## **FRIENDS TRUSTS LIMITED**
# **Report and Financial Statements for the year ended 31 December 2024**
**Company Registered in England No. 188362 Registered Charity No. 237698**
**Friends Trusts Limited**
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
Constitution:
The Company is the denominational trust corporation and custodian trustee for the Religious Society of Friends (Quakers) in Britain by an authorisation issued under the Law of Property (Amendment) Act 1926 by the Lord High Chancellor on 29 May 1930. The Company is limited by guarantee and has no share capital. In the event of the Company being wound up during the period of membership, or within the year following, each member is required to contribute an amount not exceeding £1. The company registration number is 188362 and the charity registration number is 237698.
Directors: The Directors (or trustees for the purposes of charity legislation) who served during the year were:
||Nigel Barnes|(to March 2024)|
|---|---|---|
||Steven Burkeman|(to May 2024)|
||David Harries|(to May 2025)|
||Nick Perks|(to May 2025)|
||Paul Whitehouse|(as BYM Treasurer)|
||Mark Tod|(from April 2024)|
||Malcolm Sterratt|(from April 2024)|
||Alison Clarke|(from April 2024)|
||John Capper|(from April 2024)|
||Alastair Thomas|(from April 2024)|
||Martin Ford|(from April 2025)|
||Alastair Jackson|(from April 2025)|
|Secretary:|John Dash||
|Registered|Friends House||
|Office:|173 - 177 Euston Road||
||LONDON, NW1 2BJ||
|Main Bankers:|The Co-operative Bank plc||
||60 Kingsway,||
||LONDON, WC2B 6DS||
||CafCash Limited||
||Kings Hill||
||WEST MALLING, ME19 4TA||
|Investment|Rathbone Greenbank Investments||
|Managers:|10 Queen Square||
||BRISTOL, BS1 4NT||
|Solicitors:|Hunters Solicitors||
||9 New Square||
||Lincoln’s Inn||
||LONDON, WC2A 3QN||
|Auditors:|Sayer Vincent||
||Invicta House||
||108-114 Golden Lane,||
||London,||
||EC1Y 0TG||
_**Page 2 of 31**_
**Friends Trusts Limited**
## **Report of the Directors for the year ended 31 December 2024**
The Directors have pleasure in presenting their report and the accounts of the charitable company for the year ended 31 December 2024.
The report has been prepared in accordance with Part 8 of the Charities Act 2011 but equates to a report of the directors for the purposes of company legislation.
The accounts have been prepared in accordance with the accounting policies set out on pages 14 and 15 of the attached accounts and comply with the charitable company’s Articles of Association, applicable laws and the requirements 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), issued by the Charity Commission (effective 1 January 2019).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The names of the directors who served during the year, and who were in office at the date on which this report and attached financial statements were approved, are shown on page 2.
The Treasurer of Britain Yearly Meeting is a director ex-officio. The other directors, who must be members of the Religious Society of Friends (Quakers), (the “Society”), are appointed by Meeting for Sufferings, the executive body of the Society in Britain, to hold office for 3 years, retiring by annual rotation. They may be re-appointed. On appointment new Directors are provided with a copy of the articles of association, copies of the minutes and accounts for the previous year and other induction material. When appropriate they are invited to attend training provided by Britain Yearly Meeting (the charity that carries out the central work of the Society) for trustees and committee members.
The day-to-day management of the Company was carried out by the Company Secretary whose services are provided without charge by Britain Yearly Meeting. All policy decisions are taken by the Board of Directors, which usually meets four times a year.
The Directors are the only company members, and their liability is limited to £1 due to the Company being limited by guarantee. The number of guarantees at 31 December 2024 was 10 (2023: 7).
## **Relationships between BYM and related Parties**
The company works in close partnership with Britain Yearly Meeting which provides secretarial and administrative support for the work of Friend Trusts Limited.
## **OBJECTS**
The Company’s objects are set out in full in its Articles of Association, but the principal object of the Company is to act as custodian trustee or nominee for the Religious Society of Friends (Quakers) in Britain (the Society) and various bodies connected with the Society. The Company also administers certain trusts where it has been appointed managing trustee.
## **ACTIVITIES**
## **Custodian Trustee or Nominee**
More than 450 properties are held in the name of Friends Trusts Limited on behalf of more than 70 organisations and in excess of 120 investments on behalf of more than 50 beneficial owners.
The Company is the denominational trust corporation for the Religious Society of Friends (Quakers). The majority of the beneficial owners for which it acts as custodian trustee or nominee are unincorporated constituent meetings of the Society, together with a small number of organisations constituted for the benefit of, or in connection with, the Society (see note 10).
Properties are recorded in a Register under the name of the beneficial owner and investments are held with designated account numbers unique to each beneficial owner.
Transactions in property and investments are carried out on instructions from managing trustees or beneficial owners.
_**Page 3 of 31**_
**Friends Trusts Limited**
## **Managing Trustee**
The Company administers certain trusts where it has been appointed managing trustee. The income is distributed in accordance with the terms of each trust.
## **Charitable Activities - Distributions**
The distribution of the income from some managed trusts is at the discretion of the Directors and, in these cases, the policy is to pass the funds to Britain Yearly Meeting in support of its central work. This is partly in recognition of the staffing and services it provides to the Company without charge.
Where legacies are left to the Company without a binding obligation, the Directors will endeavour to observe any wishes expressed in the will. If no wishes are expressed, the policy is to pass the funds to Britain Yearly Meeting in support of its central work.
_**Page 4 of 31**_
**Friends Trusts Limited**
## **Legacies and Funds Awaiting Distribution**
The nomination of the Company as trustee in legacies means that registered charitable status can easily be confirmed for inheritance tax exemption purposes and legacies do not fail through uncertainty.
During the year, the Company received £994,590 (2023: £241,376) for passing on to other Quaker charities in accordance with the terms of those legacies. These amounts are not included within the Statement of Financial Activities.
## **PUBLIC BENEFIT**
The Directors have considered the Charity Commission’s guidance on public benefit and have had regard to it in their administration of the Company. In its principal role as custodian trustee, the Company helps to promote, support and maintain Quaker Meetings and other Quaker charities which provide public benefit through the provision of religious services open to all members of the public without charge and the establishment of a worshipping community carrying out other connected charitable work. In promoting the efficiency and effectiveness of the work of Quaker Meetings and other Quaker charities for the benefit of individuals, communities and society as a whole, the Directors believe that the work of the Company provides benefit to the public in accordance with its objects.
As managing trustee of charitable trusts it provides grants for charitable purposes to members of the public or for other charitable purposes in accordance with the terms of such trusts, again for public benefit in accordance with its objects. The Directors believe that there is no disbenefit or private benefit in the Company’s work.
## **FINANCIAL REVIEW**
|**CIAL REVIEW**||||
|---|---|---|---|
|||**2024**|**2023**|
|||**£**|**£**|
||Total and endowments|213,362|164,960|
||Income from legacies|(5,167)|(16,337)|
||Investment income|151,554|143,370|
||Total expenditure in the year|257,582|230,325|
|Overall net (loss)/profit|before (gains)/losses from investments|(44,221)|(65,365)|
|Realised|and unrealised investment profit/(loss)|(19,808)|459,579|
||Net positive movement in funds|(64,029)|394,214|
||Total net assets|7,319,215|7,383,244|
||Investments market value|6,866,785|6,914,717|
## **Report of the Directors for the year ended 31 December 2024**
The financial position of the Company does not include the accounts for those trusts and Quaker Meetings and organisations for which the Company acts as custodian trustee, nominee or agent only.
## **Investment Policy and Performance**
None of the trusts for which the Company is managing trustee contain any specific power for investment, so the provisions of the Trustee Act 2000 determine the powers of investment.
The Board has adopted a socially responsible investment policy so that only investments that conform to certain criteria are held. The policy incorporates the aim to maximise returns from investments within a medium level of risk. Investments are managed by discretionary managers appointed by the Board, currently Rathbone Greenbank.
Performance is reviewed regularly against the agreed benchmarks. During the year, both the Common Investment Fund portfolio and the Blackwell Trust portfolios underperformed against the MSCI PIMFA Balanced and bespoke benchmark TR4, with the largest impact being the strong performance of the very large technology companies which do not sit comfortably in a sustainable investment portfolio. The portfolios also underperformed CPI+3% which is the long-term return objective.
_**Page 5 of 31**_
**Friends Trusts Limited**
## **Risk Management**
Friends Trusts Ltd has a risk management policy, which has been set and agreed by the Directors. The policy is designed to identify and analyse key strategic and operational risks facing Friends Trusts Ltd and, where at unacceptable levels, to take steps to mitigate the risks.
We define key strategic and operational risks as those that, without effective or appropriate mitigation, are highly likely to occur and would have a positive or negative impact on the Company’s ability to fulfil its purposes. These risks are reported to the Directors through a risk management process which allows them both to challenge any assumptions the management team has made about risks and to understand the context in which decisions are taken. This helps to ensure that the most serious risks are being managed effectively
The Directors have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Company and are satisfied that systems are in place to mitigate exposure to the major risks.
The principal risks are identified as follows:
- _The potential loss of capital value and / or poor returns in relation to investments_ . The Directors consider that the appointment of a discretionary investment manager together with annual reviews of the investment policy and of performance against benchmarks constitutes an appropriate control procedure.
- _Staff capacity and continuity_ . Trustees have agreed with BYM the importance in future of having a single point of contact for Trustees and for external communications with Area Meetings, for maintaining good records, and to hold an overview of FTL’s activity. This has now been implemented.
- _Unrestricted income and reserves limits_ the ability of Directors to fund initiatives of strategic importance for the Company. It is now recognised that the Company needs to develop its infrastructure to achieve its objectives and the Company is now building up its reserves.
## **Reserves Policy**
Up until 2019, it was the policy of the Board to minimise the amounts of reserves (other than endowment funds) by distributing annually most of the income received by the restricted and general funds. Under the current operational arrangements, the company does not employ any staff or have any other significant regular operational costs. Nevertheless, the Directors recognise the need to develop the Company’s infrastructure, and to maintain some modest reserves to give greater flexibility and resilience. Within the current operational arrangements, trustees consider this sufficient.
At the end of the year, unrestricted reserves amount to £166k (2023: £166k). It is felt that these reserves are sufficient.
## **Going Concern**
We have set out above a review of Friends Trust Limited’s financial performance and the general reserves position for 2024 and changing risk profile. The financial position as at 31 December 2024 remains stable despite the uncertainties in the wider economy and short-term investment movements. Our net current assets (short-term bank deposits, monies owed to us, less monies owed by us and payable within one year) amount to £452k (2023: £469k).
We will continue to monitor the situation as it unfolds and adapt our finances and approach accordingly. Taking into account all factors, we do not believe there are material uncertainties that call into doubt Friends Trust Limited’s ability to continue in operation for the foreseeable future. Accordingly, the accounts have been prepared on the basis that Friends Trust Limited is a going concern.
_**Page 6 of 31**_
**Friends Trusts Limited**
## **PLANS FOR FUTURE PERIODS**
The short-term focus of the company is to ensure that all operational systems and processes, and the service to Area Meetings, is up to a good standard. The Directors are also reflecting on the overall approach of the company, in order to put in place longer term plans.
A number of Directors came to the end of their appointments during the year. New appointments have been made to the Board, and Directors look forward to working as a refreshed governance team.
The Directors continue to reflect on the overall approach of the company, in order to put in place longer term plans.
## **STATEMENT OF DIRECTORS’ RESPONSIBILITIES**
The trustees (who are also directors of Friends Trusts Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP (FRS102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware; and
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s.418 of the Companies Act 2006.
## **AUDITORS**
Elective resolutions, as defined by the Companies Act 2006, have been approved which dispense with (a) the laying of accounts and reports before a general meeting, (b) the holding of an annual general meeting each year, and (c) the need to reappoint auditors.
The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.
By Order of the Board on 20 June 2025
PAUL WHITEHOUSE Chair
_**Page 7 of 31**_
**Friends Trusts Limited**
## **FRIENDS TRUSTS LIMITED**
## **Statement of Financial Activities for the year ended 31 December 2024**
|Notes
**Income and endowments from:**
2
Donations
Donated services
Legacies
Investments
**Total**
**Expenditure on:**
Raising funds: investment
management charges
Charitable activities
3
**Total**
Net (losses) before investment losses
Losses on investment assets
**Net income/(expenditure)**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|Unrestricted
Restricted
Endowment
Total Funds
Funds
Funds
Funds
2024
£
£
£
£
167
-
-
167
66,808
-
-
66,808
(5,167)
-
-
(5,167)
5,007
143,424
3,123
151,554|
|---|---|
||**66,815**
**143,424**
**3,123**
**213,362**|
||-
-
33,405
33,405
66,808
157,370
-
224,178|
||**66,808**
**157,370**
**33,405**
**257,583**|
||
7
(13,946)
(30,282)
(44,221)
-
-
(19,808)
(19,808)|
||7
(13,946)
(50,090)
(64,029)
7
(13,946)
(50,090)
(64,029)
166,212
256,825
6,960,207
7,383,244|
||**166,219**
**242,879**
**6,910,117**
**7,319,215**|
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 12 to 25 form part of these financial statements.
_**Page 8 of 31**_
**Friends Trusts Limited**
## **FRIENDS TRUSTS LIMITED**
## **Statement of Financial Activities for the year ended 31 December 2023**
Comparative information as follows:
|Notes
**Income and endowments from:**
2
Donations
Donated services
Legacies
Investments
**Total**
**Expenditure on:**
Raising funds: investment
management charges
Charitable activities
3
**Total**
Net (losses) before investment
losses
Gains on investment assets
**Net income/(expenditure)**
**Transfers between funds**
5.1.a
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
|Unrestricted Restricted
Endowment
Total Funds
Funds
Funds
Funds
2023
£
£
£
£
200
200
37,727
37,727
(16,337)
(16,337)
1,319
134,266
7,785
143,370|
|---|---|
||**22,909**
**134,266**
**7,785**
**164,960**|
||
31,532
31,532
37,728
168,215
(7,150)
198,793|
||**37,728**
**168,215**
**24,382**
**230,325**|
||
(14,819)
(33,949)
(16,597)
(65,365)
-
-
459,579
459,579|
||(14,819)
(33,949)
442,982
394,214
(14,819)
(33,949)
442,982
394,214
181,031
290,774
6,517,225
6,989,030|
||**166,212**
**256,825**
**6,960,207**
**7,383,244**|
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 12 to 25 form part of these financial statements.
_**Page 9 of 31**_
**Friends Trusts Limited**
## **FRIENDS TRUSTS LIMITED**
## **Balance Sheet at: 31 December 2024**
|Notes
2024
£
£
**Fixed assets:**
Investments
6
6,866,785
_Total fixed_
_assets_
6,866,785
**Current Assets:**
Debtors
9
1,092
Cash at bank and on deposit
1,319,255
_Total current_
_assets_
1,320,347
**Liabilities:**
Legacies & funds awaiting distribution
7
(599,734)
Other creditors
8
(268,183)
Creditors: Amount falling due within
one year
(867,917)
_Net current_
_assets_
452,430
_Total net_
_assets_
7,319,215
**The funds of the charity:**
Total endowment funds
5.3
6,910,117
Restricted income funds
5.4
242,879
Unrestricted funds
5.5
166,219
_Total charity_
_funds_
7,319,215|2023
£
£
6,914,717
6,914,717
493
1,054,596
1,055,089
(403,015)
(183,547)
(586,562)
468,527
7,383,244
6,960,207
256,825
166,212
7,383,244|2023
£
£
6,914,717
6,914,717
493
1,054,596
1,055,089
(403,015)
(183,547)
(586,562)
468,527
7,383,244
6,960,207
256,825
166,212
7,383,244|
|---|---|---|
||(403,015)
(183,547)||
||||
|||468,527|
||||
|||7,383,244|
|||6,960,207
256,825
166,212|
|||7,383,244|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The notes on pages 12 to 27 form part of these financial statements.
Approved on behalf of the Board of Directors on 20 June 2025.
PAUL WHITEHOUSE
Chair
ALISTAIR JACKSON Trustee
Company no. 188362
_**Page 10 of 31**_
**Friends Trusts Limited**
## **FRIENDS TRUSTS LIMITED**
## **Statement of Cash Flows for year ending 31 December 2024**
## **CASH FLOW STATEMENT**
|**Operating activities**
Net movement in funds
Dividends
Interest
Investment management fees
(Gains)/losses on investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Investing activities**
Investment management fees
Purchase of investments
Proceeds from sale of investments
Interest received
Dividends received
Financing activities
Increase/(decrease) in cash in year
Cash at beginning of year
Cash at end of year|**2024**
**£**
(64,029)
(151,554)
-
33,405
515,088
(599)
281,355
613,666
(33,405)
(2,183,676)
1,716,520
-
151,554
(349,007)
-
264,659
1,054,596
1,319,255|**2023**
**£**
394,215
(143,370)
-
31,533
(376,585)
17,797
18,560|
|---|---|---|
|||(57,850)
(31,533)
(627,929)
576,265
-
143,370|
|||60,173
-
2,323
1,052,273|
|||1,054,596|
The notes on pages 12 to 27 form part of these financial statements.
_**Page 11 of 31**_
**Friends Trusts Limited**
## **NOTES TO THE ACCOUNTS**
## **1. Principal accounting policies**
## 1.1 Basis of accounting
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The accounts do not include the transactions and net assets of entities for which the Company acts as custodian trustee.
The directors consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.
## 1.2 Funds
_Unrestricted funds_ : to be utilised at the discretion of the Directors for the benefit of, or in connection with, the Religious Society of Friends (Quakers).
_Restricted funds_ : earmarked by the donor or testator for specific purposes.
_Endowment funds_ : comprise monies that must be held as capital, either indefinitely or pending the occurrence of a future event.
## 1.3 Income recognition
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
Investment income is earned through holdings of listed investments and includes dividends and interest. Income from listed investments is recognised according to the relevant distribution dates. Interest is recognised on a receivable basis.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Legacies over which the charity has no discretion as to their distribution and which have been received but are awaiting completion and distribution to the ultimate beneficiary are held in a separate account. As such these legacies are only held temporarily on trust and the Directors consider that the appropriate treatment of their receipt and distribution is through a legacies account rather than through the Statement of Financial Activities.
_**Page 12 of 31**_
**Friends Trusts Limited**
Donated services are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS102), volunteer time is not recognised so refer to the trustees' annual report for more information about their contribution.
On receipt, donated services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## 1.4 Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds which comprise investment management fees relating to the charity’s portfolio of listed investments
- Expenditure on charitable activities which comprise the costs of distributions of trust income under the terms of the various trusts where the Company acts as managing trustee
All expenditure on support costs such as governance, including audit fees, is met by Britain Yearly Meeting (see note 4).
## 1.5 Investments
Listed investments are recognised initially at fair value which is normally the transaction price. Subsequently, they are measured at fair value (quoted market value on a recognised stock exchange) at the balance sheet date with changes recognised in ‘net gains / (losses) on investments’ in the Statement of Financial Activities. Also included in the Statement of Financial Activities are realised investment gains or losses which represent the difference between the sale proceeds and opening market value of investments disposed of in the year.
All investments and landed properties, of which the Company is custodian trustee only, and income therefrom, are excluded from these accounts
## 1.6 Taxation
Since the Company’s income falls within the various exemptions available to registered charities there is no liability for income tax, capital gains tax, corporation tax or inheritance tax. Any attributable VAT is accounted for within resources expended.
## 1.7 Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## 1.8 Cash at Bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with short maturity of three months or less from date of acquisition or opening of the deposit or similar account.
## 1.9 Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transactions costs, and are measured subsequently at amortised cost using the effective interest method.
_**Page 13 of 31**_
**Friends Trusts Limited**
## **2. Income: Analysis and Previous Year Comparatives**
|Donations
Donated Services
Legacies
Investments
Deposit accounts and bank
interest
Other
**Total**|**Unrestricted Funds**
**Restricted Funds** **Endowment Funds**
**2024**
**2023**
**2024**
**2023**
**2024**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
167
200
-
-
66,808
37,727
-
-
(5,167)
(16,337)
-
-
5,007
1,319
143,424 134,266
3,123
7,785
-
-
-
-
-
-|
|---|---|
||**66,815**
**22,909**
**143,424** **134,266**
**3,123**
**7,785**|
## **3. Charitable Expenditure: Analysis and Previous Year Comparatives**
|Charitable Distributions
In accordance with terms of trust
At the discretion of the board
Institutions
Individuals
Support costs
Audit fees
Other fees paid to auditors
**Total**|**Unrestricted Funds**
**2024**
**2023**
**£**
**£**
-
-
-
-
56,808
28,991
10,000
7,800
-
936|**Restricted Funds**
**2024**
**2023**
**£**
**£**
135,004
151,575
22,366
16,640
-
-
-
-
-
-|**Restricted Funds**
**2024**
**2023**
**£**
**£**
135,004
151,575
22,366
16,640
-
-
-
-
-
-|**Endowment Funds**
**2024**
**2023**
**£**
**£**
-
(7,150)
-
-
-
-
-
-
-
-|**Endowment Funds**
**2024**
**2023**
**£**
**£**
-
(7,150)
-
-
-
-
-
-
-
-|
|---|---|---|---|---|---|
||**66,808**
**37,727**|**157,370**|**168,215**|**0**|**(7,150)**|
Expenditure in 2024 and 2023 was incurred in respect of distributing donations, legacies and income from endowments, primarily to various Quaker organisations, in accordance with the wishes of donors and legators. In 2024 68 distributions (2023: 63) for individual assistance were given in the United Kingdom, Germany and Poland, all less than £1,000 each.
The distribution of the income from some managed trusts is at the discretion of the Directors and, in these cases, the policy is to pass the funds to Britain Yearly Meeting in support of its central work. This is partly in recognition of the staffing and services it provides to the Company without charge. Where legacies are left to the Company without a binding obligation, the Directors will endeavour to observe any wishes expressed in the will. If no wishes are expressed, the policy is to pass the funds to Britain Yearly Meeting in support of its central work.
Negative costs on Endowment funds in 2023 relate to written back grants that were awarded in previous years.
_**Page 14 of 31**_
**Friends Trusts Limited**
## **4. Administration and governance costs**
The costs of administrative support are provided by Britain Yearly Meeting in recognition of the role of the Company as the denominational trust corporation for the Religious Society of Friends. The sum of £68,808 (2023: £37,727) has been included in the Statement of Financial Activities as donated services and support costs and audit fees.
## **5. Funds**
## **5.1 Fund purposes**
(a) Endowment Funds
_**Fund Purpose for which the income is to be applied**_ **Permanent:** Anonymous MC98 General Fund of Britain Yearly Meeting. Blackwell At the discretion of the Board taking account of the settlor’s wishes. Cox Britain Yearly Meeting for provision and maintenance of Meeting Houses. Simmons For Britain Yearly Meeting taking account of the settlor’s wishes. Stewart 80% Sussex & Surrey Regional Quaker Meeting 20% Tunbridge Wells Quaker Meeting. Todd For Meeting House repairs and purchases in the Kingston-upon-Thames area. Wirral & North Wales For Wirral & Chester and North Wales Area Quaker Meetings. **Expendable:** Braithwaite At the Board’s discretion in consultation with settlor's representative. Colenso General Purposes but income is for the relief of poverty. Doncaster 40% Worcester & Shropshire Area Quaker Meeting, 20% South Wales Area Quaker Meeting, 20% Southern Marches Area Quaker Meeting (212/286) & Mid-Wales Area Quaker Meeting (74/286), 20% Britain Yearly Meeting (Peace and Service). General Gifts and Legacies At the discretion of the Board. Northern Friends Peace Board For Northern Friends’ Peace Board. Ward At the discretion of the Board taking account of the settlor’s wishes. Witting Individual relief: 40% England, 40% Germany, 20% Poland. Young Friends General Meeting For Young Friends General Meeting.
The capital of endowment funds is both expendable and non-expendable. With the exception of the General Gifts and Legacies Fund where income is credited to the unrestricted fund, income is treated as restricted funds and distributed in accordance with the above purposes .
The Charity Commission has given its consent to release the permanent endowment of the Witting Trust. The
_**Page 15 of 31**_
**Friends Trusts Limited**
Trustees will treat the capital as expendable and determine the amount of capital they wish to transfer from the endowment to the restricted fund each year (see 5.3 and 5.4 below).
The terms of the Blackwell legacy include the requirement that 10% of the income be added to the capital and invested.
## (b) Restricted Funds
These funds consist of the undistributed restricted income from the endowment funds (see 5.1 (a)).
It is the policy of the Board to distribute the balances in the income funds annually.
## (c) Unrestricted Funds
The unrestricted funds consist of the undistributed income from the General Gifts and Legacies endowment fund, and other gifts and legacies received during the year by the Company for distribution at the Directors’ discretion.
It is the policy of the Board to distribute this annually.
_**Page 16 of 31**_
**Friends Trusts Limited**
## **5.2 Analysis of net assets between funds**
|Funds balances at 31 December
are represented by:
Investments
Net Current Assets
Comparative information as
follows:
Funds balances at 31 December
are represented by:
Investments
Net Current Assets
|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2024**
**£**
**£**
**£**
**£**
-
-
6,866,785
6,866,785
166,219
242,879
43,332
452,430
166,219
242,879
6,910,117
7,319,215
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2023**
**£**
**£**
**£**
**£**
-
-
6,914,717
6,914,717
166,212
256,825
45,490
468,527
166,212
256,825
6,960,207
7,383,244|**Total**
**2023**
**£**
6,914,717
468,527|
|---|---|---|
|||7,383,244|
|||**Total**
**2022**
**£**
6,486,468
502,562|
|||6,989,030|
_**Page 17 of 31**_
**Friends Trusts Limited**
## **5.3 Endowment funds**
## **Permanent:**
|**Permanent:**||
|---|---|
|Anonymous MC98
Blackwell
Cox
Simmons
Stewart
Todd
Wirrall & North Wales
**Total**|**Balance as**
**at 1 Jan**
**2024**
**Income**
**Resources**
**Resources**
**Expended**
**Unrealised**
**& Realised**
**Gains**
**(Losses)**
**Transfers** **Balance as**
**at 31 Dec**
**2024**
**£**
**£**
**£**
**£**
**£**
**£**
518,618
-
(2,497)
(4,555)
-
511,566
3,096,814
2,549
(14,925)
12,727
-
3,097,165
844,086
-
(4,063)
(6,507)
-
833,516
215,361
-
(1,037)
(1,952)
-
212,372
101,573
-
(489)
(976)
-
100,108
222,087
-
(1,069)
(1,952)
-
219,066
32,830
-
(158)
(325)
-
32,347|
||**5,031,369**
**2,549**
**(24,238)**
**(3,540)**
**-**
**5,006,141**|
## **Expendable:**
|**Expendable:**||
|---|---|
|Braithwaite
Colenso
Doncaster
General Gifts and Legacies
Northern Friends Peace Board
Ward
Young Friends General Meeting
**Total**
Total endowments|**Balance as**
**at 1 Jan**
**2024**
**Income**
**Resources**
**Resources**
**Expended**
**Unrealised**
**& Realised**
**Gains**
**(Losses)**
**Transfers** **Balance as**
**at 31 Dec**
**2024**
**£**
**£**
**£**
**£**
**£**
**£**
115,433
-
(547)
(976)
-
113,910
363,192
-
(1,678)
(2,928)
-
358,586
391,697
-
(1,886)
(3,253)
-
386,558
892,858
574
(4,227)
(7,484)
-
881,721
31,988
-
(154)
(325)
-
31,508
100,764
-
(485)
(976)
-
99,305
32,906
-
(190)
(325)
-
32,391|
||**1,928,838**
**574**
**(9,167)**
**(16,267)**
**-**
**1,903,976**|
|||
||**6,960,207**
**3,123**
**(33,405)**
**(19,808)**
**-**
**6,910,117**|
_**Page 18 of 31**_
**Friends Trusts Limited**
Comparative information is as follows:
## **Permanent:**
|**Permanent:**||
|---|---|
|Anonymous MC98
Blackwell
Cox
Simmons
Stewart
Todd
Wirrall & North Wales
**Total**
**Expendable:**
Braithwaite
Colenso
Doncaster
General Gifts and Legacies
Northern Friends Peace Board
Rowntree
Ward
Young Friends General Meeting
**Total**
**Total endowments**|**Balance as**
**at 1 Jan**
**2023**
**Income**
**Resources**
**Resources**
**Expended**
**Unrealised**
**& Realised**
**Gains**
**(Losses)**
**Transfers** **Balance as**
**at 31 Dec**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
484,764
(2,351)
36,205
518,618
2,911,978
6,845
(14,057)
192,046
3,096,812
788,989
(3,827)
58,924
844,086
201,304
(976)
15,033
215,361
94,944
(460)
7,090
101,574
207,590
(1,007)
15,504
222,087
30,687
(149)
2,293
32,831|
||**4,720,256**
**6,845**
**(22,827)**
**327,095**
**0**
**5,031,369**|
||**Balance as**
**at 1 Jan**
**2023**
**Income**
**Resources**
**Resources**
**Expended**
**Unrealised**
**& Realised**
**Gains**
**(Losses)**
**Transfers** **Balance as**
**at 31 Dec**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
106,255
0
1,243
7,935
0
115,433
335,045
3,812
24,335
363,192
366,128
(1,776)
27,345
391,697
834,697
838
(3,982)
61,305
892,858
29,899
(145)
2,234
31,988
0
94,188
(457)
7,033
100,764
30,757
(149)
2,298
32,906|
||**1,796,969**
**838**
**(1,454)**
**132,485**
**0**
**1,928,838**|
|||
||**6,517,225**
**7,683**
**(24,281)**
**459,580**
**0**
**6,960,207**|
_**Page 19 of 31**_
**Friends Trusts Limited**
## **5.4 Restricted Funds**
## **Permanent:**
|Anonymous MC98
Blackwell
CIF
Cox
Simmons
Stewart
Todd
Wirrall & North Wales
**Total**
**Expendable:**|**Balance as**
**at 1 Jan**
**2024**
**Income**
**Resources**
**Resources**
**Expended**
**Transfers** **Balance as**
**at 31 Dec**
**2024**
**£**
**£**
**£**
**£**
**£**
13,018
13,009
(13,220)
-
12,807
59,151
65,035
(49,904)
-
74,281
-
4,310
-
-
4,310
21,607
21,151
(21,515)
-
21,243
5,391
5,407
(5,489)
-
5,309
2,543
2,554
(2,589)
-
2,509
5,562
5,571
(5,661)
-
5,472
1,616
827
(837)
-
1,606|
|---|---|
||**108,889**
**117,862**
**(99,215)**
**-**
**127,536**|
|||
|Braithwaite
Colenso
Doncaster
Northern Friends Peace Board
Rowntree
Ward
Witting Narrowly Restricted
Young Friends General Meeting
**Total**
**Total Restricted funds**|**Balance as**
**at 1 Jan**
**2024**
**Income**
**Resources**
**Resources**
**Expended**
**Transfers** **Balance as**
**at 31 Dec**
**2024**
**£**
**£**
**£**
**£**
**£**
2,891
2,849
1,089
-
6,829
17,911
8,733
-
-
26,643
8,755
9,810
(9,985)
-
8,580
802
806
(816)
-
792
6,893
-
-
-
6,893
1,729
2,535
(2,568)
-
1,696
108,132
-
(45,036)
-
63,096
824
829
(839)
-
814|
|---|---|
||**147,936**
**25,561**
**(58,154)**
**-**
**115,343**|
|||
||**256,825**
**143,424**
**(157,370)**
**-**
**242,879**|
_**Page 20 of 31**_
**Friends Trusts Limited**
## Comparative information is as follows:
## **Permanent:**
|Anonymous MC98
Blackwell
Cox
Simmons
Stewart
Todd
Wirrall & North Wales
**Total**|**Balance as**
**at 1 Jan**
**2023**
**Income**
**Resources**
**Resources**
**Expended**
**Transfers**
**Balance as**
**at 31 Dec**
**2023**
**£**
**£**
**£**
**£**
**£**
12,334
13,220
(12,536)
13,018
34,608
57,391
(32,851)
59,148
20,495
21,515
(20,403)
21,607
5,108
5,489
(5,205)
5,392
2,410
2,589
(2,455)
2,544
5,269
5,661
(5,368)
5,562
779
837
1,616|
|---|---|
||**81,003**
**106,702**
**(78,818)**
**-**
**108,887**|
## **Expendable:**
|Braithwaite
Colenso
Doncaster
Northern Friends Peace Board
Rowntree
Ward
Witting Narrowly Restricted
Young Friends General Meeting
**Total**
**Total Restricted funds**|**Balance as**
**at 1 Jan**
**2023**
**Income**
**Resources**
**Resources**
**Expended**
**Transfers**
**Balance as**
**at 31 Dec**
**2023**
**£**
**£**
**£**
**£**
**£**
2,493
2,897
(2,500)
2,890
9,026
8,885
17,911
9,293
9,985
(10,523)
8,755
760
816
(774)
802
6,892
6,892
2,391
2,568
(3,230)
1,729
178,135
1,573
(71,573)
108,135
781
839
(796)
824|
|---|---|
||**209,771**
**27,563**
**(89,396)**
**-**
**147,938**|
|||
||**290,774**
**134,265**
**(168,214)**
**-**
**256,825**|
_**Page 21 of 31**_
**Friends Trusts Limited**
## **5.5 Unrestricted Funds**
|General Gifts and Legacies
**Total**
Comparative information is as follows:
General Gifts and Legacies
**Total**|**Balance as**
**at 1 Jan**
**2024**
**Income**
**Resources**
**Resources**
**Expended**
**Transfer**
**s**
**Balance as**
**at 31 Dec**
**2024**
**£**
**£**
**£**
**£**
**£**
166,212
66,815
(66,808)
-
166,219|
|---|---|
||**166,212**
**66,815**
**(66,808)**
**-**
**166,219**|
||
**Balance as**
**at 1 Jan**
**2023**
**Income**
**Resources**
**Resources**
**Expended**
**Transfer**
**s**
**Balance as**
**at 31 Dec**
**2023**
**£**
**£**
**£**
**£**
**£**
181,031
22,909
(37,728)
-
166,212|
||**181,031**
**22,909**
**(37,728)**
**-**
**166,212**|
_**Page 22 of 31**_
**Friends Trusts Limited**
## **6. Investments**
6.1 The types of investments held, and their market value, at 31 December 2024 were:
|Cash
Common investment funds
OEICs and unit trusts
UK equities
UK fixed interest
Overseas equities
Overseas fixed interest
Overseas unit trusts
Total investments
6.2
Investment movements
Market value at 1 January
Acquisition at cost
Disposal at carrying market value
Unrealised gains (losses) in year
Market value at 31 December
Historic cost|**Total**
**2024**
**£**
179,168
-
1,026,065
2,824,222
1,479,845
-
375,009
982,476
6,866,785
**Total**
**2024**
**£**
6,914,717
2,183,676
(1,716,520)
(515,088)
6,866,785
6,044,601|**Total**
**2023**
**£**
157,061
**-**
1,498,695
2,533,233
826,894
**-**
266,167
1,632,667|
|---|---|---|
|||6,914,717|
|||**Total**
**2023**
**£**
6,486,468
627,928
(659,259)
459,580|
|||6,914,717|
|||5,163,512|
_**Page 23 of 31**_
**Friends Trusts Limited**
## **7. Legacies and funds awaiting distribution**
|Balance at 1 January
Funds and legacies received
Funds and legacies distributed
Balance at 31 December
**8.**
**Other creditors**
Grants Payable
Other
Balance at 31 December
**9.**
**Debtors**
Accrued Legacy Income
Other
Balance at 31 December|**Total**
**2024**
**£**
403,015
994,590
1,397,605
(797,871)
599,734
**Total**
**2024**
**£**
268,183
-
268,183
**Total**
**2024**
**£**
-
1,092
1,092|**Total**
**2023**
**£**
379,951
241,376|
|---|---|---|
|||621,327
(218,312)|
|||403,015|
|||**Total**
**2023**
**£**
179,711
3,836|
|||183,547|
|||**Total**
**2023**
**£**
-
493|
|||493|
_**Page 24 of 31**_
**Friends Trusts Limited**
## **10. Custodian Trustee and Holding Trustee (Nominee)**
The Company acts as custodian trustee or holding trustee (nominee) for land for the Religious Society of Friends (Quakers) in Britain (the “Society") and various bodies connected with the Society.
It acts in these capacities primarily for the Area Meetings of the Society, including constituent Local Meetings and other connected trusts. Area Meetings are the primary meetings for church affairs in the Society. The object of each Area Meeting is the furtherance of the general religious and charitable purposes of the Religious Society of Friends (Quakers) in Britain, locally and beyond.
The Company holds quoted and unquoted investments and/or land and buildings for the following Area Meetings:
Banbury & Evesham Norfolk & Waveney Bournemouth Coastal North London Brighouse West Yorkshire North Somerset Bristol North Wales (Cymar) Cambridgeshire North West London Central England Northamptonshire Central Yorkshire Northumbria Chilterns Nottinghamshire & Derbyshire Cornwall Oxford & Swindon Craven & Keighley Pendle Hill Cumberland Pickering & Hull Devon Sheffield & Balby Dorset & South Wiltshire South Wales (Cymar) East Cheshire Southern East Anglia East Kent Southern Marches (Cymar) Gloucestershire Staffordshire Hampshire & Islands Surrey & Hampshire Border Hardshaw & Mann Sussex East Hertford & Hitchin Sussex West Ipswich & Diss Swarthmoor (South West Cumbria) Kendal & Sedbergh Teesdale & Cleveland Lancashire Central & North Thaxted Leeds Wensletdale & Swaledale Leicester West Somerset Lincolnshire West Kent London West West Weald Luton & Leighton West Wiltshire & East Somerset Manchester & Warrington Wirral & Chester Mid-Essex Worcestershire & Shropshire Mid-Somerset Mid-Thames Mid-Wales (Cymar)
_**Page 25 of 31**_
**Friends Trusts Limited**
The Company holds land and buildings for the following organisations connected with the Society:
Ackworth School 1950 Trust
Breckenbrough School: After Care Committee Camfield's (Francis) Trust
Central England Quaker Old People's Fund Trust
Society of Friends - Charney Manor
Cole, Susanna (and Others), Charities
Friends Housing Bursary Trust
Glenthorne Quaker Centre
To hold funds of gifts, legacies, donations, etc. for the benefit of Ackworth School.
To give help and advice to former pupils of Breckenbrough School
Supporting individual Quakers in need witnessing to Christian and Quaker testimonies
Charitable purposes for the benefit of the aged, particularly for those who are members of Central England Area Quaker Meeting of the Religious Society of Friends (Quakers)
Furthering the religious and other charitable purposes of the Society of Friends
To support and help friends in need who are members or attenders of Central England Area Quaker Meeting of the Religious Society of Friends
For the benefit of elderly poor persons in Great Britain who are need of financial assistance to provide them with suitable housing accommodation
To provide a place where Quaker spiritual, charitable and educational concerns can be advanced.
Gorman George Memorial Fund The advancement of (religious) education and the advancement of religion according to the principles and beliefs of the Religious Society of Friends
Greenwood Educational Trust To advance the education of persons under the age of 25 and in need of financial assistance who are connected with the Society of Friends in Essex or Suffolk
Horniman (John) Trust: Bedford Institute Association
Howard, William Charity
Kingston Friends Trusts: Poor’s Estate
Income to be used by Quaker Social Action
Grants to members of Quaker meetings who are undertaking further education or training to equip them for work.
Relief of poverty, sickness, old age or by assisting in education; promotion of the religious and spiritual work of the Society of Friends in connection with Kingston & Wandsworth Area Quaker Meeting
London Quaker Service Trust To further the work of the Society of Friends by the advancement of religion and the provision of facilities for educational recreational and leisure time occupations for persons who by reason of their social and economic circumstances have need of such facilities with the object of improving their conditions of life and developing their mental physical and spiritual capacities
Quaker Social Action Through innovative schemes designed to promote social justice and the personal development and the physical and spiritual welfare of individuals and groups, to witness Quaker testimonies, to the equality of all humankind, to truth, personal integrity and peace, and to promote co-operation and harmony between all people.
_**Page 26 of 31**_
**Friends Trusts Limited**
## **FRIENDS TRUSTS LIMITED**
## **Notes to the accounts (continued)**
Tickells (Hugh) Charity
Wensleydale & Swaledale Quaker Trust
Woodbrooke Quaker Study Centre
For the general benefit of such poor people as the trustees in their discretion think fit
1. The relief of Quakers, Attenders and other people who are in need, hardship or distress and are resident in the area of benefit; 2. The maintenance and upkeep of the Quaker meeting houses and burial grounds within the area of benefit; 3. To further the religious and other charitable deeds and works of the Wensleydale and Swaledale Area Quaker Meeting in Britain and overseas.
Provision of learning to Quakers and others to advance the Quaker faith and enhance understanding of social and spiritual matters.
## **11. Directors remuneration and expenses**
No director receives any remuneration or is reimbursed any expenses by the Company.
Trustees are entitled to reimbursement of travelling, accommodation and out-of-pocket expenses incurred in the performance of their duties. There were no expenses reimbursed to the directors in 2024.
## **12. Related party transactions**
By the nature of their role, the directors of the company are deemed to be related parties. As stated in Note 11 above, there were no expenses reimbursed to Trustees, nor donations received from Trustees in the year to 31 December 2024.
## **Relationships between BYM and related Parties**
The company works in close partnership with Britain Yearly Meeting which provides secretarial and administrative support for the work of Friend Trust Limited. The value of the services are treated as donations and were £66,808 in 2024 (2023: £37,727)
_**Page 27 of 31**_
**Friends Trusts Limited**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRIENDS TRUSTS LIMITED (A Company Limited by Guarantee and Not Having a Share Capital) Registered Charity Number 237698 Company Number 188362**
## **Opinion**
We have audited the financial statements of Friends Trusts Limited (the ‘charitable company’) for the year ended 31 December 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 Friends Trusts Limited 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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider
_**Page 28 of 31**_
**Friends Trusts Limited**
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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**Friends Trusts Limited**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities _._ This description forms part of our auditor’s report.
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**Friends Trusts Limited**
## **Use of our report**
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Judith Miller (Senior statutory auditor) 26 September 2025 for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG
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