Registered charlty number 266164 THE UNDERWOOD TRUST Flnancial Statements for the year ended S April 2024
THE UNDERWOOD TRUST Contents Pa8es Trustees, annual report Auditorfs report 9-12 Stalement of financial activities 13-14 Balance sheet 15 Statement of cash flows 16 Notes to the financial statements 17-24
THE UNDERWOOD TRUST Trustees, annual report The trustees have pleasure In presentlng their report together with the financial statements for the year ended 5 Aprll 2024. Spècial note The Trust would like to fondly remember our Chairman, Robin aark who Sadly passed away on 24 January 2024. Robin was a passionate and philanthropic man who was oppointed a trustee on 22 November 1977 and then became Chairman in 1984. During his h)nE and successful tenure, the Trust awarded grants and donations of more than £46m whlch have posltively impacted the environment, indivlduals as well as many causes and campaigns important to him. Robin was recognised for services to charlty wf(h an OBE in 2014. 50th Anniversary l July 2023 marked the 50 Anniversary of The Undenvood TrLFSt foundation. Thls was proudly celebrated with a lunch recognising its many achievements. It was noted that as of 5 April 2023, the Trust had given £46.2m to charltable causes since its creation on l July 1973. Objectives and activities for the public benefit The alms of the Trust are to fund a wide range of aclNities that will p05ttively impact individuals and the environment. We award a number of grant5 per annum to organisations that both share these aspirations and have the ability to deliver on their programmes. For disclosure purposes grants are categorised under the follcwing headings. Medlcine and Health Education and The Arts Social Welfare The Environment and Wlldlife The trustees conflrm that they have referred to the Charlty Commission's guidance on publlc benefft when reviewin8 the Trust'5 aiffls and objertives, in planning future activtlies, and setting grant making policy. M05t of the grants are made to reglstered charitie5 and SQ the trustees are confident they will further charitable purpose to the publK benefit. On the few occasions where grants are made to non- registered charitable organisations the trustees considercarefully how the funds will be used and make those grants with conditions to ensure they are spent appropriately. The trustees seek feedback on the actual use of the grants given, on how the grant was spent and achievements made. This approach is considered sufficient for monitoring the quality of the grants made. ID any grant making there is always a necessary degree of trust that the applicatlon is honest and that the recipiènt will use the funds wisety. A personal knowledge of the recipient of ihe larger grants Is therefore a key part of the Trust's approach to 8rant making. The trustees have decided to gNe annual support to a number of charities and proactively seek out certain projects. Thls restrirts the ndS available for general applications and as such the Trust is closed to unsolicited applications.
THE UNDERWOOD TRUST Trustees, annual report (continued) Grant making policy and the •ppli¢ation process The Trust is granted wlde powers to distribute funds for tharitable purposes by the trust deed. having regard to any directions or wishes expressed by the founders in their lrfetimes. The Irustees have the power to make grants from the expendable endowment which was used to make grants during ihe year. The application PreSS is designed to be as easy as possible whilst still drawing out the key information needed for a declslon, includln8 ensuring there 15 a clear public benefit. The Trust has a website containing general Infomiation about the Trust. together with details o* our £rant eligibility guidelines and an applScation form. All applicants must complete this form in order fortheir request to be further tonsidered. The webslte addres5 is: www.IheunderwoDdtrust.or All applications are reviewed by the trust manager on the basis of the p)Iky sel by the trustees. Final payment decisions are taken by the trustees. The Trust will Benerally not fvnd: Indlvlduals directlv Political activities Commercial ventures or publlcatlons The purchase of vehicles including mlnibuses Overseas travel, holidays, and expeditions Achievements and performance Grant expenditure Grant expendlture during the year was £1.686,258 and comprlsed a lolal of 28 grants or donations made to 25 beneficiaries. A list by recipient of the grant expenditure In the yearls given in note 3. Thls compares with 37 grants or donations to 30 beneficiaries totallin8 £1.524.658 made during the year ended 5 Aprll 2023. The following summary glves a flavour of the types of projects funded in the year. Medicine and Health A final grant of £51,258 was made to Bristol Chihjren's Hospital Icardlac 30 Bioprinting Unitl concluding a unique prolect to Improve outcomes for children with congenltal heart disease ICHDI in Bristol and beyond. The support provided by the Trust since 2018 has allowed the unit to develop into a strong and influential research cenlre enabling improvements and care forchildren wlth CHD by using 3D and virtual reality modelling. The unit now has the foundations to build on this knowledge and research and move fonvard to the next stage. The Trust Is very proud to have been on this journey wlth everyone at the unit and will very much look foNard to hearing aboLrt ihelr future achievements. During the year grants of £45,000 were made to STAMMA a charity whose mlssion is to stand up for and empowerthosewho stammer and challenge discrimination. ThefirstBrant of £20.000 has enabled
THE UNDERWOOD TRUST Trustees, annual report (continued) STAMMA lo launch an Outreach and Training programme which will focus on delivering trainlng to employers across a range of sectors, by treating written guides and trainlng videos, running tailored workshops, and delivering conferences across different industries. The second 8rant of £25.OOOfunded core costs at the charity. Five other grants totalllng £125,000 were made. All of these were to charities where the Trust has glven long temi support. Education and the Arts A grant of £25.OW was made to Stage One which through their butsary scheme offers educational, financial, and mentoring development to new pmducers. This is the 17, consecutive yearthe Trust has supported the scheme. Four other grants were made lotalling £90,01]O. All of these were to charities where the Trust ha5 gbven long tem) support. Social Welfare DurinB the year £50.000 of donatlOll5 were made to the British Red Cross and comprised of two separate donations. A donation of £25.000 was made to the Libyan Floods Appeal and a donation of £25,¢J)O was made to the Moro¢can Earthquake Appeal. Thls fundlng helped those most affected by these events by allowin8 staff arbd volunteers to provide vital medical services, psych050cial support, water, sanitation and hYgne. livelihood assistance, housln& and sheer. Durlng the year grants of £50,000 were made to Windmill Hill City Fam) whose purpose 15 to improve the INe5 of local people through its service5 and facilities. It runs activit5 for people wlth health and social care needs, 8ives opportunities for personal developmentthrough courses and volunteering and hosts other organisations with similar alms and services. Two separate grants of £25.01)O were made to both Windmill Hlll City Farm and Hartcllffe cfcy Fanm Ithe second farml allowing the key staff to keep the facilities open to the public and contributing to the core costs of running these spa5,. enabling the educational. emiironmentèl. an(1 soclal welfare elements to be provlded. Seven other grants totalllng £175,OCQ We made. All of these were to charities where the Trust has given long term support. The Environment and Wildlife A further grant of £1,000,000 was m3(le to Greenpeace to help affirm the historic victory on 4 March 2023 where a Global Oceans Treaty was agreed at the United Nations. Ahhough. a legal framework n¢)w extts. this is meaningless without implementation. This funding will allow Greenpeace to keep the pressure up, to ensure governments follow through and create ocean sanctuarie5 across of the world's oceans by 2030. For thi5 to happen a minimum of sixty countries must ratfy the treaty before it tan become law. Three other grants were made totallin8 £75,CQO. All of these were to charfties where the Trust has given k)n8 term 5UPPOrt.
THE UNDERWOOD TRUST Trustees, annual report f¢ontinuedJ Financial review The total incoming resources for the year were £1.400,9c(112023.. £791,566)- The lar8est source of Income are the dividends received frorn Taylor Clark Limited of £786,169 f2023.' £234,364). Followed by dlstributSons of £609,457 (2023.. £556.335J received from the Trust's investment in twelve listed equity funds and fbnally Interest on deposits earned £5,274 (2023.. £867J. Investment 8alns in the year on the listed investments were £871,863 f2023.' decreased£880,277) Investment Strate and risk The investment objective 15 to provide a reasonable level of Income together with caprtal Erowth, sufficiently proterting the funds against inflation,. enabling the Trust to meet it5 short-term grant maklng commitments. This will be achieved by investing primarily In UK Equlty funds. However, these fund5 may a150 invest in other asset Classes and instruments. Currentty the portfolio comprises twefve equr¢y funds. Eleven of these investments are managed by Rathbones Wealth & Investment and one by Troy Asset Management Ltd. Investment performance is regularly reviewed, and an aciive relationship maintained with the fund manager5 to mrtigate Investment rlsk. The are many risks that may affect the lon8-term 5U5tsinability of the investments includin8 inflation, interest rates, and political and economic uncertainty. The Trust deed grants the trustees wide powers of investment allowing assets to be invested in a variety of asset classes to alleviate agalnst these risk factors. Asset classes could Include cash, bonds, equities, hedge fund5, Structured products, private equity. commodities, and any other asset that is deemed suitable foi the Trust. The total return on the investments Is £7.272.051 equlvalent to a compound annual return of 3.9%. which exceeds the target return of 3.0%. In addition, the Trust will continue to hold the Taylor Clark Ordinary 'B' shares gifted a5 part of Mr C Clarys estate on 4 May 2021 as these provide a substantlal and sustainable dividend income stream. Hlstoricalty. The UndeTh¥ood Trust was originally almost entirely endowed by gifts and bequests of Taylor Clark Llmlted shares however, It should be noted that as an unquoted company there is no open market for these Shares. Currently there is no specffic social, environmental, or ethical investment poliry regarding the investmeftts. Reserves pollcy The investment5 of the Trust have been treated as an expendable endowment, ?5 under theTrust deed the trustees have the power to distribute these funds. The resources expended in the year are more than incomlng resources by £327,320 f2023.. deficit £773,817J. The trustees have decided to transfer funds from the expendable endowment to cover the deficit in the unrestricted income fund. The trustees consider the balance of funds should still be deslgnated as an expendable endowment. At the year end these reserves were £34.420,12912023.. £33,753,384}.
THE UNDERWOOD TRUST Trustees, annual report (continued) At the year end £nil {2023.' £NII) of unrestrlcted funds were retained. In the event of there belng a surplu5 of unrestricted funds the trustees aim to have distrlbuted all the available funds from the preceding year within six months of the year end and distrSbute a substantlal amount of the current yearfs income within the year. Future plans The Irustees, key objective is to make grants to support projects within the four priorlty areas, and to contlnue funding. where appropriate, many of the organisations where the a already established long tem lationshIps. Structure, governance, and management The Underwood Trust is an unincorporated trust, founded under a Deed of Trust dated l July 1973, and had its registration with The Charity Commission for England and Wales. number 266164. accepted on 31 August 1973. The founder5 of the Trust were Robert Clark and Mary B L Clark. The power of appointing new or addltional trustees was vested in the founders during their joint lives and in the suNivor during their lrfe. Thereafter, the statutory power of appolnting new trustee5 applies. New trustees are found from the contacts and networks of existing trustees. When a new trustee loins the board, they are provided with a pèck of information Including a copy of the trust deed. the most recent accounts, mir)utes of recent trustees, meetings, and are made aware of the information and support for trustees avallable on the Charity Commlsslon webslle. The trustees are highly experienced Indlviduals and have a good understaNlin8 of what 15 invofved in being a trustee of a charity. Where appropriate, the Trust supports the tralning of trustee5 including, for example, attendance at seminars organlsed by the Trust's professional advisers and by the Association of Charrtable Foundations and the Charity Finance Group. The trustees are required to meet at least twlce a year. at these meetlngs the trustees agree the broad strategy for the Trust, including consideration of grant makin8, investment, reserves, and risk management policies. The day-to-day administration is delegated to the trust manager who has re8ular contact wrih the Irustees following her initial processing and appraisal of appllcations. The names of the trustees at the date of this report and throughout the year are shown on page 7. The trustees have considered the major risks faced by the Trust and have reviewed those risks and established systems and procedures to manage and mitigate them. The day-to-day admlnlstratlon of the Trust is managed by the staff of Taylor Clark Limited, under an agreement with the Charity Commlssion. The fee charged for this Is shown in note 5. The trustees conslder th55 Is the most cost-effeciive way of runninB the Trust, as to set up an independent office and staff would Incur far higher cost5. All trustees give their time freely and no trustee remuneratlon was paid In the year. Detalls of trustee expenses and related party transactions are disclosed in note 5 and 10 respectely.
THE UNDERWOOD TRUST Trustees. annual report {tontinuedJ Reference and administrative information TrustÈes Robin Clark OBE FCA Hon FRCSLT- Chairman (deceosed24 Jonuory2024J Richard Benni50n FCA- Chalrman Briony Wilson Registered office Ground Floor 20 York Street London Wiu 6PU Registered charity number 266164 Trust manager Michelejudge ACMA Bankers Virgin Money 154- 158 Kensington High St. London W8 7RL Auditor David Owen & Co 17 The Market Place, Devize5, Wiltshire SNIO IHT Investment managers Troy Asset Management Ltd 33 Davies Street, London WIK 4BP Rathbone5 Wealth & Investment Management 30 Gresham Stet. London EC2V 7QN
THE UNDERWOOD TRU5r Trustees, annual report Icontinued) Trustees. responsibilitie5 in relation t¢ the financial statements The trustees are responsible for preparlng the Trustee5' Report and the financial statements in accor(lance with applicable law and regulations. The law applicable to charities In England and Wales requires the trustees to ppare financial Statements for each financial year in accordance with United Kingdom Generalfy Accepted Accountin8 Pra¢tice (United Kingdom Accounting Standards and applicable regulations). Under that law the trustees must not approve the financial statements unless they are satisfied that they glve a true and fairview of the state of affair5 of the charity and of the incoming resources and application of resources of the charity for that perlod. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them con51Stently: obseNe the methods and principles in the Charities SORP: make judgments and accountlng estlmates that are reasonable and prudent: state whether applicable accounting standard5 have been followed. subjert to any rnaterial departure5 disclosed and explained in the financial statements; ènd prepare the flnancial statements on the 8oin8 concern basis unless It is inappropriate to presume that the charity wlll continue in business. The trustee5 are responsible for keepln8 adequate accountln8 records which are sufficientto show and explain the ¢harit(s transactions and disclose wrth reasonable accuracy at any time the financial P051tion of the charf(y and enable them to ensure that the financial Statements comply with the Charities Act 2011, the Charrtles IAccounts and Reports) Regulations 2008 and the provlsions of the trust deed. They are 0150 responsible for safe8uardin8 the assets of the charity and hence for taking reasonable steps for the prevention and detettion of fraud and other Irregularltles. Auditor A re501ution to re-appolnt David Owen & Co a5 the Trust's auditor will be proposed at the next trustees meeting. Approved by the trustees and signed on their behalf R Bennison Trustee 17 Juty 2024
THE UNDERWOOD TRUST Independent audilorfs report to the trustees of The UndÈNood Trust Opinion We have oudited the financial statements of The Underwood Trust (the 'charit¢l forthe year ended 5 April 2024 which comprise the statement of flnancial activitles. the balance sheet, the 51atement of Cash flows and the notes to the financial statements, including a summary of slgnSficant accountin8 policies. The finar)cial pOrtIng framework that has been applled in their preparation is applicable law and United Kin8dom Actounting Standards. including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Attepted Accounting Practkel- In our opinion, the financial statements: give a true and fairview of the state of the charlvs affalrs as of 5 April 2024 and of its incoming resources and appllcation of resources, for the yearthen ended,. have been properly prepared In accordance with United Klngdom Generally Accepted Accountin8 Practice,. and have been prepared in accordance wlth the reouirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance wlth International Standards on Auditlng IUKI IISAS {UKII and applicablè law. Our responsibilities under those standard5 are further described in the Auditor's responsibilities forthe 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 audtt of the financial statements in the UK, including the FRC'S Ethlcal Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffKient and appropriate to provide a basis for our opinion. Conclusions relatinE to going ¢ontÈrn In auditing the financial statements, we have concluded that the tru5tees' use of the going concern ba515 of accounting In the preparation of the financial stètements is appropriate. Based on the work we have performed, we have not identrfied any mèterial uncertainties relating to events or condltlons thal, indlvidually or collectrveW. rnay cast 518nlficant doubt on the charlS ability to continue as a going CL)ncern for a period of at least tWee months from when the flnancial ststements are authori5ed for issue. Our re5POf15ibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Information The other Infomiation comprise5 the informatÉon included in the annual report, other than the financial Statements and our auditorfs report thereon. The trustees are sponsible for the other information contained withln the annual report. Our opinion on the financlal 5tatemerbts does not coverthe other information and we do not express any fomi of assurance Conclusion thereon. Our re5pon5ibiltly is to read the other infomiation and, in doing so, consider whether the other information is materially inconslstent wlth the financial statements oi our knowledge obtained in the audit or otherwise appears to be matèrially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statement5 or a materlal misstatementof the other infom)ation. If, based on the work we have performed, we conclude that there 15 a material misstatement of this other information,. we are required to report that fact.
THE UNDERWOOD TRusr We have nothin8 to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the followir)g matters in relatlon to whrth the Charlties IAccounts and Reports) Regulations 28 require us to report to you if, in our opinion.. the information given in the Trustees, Annual Report Is inconsistent in any material respect with the financial statements: or sufficient accovntlng record5 have not been kept- or the finantial statements are not in agreement with the accountlng records- or we have not receNed all the Infomiation and explanations we require for our audit. Respon5ibilitie5 of trustees As explained more fully in the statement of truslees, responsibilities lon page 91, the trustees are responsible for the preparation of the firbancial statements and for bein8 satisfied that they give a true and fair view, and for such Internal control as the trustees determine is nece55ary to enable the preparation of financial statements that are fe from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charis ability to contSnue as a goin8 concern, disclosin& as applicable, matters related to going concern and usin8 the going concern basls of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so. Auditor'5 responsibilities for the audit of the flnanclal statements We have been appointed as audr(ors under section 144 of the Charities Act 2011 and report in actordance wlth the Art and relevant regulations made or having effèct thereunder. Our objettives are to obtain reasonable assurance about whether the financlal stalements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a hi8h level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exlsls. Misstatements can arise from fraud orerrorand are consIded 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 wlth our sponSibl11t1es, outlirbed above, to detett material mi55tatements in respect of irregularitles, Sncludlng fraud. The extent to which our procedures are capable of detectin8 Irregularlties, including fraud, is detailed below. A further description of our responsibilitie5 for the audit of the financial statements Is located on the Flnancial ReportinB Counclfs website at.. http://www.frc.org.uVauditorsresponsibilities. This desttiption fom)s part of our auditor's port. Extent to which the audit was considered Capable of detecting irregularitie5, in<luding fraud We identify and assess the risk5 of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaSning audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and addressing risks of material misstatement In respect of irregularities, intluding fraud and non-compliance with laws and regulations, our procedures included the following: 10
THE UNDERWOOD TRUST We obtained an understanding of laws and regulatk)ns that affect the charity, focvsing on those that had a direct effect on the financial statements or that ha(1 a fundamental effect on rls operations. Key laws and re8ulations that we identified included the Charlties Act 2011 and appllcable accountlng standards. We enquired of the trustees and reviewed trustee meetinE minutes for evidence of non- compliance wf(h relevant laws and regulatlons. We also reviewed contro15 the trustees have in place to ensure compllance. We gained an understanding of the controls that the trustees have in plate to prevent and detect fraud. We enquired of the trustees about any incidences of fraud that had taken place during the accountlng period. The risk of fraud and non-compliance with laws an(1 regulatiorbs and fraud was discussed wlthln the audlt team and tests were planned and performed to address these risks. We identrfied the potential for frau(l in the followlnE area: misappropriation of cash and other assets. We crltlcally reviewed judgements and provisions included wlthln ihe financial statements and examined the associated cut-off issues. We reviewed finantial statements disclosures and tested to supportin8 documentation to assess compliance with relevant laws and regulations discussed al)ove. We erwuired of the trustees about actual and potential litigatlon and claims. We obtalned independent confirrnatlons from your bank regardlng balance5 at the year-end in addition to any outstan(Iln8 charges. We perfomied analytical procedure5 to identify any unusual or unexperted relationships that might indicate risks of material misstatement due to fraud. In addresslng the risk of fraud due to management override of internal controls we tested the appropriatenes5 of journal entrie5 and assessed whether the judgements made In making accounting estlmates were indicative of a potential bias. Dije to the Inherent limitation5 of an audit, there Is an unavoldable risk that we may not have deterted some material mlsstatement5 in the finantial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detectlon of irregularitie5. as these may involve collusion, for8eryi intentlonal omission5, misrepresentation5. orthe override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance wlth laws and regulations. Other matter Your attentlon Is drawn to the fart that the charity has prepared financial statement5 in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practlce applitable to charities preparlnB their financial statements in accordan with the Financial Reporting Standard appllcable In the UK and Republic of Ireland IFRS 1021 in preference to the Accounting and Reportlng by Charities.. Statement of Recommended Practice issued on l April 2(KJ5 which is referred to in the extant re8ulations but has now been wfthdrawn.
THE UNDERWOOD TRUST This has been done in order fortThe financlal statemen15 to provide a true and fairview in accordance with current Generally Accepted Accounting Prartice. Use of our report This report is made solelyto the charitys trustees, as a body, in accordance with part 4 of the Charities IAccounts and Reports) Regulations 2W8. Our audit work has been undertaken so that we might state to the charty's trustees those rnatte we are required to state to them in an auditor5, report and for no other purpose. To the fullest extent permitted by law, we do not actept or assume SPOnSibl11tY to anyone other than the £hartly and the charitls trustees as a body, for our audit work, for this rep)rt, or for the opinions we have fomied. David Owen & Co Chartered Accountants Statutory Auditor 17 The Market Place Devizes Wittshire SNIO IHT David Owen & Co 15 eligible to act as an auditor in terms of sertion 1212 of the Companies Act 2006. 17 July 2024 12
THE UNDERWOOD TRUST Statement of financial activities Including income and expenditure account For the year ending S April 2024 Unrestricted Expendable Income Endowment Fund Fund 2024 Total Fund5 2023 Total Funds Notes Income Legacy income Investment income 1.400,9CKI 1.4(Kl,900 791.566 T81 income 1.400. 1,4(M),900 791,566 Expendltufe Rtsisingfunds.. Investment management cost5 603 603 600 CharAtGble octlvitles.. Grant expenditure Grarbt related support costs Governance costs 1,686,258 1,686,258 1.524.658 25,777 25.777 25.221 15.582 15,582 14.904 Cost of grant maklng 1,727,617 1,727,617 1,564.783 Totsl expendltyre 1.728,220 1,728,220 1.565,383 Net income I lexpenditurel Transfer between fund5 1327.3201 327,320 1327,320) 1773,8171 1327,3201 1327,3201 1327.3201 1773,8171 Net galns I (losses) on investhients Unrealised Realised 871,863 122,202 871.863 122,202 994.065 1880,2771 69,852 li 994,065 1810.4251 Net movemert in funds 666,745 666,745 11,$84,2421 Reconciliation of fvnds Total funds brought forward 33,753.384 33,753,384 35.337.626 ral funds carried forward 34,420.129 34.420.129 33,753,384 13
THE UNDERWOOD TRUSr Statemènt of financial activities Icontinuedl Including income and expenditure a¢counl For the year ending S April 2024 Comparallve year inforrnatlon Year ended 5 Aprll 2023 Unrestrided Expendable Income Endowment Fund Fund 2023 Totsl Funds Notes Income Legacy income Investment income 791.566 79166 Total Income 791,566 79166 Expenditure Roisingfund5.' Investment management costs Charitable Jrtivitles.. Grant expenditure Grant related support costs Governance costs 1,524,658 25,221 14.904 1.524,658 25,221 14,904 Cost of grant makinB 1,564,783 1.564,783 Total exPendIre 1,565.383 1,565,383 Net income I lexpenditurel Transfer between lunds 1773,8171 773,817 {773,8171 1773,8171 1773,8171 (773.8171 Net 8alns / (losses) on investments Unrealised Realised 1880,2771 1880,2771 69.852 69.852 li 1810,4251 1810A251 Net movement In funds 11.584,2421 11584.2421 Reconciliation of funds Total funds brought forward 35,337,626 35,337.626 Total funds carAed forward 33,753,384 33,753,384 14
THE UNDERWOOD TRusr Balance sheet As of 5 April 2024 Unrestricted Income Fund Expendable Endowment Fund 2024 Total Funds 2023 Total Funds Notes Fixed assets Vnlisted investments Listed investments 16,316.655 17.681,218 16,316fi55 17,681218 16,316,655 16,838,357 T*)tsl fixed assets 33,997,873 33,997,873 33,155.012 Current assets Debtors Cash 322 6,697 322 1,178,953 14 604,896 1,172,256 Total ¢urrefit assets 7,019 1,172,256 1,179.275 604,910 Liabilities Creditors: amounts fallin8 due within one year {7.0191 1750.C4)01 (757,0191 16,5381 Net current assets 422,256 422,256 598.372 Total assets less current Ilabilltles 34,420.129 34,420,129 33,753,384 Creditors: amounts fallin8 due after one year Net assets 34,420,129 34.420,129 33,753,384 The fid$ ofthe harity Expendable endowment fund Unrestricted income fund 34,420,129 34,420,129 33.753,384 Total charity funds 34,420,129 34.420,129 33,753,384 The notes at pages 17 to 24 form part of these accounts. pproved by the trustees on 17 July 2024 and slgned on their behalf by: R Bennison Trustee
THE UNDERWOOD TRusr Statement of cash flows As of 5 April 2024 2024 Total Funds 2023 Total Funds Notes Cash flows from opeTatin8 a¢tlvltle$ Net cush used in operoting ortivltles li (978,0461 11,564,538) Cash flows from Investin8 artivities Interest and divldends Proceeds from sale of investments Equalisation on investments Purchase of investments L400,91JO 151,857 791,566 3,045,457 {6541 13,029.1451 Net Q75h oerteroted by investlng artlvltle5 1,552,103 807.878 Cash ftows from finan¢ln8 actlvlties Net cosh provided bylinancing octivities Change in cash and cash equlvalents In the year 574,057 1756,6601 Cash and cash equivalents brought foNard 604.896 1,361,556 Cash and cash equivalents carrled fon•Jard 1.178,953 604,896 l6
THE UNDERWOOD TRU5r Notes to the financial statements For the year ended 5 April 2024 Accountlng pollcles Charity information The Underwood trust is an unincorporated trust, founde(J under a DÈÈd of Trust dated l July 1973, and had its reglstration with The Charlty Commisston for England and Wales, number 266164, accepted on 31 August 1973. Basis of preparation and going concern The financial statements have been prepared under the hLstorical cost conventknn, as modified by the revaluation of fixed asset investments, and in accordance with the Charf(ies Act 2011 and 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) leffective l January 20191" The financlal statements have departed from the Charlties (Accounts and Reportsl Regulations 2LK18 only to the extent required to provide a trije and fair view. This departure has Involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Prnctice which is referred to In the Regulations. but which has since been withdrawn. The trust constltutes a publlc benefit entity as defined by FRS 102. At the tirne of approving the account5. the trustees have a reasonable expertation that the charity has adequate resources to continue in operational exlstence for the foreseeable future. Thu5, the trustees continue to adopt the going concern basis of accounting in preparlng the attounts. With respertto the next reportirg period, the most5ignlficant areas o* uncertalntythat affect the carrying value of assets held by the Trust are the level of investment rèturn and the performance of Investment markets (see the investment strategy and risk seLlion in the trustees, annual report for more information). Fund (Ounting The Unrestrlcted Income Fund can be spent on any purpose within the Trust's objectives at the discretion of the trustees. The Expendable Endowment Fund is prlmarfly for Income generatlon bul is expendable at the trustees, dlscretion. During the year £327,32012023.- £773.8171 was expended in making grdnts and or coverlngthe deficlt which had arisen on the unrestricted fund. Income recognition All income is recognlsed once the charity has entitlement to the income, it Is probable that the income will be reteived, and the amount of income receivable can be measured reliablv. Dlvidend5 from investments are 0£ised at their record date. Legacy Bifts are recognlsed on a case-by-case basis followin8 the granting of probate when the admini5trator/executorfor the estate has communicated in writing the amount for 17
THE UNDERWOOD TRUST Notes to the financial statements For the year ended 5 Aprll 2024 dlstribulion after taking into consideration of any liabilities and settlement date and, if there are any condition5 attached to the legacy, these are either within the control of the charity or have been mel. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised slock exchange, recognitiOTI 15 subjeci to the value of the gift being reliably measurable with a degree of sufficient accuracy and the title to the asset having been transferred to the charity. Expenditure re¢o8nltion Llabilities are recognised a5 expenditure as soon as there is a legal or construrtive obligation commltting the charity to that expenditure, it is probable ihat settlement will be reqvlred. and the amount of the obligatlon can be measured reliably. All expendfture is accounted for on an accruals basis inclusive of any VAT which cannot be recovered. All expenses including 5UPPOrt C05t5 and governance costs are allocated or apportioned to the appllcable expenditijre headings. Support costs are allocated to the artivities elther by dlrect attribution or an estimate of relative time involved. The rnajority of costs SUPPDrt the grant making actNlty and are so allocated. Governance costs comprise all costs Involved in the publlc accountability of the Charity and Its compliance with regulation and good prartice. These eosts include costs relating to statutory audlt. and legal fees togdher with an allocation of support costs. The allocation of gc>vernance and support costs is analysed in note 5. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. In the rase of an unconditional grant offer this is accrued once the recipient has been notified of the Brant award. The notifKation gNes the reciplent a reasonable expectation that they wlll receive the one-year or multi-year8rant. Grant awards that aro subject to the recipient fulfilling performance conditions are only atcrued when the recipient has been notified of the grant and any remainin8 unfulfilled condition attaching to that grant is outslde of the control of the Trust. The costs of raising funds consist of investment management fees. Fixed a55et investments Quoted Investments are initially measured at their transartion value and 5ub5equently measured at thelr falr value a5 at the balance sheet date using the closing quoted market prlce. All gain5 and 105ses, both realised and unreali5ed. are taken to the Statement of FlnancSal Activtties as they arise. Unlisted investments are initlally measured at cost and subsequentty measured at C05t I any accumulated impairment1055es. The IntMentS are assessed for Impalrment at each reporting date and any impalrment losses or reversals of impairment losses are recognised immediately in net Incomellexpenditurel for the year.
ThE UNDERWOOD TRUST Notes to the financial statements For the year ended 5 Aprll 2024 Debtors and creditors Short term debtors are measured at Iran5artion price, less any impairment. Short term treditors are measured at the transactlon prlce, net of transartlon costs. Subsequent to initlal recognition they are measured at amortised cost using the effective interest method, less any impairnient losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example rf payment deterd beyond nomial buslness terms, then it is measured at the present value of future payments discounted at a market rate of Interest for a slmilar debt instrument. L7 Contingent liabilities A contin8ent liabiltly is identified and disclosed for those grants r@sU1ng from: a posslble obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly withln the trustees, control,. or a present obligation following a grant offer where settlement Is either not eonsidered probable,. or the amount has not been communlcated in the grant offer and that amount cannot be estimated reliably Taxation The Trust is a reglstered charlty and accordin8ly is exempt from taxatlon on its income and gains where they are applied for charitable purposes. Accounting e5timate5 and judgements In the application of the Trust's accountlng pollcies, the trustees are requlred to make judgements, estlmates and assumption5 about the carrying amount of asset5 and liabilities that are nol readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estlmates and underlyirsg assumptions are reviewed on an ongolnB basis. Revisions to accounting estimates are recogni5ed In the period in which the estimate is revised where the revision affecls only that period. or in the period of the revision and future periods where the reVisn affect5 bh current and future periods. Key r(e5 of estimati{ uncertainty The estlmates and assumptions which have a s¢ni*icant risk of causing a material adjustment to the carryin8 amount of assets are as follows: Impairment of unllsted investments The trustees, estlmate of impairment is based upon updated share valuation calculations, using reports provided by Taylor Clark Limited, and the trustees, own judgement. 19
THE UNDERWOOD TRUST Notes lo the financial statements For the year ended 5 April 2024 Incoming resources 2024 2023 Investment income Unlisted investments IUKI Llsted investments Other interest 786,169 609,457 5274 234,364 556,335 867 1.400,900 791,566 Grant expenditure 2024 2023 Grants payable brought forward Grants paid during the year Grants payable carried forward 936,258 750,OLKI 1,524.658 Grant expendlture during the year 1.686.258 1,524,658 Medicine and Health The Grand Appeal- Brlstol Children's Hospital STAMMA (The British Stammering Associatronl Dorothy House Hospite Living Palntings Trust Julia's House Hospice Wiltshire Air Ambulance Animal Free Research UK 51.2S8 45,1)00 25.000 25.000 25,000 25.000 25.000 221.258 548,158 Education and The Arts Farms for City Children Stage One Music for Youth National Opera Studio Plmlico Opera 25,000 25.000 25,000 25,000 15,000 iis,000 136,500 20
THE UNDERWOOD TRU5r Notes to the financial statements For the year ended 5 April 2024 Grant expenditure Icontinuedj 2024 2023 Soclal Welfare The Brltish Red Cross Windmill Hill City Farm Ebony Horse Club Switch180 (Snow Camp) Community First (Youth Action Wiltshirel w1$hI Community Foundation NSPCC Swindon Women's Aid James, Place 50,000 50.000 25.000 25,(M*) 25,C 25,(M)O 25,1M)O 25.(X)O 25.000 275,IXKI 440,000 The Environment and Wildlife Greenpeace The Brooke Wllts & Berks Canal Trust Wiltshire Wlldllfe Trust I,oDo.000 25.0(M) 25,0(X) 25,(KlO 1,075,IMIO 400,0 Total grant$ expendlture 1,686,258 1,524.658 Grant tommitments In addition to the grant expenditure noted above, the trustees at the last year end had authorised certain Brants which were subjèct to them being satisfied that the recipient had fultilled certain condltions. The total amount authorised but not accrued as expenditure at 5 April 2024 was £1,200,000 (2023.. £1,200,(WJ. The commitment of £1,51)O,OC(l over 5 years was communlcated io 8ri5tol Speech and Language Therapy Trust during the yearto S April 2022 and commenced In Ortober 2022. 21
THE UNDERWOOD TRUST Notes to the financial statement5 For the year ended S April 2024 Allocation of support and governance costs Basis of apportion- ment Grant maklng Governance 2024 Total 2023 Total Management fee Subscriptlons Auditors remuneration Web site costs Sundries Work done Actual Artual Actual Actual 24,300 839 8.100 280 6,960 207 35 32,400 1,119 6.960 828 52 32.400 365 6,480 792 88 621 17 Total 25,777 15,582 41.359 40,125 Transfers A transfer of £327,32012023'. £773,817) wa5 made from the expendable endowment to the unrestricted income fund to cover the deficit on the unrestricted funds. Fimed asset investments Llsted investments Unlisted investments Totsl Cost or valu3tion at 6 April 2023 Addlth)ns Disp05als RealSsed investment gain5 1 Ilossesl Unrealised investmènt gains I Ilossesl 16,838,357 654 1209,8191 16,316,655 33,155,012 654 1209,8191 180.163 180,163 871,863 871,863 At 5 April 2024 17.681,218 16,316.655 33,997.873 Net cash used from investments in the year was £151.203 12023.. £16,312 released from investments). Unrealised Investment gains / Ilossesl represent the dlfference between the fair value of the investments atthe beginning and end of the year adjustingfor investmenttransactions during the year. The unllsted investment 55 the holding of 2,545,5CK) Taylor Clark Limlted B ordinary lop shares 12023: 2,545,500 B ordinary lop shares), this investment Is measured at cost and is assessed for impairment annuallv. 22
THE UNDERWOOD TRU5r Notes to the financial statements For the year ended 5 April 2024 Debtors 2024 2023 Prepayments 322 14 322 14 Creditor5: amounts falling due wf(hin one year 2024 2023 Accruals Greenpeace (Protect the oceans 30x30 campaign) 7,019 750,0(KI 6,538 757,019 6,538 10 Related party tran5artions At 5 April 2024 the charfrty owned 2,545.5C() {2023.. 2,545,500J ordinary B shares of lop each representing 40.8%12023.- 40.8%) of the B shares in issue and 36.5%12023.' 36.5Y6) of the total shares in Issue of Taylor Clark Limited. During the year, the Trust ieceived dividends of £786,169 f2023.' £234,364J from Taylor Clark Limited. Taylorclark Limrted has supplied office accommodation and staff for the admlni5tration of the Trust. For these services. management fees of £32,41)012023.' £32,4WJ, inclusNe of VAT have been paid by the Trust. There was no outstanding balance due to Taylor Clark Limited at the year-end (2023.- £nilJ. The table below shows staff costs induded within the Taylor Clark management fee of £32,4LX). Staff costs 2024 Total 2023 Total Wages and salaries Social securitv Costs Employers, contributions to defined contributlon pension scheme Other employee benefits 14,2LKI 1,960 3,905 266 13,700 1,890 3,768 222 20331 19,580 23
THE UNDERWOOD TRusr Notes to the financial statements For the year ended 5 April 2024 10 Related party transaclions [continuedJ Briony Wilson Is a shareholder In Taylor Clark Limited. Richard Bennison and Briony Wilson are directors of Taylor Clark Limlted. No trustee recelved any remuneration during the year12023.' £nilJ. No trustee recelved any reimbursement of expenses. 11 Reconciliation of net movement in funds to net cash flow from operating artivities 2024 2023 Net movement in funils Deduct interest income Deduct dividends and Inte$t from Investments Deduct Igainsl / add back losses on unreallsed Investments (Gains) I105ses realised on Sale of investments Decrease / Ilncreasel in debtors Increase J Idecreasel in creditors 666,745 15,274) IL395,626) 1871.863) 1122,202) ia07) 750,481 11,584,243> 18671 1790,6991 880.277 169,8521 366 Net tash used in operating activities 1978,046) 11,554.5381 24