**THE DAVID AND RUTH BEHREND FUND UNAUDITED ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022** 



## **THE DAVID AND RUTH BEHREND FUND** 

## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022** 

The Trustees present their annual report and financial statements of the charity for the year ended 31[st] March 2022. 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply 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 (FRS 102) 

## **BJECTIVES AND ACTIVITIES** 

The Trust has been established to make grants for charitable purposes. Grants are only made to charities known to the settlor and unsolicited applications are therefore not considered. 

## _**Public Benefit**_ 

In planning the Fund’s grant making the trustees have given consideration to the Charity Commission guidance on public benefit. 

## **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 maintain its level of grant-making. 

## _**Covid-19**_ 

The impact of the Covid-19 pandemic has resulted in a reduction in investment income, the trustees expect this to continue for the next few years; this will be reflected in reduced amounts being available for grant-making in the future. 

## _**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. 

## **FINANCIAL REVIEW** 

Income totalling £112,394 (2021: £109,880) was received during the year of which £50,817  was investment income (2021: investment income £48,303). This funded grants of £101,900 (2021: £66,625) to charitable organisations. Capital investments were valued at £1,786,011 (2021: £1,564,913) at the year end. 

## _**Reserves Policy**_ 

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. 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. 

## _**Investment Policy and Powers**_ 

The trustees have the same full and unrestricted powers of investment in all respects as if it were the beneficial owner. The investment strategy is set by the trustees and takes account of recent 

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## **THE DAVID AND RUTH BEHREND FUND** 

## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022** 

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 investment objective is to maintain, overall, the real value of capital and income. 

## _**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. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The Trust was established by a Trust Deed dated 17[th] September 1969 and is administered by its corporate Trustee, Liverpool Charity and Voluntary Services. 

## _**Recruitment and appointment of new trustees:**_ 

The statutory power of appointing new trustees applies to the Trust Deed. The power of recruiting and appointing new trustees is vested with the existing trustees. 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY** 

The David and Ruth Behrend Fund is a registered charity, number 261567. 

## _**Principal Office**_ 

151 Dale Street, Liverpool L2 2AH 

## _**Trustees**_ 

Mr Michael Behrend Mr Andrew Behrend 

Liverpool Charity and Voluntary Services (LCVS), a corporate trustee, which 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: 

|Chairman|Heather Akehurst|(resigned 25thNovember 2021)|
|---|---|---|
||Sonia Bassey|(appointed 25thNovember 2021)|
|Honorary Treasurer|Mike Thomas||
|Trustees|Heather Akehurst|(resigned 25thNovember 2021)|
||Dorcas Akeju||
||Maxine Ennis|(appointed 20thMay 2021)|
||Jonny Hesketh|(resigned 16thNovember 2021)|
||Mike James|(resigned 27thApril 2021)|
||Kenneth Perry||
||John Price||
||Michael Salla||
||Louise Scholes||
||James Sloan||
||Neil Sturmey|(appointed 20thMay 2021)|
||Michael Thomas||



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## **THE DAVID AND RUTH BEHREND FUND** 

## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022** 

## **Professional Advisers** 

Independent Examiner Mrs J Ellis BA FCA CTA DSG Accountancy Castle Chambers 43 Castle Street Liverpool L2 9TL Investment Manager Tilney Investment Management Royal Liver Building, Pier Head, Liverpool, L3 1NY 

## **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: 

**•** select suitable accounting policies and then apply them consistently; 

**•** observe the methods and principles in the applicable Charities SORP; 

- make judgements and estimates 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 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. 

## **Signed on behalf of the Trustee, Liverpool Charity and Voluntary Services.** 


**Mike Thomas LCVS Trustee 30 January 2023** 

4 



## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE DAVID AND RUTH BEHREND FUND** 

## **Independent Examiner’s Report to the Trustees of The David and Ruth Behrend Fund** 

I report to the trustees on my examination of the financial statements of The David and Ruth Behrend Fund (‘the charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and related notes. 

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011.  My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose.  To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed. 

## **Responsibilities and basis of report** 

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’). 

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 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 Act. 

## **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 cause to believe that in any material respect: 

-  accounting records were not kept in respect of the charity as required by section 130 of the Act; or 

-  the financial statements do not accord with those records; or 

-  the financial statements 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 financial statements to be reached. 


## **Jean Ellis BA FCA CTA DSG** 

Castle Chambers 43 Castle Street Liverpool L2 9TL 

30 January 2023 

5 



## **THE DAVID AND RUTH BEHREND FUND** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022** 

## **-------------------UNRESTRICTED FUNDS--------------** 

|||**Year to 31st March 2022**|**Year to 31st March 2022**|**Year to 31st March 2022**|**Year to**|
|---|---|---|---|---|---|
|||**Income**|**Capital**|**31st March 2021**||
|||**Funds**|**Funds**|**Total**|**Total**|
||**Notes**|**£**|**£**|**£**|**£**|
|**Income from:**||||||
|Donations||61,577|-|61,577|61,577|
|Investments||50,817|-|50,817|48,303|
|||-----------|--------------|-----------|--------------|
|**Total income**||**112,394**|**-**|**112,394**|**109,880**|
|||-----------|--------------|-----------|--------------|
|**Expenditure on:**||||||
|Raising funds||-|4,945|4,945|4,391|
|Charitable activities|3|105,653|-|105,653|69,292|
|||-----------|--------------|-----------|--------------|
|**Total expenditure**||**105,653**|**4,945**|**110,598**|**73,683**|
|||-----------|--------------|--------------|--------------|
|**Net income/(expenditure) / Net movement**||**6,741**|**(4,945)**|**1,796**|**36,197**|
|**in funds before gains and losses**||||||
|Net gains/(losses) on investment|4|(100,000)|226,043|126,043|251,252|
|||-----------|--------------|--------------|--------------|
|**Net movement in funds**||**(93,259)**|**221,098**|**127,839**|**287,449**|
|_Reconciliation of funds:_||||||
|Total funds brought forward||171,938|1,564,913|1,736,851|1,449,402|
|||-----------|--------------|--------------|--------------|
|**Total funds carried forward**|7|**78,679**|**1,786,011**|**1,864,690**|**1,736,851**|
|||======|========|========|========|



The notes on pages 8 to 12 form part of these accounts. 

The net movement in the funds in the year is derived from the continuing activity of the charity. 

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## **THE DAVID AND RUTH BEHREND FUND BALANCE SHEET AS AT 31[ST] MARCH 2022** 

|||**-----------------UNRESTRICTED FUNDS---------------**|**-----------------UNRESTRICTED FUNDS---------------**|**-----------------UNRESTRICTED FUNDS---------------**|**-----------------UNRESTRICTED FUNDS---------------**|
|---|---|---|---|---|---|
||||**At**||**At**|
||**Notes**|**31st March 2022**||**31stMarch 2021**||
|||**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Investments|4||1,786,011||1,564,913|
|**Current assets**||||||
|Debtors|5|-||121||
|Cash balances||82,421||174,478||
|||------------||------------||
|||82,421||174,599||
|**Current liabilities**||||||
|Creditors|6|(3,742)||(2,661)||
|||------------||------------||
|**Net current assets**|||78,679||171,938|
||||--------------||--------------|
|**Net assets**|||**1,864,690**||**1,736,851**|
||||========||========|
|**The funds of the charity:**||||||
|**Unrestricted funds**|||**£**||**£**|
|Capital funds|7||1,786,011||1,564,913|
|Income funds|7||78,679||171,938|
||||--------------||--------------|
||||**1,864,690**||**1,736,851**|
||||========||========|



## **Approved and authorised for issue by the Trustees and signed on their behalf by** 


**Mike Thomas LCVS Trustee 30 January 2023** 

7 



**THE DAVID AND RUTH BEHREND FUND** 

## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 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: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (SORP 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) 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** 

At the time of approving the accounts, the Trustees have a reasonable expectation that the charitable company has adequate reserves to continue in operational existence for the foreseeable future.  Thus the Trustees are confident that the levels of liquidity and free reserves will not affect the charity’s operations.  Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 

## **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. 

## **Fund accounting** 

Unrestricted funds are considered ‘free’ reserves and are available for use or retention at the discretion of the Trustees, in accordance with the charity’s objectives. Free reserves are undesignated funds available for the furtherance of the general objectives of the charity. 

## _**Income recognition**_ 

Income from investments comprises dividend income and interest and are accounted for when received in the financial year. Donations are recognised at the earlier of notification or date of receipt, in the case of the third party donations and legacy income when received by the organisation. 

## _**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 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 



**THE DAVID AND RUTH BEHREND FUND** 

## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2022** 

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. 

## _**Cash and cash equivalents**_ 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm 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. Partial recovery is made of tax credits on UK dividend income. 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 

9 



**THE DAVID AND RUTH BEHREND FUND** 

## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2022** 

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 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** 

|**CHARITABLE ACTIVITIES**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|_Direct charitable expenditure:_|||
|Grant funding|101,900|66,625|
|Grant making administration costs|1,703|1,610|
||----------|----------|
||103,603|68,235|
||----------|----------|
|_Support and governance:_|||
|Administration - LCVS|839|805|
|Examination Fee|1,211|252|
||----------|----------|
||2,050|1,057|
||----------|----------|
||**105,653**|**69,292**|
||======|======|
|The following grants were made during the year:|||
|**Grants of £1,000 and over**||**£**|
|Big Help Project||2,000|
|British Refugee Council||1,375|
|Caritas Diocese of Shrewsbury||2,000|
|Daisy Inclusive UK||1,500|
|Eastham Community Centre Ltd||1,500|
|Florence Institute Trust||1,500|
|Freedom Church Liverpool||1,500|
|Freedom From Torture||1,200|
|Health Energy Advice Team||2,000|
|Ibijoke Childrens Foundation||1,300|
|KIND||1,100|
|LCVS Everyday Changes Fund||7,200|
|Merseyside Holiday Service||1,200|
|Missionary Training Service||2,400|
|National Youth Advocacy Service||1,000|
|Porchfiled Community Association||2,000|
|PSS||1,200|
|||-----------|
|||31,975|



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## **THE DAVID AND RUTH BEHREND FUND** 

## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2022** 

|Grants continued……||
|---|---|
|Salvation Army|1,200|
|Save the Children|1,200|
|Shelter|1,200|
|St Andrew’s Community Network|1,000|
|West Everton Community Council|1,000|
|St Elizabeth’s PCC|40,000|
|Vauxhall Community Law & Information Centre|2,000|
|Women’s Health Info and Support|2,000|
||-----------|
||81,575|
|**Other Grants**|20,325|
||-----------|
||**101,900**|
||======|



4. **FIXED ASSET INVESTMENTS** 

|**IXED ASSET INVESTMENTS**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|**Quoted Investments:**|||
|Market value at 1st April 2021|1,564,913|1,318,052|
|Disposal proceeds|(107,563)|(-)|
|Acquisitions at cost|194,286|-|
|Realised gains/(losses) on investment assets|(59,701)<br>|550|
|Unrealised gains/(losses) on investment assets|185,744<br>|250,702|
|Increase/ (Decrease) in cash held by Investment|8,332<br>|(4,391)|
|Manager|||
||--------------|--------------|
|**Market Value at 31st March 2022**|**1,786,011**|**1,564,913**|
||========|========|
|**Book Value at 31st March 2022**|**1,165,788**|**1,130,434**|
||========|========|



Fixed asset investments are managed by Tilney Investment Management and are held in custodianship, in an account designated for clients, registered in the name of a nominee company to the order of Pershing Securities Limited. 

At the 31[st] March 2022 the following investments were valued at more than 5% of the total market value of the investments: 

Diageo 5.5% £  98,394 Legal and General US Index Trust 6.6% £117,578 Stewart Investors Asia Pacific 5.5% £  97,418 3I Group 5.1% £  90,367 

11 



## **THE DAVID AND RUTH BEHREND FUND** 

## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2022** 

|5.|**DEBTORS**|||
|---|---|---|---|
|||**2022**|**2021**|
||Accrued income|**£-**|**£121**|
|||=====|=====|
|6.|**CREDITORS**|||
|||**2022**<br>|**2021**|
|||**£**<br>|**£**|
||Administration – LCVS|2,542|2,415|
||Independent examination fee|1200|246|
|||---------|---------|
|||**3,742**|**2,661**|
|||=====|=====|



## 7. **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. 

## 8. **RELATED PARTY TRANSACTIONS** 

## _**LCVS**_ 

Charitable activities include £1,703 (2021: £1,610) grant making administration costs and support and governance of £839 (2021: £805) payable to LCVS in respect of accountancy and trust administration. 

_Creditors:_ these include £2,542(2021: £2,415) owing to LCVS at the year end. 

LCVS is related to the Fund by virtue of being the corporate trustee. 

12