Charity number- 245430 THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
THE STOCK EXCHANGE BENEVOLENT FUND CONTENTS Page Rgference and administrative details of the Charity. its Trustoes and advisers Trustees. report Independent audltorfs report on the flnanclal statements 9-12 statement of financial activities 13 Balance Sheet 14 Statement of Cash flov 15 Notes to the financial statements 16-33
THE STOCK EXCHANGE BENEVOLENT FUND REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees Patrick J A Burgess, Chairman Julian Palfreyman, Deputy Chairman Christopher Holdsworth-Hunt, Trustee Richard Killingbeck, Trustee Michael R l Lilwall, Trustee Jamie G Matheson, Trustee Gerald C Mordaunt, Trustee (Resigned 31 December 20191 Geoffrey Mark Powell, Trustee Andrew H Scott, Trustee David M Scot( Trustee Charity registered number 245430 Principal office 10 Patemosler Squa St Paul's London EC4M 7DX Committee for the year 2020 Patrick J A Burgess, Chairman Shaun M Alison Nicholas W Bagshawe Chatlie Bridge Robert R B Bruce (Resigned 31 December 20201 Joanna Bunkham Colin G Climie Spencer Crooks Sarah Danes Andrew M Impey David M Leslie Timothy R Macdonald David J Macnamara Philip C Nathan, MBE Richard Noel Julian S Pawreyman David M F Scott Desmond A Shine Daniel J Southgate David H Thorpe (Resigned 31 December 20201 Mark A Vaughan Secretary Robert G Chambers Asslstant secretary Jennifer M Golan Independent audltor MHA Maclnlyre Hudson Chartered Accountants Victoria Court 17-21 Ashford Road Maidstone Kent ME14 5DA Page 1
THE STOCK EXCHANGE BENEVOLENT FUND REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Bankers Bank of Scotland PO Box 1984 Andover SP10 9GZ Sollcltors Ashfords LLP 1 New Fetter Lane London EC2R 7AF Investment Managers OLIM Limited 1 Benjamin Street Farringdon London EC1M SQL Page 2
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their annual report together with the audited financial ststemenls of the Charity for the 1 January 2020 to 31 December 2020. Oblectlves and actlvltles a. Pollcles and oblectlves The principal objects of the Benevolent Fund during the year are the relief of cases of need or distress among former Members of the Stock Exchange and their dependents. Along with any charity which supports anyone who was a member of or was directly employed by or worked for a member firm of any United Kingdom Stock Exchange or their dependents. 11 shall be permissible lo provide for the relief of any such former members or their dependents by making payments direct lo insts'lutions or schools that undertake to provide services for such persons. The Trustees confirm that they have referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Benevolent Fund's aims and objectives and in planning future activities and selling the grant making policy for the year. The Benevolent Fund carries out these objectives by.. Providing grants lo individuals in need, lo prevent or relieve poverty in the fomi of. - Grants on a one or year basis Donations to those requiring temporary help Disregard payments Emergency grants for one-off payments e.g. motor repairs and replacement of everyday equipment Providing debt and money management advice lo those supported by the Fund. Giving extra help to those that are also sick or with disabilities, such as medical equipment and carers. b. Legacles and donatlons The Fund received £1,00012019'. £Nill of donations and no legacies12019'. £Nill during the year. c. Grant4naklng pollcles The Fund has established its grant making policy to achieve its objects for the public benefit to help former individual members of The Stock Exchange and their dependents in the prevention or relief of povety. No actual limits are sel, bul applicants are treated on an individual basis depending on their needs and requirements. More details on the grant making policy of the Fund can be found in ils Rules, which are available from the Fund's office. Page 3
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Strateglc report Achlevements and performance a. Revlew of actlvltles The financial statements are found on pages 12 to 32. 1 would add to this that in the current climate, more than ever, it is important that the Fund makes every effort lo keep administrative and office costs to a minimum, thereby releasing money to aid the increasing costs faced by our beneficiaries. As a result 15 grants were increased in 2020. b. Materlal Investments pollcy The investment policy is designed to fu11 the Trustees, policy of prudence with regard to the Maintenan of their reserves and their ability to meet the needs of current and future beneficiaries. As such, the objective is to secure by responsible investment the maximum returns for both capital and income. Flnanclal revlew a. Key performance Indlcators The result for the year is shown on page 12 and the position al the end of the year is shown on page 13. The market value of the investments and investments classified as cash of the Fund on 31 December 2020 was as follows.. General Fund KD Cochrane Fund Cecil Russell Nye Trust Fund Louis Sanders Holiday Fund 24,066,886 546,182 11,435 9,640 Of these investments, 110/0 are in fixed interest stocks, 870/0 in equities and 20/0 in cash deposits. Including income earned, investments decreased by 90/0 over the last 12 months which is not unreasonable given the current market. Investment income decreased by 370k over the last 12 months, which was in line with expectstions given the current market. The objects of the separate endowment funds are listed in Note 2110 these accounts. Page 4
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 b. ReseNes pollcy The Trustees have reviewed the reserves of the Charity. This review encompassed the nature of the major income and expenditure streams, the need to match income and expenditure and the nature of the Charity's reserves. The Charity's principle source of funds is the income from the investment portfolio. The Trustees also considered the nature of the Charity's assets, which include the investment portfolio, investment property and the assets used directly for charitable purposes. Resulting from this review, the Trustees have come lo the conclusion that lo enable the Charity to continue lo meet ils objectives, lo operate efficiently, to carry out ils future plans and lo provide a buffer for unexpected costs, an unrestricted general reserve, of approximately £10,000,000 should currently be maintained. Any charitable grants made and any costs relating lo the management and adminislralion of the Charity, should, as far as possible, be funded by the income from the investments held by the Charity and by any donations or legacies that may from lime lo time arise. No specific measures to encourage donations are envisaged at this moment in lime. The nature of investments held will then be reviewed as necessary in order that their income stream will cover future expenditure. Investment capital is spent lo meet the needs of beneficiaries if investment income is insufficient. The Charity also has endowment funds that are represented by investments. The purposes of these funds are detsiled in Note 19 of the fi'nancial statements. Structure, governance and management a. Constltutlon The Benevolent Fund was founded in 1801 and is an unincorporated Charity (Registered Charity No. 2454301. The address of ils principal office is.. 10 Paternoster Square, St Paul's, London, EC4M 7DX. A copy of the Rules can be seen at the office of the Fund. These are subject lo the revised governing document adopted on 1 Dember 2015 and a minor rule change in 2018 to allow 10 rather than 7 trustees. b. Methods of appolntment or electlon of Trustees The names of the Trustees who have held offi. during the year are listed on page 1. Candidates for election lo the General Committee musl be nominated by two Fund members, entitled to vole, and the nominations lodged with the Secretary at least four days before the day of election. Each Fund member desiring to vole for such number of candidates as shall secure a Committee of not more than Ihity including the Trustees in office. At the first meeting after their election, the General Committee shall elect from amongst themselves, a Chairman and one or more Deputy Chairman, who shall respectively hold office until the next general election. The Trustees shall hold office until they retire at the age of 75 years, resign, die or are removed by resolution of the other nine Iruslees. If the Trustees agree, the term of a Trustee who had reached the age of 75 years may be extended for 12 months al a lime bul such extension may be made no more than five limes. All Trustees give of their lime freely and no Iruslee remuneration was paid in the year. Details of any Trustee expenses and related party transactions are disclosed in Note 12 and Note 27 to the accounts. Page 5
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Structure, governance and management Icontlnuedl c. Organlsatlonal structure and declslon-maklng pollcles The Trustees are responsible for the overall governance and management of the Fund, including the appointment of professional advisors and staff. holding periodic meetings as required. The awarding of grants lo beneficiaries is vested by the Trustees lo the General Committee, the members of which are listed on page 1. General Committee Meetings are held quarterly. The day to day management of the Fund offices is the responsibility of the Secretsry and the Assistant Secretary who report directly lo the General Committee and Trustees. d. Pollcles adopted for the Inductlon and tralnlng of Trustees All our Trustees have served in very senior positions in City companies," they are not therefore given further formal training by the Fund. Any new information regarding Trusteeship published by the Charity Commission is circulated lo the Trustees. e. Rlsk management The Trustees regularly review the major risks which the charity may be exposed lo and in particular those relating to the operation and finances of the Fund. The Trustees are satisfied that maintaining the unrestricted general reserves al the level staled in the reserves policy below will provide sufficient resources for the foreseeable future. Plans for future perlods The Trustees detail the future plans for the Charity including ils aims and objectives and any activities planned to achieve them. Future developments The Fund will continue to operate in accordance with the guidelines laid down in the Rules. These can be seen at the office of the Fund. The Trustees of the Stock Exchange Benevolent Fund agreed lo make an annual contribution of £100,000 to the Stock Exchange Clerks Fund, reviewed every three years. This is towards the aim of the fund which is solely for the relief of povety for its beneficiaries. Page 6
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Notes from the Chalmian I would like to thank OLIM Limited for their seNice and their management of our investment portfolio in difficult market conditions. From January 2021 the management of the investment portfolio will be dealt with by Rathbones I would also like to thank Duncan Cochrane-Dyet and his team al MHA Maclnlyre Hudson for auditing the accounts. I would also like to thank Jaswant Golan for his invaluable support on the security and IT side. I would like to thank Robert Chambers and Jennifer Golan for their continued work in administering the Fund. MHA Maclntyre Hudson offer themselves for re-election. A copy of the Rules can be seen at the Fund's office. Remuneration to staff is agreed by the Chairman and Deputy Chairman in consultation with the Trustees, and after agreement is presented lo the Committee. ststement of Trustees. responslbllltles The Trustees 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). The law applicable to charities in England & Wales requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the Fund and of its incoming resources and application of resources. including ils income and expenditure, for that period. In preparing these fi'nancial statements, the Trustees are required lo.. select suitable accounting policies and then apply them consistently, observe the methods and principles of the Charities SORP IFRS 1021., make judgements and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards {FRS 1021 have been followed, subject lo any material departures disclosed and explained in the financial statements,. prepare the financial statements on the going COnM basis unless it is inappropriate to presume that the Fund will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Fund's transactions and disclose with reasonable accuracy at any time the financial position of the Fund and enable them lo 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 Fund and hence for taking reasonable steps for the prevention and detection of fraud and other Irregularities. Disclosure of information to auditor Each of the persons who are Trustees al the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the Fund's auditor is unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that informats'on. Page 7
THE STOCK EXCHANGE BENEVOLENT FUND TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Audltor The auditor, MHA Maclntyre Hudson, has indicated his willingness to continue in offi. The designated Trustees will propose a motion reappointing the auditor al a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. PJ A Burgess Chairnn Dale". Page 8
THE STOCK EXCHANGE BENEVOLENT FUND INDEPENOENT AUDITOR'S REPORT TO THE MEMBERS OF THE STOCK EXCHANGE BENEVOLENT FUND Opinion We have audited the financial statements of The Stock Exchange Benevolent Fund (the 'charity'l for the year ended 31 DeTrmber 2020 which comprise the Slalement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally ACpted Accounting practi). The financial statements have been prepared In accordance with Accounting and Reporting by Charities preparing their accounts in accordan with the Financial Reporting Stsndards applicable In the UK and Republic of Ireland IFRS 1021 in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the exlanl regulations bul has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements.. give a true and fair view of the slate of the charity's affairs as al 31 Dember 2020 and of its incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice," and have been ppared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemalional Standards on Auditing IUKI IISAS IUKII and applicable law. OLJr 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom. including the Financial Reporting Council'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 concem basis of aceounling in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uneertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability lo continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page g
THE STOCK EXCHANGE BENEVOLENT FUND INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE STOCK EXCHANGE BENEVOLENT FUND ICONTINUEDI Other information The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other infomiation and we do not express any form of assurance onclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstsled. If we Identify such material inconsistencies or apparent material misstslements, we are required to detemiine whether there is a material misstatement in the financial statements or a material misslalement 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 facL We have nothing to report in this regard. Mattors on which wg are requirgd to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion. the information given in the Trustees, report is inconsistent in any material respect wlh the financial slalements., 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 information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going conrn and using the going concern basis of accoLJnting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but lo do so. Page10
THE STOCK EXCHANGE BENEVOLENT FUND INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE STOCK EXCHANGE BENEVOLENT FUND ICONTINUEDI Auditor's responsibilities for the audit of the financial ststements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo 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 assuran, bul is not a guarantee that an audit Conducted in accordance with ISAS IUKI will always delect a material misstslemenl when Il exists. Misstatements can arise from fraud or error and are considered material If, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are Instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements In respect of irregularitie5, Including fraud. The extent lo which our procedures are capable of delecling IrrUlaritieS, including fraud is detailed below.. Reviewing minutes of meetings of those charged with governance", Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations., Performing audit work over the risk of management override of controls, including lesling of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias., and Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misstalemenl in the financial ststemenls 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 instanTrs of non-compliance. The risk Is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentslion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.o .uklauditorsres onsibilities. This description forms part of our Audilorfs report. Page11
THE STOCK EXCHANGE BENEVOLENT FUND INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE STOCK EXCHANGE BENEVOLENT FUND ICONTINUEDI Use of our report This report is made solely to the charitys Iruslees, as a body, in accordan with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the harity's Iruslees those matters we are required to stsle to them in an Audilorfs report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Signed.. Dated.. 18 August 2021 Duncan Cochrane•Dyet Bsc BFP FCA MHA Maclntyre Hudson Chartered Accountants Maidstone United Kingdom Page12
THE STOCK EXCHANGE BENEVOLENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Endowment Unrestricted funds funds 2020 2020 Total funds 2020 Total funds 2019 Note Income and endowments from: Donations and legacies Investments 30,891 587.846 30,891 596.944 9.098 947,557 Total income and endowments Expendlture on: Raising funds Charitable activities 9,098 618.737 627.835 947,557 2,565 2.450 137,370 920.217 139,935 922.667 202,098 1,004,2T2 Total expenditure 5,015 1,057,587 1,062,602 1,206,370 Net incomel{expenditurel before net {lossesllgains on investments Net Ilossesllgains on investments 4.083 (438.8501 (434.7671 11,905,226) 11,905,226) (258,813) 3,269,895 Net incomel{expenditurel Transfers between funds Net movement in funds before other recognised gains Other recognised gains: Gains on revaluation of fixed assets 4,083 5,056 12,344,076) 12,339,993) {5,0561 3,011,082 21 9.139 12,349.1321 12,339.9931 3,011,082 100,000 Ngt movement in funds Reconciliation of funds: Totsl funds brought forward Net movement in funds 9.139 12,349.1321 12,339.9931 3,111.082 558,118 9,139 26,416,018 26,974,136 12,349,132) 12,339,993) 23, 863,054 3,111,082 Total funds carried forward 567.257 24,066.886 24.634.143 26,974,136 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 16 10 33 form part of these financial statements. Page13
THE STOCK EXCHANGE BENEVOLENT FUND BALANCE SHEET AS AT 310ECEMBER 2020 2020 2019 Note Fixed assets Tangible assets Investments Investment property 13 570 23,262.845 485.000 25, 126, 783 485,000 14 23,748,415 25,611,783 Current assets Debtors 16 96.173 711.627 356,261 70,882 1,230, 669 481, 509 Investments Cash al bank and in hand 17 1.164.061 1, 783,060 Creditors.. amounts falling due within one year 18 156.3331 (59, 707) Net current assets 1,107,728 1, 723,353 Total assets less current liabilities 24,856.143 27,335, 136 Provisions for liabilities 1222,000) (361,000) Net assets excluding pension asset 24,634,143 26,974, 136 Total net assets 24,634.143 26,974, 736 Charlty funds Endowment funds Reslricled funds Unrestricted funds 21 21 21 567.257 558,718 24,066,886 26,416,018 Total funds 24,634,143 26,974, 136 The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Patrick J A Burg955 Chalrtnan Date.. Jullan Palfreyman Deputy Chainnan The nolas on pag¢s 16 to 33 form part of these finanGial ststements. Page 14
THE STOCK EXCHANGE BENEVOLENT FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 As $tated 2019 2020 Cash flows from operating activities Net cash used in operating activities 1602,2901 (305, 712) Cash flows from investing activities Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments 17121 1.523.122 1, 971,561 (1.564,4101 (1, 043, 107) Net cash (used Inllprovlded by Investlng actlvltles 142,0001 928,454 Ngt cash providod by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents al the beginning of the year 1644,2901 1,712,178 622.742 1, 089,436 Cash and cash oquivalents atthe gnd of thg ygar 1.067.888 1,712,178 The notes on pages 16 10 33 form part of these financial statements Page15
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 General information The Charity is registered in England and Wales as an unincorporated charity- The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 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 IFRS 1021 leffeclive 1 January 20151, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The financial ststemenls have been prepared to give a 'true and fairf view and have departed from the Charities IAccounts and Reports) Regulations 2008 only lo the extent required to provide a 'true and fai¢ view. This departure has involved following the Charities SORP IFRS 1021 published on 18 July 2014 rather than the Accounting and Reporting by Charities. Statement of Recommended Practs. effective from 1 April 2005 which has since been withdrawn. The Stock Exchange Benevolent Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise ststed in the relevant accounting policy. 2.2 Going concern The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company's operations as the Stock Exchange Benevolent Fund receives it's income in the form of dividends from stock market investments and the amount of income received is likely to decline. In response lo the COVID-19 pandemic, the Trustees have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures lo assist in miligaling the impact Based on these assessments and having regard to the resources available to the entity, the Trustees have concluded that there is no material uncertainly and that they can continue to adopt the going concern basis in preparing the annual report and accounts. Page16
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies {continuedl 2.3 Incomg All income Is recognised once the Charity has entillemenl lo the Income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of Income from legacies Is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left lo them Ilhrough knowledge of the existence of a valid wll and the death of the benefaclorl and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that il will be received and the fair value of the amount receivable, which will generally be the expected cash amount lo be distributed to the Charity, can be reliably measured. Income lax recoverable in relation to investment income is recognised at the lime the investment income Is re1Vable. 2.4 Expendituro Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs inVoed in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charilable trading. Expenditure on charitable acb"vilies is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions allaching are fulfilled. Grants offered subject to conditions which have not been mel al the year end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Interest receivable Interest on funds held on deposit is inclLJded when receivable and the amoLJnt can be measured reliably by the Charity, this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Page17
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies {continuedl 2.6 Tangible fixgd assgts and depreciation Tangible fixed assets costing £NIL or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils Intended working condition should be included in the measurement of cost. Depreciation Is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, Depreciation is provided on the following basis.. Office equipment Held over 5 years 2.7 Invgstment Property Where investment property has been purchased, they are initially recognised at cost. After recognition, investment propety is revalued to the estimated market value. 2.8 Invgstments Fixed asset investments are a form of financial instrument and are inilialty recognised al their transaction cost and subsequently measured at fair value al the Balance sheet date, unless the value cannot be measured reliably in which case Il Is measured at cost less impairment. Investment gains and 105ses, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in the Statement of financial aclivilies. 2.9 Debtors Trade and other debtors are recognised at the selllemenl amount after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 2.10 Cash at bank and in hand Cash at bank and in hand Includes cash and short-term highly liquid Investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.11 Liabilities Liabilities are recognised when there is an obligation al the Balance sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amoLJnt that the Charity anticipates it will pay to settle the debt or the amount il has received as advanced payments for the goods or services it must provide. Page18
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies {continuedl 2.12 Financial instrumonts The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at transaction value and subsequendy measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.13 Pensions The Charity conlribules to personal pension plans of the employees and the pension charge represents the amounts payable by the Charity to the plans in respect of the year. The Charity also has a commitment to former employees to pay unfunded pensions. Provisions for these liabilities are set out in note 18. 2.14 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Investment income, gains and losses are allocated to the appropriate fund. Incomg from donations and legacigs Unrestricted funds 2020 Total funds 2020 Total funds 2019 t)onations Legacies 1,000 29,891 1,000 29.891 Total 2020 30,891 30,891 Page19
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Investment income Endovmient Unrgstricted funds funds 2020 2020 Total funds 2020 Investment income - local investment properties Investment income - local listed investments Investment income - fOIgn listed investments Investment income other local unlisted Investment income - local cash 7,716 457,160 61,611 60,831 528 7.716 466,194 61,611 60.831 592 9,034 64 Total 2020 9,098 587,846 596,944 Endowment Unrestricted funds funds 2019 2079 Total funds 2019 Investment income - local investment properties Investment income - local listed investments Investment income - ft)reign listed investments Investment income other local unlisted Investment income - local cash 7,716 785,365 T5,65T 64,587 2,670 7,716 796,618 75.657 64,587 2,979 11,253 309 Total 2019 11.562 935, 995 947.557 Page 20
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Investment managomont costs Endovmient Unrgstricted funds funds 2020 2020 Total funds 2020 Investment management fees 2,565 137,370 139.935 Endowmenl Unrestricted funds funds 2019 2079 Total funds 2019 Investment management fees 2, 7T1 199,327 202,098 Page21
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Support costs Total funds 2020 Activities 2020 Postage, printing and stationary Expenses visiting beneficiaries Bank charges Discount charge on pension provision Private health insurance - cuThenl employees Private health insurance - former employees Governance costs (Note 71 Wages and salaries Social security costs Pension costs- current employees Office equipment depreciation 1,614 951 1.614 951 312 312 {97,1121 10,175 18,776 32,758 120,304 11,844 11,729 142 197.1121 10.175 18,776 32,758 120.304 11.844 11,729 142 Total 2020 111,493 111,493 Total funds 2019 Activities 2019 Postage. printing and stationary Expenses visiting beneficiaries Bank charyes Discount charge on pension provision Private health insurance - current employees Private health insurance - former employees Governance costs (Note 71 Wages and salaries Social security costs Pension costs- current employees Office equipment depreciation 1,181 3, 903 353 (48,618) 9,381 31,620 35,112 120,420 12,349 11,722 450 1.181 3,903 353 (46,618) 9.381 31,620 35,112 120,420 12,349 71,722 450 Total 2019 179,873 179,873 Page 22
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Govornance costs Unrgstricted funds 2020 Total funds 2020 Office insuran Sundry expenses Committee meetings Legal and professional charges Audit and accountancy fees Luncheon expenses 1,271 436 1.271 436 4,225 6,490 19,721 615 4,225 6.490 19.721 615 Total 2020 32,758 32.758 Unrestricted funds 2019 Total funds 2019 Office insurance 945 945 Sundry expenses Committee meetings Legal and professional charges Audit and accountancy fees Trustee meetings Luncheon expenses 1, 956 13,234 3, 731 12,583 1, 057 1, 606 1.956 73,234 3,731 12,583 1.057 1,606 Total 2019 35,112 35,112 Anatysis of grants Grants to Individuals 2020 Total funds 2020 Regular grants Capped and emergency grants Welfare organisations Clerks fund 547,354 106,140 2,000 100,000 547.354 106,140 2,000 100,000 Total 2020 755,494 755,494 Page 23
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Anatysis of grants {continuedl Grants to Individuals 2039 Total funds 2019 Regular grants Capped and emergency grants Welfare organisations Clerks fund 594, 150 134,196 3, 190 loo,000 594, 750 134, 196 3,190 100.000 Total 2019 831,536 831,536 Anatysis of expenditure on charitable activities Summary by fund type Endowment Unrestricted funds funds 2020 2020 Total funds 2020 Direct costs 2,450 712,077 106,140 2,000 100,000 714.527 106,140 2.000 100,000 Capped and emergency grants Grants made lo welfare organisalions Grants made lo Clerks Funds 2,450 920,217 922,667 Unrestricted funds 2019 Total funds 2019 Direct costs Capped and emergency grants Grants made lo welfare organisalions Grants made lo Clerks Funds 766,886 134, 196 3, 190 fOO,000 766,886 134, 196 3,190 loo,000 1,004,272 1,004,272 Page 24
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Auditor's romuneration 2020 2019 Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 16,840 9,928 Fees payable lo the Charity's auditor in respect of.. Taxation compliance SerViS Other fi'nancial services 360 2,521 2,655 11. Stsff costs 2020 2019 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 120,304 11,844 11.729 120,420 12.349 11,722 143,877 144,491 The average number of persons employed by the Charity during the year was as follows.. 2020 No. 2019 No. Average number of employees The number of employees whose employee benefits lexcluding employer pension costs) exceeded £60,000 was: 2020 No. 2019 No. In the band £60,001- £70,000 The totsl amount of employee benefits received by key management personnel is £132,148 12019.. £132,768). The charity considers its key management personnel comprise the Secretary and Assistant Secretsry. 12. Trustees. remuneratlon and expenses During the year, no Trustees received any remuneration or other benefits {2019- £NIL). During the year ended 31 December 2020, no Trustee expenses have been incurred (2019- £NIL). Page 25
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 13. Tangiblg fixed assgts Office equipment Cost or valuation At 1 January 2020 Additions 5,262 712 At 31 December 2020 5,974 Dgprgciation At 1 January 2020 Charge for the year 5.262 142 At 31 December 2020 5,404 Net book value At 31 December 2020 570 At 31 December2019 14. Investment propgrty Long term leasehold Investment property Valuation At 1 January 2020 485,000 At 31 December 2020 485,000 The 2020 valuation has been estimated by the Trustees to bring in line with local propety prices. Page 26
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 15. Fixed assgt investments Listed Investments Cost or valuation At 1 January 2020 Additions Disp05als Revaluations 25,126,783 1,564,410 11.523.122) 11.905.226) At 31 December 2020 23,262,845 Net book value At 31 December 2020 23,262.845 At 31 December2019 25, 726, 783 16. Debtors 2020 2019 Due within one year Other debtors Accrued income Prepayments 86 38.395 57,692 10,329 60,553 96,173 70,882 17. Current asset investments 2020 2019 Investments - cash deposits 711,627 1,230, 669 Page 27
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. Creditors: Amounts falling due within one year 2020 2019 Trade creditors Other laxalion and social security other creditors Accruals and deferred income 2,055 5, 722 1,446 50,484 5,390 50,943 56,333 59, 707 19. Provisions Unfunded Retirement Pension At 1 January 2020 Amounts used Discounted adjustments 361.000 {41,8881 {97,1121 222.000 This provision comprises the unfunded pension liability for three ex employees. 20. Prloryear adjustments The Statement of cash flows comparative figures have been restated to show the correct movements in cash in 2019. Notes 23 and 24 have also been restated as a result of this. There is no impact on the Statement of financial activities or the Statement of financial position. Page 28
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21. Statomont of funds ststomont of funds- currgnt ygar Balancg at 31 December 2020 Balancg at 1 January 2020 Transfers inlout Gainsl {Los$esl Incomo Expgnditurg Unrestrlcted funds General Funds all funds 26.416,018 618,737 11,057.5871 15,0561 11,905,226) 24,066,886 Endowment funds Louis Sanders Holiday Fund Cecil Russell Nye Trust Fund K D Cochrane Fund 9.445 155 (41) 81 9.640 11,251 (49) 49 11,435 537,422 8,759 {4,9251 4,926 546,182 558.118 9,098 (5.0151 5.056 567.257 Total of funds 26.974.136 627,835 11,062.6021 11,905,226) 24,634.143 The Louis Sanders Holiday Fund contributes towards the cost of lemF)or8ry visits lo the seaside or elsewhere for distressed persons qualified lo receive assistance from The Stock Exchange Benevolent Fund. The Cecil Russell Nye Trust Fund was created in memory of the18te Cecil Russell Nye, the income to be applied for charitable purposes. The K D Cochrane Fund assists aged Members and former Members of The Stock Exchange and their wives. Page 29
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21. Statomont of funds Icontinugdl ststomont of funds - prior yoar Balan at 31 December 2019 Balance al 1 January 2019 Transfers in/oul Gainsl (Losses) Income Expenditure Unrestrlcted funds General Funds all funds 23,403,224 935,995 (1,203,599) (89,497) 3,369,895 26,416,018 Endowment funds Louis Sanders Holiday Fund Cecil Russell Nye Trust Fund K D Cochmne Fund 8, 121 156 (46J 1,214 9,445 8, 760 235 (56) 2,312 11,251 442,949 11,171 (2,669) 85,971 531,422 459,830 11,562 {2,7711 89,497 558,118 Total of funds 23.863,054 947,55T (1,206,3TO) 3,369,895 26,974, 136 Page 30
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 22. Summary offunds Summary offunds- curront year Balancg at 31 December 2020 Balancg at 1 January 2020 Transfers inlout Gainsl {Los$esl Incomo Expgnditurg General funds Endowment funds 26.416,018 618,737 11,057.5871 15,0561 11,905,226) 24,066,886 558,118 9,098 15,015 5,056 567,257 26.974.136 627,835 11,062.6021 11.905,2261 24,634.143 Summary offunds- prior year Balan at 31 December 2019 Balance al 7 January 2019 Transfers in/oul Gainsl (Losses) Income Expenditure General funds Endowment funds 23,403,224 935, 995 {1,203,599) (89,497) 3,369,895 26,476,018 459,830 11,562 (2, 771) 89,497 558,118 23.863,054 947.557 (f.206.310) 3.369.895 26,974, 736 23. Anatysis of net assets between funds Anatysis of net assets between funds - current period Endowment Unrestricted funds funds 2020 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Provisions for liabilities and charges 570 570 567,257 22,695,588 23,262.845 485,000 485,000 1,164,061 1,164,061 {56,3331 156.3331 1222,0001 {222.0001 Total 567,257 24,066,886 24,634,143 Page 31
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 23. Anatysis of n9t assots betwoen funds {continuedl Anatysis of n9t assots betwoen funds - prior pgriod Endowment UnrestriGted funds funds 2019 2019 Total funds 2019 Fixed asset investments Investment property Current assets 558,118 24,568,665 25, 126,783 485,000 485,000 1,783,060 1, 783,060 159,7071 (59, 707) 1361,0001 (361.000) Creditors due within one year Provisions for liabilities and charges Total 558,118 26,416,018 26, 974, 136 Re¢on¢iliation of net movement in funds to net cash flow from operating activities As stated 2019 2020 Net incomelexpenditure for the period las per Stslement of Financial Acts'vitiesl {2.339,9931 3,071,082 Adjustments for: Depreciation charges (Gainslllosses on investments Decreasellincreasel in debtors Increaselldecreasel in creditors Decrease in provisions 142 450 1.905.226 (3,269,891) 116,6811 10,919 13,3741 38,728 141,8881 (97.000) Net cash used in operating activities 1496,5681 (305, 712) Page 32
THE STOCK EXCHANGE BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 25. Anatysis of cash and cash equivalgnts As restated 2019 2020 Cash in hand 1,067,888 1,712,178 Total cash and eash equivalents 1,067,888 1,172,178 26. Anatysis of changes in net debt At1 January 2020 Cash flows At31 December 2020 Cash at bank and in hand Liquid investments 481,509 1.230.669 {125,2481 1519,0421 356,261 711.627 1,712,178 {644,2901 1,067,888 27. Rglated party transactions During the year, payments were made to Jaswanl Golan, related by virtue of being the husband of Jennifer Golan (Assistant Secrelaryl, amounting lo £2,450 12019.. £1,600). Al the year end, there was an outstanding balance due of £1,50012019.' £Nill. Page 33