REGISTERED CHARITY NUMBER: 262581
Report of the Trustees and
Financial Statements
for the Year Ended 31 March 2021
for
W H Smith Benevolent Fund
MHA Monahans Statutory Auditors 38-42 Newport Street Swindon Wiltshire SN13DR
W H Smith Benevolent Fund
Contents of the Financial Statements for the Year Ended 31 March 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | to | 7 | |
| Report of the Independent Auditors | 8 | to |
9 |
| Statement of Financial Activities | 10 | ||
| Balance Sheet | 11 | ||
| Notes to the Financial Statements | 12 | to |
18 |
W H Smith Benevolent Fund
Report of the Trustees for the Year Ended 31 March 2021
The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES Objectives and aims
The W H Smith Benevolent Fund was established by Lord Hambleden in 1925 with a gift of £21,000 to commemorate the coming of age of his son, for the benefit of:
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a person or persons are who in financial difficulty or hardship and in need; and
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who are employed or were employed in the business (being WH Smith); and/or
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their spouse, widow, widower, children, descendants or dependants.
('Dependent' on the other person for the necessities of life).
The Benevolent Fund awards cash grants to help alleviate cases of hardship, awards grants for mobility scooters, stairlifts and other mobility aids and provides care breaks and recuperative holidays.
During the last decade the Benevolent Fund has made grants and awards to serving and retired staff members and their families totalling in excess of one million pounds.
The Benevolent Fund co-operates with other charities, in particular SSAFA and NewstrAid, in jointly meeting beneficiaries' needs.
Public Benefit:
The Trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding what activities the charity should undertake. The trustees consider that they have acted in the public benefit. The W H Smith Benevolent Fund's beneficiaries are restricted to a "section of the public" as detailed above. This restriction is reasonable, open in nature and the potential number of beneficiaries is wide.
Under Clause 12 of the Principle Deed (2002), the Trustees have the power to amend or vary the terms of the Principle Deed, by deed, provided they do not prejudice the charitable nature of the Fund.
Page 1
W H Smith Benevolent Fund
Report of the Trustees for the Year Ended 31 March 2021
ACHIEVEMENT AND PERFORMANCE
GRANTS COMMITTEE AND COMMITTEE OF MANAGEMENT
The Grants Committee met virtually each quarter throughout the year and the Committee of Management held their annual meeting in July 2020 virtually. The annual report was approved for submission to the Trustees. The budget was formally approved. The types of grants were reviewed and values increased as appropriate.
INVESTMENT COMMITTEE
The Investment Committee reviewed the investments and strategy in October 2020 via correspondence.
TRUSTEES MEETING
The Annual Meeting of Trustees was held virtually on the 14th May 2020. The Annual Report and Accounts were approved. The Secretary reported on the year's activities, grants paid and typical cases.
FUND AWARENESS
An awareness poster was produced for distribution to Retail branches and Head Office during the year.
FUND VALUATION
At year end (31st March, 2021) the Fund's net assets were £6.096 million, an increase of 5.3% from the previous year. INVESTMENT INCOME
Investment income during the year was £154,859 a decrease of 28.8% over the previous year. Investment yield was 3.12%.
INCOME/EXPENDITURE
The Fund's income fell short of expenditure this year by £259,830.
FUND EXPENDITURE
| Total Expenditure BENEFICIARIES Grants & Christmas Recuperative Holidays Carebreaks Income Grants SIGs Total EXPENSES Bank Fees Secretary's salary + NI Admin & Suppor Costs and Salaries Audit fee Total |
£ 415,189 348,016 4,130 11,530 25,480 389,156 852 17,299 4,882 3,000 26,033 94% of expenditure 6% of expenditure |
|---|---|
Total expenses have decreased by 15.8% from last year (2020: £30,904).
The total amount awarded to beneficiaries has increased by 214% year on year.
Page 2
W H Smith Benevolent Fund
Report of the Trustees for the Year Ended 31 March 2021
ACHIEVEMENTS AND PERFORMANCE· continued
ANALYSIS OF GRANTS AWARDED TO BENEFICIARIES
Major Grants(Range £200 £10,000) 48 Emergency/Immediate Grants 266 (Range £50 - £4,000) Recuperative Holidays 2 (Award up to £2,250) 6 recipients claimed for award(travel restrictions impacted these Carebreaks(Award up to £2,500) arrangements) Christmas Cheques 16 Retired (Value £360) Income Grants (paid quarterly) 12 Retired (Grant S,I.G, £490)
Total number of serving and retired employees granted benefits and awards year ending 31 March 2021 was 314 (EM/MG only) , examples of typical grants are:
Financial help towards: Rent, council tax, utility bills, mortgage arrears, funeral expenses, home heating and repairs, fire damage, immediate necessities, Vet fees, Disability aids, Medical treatment, counselling and the provision of home furnishings. Home rental deposits and credit card debt.
All beneficiaries or their family have or were experiencing one or more of the following circumstances:
In receipt of: State benefits, income support, tax credits or on low income. Suffered: a traumatic event, terminal illness, long term sickness, death in the family, redundancy, accident at work, threat of eviction, divorced, separated or a single parent or carer.
FINANCIAL REVIEW
Investment policy and objectives
The investment policy is to invest the Benevolent Fund's assets in UK equities and Fixed interest in order to provide an appropriate balance between risk and return and pursue an index investment strategy as set out below.
| Asset Class % | Benchmark | Range | Performance Reference | |
|---|---|---|---|---|
| UK equities | 60.0% | +/- 1.5% | FTSE All-Share Index | |
| Fixed interest | 40.0% | +/- 1.5% | UK Gilts All Stocks | |
| Total Fund | 100.0% |
The fund will be reviewed on an ongoing basis and rebalanced as required in the event that the asset allocation to any one class moves outside the ranges set out above.
Financial Position and Reserves policy
The Funds reserves available as at the 31st March totalled £6.096 million of which £6.030 million is invested in UK equities and Fixed interest bonds and the balance is on deposit with Lloyds bank.
The Fund retains these investments to provide a sufficient returns income in order to meet the grant expenditure and running costs of the Charity.
The Benevolent fund relies on these investments as the Fund owns no property or land and receives little or no public donations.
The Fund undertakes no fund-raising activities.
The total funds including investments, donations and cash on account year ending 31 March 2021 was £6.096 million an increase year on year of 309,160. The income from the investments, donations and interest this year was £155,359 which was all expended directly to beneficiaries with reserves being used to meet the exceptional expenditure due to Covid-19 related issues. No money was therefore available for reinvestment.
Page 3
W H Smith Benevolent Fund
Report of the Trustees for the Vear Ended 31 March 2021
FUTURE PLANS
As a result of the Covid-19 pandemic there has been a marked increase in activity and substantially more support was awarded in 2020/2021 due to increased demand. The Trustees have agreed to meet the exceptional demand for grants for this year.
The Fund will continue to work closely with the Risk and Occupational Health Department, particularly about Family, Palliative and Recuperative holidays.
As required, a promotional Benevolent Fund staff awareness poster will be sent to all UK branches, Swindon warehouse, Head Office departments, and branches overseas.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Recruitment and appointment of new trustees
The power of appointing new trustees is vested in the Trustees. New Trustees to Sign 'Trustee Declaration.'
The Trustees may appoint an additional Trustee or Trustees at their discretion.
A Trustee will be automatically removed and discharged from office on the termination of his/her contract with the Company, unless the other Trustees unanimously invite him/her to remain in office as a Trustee for a period of twelve months from the date of the invitation.
At the expiry of the twelve-month period (or any subsequent twelve-month period), the Trustee will be discharged from office, unless the Trustees who remain in the service of the Company decide unanimously to invite the Trustee to remain in office for a further twelve months.
Subject to the Trustees ratifying the appointment every twelve months there will be no limit to the period to which such a Trustee may hold office.
Decision making
Committee of Management:
This Committee meets annually to approve the annual budget and to approve the annual Trustees report. The Committee also reviews and amends as required the grant award values and amends as required the appropriate criteria.
The Committee shall consist of any of the Trustees and serving members of the grants committee.
Grants committee:
This Committee meets quarterly to discuss applications and approve grants and awards. The Committee shall consist of any of the Trustees and any serving or retired employees of the Business.
Each year, those members of the Committee who have completed five or more years' service on the Committee will either be asked by the Trustees to serve on the Committee for an additional year, or resign as a member of the Committee.
Serving and retired staff are invited to become Committee members and are appointed by the Trustees and may serve for a maximum of eight years on the Committee.
Investment committee:
The investment committee meets or engages via correspondence at least annually in order to review the performance of the investment portfolio.
Page It+-
W H Smith Benevolent Fund
Report of the Trustees for the Year Ended 31 March 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The major risks to which the charity is exposed, as identified by the Trustees, are reviewed regularly and systems and procedures have been established to manage those risks. There are three main areas of risk identified:
Financial:
The financial risk is broadly defined as dependency upon the performance of the Investment Manager and the investment policy.
The Trustees Investment Committee meets at least annually to review both the performance of the Investment Manager and the portfolio and ensures compliance with the Trustee Act 2000 on the investment of charitable funds. The Investment Committee
also receives on request monthly reports from BlackRock Advisors (UK) Ltd.
The Grants committee (a minimum of three members) meets quarterly and authorises Awards to beneficiaries. Cheques in excess of £2500 to be signed by two signatories.
Regulatory:
The Fund Secretary is responsible for ensuring that Charity Commission returns are accurate and made on time, particularly the Annual Report and Accounts.
GDPR:
The Secretary observes legislation and maintains the Funds Privacy Policy. The Trustees require the Fund Secretary to confirm such action.
Strategic
Duty of Care:
The major risk is the legal liability on the Fund in supplying powered vehicles to beneficiaries. The Fund's Secretary ensures that, before any equipment is supplied, beneficiaries are assessed by a qualified individual, such as an occupational therapist and the correct prescription ascertained/tested.
The occupational therapist also assesses the disabled person within the environment where the equipment is to be used and produces a full report and prescription for action.
The Fund's Secretary also ensures that appropriate liability insurance is taken out and recorded. Records are kept and maintained, in order to ensure compliance.
Vicarious Liability:
The Fund employs only one employee (Fund Secretary) and there is little or no face-to- face contact with beneficiaries. Thus the risk is extremely low. Insurance not required.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
262581
Principal address
c/o WHSmith Retail Holdings Limited Greenbridge Road Swindon SN3 3RX
Pages
W H Smith Benevolent Fund
Report of the Trustees for the Year Ended 31 March 2021
Trustees
H E Staunton R J Moorhead SB Tiley W Stroud
COMMITTEE OF MANAGEMENT GRANTS COMMITTEE
Juliette Cavilla Stephen Tiley Mark Woodhead Wendy Stroud
INVESTMENT COMMITTEE
Robert James Moorhead (Chair) Stephen Tiley In attendance as required: Clive Chapman
SECRETARY TO THE FUND
Aimee Butler Greenbridge Road Swindon SN3 3LD
ACCOUNTANT
Clive Chapman Ampney House The Avenue Stanton Fitzwarren Swindon SN6 7SE
Auditors
MHA Monahans Statutory Auditors 38-42 Newport Street Swindon Wiltshire SN1 3DR
Investment manager
BlackRock Advisors (UK) 12 Throgmorton Avenue London EC2N 2DL
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees 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 and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
select suitable accounting policies and then apply them consistently; obseNe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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Report of the Independent Auditors to the Trustees of W H Smith Benevolent Fund
Opinion
We have audited the financial statements of W H Smith Benevolent Fund (the 'charity') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 UK, including the FRC'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.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent othenwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 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:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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 1'3
Report olthe Independent Auditors to the Trustees of w H Smith Benevolent Fund
Our responslbllltles for the audll of the fl nanclal stat@ments
We have been appointed aa auditors under Section 144 ()f the Charities Act 201 1 and report In accordance with the Act and relevant regulations made or having effect thereunder.
Our o.bjec!lves are to obtain reas:onab/e assurance about whether the financial statements as a whale are free from material misstatement, whether due to fraud or error, and to issue a Report of the lndepenqent Auditors that includes our cpinion. Reasonable assurance is a high level of assurance, but is not a guatantee that an audit conducted in ao o rdan.ca 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 ag.gregata, they could reasonably be expected to influence the economic decisions of use.rs taken on the basis of these financial statements,
Irregularities, Jncluding fraud, are instanc.es of non-compliance with laws and regulatfons. We design procedures In line with our responsibilities, ou11ined above, to c;letect material misstatementi, In respect of Irregularities, including traud. The extent to which our procedures are capable of detecting Irregularities, incl�ding fraud is detailed below:
Based on our understanding of the .charity and the grant making activity, we ioenti!ie.d that the principal risks of non-compliance with laws and regulations relatecl to Charity �aw, and We considered the ext,;nt to which non-compliance might have a material effect on the financial statements of the oharlty. We also conslcte·red those laws and tegulatlons that have a direct impact oh the preparation of 1he 1Inancial statements such as the Charities Statement of Recommended Practice,
i We evaluated management's Incentives and pportuhitles for ftc!!Udulent manipu.latlon of the financial statemen� (including the risk of override of controls) anQ determJned that the principal risks were related to re:vMue: recognition and management override. Audit proc.edure:s performed bythe $.udit eng$.gernent r.eam lni::luded:
• dlscussrcns with management, including consJderatio·n of known or suspected instances of non-compliance with laws and regulations and fraud: • understanding and review of managements internal oontrols de�lgned t() µreve:nt and detect irregularities, and fraud;
• review of the minutes of the Trustee; mliletings;
• review of tax compliance;
• designing audit procedures to Incorporate urrpree l ctabllity;
• performing analytical procedures to identify any unusual or unexpected relat).onshlps that might indlc.ate risks ol materJal mlsstatem11ntdue to. fraud;
• review of the �nanclal statements dlsolosures and testing to suppo.rting documentation to al!ses.s compJianm, with relevant Jaws and regulations discussed above; , enquiring af the Trustees and Iblrd-party adVisors about aorual and potential litigation and claims , • testfng·transactions entered Into outside of the normal co.urs.e ofthe charity's l:1usin11t1s; and , identifying and lasting journal entries, In particular arty journal entries with fraud oharacteristios such !!$ Journals with round numb.ers.
Th�re ate inherent limitations in Ifie audit proced'ures deswilled above and the further removed non,cornpliahce with laws and r?gulatio.ns Is from !he events and the transac!ions reflected in JHJJ. linanclal statements, the less/lkely we wovld !lecorne aware of it. Also,. the risk of not detecting a material m.lsstatement du.e to fraud is higher rttan the risk of not dlltectlng one resuftlng from error, as !ritud may Involve deliberate ·concealment i>Y, for e�ample, forgezy .or lnlen.tlonal misrep:re.sentatJon$, or !niO:ugh collusion.
A iurther description of our: resp1rnslbllit!es for the audit ol the finarrclai. statemecnts Is located on the Ftnancl-al Reporting l Council's Website at wwwJro,org,uk/audltorsresp\iosrolllties. Thts description forms part of uur Repcrt of the lrr\iep ncfent Auditors.
e " t.Js. o.f ciur report This report Is made solely to th,e charity'i, trustees, as a body, in 11ccorciance W1th Part 4 of tl:ie. Charities (Accounts ang Reports) Re�Olatlons 2008. Our audit work .has t/ e 0 vQdertaken so that we might. state lo the charity's trustees those matter$ we ara required to state to them in an auditors' report and tor no ottrerpurpos�. To the fullest extent.permitted by law, we do not a c apt or assl;lme responsiblilly ta anyone :olilsr than the charity and the charily'.s trustees .is a boqy, for our au.di! work, for this report, or for the opinions we have formed. MHA Mon M HA-fVL- Statutory Auditors Eligible to act EIS an audi\otln terms of Secllon 1212 ol the Companies Act gooe 38·42 Newport Street Swindon WIitshire SN1 BDFt . .
.� .. . Date: :£� .. 3fk)
W H Smith Benevolent Fund
Statement of Financial Activities for the Year Ended 31 March 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| funds | funds | ||
| Notes | £ | ||
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 500 | ||
| Investment income | 2 | 154,859 | 217,498 |
| Total | 155,359 | 217,498 | |
| EXPENDITURE ON | |||
| Raising funds | 3 | 852 | 30 |
| Charitable activities | |||
| Grantmaking | 414,337 | 212,768 | |
| Total | 415,189 | 212,798 | |
| Net gains/(losses) on investments | 568,990 | (705,617) | |
| NET INCOME/(EXPENDITURE) | 309,160 | (700,917) | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 5,787,097 | 6,488,014 | |
| TOTAL FUNDS CARRIED FORWARD | 6,096,257 | 5,787,097 |
The notes form part of these financial statements
Page 10
W H Smith Benevolent Fund
Balance Sheet 31 March 2021
| Balance Sheet 31 March 2021 |
||||
|---|---|---|---|---|
| FIXED ASSETS Notes 10 Invetments CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS Unrestricted funds: General fund Capital TOTAL FUNDS 11 |
2021 Unrestricted funds 6,029,666 72,803 (6,212) 66,591 6,096,257 6,096,257 66,591 6,029,666 6,096,257 6,096,257 |
2020 Total funds £ 5,735,676 57,726 (6,305) 51,421 5,787,097 5,787,097 51,421 5,735,676 5,787,097 5,787,097 |
||
The financial statements were approved by the Board of Trustees and authorised for issue on ........ 22 July 2021............. .. ....... and were signed on its behalf by:
S B Tiley - Trustee
The notes form part of these financial statements
Page 11
W H Smith Benevolent Fund
Notes to the Financial Statements for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, 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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis, under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound.
There are no significant areas of judgements or key sources of estimation uncertainty.
The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
The charity is an unincorporated trust constituted by a trust deed.
- Financial reporting standard 102 reduced disclosure exemptions
The charity has taken exemption from preparing a cash flow statement under the charities SORP (FRS 102) Update Bulletin 1 issued on 2 February 2016, as the charity constitutes a small charity.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
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 bank.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant.
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
The charity does not make multi-year grants and all grants are unconditional.
Taxation
The charity is exempt from tax on its charitable activities.
continued ...
Page 12
W H Smith Benevolent Fund
Notes to the Financial Statements - continued
for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES· continued
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The charity does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.
Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Cash at bank and in hand
Cash at bank and cash 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.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
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.
2. INVESTMENT INCOME
UK investments
| 2021 £ 154,859 |
2020 £ 217,498 |
|---|---|
continued ...
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W H Smith Benevolent Fund
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
| 3. RAISING FUNDS Investment management costs 2021 £ Portfolio management 852 = 4. CHARITABLE ACTIVITIES COSTS Grant funding of activities Support (see note costs (see 5) note 6) £ £ Grantmaking 389,156 25,181 5. GRANTS PAYABLE 2021 £ Grantmaking 389,156 The total grants paid to individuals during the year was as follows: 2021 £ General Grants 348,016 Income Support/ WNA 25,480 Recuperative Holidays 4,130 Carebreak 11,530 389,156 6. SUPPORT COSTS Governance Management costs £ £ Grantmaking 22,181 3,000 Support costs, included in the above, are as follows: 2021 Grantmaking £ Wages 21,954 Telephone Printing, postage & stationery Expenses 227 Auditors' remuneration 3,000 25,181 |
2020 £ 30 Totals £ 414,337 2020 £ 181,864 2020 £ 135,902 24,327 7,763 13,872 181,864 Totals £ 25,181 2020 Total activities £ 23,509 1 , 114 183 3,344 2,754 30,904 |
|---|---|
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W H Smith Benevolent Fund
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the[y] ear ended 31 March 2021 nor for the year ended 31 March 2020.
Trustees'expenses
There were no trustees' ex[p] enses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.
8. STAFF COSTS
| Wages and salaries | 2021 £ 21,954 |
2020 £ 23,509 |
|---|---|---|
Employees consist of a[g] rants administrator[(] em[p] loyed by WH Smith and recharged to the Charity[)] , and 1 self em[p] lo[y] ed[p] ersons. None of the staff earned more than £60,000.
The ke[y ] mana[g] ement personnel of the charit[y ] comprise the trustees. The total em[p] loyee benefits of the key mana[g] ement[p] ersonnel of the charity were nil.
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Investment income EXPENDITURE ON Raising funds Charitable activities Grantmaking Total Netgains/(losses)on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds 217,498 30 212,768 212,798 (705,617) (700,917) 6,488,014 5,787,097 |
|---|---|
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W H Smith Benevolent Fund
Notes to the Financial Statements • continued for the Year Ended 31 March 2021
10. FIXED ASSET INVESTMENTS
| MARKET VALUE At 1 April 2020 Disposals Realised(losses)/gains Net unrealised(losses)/gains At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 There were no investment assets outside the UK. Cost or valuation at 31 March 2021 is represented by: Valuation in 2021 Valuation in 2020 and prior Cost |
Listed investments £ 5,735,676 (275,000) 40,131 528,859 6,029,666 6,029,666 5,735,676 Listed investments £ 568,990 422,683 5,037,993 6,029,666 |
|---|---|
All investments are carried at their fair value. Investment in e[q] uities and fixed interest securities are all traded in quoted[p] ublic markets. All investments have been valued by Blackrock Advisors[(] UK[) ] Limited and are based on the Bid[p] rice as at the close of business on the valuation date. 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 on[g] oing financial sustainability of the charity is considered in the financial review and investment polic[y ] 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. The charity is reliant on dividend yield in[p] art to finance its work.
Liquidity risk is antici[p] ated to be low as all assets are traded. The charity's investments are traded in markets with good li[q] uidity and high trading volumes. The charit[y ] has no investment holdings in markets sub[j] ect to exchange controls or trading restrictions,
The charity manages these investment risks by retaining ex[p] ert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their lon[g] er term yield total return and historic studies of[q] uoted financial.
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W H Smith Benevolent Fund
Notes to the Financial Statements• continued for the Year Ended 31 March 2021
11. MOVEMENT IN FUNDS
| At 1.4.20 £ Unrestricted funds General fund 51,421 Capital 5,735,676 5,787,097 TOTAL FUNDS 5,787,097 Net movement in funds £ (257,916) 567,076 309,160 309,160 |
Transfers between funds £ 273,086 (273,086) At 31.3.21 £ 66,591 6,029,666 6,096,257 6,096,257 |
|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Capital TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Capital TOTAL FUNDS |
Incoming resources £ 155,359 155,359 155,359 At1.4.19 £ 147,402 6,340,612 6,488,014 6,488,014 |
Resources expended £ (415,189) (415,189) (415,189) Net movement in funds £ 4,700 (705,617) (700,917) (700,917) |
Gains and losses £ 1,914 567,076 568,990 568,990 Transfers between funds £ (100,681) 100,681 |
Movement in funds £ (257,916) 567,076 309,160 309,160 At 31.3.20 £ 51,421 5,735,676 5,787,097 5,787,097 |
|
|---|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 217,498 | (212,798) | 4,700 | |
| Capital | (705,617) | (705,617) | ||
| 217,498 | (212,798) | (705,617) | (700,917) | |
| TOTAL FUNDS | 217,498 | (212,798) | (705,617) | (700,917) |
The capital fund represents the market value of the investments plus cash held on investment.
Transfers between funds
The transfer between funds is made to reflect the net movement in the investment portfolio.
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W H Smith Benevolent Fund
Notes to the Financial Statements • continued for the Vear Ended 31 March 2021
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2021 .
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