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2022-04-05-accounts

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

Charity number: 262057

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Trustees' Responsibilities Statement 8
Independent Auditors' Report on the Financial Statements 9 - 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Financial Statements 15 - 28

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2022

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 (until January 2022)
11 Strand
London
WC2N 5HR
Veritas Investment Partners (UK) Limited
Riverside House
2a Southwark Bridge Road
London
SE1 9HA
Sarasin & Partners LLP (from January 2022)
Juxon House
100 St. Paul's Churchyard
London
EC4M 8BU
Bankers
National Westminster Bank plc
156 Fleet Street
London
EC4A 2DX

Page 1

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2022

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 2022. 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

Our focus is on helping people lead more enriched lives and through our grant-making to charities, over 10,000,000 beneficiaries from across the UK will receive support. Our grants have been awarded to a wide variety of causes, including: medical research, healthcare, addressing societal issues of concern, supporting the arts, protecting the environment and restoring our heritage. For further details of how we work, please see our grant-making policy below.

Grant-making policy

Generally, it is our policy to make distributions either to large national charitable organisations or to small charities which are of personal or local interest to at least one of us. The average grant is between £5,000 and £10,000 and applicants can receive funding for a maximum of six consecutive years, unless invited to reapply. Applicants fill in a short eligibility questionnaire to access the grant application form. The application form enables us to assess the nature and impact of the project. We also ask applicants how they can demonstrate 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. Successful applicants are allocated a named trustee who acts as a contact in addition to the administration team. This has helped develop strong relationships over the years between us and the charities that we support.

Within 12 months of the grant being received, charities complete a short online monitoring report which asks about their achievements and challenges. The form also asks for general feedback on the application process.

Achievements and Performance

Achievements

During the year we made 90 (2021:78) charitable donations totalling £485,000 (2021: £462,000), largely supporting charities that we have assisted in the past and developed relationships with, as well as donating funds to 14 new beneficiary charities.

Page 2

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Of these charities, the majority were in the field of medicine and healthcare, followed by societal and community cohesion.

Over half of the grants awarded were to charities working across the UK. A small number of grants were awarded to charities delivering humanitarian services overseas including Covid-19 assistance, refugee support and to the Ukraine war relief.

Page 3

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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 13 to 28. 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 £262,631 (2021: deficit of £173,510). The deficit is due to a reduction of investment income due to the timing of dividends following a change in one of the portfolios from multiple holdings to a single fund.

The total gain on investments in the year totalled £1,158,202 (2021: gain £2,964,793), leaving a net increase in funds of £895,571 (2021: £2,791,283).

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 £16.3m. For the forthcoming 12 months, core administrative fees are expected to be in the region of £40,000. There are currently no long-term grant commitments.

Since 1 January 2022 there has been an annual total return target of £500,000, which is predominantly met from investment income with the balance met from the realisation of capital/investments. Where actual income is below £500,000 a transfer is made annually for the difference from endowment funds. Total funds held by the Trust were £16,291,399 at the year end (2021: £15,395,828), comprising the expendable endowment of £16,193,487 (2021: £15,273,888) and negative unrestricted funds available for distribution of £1,483 (2021: positive funds £121,940). The unrestricted funds represent the free reserves of the Trust.

The free reserves as at 5 April 2022 were negative £1,483. This is below the target reserves due to the adoption of the total return target part way through the year but is expected to return to positive reserves in line with the target.

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 National Westminster Bank.

Page 4

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

The Trustees revised their investment policy in November 2020 and moved to a total return basis with effect from 1 January 2022. 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 is asked to achieve a total return target of £250,000 each calendar year.

The Consumer Price Index increased by 6.2% in the year to 31 March 2022 (2021: increased by 1%). 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:-

2021 year end value
£		 2022 year end value
£		 Increase/(decrease)
%
Punter Southall
Wealth		 6,671,622 - N/A
Sarasin - 7,961,919 N/A
Veritas 8,321,864 7,879,768 (5.31)
Total 14,993,486 15,841,687 5.66

The net income achieved was:

The net income achieved was:
2021
£		 2022
£
Punter Southall
Wealth		 233,367 203,814
Sarasin - 700
Veritas 197,266 163,043

Future plans

We aim to continue to make grants in accordance with our grant-making policy as detailed on page 2 which has recently been reviewed and Trustees have streamlined the funding priorities by including sub-categories which are of personal interest whilst still meeting our charitable objects:

Education

The arts

Medicine and healthcare

Page 5

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Heritage, conservation and the environment

Societal and community cohesion

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.

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.

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.

Page 6

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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.

The management of our investment portfolio is split between two investment managers. Our risk is further spread by the diversity of our portfolio which consists of UK and non-UK shareholdings and bonds. During the financial year, Trustees agreed to change their investments to a total return strategy allowing the investment managers further flexibility to manage their section of the portfolio.

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. We do often pay grants to the same charity over a number of years however a follow-up monitoring report is completed before the charity can reapply and this needs to demonstrate an effective use of the funds received. 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 of 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.

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

Mrs Rebecca Judith Lawes Trustee Date: 21 July 2022

Page 7

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2022

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 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: 21 July 2022

Page 8

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

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 2022 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.

Page 9

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

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.

Page 10

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

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 Charity’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: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

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 21 July 2022 Date:

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

Page 12

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022

Note
INCOME AND ENDOWMENTS FROM:
Investments
2
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds
3
Charitable activities
TOTAL EXPENDITURE
NET EXPENDITURE BEFORE NET
GAINS ON INVESTMENTS
Net gains on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
11
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Endowment
funds
2022
£
-
-
106,174
-
106,174
(106,174)
1,158,202
1,052,028
(33,034)
1,018,994
15,273,888
1,018,994
16,292,882		 Unrestricted
funds
2022
£
367,571
367,571
-
524,028
524,028
(156,457)
-
(156,457)
33,034
(123,423)
121,940
(123,423)
(1,483)		 Total
funds
2022
£
367,571
367,571
106,174
524,028
630,202
(262,631)
1,158,202
895,571
-
895,571
15,395,828
895,571
16,291,399		 Total
funds
2021
£
430,651
430,651
107,144
497,017
604,161
(173,510)
2,964,793
2,791,283
-
2,791,283
12,604,545
2,791,283
15,395,828

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

The notes on pages 15 to 28 form part of these financial statements.

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DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

BALANCE SHEET AS AT 5 APRIL 2022

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		 24,048
45,263
69,311
(28,641)		 2022
£
16,250,729
16,250,729
40,670
16,291,399
16,292,882
(1,483)
16,291,399		 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

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

Mrs Rebecca Judith Lawes Trustee

Date: 21 July 2022

The notes on pages 15 to 28 form part of these financial statements.

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DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

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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DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

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: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

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
2022
£
Dividend income
367,558
Bank interest
13
367,571
TOTAL 2021
430,651		 Total
funds
2022
£
367,558
13
367,571
430,651		 Total
funds
2021
£
430,633
18
430,651

3. INVESTMENT MANAGEMENT COSTS

Investment management fees
TOTAL 2021		 Endowment
funds
2022
£
106,174
107,144		 Total
funds
2022
£
106,174
107,144		 Total
funds
2021
£
107,144

Page 17

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

4. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
TOTAL 2021		 Grant
funding of
activities
2022
£
485,000
462,000		 Support
costs
2022
£
39,028
35,017		 Total
funds
2022
£
524,028
497,017		 Total
funds
2021
£
497,017

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

In 2021 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
Bank fees
TOTAL 2021		 Charitable
activities
2022
£
5,340
3,840
29,033
800
-
15
39,028
35,017		 Total
funds
2022
£
5,340
3,840
29,033
800
-
15
39,028
35,017		 Total
funds
2021
£
6,600
3,765
22,928
800
924
-
35,017

All of the above costs in 2022 and 2021 are governance costs.

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DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

5. ANALYSIS OF GRANTS

Grants
TOTAL 2021
Grants to institutions
Alzheimer's Society
Armonico Consort Ltd
Aspire (Assoc. for Spinal Injury Research)
Bankside Open Spaces Trust
Become Charity
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
Canine Partners for Independence
Carers Uk
Chance to Shine Foundation Ltd
Changing Faces
Cherry Trees
Chichester Festival Theatre
Carried forward to next page		 Grants to
Institutions
2022
£
485,000
462,000		 Total
funds
2022
£
485,000
462,000
2022
£
10,000
-
5,000
-
5,000
5,000
-
-
-
5,000
10,000
10,000
5,000
-
4,000
4,000
5,000
5,000
5,000
-
3,000
5,000
86,000		 Total
funds
2021
£
462,000
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

Page 19

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

Grants to institutions (cont.)

Brought forward from previous page
Chichester Information Shop for Young People
Child Bereavement UK
Children's Trust, The
Classics for All
CLIC Sargent Cancer Care for Children
Cosmetic Toiletry & Perfumery Foundation
Creekside Education Trust
Crohn's & Colitis UK
DEBRA
DEC (Afghanistan Appeal)
DEC (Ukraine Appeal)
DEC Coronavirus
Dementia UK
Doorstep Library Network
Downs South London
East Anglia Children's Hospices
ERIC
Euan's Guide
Exmoor Search & Rescue
FareShare
Farms for City Children
Fields in Trust
FoodCycle
Foundation & Friends of the Royal Botanic Gardens, Kew
Forward Trust
Garden Museum
Girls' Network, The
Giving World
Go Beyond (CHICKS)
Golden Oldies (The Sing & Smile Charity)
Carried forward to next page		 2022
£
86,000
4,000
5,000
-
3,000
-
5,000
5,000
-
-
10,000
15,000
10,000
-
-
2,500
-
3,000
5,000
2,500
-
5,000
-
-
5,000
3,000
5,000
5,000
-
10,000
2,000
191,000		 2021
£
88,000
4,000
7,000
5,000
-
7,500
-
-
5,000
5,000
-
-
10,000
5,000
5,000
-
5,000
-
-
-
10,000
-
8,000
5,000
-
-
-
-
5,000
-
-
174,500

Page 20

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

Grants to institutions (cont.)

Brought forward from previous page
Guy's & St Thomas' Charity (Evelina Children's Hospital)
Hardman Trust
Honeypot Children's Charity, The
Hot Line Meals Service (London)
Horatio's Garden
Inspire Foundation
IPSEA
Jo's Cervical Cancer Trust
Kangaroos Mid Sussex
Kids Out UK
Katherine Low Settlement Limited
Key4Life CIO
Lifelites
Lighthouse Relief
Linking Environment and Farming
Macmillan Cancer Support
Macular Disease Society
Maggie Keswick Jencks Cancer Caring Centres Trust
Magic Breakfast
Marine Conservation Society
Maytree Respite Centre
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 Literacy Trust
National Rheumatoid Arthritis Society, The
NESSie IN ED CIC
No Way Trust Ltd, The
Nordoff Robbins Music Therapy
Normandy Community Therapy Garden
Carried forward to next page*		 2022
£
191,000
-
2,500
5,000
5,000
-
5,000
8,000
-
3,000
-
5,000
5,000
3,000
2,500
5,000
-
5,000
-
10,000
5,000
5,000
-
5,000
5,000
5,000
5,000
-
5,000
5,000
-
-
5,000
-
3,000
303,000		 2021
£
174,500
5,000
-
8,000
-
5,000
-
-
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
5,000
3,000
-
290,500

Page 21

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

Grants to institutions (cont.)

Brought forward from previous page
North Devon Hospice
NSPCC
Oracle Cancer Trust
Outward Bound Trust, The
Paul's Cancer Support Centre
Pimlico Opera
Polka Children's Theatre Ltd
President and Fellows of Murray Edwards College, Founded as New Hall, in
The University of Cambridge
Rainbow Trust Children's Charity
Read Easy UK
Redthread Youth Ltd
Refuge
Restart Lives
Roundhouse Trust
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
Shooting Star Children's Hospices
Society for Horticultural Therapy (Thrive)
South Downs National Park Trust
South West Coast Path Association
St Catherine's Hospice Ltd
Starlight Children's Foundation
Step by Step Partnership Ltd
Stroke Association
Surfers Against Sewage
Surrey Association for Visual Impairment
Sussex Archaeological Society
Target Ovarian Cancer
Carried forward to next page		 2022
£
303,000
-
10,000
-
5,000
-
5,000
-
-
3,000
-
5,000
10,000
5,000
5,000
5,000
10,000
-
10,000
5,000
5,000
-
5,000
3,000
-
5,000
5,000
5,000
3,000
5,000
5,000
3,000
5,000
5,000
435,000		 2021
£
290,500
4,000
-
5,000
-
5,000
-
5,000
3,000
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
408,500

Page 22

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

Grants to institutions (cont.)

Brought forward from previous page
Teenage Cancer Trust
Theatre Development Trust
Theatres Trust
Tom's Trust
Treloar Trust
Two Moors Festival Ltd
UK Sailing Academy
University of Westminster
Walking with the Wounded
Waterloo Community Counselling
Watts Gallery Trust
Well Being of Women
Winchester and District Young Carers
Winston's Wish
Wintercomfort for the homeless
YHA (England and Wales)
Young Minds Trust
YWCA England & Wales
Total grants awarded in the year
Reconciliation of grant expense
Grant commitments b/f (note 10)
Grants paid in the year
Grant commitments c/f (note 10)
Total grant expense for the year		 2022
£
435,000
-
10,000
10,000
-
5,000
5,000
-
5,000
5,000
-
4,000
3,000
-
-
-
3,000
-
-
485,000
(5,000)
490,000
-
485,000		 2021
£
408,500
7,500
-
-
3,000
-
5,000
5,000
-
-
5,000
-
-
3,000
5,000
5,000
-
10,000
5,000
462,000
(4,000)
461,000
5,000
462,000

Page 23

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

6. AUDITORS' REMUNERATION

2022 2021
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (VAT inclusive) 6,720 6,600
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above (VAT inclusive) 2,460 2,400

7. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 5 April 2022, expenses totalling £800 were reimbursed or paid directly to 6 Trustees (2021 - £800 to 6 Trustees). These expenses relate to travel, stationery, postage and telephone costs.

8. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 6 April 2021
Additions
Disposals
Revaluations
Movement in cash
AT 5 APRIL 2022		 Listed
investments
£
14,993,486
10,282,934
(9,281,410)
(153,323)
-
15,841,687		 Cash held
for
investment
£
343,760
-
-
-
65,282
409,042		 Total
£
15,337,246
10,282,934
(9,281,410)
(153,323)
65,282
16,250,729

Page 24

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

8. FIXED ASSET INVESTMENTS (CONTINUED)

Day-to-day management of the investments was delegated to Veritas Investment Partners, Sarasin & Partners LLP (from January 2022) and Punter Southall Wealth (until January 2022).

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.

9. DEBTORS

Accrued income 2022
£
24,048
24,048		 2021
£
58,826
58,826

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals
Grants accrued - institutional		 2022
£
28,641
-
28,641		 2021
£
34,408
5,000
39,408

Page 25

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

11. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED
FUNDS
General Funds
ENDOWMENT
FUNDS
Endowment
Funds
TOTAL OF
FUNDS		 Balance at 6
April 2021
£
121,940

15,273,888
15,395,828		 Income
£
367,571
-
367,571		 Expenditure
£
(524,028)
(106,174)
(630,202)		 Transfers
in/out
£
33,034
(33,034)
-		 Gains/
(Losses)
£
-
1,158,202
1,158,202		 Balance at 5
April 2022
£
(1,483)
16,292,882
16,291,399

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. Since 1 January 2022 the Charity has adopted a total return approach with its investment managers for a combined annual total return target of £500,000. There is no specific income target and the balance is met from the proceeds from the sale of investments (capital).

The transfer in the year represents the difference between actual income and the total return target.

Page 26

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

11. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR 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

Page 27

DocuSign Envelope ID: 676BFA81-9C0F-4D98-899B-8E8B506CEB4E

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

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
2022
Unrestricted
funds
2022
£
£
16,250,729
-
55,281
14,030
(13,128)
(15,513)
16,292,882
(1,483)		 Total
funds
2022
£
16,250,729
69,311
(28,641)
16,291,399

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

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

13. RELATED PARTY TRANSACTIONS

During the year a grant of £5,000 (2021 - £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 28