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2021-04-05-accounts

DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

Charity number: 262057

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 6
Trustees' Responsibilities Statement 7
Independent Auditors' Report on the Financial Statements 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Financial Statements 14 - 26

DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2021

Trustees Mrs Catharine Ania Kesley
Mrs Rebecca Judith Lawes
Mrs Claire Phyllida Cartledge
Mrs Susan Patricia Down
Ms Antonia Youngman
Ms Elspeth McGregor
Charity registered
number
262057
Principal office
The Trust Partnership
6 Trull Farm Buildings
Trull
Tetbury
Gloucestershire
GL8 8SQ
Independent auditors
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA
Investment Managers
Punter Southall Wealth
11 Strand
London
WC2N 5HR
Veritas Investment Partners (UK) Limited
Riverside House
2a Southwark Bridge Road
London
SE1 9HA
Bankers
National Westminster Bank plc
156 Fleet Street
London
EC4A 2DX

Page 1

DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021

The Trustees present their report together with the audited financial statements of The John Coates Charitable Trust (the charity) for the year ended 5 April 2021. The Trustees confirm that the Annual Report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity and the group’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (second edition effective 1 January 2019).

Objectives and Activities

Objects

The main object of the Trust is to provide financial support to charitable institutions or other charitable purposes. Since 5 November 1990, both the capital and the income of the Trust are paid or applied to such charitable objects in such proportions and at such times as the trustees in their absolute discretion think fit.

Public Benefit statement

Through our grant-making to charities, Trustees believe that both elements of the public benefit requirement have been met. Over 14,000 beneficiaries from all over the UK have received financial support in the past year. Whether it be contributing towards medical research, addressing societal issues of concern, supporting the arts or restoring our heritage, our focus is on helping people lead more enriched lives. For further details of how we work, please see our grant-making policy below.

Grant-making policy

It is our policy mainly to make distributions either to large national charitable organisations or to small charities which are of personal or local interest to one or more of us. The average grant is between £5,000 and £10,000. Applicants fill in a grant application form to enable us to assess the nature of the project, or ongoing work requiring funding, and thereby better determine whether it is, in our opinion, relevant to trustees' current areas of interest. We ask all applicants how they evidence the need and the expected outcomes of the work. As part of the process, we also request a budget for the work requiring funding as well as a copy of the latest examined/audited accounts.

Many of the charities that have benefited under the Trust, and particularly the small local ones, are visited by one or more of us in order to ascertain how the money has been used. In addition, we ask all successful applicants to sign their agreement to the terms and conditions of the grant. These require grantees to keep accurate financial records, evidence how the monies are spent, notify us as soon as possible if there is a delay to the grant's intended use or any desire to fund something different and, finally, to confirm that they have the requisite safeguarding policies in place. In addition, we also ask that beneficiaries report any breach of policy to us during the period of the grant they receive.

In the light of Covid-19, Trustees have given priority to charities they already support which are especially hardhit and those which are at the frontline of the national response to the pandemic.

There have been no material changes to the grant-making policy during the year.

Achievements and Performance

Achievements

During the year we made charitable donations of £462,000 (2020: £382,000) between 78 charitable organisations (2020: 79), supporting projects that we have assisted in the past, as well as donating funds to new beneficiary charities.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Of these charities, the majority were in the field of medicine, often leading the response to the pandemic. More than half our grantees were national organisations, usually long-established, and with whom we have longstanding relationships. It is our belief that such charities are best placed to understand beneficiary need and be able to offer practical help.

Feedback from our grantees showed that they used our grants to help them pivot their services in response to the pandemic, achieve greater financial security, and deliver core work at a time of unprecedented change. As part of our grant monitoring, for the first time we asked grantees for feedback on our application process and how we communicated with them. We were gratified to learn that, of those who responded, 95% of grantees highlighted the ease of the process and the clarity of our communication with them.

Performance

The charity has no paid staff.

We believe that the charity has sufficient assets to meet its obligations.

Financial Review

Financial Performance

The financial statements are set out on pages 12 to 26. There were no material changes to the accounting policies in the year.

As noted below, it is the trustees' policy to distribute all their annual income. There was a deficit of income over expenditure of £173,510 (2020: deficit of £55,271).

The total gain on investments in the year totalled £2,964,793 (2020: loss of £1,994,614), leaving a net increase in funds of £2,762,621 (2020: loss of £2,049,885). Further details of donations made and investment performance are set out above under Achievements and Performance.

Reserves policy

We aim to hold in reserve sufficient funds to cover grant commitments, budgeted costs and routine activities, for example, trustee meetings and expenses for the current financial year. We aim to maintain an appropriate budget for future years to cover longer-term grant commitments and administration costs.

The Trust generates income from an investment portfolio of approximately £15.2m. For the forthcoming 12 months, core administrative fees are expected to be in the region of £145,000. The free reserves as at 5 April 2021 were £121,940 which is considered to be in line with the reserves policy.

Total funds held by the Trust were £15,395,828 at the year end (2020: £12,604,545), comprising the expendable endowment of £15,273,888 (2020: £12,416,239) and unrestricted funds available for distribution of £121,940 (2020: £188,306). The unrestricted funds represent the free reserves of the Trust.

Our reserves policy is reviewed on an annual basis.

Investment policy

We have the power to invest Trust funds in such assets of whatever nature we think fit as described above. The assets of the Trust were managed on a discretionary basis, cash to meet immediate requirements being held on deposit with the National Westminster Bank.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Our investment managers were set a benchmark of a 3.5% p.a. increase in, the value of the portfolio above the Consumer Price Index and specifically, each manager was asked to achieve a net income of £200,000 in the year to 5 April 2021.

The Consumer Price Index increased by 1% in the year to April 2021 (2020: increased by 1.5%). The investment portfolios increased as follows (excluding cash) and recuperated the losses made in 2020 when the year end fell close to the bottom of the market during the early days of the pandemic:-

2020 year end value
£		 2021 year end value
£		 Increase
%
Punter Southall Wealth 5,018,708 6,671,622 32.94
Veritas 6,510,024 8,321,864 27.83
11,528,732 14,993,486

The net income achieved was as follows:-

£
Punter Southall Wealth 233,367
Veritas 197,266

In a difficult year due to the COVID pandemic both investment managers achieved close to, or exceeded, the income target. The decrease from the prior year reflected the overall performance of the market.

There has been no change to the benchmark or the net income target.

The benchmark and net income target are reviewed annually. The trustees reflect on the income generated and the capital growth when reviewing performance of the investment managers.

Future plans

We aim to continue to make grants in accordance with our grant-making policy as detailed on page 2. Given last year’s focus on medical projects, it is our intention to do more to support the arts in 2021.

Going Concern

Having assessed the Trust's financial position and plans for the foreseeable future, the trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.

In the light of Covid-19, the trustees will give priority to charities they already support which are especially hardhit and those which are at the frontline of the national response to the pandemic.

Structure Governance and Management

Governing document

Settlement deed dated 6 November 1969 by John Bernard Maurice Coates.

Trustee selection methods

New trustees are appointed by deed by the acting Trustees. Although we would hope that future trustees will be found from among the descendants of the Settlor, we recognise that this may not always be possible. In these circumstances, we would look to appoint an "outside" trustee, and may, if necessary, appoint a professional to take on this role. In such circumstances, trustees would be identified via targeted recruitment.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Potential trustees are met by the Chair who then makes a recommendation to the full Board at an appropriately convened meeting. Trustees are sent a joining pack which includes the following documents:

There is no limit to the length of tenure served; however, the Trustees may wish to recruit new trustees and retire existing trustees based on the skills they deem required on the Board to effectively execute their current strategy.

Organisational structure of the charity and how decisions are made

We are empowered by the trust deed to pay out the capital and the income of the Trust to or for such charitable purposes as we, in our absolute discretion think fit.

Risk policy

We have reviewed the major risks which we face.

The main financial risk relates to the underperformance of our investment portfolio, which is our sole asset. We realise that the risks cannot be eliminated entirely, but we have policies in place to mitigate them so far as possible. Our investment portfolio is managed by established investment managers and its performance, suitability of its investment holdings and investment policy are reviewed on a regular basis by the managers and trustees.

Our risk is spread by the diversity of our portfolio which consists of UK and non-OK shareholdings and bonds. In the event that our income should fall, we can transfer funds from our expendable endowment to support grants to charitable organisations if required.

The management of our investment portfolio is split between two investment managers. This should further mitigate the risk in this area.

As far as reputational risk is concerned, we make donations only to UK registered charities, whose accounts are subject to the UK reporting and accounting regulations. It is part of our application process to request details of how our donation has been spent. We do not commit to making staged payments, although in practice, we do make repeat donations to some charities over a period of several years. We occasionally visit a charity before any grant is made to enable us to get an idea of how our money will be used. More often, visits are made after a donation.

Our risk policy is reviewed on an annual basis.

Fundraising

The charity has no fundraising activities requiring disclosure under S162A the Charities Act 2011.

Charities Code of Governance

The Trustees have engaged The Trust Partnership to provide administration and governance support. The Trust Partnership provides advice and guidance to ensure the Trustees are working in line with the Charities Code of Governance and follow best practice where it is practical to do so.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mrs Rebecca Judith Lawes (Trustee) Date: 18 October 2021

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2021

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 & 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Mrs Rebecca Judith Lawes (Trustee) Date: 18 October 2021

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST

OPINION

We have audited the financial statements of The John Coates Charitable Trust (the 'charity') for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

AUDITORS' 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 Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

of business and reviewing accounting estimates for bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Peters Elworthy & Moore Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 22 October 2021

Peters Elworthy & Moore are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
INCOME AND ENDOWMENTS FROM:
Investments
2
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds
3
Charitable activities
4
TOTAL EXPENDITURE
NET EXPENDITURE BEFORE NET
GAINS/(LOSSES) ON
INVESTMENTS
Net gains/(losses) on investments
8
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Endowment
funds
2021
£
-
-
107,144
-
107,144
(107,144)
2,964,793
2,857,649
12,416,239
2,857,649
15,273,888		 Unrestricted
funds
2021
£
430,651
430,651
-
497,017
497,017
(66,366)
-
(66,366)
188,306
(66,366)
121,940		 Total
funds
2021
£
430,651
430,651
107,144
497,017
604,161
(173,510)
2,964,793
2,791,283
12,604,545
2,791,283
15,395,828		 Total
funds
2020
£
473,768
473,768
107,126
421,913
529,039
(55,271)
(1,994,614)
(2,049,885)
14,654,430
(2,049,885)
12,604,545

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 26 form part of these financial statements.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

BALANCE SHEET AS AT 5 APRIL 2021

Note
FIXED ASSETS
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Endowment funds
11
Unrestricted funds
11
TOTAL FUNDS		 58,826
139,164
197,990
(39,408)		 2021
£
15,237,246
15,237,246
158,582
15,395,828
15,273,888
121,940
15,395,828		 55,131
196,228
251,359
(36,484)		 2020
£
12,389,670
12,389,670
214,875
12,604,545
12,416,239
188,306
12,604,545

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mrs Rebecca Judith Lawes Trustee

Date: 18 October 2021

The notes on pages 14 to 26 form part of these financial statements.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (second edition effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and 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 Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The John Coates Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 GOING CONCERN

The Trustees' believe that the charity will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore continue to adopt the going concern basis in preparing the financial statements.

1.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of the investment portfolio.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. ACCOUNTING POLICIES (CONTINUED)

1.4 EXPENDITURE (CONTINUED)

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.

All expenditure is inclusive of irrecoverable VAT.

1.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

1.7 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.8 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. ACCOUNTING POLICIES (CONTINUED)

1.10 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

The expendable endowment represents the value of assets held as investments arising from the original assets settled by the late J B M Coates on 6 November 1969. The income arising on these assets is available for use in accordance with the trust's objects and is included in unrestricted income. The fund is available for expenditure on charitable donations as the trustees see fit.

2. INVESTMENT INCOME

Unrestricted
funds
2021
£
Dividend income
430,633
Bank interest
18
430,651
TOTAL 2020
473,768		 Total
funds
2021
£
430,633
18
430,651
473,768		 Total
funds
2020
£
472,934
834
473,768

3. INVESTMENT MANAGEMENT COSTS

Investment management fees
TOTAL 2020		 Endowment
funds
2021
£
107,144
107,126		 Total
funds
2021
£
107,144
107,126		 Total
funds
2020
£
107,126

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

4. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
TOTAL 2020		 Grant
funding of
activities
2021
£
462,000
382,000		 Support
costs
2021
£
35,017
39,913		 Total
funds
2021
£
497,017
421,913		 Total
funds
2020
£
421,913

Support costs are allocated to grants payable on the basis of the total number of grants awarded.

In 2020 all expenditure on charitable activities was attributable to unrestricted funds.

ANALYSIS OF SUPPORT COSTS

Audit fees
Accountancy fees
Trust administration expenses
Trustees' expenses
Other expenses
TOTAL 2020		 Charitable
activities
2021
£
6,600
3,765
22,928
800
924
35,017
39,913		 Total
funds
2021
£
6,600
3,765
22,928
800
924
35,017
39,913		 Total
funds
2020
£
5,070
4,275
30,002
500
66
39,913

All of the above costs in 2021 and 2020 are governance costs.

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

5. ANALYSIS OF GRANTS

Grants
TOTAL 2020
Grants to institutions
Alzheimer's Society
A New Direction London Limited
Armonico Consort Ltd
Aspire (Assoc. for Spinal Injury Research)
Bankside Open Spaces Trust
Barn Owl Trust, The
Big Issue Foundation, The
Bletchley Park Trust Ltd
Blue Smile Project
Brain Tumour Charity, The
British Diabetic Association, The
British Heart Foundation, The
British Red Cross Society, The
British Stammering Association
British Wheelchair Sports Foundation, The
Bumblebee Conservation Trust
Cambridge Literary Festival
Campaign for National Parks
Carers Uk
Chance to Shine Foundation Ltd
Changing Faces
Chichester Counselling Services
Chichester Festival Theatre
Carried forward to next page		 Grants to
Institutions
2021
£
462,000
382,000		 Total
funds
2021
£
462,000
382,000
2021
£
5,000
-
3,000
5,000
5,000
-
5,000
10,000
5,000
5,000
5,000
15,000
-
-
5,000
-
5,000
-
5,000
5,000
5,000
-
-
88,000		 Total
funds
2020
£
382,000
2020
£
5,000
4,000
-
2,000
-
1,000
5,000
5,000
3,000
-
-
10,000
5,000
5,000
-
3,000
-
1,000
5,000
5,000
5,000
3,000
5,000
72,000

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Grants to institutions (cont.)

Brought forward from previous page
Chichester Information Shop for Young People
Child Bereavement UK
Children's Trust, The
Christmas for Kids
Classics for All
CLIC Sargent Cancer Care for Children
Country Holidays for Inner City Kids (CHICKS)
Creekside Education Trust
Crohn's & Colitis UK
Cystic Fibrosis Trust
DEBRA
Dementia UK
Disasters Emergency Committee (Coronavirus Appeal)
Doorstep Library Network
Duchenne UK
Dyspraxia Foundation
East Anglia's Children's Hospices
Eating Matters
Evan's Guide
Eve Appeal, The
FareShare
Fields in Trust
FoodCycle
Geffrye Museum Trust, The
Give a Book
Giving World
Golden Oldies (The Sing & Smile Charity)
Guy's & St Thomas' Charity (Evelina Children's Hospital)
High Tide Festival Productions Limited
Honeypot Children's Charity, The
Horatio's Garden
Carried forward to next page		 2021
£
88,000
4,000
7,000
5,000
-
-
7,500
-
-
5,000
-
5,000
5,000
10,000
5,000
-
-
5,000
-
-
-
10,000
8,000
5,000
-
-
5,000
-
5,000
-
8,000
5,000
192,500		 2020
£
72,000
-
-
-
3,000
3,000
10,000
10,000
4,000
-
8,000
4,000
2,000
-
-
5,000
2,500
-
2,000
5,000
5,000
-
5,000
-
8,000
5,000
3,000
1,000
-
2,000
-
-
159,500

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Grants to instituions (cont.)

Brought forward from previous page
Horniman Public Museum and Public Park, The
Hot Line Meals Service (London)
Indpendent Providor of Special Education Advice (IPSEA)
Jo's Cervical Cancer Trust
Junction Community Trust (SPEAR)
Kids Out UK
Kingston Theatre Trust
Lifelites
Macmillan Cancer Support
Maggie Keswick Jencks Cancer Caring Centres Trust
Magic Breakfast
Meath Epilepsy Charity
Missing People Limited
Money Charity, The
Motor Neurone Disease Association
Movement for Non-Mobile Children, The (Whizz-Kidz)
Multiple Sclerosis Society
National Axial Spondyloarthritis Society (NASS)
National Rheumatoid Arthritis Society, The
NESSie IN ED CIC
Nordoff Robbins Music Therapy
North Devon Hospice
No Way Trust Ltd, The
Oracle Cancer Trust
Outward Bound Trust, The
Oxford Shakespeare Ensemble (formerly Creation Theatre Company)
Painshill Park Trust Limited
Paul's Cancer Support Centre
Petersfield Swimming Pool
Polka Children's Theatre Ltd
President and Fellows of Murray Edwards College, Founded as New Hall, in
The University of Cambridge
Carried forward to next page		 2021
£
192,500
-
-
-
5,000
-
5,000
-
4,000
10,000
10,000
10,000
3,000
10,000
-
5,000
4,000
10,000
5,000
4,000
5,000
3,000
4,000
5,000
5,000
-
-
-
5,000
-
5,000
3,000
312,500		 2020
£
159,500
5,000
5,000
5,000
5,000
5,000
6,000
3,000
-
10,000
10,000
-
-
-
5,000
5,000
5,000
10,000
-
-
-
3,000
-
-
-
5,000
4,000
10,000
5,000
3,000
-
-
268,500

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Grants to institutions (cont.)

Brought forward from previous page
Prisoners' Advice Service
Prisoners Education Trust
Prostate Cancer UK
Queen Mary University of London
Rainbow Trust Children's Charity
Read Easy UK
Redthread Youth Ltd
Refuge
Foundation and Friends of the Royal Botantic Gardens, Kew, The
Royal Horticultural Society (Wisley), The
Royal Hospital for Neuro-disability
Royal Marsden Cancer Charity, The
RSPB (The Royal Society for the Protection of Birds)
Samaritans
Schoolreaders
Scope (Navigate Project)
Sebastian's Action Trust
Sick Children's Trust
Sir John Soane's Museum
South Downs National Park Trust
South West Coast Path Association
Sportability
Starlight
St Catherine's Hospice Ltd
Stroke Association
Surfers Against Sewage
Target Ovarian Cancer
Teenage Cancer Trust
Tom's Trust
Treloar Trust
Carried forward to next page		 2021
£
312,500
-
-
-
-
5,000
5,000
-
5,000
-
-
5,000
10,000
3,000
10,000
5,000
5,000
10,000
-
-
5,000
5,000
-
-
10,000
-
3,000
10,000
7,500
3,000
-
419,000		 2020
£
268,500
5,000
3,000
2,500
4,000
3,000
-
5,000
-
5,000
5,000
5,000
10,000
-
-
5,000
5,000
10,000
5,000
5,000
3,000
-
2,000
4,000
-
5,000
-
-
-
-
5,000
365,000

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Grants to institutions (cont.)

Brought forward from previous page
Two Moors Festival Ltd
UK Sailing Academy
Veterans Aid
Waterloo Community Counselling
Watts Gallery
Winchester and District Young Carers
Winston's Wish
Wintercomfort for the homeless
Women's Aid Federation of England
Young Minds Trust
YWCA England & Wales
6.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above		 2021
£
419,000
5,000
5,000
-
5,000
-
3,000
5,000
5,000
-
10,000
5,000
462,000
2021
£
6,600
2,400		 2020
£
365,000
-
5,000
2,000
-
5,000
-
-
-
5,000
-
-
382,000
2020
£
5,070
4,275

7. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 5 April 2021, expenses totalling £800 were reimbursed or paid directly to 6 Trustees (2020 - £500 to 4 Trustees). These expenses relate to travel, stationery, postage and telephone costs.

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THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

8. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 6 April 2020
Additions
Disposals (proceeds £2,366,246)
Revaluations
Cash movement
AT 5 APRIL 2021		 Listed
investments
£
11,528,732
2,866,207
(1,923,583)
2,522,130
-
14,993,486		 Cash held
for
investment
£
860,938
-
-
-
(617,178)
243,760		 Total
£
12,389,670
2,866,207
(1,923,583)
2,522,130
(617,178)
15,237,246

Day-to-day management of the investments was delegated to Veritas Investment Partners and Punter Southall Wealth.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in collective investment funds, unit trusts and open-ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report. The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives or similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

9. DEBTORS

Accrued income 2021
£
58,826
58,826		 2020
£
55,131
55,131

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals
Grants accrued - institutional		 2021
£
34,408
5,000
39,408		 2020
£
32,484
4,000
36,484

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

11. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General Funds
ENDOWMENT FUNDS
Endowment Funds
TOTAL OF FUNDS		 Balance at 6
April 2020
£
188,306
12,416,239
12,604,545		 Income
£
430,651
-
430,651		 Expenditure
£
(497,017)
(107,144)
(604,161)		 Gains/
(Losses)
£
-
2,964,793
2,964,793		 Balance at 5
April 2021
£
121,940
15,273,888
15,395,828

The expendable endowment represents the value of assets held as investments arising from the original assets settled by the late John Bernard Maurice Coates on 6 November 1969 less investment manager fees less expenditure. The income arising on these assets is available for use in accordance with the trust's objects and is included in unrestricted income. The fund is available for expenditure on charitable donations as the trustees deem fit.

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
General Funds
ENDOWMENT FUNDS
Endowment Funds
TOTAL OF FUNDS		 Balance at
6 April 2019
£
136,451
14,517,979
14,654,430		 Income
£
473,768
-
-		 Expenditure
£
(421,913)
(107,126)
(529,039)		 Gains/
(Losses)
£
-
(1,994,614)
(1,994,614)		 Balance at
5 April 2020
£
188,306
12,416,239
12,604,545

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DocuSign Envelope ID: E5A2BDE2-6376-4BE3-8A63-529CDD190624

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Fixed asset investments
Current assets
Creditors due within one year
TOTAL		 Endowment
funds
2021
Unrestricted
funds
2021
£
£
15,237,246
-
55,380
142,610
(18,738)
(20,670)
15,273,888
121,940		 Total
funds
2021
£
15,237,246
197,990
(39,408)
15,395,828

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Fixed asset investments
Current assets
Creditors due within one year
TOTAL		 Endowment
funds
2020
£
12,389,670
43,766
(17,197)
12,416,239		 Unrestricted
funds
2020
£
-
207,593
(19,287)
188,306		 Total
funds
2020
£
12,389,670
251,359
(36,484)
12,604,545

13. RELATED PARTY TRANSACTIONS

During the year a grant of £5,000 (2020 - £5,000) was given to Chance to Shine Foundation Ltd, a charity whose Trustees include the spouse of one of The John Coates Charitable Trust's Trustees.

Page 26