. The value of the investment portfolio as at 5 April 2024 was £1,138,852 as compared wlth the value as at 5 April 2023 of £1,057,290. As at 5 April 2024 the Trustees held cash on deposit with CAF Bank of £3,476 (as compared with cash on deposit with LGT Wealth Management of £2,325). Reserves Policy The whole of the Trust's capital Is expendable and this distlnctlon between capital and income is not relevant. The Trustees appreciate that the general principles of charity law reouire Trustees to spend their income within a reasonable period of receipt. The Trustees have set and agreed a policy which broadly identifies the framework within which the Trust will operate its reserves. The intention is that the Trust will retain an appropriate and reasonable level of reserves whilst concurrently ensuring that it Ljses the income in a manner that is within the objetts at the best interests of the Trust and its benefficiarles. Since the Trust receives all of its income from the Investment portfolio, the Trustees are mindful that the source of income can be volètile and subjert to sudden changes in the market. They are concerned that in any year there is a risk that they cannot meet their ongoing administration and professional expense commitments as and when they arise, due to any fluctuations in the market whlch may prevent or signlficantly reduce income.
Frank Russon Charitable Trust Trustees Report Page 7 Year Ended 5 April 2024 The Trustees hève therefore consdered, In conjunttion with the professional advisers, the level of reserves to retain from surplus unrestricted funds. They have decided to bulld up a pot of reserves equivalent to one year'5 admlnistrative and professional expenses but excluding grant commitments. This will ensure that should there be any fluctuation5 in the market which reduce the income available for dlstrlbution, the Trust can use its reserves to continue to meet it5 obligations and liabilities as and when they fall due. Plan for Future Periods The Trustees believe thelr grants have translated into significant public benefit. The Trust is a lasting testimony to the generosity and charitable concerns of the Settlor. In cementing the arrangements already in place, and continuing with its current activities as set out in thi5 report, so that the many and varied charitable and not for profit organisations may continue to benefit In real terms from its finèncial support. The Trust aims to provide a longer term commitment and thereby encourage and support charitable and not for profit organisations. The intention is to continue a programme of grant glving which will translate into significant public benefit. The Trustees will focus on those voluntary organisations who would benefit in real terms (impact) from its financial support, thus provlding and ensuring a longer-term commitment to support. Trustees. Responsibilities in Relation to the Financial Statements The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulations and United Klngdom Accounting Standards. The law applicable to charities in England and Wales required the Trustees to give a true and fair view of the state of affairs of the Trust and of the incoming resource5 and application of resources, including Income and expenditure of the Trust for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply thern consistently,. observe the methods and principles of the Charities SORP,. make judgements and estimates that are reasonable ènd prudent.. state whether applicable accounting standards have been followed, subject to any material departure5 disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless It is inappropriate to presume that the Trust's wlll continue in operation. The Trustees are responsible for keeplng adequate accounting records th8t are sufficient to show and explain the Trust's transactions and disc105e with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity {Accounts and Reports) Regulations 2008 and the Governing Document.
Frank Russon Charitable Trust Page 8 Trustees Report Year Ended 5 April 2024 They are a150 responslble for safeguardlng the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud any other irregularities. The Trustees are responsible for the maintenance and integrity of the Trust and financial information included on the Register of Charities. Approved by the Trustees and signed on their behalf by the Chair: Pamela Clare Hagon Chair
Frank Russon Charitable Trust Page 9 Independent Examiner's Statement Year Ended S April 2024 I report on the accounts of the Trust for the year ended 5 April 2024 which are set out on pages 11 to 15. Respective Responsibilities of Trustees and Examiner A5 the Trust's Trustees you are responsible for the preparation of the accounts,. you consider that an audit Is not required for this year under section 122(2) of the Charities Att 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to: Examine the accounts under settlon 145 of the 2011 Art; To follow the procedures lald down in the general Directions given by the Charlty Comrnission under section 145(5)(b) of the 2011 Art,. and To state whether partlcular matters have come to my attention state. Basis of Independent Examiner's report My examination was carried out In accordance wlth the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Trust and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. Independent Examiner's Statement In connection wlth my examination, no matter has come to my attention.. (i) which gives me reasonable cause to believe that in any material respect the requirements to keep accounting records in accordance with Section 130 of the 2011 Act; and to prepare accounts which accord with the accountlng records and to comply with the accounting requlrements of the 2011 Act have not been met,. or (2) to which, in my oplnion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Frank Russon Charitable Trvst Page 10 Independent Examlner's Statement Year Ended 5 April 2024 Signed.. Name.. S11-P4rta i É i LL Relevant professional qualification or body.. Addre5S OYi* 8&5 Date.. 2ililLS
Frank Russon Charitable Trust Page 11 Statement of Financial Activities Year Ended 5 April 2024 Incoming Resources Investment income Bank interest 34,523 341 33,736 41 Total Incoming Resources 34,864 33,777 Resources Expended Dlrect Charitable expenditure Other expenditure administration 1.000 15,328 13,931 Total Resources Expended Net incoming resources 18,536 19,846 Gains (losses) on investments Realised Unrealised 86,622 Net movements in funds 73,398 166,776) Accumulation fund at 5 Aprll 2023 Accumulation fund at 5 April 2024 1 068,765 1,135 541 1 142 163 1,068 765
Frank Russon Charitable Trust Balance Sheet Page 12 Year Ended 5 April 2024 02 Fixed Assets Investments Total Fixed Assets 1,138,852 1,138,852 1,057,290 1,057,290 Current Assets Cash at bank Debtors 5,801 120 16,155 120 Total Current Assets 5,921 16,275 Liabilities Creditors: amounts fallin9 due within one year (2,610) (4,800) Net current assets 3,311 11,475 Total assets les5 current Ilabilities 1,142,163 1,068,765 Accumulated Fund 1,142,163 1,068,765 The notes at pages 13 to 15 form part of these accounts Approve(J by the Trustees and signed on their behalf by the Chair.. Parnela Clare Hagon Chair
Frank Russon Charitable Trust Notes to the Accounts Pa9e 13 Year Ended 5 April 2024 l. Accounting Policies (a) Basis of preparation The financlal statements have been prepared under the hlstoric cost convention, wlth the exception that investments are included at market value. The financial statements have been prepared In accordarTrce with the Statement of Recommended Practice.. Accounting and Reporting by Charities (FRSEE) issued in January 2015 and applicable UK Accounting Stèndards and the Charities Act 2011. Ib) Funds structu The Trust has one fund, an unrestritted income fund. This is a fund whlch the trustees are free to use for any purpose in furtherance of the charitable objects. (c) Incoming resources All incoming resources are recognised once the Trust has entitlement to the resources, it IS certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. (dl Resources expended Liabilities are recognised as resources expended as soon as there is a legal or construrtive obligation committing the Trust to the expenditure. All expenditure 15 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grant5 payable are payments made to in the furtherance of the charitable objectives of the trust. (e) Other expenditure adrninistration The costs of generating funds consists of investment management fees, legal fees, accountancy fees and other governance and regulatory fees. (Q Direct charitable expenditure The cost5 of charitable attivities include grants made. (g) Fixed asset investments Investments are stated at market value as at the balance sheet dète. The statement of financial activities Includes the net gain and losses arising on revaluation and disposals throughout the year. (h) Realised gains and losses All gains and losses are taken to the Statement of Financial Activlties as they arise. Realised gains and losses on investments are calculated as the dlfference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the dlfference between and market value at the year end and openlng market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities. 2. Related party transactions and trustees. remuneration Trustees received no remuneration and claimed no expenses In the year.
Frank Russon Charitable Trust Notes to the Accounts Page 14 Year Ended 5 April 2024 Adminlstration Trustee Expenses Investment Management Fee Bank Charge Higgs LLP fee Accounts Examination fee 8,527 63 6,210 528 15,328 iii 8,465 75 4,800 480 13,931 Trustees No remuneration was paid to the Trustees. Quoted Investments Market value at start of accounting year Cash movements re.. Share changes Realised gain/(Ios5) Unrealised galn/(loss) Market value at end of accounting year 1,057,290 26,700 1,125,430 18,482 54,862 1,138,852 86,622 1 057,290 Cash at Bank CAF LGT Wealth Management 3,476 2,325 5,801 3,451 12,704 16,155 Debtors Higgs LLP 120 120 120 120
Frank Russon Charitable Trust Page 15 Notes to the Accounts Year Ended 5 April 2024 02 02 Creditors." amounts falling due within one year Unrepresented cheques re.. Donations Higgs LLP 2,610 2,610 4,800 4,800 9 Analysis of charitable expenditure The Charity undertakes its charitèble attlvlties through grant making and aw8rding grants to a number of organisations in furtherance of its charitable artivitie5. Grant funded activities: Royal Trinity Hospice 1,000