THE MUSHROOM FUND ANNUAL REPORT FOR THE YEAR ENDED 30TH JUNE 2021
THE MUSHROOM FUND TRUSTEES, REPORT FOR THE YEAR ENDED 30TH JUNE 2021 The Trustees present their annual report and financial statements of the Charty for the year ended 30th June 2021. The financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities.. Stalemenl 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) (effective 1st January 2016). OBJECTIVES AND ACTIVITIES The Trust has been established to make grants for charitable purposes. Grants are made only to charities known to the Trustees and unsolicited applications are therefore not considered. The Trust Is administered by its corporate Truslee, Liverpool Charity and Voluntary Services. Public benefit In planning the Trust's grant making the Trustees have given consideration to the Charity Commission's guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Investments have been managed throughoul the year by the Investment Managers, with performanTr being monitored by the Trustees. The fund has therefore been able to provide a limited grant-making programme. 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 effect of Covid-19 pandemic has meant investment income has decreased and the uncertainty of its impact on future income has led the Trustees to revise Iheir level of grant- making in the short lem. FINANCIAL REVIEW Investment income of £32.264 {2020'. £36,718) was received during the year. This funded grants of £1,75012020: £30,340) to charitable organisalions. Capital investments increased in value from £1,208,870 to £1,382,163 (2020: decreased in value from £1,305.914 to £1,208.870) at the year end. Reserves policy The Trustees are managing the reserves to balance the needs of current and future beneficiaries. It is not anticipated that the needs of beneficiaries will diminish over time. The Trustees have in recent years approved expenditure at a level higher than the annual income to spend the revenue reserves. However, they have agreed to retain a balance of revenue reserves in order to be able to make more substantial grants from time to time. Risk management." The main risks to which the charity is exposed as identified by the Trustees have been considered and systems have been established to mitigate those risks.
THE MUSHROOM FUND TRUSTEES, REPORT FOR THE YEAR ENDED 30TH JUNE 2021 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. The investment strategy is set by the Trustees and takes account of recent demands for funds and an assessment ofexpected future needs (see Reserves Policy}. The investmenl policy and strategy are reviewed with the investmenl managers at regular intetva5s. The investment objective is to maintain, overall, the real value of capital and income. STRUCTURE, GOVERNANCE AND MANAGEMENT Oryanisation. Management and Delegation.. The Trustees, in their power, have delegated the management of the investments and the administration of the charity, including administration of grant-making and accountancy, to LCVS. The Trustees meet once a year to review the financial position and make grants., however, due to the Covid pandemic the meeting in 2021 was cancelled. 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. REFERENCE AND ADMINISTRATIVE DETAILS The Mushroom Fund is a registered charity, number 259954. It was established by a Trust Deed dated 2nd July 1969. The Trust is also known as Sir Alastair Pilkington's Trust. Principal Office.. 151 Dale Street, Liverpool L2 2AH Trustees." The Trustees during the year were as follows.. Mrs. R. Christian Mrs. H. Powis Mr. J. Pilkington Dr. J. Newton Mr. D.R Morris Liverpool Charity and Voluntary Services The charty's corporate Trustee, Liverpool Charily and Voluntary SeNices (LCVS), 151 Dale street Liverpool L2 2AH, is incorporated under the Companies Act as a company limited by guarantee without share capital as company number 181759, a registered charity, number 223485, and a charitable Trust Corporation. LCVS Trustees. who are also its Directors, were as follows during the year= Heather Akehurst (resigned 25th November 2021), Dorcas Akeju, Duncan Brookes (resigned 14th December 2020), Jonny Hesketh (resigned 16th November 2021), Mike James (resigned 281h April 2021), Andrew Lovelady (resigned 151 December 2020), Steve Long (resigned 291h January 2021), Ken Perry, John Price. Michael Salla, Louise Scholes, James Sloan, Mike Thomas and Sue Williams (resigned 23rd June 2022). On May 20th 2021, Sonia Bassey MBE, Maxine Ennis, Neil John Sturmey and Henry Terefenko {resigned 2N July 2022) were appoinled as trustees. on 20th September 2022 Gemma Shone was co-opted as trustree.
THE MUSHROOM FUND TRUSTEES, REPORT FOR THE YEAR ENDED 30TH JUNE 2021 Professional Advisers." Independent Examiner Anna Spencer-Gray RSM UK Tax and Accounting Limited 20 Chapel Street, Liverpool, L3 9AG Investec Wealth Management 100 Old Hall Street Liverpool L3 9AB Investment Manager TRUSTEES, RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The charity trustees are responsible for preparing a trustees, annual report and fin ancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable lo charilies in England and Wales requires the charity truslees to prepare financial slatements for each year which give a true and fair view of the stste 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-. select suitable accounting policies and then apply them consistently. observe the methods and principles in the applicable Charities SORP., • make judgements and eslimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements; prepare the financial statements on the going conrn 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 wilh 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 assels 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 Mike Thomas Trustee of Liverpool Charity and Voluntsry Servlces Dated: 22 go2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE MUSHROOM FUND I report to the trustees on my examination of the accounts of The Mushroom Fund ('the charity,) for the year ended 30th June 2021, which are set out on pages 5 to 10. 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 Direction5 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 assuran that an independent examination can provide. Consequently. l express no opinion as to whether the accounts present a 'trLAe 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 Gompleted my examination. I confirm that no material matters have come to my attention in connection wilh the examination giving me reasonable cause to believe that in any material respect- 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act- or 2. the accounts do not accord with those records,. or 3. 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 Gome 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. AIzK*> Sp&Kcer"4ry Name.. Anna Spencer-Gray Name of applicable lisled body.. The Institute of Chartered Accountants in England and Wales Relevant professional qualification or body.. Chartered Accountant ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED Chartered Accountants 141h Floor 20 Chapel Street Liverpool L3 9AG Date: 25101123
THE MUSHROOM FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH JUNE 2021 UNRESTRICTED FUNDS-------__ Year to 30th June 2021 Income Capital Funds Funds Year to 30th June 2020 Total Total Notes Income from: Inveslmenls 32,264 32,264 36,718 Total income 32,264 32,264 36,718 Expenditure on: Charitable activities 3,681 3,681 32,422 Total expenditure 3,681 3,681 32,422 Net income and net movement in funds before gains and losses on investments 28,583 28,583 4,296 Net gainsl{losses) on investments 173,293 173,293 (97,044) Net movement in funds 28,583 173,293 201,876 (92,748) Reconciliation of funds.. Total funds brought forward 24,914 1,208,870 1,233.784 1,326.532 Total funds carried forward 53,497 1,382,163 1,435,660 1,233,784 The notes on pages 7 to 10 fomi part of these accounts. The net movement in funds in the year was derived from the continuing activity of the charity. Thpse u17dtted firi8ncial slal•nienls Ii&ve been sijbiected lo Indeppndeffll e.xainifj&liori. ee report oli page 4.
THE MUSHROOM FUND BALANCE SHEET AS AT 30TH JUNE 2021 -UNRESTRICTED FUNDS--------. At At 30th June 2021 30th June 2020 Notes Fixed assets: Investments 1,382,163 1,208,870 Current assets: Cash at bank 55,428 26,996 Current liabilities: Creditors (1,931) (2,082) 53,497 24,914 Net assets 1,435,660 1,233,784 The funds of the Charity: Capilal Funds Income Funds 1,382,163 53,497 1,208,870 24,914 1,435,660 1,233,784 Approved and authorised for issue by the Trustees and signed on their behalf by Mike Thomas Trustee of Liverpool Charity and Voluntsry Services Dated: Ji The9e illl¢tiJdrted lirian¢ial slalemenls liaije been subjeLled lo indeuend2ril e.X¢iiiiiiiilioii. See rep>OIt C)fl p4cI.- 4.
THE MUSHROOM FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2021 ACCOUNTING POLICIES Basis of preparation 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.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) issued on 16th July 2014., updated 2nd February 2016 (SORP 2015) and 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 Al Ihe time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for Ihe 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 Investments held as fixed assets, in accordance with SORP 2015 are stated and included in the balance sheet at their market value at the valuation date nearest to the year end. 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. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions. The Trustees conduct a thorough risk analysis in conjunction with their investment managers at each of their Investment Committee meetings. Income recognltion Income from investments comprises dividend income and are accounted for when received in the financial year. 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 thal settlement will be required and the amount of the obligation can be measured reliably. All expenditure is aGGounted 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. Charitable activities includes grant funding, along with associated support costs, to beneficiaries. These are dealt with in the Staternent of Financial Activities when payment has been approved by the charity. Governance costs relate to compliance with l-tiese ijriaudiieil Iin4nrial .st8112lllS triavo been siihifeled lo Iiio*ii?-ndeol e.,Y8mindtion ,oe reiinri on p8gp 4
THE MUSHROOM FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2021 constitutional and statutory requirements and specifically include all costs incurred by the charity in producing the Annual Report. Cash and cash equivalents Cash and cash equivalenls 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 Instrumenls, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the charity's balan sheet when the charity becomes party to the contractual provisions of the inslrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements, when there is a legalty 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 simullaneously. 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 transaclion 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 reIp1S 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 liabi5ities 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. Theie uri8udited Iin8ncisl stalemenl¢ have b•-n qi Ihierled lo indp.pendenl &xaiTiiiiali()n See repoil oil paatt È;,
THE MUSHROOM FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2021 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 estimales and underlying assumptions are reviewed on an Onoing 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. CHARITABLE ACTIVITIES 2021 2020 Direct charitable expenditure.. Grant funding Grants made Grant making administration costs - LCVS 1,750 30,340 1,075 1,224 2,825 31,564 Support and govemance costs.. Administration - LCVS Independent examination fee 538 318 612 246 856 858 3,681 32,422 No expenses were reimbursed to truslees during the year (2020.. Nil). There were no grants of £1,000 and over made to organisations during the year {2020.' £23,000). In 2020 expenditure of £32,422 was unrestricted. FIXED ASSET INVESTMENTS 2021 2020 Quoted investments: Market value at 1 sl July 2020 Unrealised gainsl(losses) on investment assets 1,208,870 173,293 1,305,914 197,044) Market value at 30th June 2021 1,382,163 1,208,870 Book value at 30th June 2021 496,498 496,498 The trust holds 1000/0 of its fixed asset investments in a Charity Commission approved pooling scheme, the Settlors, Trust Fund (STF), administered by Liverpool Charity and Voluntary SeNices and managed by Investec Wealth Management. At 30th June 2021.
THE MUSHROOM FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2021 the assets of the STF fund had a total market value of £33,037,531 (2020= £28,526,494) of which £1,382,163 (2020.. £1,208,870) is an asset of the trust. CREDITORS 2021 2020 Administration & support- LCVS Independent examination fee 1,613 318 1,836 246 1,931 2,082 UNRESTRICTED FUNDS Income Fund.- Investment income and donations received for distribution as grants to charitable voluntary organisations. Capital Fund.. Funds held provide income for the ongoing activities of the trust. RELATED PARTY TRANSACTIONS Charitable Activities.. these include grant making administration costs of £1,075 paid to LCVS (2020.. £1,224 along with a grant of £750 in support of the work carried out by the organisation (see note 3}). Govemarpce Costs.. these include £538 (2020.. £612) payable to LCVS in respect of accountancy and trust adminislration. Creditors.. these include £1,613 (2020: £1, 836) owing to LCVS at the year end. LCVS is related to the Trust by virtue of LCVS being the Trust's corporate trustee. No trustee reiVed remuneration as part of their role as Trustee of the charity. These unsuclilea Iin?T)cial slc?lenienls have be.en 511biecled lo iridepeiidenl Éxariiiiii.Iivii .gee repL)ri on paoe 4. io