**Company Registration No. 01154049 (England and Wales) Charity Registration No. 266983**
## **ZURICH COMMUNITY TRUST (UK) LIMITED**
**(a Company limited by guarantee) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **Reference and administrative details**
## **Company status**
The Charitable Company, Zurich Community Trust (UK) Limited (the “Trust”) is a company limited by guarantee and does not have share capital. Each member has guaranteed £1. The Charitable Company is incorporated in the United Kingdom (“UK”). The Charitable Company is a registered charity (registration number 266983). The registered address is:
The Grange Bishops Cleeve Cheltenham Gloucestershire GL52 8XX
## **Trustees**
The Trustees are also the Directors of the Charitable Company for Companies Act purposes. All Trustee appointments are proposed by the Board of Trustees and approved by the members.
The Trustees who served during the year and who were in office up to the date of signing the financial statements were:
Tim Bailey (appointed 01 January 2021) Steve Collinson Tim Culling Andrew Jepp Wayne Myslik Tulsi Naidu (resigned 31 December 2020) Richard Peden
Qualifying third party indemnity provisions (as defined in Section 234(2) of the Companies Act 2006) have been in force for the benefit of Trustees during the year and remain in force as at the date of this Trustees’ Report.
The Charitable Company’s members are Zurich Financial Services (UKISA) Limited (“UKISA”) and Zurich Financial Services (UKISA) Nominees Limited. The members’ ultimate parent company is Zurich Insurance Group Ltd (“ZIG”), which is incorporated in Switzerland.
Related Party transactions are disclosed in Note 23.
In light of the Charitable Company’s structure, the Trustees had no interest in the Charitable Company.
## **Key management personnel**
Steve Grimmett took over as Head of Zurich Community Trust as a permanent position from 1 January 2020, after performing the role on an interim basis during 2019.
## **Bankers and independent auditors**
The Charitable Company's bankers are:
Lloyds Bank plc PO Box 72 Bailey Drive Gillingham Business Park Kent ME8 0LS
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **Reference and administrative details (continued)**
## **Bankers and independent auditors (continued)**
The Charitable Company’s investment manager is:
Threadneedle Investment Services Limited Cannon Place 78 Cannon Street London EC4N 6AG
The Charitable Company's independent auditors are:
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors 2 Glass Wharf Bristol BS2 0FR
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES**
The Trustees are pleased to present their annual report together with the audited financial statements of the Charitable Company for the year ending 31 December 2020. This report and financial statements are also prepared to meet the requirements for an annual report and financial statements for Companies Act purposes. The reference and administration details on pages 1 and 2 form part of the Trustees Report.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Charitable Company has not prepared a strategic report as it has taken advantage of the exemption in this respect available for small companies (as defined in Section 381 of the Companies Act 2006).
## **Chair’s report (from the Chair of the Trustees, Steve Collinson)**
As was the case for most UK charities, 2020 was a very challenging year due to the COVID-19 pandemic, it was a year that we can also look back on with enormous pride.
Towards the end of 2019 the Board of Trustees initiated a piece of work looking at the “Development of a Future Strategy for ZCT”. This began in earnest in early January 2020 when a sub-group of Trustees and the Head of Zurich Community Trust came together to progress this. The Trustees asked for this work be completed by the end of March 2020.
This sub-group presented its findings at the March 2020 Board meeting. Whilst the Board approved the new strategy at this meeting, it was agreed that the communication and implementation of the strategy be delayed due to the pandemic and because of the implications for staff.
Instead of pressing ahead with the new strategy at that time, the Board agreed to a further proposal from the Head of Zurich Community Trust to develop a “ZCT COVID-19 Response Plan”. This plan was implemented from the end of March through to the end of the year. The major element to this plan was that the Trust would focus all its energies during this time on supporting its existing charity partners both financially and through non-financial means.
The Board of Trustees is delighted with the actions that the Trust was able to take throughout this period, supporting its charity partners, with excellent feedback being received attesting to the value of the financial and non-financial support provided at such a critical time.
Whilst the full implementation of the new strategy was delayed until 1 January 2021, the Board of Trustees decided to inform the staff team of the new approach and team structure on 30 June 2020. As a result of the consultation process that took place, eight members of the team were put at risk of redundancy and, five colleagues were served notice of redundancy at the end of July. These five colleagues left the team between mid-August and December. Our thanks go to all staff for their continued focus throughout this unsettling time and we wish those we have said goodbye to our very best for their future careers. It should be noted that these structural changes to the team were as a result of the new strategy and not as a result of the challenges brought about by the pandemic.
During the second half of 2020, the Trust secured from its major donors, Zurich Assurance Ltd (“ZAL”) and Zurich Management Services Limited (“ZMS”) a new three-year funding agreement. This funding agreement is for a donation of £2,649,000 per year payable in December 2020, December 2021, and December 2022.
The Trust now looks forward to implementing its new Strategy which will see the Trust focusing its future grant giving solely within the UK. The new approach will see a move away from one-off grants being made to organisations to a partnership-only model, focusing funding on supporting core costs within beneficiary organisations. A renewed emphasis will also be placed on developing truly holistic partnerships that encompasses both a financial and a non-financial package of support that will be developed and informed through continual consultation with our partners. The Trust will also embark upon a new long-term education programme with a single delivery partner that will focus on raising the aspirations of young people and increasing social mobility.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Chair’s report (from the Chair of the Trustees, Steve Collinson) (continued)**
The main objective of the Charitable Company during 2020 was to use money, skills and time donated from the Zurich Insurance Group UK (“ZIG UK”) business together with money and time donated by UK employees of Zurich and members to help support a more resilient and inclusive society.
## **Our purposes and activities**
The Charitable Company is a public benefit entity; therefore, the Trustees of the Charitable Company consider all Charity Commission guidance on public benefit.
The Trust has been a contributor to the Fundraising Regulator via its voluntary levy since the Regulator’s inception and continues to do so. Fundraising from both Zurich UK employees and the wider community is undertaken by the Trust to part fund its grant making programmes. The Trust ensures that it is aware of the latest Code of Fundraising Practice and adheres to its suggested behaviours and standards in all of its fundraising.
The Trust also has a Complaints Policy that can be found from the front page of the Trust’s website [https://www.zct.org.uk/en-gb/utilities/complaints-policy] where the complainant is also able to download a complaints form.
A Board Charter exists which should be read in conjunction with the Trust’s Articles of Association. This document, last revised in October 2019, sets out the Board’s responsibilities, Matters Reserved, Board Composition, Board proceedings, Review of Board Effectiveness and Board authorities. The Charitable Company is in the process of updating its Articles of Association with the law firm, Wilsons, based in Salisbury, Wiltshire.
The Board is responsible for setting the strategic direction of the Charitable Company. It delegates certain responsibilities to the Zurich Community Trust (“ZCT”) ‘Trust Executive’. Such delegated matters include an annual review of ZCT Policies, monitoring against progress and targets, communication and advocacy and impacted measurement.
Zurich UK employees are also involved in decision making with choosing the Trust’s multi-year funding partners, both locally and nationally. Opinions have been sought from employees in the past on the causes and communities they would like to see the Trust support and this exercise will be repeated throughout 2021 with new partnerships commencing in early 2022.
The Trust is not affiliated with any umbrella groups and part of any wider network. The Trust’s major donor is the Zurich UK business and as such has a very close working relationship with the employees of Zurich UK. The Trust also has a close working relationship with the global “Z Zurich Foundation” and 2020 saw the first significant donation from Z Zurich Foundation to the Trust to fund a new partnership with the charity, GoodGym. This funding was part of Z Zurich Foundation’s global COVID-19 response.
The Charitable Company fulfils its objective through:
- charity partnerships both at a local and national level; and
- an employee volunteering and fundraising programme engaging the employees of Zurich UK .
The Charitable Company manages all expenditure associated with all programmes. As well as making charitable grants, a significant amount of the Charitable Company’s staff time is committed to the community through working in partnership with charity partners and by brokering the volunteering needs of the voluntary sector with time and skills available from employees within the Zurich business.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
|**Allocation of resources:**|**Allocation of resources:**|||
|---|---|---|---|
|||**2020**|**2019**|
||**Charitable activities**|**91%**|**88%**|
||**Raising funds**|**6%**|**9%**|
||**Other**|**3%**|**3%**|
## **Charitable activities**
The Charitable Company generates income from a range of activities:
- an annual donation from the Zurich UK businesses as part of an agreed funding track;
- regular voluntary donations through payroll giving from employees;
- operating a monthly society lottery;
- office based fundraising activity such as raffles and charity cake bakes; and
- larger scale fundraising events such as marathons, cycle treks and charity dinners. Although it should be noted that this type of fundraising could not take place throughout 2020 due to the COVID-19 pandemic
The Trustees receive regular progress reports and financial management information which includes information on fundraising income and expenditure. The Charitable Company complies with the Code of Fundraising Practice and is registered with the Fundraising Regulator.
The Trustees have a continuing focus to ensure that the ratio of resources applied to generating income is appropriate for the Charitable Company.
## **Focus of charitable activity spend:**
|**Focus of charitable activity spend:**|||
|---|---|---|
|
|**2020**|
**2019**|
|**Zurich Cares**|**75%**|**43%**|
|**Long term Strategic Programmes**|**11%**|**24%**|
|**Volunteering**|**12%**|**16%**|
|**The Openwork Foundation**|**2%**|**17%**|
The Openwork Foundation represented a separate major operation and designated fund for the Charitable Company. It was transferred out of the Charitable Company with effect from 31 December 2019, when it commenced operating in its own right.
## **Employee Involvement Programme**
In 2020 a decision was made by the Trustees to focus all uncommitted spend for 2020 supporting existing and new partnerships, both locally and nationally. This amounted to a spend of £1,864,000.
Zurich also provides business time to enable employees to volunteer in the community and get involved in organising and managing fundraising events, volunteering schemes and local grant programmes. As a result of the pandemic, the nature of employee involvement activity looked fundamentally different with the vast majority of activity being undertaken on a virtual basis. A great deal of employee personal time is also leveraged through this programme.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee) REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
**The breakdown of spend on the Employee Involvement Programme:**
||**2020**|**2019**|
|---|---|---|
|**Local Grants and Partnerships**|**36%**|**33%**|
|**Volunteering Support Costs**|**14%**|**26%**|
|**Other Support Costs**|**25%**|**19%**|
|**Employee Nominated Grants**|**11%**
|**9%**|
|**National Partners**|**14%**
|**8%**|
|**Overseas Grants**|**-**
|**5%**|
Whilst all of the local partnerships should have expired towards the end of 2020 with the last payment of the agreed three year funding arrangement being made in late 2019, the Trustees agreed to support our existing local partnerships through the pandemic and as such additional funds were made available to these partners through three funding tranches, with payments of £15,000 and £10,000 being made in 2020, and £12,500 in 2021.
## **Local and regional grant programmes**
The social issues supported through the Employee Involvement Programmes were:
||**2020**|**2019**|
|---|---|---|
|Mental Health|21%|21%|
|Health Impairment|20%|20%|
|Physical Disability/Learning Difficulties|12%|17%|
|Economic Disadvantage|3%|11%|
|Vulnerable Young People|12%|7%|
|Homelessness|6%|6%|
|Older People|11%|4%|
|Life Limiting Conditions|2%|4%|
|Young Carers|2%|2%|
|Bereavement|3%|2%|
|Other|8%|6%|
Throughout 2020 the Trust was in regular contact with our charity partners. In part this was as a result of the Trust’s decision to create three funding windows throughout 2020 that our partners could apply for. The rationale behind this decision was firstly to ensure that we did indeed keep in touch with our partners and understood their needs but also to keep monies back for later in the year as charities adapted to new ways of working and emergency funding available elsewhere, when the pandemic first struck, dried up.
Also central to our regular dialogue approach was making our partners aware of the constantly evolving non-financial package of support that the Trust was building throughout the year, including the offering of 15 places to our charity partners to join a 13 month fundraising apprenticeship, funded from the Apprenticeship Levy that Zurich UK pays. The below quote from one of our partner charities is feedback on our 2020 approach:
_“Better Things are absolutely thrilled to be part of the Zurich Charity Partner Fundraising Programme with Corndel. This is an amazing opportunity for us as a charity to support our staff to gain this brilliant qualification. As a charity and an employer, being able to take advantage of the fundraising apprenticeships scheme and extend our relationship with Zurich Community Trust in such a unique way is huge. The benefit to staff personal development and to the charity through the skills gained from the qualification are massive._
_We have always loved working with Zurich Community Trust and their imaginative and genuine approach to support, this is yet another example of how forward thinking they are and how they offer thoughtful support that lasts. This opportunity will also be to the benefit of our service users who we support through our community inclusion projects.”_
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
## **National Charity Partners**
2020 saw the continuation of our three-year partnerships with two national charities selected in 2017, Dementia UK and Place2Be. Both charities received the agreed annual donation of £75,000 each in April 2020 which would have been the final payments. However as an emergency response to the COVID-19 pandemic and the increased demand for their services, the Trust made additional payments of £75,000 to Place2Be and £100,000 to Dementia UK during the remainder of the year.
It was further agreed, due to the impact of the pandemic, to formally extend these two national partnerships by one more year with a further annual payment made to each in the first half of 2021.
## **Dementia UK**
Our funding continued to cover the cost of employing a full-time Helpline Admiral Nurse and contribute towards the running costs of the Admiral Nurse Dementia Helpline. During 2020, the Helpline received a huge 34% increase in calls, totalling 27,624, as a result of COVID-19 compared the previous year. Over a quarter of cases (5,998) were re-opened, indicating a large number of people contacting the Helpline more than once. Almost all contacts came from within the UK (98%) with 25% of the contacts from the South East of England and 20% from the Midlands. Most contacts were by telephone (74%) with 90% of calls from a carer who is a close family relative (68% were the child of the person with dementia and 20% were the spouse or partner).
A total of 59,185 reasons for contacting the Helpline were recorded with the five most common reasons recorded being:
- Access to support;
- COVID-19;
- Behaviour;
- Psychological emotional support; and
- Getting a diagnosis
Between January and December 2020, COVID-19 was recorded as a reason for contact in 20% of all cases created. This peaked in April and May where this reason was recorded in 45% and 38% of all cases in those months.
## **Place2Be**
Children’s mental health charity, Place2Be, works in 639 schools reaching a school community of 364,080 children and young people. They work in schools with pupils, their families, and staff through a combination of services from one to one counselling, group work to supporting parents and teachers.
Our funding contributes to support up to 4,500 children in deprived communities across 10 schools in Birmingham, London, Leeds, Glasgow, Manchester, and Cardiff.
Due to the pandemic, Place2Be have had to quickly adapt their services which The Trust have fully supported by agreeing that any existing funding could be used more flexibly as well as providing additional emergency funding.
From the 23 March 2020 until schools reopened, Place2Be provided:
- Weekly support on the telephone to secondary-aged pupils in 1 to 1 counselling;
- Weekly support on the telephone to families of primary-aged pupils in 1 to 1 counselling;
- Weekly support on the telephone to parents with children of school age in 1 to 1 counselling; and
- Additional support for families and children who weren’t in 1 to 1 counselling, through online resources.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
## **Place2Be (continued)**
Consultations are available for teachers to help them manage their own mental health, addressing themes related to children’s emotional wellbeing and free online training. Digital services for young people were also arranged to provide self-help and 24/7 crisis services provided by partner organisations including Shout, Kooth and Healios. Throughout the first lockdown until the end of the academic year Place2Be mental health professionals delivered nearly 35,000 sessions of support for 4,339 children and young people. Support has continued in this way through the summer holidays and to the end of 2020.
## **- Long term strategic programmes**
## **The Breakdown of spend on Strategic Programmes:**
||**2020**|**2019**|
|---|---|---|
|**Generation Gains Programme**|**60%**|**68%**|
|**Support Costs**|**25%**|**23%**|
|**India Programme**|**-**|**4%**|
|**Young People’s Mental Health**|**5%**|**3%**|
|**Breaking the Cycle**|**-**|**1%**|
|**Call In Time**|**10%**|**1%**|
These strategic programmes have historically worked in partnership with charities to deliver transformational change over a minimum five-year period. In July 2020, we saw our strategic programmes officially come to an end following the strategic review of and the end of our partnerships with our final programme, Generation Gains which ran from 2016 to 2020 inclusive.
## **Children and Young People’s Mental Health Coalition**
The Trust has been involved with the Children and Young People’s Mental Health Coalition (“the Coalition) since 2010 when it was first set up and has supported its development since then and we are now in our final funding phase. The Coalition now has over 230 members who come together to provide a strong unified voice speaking out about children and young people’s mental health.
Over the last couple of years we have focussed on supporting them to make the Coalition more sustainable as we move towards exit. The final payment was due in June 2021, however due to the impact of the pandemic on children and young people’s mental health, the Trust decided to extend the annual funding of £20,000 for a further year.
Whilst the Coalition continued to respond to many consultations, key highlights in 2020 included:
- Sir Norman Lamb became the new chair of the Coalition, leading his first Steering Group meeting in June 2020;
- As part of the Coalition’s 10[th] anniversary, it produced its first Annual Report on the state of children’s mental health in England. This was launched at an online event in September during a week of events celebrating 10 years;
- Extensive responses to Government enquiries from the Education Select Committee, Women and Equalities Committee and Early Years Commission were submitted, centred around Covid19 and its impact on infant, children, and young people’s mental health; and
- In October 2020, the **Coalition** and **Schools’ Wellbeing Partnership** held a joint meeting with their members and representatives from the **Department for Education** and **Public Health England** to develop key priorities around children’s mental health and wellbeing during the ongoing COVID-19 pandemic. Following on from the emerging evidence and insights that were shared at the meeting, they have developed a joint statement on mental health in education.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
**________________________________________________________________________________**
## **Achievements and performance (continued)**
________________________________________________________________________________
## **Generation Gains**
With the Trust’s funding due to end in July 2020 with our three partners, Saints Foundation, Aston Villa Foundation and Greenwich Leisure Limited (“GLL”), we worked with an external funding consultant to pull together a collaborative bid for funding from The National Lottery’s Community Fund. This was submitted in November 2019 and follow up meetings with the National Lottery over the course of the following months commenced, with indications looking promising that the bid would move to Phase 2 of the application process in February 2020.
Unfortunately, when the COVID-19 pandemic took hold in the UK, the National Lottery redirected its funding so the bid was put on hold. Our three partners were invited to apply for emergency funding as an alternative, submitting separate bids per location and as a result, our partners decided to formally go their separate ways and adapt their programmes according to the needs in their location and look for localised funding.
When the first lockdown became imminent, Generation Gains activities were suspended and a number of staff and apprentices were furloughed, with the apprentices continuing to complete coursework remotely where possible.
Support to participants was adapted by providing weekly telephone calls, home exercise videos and step-by-step exercise guides, to encourage participants to remain active and stay connected.
In September 2020, the University of Bath submitted its final evaluation report, and this was shared with our three partners to support their funding bids. To date, Saints Foundation and Aston Villa Foundation have had success from the National Lottery, the UK Community Foundations (“UKCF”) and the Premier League Charitable Foundation. The University of Bath is continuing to disseminate the evaluation report through academic bodies and publications.
## **Achievements and performance**
Our grant making and volunteer programmes in the UK and overseas during 2020 helped to support a more resilient and inclusive society.
In December 2019 the Board of Trustees agreed a new mission statement for the Trust: “Through sustainable actions we help improve the lives of people during times of vulnerability.”
The Board of Trustees further agreed that this would be delivered by “Improving lives by supporting wellbeing and inclusion initiatives” and “Building more resilient and sustainable communities”. This approach improved the alignment with the sustainability framework of its main donor, together with the aims of the Z Zurich Foundation, whilst continuing to focus on delivering public benefit.
The Trust undertakes an annual planning exercise with the Trust team that is signed off by the Board of Trustees. These plans involve both numerical targets and targets relating to the impact of the programmes operated by the Trust. Central to these plans are actions and activities that will further the aims of the Trust to help support a more inclusive and resilient society. The grants programmes that the Trust operates, are all focused on working with partner organisations whose own aims result in a more inclusive and resilient society for those they support and work with.
The Trust measures the impact of its funding programmes through a variety of mediums. For the larger Strategic Funding programmes, such as ‘Generation Gains’ impact data is obtained on a continual basis through a partnership with the University of Bath and Solent University. The Trust’s involvement with the Generation Gains programme ceased as planned in July 2020. For the smaller grants, feedback is
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Achievements and performance (continued)**
## **Achievements and performance (continued)**
sought via surveys.
In addition to the Trust’s grant making, a wide range of volunteering activity is brokered. This also seeks to further the aim of helping to support a more inclusive and resilient society, whether this is through the donation of time or skills. Feedback is always sought from the organisation receiving a volunteered service to understand the impact achieved and assess the fulfilment of the Trust’s aims and objectives.
## **Fundraising**
The Charitable Company does not engage professional fundraisers and raises funds from the Zurich UK business, its employees, and key supplier employees. Consequently, fundraising from members of the public is very limited and mainly occurs through sponsorship donations employees may seek when they are taking part in fundraising events, most of which flows in through the online giving sites.
Occasionally external friends and family members of employees are engaged in key fundraising events such as the London Marathon if places are not fulfilled from employees alone. The Charity is a funded and compliant member of the Fundraising Regulator. During 2020 the Charity received no complaints on its fundraising practices.
## **2020 Objectives**
In response to the COVID-19 pandemic the Charitable Company implemented a COVID-19 response plan. The plan provided a range of support as follows:
- A financial package of support;
- Removing the conditions of existing grants;
- A suite of volunteering opportunities;
- A fundraising initiative; and
- The development of a virtual package of support.
During 2020, £2,273,000 was given out in grants, the vast majority of which was supporting existing partners of the Trust as part of the Trust’s aforementioned COVID-19 response plan. Included within this figure was a figure of £223,000 to conclude the Trust’s involvement with the “Generation Gains” programme.
Also included within the above was a £200,000 grant to the charity GoodGym. This was wholly funded through a donation received by the Trust from Z Zurich Foundation as part of its global COVID-19 response.
In April 2020, the Trust wrote to all existing partners and beneficiaries of grants since 1 July 2019 to inform them that if they still had any monies outstanding from prior grants made to them that we were now removing any conditions attached to these grants and the recipient charity could now deploy the monies as they saw fit.
Throughout 2020, the Trust was keen to identify ways in which the employees of Zurich UK could support our existing partnerships. During the summer months, employees created and delivered a series of training webinars covering topics including “Office 365” training, an “External Media” webinar, “Risk Management” and “Digital Marketing”, to name a few. Zurich UK employees were also encouraged to volunteer for our long-standing volunteering opportunity with Age UK, “Telephone Friendship” , previously called “Call in Time”.
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
## **2020 Objectives (continued)**
The Trust was also able to deliver its flagship volunteering programme “Challenge” during 2020. Ordinarily the Trust would deliver a Spring/Summer programme as well as a Festive programme. For the first time in 31 years, we had to cancel the “Spring/Summer” launch due to the pandemic, however we did deliver a Festive programme with all projects capable of being delivered virtually. This was an amazing success with Zurich UK employees delivering 99 such projects.
Overall, the Trust brokered 771 days of volunteering throughout 2020, engaging approximately 15% of Zurich UK’s employees. This was less than the 20% that had been delivered in 2019 and this was significantly driven by two periods of lockdown’s affecting the UK in 2020 as well as social distancing measures which prevented much of the Trust’s traditional volunteering activities.
The Trust remains extremely proud of the volunteering that took place and we are extremely grateful to Zurich UK employees who embraced new ways of volunteering, many of which will form part of how the Trust delivers its overall mix of volunteering in the future.
Fundraising was another area that suffered significantly during 2020. Whilst income streams, such as payroll giving and the ZCT Lottery held up well, all of our “planned events” type fundraising had to be cancelled due to lockdowns and social distancing. The Trust raised £231,000 from employees, which was significantly lower than raised in 2019. The Trust did however receive a grant of £200,000 from the Z Zurich Foundation to fund a new partnership with the charity, GoodGym.
As part of the Trust’s COVID-19 response plan, the Trust encouraged Zurich UK employees to fundraise for the National Emergencies Trust and the TV event the “Big Night In”. With 100% matching received from the Z Zurich Foundation, £42,000 was raised for these two causes through employee donations.
## **Income from donations and legacies**
In addition to the £2.6m donation from Zurich (2019: £2.6m) and £0.6m of donated services (2019: £0.1m), £0.2m (2019: £0.5m) was raised via Zurich employees and £nil (2019: £0.6m) via Openwork employees and advisers. In 2020 this was achieved through regular giving and various fundraising activities as shown in the table below:
## **Analysis of income:**
Income excluding the donation from Zurich UK businesses is set out below:
||**2020**|**2019**|
|---|---|---|
|**Regular Giving**|**13%**|**36%**|
|**Staff and Advisor Fundraising**|**4%**|**22%**|
|**Treks and Runs**|**2%**|**19%**|
|**Charity Lottery**|**5%**|**6%**|
|**Other**|**76%**|**17%**|
## **Investment powers, policy, and performance**
The Charitable Company’s investment strategy is ‘To maximise the return whilst investing in a low risk portfolio with the aim of preserving the value of the investment in real terms, rather than create excess returns or risk’. Unrestricted reserves are invested in the Threadneedle UK Social Bond Fund established in 2014.
The Bond has delivered an annualised financial return of 4.5% (2019: 5.6%) and the value of the investment increased between December 2019 and December 2020 by 4.8% (2019: 5.7%). As well as this financial return the Bond invested in the following eight core social outcome areas:
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**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **Our purposes and activities (continued)**
## **Investment powers, policy, and performance (continued)**
- Affordable Housing & Property;
- Community Services;
- Education, Learning & Skills;
- Employment & Training;
- Financial Inclusion;
- Health & Social Care;
- Transport & Communications Infrastructure; and
- Utilities & the Environment.
42% of the Bond investments fell into the high social performance category, 42% medium and 16% low – far exceeding the Bond objectives of having 66% of investments rated as high or medium social performance.
## **Plans for future periods**
During 2020 the Board of Trustees concluded a piece of work looking at the “Development of a Future Strategy for ZCT”. The new strategy, which covers the next five years, is to “ensure the Trust remains sustainable, successful and relevant in delivering on its charitable purpose in the medium to long term”.
The communication and partial implementation of this new strategy commenced on 30 June 2020. The implementation of this strategy resulted in five members of the Trust team leaving the Trust in the second half of 2020 through redundancy. Full implementation of the strategy commenced on 1 January 2021.
As part of this reorganisation of the Trust team, two new roles were created – a “National Partnerships & Partnership Development Manager” position and a “Data & Monitoring & Evaluation Manager”.
Both of these roles as well as three redefined “Volunteer and Partnership Manager” roles place the Trust in a good position for the future as we look to create charity partnerships that are informed by data and impact and encompass both financial and a constantly evolving non-financial package of support.
## **Financial review**
## **Reserves policy**
Unrestricted funds are needed to enable the Charitable Company to cover its core funding to manage its commitments and longer-term programmes should the current funding arrangement with the UK Zurich businesses change or cease. The Trustees require that a general reserve equating to approximately twelve months running costs of salaries and expenses should be maintained to achieve this. This will enable the Charitable Company time to either source alternative funding or to manage its commitments and longer- term programmes to conclusion.
Restricted funds can only be expended in accordance with specific restrictions, arising either by the wishes of the donor or by the nature of the appeal.
The position of reserves in relation to the agreed policy is regularly reviewed by the Head of Zurich Community Trust and the Chair of the Charitable Company and was reviewed by the Board of Trustees on 23 February 2021.
At the end of 2020 the level of reserves were above the target set out in the policy.
12
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **Financial review (continued)**
The Trustees are satisfied that the Charitable Company has access to adequate resources to enable it to continue in operational existence for the foreseeable future and, accordingly, it is appropriate to continue to use the going concern basis in preparing the financial statements.
During the year the Charitable Company’s general funds increased from £1,362,000 to £4,696,000.
Restricted funds have remained the same as the prior year at £7,000.
Designated funds include funds set aside for the support of various long-term projects and an undertaking to match fundraising income generated by staff where those staff have made a non-binding preference for specific charities to benefit from the fundraising activities they have undertaken.
Designated funds have decreased from £3,800,000 to £311,000. The purpose of these funds is detailed in Note 19 in the financial statements.
## **Going concern**
The Trustees are satisfied that the Charitable Company can continue to use the going concern basis in preparing the financial statements. In making this assessment the Trustees have considered the projected cash flows of the Charitable Company which show that the Charitable Company has sufficient resources for the foreseeable future.
## **Reappointment of auditors**
PricewaterhouseCoopers LLP (“PwC”) are the current auditors of the company, and in accordance with legal and regulatory requirements, will be resigning as auditors following completion of the audit for the year ended 31 December 2020. Following all appropriate processes and approvals, Ernst & Young (“EY”) will be appointed as the Charitable Company’s auditors for the financial year beginning on 1 January 2021.
## **Recruiting and training Trustees**
The Memorandum and Articles support a minimum of five Trustees, of which at least two must be totally independent from Zurich. At the end of 2020 there were six active Trustees with two pending vacancies, which are the subject of planned discussions between the existing Trustees.
The recruitment of Trustees external to Zurich is managed through external advertising and a selection process. The Trustees who work for Zurich are selected based on their ability to be effective Trustees and to provide the required level of influence within Zurich to enable the Charitable Company to achieve its objectives. All Trustee appointments are proposed and approved by the Board of Trustees.
The induction and training of Trustees is led by the Chair and the Head of Zurich Community Trust’s team and based on ‘The Good Trustee Guide’ produced by the National Council for Voluntary Organisations (“NCVO”). On appointment each Trustee is required to read and sign a Code of Conduct. In addition, Trustees who are external to Zurich receive a specific induction session about the Zurich business to better understand the key stakeholder and donor population of the Charitable Company. The Trustees receive any relevant updates and guidance on their role as Trustees of the Charitable Company. The effectiveness of the current Trust Board is reviewed by the Chair in consultation with the Trustees.
13
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Structure, governance and management**
## **Organisational structure**
Whilst the Charitable Company is linked to Zurich, the Board of Trustees operate independently in the best interests of the Charitable Company. The Board of Trustees is supported, via documents of delegation which includes the Board Charter and respective Committees ‘Terms of Reference’ and by the Head of Zurich Community Trust and the Zurich Community Trust (UK) Limited Executive Committee. The former has delegated responsibilities for the day-to-day running of the Charitable Company and the latter has key delegated responsibilities. In all cases there are agreed guidelines for approval by the Trust Board and once a year there is a joint meeting of the Trust Board and the Community Trust Executive to agree plans and targets for the year.
There is also a separate Remuneration Committee which consists of four Trustees with at least one Trustee independent from Zurich. Currently, the committee is chaired by Andrew Jepp and includes Steve Collinson, Tim Culling and Wayne Myslik.
There is also a separate Audit, Finance and Risk Committee consisting three Trustees including at least one independent from Zurich. The Trustees delegate oversight of the external audit to this committee. Currently, this committee is chaired by Richard Peden and includes Tim Culling and Wayne Myslik and is also attended by Richard Gaskell, a member of the Community Trust Executive.
The Charitable Company works in collaboration with several charity partners and helps support them in achieving their respective agreed objectives. These objectives are mutually agreed at the outset of any partnership and supported by a Memorandum of Understanding backed up by regular reviews and progress reports.
## **Risk management and Principal risks and uncertainties**
The Charitable Company has a strong risk management and governance framework in place. The Charitable Company is exposed to business and financial risk through its financial assets and financial liabilities. The specific financial risks are limited to liquidity risk and credit risk.
## _Business risk_
The UK left the European Union ("EU") on 31 January 2020. A transitional period, during which the UK was no longer a member of the EU but was still subject to EU rules and remained a member of the Customs Union, concluded at 11pm on 31 December 2020. The EU-UK Trade and Cooperation Agreement was agreed and is provisionally applicable from 1 January 2021, causing an underlying level of ongoing uncertainty in the UK of the financial and economic impact from this agreement. The risk to the Company as a result of leaving the EU is not considered to be significant as the principal activity of the Company does not involve the import or export of goods and services to and from other EU countries.
The Trustees recognise the possible consequences arising from the ongoing COVID-19 situation and have considered the operational impact on the business. The ZIG group, of which the Charitable Company is a wholly owned subsidiary has well established business continuity plans and in 2020 implemented remote working for all staff and a full assessment of business critical processes to ensure operations could continue as normal or with suitable alternatives in place. These plans are still in place in 2021 and as such the trustees believe that the Charitable Company is well positioned to deal with the impact of any changes in circumstances as they may arise.
The above information regarding the possible impact of COVID-19 on the business relevant to the Charitable Company is accurate at the time of signing but as a result of ongoing developments, may not reflect the developed situation at the time of reading.
14
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **Structure, governance and management (continued)**
_Business risk (continued)_
Other business risks include:
- reliance on Zurich UK operations for support in IT, the People Team, Facilities and Finance;
- a safeguarding issue arising in connection with a charity that Zurich Community Trust has funded; and
- a Zurich Community Trust brokered volunteering activity triggering a safeguarding issue.
As a funder of other organisations, the Charities Commission have imposed a responsibility on the Trust to undertake due diligence on the organisation it is funding to check its safeguarding policies and practices are compliant. There is a risk the Trust could be involved in financially supporting an organisation where there is a safeguarding breach with potential consequent reputational damage.
The Trust’s Total Risk Profile includes a separate risk relating to a safeguarding issue arising out of a volunteering activity brokered by the Trust. This could involve a Zurich UK employee being accused of a safeguarding incident or the Zurich UK volunteer could be exposed to a safeguarding incident at the organisation where they are working. First and foremost, exists the risk to the person who may be harmed but also the potential consequence of reputational damage.
## _Liquidity risk_
Liquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost due to the potential loss of donation income and engagement from Zurich due to competing demands on employees time and the move to home/agile working.
The Charitable Company’s finances are actively managed and monitored to ensure that sufficient funds are available to meet liabilities as they fall due. The Trustees are of the opinion that any liquidity risk that the Charitable Company faces is mitigated.
## _Credit risk_
Credit risk is the risk that a counterparty will be unable to pay amounts in full when due. The Charitable Company’s debtors are low and therefore the Trustees do not consider credit risk to be significant.
## **Pay and remuneration**
The Remuneration Committee has delegated authority to assess and agree the annual performance salary ranges for those working in the Zurich Community Trust (UK) Limited team. This is reviewed every year using a combination of an external voluntary sector salary survey coupled with data shared with the Charitable Company from the Zurich Reward team, received from the Towers Watson salary data for Community Investment roles. Roles are benchmarked to relevant data and to each other.
An annual budget for salary review is agreed by the Trustees considering market data. This budget is used on an annual basis to move people competent in their roles and delivering successful performances towards the market mid-point on the relevant salary range.
The Zurich Community Trust (UK) Limited operates a performance related bonus scheme, independent from the Zurich business scheme. Each year the Trustees approve a series of delivery targets that the Charitable Company is measured against. The Committee meets once a year to decide how well the Charitable Company has delivered against these targets to determine if a performance bonus should be paid and if so, at what level. Individual performance is also measured and combined with the performance of the Charitable Company when determining any individual performance related bonuses.
The Remuneration Committee consists of three Trustees, including at least one Trustee independent from Zurich. The Committee is delegated to assess and agree the annual performance of the Charitable Company and to review the external benchmarking of salaries and performance bonus to ensure that
15
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**REPORT OF THE TRUSTEES (CONTINUED)**
## **Structure, governance and management (continued)**
## **Pay and remuneration (continued)**
the Zurich Community Trust (UK) Limited teams’ remuneration is in line with the policy and in the best interests of the Charitable Company.
All the running costs of the Charitable Company, including salary and bonus, are funded from the annual donation from the Zurich UK businesses.
## **Statement of Trustees’ responsibilities**
The following statement sets out the responsibilities of the Trustees (who are also Directors of the Charitable Company for the purposes of company law) in relation to the financial statements of the Charitable Company. The report of the auditors, shown on pages 18, 19 and 20, sets out their responsibilities in relation to the financial statements.
The Trustees are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principals in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis, where there are no material uncertainties about the Charitable Company’s ability to continue, unless it is inappropriate to presume that the Charitable Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
So far as each Trustee is aware, there is no relevant audit information of which the Charitable Company’s auditors are unaware.
16
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **Statement of Trustees’ responsibilities (continued)**
Each Trustee has taken all the steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit information and to establish that the Charitable Company’s auditors are aware of that information.
The Trustees consider that they have pursued the actions necessary to meet their responsibilities as set out in this statement.
On behalf of the Board of Trustees
Trustee ...................................
Name ................................... Date 28 June 2021
17
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE MEMBERS OF ZURICH COMMUNITY TRUST (UK) LIMITED**
## **Report on the audit of the financial statements**
## **Opinion**
In our opinion, Zurich Community Trust (UK) Limited’s financial statements (the “financial statements”):
- give a true and fair view of the state of the Charitable Company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law) and
- have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2020; the statement of financial activities (incorporating an income and expenditure statement), and the statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _Independence_
We remained independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.
## **Conclusions relating to going concern**
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 Charitable Company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
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. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Charitable Company’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
18
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT (CONTINUED)**
## **Reporting on other information**
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
## **Report of the Trustees**
In our opinion, based on the work undertaken in the course of the audit the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Report of the Trustees has been prepared in accordance with applicable legal requirements.
In addition, in light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Report of the Trustees. We have nothing to report in this respect.
## **Responsibilities for the financial statements and the audit**
_Responsibilities of the Trustees for the financial statements_
As explained more fully in the Statement of Trustees’ responsibilities, the Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Trustees are also responsible for such internal control as they 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 Charitable Company’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 Charitable Company or to cease operations, or have no realistic alternative but to do so.
_Auditors’ responsibilities for the audit of the financial statements_
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.
19
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT (CONTINUED)**
## **Responsibilities for the financial statements and the audit (continued)**
_Auditors’ responsibilities for the audit of the financial statements (continued)_ 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.
Based on our understanding of the Charitable Company, we identified that the principal risks of noncompliance with laws and regulations related to the Charities Act 2011, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results or conceal the misappropriation of assets. Audit procedures performed included:
- Discussions with management and Trustees, including consideration of any known or suspected instances of non-compliances with laws and regulations and fraud;
- Review of the Charitable Company’s whistleblowing and fraud register and consideration of the results of management’s investigation of any such matters;
- Reviewing relevant meeting minutes;
- Performing risk-based journal testing with a focus on unusual account combinations;
- Obtaining third-party confirmations for all of the Charitable Company’s banking and financial arrangements;
- Incorporating an element of unpredictability in our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
## **Use of this report**
This report, including the opinions, has been prepared for and only for the Charitable Company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
20
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT (CONTINUED)**
## **Other required reporting**
## **Companies Act 2006 exception reporting**
Under the Companies Act 2006 we are required to report to you if, in our opinion:
- we have not obtained all the information and explanations we require for our audit; or
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
## **Entitlement to exemptions**
Under the Companies Act 2006 we are required to report to you if, in our opinion, the Trustees were not entitled to take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.
Kevin Williams (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Bristol 28 June 2021
21
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)**
## _**FOR THE YEAR ENDING 31 DECEMBER 2020**_
||Note|Unrestricted
|Restricted|Total|
|---|---|---|---|---|
|||funds|funds|2020|
|||£’000|£’000|
£’000|
|**Income from:**|||||
|Donations and legacies|4|3,363|230|**3,593**|
|Charitable activities|5|20|69|**89**|
|Other trading activities|6|-|-|**-**|
|Investments|7|1|-|**1**|
||||||
|||3,384|299|**3,683**|
||||||
|**Expenditure on:**|||||
|Raising funds|8|(243)|-|**(243)**|
|Charitable activities|8|(3,288)|(299)|**(3,587)**|
|Other|8|(106)|-|**(106)**|
||||||
|||(3,637)|(299)|**(3,936)**|
||||||
|Net gain on investments|15|96|-|**96**|
||||||
|**Net (expenditure)**||(156)|-|(156)|
||||||
|**Transfer between funds**||-|-|-|
||||||
|**Net movement in funds**||(156)|-|(156)|
||||||
|**Reconciliation of funds:**|||||
|Total funds brought forward||**5,162**|**7**|**5,169**|
||||||
|**Total funds carried**||**5,007**|**7**|**5,014**|
|**forward**|||||
||||||
All gains and losses recognised in the year are included in the Statement of Financial Activities. The prior year comparatives, for the year ended 2019, are shown on page 23.
22
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)**
## _**FOR THE YEAR ENDING 31 DECEMBER 2019**_
||Note|Unrestricted
|Unrestricted
|Restricted|Restricted|Total|Total||
|---|---|---|---|---|---|---|---|---|
|||funds||funds|||||
|||Continuing|Discontinued|
Continuing|Discontinued|
Continuing|Discontinued|
**Total**|
|||operations|operations|
operations|operations|
operations|operations|
**2019**|
|||£’000|£’000|
£’000|£’000|
£’000|£’000|
£’000|
|**Income from:**|||||||||
|Donations and|||||||||
|legacies|4|2,924|361|-|-|2,924|361|**3,285**|
|Charitable activities|
5|79|300|55|16|134|316|**450**|
|Other trading|6||||||||
|activities||-|3|-|-|-|3|**3**|
|Investments|7|15|-|-|-|15|-|**15**|
||||||||||
|||3,018|664|55|16|3,073|680|**3,753**|
||||||||||
|**Expenditure on:**|||||||||
|Raising funds|8|(296)|(89)|(12)|-|(308)|(89)|**(397)**|
|Charitable activities|
8|(2,560)|(975)|(52)|(16)|(2,612)|(991)**(3,603)**||
|Other|8|(114)|-|-|-|(114)|-|**(114)**|
||||||||||
|||(2,970)|(1,064)|(64)|(16)|(3,034)|(1,080)**(4,114)**||
||||||||||
|Net gain on|||||||||
|investments|15|114|-|-|-|114|-|**114**|
||||||||||
|**Net income/**|||||||||
|**(expenditure)**||162|(400)|(9)|-|153|(400)|**(247)**|
||||||||||
|**Transfer between**|||||||||
|**funds**||1|-|-|-|1|-|1|
||||||||||
|**Net movement in**|||||||||
|**funds**||163|(400)|(9)|-|154|(400)|**(246)**|
||||||||||
|**Reconciliation of**|||||||||
|**funds:**|||||||||
|Total funds brought|||||||||
|forward||**4,999**|**400**|**16**|**-**|**5,015**|**400**|**5,415**|
||||||||||
|**Total funds**|||||||||
|**carried forward**||**5,162**|**-**|**7**|**-**|**5,169**|**-**|**5,169**|
||||||||||
All gains and losses recognised in the year are included in the Statement of Financial Activities.
23
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
||Note|**2020**|**2019**|
|---|---|---|---|
|||**£'000**|**£'000**|
|Fixed assets||||
|Investments|15|**2,211**|2,115|
|||||
|||**2,211**|2,115|
|Current assets||||
|Debtors|16|**242**|78|
|Cash at bank and in hand|17|**2,652**|3,607|
|||||
|||**2,894**|3,685|
|Liabilities||||
|Creditors: amounts falling||||
|due within one year|18|**(91)**|(631)|
|||||
|Net current assets||**2,803**|3,054|
|||||
|Net assets||**5,014**|5,169|
|||||
|**The funds of the Charitable**|**Company:**|||
|Unrestricted income funds||||
|General funds|20|**4,696**|1,362|
|Designated funds|20|**311**|3,800|
|||||
|||**5,007**|5,162|
|Restricted income funds|20|**7**|7|
|||||
|Total funds||**5,014**|5,169|
|||||
The financial statements on pages 21 to 40 were approved by the Board of Trustees on 28 June 2021 and were signed on its behalf by:
Trustee ..................................
Name .....................................
24
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDING 31 DECEMBER 2020**_
||Note|**2020**|2019|
|---|---|---|---|
|||**£'000**|£'000|
|**Cash flows from operating activities**||||
|Net cash (used in) / provided by
|21|**(956)**|65|
|Operating Activities||||
|||||
|**Cash flows from investing activities**||||
|Dividends and interest from investments|7|**1**|15|
|||||
|Net cash provided by investing activities||**1**|15|
|||||
|Net (decrease)/increase in cash and cash||||
|equivalents||**(955)**|80|
|Cash and cash equivalents at the beginning||||
|of the year||**3,607**|3,527|
|||||
|Cash and cash equivalents at the end||||
|of the year||**2,652**|3,607|
|**Analysis of cash and cash equivalents**:||||
|Cash at bank and in hand
|17|**2,652**|3,607|
|||||
|Cash and cash equivalents
|23|**2,652**|3,607|
|||||
25
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS**
## **1. Statement of compliance**
These financial statements have been prepared in compliance with United Kingdom Accounting Standards, including FRS 102 and the Companies Act 2006.
## **2. Accounting policies**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.
## **2.1 Adoption of revised standards and changes in accounting policies**
There have be no changes that impact FRS102.
## **2.2 Basis of preparation**
The Trustees are satisfied that the Charitable Company can continue to use the going concern basis in preparing the financial statements. In making this assessment the Trustees have considered the projected cash flows of the Charitable Company which show that the Charitable Company has sufficient resources for the foreseeable future.
The financial statements have been prepared under the historical cost convention, as modified for investments held at market value in accordance with the Companies Act 2006, the Statement of Recommended Practice ‘Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“SORP”) and the Charities Act 2011.
## **2.3 Statement of Financial Activities (“SoFA”)**
The Charitable Company is a registered charity and achievements cannot be measured by normal commercial criteria. Accordingly, the Trustees consider that it would be inappropriate to present a Profit and Loss Account in one of the formats set out in the Companies Act, and therefore, as permitted by that Act, and in order to reflect the special nature of the Company’s activities and the SORP, the Trustees have presented a Statement of Financial Activities.
## **2.4 Income**
Income from donations and legacies includes the amount receivable under Gift Aid from the UK staff of Zurich Employment Services Limited, Zurich Management Services Limited, Zurich Insurance Group Ltd and ZZF Foundation.
Income from Charitable Activities represents amounts receivable as a result of a variety of fundraising events and initiatives including events organised by Zurich group staff and Capita employees (working on an outsourced Zurich contract).
Income is recognised when it is probable that the economic benefit in respect of the income will flow to the Charity and when the Charity has the rights or other access to that economic benefit. Income from investments are also included in income.
26
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **2. Accounting policies (continued)**
## **2.5 Expenditure**
Expenditure is recognised when a liability or cost is incurred. Expenditure that relates to more than one cost category (support costs) has been apportioned across raising funds, charitable activities and other costs based on the percentage of resource utilisation on these activities. Expenditure includes recharges from other Zurich companies relating to staff costs.
Multi-year grant payments are accounted for in the year that they relate to. Additional years commitments are not included in the current year where there are conditions to be met before the future grant payment can be released.
Expenditure on charitable activities includes expenditure related to grant giving. Grants represent amounts payable and amounts authorised for payment, for which certain conditions have been met, to charities during the year. Each grant is recognised as an expense in when the liability is incurred. All grants made during the year supported the objectives of the Charitable Company and the recipient organisations.
Other costs include those incurred in the governance of the Charitable Company and its assets and are primarily associated with constitutional and statutory requirements.
## **2.6 Donated services**
Donated Services have been recognised at the Trustees’ best estimate of their value. These are recognised as income from donations and legacies and expenditure on Charitable Activities, as required by the SORP.
## **2.7 Fund accounting**
Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.
Designated funds are unrestricted funds earmarked by the Trustees for specific purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for particular purposes.
## **2.8 Investments**
Investments are valued at fair value, being the market value at the reporting date. Any fair value adjustments are recorded in the Statement of Financial Activities. Investments that have a maturity date of less than one year are recognised as current asset investments. Investments that have a maturity date of more than one year or no maturity date are recognised as fixed asset investments. Investment income is accounted for on an accruals basis.
## **2.9 Cash at bank and in hand**
Cash at bank and in hand includes cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
27
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **2. Accounting policies (continued)**
## **2.10 Recognition of liabilities**
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
## **2.11 Discontinued operations**
The registration for The Openwork Foundation as a charity was granted by the Charities Commission on 25 July 2019.
The Openwork Foundation represented a separate major operation and designated fund for the Charitable Company and transferred out of the Charitable Company with effect from 31 December 2019, when it commenced operating in its own right. The Trustees agreed to pay out the financial surplus of the designated fund by means of a grant in December 2019. A payment of £413,000 was made in January 2020 and a further payment for the remaining balance was paid in December 2020.
The Charitable Company will ensure monies received in 2020 from The Openwork Foundation donors will be paid to The Openwork Foundation.
The discontinued operation is presented separately in the SOFA for the prior year.
## **3. Critical accounting estimates and judgements**
In the application of the company’s accounting policies, management are required to make judgements and use certain estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The company currently does not have any critical judgements or use estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
## **4. Income from donations and legacies**
|Unrestricted funds:
Donation from Zurich UK Businesses
Regular Giving
Donated services
Other voluntary income
Tax recoverable on gift aided donations
Restricted funds:
Donation from ZZF Foundation
Other voluntary income
|**2020**
2019
**£'000**
£'000
**2,649**
2,649
**99**
336
**602**
149
**8**
100
**5**
51
**3,363**
3,285
**200**
-
**30**
-
**230**
-
**3,593**
-
|
|---|---|
28
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **4. Income from donations and legacies**
Donated services includes £357,000 redundancy costs borne by ZES.
Gift aid forms part of the Regular Giving amount. Gift Aid is donated on the understanding that the Charitable Company can use that donation for any purpose to further its own objectives, with no conditions attached.
## **5. Income from Charitable activities**
|**Unrestricted funds:**
- Treks and Runs
- Staff and Advisor Fundraising
- Lottery
**Restricted funds:**
- Staff and Advisor Fundraising
- Lottery|**2020**
2019
**£'000**
£'000
**14**
177
**6**
151
**-**
45
**20**
373
**28**
62
**41**
15
**69**
77
**89**
450
|
|---|---|
## **6. Income from other trading activities**
|Trading income|**2020**
2019
**£'000**
£'000
**-**
3
|
|---|---|
## **7. Income from Investments**
|Bank interest|**2020**
2019
**£'000**
£'000
**1**
15
|
|---|---|
29
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **8. Analysis of expenditure**
The Charitable Company allocates its expenditure as shown in the table below and then further apportions those costs between the three charitable activities undertaken (see Note 9). Support costs are allocated on a basis consistent with the use of resources.
|
Support costs
Staff and related costs
Fundraising expenses
Trading
Challenge and volunteering
Travel and accommodation
Stationery
Office equipment and IT
Miscellaneous
Lottery
Governance costs
Donated services
Total support costs
Charitable donations
Total expenditure
|Other
£’000
66
-
-
-
-
1
-
5
-
-
34
106
-
106
|Raising
funds
£’000
136
1
(1)
-
1
-
4
13
11
-
78
243
-
243
|Charitable
activities
£’000
717
-
-
-
7
6
4
80
-
9
491
1,314
2,273
3,587
|Charitable
activities
£’000
717
-
-
-
7
6
4
80
-
9
491
1,314
2,273
3,587
|**Total**
Total
**2020**
2019
**£’000**
£’000
**919**
1,101
**1**
123
**(1)**
18
**-**2
**8**
34
**7**
31
**8**
4
**98**
194
**11**
15
**9**
3
**603**
149
**1,663**
1,674
**2,273**
2,440
**3,936**
4,114
|
|---|---|---|---|---|---|
|||
|
|||
|||||
||
Staff working on behalf of the Charitable Company are employed by Zurich Employment Services Limited (“ZES”). Staff costs are detailed in Note 11.
Governance support costs are the fees payable to the Charitable Company’s auditors for the audit of the Charitable Company’s financial statements of £9,000 (2019: £18,000).
30
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **9. Charitable Activities**
|**Trust:**
-Transformation Programmes
**Zurich Cares:**
- Long-term Community Partnerships
- Local and Overseas Grant Programmes
- Volunteering
**Openwork Foundation:**
- Long-term Community Partnerships
- Local and Overseas Grant Programmes
Grant payable to the Openwork Foundation|Charitable
activities
£'000
281
452
1,476
1,928
-
-
-
-
64
2,273
|Charitable
activities
£'000
281
452
1,476
1,928
-
-
-
-
64
2,273
|Support
costs
£'000
97
292
475
767
449
-
-
-
-
1,314
|**Total**
Total
**2020**
2019
**£'000**
£'000
**378**
753
**744**
228
**1,951**
1,142
**2,695**
1,370
**449**
489
**-**
60
**-**
483
**-**543
64 448
**3,587**
3,603
|
|---|---|---|---|---|
||||
||
|||
|||
A detailed analysis of grants made during the year can be found in Note 10. An analysis of support costs can be found in Note 8.
31
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **10. Grants payable**
||Transformation and Trust
India Programme
Call in Time Programme
Generation Gains Programme
Breaking the Cycle (Addaction)
Young People’s Mental Health Programme
Zurich Cares
Long-term Community Partnerships
National Partners:
- Dementia UK
- Place2Be
- Other
Local Grants
Overseas Grants
Employee Nominated Grants
Openwork Foundation
National Partnerships:
- Action for Kids
Regional Grants
Discretionary Grants
Grant payable to Openwork Foundation|**2020**
**2020**
**£’000**
**£'000**
-
38
223
-
20
281
175
150
127
452
1,136
-
340
1,476
**2,209**
-
**-**
-
-
**-**
**64**
**2,273**
|2019
2019
£'000
£’000
27
10
511
5
22
575
76
76
-
152
604
90
167
861
1,013
40
40
343
21
364
448
2,440
|
|---|---|---|---|
All grants payable are institutional grants. No grant payments have been made to individuals.
32
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **10. Grants payable (continued)**
The following represents those organisations benefitting from the highest value of grant payments made during the year. ‘Other’ is made up of grant payments totalling less than £30,000 to a single organisation.
||**2020**|2019|
|---|---|---|
||**£’000**|£’000|
|GoodGym|**200**|-|
|Greenwich Leisure Limited (Generation Gains Programme)|**43**|160|
|Dementia UK (National Partner and Employee Nominated)|**191**|76|
|Place2Be (National Partner and Employee Nominated)|**166**|76|
|Action for Kids (The Openwork Foundation)|**-**|40|
|Mental Health Foundation (Young People’s Mental Health Programme)|
**20**|22|
|Addaction (Breaking the Cycle Programme)|**-**|5|
|Aston Villa Foundation (Generation Gains Programme)|**94**|203|
|Saints Foundation (Generation Gains Programme)|**66**|133|
|University of Bath (Generation Gains Programme)|**20**|15|
|Age UK|**75**|-|
|Call in Time|**38**|-|
|The Openwork Foundation|**64**|448|
|National Emergencies Trust|**37**|-|
|Soup Kitchen|**25**|-|
|The Diana Awards|**40**|-|
|Step by Step|**36**|-|
|Other|**1,159**|1,262|
||||
|**2,273**||2,440|
|
|||
## **11. Staff**
Staff are employed under contracts of employment with ZES or Openwork Services Limited. Staff costs recharged to the Charitable Company are included to the extent that these are separately identifiable.
|The average number of employees working for the
Charitable Company during the year was:
Charitable activities
Other
Raising funds|**2020**
2019
**Number**
Number
**14**
14
**3**
4
**1**
1
**18**
19
|
|---|---|
33
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **11. Staff (continued)**
The aggregate payroll costs of these employees were:
|Wages and salaries
Other pension costs
Social security costs
Employee benefits
|**2020**
2019
**£’000**
£’000
**659**
859
**76**
82
**97**81
**87**79
**919**1,101|
|---|---|
The amount paid in respect of staff redundancies during the year was £357,000 (2019: £88,000). This cost was borne by ZES and has been included in the donated services expense.
The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:
|
£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
|**2020**
2019
**Number**
Number
**1**1
**-**1
**-**
-
**1**
-|
|---|---|
The total emoluments paid to key management personnel during 2020 was £93,000 (2019: 134,000). There were two key management personnel during 2019 compared to one in 2020.
The Charitable Company is not the employing company for these staff and therefore no further pension disclosures or share based payment disclosures have been included in these financial statements. The costs are recharged from the employing company to the Charitable Company and the disclosures are available in the financial statements of the employing companies listed above.
## **12. Taxation**
The Charitable Company is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charitable Company’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## **13. Net expenditure**
Net expenditure for the year is stated after charging/(crediting):
|Auditors' remuneration in respect of audit services
Other interest receivable|**2020**
2019
**£'000**
£'000
**9**
18
**(1)**(15)|
|---|---|
34
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **14. Trustees' emoluments and expenses**
No Trustees claimed travel and training expenses. (2019: two Trustees claimed £521 in travel and training expenses).
No Trustee was paid in respect of services provided to the Charitable Company either by the Charitable Company or by a related party (2019: nil).
## **15. Fixed asset investments**
|Investment in ‘UK Social Bond Fund’
Investment in ‘UK Social Bond Fund’
Investment in ‘UK Social Bond Fund’
|
At|
1 Jan
2020
£’000
2,115
1 Jan
2019
£’000
2,001
|**2020**
**£'000**
2,211
2,211
Valuation
movement
£’000
96
Valuation
movement
£’000
114
|2019
£'000
2,115
2,115
At 31 Dec
2020
£'000
2,211
At 31 Dec
2019
£'000
2,115
|
|---|---|---|---|---|
||
At||||
||||||
||||
||
There were no purchases or disposals in the investment in the 'UK Social Bond Fund' in the year. An unrealised gain on fixed asset investments of £96,000 (2019: unrealised gain of £114,000) was recognised in the year.
## **16. Debtors**
|Prepayments and accrued income
Amounts due from Zurich Insurance Group Ltd Undertakings
Sundry Debtors
|**2020**
2019
**£'000**
£'000
**10**
78
**207**
-
**24**
-
**242**78
|
|---|---|
Amounts due from Zurich Insurance Group Ltd undertakings are unsecured, interest free and have no fixed date of repayment.
35
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **17. Cash at bank and in hand**
|
Cash at bank and in hand
Cash at bank and in hand
|At|1 Jan
2020
£’000
3,607
1 Jan
2019
£’000
2,897
|Transfer of interest
Bearing deposit
£’000
-
Transfer of interest
Bearing deposit
£’000
630
|Transfer of interest
Bearing deposit
£’000
-
Transfer of interest
Bearing deposit
£’000
630
|Cash
flows
£'000
(956)
Cash
flows
£'000
80
|**At 31 Dec**
**2020**
**£'000**
**2,652**
**At 31 Dec**
**2019**
**£'000**
**3,607**
|
|---|---|---|---|---|---|---|
||
At||||||
||||
||||
|||||
|||
## **18. Creditors: amounts falling due within one year**
|Grant payable to the Openwork Foundation
Amounts owed to Zurich Insurance Group Ltd undertakings
Accruals and deferred income|**2020**
2019
**£'000**
£’000
**-**
448
**22**
108
**69**
75
**91**
631
|
|---|---|
## **19. Statement of funds**
|At
1 January 2020
£’000
General Funds
1,362
Designated Funds
3,800
**Total Unrestricted Funds**
5,162
Restricted Funds
7
**Total Funds**
5,169
|
Income
£’000
3,384
-
3,384
299
3,683
|Investment
Expenditure
Gain
£’000
£’000
(3,637)
96
-
-
(3,637)
96
(299)
-
(3,936)
96
|Transfers
£’000
3,490
(3,490)
-
-
-
|**At**
**31 Dec 2020**
**£’000**
**4,696**
**311**
**5,007**
**7**
**5,014**
|
|---|---|---|---|---|
||||||
36
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **19. Statement of funds (continued)**
|At 1 January
2019
Income
Expenditure
Investment Gains
Transfers
Cont.
Disc.
Cont.
Disc.
Cont.
Disc.
Cont.
Disc.
Cont.
Disc.
ops
ops
ops
ops
ops
ops
ops
ops
ops
ops
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
General
reserve
1,302
-
3,018
-
(2,970)
-
114
-
(102)
-
Designated
funds
3,697
400
-
664
-
(1,064)
-
-
103
-
**Total**
**unrestricted**
**funds**
4,999
400
3,018
664
(2,970)
(1,064)
114
-
1
-
Restricted
funds
16
-
55
16
(64)
(16)
-
-
-
-
**Total funds**
5,015
400
3,073
680
(3,034)
(1,080)
114
-
1
-
-
--
|At 31 December
2019
Cont.
Disc.
ops
ops
£’000
£’000
1,362
-
3,800
-
5,162
-
7
-
5,169
-
|
|---|---|
_*cont. ops- continued operations, disc. ops – discontinuing operations_
The general funds represent the free funds of the Charitable Company which are not designated for particular purposes and therefore have no trust law restrictions. Designated funds include funds set aside for the support of various long-term projects and an undertaking to match fundraising income generated by staff where those staff have made a non-binding preference for specific charities to benefit from the fundraising activities they have undertaken.
The designated fund has decreased by £3,490,000 during 2020 (2019: £297,000). This decrease reflected the impact of a transfer from the designated fund to the general fund net of expenditure in the year, following a change in strategic focus.
Restricted funds comprise funds raised by employees for specified charities. The Charitable Company can only use these funds as specified by the donor in accordance with Trust Law. The balance of £7,000 (2019: £7,000) represents the restricted funds raised which have not been expended by the end of the year.
37
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **19. Statement of funds (continued)**
The long-term project commitments, for which designated funds have been set aside, include
||**2020**|2019|
|---|---|---|
||**£’000**|£’000|
|Call In Time|**-**|23|
|Membership fees for the Call In Time Programme|||
|Young Peoples Mental Health Programme|**-**|38|
|A programme to provide support and preventative|||
|intervention to families dealing with mental health issues|||
|Provision to sustain existing or for new programmes|**-**|2,305|
|The short-term project commitments and future spend, for which designated funds have been set|||
|aside, include:|||
|Future fund level expense and grant spend|**-**|1,097|
|Short-term project commitments|**285**|129|
|Income designated for future years|**26**|208|
||||
|Total designated funds|**311**|3,800|
||
||
38
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **20. Analysis of net assets between funds**
|
**Fund balances at 31 December 2020 are**
**represented by:**
Fixed asset investments
Current assets
Creditors
**Net assets**|Restricted
funds
£’000
-
7
-
7
|Designated
funds
£’000
-
311
-
311
|General
funds
**Total**
£’000
**£’000**
2,211
**2,211**
2,577**2,895**
(92)
**(92)**
4,696
**5,014**
|
|---|---|---|---|
||
|
|
|
|
**Fund balances at 31 December 2019 are**
**represented by:**
Fixed asset investments
Current assets
Creditors
**Net assets**|Restricted
funds
£’000
-
7
-
7
|Designated
funds
£’000
2,115
2,133
(448)
3,800
|General
funds
£’000
-
1,545
(183)
1,362
|**Total**
**£’000**
**2,115**
**3,685**
**(631)**
**5,169**
|
|---|---|---|---|---|
||
|
|
||
## **21. Reconciliation of net expenditure to net cash (used in) / provided by operating activities**
|Note
Net expenditure for the reporting period
Adjustments for:
(Increase)/Decrease in debtors
16
(Decrease)/Increase in creditors
18
Income from investments
7
Gains on investments
15
Net cash (used in)/provided by operating activities|**2020**
2019
**£'000 **
£'000
**(156)**
(245)
**(164)**
49
**(540)**
391
**(1)**
(15)
**(96)**
(114)
**(956)**
65
|
|---|---|
39
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **22. Analysis of changes in net funds**
|Cash at bank and in hand
**Cash and cash equivalents**|At 1 Jan 2020
£’000
3,607
**3,607**
|Cash flows
£’000
(956)
(956)
|Other non-
cash
changes
£’000
-
-
|Other non-
cash
changes
£’000
-
-
|**At 31 Dec**
**2020**
**£’000**
**2,652**
**2,652**
|
|---|---|---|---|---|---|
|||
|||
|
|||||||
## **23. Related parties**
## **a) Ultimate Parent Company**
The Charitable Company's members are Zurich Financial Services (UKISA) Limited (“UKISA”) and Zurich Financial Services (UKISA) Nominees Limited. The principal activity of UKISA is that of an investment holding company, and its main source of income is dividends received from its subsidiaries.
The results of the Charitable Company are not included in the financial statements of Zurich Financial Services (UKISA) Limited because the Trustees are required by legislation to act independently in the best interests of the Charitable Company.
The members’ ultimate parent company and ultimate controlling party is Zurich Insurance Group Ltd which is incorporated in Switzerland. The purpose of this company is to hold interests in companies active in the insurance services business, in particular in the areas of property and casualty and life insurance and asset management. Control can be exercised by the parent, for example through corporate trusteeship or through a power to appoint or remove the majority trustees. Copies of the consolidated financial statements of Zurich Insurance Group Ltd can be obtained from:
The Secretary Mythenquai 2 8002 Zurich Switzerland
Copies of the members’ financial statements can be obtained from:
The Grange, Bishops Cleeve, Cheltenham, Gloucestershire, GL52 8XX
The Charitable Company’s registered office address and legal form are detailed within ‘Reference and administrative details’ on pages 1 and 2.
## **b) Related party balances**
Balances with Zurich Insurance Group Ltd undertakings are shown in Note 16 and 18. This balance is made up of debtors: of £204,000 (2019: £95,000 creditor) due from ZES, £3,000 (2019: £nil) due from Zurich Assurance Ltd and creditors: £16,000 (2019: £9,000) due to Zurich Insurance Plc (UK Branch), £6,000 (2019: £3,000) due to Allied Dunbar Assurance Plc and £100 (2019: £100) due to Community Trust Services Limited.
All grant payments were in line with the current governance arrangements and delegated authorities for approval of grants made by the Charitable Company.
40
**ZURICH COMMUNITY TRUST (UK) LIMITED (a Company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **23. Related parties (continued)**
## **b) Related party balances (continued)**
Grants totalling:-
- £15,000 (2019: £1,700) were made to the Swindon Therapy Centre for Multiple Sclerosis, a long-term local community partner within the Zurich Cares programme, of which Tim Culling, a Director of the Charitable Company has been a trustee since 2014; and
- Grants of £64,000 (2019: £448,000) were made to The Openwork Foundation in 2020. The Charitable Company shared a common Trustee with The Openwork Foundation, Ian Lovett, at the time of the approval, in December 2019, of the separation of the Openwork Foundation as a charity in its own right.
During 2020, charges were made by ZES to the Charitable Company for all staff costs for the Charitable Company’s team, including key management personnel, as shown in Note 11.
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