THE DUNCAN NORMAN TRUST FUND UNAUDITED ANNUAL REPORT FOR THE YEAR ENDED 30[TH] JUNE 2022
THE DUNCAN NORMAN TRUST FUND
TRUSTEES’ REPORT FOR THE YEAR ENDED 30[TH] JUNE 2022
The Trustees present their annual report and financial statements of the charity for the year ended 30th June 2022. The financial statements have been prepared in accordance with the charity’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 Republic of Ireland (FRS102).
The accounts 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The Trust Fund has been established to make grants for charitable purposes.
Grant making policy:
Grants are made, in the main, to smaller charities and organisations known to the Trustees and wider family of Duncan Norman. Unsolicited applications are therefore not considered.
Public benefit:
In planning the Fund's grant-making the Trustees have kept in mind the Charity Commission's guidance on public benefit and review the guidance issued by the Commission periodically.
ACHIEVEMENTS AND PERFORMANCE
Investments have been managed throughout the year by the Investment Managers, with performance being monitored by the Trustees. The Trust has therefore been able to continue its grant making activities.
FINANCIAL REVIEW
Investment income of £30,905 was received during the year (2021: £28,003). This funded grants of £21,960 (2021: £25,300) to charitable organisations. Capital investments were valued at £1,002,081 (2021: £1,094,643) at the year end.
Total costs incurred by the charity are summarised below:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| LCVS accountancy | 640 | 467 |
| LCVS grant-making process | 1,066 | 933 |
| LCVS administration | 2,558 | 2,387 |
| Trustees meeting costs | 240 | - |
| Trustees’ expenses | 305 | - |
| Investment management | 8,020 | 4,771 |
| Independent examination | 360 | 246 |
| --------- | --------- | |
| 13,189 | 9,695 | |
| ===== | ===== |
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THE DUNCAN NORMAN TRUST FUND
TRUSTEES’ REPORT FOR THE YEAR ENDED 30[TH] JUNE 2022
Investment policy and powers:
The Trustees have the same full and unrestricted powers of investment in all respects as if they were the beneficial owners. They have decided to appoint a professional manager to handle the Trust’s investments on a discretionary basis, with the aim of achieving a balanced return from income and capital growth and accepting a moderate degree of risk.
The investment strategy is set by the Trustees and takes account of recent demands for funds and an assessment of expected future needs (see Reserves Policy). The investment policy and strategy are reviewed with the Investment Managers at regular intervals. The Trustees’ objective is to achieve both capital and income growth and at least to preserve the real value of the Trust’s assets and investment income, over the medium to long term.
Risk management:
The main risks to which the charitable Trust is exposed is investment risk and effects to income generated through investments. The Trustees have appointed Rathbones on a discretionary mandate with the objective of mitigating risk(s) adopting a medium risk approach to investment. The Trustees believe a five year tender process should be adopted and reviewed.
Reserves policy:
The Trustees only distribute income derived from investments held. The reserves are considered by the Trustees at the annual meeting.
Plans for the future
The objectives remain unchanged for the future; the intention is for continued investment management on a consistent basis and distribution of income to charitable organisations.
Covid-19
The impact of the Covid-19 pandemic has led to a reduction in income to the charity. The Trustees will continue to follow their usual practice and consider the funding available before making grants.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisation, management and delegation:
The Trustees, in their power, have delegated the management of the investments to Rathbone Investment Management Limited and the administration of grant-making and accountancy to LCVS. The Trustees meet during the year to review these arrangements, the financial position and to make grants.
The Trust Deed permits the spending of capital; the Trustees have, however, agreed to retain the capital for the time being and to invest it to produce income to make grants.
Recruitment and appointment of new trustees:
New members are approached by the continuing members of the Board of Trustees and then appointed by election at a meeting of the Board of Trustees. Responsibility for induction and training of the new Trustees rests with the continuing members.
REFERENCE AND ADMINISTRATIVE DETAILS
The Duncan Norman Trust Fund is a registered charity, number 250434. It was established by a Trust Deed dated 30[th] April 1966.
Trustees:
The Trustees are Mrs C. E. Lazar (chair), Mrs V. S. Hilton, Miss J. Lazar, Mr R. Venner and Miss D. Miller.
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THE DUNCAN NORMAN TRUST FUND
TRUSTEES’ REPORT FOR THE YEAR ENDED 30[TH] JUNE 2022
Administrator & principal office:
Liverpool Charity and Voluntary Services (LCVS) at 151 Dale Street, Liverpool, L2 2AH provides administrative and trust secretarial services. It is incorporated under the Companies Act as a company limited by guarantee without share capital, company number 181759. It is also a registered charity, number 223485, and a charitable Trust Corporation.
Professional advisers:
Investment Managers Rathbone Investment Management Limited Port of Liverpool Building Pier Head Liverpool L3 1NW Independent Examiner Paula Sanchez ACCA Score Lane Liverpool L16 5EF
Trustees’ responsibilities in relation to the financial statements
The charity trustees are responsible for preparing a trustees’ annual report and 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 charity trustees to prepare financial statements for each 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 period. In preparing the financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees and signed on their behalf by
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF
THE DUNCAN NORMAN TRUST FUND
I report to the trustees on my examination of the accounts of The Duncan Norman Trust Fund (‘the charity’) for the year ended 30[th] June 2022, which are set out on pages 6 to 12.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Name: Paula Sanchez
Name of applicable listed body: Association of Chartered Certified Accountants Relevant professional qualification or body: ACCA
Date: 28[th] March 2023
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THE DUNCAN NORMAN TRUST FUND
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30[TH] JUNE 2022
Notes Income from: Investments Total income Expenditure on: Raising funds: Investment management costs Charitable activities: Grant funding 3 Total expenditure Net expenditure and net movement in funds before gains and losses on investments Net gains/(losses) on investment assets 4 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 7 |
Year to 30th June 2022 Year to Income Capital 30th June 2021 Funds Funds Total Total £ £ £ £ 30,905 - 30,905 28,003 ----------- -------------- -------------- -------------- 30,905 - 30,905 28,003 ----------- -------------- -------------- -------------- - 8,020 8,020 4,771 27,129 - 27,129 29,333 ----------- -------------- -------------- -------------- 27,129 8,020 35,149 34,104 ----------- -------------- -------------- -------------- 3,776 (8,020) (4,244) (6,101) - (84,542) (84,542) 146,620 ----------- -------------- -------------- -------------- 3,776 (92,562) (88,786) 140,519 14,941 1,094,643 1,109,584 969,065 ----------- -------------- -------------- -------------- 18,717 1,002,081 1,020,798 1,109,584 ====== ======== ======== ======== |
|---|---|
The net movement in funds for the year was derived from the continuing activities of the charity.
The notes on pages 8 to 12 form part of these accounts.
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THE DUNCAN NORMAN TRUST FUND
BALANCE SHEET AS AT 30[TH] JUNE 2022
| --------------UNRESTRICTED FUNDS------------- | --------------UNRESTRICTED FUNDS------------- | --------------UNRESTRICTED FUNDS------------- | --------------UNRESTRICTED FUNDS------------- | ||
|---|---|---|---|---|---|
| At | At | ||||
| Notes |
30th June 2022 | 30th June | 2021 | ||
| £ | £ | £ | £ | ||
| Fixed assets | |||||
| Investments | 4 | 1,002,081 | 1,094,643 |
||
| Current assets | |||||
| Debtors | 5 | 2,071 | 1,992 | ||
| Cash Balance | 21,258 | 16,982 | |||
| ----------- | ----------- | ||||
| 23,329 | 18,974 | ||||
| Current liabilities | |||||
| Creditors | 6 | (4,612) | (4,033) | ||
| ----------- | ----------- | ||||
| 18,717 | 14,941 | ||||
| -------------- | -------------- |
||||
| Net assets | 1,020,798 | 1,109,584 |
|||
| ======== | ======== |
||||
| The funds of the charity: | 7 | ||||
| £ | £ | ||||
| Capital Funds | 1,002,081 | 1,094,643 |
|||
| Income Funds | 18,717 | 14,941 | |||
| -------------- | -------------- |
||||
| 1,020,798 | 1,109,584 |
||||
| ======== | ======= |
Approved and authorised for issue by the Trustees and signed on their behalf on the 19 December 2022.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022
1. Accounting Policies
Basis of Accounting
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: (SORP 2019) Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The Charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
Going concern
At the time of approving the accounts, given the impact of the Coronavirus pandemic, 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 accounts.
Fund accounting
Unrestricted funds are considered ‘free’ reserves and are expendable at the discretion of the Trustees in furtherance of the general objectives of the Trust.
Investments
In accordance with Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2019), investments held as fixed assets are stated at fair value. Realised and unrealised gains and losses are dealt with as movements on the Capital Fund. Investments are valued at the mid-market price on the valuation date.
Income recognition
Income from investments comprises dividend income and interest and is accounted for on an accruals basis.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities.
Raising funds costs relate to expenses incurred in the management of the investment assets. Charitable activities includes grant funding, along with associated support costs, to beneficiaries. These are dealt with in the Statement of Financial Activities when payment has been approved by the charity. Governance costs relate to compliance with constitutional and statutory requirements and specifically include all costs incurred by the charity in producing the Annual Report.
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THE DUNCAN NORMAN TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022
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.
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 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 receipts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
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.
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THE DUNCAN NORMAN TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022
The estimates and underlying assumptions are reviewed on an on-going 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. Charitable Activities
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Direct charitable activities: | ||
| Grant funding | 21,960 | 25,300 |
| Grant support costs | 1,066 | 933 |
| ----------- | ----------- | |
| 23,026 | 26,233 | |
| ----------- | ----------- | |
| Support and governance costs: | ||
| Statutory accounts preparation | 640 | 467 |
| Administration | 2,558 | 2,387 |
| Trustees meeting costs | 240 | - |
| Trustees’ expenses | 305 | - |
| Independent examination fee | 360 | 246 |
| ----------- | ----------- | |
| 4,103 | 3,100 | |
| ----------- | ----------- | |
| 27,129 | 29,333 | |
| ====== | ====== |
Out of pocket travel or meeting expenses of £305 (2021: £nil) were reimbursed to 2 trustees in the year.
No trustees were remunerated in the year (2021: none).
There were no grants £1,000 and over made during the year 021: 4 grants totalling £4,000)
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THE DUNCAN NORMAN TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022
4. Fixed Asset Investments
| Fixed Asset Investments | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Quoted Investments: | ||
| Market value at 1stJuly 2021 | 1,094,643 | 952,794 |
| Acquisitions at cost | 115,993 | 156,744 |
| Disposal proceeds | (130,072) | (137,886) |
| Movement on cash balances | 6,059 | (23,629) |
| -------------- | -------------- | |
| 1,086,623 | 948,023 | |
| -------------- | -------------- | |
| Net realised gains on investment assets | 9,929 | 35,835 |
| Net unrealised gains/(losses) on investment assets | (94,471) | 110,785 |
| -------------- | -------------- | |
| Net gains/(losses) on investment assets | (84,542) | 146,620 |
| -------------- | -------------- | |
| Market value at 30th June 2022 | 1,002,081 | 1,094,643 |
| ======== | ======== | |
| Book cost at 30th June 2022 | 797,599 | 795,690 |
| ======== | ======== |
Investment assets are held in custodianship, in an account designated for clients, registered in the UK in the name of the nominee company Rathbone Nominees Limited.
At the 30[th] June 2022 the following investments represent more than 5% of the total market value of the portfolio:
| 5. 6. |
Diageo Plc 5.2% £51,898 (2021: 4.65%) JP Morgan – US Hedged Net 5.8% £58,034 (2021: 5.5%) JP Morgan – US Income 5.6% £56,207 (2021: 4.7%) Mercantile Investment 5.5% £55,428 (2021: 7.3%) Debtors 2022 2021 £ £ Accrued income 2,071 1,992 ===== ===== Creditors 2022 2021 £ £ Administration and support 4,264 3,787 Independent examination fee 348 246 --------- --------- 4,612 4,033 ===== ===== |
|---|---|
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THE DUNCAN NORMAN TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022
7. Unrestricted Funds
Capital Funds: Funds held provide income for the ongoing activities of the trust.
Income Funds: Investment income and donations received for distribution as grants to charitable voluntary organisations.
8. Related Parties
A grant of £300 (2021: £300) was made to Birmingham Dogs Home of which Mr R Venner is a trustee.
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