2023-04-05-accounts

THE PILLING TRUST FUND ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 Charity Commission Reference Number 241812

THE PILLING TRUST FUND TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2023 LEGAL AND ADMINISTRATIVE DETAILS Principal OITice: Suite gb Beehive Lions Drive Shadsworth Business Park Blackburn BB12QS Charity Number: 241812 Trustees: Mr J M Sutcliffe (Chairman) Mrs A M Elder Dr S G Lindley The Very Reverend P Howell-Jones MrA J Palmer Professor l Tracey Mr M Elliott Bankers: Handelsbanken 1 sl Floor, Wallander House, Capricorn Bus Parf(, Blakewater Road, Blackburn, B81 5QR Investment Manager: Inveslec Wealth & Investment The Plaza, 100 Hall Street, Liverpool, L3 9AB Solicitors: DWF LLP, 1 Scott Place, 2 Hardman Street Manchester, M3 3AA Custodian: Investec Wealth & Investment Auditors: MHA Moore and Smalley Chartered Accountants 9 Winckley Square, Preston, PR13HP Secretary: Mr W J Campbell, Suite 9b, Beehive, Lions Drive, Shadsworth Business Park, Blackburn, BB12QS Page I

THE PILLING TRUST FUND TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2023 The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and Gomply with the charity's governing document, the Charities Act 2011 and 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 effective October 2019. STRUCTURE, GOVERNANCE AND MANAGEMENT The Trust The trust, commonly known as the John Pilling Trust, was set up in 1957 by John and Margaret Pilling, principally for the purpose of assisting Anglican churches to maintain good music in their service5. The trust is a registered charity and the trust deed is dated 10 May 1957. John Pilling died in 1996 and bequeathed the bulk of his estate to the trust. It is this bequest which accounts for virtually the whole trust fund. As trustees, we have regard to what we believe would be John Pilling's wishes when exercising our discretion. We do not carry out any fundraising. The Trustees The Trustees are listed on Page 1. All seNed throughout the year. We re￿1ve no remuneration, but we do receive some expenses., see Note 3. We usually meet a year to deal with grant applications and to receive a report from our fund managers. The trust deed prescribes that there must be at least trustees but not more than seven. New trustees are appointed by existing trustees who periodically assess what skills and experien￿ are needed to maintain an appropriate balance. New trustees receive an induction pack with a copy of the trust deed, recent accounts and minutes. They are also given a copy of the Charity Commission's guidance 'The Essential Trustee - What you need to know, (CC3). Administration Routine administration is in the hands of the Secretary. See Page 1 and also 'Applying for a Grant, below. Risk Managemènt We assess the major risks to which the charity is exposed, and we have suitable controls to mitigate them. The principal risk faced by the charity lies in the performance of investments. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. OBJECTIVES- GRANT MAKING- PUBLIC BENEFIT Objectives The objectives of the trust are set out in the trust deed. li) to advance the religious beliets of the Church of England together with the maintenance of the musical side of church services, Church, includes Churches, Chapels, Collegiate Churches and Cathedrals ofthe Anglican Communion, and lil) the advancement of education. Page 2

THE PILLING TRUST FUND TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2023 Grant Making To promote these objectives, we usually make grants at our discretion to Ghurches in need of funds for their church organs or their choirs. We also make grants to bodies training young organists. The grants agreed during the year are listed in note 3. They amounted to £160,846 {2022.' £155,150). Outstanding offers at the yearend were £84,92012022'. £69,322). Our grants are usually paid only when the applicant is committed to their proposal. We can then be satisfied that the money will be spent on promoting the objectives of the trust. There are vastly more potential applicants for a grant than we could ac￿de to. So, to redu￿ the number of unsuccessful applications we decided not, for the time being, to accept applications from churches in the Province of Canterbury. Applying for a Grant Anyone wanling more information or wishing to make an application should gel in touch with the Secretary, Will Campbell. His address is on Page 1, phone number is 01254 686600, email.. wcam bell beeverstrulhers.co.uk Fundraising The Charity does not do any fundraising activities. Public Benefit There are many thousands of churches in the Church of England as well as elsewhere in the Anglican Communion. Generally, these churches set out to welcome and serve their whole communities and not just committed Anglicans. Good music is often vital for their mission. Good church music means having good musicians and, especially, good organists. They need appropriate education and training. We confimi that we have referred to the guidance contained on the Charity Commission website in relation to charitable purposes and public benefrt when reviewing our aims and objectives and in setting our grant making policy for the year. FINANCE Results for the year :. Total income exceeded expenditure, prior to net gainsl(losses) on investments, by £85,901 12022.. £82,179). Total expenditure exceeded income, post net gainsl{lossesl on investments, by £588,79312022. total income exceeded expenditure, post net gainsl{lossesl on investments, by £334,765). Revaluation and disposal of investments resulted in a loss of £670,208 in the year compared to a gain of £252,586 in the previous year. This is analysed as a realised gain of £101,391 and an unrealised loss of £771,599. Page 3

THE PILLING TRUST FUND TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2023 INVESTMENTS AND RESERVES Policy We have wide investment powers. We maintain a substantial sum on deposit for ourshort-temi needs. We have appointed managers with delegated powers lo invest Ihe balance with nominees to hold the investments. See the list on page 1. The managers are to invest their portfolio in securities quoted on a recognised stock exchange. Their objective is to produce a total return in line with the MSCI WMA Balanced benchmark total return. The portfolio is to be invested mainly in equities including overseas equities. We do not have a policy on socially responsible investing, preferring to rely on the good judgement of the managers. Performance Despile the bankruplcy of the sixteenlh largest bank in Ihe Uniled Slates (Silicon Valley Bank) and the fact that the second largest bank in Switzerland (Credit Suissel had to be rescued by the biggest IUBS}, equity markets put in a remarkably steady performance during March, although there was a wide performance gap between the best and worst sectors. US Banks took the biggest hit, losing a quarter of their value in aggregate, as investors weighed up the prospects of lower profitability. Concerns also resurfaced about the quality of loans made to the commercial property sector amidst the downward shift in Offi￿ attendance following the pandemic. Even so, we remain of the opinion that a Rerun of the Great Financial Crisis is improbable, and were encouraged by the speed with which ￿ntral banks provided liquidity to the financial system when required. The MSCI World Index managed to grind out a small gain, consolidating the advances made earlier in the quarter. Indices were buoyed by a strong performance from US large cap Technology shares, which were supported by lower bond yields as markets priced in an expectation that central banks will be quicker to cut interest rates now that the first major cracks have started to appear in the financial sector. UK equity indices lost some ground on account of their exposure to more cyclical sectors. The US 10-year Treasury yield, having briefly risen above 40A at the beginning of the month in response to "hot" economic data, fell back close to 3.50/0. The 10-year UK Gilt enjoyed a similar performance. But with inflation remaining elevated, there were further interest rate increases from the Federal Reserve, the Bank of England and the European Central Bank amongst many other central banks, and they might not yet be finished with their policy tightening. The Bloomberg consensus for World GBP growth in 2023 remains at 2.40/0 although there is considerable Un￿rtaInty about how the year will evoke. While the UK and Europe appear to have been remarkably resilient thanks to the reduction in wholesale energy costs, the pace of China's recovery has been somewhat disappointing. The US economy has been remarkably resilient, but many indicators suggest a potential US recession later in the year. The tumoil in its regional banking industry only added to those fears, especially if banks become more cautious in their lending policies. We continue to await signs ofweakness in company earnings, which we believe will occur as the year progresses. Although inflation remains elevated, the fact that it is falling from its peak levels will give companies less cover to increase prices, while their costs continue to increase. Wages could be a particular source of pressure for margins, with unemployment remaining very low as many employees appear lo have left the workforce for good. The UK Chancellor delivered a Spring Budget characterised by his 'safe pair of hands" strategy, which continues the task of rebuilding confiden in the conseNative administration. In terms of cash, we received £317,238 in dividends and interest which was distributed lo the Trust Reserves Policy We consider that the demand for grants will continue indefinitely. Though we Gan and do spend capital as well as income, we consider the fund at £12,594,24912022.' £13,198,640) being the amount not earmarked for a specifiG purpose, to be satisfactory. We do not propose to raise more funds. Page 4

THE PILLING TRUST FUND TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2023 Trustees, Responsibilities Statement The Trustees are responsible for preparing the Trustee's Report and the financial statements in accordan￿ with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting practi￿). The law applicable to charities in England and Wales requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming reSoUr￿S and application of resources of the trust for that period. 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., make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose 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 provisions of the trust deed. They are also responsible for safeguarding the assets of the trusl and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditors We have appointed MHA Moore and Smalley Chartered Accountants as auditors of the trust. 3010112024 Approved by the trustees on and signed on their behalf by.. J M Sutcliffe Page 5

INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE PILLING TRUST FUND Opinion We have audited the financial statements of The Pilling Trust Fund (the 'charity') for the year ended 5 April 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow 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 including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view, of the state of the charity's affairs as at 5 April 2023, and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordan￿ with the United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordan￿ with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of 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 FRC'S Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence 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 infomiation The other infomiation comprises the information included in the trustees, annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othetwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6

INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE PILLING TRUST FUND Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities {Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial slalements is inconsistent in any material respect with the Trustees, Annual Report,. or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns., or we have not received all the infomiation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement set out on page 5, Ihe 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 conlinue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concerns basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realislic alternalive but to do so. Auditors responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Reviewing board minutes. Auditing the risk management override of controls, including through testing journal entries and other adjustments for appropriateness. Enquiries with management about any known or suspected incidents on non-compliance with regulations and fraud. Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to fixed asset investments and future performance in light of the impact of Covid-19. Because of the field in which the client operates, we identified that compliance with the Charities Act 2011 is the are most likely to have a material impact on the financial statements. Page 7

INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE PILLING TRUST FUND Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularrties, 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 cOn￿alMent, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at: https.Ilwww.frc.org.UkJOur-Wor￿Aud1uAudlt-and-aSsUranCeIStandardS-and-guIdance/SIandardS-and- guidance-for-audilorslAuditors-responsibilites-for-audiVDescripiion-of-auditors-responsibilities-for- audit.aspx. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charites (Accounts and Reports} Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's trustees those matters we are required lo 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fomied. MHA MHA Moore and Smalley Chartered Accountants and Statutory Auditor g Winckley Square Preston Lancashire PR1 3HP 0210212024 Date.. MHA Moore and Smalley is eligible to act as an auditor in tems of section 1212 of the Companies Act 2006 Page 8

THE PILLING TRUST FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022 Notes 2023 2022 Unrestrlcted Unrestrleted Income: Investment income 321,724 314,901 Total Income 321,724 314,901 Expenditure: Charitable activities: Support of church and organ music 184,565 178,801 other Investment management costs 51,258 54,641 Tolal expenditure 235,823 232,722 Net incominglloutgoing) resources before other recognised gains and losses on investments 85,901 82,179 Realised and unrealised gainslllossesl on investment assets 1674,6941 252,586 Net movements in funds 1588,7931 334,765 Fund balances brought fonmard - 6 April 2022 13,267,962 12,933,197 Fund balances carried forward- 5 April 2023 12,676,169 13,267,962 The notes on pages 72 to 18 form an integral part of these accounts Page 9

THE PILLING TRUST FUND BALANCE SHEET AS AT 5 APRIL 2023 2023 2022 Notes FIXED ASSETS Investments 11,884,816 12,533,894 CURRENT ASSETS Short term deposits 1,021,005 996,156 Cash at bank 69,446 26,484 1,090,451 1,022,640 CREDITORS: Amounts falling due within one year 6 1114,9981 1124,0721 NET CURRENT ASSETS 975,453 898,568 CREDITORS: Amounts falling due after more than one year 1181,1001 1164,5001 12,679,169 13,267,962 FUNDS General unrestricted income fund 12,679,169 13,267,962 Approved by the trustees on 3010112024 and signed on their behalf by.. J-114 Mr J M Sutcliffe The notes on pages 12 to 18 form an integral part of these accounts PogL, 10

THE PILLING TRUST FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 5 APRIL 2023 2023 2022 Cash flows from operating activities: Net incomellexpenditurel for the year Adjustments for.. 1588,7931 334,765 Increaselldecrease) in creditors 7.528 126,155) IGains)Ilosses on investments 670,208 1252,586) Net cash provided by I (used by) operating activities 88,943 56,024 Cash flows from investing activities: Disposal of investments 1,518,185 2,716,681 Purchase of investments {1,539,3171 (3,017,215) Net cash {used in ) I provided by investing activities 21,132 300,534 Change in cash, and cash equivalents in the reporting period 67.811 1244.510) Cash and cash equivalents at the beginning of the reporting period 1,022,640 1,267,151 Cash and Gash equivalents at the end of the reporting period 1,090,451 1,022,640 Th8 notes on pages 12 to 18 form an integral part of these accounts

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 1. Accounting policies Basis of accounting The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued in October 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011 and UK Generally Accepted Practi￿ as it applies from 1 January 2015. The financial statements have been prepared to give a'true and fair, view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to give a 'true and fair, view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charilies. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value and in compliance with applicable Accounting Standards. The financial statements are prepared in sterling, which is the functional currency of the entity. Income Investment income is recognised when its receipt is probable, and the amount can be measured reliably. Donations and legacies are accounted for when receipt is probable, and ils amount can be measured reliably. Other income is accounted for on an accruals basis. Income includes income tax recoverable. Expenditure and irrecoverable VAT Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the trust to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Grants payable are payments made to third parties in the furtheran￿ of the charitable objectives of the trust. The granls are accounted for once the offer has been accepted and all the obligalions under the offer complied with. Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Other costs other costs consist of investment management fees. PogL, 12

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 Other expenditure Support costs comprise non-direct costs of the charity and are allocaled belween cost of raising funds and expenditure on charitable activities. Included within support costs are all governance costs involving the public accountability of the trust and its Complian￿ with regulation and good practice. Taxation As a registered charity, the trust is generally exempt from Income Tax and Capital Gains Tax, but not from VAT. Fixed Asset Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the mid- market closing prI￿s. The stalement of financial activilies includes Ihe nei gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charTty is that of volatility in equity marf(els and investment markets due to wider economic condrtions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Realised Gains and Losses All gains and losses are taken to the Slalemenl of Financial Activities as they arise. Realised gains and losses on investments are calculated as the differen￿ between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the carrying value at the year end and opening market value lor purchase date if later). Financial instruments The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Funds structure Unrestricted funds Unrestricted funds represent investment income and other income generated for the objects of the trust without further specific purposes and are available as general funds. Designated funds Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Judgements and Key Sources of Estimation Uncertainty The preparation ofthe financial statements requires management to makejudgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the opinion of the Trustees there are no critical accounting judgements and key sources of estimation and uncertainty.

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 2. Investment income 2023 2022 Income from listed UK investments Income from listed non-UK investments Interest receivable 216,235 87,325 211,656 102,818 427 314,901 321,724 3. Charitable activities 2023 2022 Direct Charitable Expenditure Grants Awarded (see below) Support Cost Accountancy and Trust administration Governance costs - audit 160,846 155,150 20,419 19,931 184,565 178,081 The following grants were agreed during the year. They were all for purposes within the objects of the trust as sel out on page 2. The grants to churches were for the purpose of helping them lo maintain or achieve good standards of church music - whether by assisting them with choir costs or with the cost of a suitable instrument. Grants to other institutions were for assisting in the education of young organists. 2023 Spread over multiple years St Martin in the Field (spread over 5 years 2023-27) Halifax Minster (spread over 4 years 2023-26} Dean and Chapter, St Asaph Cathedral (spread over 3 years 2023-25) st Ann's Church, Manchester (spread over 5 years 2024-2028) 25,000 24,000 15,000 46,500 Single Payments Halifax Minster Christ Church, Penrith Holy Trinity Church St Anne's Episcopal Church, Kemnay St Nicholas Church, Blundellsands St Hilda's Church, Leeds st Martin's Church, Low Marple St Aidan's Church, Bamber Bridge st Botolph's, York St Stephen's, Keighley st Clement's, Bradford Dr Martin Clarke, YOST st Mary Magdalene, Yarm St Lawrence Church, York 6,000 6,000 846 1,000 5,000 2,500 2,500 4,000 1,500 2,500 3,000 5,000 7,500 3,000 160,846 PogL, 14

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 3. Charitable activities (continued) Support costs represent amounts paid to the administrators in respert of accountancy and administering the charity of £19,410 (2022.. £18,750}, audit fees of £3,300 (2022. £3,000), trustees expenses of £979 12022.. £9211 and bank charges of £3012022.. £20). None ofthe trustees received any remuneration from the trust. 4. Investment management costs 2023 2022 Investment manager's and custodian's fees 51,258 54,641 5. Fixèd Asset Investments 2023 2022 Market value at 6 April 2022 Additions at cost Disposals Realised gainlllossl Unrealised gainlllossl 12,533,894 11,980,774 1,539,316 3,017,215 11,518,186) 12,716,681) 101,391 186,138 1771,5991 66,448 Market value as at 5 April 2023 11,884,816 12,533,894 Historic cost as at 5 April 2023 11,043,302 10,961,234 The market value of investments is made up as follows.. 2023 2022 UK inveslments listed on a recognised slock exchange Non-UK investments listed on recognised stock exchanges 7,299,568 4,585,248 7,970,671 4,563,223 11,884,816 12,533,894 PogL, 15

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 S. Fixed Asset Investments (continued) The investments consist of equities, unit trusts and fixed interest investments. There are no investments which represent more than 5 % of the fund's investment portfolio. All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investrnent funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid pri￿. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the Trustees, Annual Report. The main risk to the Trust from financial instruments lies in the combination of un￿rtain investment markets and volatilily in yield. Due to 'quantitalive easing, and market senlimenl favouring lower risk investments, the yield on bonds has been abnormally low giving rise to a significant downside risk of a fall in capilal values when interest rales relurn to normal levels. Although rising interest rales resulting from a stronger economy and improved economic activity should be indicative of improving dividend yields and equity values, there is a concern that the abnormal availability of 'cheap money, to the banking sector has led to wider over-valuation of traded assets lan 'asset bubble'} that may depress equity values once economic conditions ease. The Trust is reliant on dividend yield in part to finance ils work and this leads to a greater exposure lo international companies, the values of which, together with their yield are exposed lo exchange rate risk when converting the holdings into sterling. The outlook for the sterling exchange rate is that it is anticipated to weaken as European, US and Asian economies strengthen. A weakening in the exchange rate will improve sterling returns from foreign currency denominated holdings. The default rate on fixed interest securities due to corporate failures is expected to improve with a strengthening economy. The high current demand for high quality corporate bond and government stock continues to depress the yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The Trust's investrnents are mainly traded in markets with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions. The Trusl manages these investmenl risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes thal are quoted on recognised stock exchanges. The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield, total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected. PogL, 16

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 6. Creditors: Amounts falling due within one year 2023 2022 Accruals Grants agreed and payable by instalments 21,098 93,900 31,172 92,900 114,998 124,072 7. Creditors: Amounts falling due after more than one year 2023 2022 Grants agreed and payable by inslalments 181,800 164,500 8. Contingent Liabilities Al the year-end grants offered by the trust totalling £84,920 12022.. £69,322) were under consideration by the offerees or the offerees had accepted them but the obligations under the offer had still to be complied with. Funds- Unrestricted income fund Funds 6 April 2022 Income Expenditure Transfers Gains & Funds 5 {lossesl April 2021 Designated funds Undesignated funds 69,322 13,198,640 321,724 (44,3461 59,944 84,920 (191,477) (59,9441 (674,694) 12,594,249 13,267,962 321,724 (235,823) 1674,6941 12,679,169 The designated funds represent the grants that have been offered but as yet not claimed at the year end. PogL, 17

THE PILLING TRUST FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2023 11. Analysis of assets and liabilities between funds Unrestricted funds Designated Undesignated funds funds Total Investments Current assets-. Short term deposits Cash at bank Creditors 11,884,816 11,884,816 84,920 936,085 69,446 {296,0981 1,021,005 69,446 (296,098} 84,920 12,594,249 12,679,169 12. Post balanc8 sh8et 8v8nts The market value ofthe investments managed by Investec Wealth & Management was £12,452.496 at 5 April 2023, comprising of investments of £11,884,816 and cash held on deposit of £567,680. AI 30 June 2023 the market value was £12,432,677, comprising of investments of £11,907,474 and cash held on deposit of £525,203. 13. Related Party Transactions Max Elliott declared an interest in application 1785, The Church of the Holy Cross, Gilling East and application 1799, St Lawrence Church, York. The Very Reverend P Howell-Jones declared an interest in application 1793, St Aidan, Bamber Bridge and St Leonard, Walton-le-Dale. None of the Trustees received any remuneration from the Trust. Fees invoiced by Beevers and Struthers Accountants for accountancy and trust administration of £18,750 (2022.. £18,750) were payable in the year. PogL, 18

The Pilling Trust Fund

Registered / head office address: First Line Of Address Second Line Of Address Third Line Of Address Fourth Line Of Address POST CODE

Charity number: 241812 Country of registration: England & Wales

MHA Moore and Smalley Richard House 9 Winckley Square Preston PR1 3HP

Dear Sirs,

Financial statements for the year ended 5 April 2023

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the financial statements for the year ended 5 April 2023. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.

General

1. We have fulfilled our responsibilities as trustees as set out in the terms of your engagement letter under the Charities Act 2011 for preparing financial statements in accordance with applicable law and Charities SORP (FRS102) for being satisfied that they give a true and fair view and for making accurate representations to you.

2. All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records.

3. All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission.

4. The financial statements are free of material misstatements, including omissions.

5. The effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total.

Internal control and fraud

1. We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud.