2023-03-31-accounts - The David And Ruth Behrend Fund

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THE DAVID AND RUTH BEHREND FUND

UNAUDITED ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST ] MARCH 2023

CHARITY NUMBER - 261567

THE DAVID AND RUTH BEHREND FUND TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2023

The Trustees present their annual report and financial statements of the charity for the year ended 31[st] March 2023.

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)

OBJECTIVES 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 considered 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.

Financial Review

Income totalling £117,030 (2022: £112,394) was received during the year of which £57,030 (2022: £50,817) was investment income. This funded grants of £97,183 (2022: £101,900) to charitable organisations. Capital investments were valued at £1,722,490 (2022: £1,786,011) at the year end.

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 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.

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.

THE DAVID AND RUTH BEHREND FUND TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2023

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.

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.

Name	The David and Ruth	Behrend Fund
Charity number	261567
Principal Office	LCVS
	151 Dale Street
	Liverpool
	L2 2AH
Trustees	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.
Trustees	A N Behrend
	M C Behrend
LCVS Chair	Sonia Bassey MBE
LCVS Treasurer	Mike Thomas
	Dorcas Akeju
	Sonia Bassey MBE
	Maxine Ennis
	Ken Perry
	John Price
	Michael Salla
	Louise Scholes
	Gemma Shone	(Appointed 20thSeptember 2022)
	James Sloan
	Neil John Sturmey
	Henry Terefenko	(Resigned 23rdJune 2022)
	Mike Thomas
	Sue Williams	(Resigned 23rdJuly 2022)

THE DAVID AND RUTH BEHREND FUND TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2023

Secretary Graham Wright (Resigned 28[th] February 2023) Clare White (Appointed 28[th] February 2023) (Resigned 28[th] February 2023) Helen Rotheram (Appointed 9[th] May 2023) Investment Manager Evelyn Partners Second floor, 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

Dated: 2 June 2023

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

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I report to the trustee on my examination of the accounts of The David and Ruth Behrend Fund (‘the charity’) for the year to 31[st] March 2023, which are set out on pages 6 to 14.

Responsibilities and basis of report

As the trustee 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:

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the accounts do not accord with those records; or
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.

…………………………………..

Paula Sanchez

Name of applicable listed body: Association of Chartered Certified Accountants Relevant professional qualification or body: ACCA

Date: 7[th] June 2023

THE DAVID AND RUTH BEHREND FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2023

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			Unrestricted Funds	Unrestricted Funds
		Income	Capital
		Funds	Funds	Total	Total
		2023	2023	2023	2022
Income from:	Notes	£	£	£	£
Donations	2a	60,000	-	60,000	61,577
Investments	2b	57,030	-	57,030	50,817
		-----------	--------------	-----------	-----------
Total income		117,030	-	117,030	112,394
		-----------	--------------	-----------	-----------
Expenditure on:
Raising funds		4,903	-	4,903	4,945
Charitable activities	3	100,284	-	100,284	105,653
		-----------	--------------	-------------	-----------
Total expenditure		105,187	-	105,187	110,598
		-----------	--------------	--------------	--------------
Net income		11,843	-	11,843	1,796
Net gains/(loss) on investment	4	-	(57,681)	(57,681)	126,043
Transfer of funds		5,840	(5,840)	-	-
		-----------	--------------	--------------	--------------
Net movement in funds		17,683	(63,521)	(45,838)	127,839
Reconciliation of funds:
Total funds brought forward		78,679	1,786,011	1,864,690	1,736,851
		-----------	--------------	--------------	--------------
Total funds carried forward	7	96,362	1,722,490	1,818,852	1,864,690
		======	========	========	========

The notes on pages 8 to 14 form part of these accounts.

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

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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		31st	March 2023	31st	March 2022
Fixed assets	Notes	£	£	£	£
Investments	4		1,722,490		1,786,011
Current assets
Debtors	5		-		-
Cash balances		99,463		82,421
		------------		------------
		99,463		82,421
Current liabilities
Creditors	6	(3,101)		(3,742)
		------------		------------
Net current assets			96,362		78,679
			--------------		--------------
Net assets			1,818,852		1,864,690
			========		========
The funds of the charity:
Unrestricted funds			£		£
Capital funds	7		1,722,490		1,786,011
Income funds	7		96,362		78,679
			--------------		--------------
			1,818,852		1,864,690
			========		========

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

Mike Thomas - LCVS Trustee Dated: 2 June 2023

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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) effective from 1 January 2019 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 trustee has reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustee continues to adopt the going concern basis of accounting in preparing the accounts.

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 accrual basis. All expenses, including support and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities.

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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Raising funds costs relate to expenses incurred in the management of the investment assets. Charitable activities include 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.

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.

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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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.

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 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.

2. Income and endowments from:

Income and endowments from:
	Income	Capital		Total	Total
	Funds	Funds
	2023	2023		2023	2022
a. Donation and legacies	£	£		£	£
Donations	60,000	-	60,000		61,577
	======	======	=====		=====
	Income	Capital		Total	Total
	Funds	Funds
	2023	2023		2023	2022
b. Investments	£	£		£	£
Investments dividends and interest	57,030	-	57,030		50,817
	======	======	=====		=====
Expenditure on charitable activities:
	Direct	Support &		Total	Total
	Charitable	Governance		2023	2022
	Expenditure	Costs
	£		£	£
To make grants for charitable purposes.	99,084	1,200		100,284	105,653
	=======	=======		======	======

3. Expenditure on charitable activities:

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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Analysed as follows:
	2023	2022
Direct charitable expenditure:	£	£
Grant funding	97,183	101,900
Grant making administration costs - LCVS	1,901	1,703
	-----------	-----------
	99,084	103,603
	-----------	-----------
	2023	2022
Support & Governance costs:	£	£
Administration - LCVS	950	839
Independent examination	250	1,211
	----------	----------
	1,200	2,050
	----------	----------
Total expenditure on charitable activities	100,284	105,653
	======	======

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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The following grants were made during the year:

Grants of £1,000 and over	£
Bee Wirral CIC	1,920
Breckfield & North Everton	2,000
British Refugee Council	1,500
Charles Thompson Mission	2,000
Christian International Peace Service	7,000
Crossant of Inequality Café	1,500
East Liverpool Riding for the Disabled	2,000
Feeding Birkenhead	2,000
Freedom From Torture	1,250
Holistic Harmonies CIC	1,500
IIIn Community CIC	2,000
KIND	1,200
La Salle Hotel School Liverpool	1,500
LCVS Everyday Changes Fund	7,500
Liverpool Chinese Supplementary	1,500
Liverpool Community Advice Ltd	2,400
Live, Jasmine	2,500
Merseyside Holiday Service	1,250
Micah Liverpool	2,000
Missionary Training Service	2,500
New Belve Youth & Community	1,500
North Liverpool Foodbank	2,000
Onsun Arts Foundation	1,000
PSS	1,250
River of Life	1,000
Salvation Army	1,250
Save the Children	1,250
Shelter	1,250
Signa Awareness	2,400
South Liverpool Foodbank	2,000
Sports Alive Northwest	2,400
St John the Evangelist Knotty Ash	2,000
Together (Formally MDI)	2,000
Utopia Project CIC	1,500
Vibe Liverpool	1,500
Wirral Foodbank	2,000
Yellow House	1,500
	----------
	74,820
Other grants	22,363
	----------
	97,183
	======

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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4. Fixed Asset Investments

	2023	2022
Quoted Investments:	£	£
Market value at 1stApril 2022	1,786,011	1,564,913
Disposal proceeds	(160,821)	(107,563)
Acquisitions at cost	149,857	194,286
Realised gains/(losses) on investment assets	87,351	(59,701)
Unrealised gains/(losses) on investment assets	(142,831)	185,744
Increase in cash held by Investment Manager	2,923	8,332
	--------------	--------------
Market Value at 31st March 2023	1,722,490	1,786,011
	========	========
Book Value at 31st March 2023	1,245,098	1,165,788
	========	========

Fixed asset investments are managed by Evelyn Partners 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 31st March 2023 the following investments were valued at more than 5% of the total market value of the investments:

		£
Legal and General US Index Trust	6.4%	110,318
Murray international IT	5.2%	89,914
Stewart Investors Asia Pacific	5.5%	94,165
3I Group	6.3%	108,918

5. Debtors

There were no debtors during the year end 31[st] March 2023 (2022: £nil)

6. Creditors

editors
	2023	2022
	£	£
Administration – LCVS	2,851	2,542
Independent examination fee	250	1,200
	---------	---------
	3,101	3,742
	=====	=====

THE DAVID AND RUTH BEHREND FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2023

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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

Charitable activities: these include £1,901 (2022: £1,703) grant making administration costs payable to LCVS. Support and governance costs include £950 (2022: £839) total £2,851 (2022: £2,542) payable to LCVS in respect of accountancy and trust administration which is included in creditors at the year end.

LCVS is related to the Trust by virtue of being the corporate trustees.