**Charity Registration No. 249997**
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **for the year ended**
**5 October 2020**
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 18|
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Arnold Philip Pilkington|
|---|---|
||Mark Rupert Feeny|
||Heloise Pilkington|
||Vanessa Pilkington|
|**Charity number**|249997|
|**Auditor**|DSG|
||Castle Chambers|
||43 Castle Street|
||Liverpool|
||L2 9TL|
|**Bankers**|NatWest Bank|
||Reading Market Place Branch|
||13 Market Place|
||Reading|
||Berks|
||RG1 2EP|
|**Solicitors**|Brabners LLP|
||Horton House|
||Exchange Flags|
||Liverpool|
||L2 3YL|
|**Investment advisors**|Tilney Investment Management|
||Royal Liver Building|
||Pier Head|
||Liverpool|
||L3 1NY|
||Rathbones|
||Port of Liverpool Building|
||Pier Head|
||Liverpool|
||L3 1NW|
|**Accountants**|DSG|
||Castle Chambers|
||43 Castle Street|
||Liverpool|
||L2 9TL|
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
The Trustees present their report and accounts for the Year ended 5 October 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The Charity's objects are to hold the c apital and income of the Trust and to apply these to such charitable corporations, trusts, associations, or institutions for charitable purposes as the Trustees in their absolute discretion shall decide. The policies adopted in furtherance of these objects ha ve no t change d during the year .
## **Aims of charity**
The aims of the Charity are to apply, at the discretion of the Trustees, grants in accordance with the charitable objects.
## **How achievement of aims furthers objectives**
The Trustees achieve their charitable objectives by making grants to other charities.
## **Strategies for achieving aims**
The T rustees ' strategies to achieve their aims continue to be one of essentially grant making .
## **Statement of compliance with Charity Commission guidance**
The Trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding the activities undertaken by the Charity during the year. The Trustees are satisfied that the information provided in the report and accounts meets the public benefit reporting requirements.
## **Charitable activities**
There are no operational activities other than those involved in the operation of the investment portfolio and the management of freehold land and buildings.
## **Grant making policy**
The Charitable Trust is mainly involved in grant making in furtherance of the charities aims. The Trustees agree and award Grants to meet the charity's objectives. Grants made during the year are monitored and recognised in the accounts in the period for which they are intended to be applied and treated as due in total on the date paid.
## **Achievements and performance Review of the Charity’s achievements**
The T rustees are happy that by applying their intended grants to various charitable objects they have been able to fulfil their aims in providing funding and support .
S everal donations were made during the year as detailed in the accounts.
- 1 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **Investment p erformance**
Most of the Charity 's capital is invested on the stock market, and throughout the year the total return of the portfolio fell within the T rustee ' s acceptable variance of the performance benchmark. Ongoing investment advice is provided by the investment advisors in conjunction with the T rustees.
As at the 5 October 2020 , the portfolio was valued at £ 17,362,349. This is in comparison to the previous year, where at the 5 October 2019 the portfolio was valued at £ 12,648,994.
## **Financial review**
T he Charitable Trust's overall fund balances for the year total £ 23,947,809 compared with £ 23,491,436 for 2019.
After taking into consideration total net incoming resources, recognised gains and losses during the year, commitments to charitable donations and governance costs, there was an overall increase in the net movement in funds of £456,373, compared to a increase of £12,894,418 for 2019.
The T rustees have also reviewed their grant making capability and will , going forward , ensure there is sufficient income year on year to enable their financial commitments to be met.
The T rustees have delegated the operation of the investment portfolio to the investment advisors who are responsible for meeting the Charity's Investment Objectives and who are measured against their benchmark.
The T rustees consider their investments as expendable endowments, providing a relatively secure and predictable stream of income from which to make grants. The T rustees aim to distribute a large percentage of the income, net of expenses, in each financial year and therefore do not maintain income reserves as such. However, any unrealised gains and the income levels on the investments held are continually reviewed by the T rustees at their meetings to ensure that they have sufficient funds to meet their objectives.
## **Reserves policy**
As a grant making charity reserves are held as investments to generate an income from which to award grants.
## **Investment Policy**
The operation of the Investment Portfolio has been delegated to the i nvestment advisors with whom there is a discretionary agreement. The i nvestment advisor s are required to avoid exposure to investments which are deemed to be unsuitable in the context of the Trustees' Objectives, when considering the portfolio as a whole.
The i nvestment advisors will provide half yearly reports which will include a statement confirming adherence to this policy statement or providing details of exceptions together with explanations. The report will also include a comparison of the portfolio return in relation to the benchmark. Major deviations will be examined and explained.
The benchmark upon which the investment portfolio is measured by 50% on FTSE All Share Index and 50% on British Government All Stocks and compared on a total returns basis.
As there are no specific restrictions of investment powers under the governing deed, the Trustees have full discretion over the investments. The Trustees have delegated the investment advisors to have full discretionary day to day control of the investments. In accordance with the Trustee Act 2000, as this duty has been delegated, the Trustees have in place a Policy Statement. Also in accordance with the Trustee Act 2000, the Trustees continue to regularly review the policies.
Assets have been acquired and disposed of in accordance with the powers available to the Trustees. The Trustees have reviewed current policies and do not feel any amendments are necessary.
- 2 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **Risk management**
The Trustees have considered the major risks to which the C harity is exposed and have established systems and procedures to manage these. This includes the appointment of accountants to provide advice and accountancy services; investment advisors to provide continuous oversight of the Trust’s investment portfolio; property consultants to oversee the management of the Charity's land and property; and the Trustees themselves have agreed to delegate certain functions to those with appropriate skills to monitor the effective management of the Trust and the application of funds to fulfil their charitable objectives.
The T rustees consider variability of investment returns to constitute the C harity’s major financial risk and have put the investment policy in place to manage that risk.
The Trustees recognise the risk associated with investment in mainstream financial markets and accept this risk in return for the prospect of additional returns over longer periods of time. They wish to moderate the risk of deviation of returns relative to the chosen benchmark.
## **Plans for the future**
The Trustees continue to consider written applications for funding from individuals and other charitable organisations. They hold Unrestricted Funds and so all funds are available to meet the Charity's objectives and are satisfied that the Charity's assets are available and adequate to fulfil its current objectives which will continue for the foreseeable future.
## **Structure, governance and management Nature of governing document**
The Charity was established by a charitable trust deed on 30 March 1966 by Alfred Cecil Pilkington .
The Trustees who served during the Year and up to the date of signature of the financial statements were: Arnold Philip Pilkington Mark Rupert Feeny Heloise Pilkington Vanessa Pilkington
## **R ecruitment and a ppointment of t rustees**
The Charity's governing body are the Trustees and new trustees are elected by the Continuing Trustees and any Retiring Trustees at the time of appointment.
The Trustees are kept up to date on relevant matters by their professional advisors. Any new Trustees are made aware of their duties and responsibilities at the time of their appointment.
## **O rganisational s tructure**
The T rust is mainly a grant making charity. In general the Trustees liaise with their professional advisors in respect of the investment portfolio and deal with the charitable donations including identifying and liaising with organisations whose activities help fulfil the objectives of the C harity.
## **How decisions are made**
The C harity is run by a body of T rustees who liaise regularly amongst themselves and with their professional advisors formally twice a year to review the policies and objectives of the T rust. The T rustees act in accordance with the decisions made at these meetings with the appropriate actions minuted.
- 3 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **Induction and training of trustees**
Incoming T rustees are made aware of their responsibilities and the T rust ' s objectives from the existing T rustees and their professional advisors at the date of their appointment.
The T rustees are kept up to date on relevant matters by their professional advisors.
## **Operational restrictions**
There are no specific restrictions imposed on the Trustees by the governing document concerning the way the charity can operate.
## **Special investment powers**
There are no specific restrictions on the T rustees ' investment powers. The T rustees have decided for the time being to impose restrictions of their own, on the investment advisors as listed in the investment policy.
## **Asset cover for funds**
The T rustees are satisfied there are s ufficient assets to meet the C harity's obligations.
## **Statement of Trustees' responsibilities**
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 and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that Year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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 charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' r eport was approved by the Board of Trustees.
Dated: ......................... Trustee
.............................. **Arnold Philip Pilkington**
- 4 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE CECIL PILKINGTON CHARITABLE TRUST**
## **Opinion**
We have audited the financial statements of THE CECIL PILKINGTON CHARITABLE TRUST (the ‘Charity’) for the Year ended 5 October 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 October 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 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 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 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.
## **Other information**
The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the accounts 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.
In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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.
- 5 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CECIL PILKINGTON CHARITABLE TRUST**
## **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 statements is inconsistent in any material respect with the Trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's 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 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 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http s ://www.frc.org.uk/auditorsresponsibilities. 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 Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **DSG**
**Chartered Accountants Statutory Auditor**
......................... Castle Chambers 43 Castle Street Liverpool L2 9TL
- 6 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CECIL PILKINGTON CHARITABLE TRUST**
DSG is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
- 7 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
|**Unrestricted Unrestricted**
**funds**
**funds**
**general**
**capital**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
25
-
Investments
**4**
325,533
-
**Total income**
325,558
-
**Expenditure on:**
Raising funds
**5**
-
80,833
Charitable activities
**6**
413,813
31,810
Other
**11**
88
-
**Total resources**
**expended**
413,901
112,643
Net gains/(losses) on
investments
**12**
-
657,359
**Net movement in funds**
(88,343)
544,716
Fund balances at 6
October 2019
957,342 22,534,094
**Fund balances at 5**
**October 2020**
868,999 23,078,810|**Total**Unrestricted Unrestricted
funds
funds
general
capital
**2020**
2019
2019
**£**
**£**
**£**
25
-
-
325,533
341,398
-
325,558
341,398
-
80,833
-
58,959
445,623
343,593
32,049
88
90
342
526,544
343,683
91,350
657,359
- 12,988,053
456,373
(2,285) 12,896,703
23,491,436
959,627
9,637,391
23,947,809
957,342 22,534,094|Total
2019
**£**
-
341,398
341,398
58,959
375,642
432
435,033
12,988,053
12,894,418
10,597,018
23,491,436|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the Year.
All income and expenditure derive from continuing activities.
- 8 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **BALANCE SHEET**
## _**AS AT 5 OCTOBER 2020**_
|**Notes**
**Fixed assets**
Investment properties
**13**
Investments
**14**
**Current assets**
Debtors
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds - capital
Unrestricted funds - revenue
The accounts were approved by the Trustees on ..........|**2020**
**£**
**£**
1,258,334
17,362,349
18,620,683
3,839,019
1,545,032
5,384,051
(56,925)
5,327,126
23,947,809
23,078,810
868,999
23,947,809
...............|**2019**
**£**
**£**
1,258,334
12,648,994
13,907,328
8,289,253
1,318,927
9,608,180
(24,072)
9,584,108
23,491,436
22,534,094
957,342
23,491,436|
|---|---|---|
.............................. Arnold Philip Pilkington **Trustee**
- 9 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**19**
**Investing activities**
Proceeds on disposal of investment
property
Purchase of other investments
Proceeds on disposal of other investments
Investment income received
**Net cash (used in)/generated from**
**investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of Year
**Cash and cash equivalents at end of Year**|**2020**
**£**
**£**
3,956,568
-
(6,591,398)
2,535,403
325,533
(3,730,462)
-
226,106
1,318,928
1,545,034|**2019**
**£**
**£**
(8,725,113)
13,151,056
(6,202,426)
1,880,293
341,398
9,170,321
-
445,208
873,720
1,318,928|
|---|---|---|
- 10 -
**THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **1 Accounting policies**
## **1.1 Accounting convention**
The accounts have been prepared in accordance 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
## **1.4 Incoming resources**
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Resources expended**
The costs of generating funds consist of investment management costs.
Costs of charitable activities include grants made, governance costs and an apportionment of support costs.
Expenditure is accounted for an an accruals basis.
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 attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
- 11 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
[Property rented to a group entity is accounted for as tangible fixed assets.]
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
- 12 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **2 Critical accounting estimates and judgements**
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Total|
|---|---|---|
||**funds**||
||**general**||
||**2020**|2019|
||**£**|£|
|Donations and gifts|25|-|
## **4 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2020**|2019|
||**£**|£|
|Rental income|50,056|47,432|
|Income from listed investments|272,493|286,926|
|Income Tax recoverable|97|1,343|
|Interest receivable|2,887|5,697|
||325,533|341,398|
## **5 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**capital**|capital|
||**2020**|2019|
||**£**|£|
|Investment management|80,833|58,959|
||80,833|58,959|
- 13 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **6 Charitable activities**
|||**Charitable**|
**Charitable**|
|---|---|---|---|
|||**Expenditure**|
**Expenditure**|
|||**Governance**|
**Governance**|
|||**2020**|
**2019**|
|||**£**|
**£**|
||Rental expenses|32,123|
48,185|
||Grant funding of activities (see note 7)|376,000|
290,000|
||Share of governance costs (see note 8)|37,500|
37,457|
|||445,623|
375,642|
||**Analysis by fund**|||
||Unrestricted funds - general|413,813|
343,593|
||Unrestricted funds - capital|31,810|
32,049|
|||445,623|
375,642|
|**7**|**Grants payable**|||
|||**2020**|**2019**|
|||**£**|**£**|
||Grants to institutions:|||
||Conservation/Environment|-|80,000|
||Medical|73,000|129,000|
||Arts|20,000|33,000|
||Education|20,000|18,000|
||Welfare|263,000|25,000|
||Other|-|5,000|
|||376,000|290,000|
|||**2020**|**2019**|
||Grants to institutions £4,000 and over|||
||Gingerbread|20,000|-|
||Compliments of the House|3,000|-|
||Age UK|30,000|-|
||Restless Leg Syndrome|3,000|-|
||Adelaide House|5,000|-|
||Trusell Trust|30,000|-|
||Micah|5,000|-|
||National Emergencies Trust|200,000|-|
||Early Music As Education|20,000|-|
||Help Musicians UK|20,000|-|
||Kings College Parkinsons Research|40,000|40,000|
- 14 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
|**7**|**Grants payable**||**(Continued)**|
|---|---|---|---|
||Alzheimers Research UK|-|5,000|
||Diabetes UK|-|5,000|
||Soil Association|-|5,000|
||Clonter Opera|-|5,000|
||Handel House Museum|-|5,000|
||National Museum Liverpool|-|5,000|
||Allergy UK|-|5,000|
||Arthritis Care|-|5,000|
||Children with Cancer|-|5,000|
||Epilepsy Research|-|5,000|
||Royal Liverpool Philharmonic|-|5,000|
||Sutton Trust|-|5,000|
||SANE|-|5,000|
||Willowbrook Hospice|-|10,000|
||Compassion in World Fishing|-|5,000|
||BTO|-|5,000|
||Greenpeace|-|5,000|
||Marine Conservation Society|-|5,000|
||Marine Stewardship Council|-|5,000|
||RSPB|-|5,000|
||Beating Bowl Cancer|-|5,000|
||Bowl Desease|-|5,000|
||Core|-|5,000|
||Great Ormond Street Hospital|-|5,000|
||Macmillan Cancer Support|-|5,000|
||Art Against Knives|-|5,000|
||Full Facts|-|5,000|
||RABI|-|5,000|
|||376,000|185,000|
||Other ( < £4,000 )|-|105,000|
|||376,000|290,000|
- 15 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **8 Support costs**
|Audit fees
Accountancy
Legal and professional
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
-
2,285
-
14,604
-
20,611
-
37,500
-
37,500|**2020**
**£**
2,285
14,604
20,611
37,500
37,500|Support
costs
Governance
costs
£
£
-
2,220
-
14,964
-
20,273
-
37,457
-
37,457|2019
£
2,220
14,964
20,273
37,457
37,457|
|---|---|---|---|---|
## **9 Trustees**
M R Feeny is a Partner of Brabners LLP which made charges during the year of £20,611 (2019 £20,273) for his services as a Trustee. This is classed as an allowable expense according to the constitution. No other Trustee has received remuneration, re-imbursement of expenditure or benefit in kind.
## **10 Employees**
## There were no employees during the year. **11 Other**
|**Unrestricted Unrestricted**
**funds**
**funds**
**revenue**
**capital**
PO Box costs
-
-
Financing costs
88
-
88
-
**For the Year ended 5 October 2019**
90
342|**Total**
**2020**
**£**
-
88
88|**Total**
**2019**
**£**
342
90
432
432|
|---|---|---|
## **12 Net gains/(losses) on investments**
|Revaluation of investments
Gain/(loss) on sale of investments
Gain/(loss) on sale of investment properties|**2020**
**£**
997,203
(339,844)
-
657,359|**2019**
**£**
228,515
(91,518)
12,851,056
12,988,053|
|---|---|---|
- 16 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
|**12**|**Net gains/(losses) on investments**|**(Continued)**|
|---|---|---|
|**13**|**Investment property**||
|||**2020**|
|||**£**|
||**Fair value**||
||At 6 October 2019 and 5 October 2020|1,258,334|
Investment property comprises land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 5th October 2014 by Carter Jonas, Chartered Surveyors, who are not connected with the Charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
## **14 Fixed asset investments**
||||**L isted**|
|---|---|---|---|
||||**investments**|
||||**£**|
||**Cost or valuation**|||
||At 6 October 2019||12,648,994|
||Additions||6,591,399|
||Valuation changes||997,203|
||Profit||(339,844)|
||Disposals||(2,535,403)|
||At 5 October 2020||17,362,349|
||**Carrying amount**|||
||At 05 October 2020||17,362,349|
||At 05 October 2019||12,648,994|
|**15**|**Debtors**|||
|||**2020**|**2019**|
||**Amounts falling due within one year:**|**£**|**£**|
||Other debtors|3,839,019|8,289,253|
- 17 -
## **THE CECIL PILKINGTON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 OCTOBER 2020**_
## **16 Creditors: amounts falling due within one year**
|Unpresented Charitable Donations
Other creditors
Accruals and deferred income
**17**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**revenue**
**Unrestricted**
**funds**
**capital**
**2020**
**2020**
**£**
**£**
Fund balances at 5
October 2020 are
represented by:
Investment properties
-
1,258,334
Investments
- 17,362,349
Current assets/
(liabilities)
868,999
4,458,127
868,999 23,078,810|**2020**
**£**
23,000
8,972
24,953
56,925
**Total**Unrestricted
funds
revenue
Unrestricted
funds
capital
**2020**
2019
2019
**£**
£
£
1,258,334
1,258,334
-
17,362,349 12,648,994
-
5,327,126
9,584,109
-
23,947,809 23,491,437
-|**2019**
**£**
-
8,478
15,594
24,072
Total
2019
£
1,258,334
12,648,994
9,584,109
23,491,437|
|---|---|---|
## **18 Related party transactions**
There were no disclosable related party transactions during the Year (2019 - none).
## **19 Cash generated from operations**
|**Cash generated from operations**
Surplus for the Year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investment property
Loss on disposal of investments
Fair value gains and losses on investments
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Cash generated from/(absorbed by) operations**|**2020**
**2019**
**£**
**£**
456,373
12,894,418
(325,533)
(341,398)
-
(12,851,056)
339,844
91,518
(997,203)
(228,515)
4,450,234
(8,285,601)
32,853
(4,479)
3,956,568
(8,725,113)|
|---|---|
## 20 **Analysis of changes in net funds**
The Charity had no debt during the year.
- 18 -