2021-12-31-accounts - The City Of London Solicitors' Company Charitable Fund

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Charity registration number: 249037

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

	CONTENTS

	`Page`
Fund information	`1`
Trustee’s report	`2`
Independent auditors’ report	`5`
Statement of financial activities	`9`
Balance sheet	`10`
Notes to the financial statements	`11`

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

FUND INFORMATION

Trustee The City of London Solicitors’ Company The officers of the Trustee, who are subject to election by the Court of the City of London Solicitors’ Company, are: Master: R. S. K. Bell Senior Warden: A. G. King Junior Warden: S. de Gay Chairman of the Charities Committee: A. J. C. Collett Clerk: L. C. James Charity number 249037 Address 4 College Hill, London, EC4R 2RB. Website www.citysolicitors.org/charity/the-clsc-charitable-fund Independent auditors F. W. Smith, Riches & Co. Chartered Accountants & Statutory Auditors, 15 Whitehall, London, SW1A 2DD. Bankers CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ. Investment advisors Investec Wealth and Investment Limited, 30 Gresham Street, London, EC2V 7QN.

Page 1

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

TRUSTEE’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustee presents its report together with the financial statements of the Fund for the year ended 31 December
2021. The report and financial statements have been prepared in accordance with the accounting policies set
out in note 1 to the financial statements and comply with the Fund’s trust deed, 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 the Republic of
Ireland (FRS 102).

Objectives and activities

The trust deed defines the Fund’s objects as being:

“To obtain, accumulate and apply funds for any charitable object.”

The Fund receives contributions from its members and income from its investments and supports other charities,
principally with a legal or a City of London connection, and awards prizes.

The officers of the Trustee confirm that they have referred to the guidance contained in the Charity Commission’s
general guidance on public benefit when reviewing the Fund’s aims and objectives, and in planning future
activities and setting the donation making policy for the year.

Achievements and performance

The Charitable Fund has continued with its programme of giving annual grants to a number of charities.  It has
given a range of one-off grants to charities and good causes during the year.  All the beneficiaries have either a
legal link or are linked to the City of London or its neighbouring areas. During 2021 the Fund made one-off
donations and continued to pay the instalments falling due in respect of a grant of £30,000 made in 2019 in
support of the Haringey Law Centre in relation to its Dealing with Debt project.

In all cases the grants have provided much needed support to assist the various organisations in meeting their
objectives.

Financial review

The Charitable Fund has continued to pursue its objects making grants and awarding prizes. During the year the
Fund made grants of £33,985 and awarded prizes of £1,500.

The policy of the Fund is to make grants to other charities, principally with a legal or a City of London connection.
An analysis of the grants made is given below (further details are given in note 7 to the financial statements):

`Health, welfare and advice` `Education and training` `Music and the arts` `Lord Mayor’s appeal`	2021 £ 28,435 2,500 750 2,300 33,985	`2020` `£` `22,571` `1,000` `-` `2,300`
		`25,871`

Each year the Lord Mayor holds an appeal in support of a range of charities. From 2017 to 2021 the charities
being supported are: Samaritans, Place2Be, OnSide Youth Zones and the Duke of Edinburgh’s Award. Further
details of the charities supported can be found at: www.thelordmayorsappeal.org.

Page 2

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

TRUSTEE’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management

The Fund is administered by the City of London Solicitors' Company and is constituted as a charity under a trust
deed dated 24 November 1965. The Trustee has the power to appoint other Trustees under the Trust deed.

The Charities Committee reviews applications for support and recommends, in accordance with the guidelines
laid down by the Trustee, to the General Purposes Committee of the Trustee Company which applications to
support. The General Purposes Committee then meets to consider which applications to support and the amount
of support to provide. The recommendation of the General Purposes Committee is then put before a meeting of
the Court of the Trustee Company for approval.

Plans for future periods

The Fund aims to continue to support other charities, principally with a legal or a City of London connection and
award prizes.

Connected charities

The City of London Solicitors' Company is also Trustee of The City Solicitors' Educational Trust.

Investment policy

The Trustee’s investment policy is to provide a sufficient total return, in order to fund the approximate level of
expenditure envisaged by the Trustee in accordance with the Fund’s objects. The Trustee believes that funds
should be invested to provide the maximum total return commensurate with the level of risk agreed between itself
and its advisors. Overall the portfolio should provide the opportunity for capital and income growth to meet the
objectives of the Fund and should provide some protection against inflation.

A regular review of the investments is undertaken by the Investment Committee of the Trustee Company to
compare the performance of various assets against benchmarks agreed between the Trustee and its advisors.

Risk management

The Trustee has assessed the major risks to which the Fund is exposed, in particular those related to the
operations and finances of the Fund, and is satisfied that systems are in place to mitigate the exposure to the
major risks.

Reserve policy

The Trustee has examined the requirement for free reserves, which are unrestricted funds, and considers it
appropriate to have a level of reserves which will enable the Fund to generate sufficient investment income for
the Fund to continue the range of charitable giving that it currently undertakes. The Trustee regularly reviews the
level of reserves of the Fund to ensure that they are adequate to fulfil the Fund's objectives.

The Trustee's policy is to distribute the Fund's annual incoming resources, with the exception of donations which
are given on the condition that they are used to increase the Fund's capital base.

The Fund reported a net increase in funds for the year of £113,407, including a gain on investments. As shown
on page 10, at 31 December 2021 the free unrestricted reserves were £959,083 and the restricted funds were
£303.

Page 3

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

TRUSTEE’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Public benefit

The Trustee has considered the Charity Commission’s general guidance on public benefit when reviewing the
Fund’s aims and objectives and in determining its donations policy. The Trustee considers that all of the aims
and objectives detailed in this report are there in order to benefit the public and that it has complied with the duty
in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity
Commission.

Statement of Trustee’s responsibilities

The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with
applicable law and regulations.

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each
financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). The Trustee must not approve the financial statements unless it is
satisfied that they give a true and fair view of the state of affairs of the Fund and of the incoming resources and
application of resources, including the income and expenditure, of the Fundfor that period.

In preparing these financial statements, the Trustee is required to:

a) select suitable accounting policies and apply them consistently;
b) observe the methods and principles in the Charities SORP;
c) make judgements and estimates that are reasonable and prudent;
d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Fund will continue in operation.

The Trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at
any time the financial position of the Fund and enable the Trustee to ensure that the financial statements comply
with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the Fund’s
trust deed.  The Trustee is 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.

The Trustee confirms that so far as it is aware, there is no relevant audit information of which the Fund’s auditors
are unaware. The Trustee has taken all the steps that it ought to have taken as Trustee in order to make itself
aware of any relevant audit information and to establish that the Fund’s auditors are aware of that information.

By order of the Trustee

R. S. K. Bell Master

L. C. James Clerk

31 March 2022

Page 4

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

INDEPENDENT AUDITORS’ REPORT TO TRUSTEE OF THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

Opinion

We have audited the financial statements of The City of London Solicitors’ Company Charitable Fund (the ‘Fund’)
for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet 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 Financial Reporting Standard 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 Fund’s affairs as at 31 December 2021 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 prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the auditors’ responsibilities for the audit
of the financial statements section of our report. We are independent of the Fund 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 Trustee’s 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 entity'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 Trustee with respect to going concern are described in the
relevant sections of this report.

Page 5

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

INDEPENDENT AUDITORS’ REPORT TO TRUSTEE OF THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

Other information

The other information comprises the information included in the Annual Report other than the financial statements
and our auditors’ report thereon. The Trustee is 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 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 give rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and
Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Trustee’s Report is inconsistent in any material respect with the financial statements; 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 the Trustee

As explained more fully in the Statement of Trustee’s Responsibilities set out on page 4 the Trustee is 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 Trustee determines 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 Trustee is responsible for assessing the Fund’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 Trustee either intends to cease operations, or has no realistic alternative but to do so.

Page 6

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

INDEPENDENT AUDITORS’ REPORT TO TRUSTEE OF THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with
the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ 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:

Discussions were held with, and enquiries made of, management and those charged with governance with a
view to identifying those laws and regulations that could be expected to have a material impact on the financial
statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared
with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards and the Charities Act.
It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and
non-compliance with laws and regulations) comprised of: inquiries of management and those charged with
governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning
any actual or potential litigation or claims; inspection of relevant legal correspondence; review of charities
committee minutes; testing the appropriateness of entries in the nominal ledger, including journal entries;
reviewing transactions around the end of the reporting period; and the performance of analytical procedures to
identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities,
including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s
controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud
might be inherently more difficult to detect than irregularities that result from error. As explained above, there is
an unavoidable risk that material misstatements may not be detected, even though the audit has been planned
and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditors’ report.

Page 7

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

INDEPENDENT AUDITORS’ REPORT TO TRUSTEE OF THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

Use of our report

This report is made solely to the Fund’s Trustee in accordance with Part 4 of the Charities (Accounts and Reports)
Regulations 2008. Our audit work has been undertaken so that we might state to the Fund’s Trustee those
matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Fund and the
Fund’s Trustee, for our audit work, for this report, or for the opinions we have formed.

F. W. Smith, Riches & Co.

Chartered Accountants & Statutory Auditors
London
31 March 2022

F. W. Smith, Riches & Co. is eligible for appointment as an auditor of the Charitable Fund by virtue of its eligibility
for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 8

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note Income and endowments `Donations and legacies` `3` `Investment income` `9` `Interest receivable and similar income` Total income Expenditure Costs of raising funds: `Investment management costs` `4` `Administrative fees` Expenditure on charitable activities: `Prizes awarded` `6` `Grants` `7` Total expenditure Net income for the year before investment losses or gains `Net gains on investments` `9` Net income and movement in funds Fund balance brought forward at 1 January 2021 Fund balance carried forward at 31 December 2021	2021 Total unrestricted & restricted funds £ 56,929 19,771 - 76,700 6,018 154 6,172 1,542 34,943 36,485 42,657 34,043 90,364 124,407 845,979 970,386	`2020` `Total` `unrestricted` `& restricted` `funds` `£` `46,567` `20,195` `6`
		`66,768`
		`4,767` `112`
		`4,879`
		`1,555` `26,816`
		`28,371`
		`33,250`
		`33,518` `74,063`
		`107,581`
		`738,398`
		`845,979`

Page 9

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

BALANCE SHEET AS AT 31 DECEMBER 2021

Note Fixed assets `Investments` `9` Current assets `Debtors` `10` `Cash at bank and in hand` Creditors: amounts falling due within one year `11` Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year `12` Net assets Funds: `Unrestricted funds` `14` `Restricted funds` `14` Total Funds	2021 £ 872,433 14,318 104,385 118,703 (20,750) 97,953 970,386 - 970,386 970,083 303 970,386	`2020` `£` `781,664` `14,748` `78,817`
		`93,565`
		`(19,250)`
		`74,315`
		`855,979`
		`(10,000)`
		`845,979`
		`845,214` `765`
		`845,979`

The financial statements on pages 9 to 19 were approved and authorised for issue by the Trustee on 31 March
2022 and were signed on its behalf by:

R. S. K. Bell Master

L. C. James Clerk

Page 10

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

1.1 Basis of preparation of financial statements and assessment of going concern

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 (FRS
102) (Second Edition)’ and the Financial Reporting Standard applicable in the United Kingdom and
Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice 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 provide a ‘true and
fair view’. This departure has involved following ‘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) (Second Edition)’
rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective
from 1 April 2005 which has since been withdrawn

The Fund constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the Fund’s ability to continue as
a going concern.

The preparation of financial statements requires the use of certain critical accounting estimates.  It
also requires management to exercise its judgement in the process of applying the Fund's accounting
policies.  The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 2.

1.2 Income recognition

All income is recognised once the Fund has entitlement to the income, it is probable that income will
be received and the amount of income receivable can be measured reliably. The following criteria
must also be met before income is recognised:

Donations and gifts

Donations and gifts are recognised when both the amount and settlement date are known.

Legacies

Legacies are recognised on a case by case basis following the grant of probate when the
administrator/executor for the estate has communicated in writing both the amount and settlement
date.

Investment income

Interest on funds held on deposit is included upon notification of the interest being paid or payable.
Dividends are recognised once the dividend has been declared and notification of the dividend due
has been received.

Page 11

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies (continued)

1.3 Donated services

Donated professional services are recognised as income when any conditions associated with the
donated item have been met, the receipt of economic benefit from the use by the Fund of the item is
probable and the economic benefit can be measured reliably.  On receipt, donated professional
services are recognised on the basis of the value of the gift to the Fund which is the amount the Fund
would have been willing to pay to obtain services of equivalent economic benefit on the open market;
a corresponding amount is then recognised in the period of receipt.

1.4 Resources expended

Expenditure is recognised in the period when there is a legal or constructive obligation committing the
Fund to that expenditure, it is probable that the settlement will be required and the amount of the
obligation can be measured reliably. All expenditure is accounted for on an accruals basis.

1.5 Charitable activities

Costs of charitable activities include grants made and an apportionment of support and governance
costs as shown in note 8.

1.6 Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs in proportion
to the amount expended on each class of charitable activities. Governance costs comprise all costs
involving the public accountability of the Fund and its compliance with regulation and good practice.
These costs include costs related to statutory audit and legal fees.

1.7 Costs of raising funds

The costs of generating funds consist of investment management costs.

1.8 Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.9 Heritage assets

The Fund holds part of a historic book collection which was received as a bequest. The collection is
being held and maintained for its contribution to knowledge and culture and is considered to be a
heritage asset.  The Trustee considers that the cost of obtaining a valuation of the collection would
outweigh the additional benefit derived by users of the financial statements in assessing the Trustee’s
stewardship of the Fund’s assets and therefore the collection is not capitalised within the Fund’s
financial statements.

Page 12

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies (continued)

1.10 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 closing
quoted market price. The statement of financial activities includes the net gains and losses arising on
revaluation and disposals throughout the year.

The Fund does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Fund is that of volatility in equity markets and investment
markets due to wider economic conditions, the attitude of investors to investment risk, and changes
in sentiment concerning equities and within particular sectors or sub sectors.

1.11 Funds

Unrestricted funds

Unrestricted funds are funds that the Trustee is free to use for any purpose in furtherance of the
charitable objects.

Restricted funds

Restricted funds are funds, which have legal restrictions on their use, where donors have specified
the funds can only be spent on specific activities.

1.12 Financial instruments

The Fund has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Debtors

Debtors are initially recognised at transaction price and thereafter stated at amortised cost using the
effective interest method, less impairment losses for bad and doubtful debts except where the effect
of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment
losses.

Creditors

Creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective
interest method unless the effect of discounting would be immaterial, in which case they are stated at
cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements
when there is a legally enforceable right to set off the recognised amounts and there is an intention to
settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 13

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1.13 Foreign currency translation

The Fund’s functional and presentation currency is the pound sterling.

1.14 Taxation

H. M. Revenue & Customs has granted the Fund charity exemption and thus it is exempt from taxation.

2. Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements management are required to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and
the amounts reported for revenues and expenses during the year.  However, the nature of estimation
means that actual outcomes could differ from these estimates.  Whilst management have made
judgements, estimates and assumptions in preparing the financial statements, they consider that these
have not had a significant effect on amounts recognised.

3. Donations, gifts and deeds of covenant

`Donations including gift aid` `Poor box` `Donated services` `Donations from the City of London Solicitors’ Company`	2021 £ 38,779 110 7,018 11,022 56,929	`2020` `£` `28,915` `285` `5,767` `11,600`
		`46,567`

Donated services include the audit fee and fees relating to investment management.

Donations including gift aid include £773 (2020: £5,011) given for restricted purposes.

4. Investment management fees

The City of London Solicitors’ Company bears the majority of the annual cost in respect of the management
of the Fund’s investment portfolio. The value of this service to the Fund was £6,018 (2020: £4,767) and is
recognised within incoming resources as a donation, and an equivalent charge within the cost of raising
funds.

5. Trustee’s expenses and remuneration

No Trustee remuneration was paid during the year (2020: £nil).  In addition, no officer of the Trustee
company was paid or reimbursed any expenses during the year (2020: £nil).

Page 14

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

6. Prizes awarded

`Company prize` `Wig and Pen prize` `Allocated costs (note 8)` Grants `Haringey Law Centre` `Solicitors Benevolent Association` `Lord Mayor's Appeal` `Personal Support Unit` `Grove Adventure Playground` `Young & Inspired` `Livery Kitchen Project` `Mansion House Scholarship Scheme` `Prisoner Pen Friends` `Sheriffs & Recorder Fund` `Royal British Legion` `ABF The Soldiers Charity Current Operation Fund` `Tower of London Choral foundation` `Free Representation Unit` `Independent Provider of Special Education Advice (IPSEA)` `LawWorks` `Only Connect` `React (Rapid Effective Assistance for Children with` `potentially Terminal illness)` `Clapton Common Boys Club` `Drama Expressions for Children` `Happy Days Children's Charity` `Tower Hamlets Parents Centre` `Social Welfare Solicitor Qualification Fund (see note 15)` `United Guild Services` `Allocated costs (note 8)`	2021 £ 750 750 1,500 42 1,542 2021 £ 1,235 2,500 2,300 2,000 - - - 1,000 - 750 750 500 750 1,500 1,500 1,500 1,500 1,000 1,500 1,500 700 1,500 10,000 - 33,985 958 34,943	`2020` `£` `750` `750` `1,500` `55` `1,555` `2020` `£` `9,246` `2,500` `2,300` `2,000` `2,000` `2,000` `2,000` `1,000` `1,000` `750` `750` `500` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(175)` `25,871` `945` `26,816`

7. Grants

Grants awarded include £1,235 (2020: £4,246) given for restricted purposes.

Page 15

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. Grants (continued)

Analysis of grants to institutions:

`Health, welfare and advice` `Education and training` `Music and the Arts` `Lord Mayor’s Appeal` `Allocated costs (note 8)`	2021 £ 28,435 2,500 750 2,300 958 34,943	`2020` `£` `22,571` `1,000` `-` `2,300` `945` `26,816`

The Lord Mayor’s Appeal supports a number of charities. Further details of the charities supported can be
found at: www.thelordmayorsappeal.org.

8. Allocation of governance and support costs

`Administrative fees` `Audit fee (donated service)` `Function/activity total` `Administrative fees` `Audit fee (donated service)` `Function/activity total` 9. Investments `Brought forward` `Additions` `Disposals` `Net gain on revaluation` `Carried forward`	Raising Funds 2021 £ 154 - 154 `Raising` `Funds` `2020` `£` `112` `-` `112` Cost 2021 £ 372,905 50,466 (16,795) - 406,576	Prizes 2021 £ - 42 42 `Prizes` `2020` `£` `-` `55` `55` Fair value 2021 £ 781,664 50,466 (50,061) 90,364 872,433	Grants 2021 £ - 958 958 `Grants` `2020` `£` `-` `945` `945` `Cost` `2020` `£` `347,608` `33,311` `(8,014)` `-` `372,905`	Total 2021 £ 154 1,000
				1,154
				`Total` `2020` `£` `112` `1,000`
				`1,112`
				`Fair` `value` `2020` `£` `704,685` `33,311` `(30,395)` `74,063`
				`781,664`

As at the date of signing of these financial statements the fair value of the investments had fallen to
approximately £800,000.

Page 16

								Fair value Income	£ £	68,485 2,247	40,928 1,946		91,828 3,249	57,835 1,441	94,787 1,669	58,373 775	141,546 352	69,300 3,370	85,595 1,873	21,280 960	- 412	31,329 603	18,921 874	69,200 -	23,026 -	872,433 19,771	`781,664` `20,195`
THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND		NOTES TO THE FINANCIAL STATEMENTS	FOR THE YEAR ENDED 31 DECEMBER 2021		Investments (continued)		`Investments held at 31 December 2021 comprise:`	Holding Cost	No. shares £	`Murray Income Trust Plc 25p ord` 7,440 14,243	`M & G Equities Investment Fund for Charities` 2,630 9,994	`(Charifund) Income Units`	`Law Debenture Corp 5p ord` 11,500 29,879	`Mercantile Investments 25p ord` 21,500 23,213	`Bankers Investment Trust` 77,000 30,621	`For & Col Inv Trust 25p ord` 6,297 21,053	`Scot Mort Inv Tst Ord 25p ord` 10,575 23,139	`City of London Inv Ord GBP 0.25` 17,600 74,262	`Witan Investment Trust Ord GBP 0.05` 34,000 55,034	`Lowland Inv.co Ord GBP 0.25` 1,600 16,142	`3.75% Treasury Stock 2021` - -	`Henderson Euro Foc Ord GBP 0.50` 1,925 20,056	`A2D Funding Plc 4.75% Gtd Snr 18/10/22 GBP` 18,400 19,962	`Smithson Inv Trust Ord GBP 0.01` 3,430 49,610	`Polar Cap Tech Tst GBP0.25` 845 19,367	As at 31 December 2021 406,575	`As at 31 December 2020` `372,905`	`Investments are financial assets measured at fair value through the Statement of Financial Activities.`	`Income includes interest of £1,287 (2020: £1,070) and dividends of £18,484 (2020: £19,125)`
					9.

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. Debtors `Amounts due from the City of London Solicitors’ Company` 11. Creditors: Amounts falling due within one year `Wig and Pen Prize` `Company Prize` `Donations` `Haringey Law Centre` `Social Welfare Solicitor Qualification Fund (see note 15)` 12. Creditors: Amounts falling due after more than one year `Haringey Law Centre` 13. Financial instruments `Financial assets measured at fair value through income and expenditure` 14. Funds	2021 £ 14,318 2021 £ 750 - - 10,000 10,000 20,750 2021 £ - 2021 £ 872,433	`2020` `£` `14,748`
		`2020` `£` `1,500` `750` `7,000` `10,000` `-`
		`19,250`
		`2020` `£` `10,000`
		`2020` `£` `781,664`

`At 1 January 2021` `Income and endowments` `Costs of raising funds` `Expenditure on charitable activities` `Gains on investments` `At 31 December 2021`	Restricted Funds £ 765 773 - (1,235) -	Unrestricted funds £ 845,214 64,927 (6,172) (35,250) 90,364 959,083	Total £ 845,979 65,700 (6,172) (36,485) 90,364
	303		959,386

There is one restricted fund for the Haringey Law Centre.

Page 18

THE CITY OF LONDON SOLICITORS’ COMPANY CHARITABLE FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Related party transactions

The Trust’s Trustee is the City of London Solicitors’ Company. The City of London Solicitors' Company is
also Trustee of The City Solicitors’ Educational Trust (“CSET”).

During the year it was agreed that a grant of £10,000 would be made to CSET, for use in its Social Welfare
Solicitor Qualification Fund project. This grant is included in creditors at the year end.

Page 19